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.09 Grant Agreement with the University of Washington BEFORE THE BOARD OF COUNTY COMMISSIONERS LEWIS COUNTY, WASHINGTON APPROVE A GRANT AGREEMENT ) RESOLUTION 19- 0.31 BETWEEN LEWIS COUNTY AND THE ) UNIVERSITY OF WASHINGTON TO ) ACCEPT FUNDING FROM RCW 82 14 370 ) "DISTRESSED COUNTIES FUND"FOR ) PUBLIC FACILITIES SERVING ) ECONOMIC DEVELOPMENT ) WHEREAS,by Resolution the Lewis County Board of County Commissioners approve funding in the amount of$120,000 for the"Feasibility for Building a Biorefinery based Industrial Park in Lewis County," a project that will serve future demand and that meets the definition of a"public facility"under RCW 82 14.370, and WHEREAS, the 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, University of Washington's application for funding of the "Feasibility for Building a Biorefinery based Industnal Park in Lewis County"project has been recommended for approval and listing in the CEDS by the Distressed Counties/Rural Economic Development Public Facilities Advisory Committee, the Committee created to recommend projects for listing in the CEDS, and WHEREAS, University of Washington'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 authonzed in order to allow completion of the"Feasibility for Building a Biorefinery based Industrial Park in Lewis County" a project that supports economic development in our community, NOW THEREFORE BE IT RESOLVED by the Board of County Commissioners (1) approve the"Feasibility for Building a Biorefinery based Industnal Park in Lewis County"project as a public facility for purposes of RCW 82.14.370 and amend the Community Economic Development Strategies (CEDS) list to include that project in the county's overall economic development plan, and (2) authorize Lewis County to enter into the attached Grant Agreement with the University of Washington, for the"Feasibility for Building a Biorefinery based Industnal Park in Lewis County" project, in the amount of$120,000 using monies from the"Distressed Counties Fund," all in accordance with RCW 82 14 370 and applicable law DONE IN OPEN SESSION this 1� day of 2019 APPROVED AS TO FORM :OARD OF COUNTY CO ISSIONERS Jonathan Meyer, Prosecuting Attorney LE ' COUNTY, WA NGTON (A.0111 /,", /96./ cam... By Deputy Prosecuting Attorney Robert C Jackson, Chair I ' I ATTEST. Gary Star. per, Vice lair Rieva Lester, Clerk of the Board Edna J Fund, ,f crussioner ••••• •••scoUNT•.• •v4�,C ARD 6;id::1".• •o 4r SINCE "i o ,• ff ;78 •' 1 1845 Rr z; • - ••.�bwsistG•• 0 GRANT AGREEMENT BETWEEN LEWIS COUNTY AND THE UNIVERSITY OF WASHINGTON This Grant Agreement is made and entered into by Lewis County and the University of Washington as to the conditions for acceptance of monies by the University of Washington 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 m rural counties The name of this project shall be"Feasibility for Building a Biorefinery based Industrial Park in Lewis County" and shall be funded in the amount of a grant for $120,000 II. ELIGIBILITY The public facility must be listed as an item in the officially adopted Lewis County Comprehensive Economic Development Strategy (CEDS) list and must meet other requirements as set forth by County resolution, adopted policy, and growth management planning Moines 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 Board of County Commissioners, the applicant agrees that 1 The project must be in progress within 6 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 University of Washington 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 reports 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 m the 09 application dated January 14, 2019, 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 other persons or entities that have performed work in connection with or related to Page 1 of 4 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 fund an engmeenng analysis feasibility study to address economic and environmental benefits of establishing a bio hub in Lewis County Funding to complete the full project as presented in the application must be confirmed and available pnor 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 1 Failure to comply with this section may result in reversion to the "Distressed Counties Fund" of all or part of the funding balance. 