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Grant Agreement with the Port of Chehalis, Funding from Distressed Counties Fund BEFORE THE BOARD OF COUNTY COMMISSIONERS LEWIS COUNTY, WASHINGTON APPROVING A GRANT AGREEMENT BETWEEN ) RESOLUTION 18- 32.o LEWIS COUNTY AND THE PORT OF CHEHALIS TO ACCEPT FUNDING TOTALING $400,000 FROM "DISTRESSED COUNTIES FUND" (RCW 82.14.370) FOR THE "McBRIDE COURT PHASE 2" PROJECT WHEREAS, by Resolution the Lewis County Board of County Commissioners (BOCC) approves funding in the amount of$400,000 for the "McBride Court phase 2," a project that will serve future demand and that meets the definition of a "public facility" under RCW 82.14.370; and WHEREAS, the attached Comprehensive Economic Development Strategy (CEDS) is a list of projects maintained by the Lewis County Economic Development Council (EDC) RCW 82.14.370; and WHEREAS, the Port's application for funding of the "McBride Court phase 2" project has been recommended for approval and listing in the CEDS list by the Distressed Counties/Rural Economic Development Public Facilities Advisory Committee, the Committee created to recommend projects for listing in the CEDS; and WHEREAS, the Port's application is also supported by the attached Grant Agreement prepared by the EDC pursuant to the CEDS, which Agreement is incorporated herein by reference; and WHEREAS, it is in the best interest of the citizens of Lewis County that the funds requested by CEDS be authorized in order to allow completion of the "McBride Court phase 2," a project that supports economic development by promoting the tourism sector in our community; NOW,THEREFORE, BE IT RESOLVED that the BOCC approves the "McBride Court phase 2" project as a public facility for purposes of RCW 82.14.370 and amends the Community Economic Development Strategies (CEDS) list to include that project in the county's overall economic development plan; and BE IT FURTHER RESOLVED that the BOCC authorizes Lewis County to enter into the attached Grant Agreement with the Port of Chehalis for the "McBride Court phase 2" project, in the amount of$400,000, using monies from the "Distressed Counties Fund," all in accordance with RCW 82.14.370 and applicable law. DONE IN OPEN SESSION this 29th day of October, 2018. Page 1 of 2 APPROVED AS TO FORM: BOARD OF COUNTY COMMISSIONERS Jonathan L. Meyer LEWIS COUNTY, WASHINGTON Prosecuting Attorney 'il .s.\.... se .. e, ...diAL__,,zAleki ,/ By: Deputy Prosecuting Attorney Ed . J. Fund, Chair r ATTEST: - 'obert C.Jackson,Vice Chair I , , ,. , q-a2_,... Rieva Lester, Clerk of the Board Gary Stam er, Commissioner •••••• •• COUN ••• o•s' BARD 6_ ,s.,, ,*,�� �o •o 42• • '• 1� SINCE �1 o•• • :- 4 1845 II z• • 4'y�4� tS / • ••••�NSlsc�0••a Page 2 of 2 LEWIS COUNTY .09 RURAL ECONOMIC DEVELOPMENT FUND Contact Information Applicant: Port Of Chehalis Project Title: McBride Court phase 2 Contact: Randy Mueller, CEO Date: August 215t, 2018 Phone#: 360-748-9365 Email: rmueller @portofchehalis.com Address: 321 Maurin Rd. City, State, Zip: Chehalis, WA 98532 Loan $0 Grant Request $400,000.00 Request Amount Amount By signing you confirm you have authority to submit this application for .09 funds on behalf of your organization. I affirm that the information is correct to my knowledge. Signature h Signatory's CEO Position: 1 LEWIS COUNTY.09 RURAL ECONOMIC DEVELOPMENT FUND APPLICATION CRITERIA Purpose Counties must consult cities, towns, port districts, and associate development organizations in order to disburse funds.As per RCW 82.14.370 the funds may only be used to: finance"public facilities"that facilitate the creation or the retention of business and jobs finance personnel in the office of a county, port district, or associate development organization that facilitate the creation or the retention of business and jobs Public Facilities Definition As per RCW 82.14.370 the public facility must be listed under the county economic development plan or the capital facilities plan and examples are included below: bridges, roads, railroads, and transportation infrastructure domestic&industrial water facilities, sanitary sewer facilities, and storm sewer facilities research, testing, training, and incubation facilities in innovation partnership zones (RCW 43.330.270) electrical facilities, natural gas facilities, telecommunications infrastructure,earth stabilization commercial infrastructure, port facilities, buildings, structures