Res 1019 - Infra Develop Hdwe W
COUNCIL BILL NO. 1251
RESOLUTION NO. 1019
A RESOLUTION COMMITTING CITY PARTICIPATION IN THE INFRASTRUCTURE DEVELOP-
MENT OF THE HARDWARE WHOLESALERS. INC. PROJECT AND ENTERING INTO A PRELIM-
INARY DEVELOPMENT AGREEMENT
WHEREAS, the City of Woodburn desires to stimulate economic
development for the benefit of the community; and
WHEREAS, the City of Woodburn is in need of improving water
and sewer linkages in the freeway interchange area to benefit the health
and safety of local service; and
WHEREAS, the proposed project allows the shared benefit partici-
pation of private, local and state resources to accomplish said infras-
tructure improvements; and
WHEREAS, the completion of this infrastructure development
will further the community development goals of the community, NOW, THERE-
FORE,
THE CITY OF WOODBURN RESOLVES AS FOLLOWS:
Section I. A summary of infrastructure improvements highlighting
the development of the project site are generally described in the pre-
application to the Oregon Economic Development Department, a copy of
which is attached as Exhibit A and incorporated herein.
Section 2. The City Council finds that the degree of public
benefit involved in said project warrants city participation by virtue
that (a) street improvements to Highway 214 also benefit access to west
Woodburn which is already developed, (b) water improvements provide a
secondary loop access for improved capacity and health to the west Woodburn
area, (c) sewer improvements will ultimately replace a deteriorating
pump station which is a city maintenance responsibility as well as provide
service to a developing industrial area.
Section 3. The City of Woodburn has estimated costs and determined
benefit participation by the parties involved to approximate the following:
(1) $445,000 applicable to the 100 acre site of which Hardware Wholesalers,
Inc. (HWI) will be responsible for its estimated share at $160,000, (b)
$147,000 applicable to other local area properties benefitted by said
infrastructure improvements to be deferred through receipt of a conditional
grant from the State of Oregon and repaid through special development
charges, and (c) $800,310 applicable to public improvements of which
the City of lIoodburn and State of Oregon will collectively participate
and support said improvements.
Page 1 - COUNCIL BILL NO. 1251
RESOLUTION NO. 1019
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Section 4. In order to facilitate corporate planning and commitment,
and facilitate HWI's decision to acquire a portion of the 100 acre site,
the City of Woodburn guarantees to HWI and to the owner of the 100 acre
site that the infrastructure improvements will be constructed or completed
and that the property owner project participation cost will be an aggregate
of $445,000, with the conditions that (a) State participation in conditional
and non-conditional grants/loans does not decrease by 10% or greater
from an estimated total participation of $947,310 and (b) Hardware Whole-
salers, Inc. obtain building permits for the project prior to 6/30/91.
Section 5. Consistent with the above considerations, the City
Council authorizes the city to enter into a preliminary development agree-
ment, a copy of which is attached hereto as Exhibit B and incorporated
herein. Said agreement is entered into to facilitate corporate planning
and is conditioned upon the city obtaining the grant funds specified
above and upon HWI obtaining the necessary building and zoning permits.
The Mayor and Deputy City Recorder are hereby authorized to sign said
agreement on behalf of the city.
Section 6. The guarantee in Section 4 is to be construed consistent
with and not in violation of any debt limitation provisions of the Oregon
State Constitution or the Woodburn City Charter.
Section 7. In the event that the conditions in Section 4 are
not met, the involved parties may negotiate final disposition.
Section 8. It is also understood that the above estimates
were based upon the City's 4/87 main infrastructure design for this area
and the preapplication grant proposal for improvement costs as submitted
on September 19, 1990.
Section 9. The city staff are hereby directed to prepare docu-
mentation as necessary to facilitate grant applications and other components
of this improvement ~ect. /\0 _ ~ 1- 2 / _ <} 0
Approved as to form: ,~~~
City Attorney Date
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APP ROVED: ./ /;-1JrI(; h' W LU..-LcuA--?
NANCY A. IRKStV,' MAYOR /
Passed by the Council
Submitted to the Mayor
Approved by the Mayor
Filed in the Office of the Mayor
Attest: /~<-(.cl,t c:. --Z;:~,---,7
Mary E. nnant, Deputy Recorder
City of Woodburn, Oregon
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Page 2 - COUNCIL BILL NO. 1251
RESOLUTION NO. 1019
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PRELIMINARY
DEVELOPMENT AGREEMENT
PARTIES:
This agreement is made and entered into by and between the CITY
OF WOODBURN, a municipal corporation ("City"), and DAVIDSON FARMS, INC.,
an Oregon corporati on ("Owner").
