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HomeMy WebLinkAbout03/18/2008 11 Sawmill Redevelopment Planning Project SIED Grant Application and Contract BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 1 1 For Meeting of: March 18, 2008 ITEM TITLE: Consideration of a resolution authorizing the City Manager to execute and submit a $25,000 grant application and contract with the Yakima County Supporting Investments in Economic Diversification (SIED) fund for the Sawmill Redevelopment Planning Project. SUBMITTED BY: 4-Cook, Director of Community and Economic Development CONTACT: Bill Cook, 575 -6113 SUMMARY EXPLANATION: The City of Yakima is working cooperatively with the owners of the old sawmill in Yakima to evaluate the location and costs of key public infrastructure needed to support redevelopment of this 200+ acres site along the 1 -82 corridor. Identifying the location and related cost of building public infrastructure to and through the sawmill site is a critical first step toward development of the property. Information generated • from this planning study will support City grant applications to local, state and federal funding programs. With Council approval, the City will be eligible to apply for and accept SIED funds for the project, in the amount of $25,000. The SIED program is a Yakima County funding source for economic development that originates from a refund of County tax revenue from the State of Washington. SIED is administered for the County by YCDA/New Vision, and the advisory board is appointed by the County, with nominations from the cities. Resolution X Ordinance _ Contract _ Other: Grant Application Funding Source: Yakima County SIED Fund Approval for Submittal: City Meager STAFF RECOMMENDATION: Staff recommends approval of the Resolution BOARD /COMMITTEE/COMMISSION RECOMMENDATION: The Council Economic Development Committee discussed the feasibility study /planning project at their meeting on February 6. The Committee is in favor of pursuing a SIED grant for the project. • COUNCIL ACTION: 1 • RESOLUTION NO. R -2008- A RESOLUTION Authorizing the City Manager to execute and submit a grant application with Yakima County for funding from the Yakima County Supporting Investments in Economic Development (SIED) Fund for infrastructure improvements necessary for the Sawmill Redevelopment Planning Project. WHEREAS, Yakima County has established the Supporting Investments in Economic Diversification (SIED) fund to assist the growth of business in the County; and WHEREAS, economic development is a priority for the City of Yakima, and the City intends to approach economic development on an inclusive, comprehensive basis which involves public, private and community -based efforts to achieve new investment and redevelopment in the City; and WHEREAS, the Sawmill properties owners will conduct a feasibility study /planning project in the vicinity of the former Yakima Resources /Boise property; and WHEREAS, the cost to conduct the planning project is estimated to be in excess of $75,000; and II) WHEREAS, funding through a grant of up to $25,000 may be available from Yakima County through the SIED Fund for studies and planning for infrastructure improvements, with the balance of the study being funded by the private landowner /developer; and WHEREAS, the private landowner /developer has requested that the City submit a grant application with Yakima County to fund the feasibility study /planning project from the SIED Fund; and WHEREAS, identifying the location and related cost of building public facilities near and within the sawmill site is a critical first stop toward making investments in necessary public infrastructure; and WHEREAS, information generated from this planning study will support City grant applications to local, state and federal funding programs; and WHEREAS, the City Council deems it to be in the best interest of the City of Yakima to authorize submittal of a grant application with Yakima County for funding of said feasibility study /planning project from the SIED Fund, now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Manager is hereby authorized and directed to execute and submit grant application with Yakima County for funding from the Yakima County Supporting Investments in Economic Development (SIED) Fund for feasibility study /planning project necessary for the feasibility 0 study /planning project. The City Manager is hereby designated as the official representative of the City to act in connection with that funding application and is authorized to take such additional actions as may be necessary and prudent to complete the project. • 1 • ADOPTED BY THE CITY COUNCIL this 18th day of March, 2008. ATTEST: David Edler, Mayor City Clerk • 2 Yakima County SIED Fund Supporting Investments in Economic Diversification • Application for Feasibility or Planning Study Funds Yakima County SIED Board Supporting Investments In Economic Development Board APPLICATION FOR FEASIBILITY STUDY /PLANNING PROJECT FUNDING CERTIFICATION Applicant: City of Yakima Federal Tax Number: 91- 6001293 Contact: Bill Cook Title: Director of Community & Economic Development Telephone: 509/575 -6113 Fax: 509/576 -6792 Email: bcook @ci.yakima.wa.us Address: 129 North 2 Street Yakima, WA 98901 Indicate the minimum necessary total public project infrastructure costs. Amount of SIED grant requested: $ $25,000 ($25,000 Maximum per applicant per year) • Local match (minimum 20% of SIED request): $ $ Other funding source(s): $ $50,000+ TOTAL public project costs: $ Project title: Sawmill Redevelo • ment Plannin • Project Resolution # authorizing application: Declaration: I HEREBY CERTIFY THAT THE INFORMATION GIVEN IN THIS APPLICATION TO THE SUPPORTING INVESTMENTS IN ECONOMIC DEVELOPMENT BOARD IS TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE AND BELIEF. Signature of Responsible Official: Print or Type Name and Title: Richard A. Zais, Jr., City Manager Please Submit application to: New Vision, P.O. Box 1387, Yakima, WA 98907 -1387 410 (10 North Ninth Street