Attorney General's Office As per the 2001 opinion of the Washington State Attorney General's Office the following are uses as defined in the statute: capital facilities costs, including acquisition, construction, rehabilitation, alteration, expansion,or improvements of public facilities; costs of development and improvement for the public facilities; project-specific environmental costs; land use and permitting costs; costs of site planning and analysis; project design, including feasibility and marketing studies and plans, and debt and revenue impact analysis 2 QUALIFICATIONS Does Your Project Qualify? Per RCW 82.14.370 the .09 funds may only be used to: finance public facilities that facilitate the creation or the retention of business and jobs finance personnel in the office of a county, port district,or associate development organizations that facilitate the creation or the retention of business and jobs Which Public Facility Is Your Project? The public facility must be specifically listed under RCW 82.14.370 and listed under the county economic development plan (or capital facilities plan). Please select the criteria which correspond to your project. Bridges __ Domestic water esearch Electrical facilities 1 Earth facilities facilities stabilization .! Roads 1 Industrial water 1 Testing ;. ; Natural gas facilities uildings facilities facilities Railroads I Sanitary sewer Training ' ; Telecommunications Structures• facilities facilities infrastructure ( ` 1 Transportation Storm sewer Incubation ,C Commercial Xport facilities infrastructure facilities facilities infrastructure How Can The Money Be Used For Your Public Facility Project? The Washington State Attorney General 2001 No.5 opinion states that the funds for this statute may only be used in the following ways. Please select the criteria which correspond to your project. project-specific environmental costs costs of site planning &analysis land use& 'j permitting costs capital facilities costs, including roject design, including > costs of acquisition,construction, rehabilitation, feasibility and marketing studies& development& alteration, expansion, or improvements plans, and debt &revenue impact improvement for the of public facilities analysis public facilities 3 YOUR PROJECT What is your"Public Facilities"project? Please provide a brief description of your project in the space below. Description: The purpose of this project is to construct several affordable, flexible spaces suitable for small businesses and startups in the industrial, manufacturing, technology, and value-added agriculture industries. These spaces would be sized in approximately 2,500 SF increments and be wired and plumbed to accommodate many potential uses with little or no tenant improvements needed. Currently there are no leasable spaces like this in the Lewis County market,and the port has been 100%full for years and has to turn away potential employers. The Port of Chehalis is a public agency whose mission is economic development of the greater Chehalis area. This activity also boosts surrounding economies throughout Lewis County. How Will This Project Create Or Retain Business Or Jobs? "Jobs" are defined by the .09 advisory committee as employment that produces products and services and exports products and services outside of Lewis County that results in new money coming into the community. This is traditionally manufacturing, logistics, and other production facilities. This typically excludes retail and service sectors and other tertiary jobs producers. Description: This new facility will be approximately 20,000 square feet in size and easily divisible into multiple spaces for business occupants. The facility can accommodate 200 employees, based on the specific companies who locate here and their type of business. 4 Category Created(1 yr.)-Name/Number Retained(1 yr.)