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“Distressed Counties .09% Fund” for the North Lewis County Industrial Access project BEFORE THE BOARD OF COUNTY COMMISSIONERS LEWIS COUNTY, WASHINGTON IN THE MATTER OF: RESOLUTION NO 19-296 APPROVE A MEMORANDUM OF UNDERSTANDING BETWEEN LEWIS COUNTY AND LEWIS COUNTY PUBLIC WORKS TO ACCEPT FUNDING UNDER RCW 82.14.370 "DISTRESSED COUNTIES 09% FUND" FOR THE NORTH LEWIS COUNTY INDUSTRIAL ACCESS PROJECT WHEREAS, resolution the Lewis County Board of County Commissioners approve funding in the amount of $170,000 for the "North Lewis County Industrial Access project," 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, Lewis County Public Works Department has applied for .09% funds to conduct the "North Lewis County Industrial Access" project; and WHEREAS, the Lewis County Board of County Commissioners (BOCC) has reviewed a proposal and request from the Lewis County Public Works Department for $170,000 of 09% funds for the "North Lewis County Industrial Access" project; and WHEREAS, it appears to be in the best interest of the citizens of Lewis County that these funds be authorized in order to allow completion of this project to support employment growth andprovide for important job and business retention. NOW THEREFORE BE IT RESOLVED that the BOCC approves the Memorandum of Understanding with the Lewis County Public Works Department for the "North Lewis County Industrial Access" project, using monies from the Distressed Counties .09% Fund pursuant to 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 the County Engineer is authorized to sign. DONE IN OPEN SESSION this 14th day of October, 2019 APPROVED AS TO FORM• BOARD OF COUNTY COMMISSIONERS Jonathan Meyer, Prosecuting Attorney LEWIS COUNTY, WASHINGTON Cullen Gatten Absent By. Cullen Gatten, Robert C. Jackson, Chair .! Deputy Prosecuting Attorney .so�)-NTYo OF AS;%;�., ATTEST: .o; CE Gary Stamper 51 :•u`', 19045 ' Gary Stamper, Vice Chair .C'p SAO•J2. Rieva Lester 'ys `o" 5`` Edna J . Fund Rieva Lester, Edna J. Fund, Commissioner Clerk of the Lewis County Board of County Commissioners MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding (MOU) is made and entered into by Lewis County and the Lewis County Public Works Department as to the conditions for acceptance of monies by the County 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 "North Lewis County Interchange Access" and shall be funded in the amount of a grant for $170,000. II. ELIGIBILITY The project must be listed as an item in the officially adopted County Community 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 six months of the date of this MOU, or grant funds shall revert 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, design or permitting stages of the project The Lewis County Public Works Department shall promptly notify Lewis County Board of County Commissioners (BOCC) and the Lewis County Economic Development Council (LCEDC) 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 one-time only six-month extension may be granted if the applicant can demonstrate significant progress toward project completion. 2. Applicant must provide semi-annual progress reports to the LCEDC and the BOCC in order to ensure satisfactory completion of the project and proper expenditure of grant monies The scope of project work is as contained in the "North Lewis County Interchange Access" application dated September 6, 2019, and is hereby incorporated by reference into this MOU Failure to provide progress reports or sufficient report information may result in reversion to the "Distressed Counties Fund" of all or part of the funding balance. At such times as the BOCC deems necessary for reasonable cause, Lewis County Public Works shall permit the County Auditor to inspect and audit all pertinent books and records of Lewis County Public Works or other persons or entities that have performed work in connection with or related to this funding Page 1 of 3 3 Lewis County Public Works has requested these funds for the North Lewis County Interchange Access This project proposes to initialize the Access Revision Report (ARR) process with the Federal Highway Administration (FHWA) and Washington State Department of Transportation (WSDOT) for the collector distributor option of the North Lewis County Industrial Access (NLCIA) project 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. 4 Funding to complete the full project as presented in the "North Lewis County Interchange Access" project 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 5 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 LCEDC and the BOCC 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 6 Billings and invoices together with audit-sufficient supporting documentation shall be remitted to the Lewis County Commissioners Clerk of the Board for payment not more than one time each month Lewis County Public Works will be responsible 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. 