HomeMy WebLinkAboutDowntown Pasco Development (DPDA) - 2023 Funding AgreementDOWNTOWN PASCO DEVELOPMENT AUTHORITY
2023 FUNDING AGREEMENT
THIS AGREEMENT is made and entered into this I Srday JCknU of 2023, by
and between the City of Pasco, Washington, a Municipal Corporation, herein ter referred to as
"City," and the Downtown Pasco Development Authority, a non-profit Washington Corporation,
hereinafter referred to as "DPDA."
WHEREAS, the City Council desires to foster revitalization of the downtown business
area and created the Downtown Pasco Development Authority (RPDA) in December 2010 under
Ordinance No. 3985, with the expectation of providing funding commitments to permit the new
agency to establish operations and demonstrate its ability to fulfill the revitalization goals
enunciated in Ordinance No. 3985 and the DPDA Charter; and
WHEREAS, DPDA has received a certificate of incorporation from the State of
Washington as a non-profit corporation; and
WHEREAS, DPDA has organized and developed operating procedures, hired an
executive director, reinitiated public events in Downtown Pasco (Cinco de Mayo and the Fiery
Foods Festival), undertaken management of the Pasco Farmers Market and Pasco Commercial
Kitchen, became a 501(c)(3) organization, became a certified Washington State Main Street
organization, conducted several business education classes and Downtown clean-up events, and
participated in the development of a Peanuts Park and Pasco Farmers Market refurbishment, and
website revisions and "branding;" and
WHEREAS, DPDA has requested that City funding be made available to develop
resources to eventually reduce the amount of the City subsidy.
NOW THEREFORE, IN CONSIDERATION of the mutual covenants contained herein
and other valuable consideration, it is agreed as follows:
Section 1: DPDA Responsibilities
The DPDA shall conduct its activities and efforts that further the purpose of the DPDA as
identified in Pasco Ordinance 3985 and Article IV of its Charter to include but not be
limited to:
• Review of City plans and policies. The DPDA shall review existing and evolving City
landuse and capital improvement plans and policies affecting the Downtown Area and
advise the city of appropriate considerations. In 2023, this task includes the continuation
of specific collaboration and outreach efforts with the City regarding communication,
preparation and analysis efforts for a Downtown Master Plan.
DPDA 2023 Funding Agreement -I
• Promotional Events. The DPDA should conduct or implement an additional
promotional or special event in addition to Cinco de Mayo and the Fiery Foods Festival
that contributeto the success of the Downtown Area or otherwise advance the goals of
the DPDA.
• Financing Strategy. In collaboration with City staff and/or other professionals, the
DPDAwill develop a comprehensive inventory of public and private capital and
development financing tools and incentives that may be available to foster and support
its revitalization efforts. These should include tax credits or other incentives and
identification of infrastructure and other public capital investments that may be
necessary to support privateredevelopment projects.
Marketing. The DPDA shall develop a strategy to identify and promote economic
vitality ofthe Downtown Area including the opportunities associated withtheFarmer's
Market and Specialty Kitchen. The DPDA should develop strategies that facilitate
transition of restaurants to brick and mortar facilities. These strategies may include:
creation of a Downtown Calendar, quarterly business meetings for Downtown
businesses, restaurant recruitment for vacant oravailable properties and other similar
activities, develop and promote video and radio media that can be deployed
commercially or on social media.
Farmer's Market and Pasco Specialty Kitchen. The DPDA shall optimize the
opportunities associated with the Farmer's Market and Specialty Kitchen to increase
economic activity and promote recognition of the Downtown. Operation of these
facilities must be in accordance with the associated lease agreement.