RECITALS:
Owner owns approximately 100 acres of industrially zoned land
in the City located west of 1-5 and south of State Highway 214 in the city
limits of Woodburn.
Hardware Wholesalers, Inc. ("HWI") proposes to purchase approx-
imately 30 acres of Owner's Tract and construct a distribution center thereon
as depicted on the HWI site plan review application
HWI site development is dependent upon the extension of certain
infrastructure improvements described later in this agreement and upon HWI
obtaining site plan approval and applicable permits under the City's develop-
ment code.
To facilitate the acquisition by HWI of a portion of the Owner's
Tract, and to assure the good faith effort of the parties to complete their
project commitments, this preliminary development agreement is initiated.
Owner's Tract will be benefitted by the infrastructure improvements
described above and City will benefit from such infrastructure and the economic
impact of the HWI distribution center.
Each party shall pay for a reasonable and proportional share of
the infrastructure development relative to the respective benefits received
as is further specified below.
AGREEMENT:
1. Infrastructure Improvements. The proposed public infrastructure
improvements are generally described in the pre-application grant/loan submittal
to the Oregon Economic Development Department, a copy of which is attached
as Exhibit C and incorporated herein. Said infrastructure improvements will
be constructed to all applicable government codes, standards, 2nd requirements.
2. Binding Effect of Agreement. This agreement shall be binding
upon the parties only after: (1) HWI obtains development approval under
City's site plan review process and applicable permits, and (2) the Oregon
Economic Development Department awards City the infrastructure funding requested
by City in Exhibit C.
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3. Project Commitment. City has extended its support for this
development project through the adoption of a resolution by the City Council
on September 24, 1990. Upon the successful receipt of the State financial
assistance contained in the pre-application submittal, City shall manage
and cause to be constructed the following elements of infrastructure improve-
ments by the following date guidelines within the best of the City's abilities
and natural conditions:
a. Water service main service improvements by May 30, 1991.
b. Sanitary sewer main service improvements by September 15, 1991.
c. Stormwater drainage improvements to be agreed to mutually
according to engineer design and completion of permit process.
Highway 214 improvement to be mutually decided by the State Highway Oivision
and the City. Access to the property will be provided when need arises.
e. Woodland Avenue extension approximately 1000 feet south of
Highway 214 to the southeast corner of the HWI site by September 30, 1991.
Minor and reasonable changes in the proposed date guidelines shall
not be considered a breach or default under the terms of this agreement.
sums:
4. Owner's Payments. Owner agrees to pay City the following
a. The sum of $200,000 as a reasonable and proportional contri-
bution to the infrastructure improvements.
b. The sum of $45,000 as a reasonable and proportional contribution
to storm drain improvements; and
c. The entire cost of extending Woodland Avenue south of Highway
214 for approximately 1,000 feet, which is currently estimated at $200,000.
5. Payment Schedule. Owner and HWI have agreed to place $160,000
of the total amount payable by Owner to City in escrow to be used only to
satisfy Owner's payments to the City until the improvements described above
are completed. Owner agrees that $75,000 shall be advanced to City from
such escrow to enable City to acquire materials to commence such construction,
such advance to be a credit against Owner's payment liability described above.
Owner shall pay the balance owed to City under Section 3 of this
agreement in installments upon the same terms and interest rate as City is
required to pay the State of Oregon under the economic development grant
application. Owner's payment obligation to City shall be secured by a security
interest in the remaining portion of Owner's Tract as specified in a separate
legal document approved by City, and shall be conditioned upon City completing
the improvements described above.
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6. Owner's Conveyances. Owner agrees to convey to City a utility
easement from City's newly installed water main adjacent to 1-5 to the proposed
extension of Woodland Avenue; to dedicate to City a 90 foot right-of-way
for the extension of Woodland Avenue south 1,000 feet; and to convey to the
State of Oregon 30 feet of right-of-way along the north boundary of Owner's
Tract adjacent to Highway 214; descriptions for such easements and rights-of-way
are set forth in Attachment 1, attached hereto. When development of the
remainder of Owner's Tract occurs, Owner agrees to dedicate 90 feet of right-of-way
for the further extension of Woodland to the westerly line of Owner's Tract,
at such location selected by Owner as future development warrants and upon
request by City. Owner further agrees to convey to City one acre from Owner's
Tract (or Owner's land adjoining on the south) for a well site and/or water
tower site to be located by Owner at such time as development warrants and
upon request by City and at the option of the city.