-Name/Number Businesses I-8 Direct full time jobs, Up to 200 direct jobs. Direct part time jobs, indirect jobs What Will Be The Cost Of The Project? The County Commission may disburse funds as both grants and loans. No funding will exceed $600,000 unless it is deemed an extraordinary circumstance by the County Commission. The County negotiates the terms of each award. This may include interest rates or disbursement schedule. Total Project Cost: $1,850,000 Requested Amount: $400,000 Loan Amount: Grant Amount:$400,000 What Is The Timeline To Completion? Articulate the projected timeline of for this project as well as its completion date. The following are planned milestones and deliverables associated with the project: •January 2018, Port plans to construct new facility. • March 2018, Port begins preliminary site.planning process. • September 2018,grants status finalized, and size of project determined. • October 2018, permits applied for. •October 2018, site preparation work begins. •January 2019, building construction begins. •April 2019,grand opening of facility. To date, site plans and been developed and all necessary permits obtained. Once full funding is secured, building design and permitting will begin. To date the Port of Chehalis has committed $800,000 to the project and the TransAlta Grant Fund had committed $650,000. If this grant is secured the project will be 100%funded. 5 LEWIS COUNTY .09 RURAL ECONOMIC DEVELOPMENT FUND COVMITTEE EVALUATION Committee Use Only Do Not Fill Out Economic Benefits The following are metrics that provide an aid in determining which projects may receive funding: Questions Metric Does the proposed project create jobs? How many? Does the proposed project retain jobs? How many? What is the cost per job created/retained?(divide dollars requested by jobs created and/or retained) What is the total number of full time jobs created/retained? What is the total number of part time jobs created/retained? How many businesses will directly benefit from this project? Readiness to Proceed The following are metrics that we have identified as an aid in determining projects may receive funding: Questions Metric Is this project a "Public Facility"that has an economic development purpose? Y/N Have entitlements been obtained and required permits issued/in process? None/Some/All Does this project have a clear timeline and scope of work? Y/N If this request is approved, what is the amount of match funding that is secured? What is the probability of completion from 1-10(10 indicates a high probability)? 6 r ( II i , I ;41 �• � i ;� l � j I 1 I I ; I , iI j� ' � ► / � iI 1 i i ` ‘4411.g' � h l ik 1 H , I ►i 1' �,i, ) lv.0,.,.., , ,.., , , . ( •• . • . -1/4. F., . - . :•• .1 , . . , , 1 , 1 I NEB j 1) ' I r '° - b I Z 1 ji 1 ,......4 ...--, .,E ,-----------,,,- 1 __ . _ ii.w,...„... ._.....„, cI . . . , 11111111:=M.I.. .... -- .ey.. \ I I__ --- MCBRIDE COURT : ..."7 ., / I 1 I , 11 I i ..._ 0. 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V:' * j r s t � ,'g _ ,k 5 y yr,i ,, 'i' .f } Y' M w Z� c� s t i 3 t I- ,,, $a K IN -.7.d % ' :-, ':!”.,:iii4,,A'''-;t:- -1,1 •, '- ' - , Date of Project Name Brief Description of Project Application Applicant Total Project Amount Status .09 CEDS List 8/21/2018 McBride Court Phase II Port of Chehalis $ 400,000.00 Build a 20,000 sf facility Packwood Sewer Rendering of Wastewater Treatment 3/9/2018 Lewis EDC $ 30,000.00 Plant Implementation of Strategic Plan and 3/9/2018 EDC Operations Lewis EDC $ 330,000.00 initiatives Acquire and remodel facility for co- Co-Working facility 8/1/2017 Port of Chehalis $ 125,000.00 working City of Airport Project Planning Chehalis/Centralia Collection&analysis of market data 8/24/2017 Chehalis Airport $ 38,000.00 for land use planning Lewis County Water Dist.1 Feasibility Study and Engineering Report Feasibility Study and 5/24/2017 Engineering Report Lewis Co.Water Dist.1 $ 40,000.00 to repair or replace Hampton Reservoir Business Dev.At the Economic development planning and 5/18/2017 Industrial Park at TransAlta Lewis EDC $ 380,000.00 business recruitment Curtis Rail Line Natural Repair trestle and tracks 2/11/2016 Disaster Repair Port of Chehalis $ 100,000.00 Habein Road Industrial Env.sampling,site design,permitting 2/22/2016 Complex Port of Chehalis $ 750,000.00 Chehalis Industrial Park Site clearing,fill,excavation,permitting 10/30/2015 Prep. Port of Chehalis $ 275,000.00 Discover!Childrens Construction of a childrens museum 8/26/2015 Museum City of Chehalis $ 4,200,000.00 Chehalis Industrial Park Rail Infrastructure Expansion Build 700 ft.of rail 5/28/2015 Port of Chehalis $ 885,271.00 Discover!Childrens Construction of a childrens museum 5/27/2015 Museum City of Chehalis $ 4,200,000.00 Historic Fox Theatre South Wall and Roof Restoration Preserve structual integrity of building 5/15/2015 Project City of Centralia $ 365,855.00 Steam Engine#15 15 yr. Overhaul of Locomotive#15 2/20/2015 rebuild City of Chehalis $ 135,276.00 Steam Engine#15-15 yr. Overhaul of Locomotive#15 8/29/2014 rebuild City of Chehalis $ 158,340.00 North County Industrial Transportation access to industrial area 7/2/2014 Access Lewis Co.Public Works $ 500,000.00 Funded K Rural Economic Development Public Facilities Advisory Committee Minutes September 14th, 2018 @ 8:30am Lewis EDC Conference Room 8:30 A.M. call to order by: Reggie Hamilton Committee Members Present: Reggie Hamilton, Hamilton Rock; Mark Anders, Port of Chehalis; Dennis Dawes, City of Chehalis Mayor; Edna Fund, Lewis County Commissioner; Dan Mortenson, City of Morton Mayor; Tom Bradley, Industrial Commission; Others Present: Matt Matayoshi, Lewis EDC; Marrianne Schumacher, Lewis EDCL Randy Mueller, Port of Chehalis New Business: 8:35 A.M.: Edna Fund made a motion to approve minutes from the March 9th, 2018 meeting. Dennis Dawes provided a second to the motion. The motion to approve the minutes passed unanimously. 8:35 A.M.: Matt Matayoshi gave an update of.09 Fund Balance. He reported on the cash, committed and reserve .09 funds. 8:40 A.M.: Randy Mueller presented the McBride Court Phase 2 application submitted by Port of Chehalis. Randy reviewed the map with committee members. He stated that the port properties are full and have been for 2+years. There is a need for newer, updated industrial space. The TransAlta Committee has committed $600,000. The Port of Chehalis is committing $800,000. The request for a grant in the application is $400,000. The building would provide several 2,500-sf spaces suitable for tech companies, manufacturing, small business, and startups. There was some discussion of the property and the building that the Industrial Commission was going to sell to the Port of Chehalis. Dan Mortenson asked if there was a list of companies interested in space to fill once the 20,000-sf building is built. Randy stated that the port prefers to fill with several small businesses unless a specific organization comes along that has a large number of jobs that it would provide to the community. Mark Anders stated that having a building available for small business is important to accommodate entrepreneurs and home-grown businesses that are local. Dennis Dawes stated that we need to invest money in infrastructure. There was discussion regarding bids for contractors for the 20,000-sf building. Randy explained that the Port would look at value engineering, should the bid come back too high. There was discussion of placing a t 9-month time frame to go out to bid. Reggie Hamilton asked that there be transparency on the bid process with the .09 committee. Randy Mueller stated that the Port of Chehalis will report back to the .09 committee at the December 2018 .09 Committee Meeting to give an update. Dennis Dawes made a motion to approve the $400,000 grant with the caveat that the Port of Chehalis have a 9-month time frame to secure a bid and that the Port report back to the .09 committee in December 2018 with an update. Dan Mortenson provided a 2" to the motion. Mark Anders recused himself from the vote. The motion passed unanimously. 9:20 A.M.: Meeting Adjourned GRANT AGREEMENT BETWEEN LEWIS COUNTY AND THE Port of Chehalis This Grant Agreement is made and entered into by Lewis County and the as to the conditions for acceptance of monies by the Port of Chehalis from the "Distressed Counties Fund" pursuant to RCW 82.14.370. I. PURPOSE RCW 82.14.370 authorizes the availability of a sales and use tax to be used to finance public facilities serving economic development purposes in rural counties. The name of this project shall be"McBride Court Phase 2" and shall be funded in the amount of a grant for $400,000.00. II. ELIGIBILITY The public facility must be listed as an item in the officially adopted Lewis County Comprehensive Economic Development Strategy and must meet other requirements as set forth by County resolution, adopted policy, and growth management planning. Monies collected shall only be used to finance public facilities serving economic development purposes in rural counties. III. APPLICANT'S RESPONSIBILITIES Upon approval of application by the Lewis County Commissioners, applicant agrees that: 1. The project must be in progress within 9 months of the date of this agreement, or grant funds shall revert back to the Lewis County"Distressed Counties Fund." For purposes of being"in progress,"the project must have proceeded beyond the initial planning stage, and into the implementation stages of the project. The Port of Chehalis shall promptly notify Lewis County in writing of any actual or anticipated event that is delaying or could delay achievement of any milestone or performance of any critical path activity of the project. A copy of this report shall also be placed in the file of the Economic Development Public Facilities Advisory Committee. 