5 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 Clerk of the Board, on behalf of Lewis County, shall remit to the organization 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 No more than 15 percent of the awarded funds may be used for administrative costs associated with the applicant's project 7 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 V FUTURE SUPCITY 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 Page 2 of 4 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 m existence at the time such payment or payments or performance were accepted by it VIII. INDEMNIFICATION To the extent allowed by law, each party to this Agreement agrees to defend, indemnify and hold harmless the other parties from injuries, damages and loss arising from the negligent acts and omissions of its employees, officers and agents under this Agreement 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 (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 Page 3 of 4 agreement, it shall be considered an addendum to this agreement without the need for formal adoption by the governing bodies of the junsdictions that are parties to this agreement Any costs related to mediation shall be shared equally by the parties Dated this 11141/‘" day of 2019 APPROVED AS TO FORM B P OF COUNTY COMMI SIONERS J 'than Meyer, Prosecuting Attorney COUNTY, WASH ON �,i By !eputy'r.s- uting Attorney 'o• •rt C Jackson, Chair dy ATTEST tS tam? - Rieva Lester, Clerk of the Board Edna J Fund, Co issioner ••`�•1SCOUIVTK •• •O / � O• • SINCE o• ;�' �� 1845 *• Applicant Name University of Washington• •.• ,,comvp,$ • By •• croNrs Is`• Daniell Lienard •••••• Title Grant and Contract Administrator For Carol Rhodes Director, Office of Sponsored Programs Page 4 of 4 LEWIS COUNTY .09 RURAL ECONOMIC DEVELOPMENT FUND Contact Information Applicant: University of Washington Project Title Building a Biorefinery Based Industrial Park in Lewis County Contact: Richard Gustafson Date:01/14/2019 Phone#• 206 543-2790 Email:pulp @uw.edu Address: Box 352100 City,State,Zip: Seattle,WA,98195 Loan Grant Request Amount $120,000 Request 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: Via, 2, ,t, Signatory's Position: Professor 1 1 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, 2 • 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 3 • 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. ElBridges I Domestic n Research n Electrical facilities Earth water facilities facilities stabilization I Roads n Industrial Testing 1 Natural gas n Buildings water facilities facilities facilities nRailroads n Sanitary n Training n Structures sewer facilities facilities Telecommunications infrastructure n1 n Storm sewer n XX Commercial Port Transportation facilities Incubation infrastructure facilities infrastructure facilities 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 of site planning & land use & costs analysis permitting costs 4 capital facilities costs, including XX project design, including costs of acquisition, construction, feasibility and marketing development & rehabilitation, alteration, expansion, studies & plans, and debt & improvement for the or improvements of public facilities revenue impact analysis public facilities YOUR PROJECT What is your "Public Facilities" project' Please provide a brief description of your project in the space below Description A biorefmery development and engmeenng analysis study is required to attract investors and to elucidate the many economic and environmental benefits of establishing a bio- hub in Lewis County with the potential for co-locating a biorefinery with the TransAlta power plant. The objective of this work is to perform the necessary research and analysis to produce a comprehensive report (with the supporting process models and data sets) suitable for circulation to investors, legislators, and others interested parties, on the broad potential and multiple benefits of constructing a biorefinery based bio-hub in Lewis County The report will serve as a road map for developing a bio-hub in the region We will also assess the benefits of co-locating a Leaf Resources biorefinery at the TransAlta site as Leaf has shown considerable interest in Lewis County How Will This Project Create Or Retain Business Or Jobs? 5 "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 Description A biorefinery produces fuels,chemicals,and products from biomass feedstocks A biorefinery in Lewis County would provide many benefits employment at the biorefinery itself with excellent wage jobs,a steady market for feedstock crops (we envision poplar trees and switchgrass) grown on lands in Lewis and neighboring counties,and a market for biomass - primarily poplar- grown for water