Yakima, WA 98901) Application for Funding Page 2 Yakima County SLED Program Yakima County SIED Board Supporting Investments In Economic Development Board •To improve the economic vitality of the Yakima County, SIED is authorized to make grants (and loans) to Yakima County political subdivisions to conduct feasibility studies or planning projects that support tangible or potential investments in public facilities. PROJECT DESCRIPTION 1. Describe the entire feasibility study or planning project, including the parts that you are not asking SIED to fund. Specifically identify the public facilities (roads, water & wastewater lines, port facilities, buildings, etc.) being evaluated as part of this project. (Note: public facilities being evaluated with SIED funds should be identified in the applicant's capital facilities plan, or the County's Overall Economic Development Plan. These public facilities must be clearly incorporated these plans as a condition of funding). The City of Yakima wants to cooperatively work with the owners of the old sawmill in Yakima to evaluate the location and costs of key public infrastructure needed to support redevelopment of this 200+ acre site at the edge of Interstate 82. In particular the City is interested in determining how "R" street, Fair Avenue, 8 Street and 9 Street could be linked to promote access to this site. Water and wastewater lines through the property will also be evaluated to determine how they can support site specific future redevelopment options In addition to scoping out infrastructurerequirements, the City also wants to contribute towards. the costs of completing a market analysis a.nd economic;impact.assessment s urrounding future development in this :area .. This analysis will help determine the scope of necessary infrastructure investments needed; as well as thebenefits of extending orbuilding these keyutilities Concurrent to'these planning activitie the saw mill ownership team will be conducting a traffic s tudy III tierotindinglheirredevelopment : plan `Additionally, the private partners will be developing preliminary plans ;surrounding the cost and location of a new interchang off of Interstate 82 to serve and support future development. 2. How will this project lead to investments in public facilities? Identifying the location and related cost of building public facilities near and within the sawmill site is a critical first step towards making investments in necessary public infrastructure. Information generated from this planning study will support City grant applications to local, state and federal funding programs. 3. List all funding sources for the feasibility /planning project and amount. Identify whether the amount has been provided or is being requested. Provide the status and date the funds were approved or the date that funds are expected to be approved: SOURCE STATUS DATE AMOUNT SIED grant requested submitted March 2008 $ 25,000 Private land owner /developer committed March 2008 $ 50 000+ $ $ $ • Total project costs $ 75,000+ 4101 NOTE: ALL REQUIRED FUNDING TO COMPLETE THE PROJECT MUST BE SECURED WITHIN SIX MONTHS OF A SIED OFFER OF FINANCIAL AID. Application for Funding Page -3 Yakima County SIED Program Yakima County SIED Board Supporting Investments In Economic Development Board 4. Specifically, for what element(s) of the public project are SIED funds requested? SIED funds would be used to identify the location and cost of key public infrastructure (roads, water, sewer, etc.) needed to support redevelopment of the sawmill site. If additional funds are left after completing this infrastructure analysis they would be used to support portions of the economic impact/market feasibility study. The sawmill owners understand this SIED funding is limited and they have agreed. to cover the costs of additional planning elements identified within this application. 5. Describe how the potential public facility project will enhance or encourage other development in the immediate area (in addition to the direct investment in public facilities described in this application). Improving access to this site, and enhancing water and sewer utilities could benefit other surrounding land owners. 6. Identify the prospective location of the project. Please attach a map of the area indicating the proposed project site. Attached 7. What other jurisdictions, such as counties, cities, port districts, indian nations, or state /federal agencies are involved in the planning, design, financing, construction or operation of this project? Washington Department of Transportation Yakima County Please explain how completion of the project is coordinated between other involved parties. Regular contact will be made with the entities above once the project starts. Other public and private . parties will also be contacted and involved depending on specific discussions surrounding the location and merits of making public facility investments in this area B. EVALUATION OF FUNDING SOURCES AND FINANCIAL CAPACITY B1. Other public sources of funding for public economic development projects are listed below. Indicate which public sources were investigated to fund this project, in addition to SIED. Indicate what the outcome was. YES NO OUTCOME FEDERAL: Economic Development Administration _ _x_ _not timely Rural Development _ _x_ not eligible Other: STATE: Community Development Block Grant _ _x_ _not eligible Public Works Trust Fund _x_ not eligible Department of Ecology _x_ _not eligible CERB _x_ not timely Other _ _x_ Application for Funding Page 4 Yakima County SIED Program Yakima County SIED Board • Supporting Investments In Economic Development Board B2. Explain why SIED funds are necessary and the outcome of the investigation of other fund sources: 111 Other funding sources were evaluated but none of these programs can respond in a timely manner to jumpstart this redevelopment discussion. Given the magnitude of this project, the City, New Vision and the private mill ownership team will be looking at CERB planning funds for additional planning/feasibility