RECE~Vfed 5/31/16 Council
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2016-182 WHATCOM COUNTY COUNCIL AGENDA BILL NO. CLEARANCES Initial Date Date Received in Council Office A~enda Date Assil[ned to: twh 05113116 5131116 FINANCE Originator: Division Head: RECE~VfED 5/31/16 Council Dept. Head: 6/14/2016 Finance/Council ' MAY 2 4 2016 Prosecutor: lb~. O'S/1.3/u~ WHATCOM COUNTY Purchasing/Budget: 4(3~ 5/2-s/1/t? COUNCIL 1!-xecutive: ~ 1\)-yS·d,'-/-. !£:., TITLE OF Dddllt(ENT: Economic Development Investment Program- ED/ Board recommendation ATTACHMENTS: Memorandum; ED/ Program application from City ofBellingham; ED/ Board Meeting Notes from 417116; Rural Sales Tax Fund spreadsheet SEPA review required? ( ) Yes ( X ) NO Should Clerk schedule a hearing ? ( ) Yes (X ) NO SEPA review completed? ( ) Yes. (X ) NO Requested Date: SUMMARY STATEMENT OR LEGAL NOTICE LANGUAGE: (If this item is an ordinance or requires a public hearing, you must provide the language for use in the required public notice. Be specific and cite RCW or WCC as appropriate. Be clear in explaining the intent of the action.) The Economic Development Investment Board has reviewed a funding application from the City ofBellingham and is making the following recommendation for adoption by the County Council: Approval ofthe City ofBellingham's request for ED/ funding in the amount of$1.1-million in support of the Waterfront project: as a grant in the amount of $1.1-million. COMMITTEE ACTION: COUNCIL ACTION: 5/31/2016: Approved 5/31/2016: Held in COuncil 6-1 Weimer opposed Related County Contract #: Related File Numbers: Ordinance or Resolution Number: Please Note: Once adopted and signed, ordinances and resolutions are available for viewing and printing on the County's website at: www.co.whatcom.wa.us/council. SUPPLEMENTARY PAPERWORK PROVIDED FOR JUNE 14, 2016 BELLINGHAM WATERFRONT EDI APPLICATION TIMELINE 1) January 29, 2007 Economic Development Council submits City of Bellingham's EDI funding application to Whatcom County Executive Office. Application is titled New Whatcom Redevelopment Project Master Plan & Environmental Impact Study. Funding request is for a $1.1M EDI grant. 2) February 9, 2007 The City of Bellingham passes resolution #2007-01 to authorize the submission of an EDI application to the County to partially fund the consulting services cost of the Waterfront Development Effort. It was further explained that the County Council and then Executive Kremen encouraged the City to seek funding through the County's Economic Development Investment (EDI) program in lieu ofthe Local Infrastructure Financing Tool {LIFT) program. 3) February 26, 2007 The EDI Board unanimously voted (11-0) to approve funding to the City of Bellingham in the amount of a $1.1M grant. The recommendation set aside $1.1 Mover the next 5 years to support waterfront development efforts. Specifically, the EDI board voted to endorse a position that within five years a total of $1.1 million dollars of EDI funding be granted to the City of Bellingham to support this project. The County Executive asked that the motion include that the funding will be up to at least $1.1 million of $100% grant money over five years. He then called for a vote on the motion, which was taken. The motion passed unanimously 11-0. 4) March 13, 2007 The EDI Board recommendations made during the 02.26.07 EDI meeting are presented to County Council. Malcolm Fleming, City of Bellingham Chief Finance Officer presented the Waterfront project to the Finance Committee. At the close of the presentation, committee discussion ensued related to the overall project. Finance Committee voted in support of the EDI funding recommendation 2-1 (Crawford opposed). At the evening council meeting additional questions were raised about the funding request. Councilman Crawford explained this was the first time they were asked to designate a set-aside amount of money, subject to further requests from the City. He then moved to approve the request. The council raised questions about the set-aside process. It was explained that the Council will approve the expenditure from this Bellingham Waterfront EDI Application Timeline Page 1 funding, in the form of future applications for activities associated with the waterfront development project. The motion carried 6-1 (Crawford opposed). 5) November 17, 2011 Chief Administrative Officer, David Webster submitted a letter of request to the County Executive asking the County to extend the grant funding commitment for an additional two years through 2014. 