In support of the above responsibilities as well as additional goals, the DPDA tasks for
2023 include:
• Participate and lead the process for reorganizing the DPDA;
• Implement a secure online database/knowledge management system;
• Continue efforts to train staff and board members on Open Public Meetings Act, Public
Records Act, and retain a Certified Public Records Officer;
• Build out Design, Economic Vitality, Outreach, and Promotion committees in
accordance with Washington Main Street;
• Develop a fundraising strategy and plan for the Main Street Tax Incentive Program;
• Execute actions in the Downtown Master Plan in collaboration with City of Pasco
• Organize quarterly downtown business and property owner meetings;
• Organize, finance and manage Cinco De Mayo Festival;
• Organize, finance and manage Fiery Foods Festival;
• Organize and manage the Pasco Farmers Market each Saturday from May through
October;
• Manage the operations of the Pasco Specialty Kitchen;
• Provide a scholarship grant program consistent with the DPDA's 501(c)(3) status,
DPDA 2023 Funding Agreement - 2
• Continue recruitment for vacant downtown business space in combination with the
building owners;
• Create and maintain a Downtown Property Inventory;
• Business assistance, recruitment, development, and engagement activities; and
Reports: The DPDA shall present monthly report during City Council workshops on
Farmers Market programming, downtown economic development activities and PSK client
status. A formal presentation to the City Council by the DPDA board shall be given on or
before December 1 each year. The DPDA shall deliver quarterly written status and
financial reports to the Pasco City Manager along with informal quarterly updates
presented to the Pasco City Council detailing the activities, accomplishments, and financial
status of the DPDA.
Section 2: City Responsibilities
The City of Pasco will remit to DPDA or its designated bank:
Check one:
❑ Option A: $60,000 per quarter by the 10th day of the first month of said quarter
as provided under this Agreement, but not to exceed a total of $240,000 without
prior written authorization by the City; or
❑ Option B: $25,000 per quarter by the 10th day of the first month of said quarter
as provided under this Agreement, but not to exceed a total of $100,000 without
prior written authorization by the City; or
J
Option C: Fixed Lump Sum: A total of $
day of the first month of the term of this Agreement.
by the 10'h
® Option D: $120,000 initial payment on January 1 for the first six months of the
year with subsequent conditional payments approved by council of up to $60,000
paid quarterly for quarters 3 and 4.
Section 3: Joint Responsibilities
Financial Oversight/Audit: As a condition of funding, Downtown Pasco Development
Authority (DPDA) staff and City of Pasco finance staff will meet to review DPDA financial
processing and internal control procedures. The purpose of this process and reporting audit
at DPDA site is to establish mechanisms that provide sound financial activity tracking and
documentation, security of funds and a framework of internal controls for stewardship of
City of Pasco funding. As part of this review, it may be deemed necessary to make changes
to DPDA policy and procedure. Upon the provision of funding support to DPDA, recurring
meetings to review fiscal operations, financial reporting and supporting documentation will
be held. It is anticipated that meetings will be weekly, bi-weekly and/or monthly. Upon
establishment and successful audit of a sound, consistently followed process meetings may
DPDA 2023 Funding Agreement - 3
be less frequent, moving from weekly to monthly. In no circumstance, will reporting be
provided to the City of Pasco Finance Department less than monthly.
Section 4: Term
This agreement shall be effective m , 202, and shall
expire on December 31, 2023; provided, Wever, either party may terminate the
agreement with at least 180 days written noticedelivered to the President of the DPDA or
the Pasco City Manager. It is further provided that thisagreement is predicated on the
DPDA maintaining its Main Street status for calendar year 2023, and the City's
contribution, as described in Section 2, is deemed eligible for Main Street tax credits by the
State Department of Revenue. Should the DPDA become ineligible for Main Street tax
credits, this Agreement may be returned to the Pasco City Council for determining its
continuation.
The agreement may be extended up to 12 additional months, by mutual agreement of the
parties, subject to budget authority of the City Manager.
Section 5: General Provisions
For the purpose of this Agreement, time is of the essence. Failure of the DPDA to either
provide the accounting or remit disallowed funds as required herein shall constitute a
breach of this agreement. The remedies available to the City shall include but not be limited
to, return of all funds delivered to the DPDA and denial of the right of the DPDA to apply
for any future funding.In the event of a dispute regarding the enforcement, breach, default
or interpretation of this Agreement, the parties shall first meet in a good faith effort to
resolve such dispute. In the event the dispute cannot be resolved by agreement of the
parties, said dispute shall be resolved by arbitration pursuant to RCW 7.04A, as amended,
and the Mandatory Arbitration Rules (MAR); venue shall be placed in Franklin County,
Washington, the laws of the State of Washington shall apply; and the prevailing party shall
be entitled to its reasonable attorney fees and costs.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed
this __q day of a , 202.