7. Remedi es, Attorney Fees. In the event either pa rty defaults
hereunder, the nondefaulting party shall have the right, without limiting
any other rights and remedies at law or in equity, to bring an action or
claim against the defaulting party for damages or specific performance of
this agreement. In the event of a breach of this agreement, the prevailing
party may recover from the breaching party its reasonable attorney fees and
costs, including fees for trials and appeals, for services both in enforcing
this agreement and defending against any claims or actions by third parties
as a result of any breach of the agreement.
6. Entire Aqreement. All terms and conditions of this agreement
are contained herein, and no verbal agreemnts of any kind shall be binding
upon the parties. The terms of this agreement shall be binding upon and
inure to the benefit of the parties hereto and their successors and assigns.
IN WITNESS WHEREOF, the parties have caused this agreement to
be executed this day of September, 1990.
CITY:
CITY OF WOODBURN
By:
Nancy Kirksey, Mayor
OWNER:
DAVIDSON FARMS, INC.
By:
Donald J. Davidson, President
ATTEST:
Mary Tennant, Deputy Recorder
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"1 or
OREGON COMMUNITY DEVELOPMENT PROGRAM
Economic Development Department
595 Cottage St. N.E.
Salem, OR 97310 PH: 378-3732
PLEASE SUBMIT ORIGINAL AND 3 COPIES
Pre-Application
OCDBG Economic Development Grant
SPWF Infrastructure Grant/Loan
1.
Applicant:
Address:
On behalf of (sewer district):
Name: C i t Y 0 f Woo d bur n
City of Woodburn
270 Montgomery St.
Woodburn, Or 97071
Contact Person: Steve Goeckritz
Address: Frank Tiwari
Same as above
Phone: 982 - 5 246 0 r 982 - 5 249 Phone: 982 - 5 246
If this a joint application indicate which jurisdiction will assume primary
responsibility for the project.
Address: 270 Montgomery St.
Woodburn, OR 97071
2.
Project Highlights:
Funds requested
Loan S
Grant* (A)
Other funds
Total cost
530,000
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S 1.392:310
New jobs anticipated
Jobs retained
Jobs for low/mod
income persons
Family wage jobs
130 +
o
15
I J S
Leverage ratio (other funds
requested funds)
I :? S
*Note: Grants will be considered ~ when loans are not feasible due to the
economic need of the applicant andtne specific circumstances of the project. Be
prepared to provide substantial justification for any amount of requested grant
if you are invited to submit a fi na 1 app 1 i cat ion.
3. Description of project and proposed accomplishments:
The proposed grant/loan funding will be used to facilitate
the development of an infrastructure system that Mill
accommodate the future growth of a 100 acre Industrial Park
and an area adj acent to the Highway 214/1-5 Interchange.
(See Attachment I)
4. Name and description of business(es) proposing to create new jobs:
HWI is a member-owned corporation that provides merchandise
and services consistent with the demands of the market
place, at competitive prices to enable inde.pendentl-y owned
hardware, lumber and home centers to effectively compete.
(See Attachment II)
SPWF/OCDBG Pre-Application Page 1
)
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5. What source of funds would be used to repay the loan/program income to the
state?
These funds will be repaid out of State Revenue Sharing Fund, Sewer Funds
and Water Fund through city labor.
6. FINANCIAL SUMMARY
Source
I. Sewer Fund & State Rev.
Sharing Fund
2. Conditional Grant
Term and rate
(for loans)
Use
Amount
20 yr. at 5%
State
Ass i st.
Needed
S
Other
Public
Funds
S
Leveraged
Private
Investment
$
Sewerage & Street $530,000
Improvement
Sewerage Imorovement $147,000
10 y~. on development
Expenditures
Land acquisition, clearance
Buildings
Machinery and equipment
Furnishings
Landscaping, parking
Public infrastructure
Water improvements (B) 25,000
Sanitary Sewer improvements(c) 676.000
Storm sewer improvements
Road, bridge improvements 320.653c(D) 210.655
Private infrastructure
Engineering, architectural
Project administration
Contingencies
Other (describe)
Total Project
Activities
Project
Total
$
50,000
676.000
4') 000
621.310
S 1,392,310
Note: Entries in the Leveraged Private Investment and Other Public Funds columns
will be used to determine whether the project meets the required 2:1 match.
7.