treatment and to mitigate flooding in the Chehalis basin.A biorefinery of the scale projected for Centralia (approximately 250,000 tons biomass per year) would produce about 200 direct employment jobs (biorefinery and tree farms) and 750 indirect employment jobs The economic output (wages and tax revenues) would be $190 million over the life of the biorefinery operation and up to $100 million during construction. facilities This typically excludes retail and service sectors and other tertiary jobs producers Category Created (1 yr ) - Retained (1 yr ) Name/Number Name/Number Businesses Centralia biorefinery Centralia biorefinery Direct full time jobs, 200 direct 200 direct Direct part time jobs, 750 indirect 1 750 indirect 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 $530,000 Requested Amount $120,000 6 Loan Amount. XX Grant (Limit Amount: $120,000 $200,000) What Is The Timeline To Completion? Project Timdiue with Milestones and Deliverables Objective 7/2019 12/2019 7/2020 12/2020 7/2021 12/2021 62022 Techndecononic assessment of bullring biorefimry in Centralia, \%A that produces fuels and high value prorkrts Assess availability and cost of biomass for a biorefinery. Potential for using biomass tree farm for water treutrmnt also assessed Assess infrastructure for a _ biorefinery in Innis County. Assess enviromnental benefits and w acts of proposed biorefinery Assess community benefits and imlacts Complete final reports and presentations.Publish results Articulate the projected timeline of for this project as well as its completion date COMMITTEE EVALUATION Committee Use Only Do Not Fill Out 7 • LEWIS COUNTY 09 RURAL ECONOMIC DEVELOPMENT FUND 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 Y/N purpose? 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)? 8 i 9 Date of Project Name Brief Description of Project Application Applicant Total Project Amount Status .09 CEDS List Building a biorefinery Cover cost of development and based indistrial park in University of engineering analysis study to address 1/14/2019 Lewis County Washington $120,000.00 economic and environmental benefits Mickelsen Parkway Lewis County Public 5/21/2019 Constructin Works $1,125,380.00 Construction of Mickelsen Parkway Rail transload and grain 2/11/2019 facility Port of Chehalis $ 800,000.00 Installation of a rail spur rinance puouc racemes serving Water Main Extension economic development purposes in 2/7/2019 SR505 City of Winlock $ 300,000.00 rural counties Comprehensive Plan Complete state mandated update of 2/19/2019 Update City of Vader $ 25,000.00 City of Vader Comprehensive Plan 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 EDC Operations Implementation of Strategic Plan and 3/9/2018 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 Feasibility Study and Engineering Report 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 2/22/2016 Complex Port of Chehalis $ 750,000.00 Env sampling,site design,permitting Chehalis Industrial Park Site 10/30/2015 Prep Port of Chehalis $ 275,000.00 clearing,fill excavation permitting Discover!Childrens Construction of a childrens museum 8/26/2015 Museum City of Chehalis $ 4,200,000.00 Chehalis Industrial Park Rail Build 700 ft of rail 5/28/2015 Infrastructure Expansion 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 2/20/2015 rebuild City of Chehalis $ 135,276.00 Overhaul of Locomotive#15 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 Rural Economic Development Public Facilities Advisory Committee Minutes June 14, 2019, @ 8.30am Lewis EDC Conference Room 8.30 A.M.. call to order by Dan Rich Committee Members Present Dan Rich, EDC Chair, Dennis Dawes, City of Chehalis Mayor, Edna Fund, Lewis County Commissioner, Dan Mortenson, City of Morton Mayor; Buck Hubbert, Industrial Commission, Lee Coumbs, City of Centralia Mayor, Mark Ander, Port of Chehalis Commissioner Others Present Lisa Goodman, Benaroya; Matt Matayoshi, Lewis EDC, Marrianne Schumacher, Lewis EDC, Bob Guenter, Bob Russell, Don Bradshaw, City of Winlock Mayor;Josh Metcalf, Lewis County Public Works New Business. 