7 Lewis County Public Works 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 IV. ENTIRE MEMORANDUM OF UNDERSTANDING This Agreement represents the entire Agreement between the parties and supersedes any prior oral statements, discussions or understandings Dated this 14th day of October 2019 BOARD OF COUNTY COMMISSIONERS LEWIS COUNTY, WASHINGTON Robert C. Jackson, Chair 531-1/-< Gary S mper, Vibe Chair Page 2 of 3 ' ,,/ / i( sle;(//f.j -s Edna J Fund, Co/missioner Clerk of the Board •••••• •G UN 4,11 iok•0I/ NCE \\co; By -- �� ■ • SI z • • �4 1845 t «: Tit e .4' 44. fi ii• �M %-%0 • For Lewis County Public Works Approved as to Forr a;;;s:"•• Jonathan L Meyer Lewis Co my Prosecuting Attorney 1 tU Civil 6eputy Prosecutor Page 3 of 3 LEWIS COUNTY .og 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 37o 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 8214 37o 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 1 Contact Information Applicant Lewis County Public Works Project Title. North Lewis County Industrial Access Contact' Josh S. Metcalf, P.E. I Date: Phone #. (360) 740-2762 i Email• Josh.Metcalf @lewiscoun tywa.gov Address. 2025 NE Kresky Avenue ! City, State, Zip: Chehalis, WA 98532 Loan Grant Request $170,000 00 Request 1 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 igFlatory's Director Position 2 QUALIFICATIONS Does Your Project Qualify? Per RCW 82 14 37o the o9 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 37o and listed under the county economic development plan(or capital facilities plan) Please select the criteria which correspond to your project. ❑ Bridges ❑ Domestic water ❑ Research ❑ Electrical facilities D Earth facilities facilities stabilization Roads ❑ Industrial water ❑Testing ❑ Natural gas facilities i ❑ Buildings facilities facilities ❑ Railroads ❑Sanitary sewer ❑Training ❑Telecommunications ❑Structures facilities facilities infrastructure ✓Transportation /Port facilities infrastructure Storm sewer 0 Incubation 0 Commercial 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& permitting costs El capital facilities costs,including rkr project design,including "costs of development acquisition,construction, i feasibility and marketing studies &improvement for the rehabilitation,alteration,expansion, &plans,and debt&revenue public facilities or improvements of public facilities impact analysis 3 YOUR PROJECT What is your"Public Facilities"project? Please provide a brief description of your project in the space below Description This project proposes to initialize the Access Revision Report(ARR)process with the Federal Highway Administration(FHWA)and Washington State Department of Transportation(WSDOT)for the collector distributor option of the North Lewis County Industrial Access(NLCIA)project The NLCIA project will provide ingress/egress from Interstate 5 to north Lewis County industrial properties at the Port of Centralia and the Industrial Park at TransAlta(IPAT) Industrial development in north Lewis County is central to the County and regional economic revitalization strategies.Industrial jobs are needed that pay wages that are higher than the county average and higher than the industrial sector itself.Inadequate industrial access can inhibit those industrial development opportunities which currently exist but are underutilized.Access and circulation are two important transportation factors that undercut the economic viability of industrial investments that support the region's vision and economic vitality.Previous reports have identified deficiencies in both industrial access and traffic flow in the area of north Lewis County and south Thurston. 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 Project completion will provide direct access to industrial properties and stimulate development of industry in one of the few remaining large industrial park opportunities between Seattle and Portland Locally,industry development and manufacturing will provide hundreds of family-wage jobs for workers employed by new industry and will further stimulate area support/service industries and reduce unemployment in a depressed county with one of the highest unemployment rates in the state Short term jobs will be created with consulting engineer,local surveyors,and contractors to construct the roadway Long term jobs will be created and maintained as IPAT and the Port of Centralia develop industrial properties. Category Created(1 yr.)- Name/Number Retained(i yr.)-Name/Number Businesses Direct full time jobs, NLCIA goal of 1000 by 2030 NLCIA goal of 1000 by 2030 4 Category Created(1 yr.)- Name/Number Retained(1 yr.)-Name/Number 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$60o,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 Requested Amount ElAmount ✓Grant(Limit$200,000) Amount.$170,000 What Is The Timeline To Completion? Articulate the projected timeline of for this project as well as its completion date Description 7 It is anticipated that this phase of the project will be completed within the next 6-12 months. 