2. The Applicant must provide semi-annual progress report to the Lewis County Board of County Commissioners in order to ensure satisfactory completion of the project and proper expenditure of grant monies. The scope of project work is contained in the .09 application dated August 21, 2018, and is hereby incorporated by reference into this agreement. Failure to provide progress reports or sufficient information may result in reversion to the "Distressed Counties Fund" of all or part of the funding balance. At such times as the Lewis County Board of Commissioners deems necessary for reasonable cause, the applicant shall permit the County to inspect and audit all pertinent books and records of the applicant or Page 1 of 4 other persons or entities that have performed work in connection with or related to this funding. The audit may take place up to three years after completion of the project. The books and records are to be made available at reasonable times at such reasonable location as County selects. At Lewis County's request, the applicant shall supply County with, or shall permit County to make a copy of, any books and records and any portion thereof. 3. Applicant has requested these County funds in order to construct a facility measuring approximately 20,000sf divisible into multiple spaces for business occupants. Failure to comply with the intent of this section may result in reversion to the"Distressed Counties Fund"of all or part of the funding balance. Funding to complete the full project as presented in the application must be confirmed and available prior to release of these grant funds. Failure to comply with this section may result in reversion to the "Distressed Counties Fund"of all or part of the funding balance. 4. Applicant shall provide documented evidence of expenditures of all funds for this project at the semi-annual updates denoted in item#2 (or within 60 days of project completion)to both the Rural Economic Development Public Facilities Advisory Committee and the County. Funds spent under this program must be for the purpose of financing public facilities or supporting related economic development projects, as defined under RCW 82.14.370 and AGO 2002,No.l. Failure to comply with this section may result in reversion to the "Distressed Counties Fund" of all or part of the funding balance. 5. Funds provided under this program shall be spent at the same percentage rate as those coming from any other source. For example, if the recipient spends 20% of funds from one source, it shall spend 20%of funds from the other source. Billings and invoices together with audit-sufficient supporting documentation shall be remitted to the County for payment not more than one time each month. Within thirty(30) days of receiving a reimbursement claims voucher that meets the requirements of this Agreement and applicable law,the County shall remit to the applicant a warrant for the approved reimbursement amount. The applicant will be responsible to the County for the timely sharing and/or exchange of any or all documentation related to the project as well as accounting and record retention responsibilities for the project. 6. The applicant shall comply with and give notices required by all federal, state, and local laws, ordinances, rules, regulations, and lawful order of public authorities applicable to performance of the project. Lewis County reserves the right to terminate this Agreement and demand reversion of"Distressed Counties Fund" monies at any time during the undertaking of said project if it is discovered that said project is in violation of any local, state, or federal laws. IV. ENTIRE AGREEMENT This Agreement represents the entire Agreement between the parties and supersedes any prior oral statements, discussions or understandings. Page 2 of 4 V. FUTURE SUPPORT Lewis County makes no commitment to future support and assumes no obligation for future support of the activity contracted for herein, except as expressly set forth