8 30 A M Lee Coumbs made a motion to approve minutes from the March 8, 2019 meeting Dennis Dawes provided a second to the motion Edna Fund asked that an amendment to the minutes be made to include the amount of$300,000 that the City of Winlock project was awarded for the Water Main Extension The motion to amend and approve the minutes passed unanimously 8.35 A.M.: Matt Matayoshi provided a brief overview of the 09 funds unencumbered balance In May of 2019 the available balance was 1 8 million with 1 million in reserves Dennis Dawes posed the question of why there are varying interest rates varies between different projects Matt stated that the rate is negotiated, and each project is treated differently Lee Coumbs agreed that there needs to be uniformity for the rate but also stated that the rate should be between 1-3% Dennis Dawes made a motion that staff do some research and report back to the committee with guidance concerning this issue Edna Fund provided a second to the motion The motion passed unanimously 8.40 A M.. Matt provided a review of the 09 funding policy The funding policy is a recommended guideline and is not binding He stated that there should be a split of loan and grant funds Edna Fund stated that as it is policy, the commissioners have the ability to change funding for each project Buck Hubbert expressed that the final decision for larger awards should be left to the discretion of the commission to approve Matt stated that he will bring back a draft policy to the next 09 meeting in September 8 50 A M • Matt presented the City of Winlock's, Mickelseen Parkway Construction application for the grant request amount of$1,125,380 00 The state legislature has made a match of $750,000 and Benaroya will be providing a match of 1 2 million Lisa Goodman provided the committee with information regarding Benaroya's support and involvement of the project Lisa stated that from King County and South there are no large industrial sites available Only Lewis County has this capability She stated that without the Mickelseen Parkway Benaroya cannot market the industrial area and it is not ready for development Benaroya has spent over 1 8 million over the last three years doing improvements to the site Buck Hubbert asked if there was a bid on the price for building the road Don Bradshaw provided the committee with a preliminary estimate for Mickelseen Parkway Lisa stated that March of 2021 is the deadline for the completion of the road Lee Coumbs asked if sewer has been addressed. Don stated that sewer will come next year He stated that when the road is under construction sewer will immediately follow Edna Fund stated that there needs to be a chronological plan in place where the county and all partners involved are working together so the project does not unexpectedly get hung up Josh Metcalf stated that a county inspector will be on site to ensure the road will be done to County standard The County will review construction and storm water plans We want to do everything we can to move the project forward Josh stated that he would like to see a proposal to Department of Transportation for the truck lane 9 50 A M . Buck Hubbert made a motion that the $1,125,380 be allocated to the City of Winlock with the caveat that the County Commissioners be provided with all pertinent information and a timeline for project Lee Coumbs provided a second to the motion The motion to approve was unanimous 10.00 A.M •The University of Washington application was presented by Matt Bob Guenther stated that the grant request is for $120,000 for a biorefinery development and engineering analysis study to address economic and environmental benefits of establishing a No hub in Lewis County Buck Hubbert asked how much it would cost to build a plant Bob Guenter stated that it would cost $150 million to build a refinery Buck asked if there is one in the U S Bob Russell stated that there is one currently being built in Malaysia The study will show if Poplar trees can be grown in areas where hardwoods are not growing Dennis Dawes made a motion that funding be approved for $120,000 Edna Fund provided a second to the motion The motion to approved is unanimous 10 15 A.M.. Meeting Adjourned BOCC AGENDA ITEM SUMMARY Resolution. BOCC Meeting Date. Aug 19, 2019 Suggested Wording for Agenda Item- Agenda Type: Consent Approve a $120,000 Distressed Counties ( 09) grant to the University of Washington for a feasibility study related to building a biorefinery in Lewis County's Industrial Park Contact Rieva Lester Phone- Department Board of County Commissioners Action Needed Approve Resolution Description Approve a $120,000 Distressed Counties (.09) grant to the University of Washington for a feasibility study related to building a biorefinery in Lewis County's Industrial Park Approvals. User Group Status Gatten, Cullen Prosecutor Pending Cover Letter To Danny Lienard, University of Washington lienard@uw.edu Matt Matayoshi Additional Copies Becky Butler