Is this project ~art of a Regional Economic Development Strategy which is
under serious consideration by the relevant county or group of counties?
Explain.
)
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25,000
4') 000
90.000
$ 996,655 $ 235.655
$ 160,000
SPWF/OCDBG Pre-Application Page 2
36
(A) A total grant assistance request is for $466,655 of that
319,655 is "pure grant" while 147,000 is conditional grant.
(B) This represents City labor costs.
(C) Of the 676,000 for sanitary sewer improvement 147,000 is a
conditional grant. This is to be paid back by the benefitted
property owners if development occurs within a ten year time
frame. Another 319,655 will be a grant to the City with the
remainder (209,345) as a loan to the City.
(D)
The Oregon Department of Transportation will
$210,655 from the Immediate Opportunity Fund for
214 Road Improvement project.
contribute
the Highway
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8. Are you aware of any environmental concerns with this project such as
historic designations, location of the project in a floodplain, etc.?
_ yes; ~ no. If "yes. please explain.
9. Is the project located in your jurisdiction? x yes; no
Will the applicant own and operate any reques~nfrastructure?
----'L- yes _ no. If "no" to either question, explain.
10. ATTACH maps adequate to show the general vicinity and specific
1 ocat i on of the proposed project. See Ma psI - II I
11. AT1ACH current financial statement and or rofit or loss statement for the
benefite uSlness 1 e uSlness Wl e repaYlng a oan.
See Attachment III
12. For applicants seeking assistance to acquire, rehabilitate, operate or
maintain an abandoned railroad line under the SPWF program:
a. Oescribe the operating status of the railroad line.
b. Has the applicant consulted with the Dept. of Transportation or other
affected agencies?
NA
13. Other information applicant wishes to provide.
)
THE PURPOSE OF THIS PRE-APPLICATION IS TO DETERMINE PROJECT ELIGIBILITY UNDER
FEDERAL AND STATE LAW AND ADMINISTRATIVE RULE. APPLICANTS GIVEN ELIGIBILITY MAY
SUBMIT A FINAL APPLICATION TO THE DEPARTMENT FOR FUNDING CONSIDERATION.
CERTIFICATION OF HIGHEST ELECTED OFFICIAL
I certify that, to the best of my knowledge: (1) all information contained in
this application is valid and accurate; (2) the submission of this application
has been authorized by the governing body of the city/county; and (3) if funding
is received, we will comply with all applicable state and/or federal program
requirements.
Signature
Title
Date
Mayo r
Name Nancy Kirksey
(rype or prl nt)
)
SPWF/OCDBG Pre-Application Page 3
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ATTACHMENT I
Without State assistance
of an opportunity to
Wholesalers, Inc. (HWI).
loss of 130+- industrial
the immediate impact will be the loss
obtain a commitment from Hardware
This would equate into a potential
related jobs to our community.
They will occupy 30 acres of a 100 acre Industrially zoned
parcel.
As for the minimum infrastructure improvements required to
facilitate the proposed development State and City roads are
one of these requirements. It will be necessary to widen
State Highway 214, provide signalization at Woodland Avenue,
and build approximately 1,000 feet of road into the 100 acre
Industrial Park.
Water improvements calls for a looped line be installed from
Woodland Ave. at Highway 214 to the vicinity where Hayes
Street extent ion meets 1-5 (bored under the freeway) to
connect with the easterly line extension. The majority of
these improvements have been improved by the City in
anticipation of offering assistance to those areas where water
improvements are necessary to serve this site and involve
benefit to no other property.
Sewer Improvements are the most extensive public
infrastructure needed to this site and to be effective must be
considered as necessary: to a broader service area.
Consequently,. the City has estimated a logical service benefit
area and assessed th~ improvements accordingly to acreage
served. The sewer improvements require two bores, one under
Highway 214 and one under the freeway. In addition to the
sewer line throught the property, a force main on the eastside
of the freeway will be necessary to connect into existing
service. A pump sta~ion will also be required and will be. a
replacement to an older, existing unit located on Highway 214.
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A TT ACHMENT II
HWI practices fairness in
vendors and employees as
others as you would like
our associations
expressed in the
to be served".
with
HWI
all members,
creed, "Serve
HWI has a corporate office in Fort Wayne, Indiana and
distribution centers in Cape Girardeau, Missouri; Dixon,
Illinois; Median, Ohio; Waco, Texas; and Lexington, South
Carolina. These centers service 3,000+ members located in 43
staes. These six facilities combined employ approximately 900
persons.
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