work that unfolds in the future. SIED funds may also be evaluated for these phase two activities as well. • B3. Is this project on Yakima County's WA -CERT List? Yes No If yes, this project ranks on the WA -CERT List If no, explain why the project is not on the WA -CERT List NOTE: The State has discontinued the WA -CERT process so this question no longer applies. The project is listed on the County's official list of protects within the region's Comprehensive Economic Developmetn Strategy B4. In the context of the local government's overall annual budget, explain the need for SIED assistance. If the applicant has budget reserves, please explain why these funds are not available for the project? The City of Yakima does not have discretionary resources to complete this study. Yakima continues Ill to experience tight budget issues and must spend its resources on providing basic services (police, fire, etc.). B5. Identify funds (General Fund, Utility Fund, Property taxes, etc.) that could be available to repay loans made to construct public facilities described in this application. The City has not yet identified funding sources that could be used to repay loans for public facility investments. Yakima hopes that this study helps illuminate funding options (including City resources) that can be tapped for specific infrastructure investments. C. PROJECT DESCRIPTION AND BUDGET 01. Summarize the issues or opportunities facing your jurisdiction that necessitate a feasibility or planning study. The sawmill site supported important economic activity for over 100 years. The mills' closure hit the community hard and the City lost an important part of its tax base as a result. While it is painful to lose a large historical employer, there is now an enormous opportunity to redevelop this site that serves as an important and visual entrance to the entire region. Completing this study is an essential first step towards redeveloping this area. The site is one of the IIII few large undeveloped tracts of land on an interstate freeway in Washington State. Application for Funding Page 5 Yakima County SIED Program Yakima County SIED Board Supporting Investments In Economic Development Board C2. Describe Project goals, desired outcomes and timelines using the table below (attach additional information , necessary): Goals Outcomes Timelines Determine whether new utility Identify capacity of existing water and sewer utilities investments are needed to April 2008 support redevelopment scenarios Preliminary location and cost Identify capacity of existing roads and identify road estimate prepared to support May 2008 improvements necessary to support redevelopment redevelopment Provide economic justification Conduct market analysis and economic impact assessment for future public and private May 2008 surrounding redevelopment of site investment in and near the site Determine key access points Complete preliminary traffic analysis to site and the scope of road June 2008 improvements necessary Cost estimates and locations Complete preliminary analysis surrounding the location and identified that support future June 2008 cost of an interchange of Interstate 82 development C3. Identify project budget and match funds using the table below (Match can include in -kind contributions for up to 50 percent of necessary match): • Category , SIED Funds Matching Funds Total Funds . Personnel /Benefits Travel • Equipment/Supplies Contractual $25,000 Other $50,000+ Administration TOTAL $75,000+ C3a. If you plan to use consultants or contractors to complete all or part of the project, please identify the firm or type of firm you plan to hire for this project. The City will hire a civil engineering firm to complete the utility and road planning portions of the project. No specific firm has been identified or selected at this point. Application for Funding Page 6 Yakima County SIED Program Yakima County SIED Board Supporting Investments In Economic Development Board • C4. Describe plans to secure the total required funding for the public facility improvements. Is it secured or not, and will capital facility funds be available in a timely manner (six months) upon completion of the proposed feasibility or planning study? The City of Yakima and the private mill owners will develop strategies to secure funding for necessary public improvements to the site based on the results of this planning study. Priorities for public improvements will be established as a result of the study and public or private funds will be secured to support specific redevelopment activities within or near the sawmill site. C5. Describe job development expectations for the project in terms of the number of jobs created and /or retained, anticipated wages, when jobs will be created (or retained), and opportunities the project may offer to our local labor force and regional training providers. Since the sawmill site is so large it is difficult to fully predict the variety of end uses that could occur as a result of redevelopment activities. If the site can be redeveloped to support retail, commercial, Tight industrial and /or residential activities, it could easily support over a 1000 new jobs. A significant number of these new employment opportunities could be family wage jobs and it is likely that redevelopment will trigger business investment that requires support from regional educational institutions. C6. How will businesses directly or indirectly benefit from the proposed project? The site could serve as a magnet for a wide variety of businesses that want to put new facilities in Yakima. Since the site is visible and accessible from the Interstate, it already has key water and sewer III systems in place, and it is mostly unencumbered by wetlands or environmental constraints, it is a very attractive marketable site. Existing businesses in the Yakima region will benefit from having an additional site option developed that could accommodate their expansion or relocation needs. III Application for Funding Page 7 Yakima County SLED Program