5 LEWIS COUNTY .og RURAL ECONOMIC DEVELOPMENT FUND COMMITTEE 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 i-10(lo indicates a high probability)? 6 Date of Project Name Brief Description of Project Application Applicant Total Project Amount Status .09 CEDS List North Lewis County Lewis County Public Fund the project design of North 9/6/2019 Industrial Access Works 170,000 00 Lewis County Industrial access Building a biorefinery Cover cost of development and based industrial 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 Construction 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 finance public facilities 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 Co Working facility Acquire and remodel facility for co- 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 8/26/2015 Museum City of Chehalis $ 4,200,000 00 Construction of a childrens museum Chehalis Industrial Park Rail Infrastructure Expansion Build 700 ft of rail 5/28/2015 Port of Chehalis $ 885,271.00 Discover!Childrens 5/27/2015 Museum City of Chehalis $ 4,200,000 00 Construction of a childrens museum 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 September 13, 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, Dan Mortenson, City of Morton Mayor; Lee Coumbs, City of Centralia Mayor; Mark Ander, Port of Chehalis Commissioner Others Present Matt Matayoshi, Lewis EDC; Marrianne Schumacher, Lewis EDC New Business: 8:30 A.M.: Dan Mortensen made a motion to approve minutes from the June 14, 2019 meeting. Mark Anders provided a second to the motion The motion passed unanimous 8:35 A.M.: Matt Matayoshi provided an update of the policies for loan and grant limits under .09 funds. The current policy was adopted by the county in 2013 Ultimately, the county commissioners set the policy. Matt met with the county commissioners regarding the update of policy language of funds of grant funds from $200,000 to $350,000. He also proposed to adjust loan amounts to $350,000 Dan Mortenson stated that the purpose of the funds is to spur economic development. He asked the question of why there are varying interest rates between different projects and stated that the interest should be equal for each applicant. Matt stated that the rate is recommended by the committee at the time the application is considered, and the County Commissioners ultimately determine the interest rate Dennis Dawes made a motion that a recommendation to the county commissioners be made that all approved 09 fund loans have a 0% interest rate Dan Mortenson provided a second to the motion The motion passed unanimously Dennis noted that further policy language updates are needed in attachment A. the section addressing membership of the advisory committee Matt stated that he would make the necessary changes. Dan Rich asked that a list of policy changes for future reference be kept. 8:45 A.M.: Matt presented the Lewis County Public Works application for the grant request amount of$170,000.00. The grant is for project design of North Lewis County Industrial Access This project will position the community to plan for the $50 5 million allocated by the Legislature that is coming available in 2025. Dan Mortenson stated that we need to support this project so that the funds are not re- appropriated in 2025 Edna Fund provided Dan Mortenson her approval of the project and approval of the .09 fund grant of$170,000.00. Mark Anders stated that these funds are necessary to lead to the development at IPAT. Dennis Dawes made a motion to approve the application and 09 grant of$170,000 00 for the North Lewis County Industrial Access project Pete Lahmann provided a second to the motion The motion passed unanimous. 9:00 A.M.: Dan Rich asked the committee if there were any applications in the pipeline. Dan Mortenson stated that there is a property in Morton that is just coming up for sale The property is 38 acres for $550,000 00 and already has water and sewer. Dan would like to purchase the property for an industrial park in Morton 9:10 A.M.: Meeting Adjourned BOCC AGENDA ITEM SUMMARY Resolution: 19-296 BOCC Meeting Date: Oct. 14, 2019 Suggested Wording for Agenda Item: Agenda Type: Deliberation Approve a Memorandum of Understanding between Lewis County and Lewis County Public Works to accept funding under RCW 82.14.370 "Distressed Counties .09% Fund" for the North Lewis County Industrial Access project Contact: Rieva Lester Phone: 360-740-1419 Department: BOCC - Board of County Commissioners Description: Approve a Memorandum of Understanding between Lewis County and Lewis County Public Works to accept funding under RCW 82.14.370 "Distressed Counties 09% Fund" for the North Lewis County Industrial Access project Approvals: Publication Requirements: Hearing Date: Oct. 9, 2019 User Status Pubications: PA's Office Approved Additional Copies Josh Metcalf Becky Butler