6} November 22, 2011 The EDI Board met and after careful deliberation voted to formally approve the City's request to extend the $1.1 million grant set-aside for three years through February 2015. The County then submitted a letter to the City on December 2, 2011 formally extending the grant set-aside through February 2015. 7} October 1, 2014 Whatcom County submits letter to Executive Coordinator, Brian Heinrich advising him that the EDI Board voted unanimously in favor of a motion to extend the EDI commitment of $1.1 million to the City of Bellingham through December, 2015. The Board Chair and County Executive also requested that the city of Bellingham be prepared to present a report to the EDI Board at the next meeting and by no later than December 31, 2015. The report was to include details of a project which has been identified which will match the requirement for use of the EDI grant funds. 8} February 22, 2016 The City submits an EDI project application for the Granary/Laurel Street improvements made for the Waterfront Development project. 9} April 7, 2016 The City presents the Granary/Laurel Street project to the EDI Board. A motion was made by Barry Buchanan and seconded by Jack Louws to support the City of Bellingham application in the amount of a $1,100,000 grant and recommendation to the Whatcom County Council. A vote was taken and the motion passed unanimously 10-0. 10) May 31, 2016 The EDI Funding recommendation was presented to County Council for review and consideration. Finance Committee recommended holding the recommendation n committee for further review. Bellingham Waterfront ED! Application Timeline Page 2 Bellingham Waterfront ED! Application Timeline Page 3 RURAL SALES TAX FUND (EDI/PUBLIC UTILITIES IMPROVEMENT FUND) as of 5/9/16 Years Unbudgeted 2008 2009 2010 2011 2012 2013 2014 2015 Profd 2016 Commitments Totals Sources Sales Tax Revenue 3,097,383 2,771,621 2,768,821 2,867,602 3,048,640 3,247,488 3,325,481 3,484,042 3,572,428 - 45,886,265 Loan Principal Payments 87,900 218,922 252,178 255,961 259,801 609,683 964,927 369,913 815,474 - 3,885,627 Interest Earnings 53,855 68,369 65,085 61,302 57,462 62,066 69,207 52,161 112,821 - 624,828 Unrealized Loss & Prior Period Adj - -- - (53,930) 31,923 (4,666) - - (26,673) Total Sources 3,239,138 3,058,912 3,086,084 3,184,865 3,365,903 3,865,307 4,391,538 3,901,450 4,500,723 - 50,420,047 Uses Cap Facility Expend & Commit (1 ,758,814) (345,486) (1 ,395,255) (2,777,427) (412,648) (1 ,539,891) (156,430) (1,114,751) (29,567) - (12,337,218) Grant Expend & Commitments (25,000) (340,931) (365,329) (333,467) (898,059) (392,974) (109,258) (3,283,242) (2, 138,500) (2,561 ,500) (15, 196,061) Loans & Loan Commitments - - (535,349) (1,150,865) (454,045) (49,342) (6,557,229) (4,300,000) (417,846) (18,161,371) Total Uses (1 ,783,814) (686,417) (1 ,760,585) (3,646,242) (2,461 ,571) (2,386,909) (315,030) (10,955,222) (6,468,067) (2,979,345) (45,694,650) Net Sources/Uses 1,455,324 2,372,495 1,325,499 (461,377) 904,332 1,478,398 4,076,508 (7 ,053, 772) (1,967,344) (2,979,345) 4,725,397 Projected Cash Balance 7,030,004 9,402,499 10,727,998 10,266,621 11,170,953 12,649,350 16,725,858 9,672,086 7,704,742 4,725,397 C:\Users\tschroed\Documents\Rural Sales with Commitments as of 5-9-HDRt\:ltflieiBld:fi!f!XI$Cl Change 6/2/2016 11:34 AM Whatcom County Rural Sales Tax Exceodit111:e Detail Cost Type of Actual Actual Actual Actual Actual Actual Actual Actual Budget Unbudgeted Center Description Activity 2008 2009 2010 2011 2012 2013 2014 2015 2016 Commitments Total 332100 Courthouse Exterior Capital Fa< 80,607.00 38,342.74 118,949.74 332100 State Street Bldg Acq & Improve. Capital Fa< 1,250,000.00 400,000.00 1,650,000.00 332100 CH fire alarm&Juvi roof transfer Capital Fa< 91,000.00 91,000.00 332100 Girard Street PB Capital Fa< 511,000.00 511,000.00 332120 Construction Management Capital Fa< 92.973.50 107,478.00 74,346.60 77,773.45 24.396.33 22,084.30 7,587.74 11,407.89 29.567.00 626,181.76 332200 CH Remodel- 2nd Floor Capital Fa< 64,920.00 332201 Glacier Restrooms Capital Fa< 19,627.74 332203 Hannegan Rd Signalization Capital Fa< 1,500,000.00 1,500,000.00 332204 Williamson Way Capital Fa< 30,349.14 95,144.36 125,493.50 332206 Civic Center Eval & Remodel Capital Fa< 700,000.00 1,430,725.91 204.662.00 44,100.00 2,379,487.91 332207 Data Center Generator Capital Fa< 15.207.62 170,973.87 21,767.60 207.949.09 332219 POB- ED Consortium Capital Fa< 100,000.00 100,000.00 332220 Fiber Optic Cable Capital Fa< 62.756.00 332235 Interim Jail Work Center Capital Fa< 1,654,000.16 332245 One Stop Shop Capital Fa< 388,051.02 332247 SBDC/Ctr for Econ Vitality Capital Fa< 30,800.00 100,000.00 130,800.00 332255 Kendall Comm Ctr/ E.