in this Contract. The maximum amount of funding available is as stated in the Lewis County Economic Development Public Facilities Project Proposal attached herein. This item is hereby incorporated into this Agreement by reference. VI. GOVERNING LAW This Agreement is governed by, and shall be construed in accordance with, the laws of the State of Washington. Except as otherwise required by applicable law, any legal action under this Agreement shall be brought in the Superior Court of the State of Washington in and for Lewis County. VII. WAIVER OF BREACH No waiver of any breach of any covenant or agreement contained herein shall operate as a waiver of any subsequent breach of the same covenant or agreement or as a waiver of any breach of any other covenant or agreement, and in case of a breach by either party of any covenant, agreement or undertaking, the non-defaulting party may nevertheless accept from the other any payment or payments or performance hereunder without in any way waiving its right to exercise any of its rights and remedies provided for herein or otherwise with respect to any such default or defaults that were in existence at the time such payment or payments or performance were accepted by it. VIII. INDEMNIFICATION The Port of Chehalis shall protect, defend, indemnify and hold harmless Lewis County, the Board of County Commissioners, its officers, agents, and employees, or any of them from and against any and all claims, actions, suits, liability, loss, costs, expenses, and damages of any nature whatsoever, which are caused by or result from the performance of this Agreement by either party. This indemnity and hold harmless agreement shall not apply to acts or omissions of the County's officers, agents, and employees that are not in good faith and are outside the scope of their official duties. IX. DISPUTE RESOLUTION (a) If a dispute arises between the parties with regards to the performance of any provision of this agreement or the interpretation thereof, the parties agree to follow the procedure set forth below. It is the goal of the parties to resolve their differences as early and amicably as possible. Page 3 of 4 (b) The parties shall first meet to attempt to see if the matter can be informally resolved. This informal resolution attempt may involve more than one meeting but is not required to involve more than one meeting. (c) If the parties are unable to resolve their differences,the parties will endeavor to settle the dispute by mediation under such mediation rules as shall be mutually agreeable to the parties. Such mediation shall be non-binding but shall be a condition precedent to having said dispute decided in court by a judge or jury. Mediation shall commence, unless otherwise agreed, within thirty (30) days of a party's written request for mediation of a dispute. Any resolution at this stage shall be reduced to writing and, if it involves an interpretation of the agreement, it shall be considered an addendum to this agreement without the need for formal adoption by the governing bodies of the jurisdictions that are parties to this agreement. Any costs related to mediation shall be shared equally by the parties. Dated this 29th day of October 2018. A 'ROVED AS TO FORM BOARD OF COUNTY COMMISSIONERS athap Meyer, Prosecuting Attorney LEWIS COUNTY, WASHINGTON - ���i 4A _I 'By: Deputy Prosecuting Attorney e und, Chal/ ATTEST Robert C. Jackson, Vice-Chair Rieva Lester, Clerk of the Board Gary S er, Comm stoner • � ......• •• g COUNTk JP.. i 4 /i4'6NRD 0��-1,p• O �v m /c.,� SINCE 1 a� 9'1) lO 1845 z°b Applicant N. e: 'ort of hehalis • .c 5/ • By: •.G)NS lstc i• •••••• Title: G For: Page 4 of 4 BOCC AGENDA ITEM SUMMARY Resolution: BOCC Meeting Date: Oct 29, 2018 Suggested Wording for Agenda Item: Agenda Type: Consent Approve a grant agreement between Lewis County and the Port of Chehalis to accept funding totaling $400,000 from Distressed Counties Fund for the McBride Court phase 2 project. Contact Clerk of the Board Phone: 3607401419 Department: Board of County Commissioners Action Needed: Approve Resolution Description Approve a grant agreement between Lewis County and the Port of Chehalis to accept funding totaling $400,000 from Distressed Counties Fund for the McBride Court phase 2 project. Cover Letter To EDC Office Manager Marrianne Schumacher: Marrianne @lewisedc.com Port of Chehalis CEO Randy Mueller: rmueller @portofchehalis.com