CITY OF PASCO, WASHINGPN
Adam Lincoln, InteridCity Manager
DPDA 2023 Funding Agreement - 4
DOWNTOWN PASCO
DEVELOPMENTAUTHORITY
Gabr' 1 Portugal, resident
RESOLUTION NO. 4291
A RESOLUTION OF THE CITY OF PASCO, WASHINGTON,
AUTHORIZING THE INTERIM CITY MANAGER TO EXECUTE THE 2023
FUNDING AGREEMENT WITH THE DOWNTOWN PASCO
DEVELOPMENT AUTHORITY.
WHEREAS, the Pasco City Council established the Downtown Pasco Development
Authority (DPDA) by Ordinance No. 3985, on December 20, 2010, for the purpose of revitalizing
the downtown City core making it a strong and vibrant core for economic stability within the
community and that provides a source of services to the Pasco citizens, as well as the greater Tri -
Cities area; and
WHEREAS, since that time, the City of Pasco has supported the DPDA in a variety of
ways, through lease agreements of City -owned property, grants such as the Community
Development Block Grant (CDBG), and direct financial support through formal funding
agreements since 2012; and
WHEREAS, the Funding Agreement includes the City's expectations of the DPDA, which
includes but is not limited to annual work plans and budgets, as well as annual reports to the City
Council reporting their accomplishments for the year and goals for the following year; and
WHEREAS, the City Council of the City of Pasco, Washington, has after due
consideration, determined that it is in the best interest of the City of Pasco to enter into a 2023
Funding Agreement with the DPDA for the services, benefiting the downtown businesses located
in Pasco, as well as providing economic development within Pasco, as detailed in the Funding
Agreement, attached hereto, and incorporated herein as Exhibit A.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO,
WASHINGTON, DO RESOLVE AS FOLLOWS:
That the City Council of the City of Pasco approves the terms and conditions of the Funding
Agreement with the DPDA, as attached hereto and incorporated herein as Exhibit A.
Be It Further Resolved that the Interim City Manager of the City of Pasco, Washington,
is hereby authorized, empowered, and directed to execute said Agreement on behalf of the City of
Pasco; and to make minor substantive changes as necessary to execute the Agreement.
Resolution — 2023 DPDA Funding Agreement - I
PASSED by the City Council of the City of Pasco, Washington this 51 day of December,
2022.
Blanche Barajas
Mayor
ATTEST:
Debra Barham, CMC
City Clerk
Resolution — 2023 DPDA Funding Agreement - 2
APPROVED AS TO FORM:
Kerr FeW.,-:6 i Law, PLLC
City Attbrtieys
DOWNTOWN PASCO DEVELOPMENT AUTHORITY
2023 FUNDING AGREEMENT
THIS AGREEMENT is made and entered into this day of 2023, by
and between the City of Pasco, Washington, a Municipal Corporation, hereinafter referred to as
"City," and the Downtown Pasco Development Authority, a non-profit Washington Corporation,
hereinafter referred to as "DPDA."
WHEREAS, the City Council desires to foster revitalization of the downtown business
area and created the Downtown Pasco Development Authority (DPDA) in December 2010 under
Ordinance No. 3985, with the expectation of providing funding commitments to permit the new
agency to establish operations and demonstrate its ability to fulfill the revitalization goals
enunciated in Ordinance No. 3985 and the DPDA Charter; and
WHEREAS, DPDA has received a certificate of incorporation from the State of
Washington as a non-profit corporation; and
WHEREAS, DPDA has organized and developed operating procedures, hired an
executive director, reinitiated public events in Downtown Pasco (Cinco de Mayo and the Fiery
Foods Festival), undertaken management of the Pasco Farmers Market and Pasco Commercial
Kitchen, became a 501(c)(3) organization, became a certified Washington State Main Street
organization, conducted several business education classes and Downtown clean-up events, and
participated in the development of a Peanuts Park and Pasco Farmers Market refurbishment, and
website revisions and "branding;" and
WHEREAS, DPDA has requested that City funding be made available to develop
resources to eventually reduce the amount of the City subsidy.
NOW THEREFORE, IN CONSIDERATION of the mutual covenants contained herein
and other valuable consideration, it is agreed as follows:
Section 1: DPDA Responsibilities
The DPDA shall conduct its activities and efforts that f n-ther the purpose of the DPDA as
identified in Pasco Ordinance 3985 and Article IV of its Charter to include but not be
limited to:
• Review of City plans and policies. The DPDA shall review existing and evolving City
landuse and capital improvement plans and policies affecting the Downtown Area and
advise the city of appropriate considerations. In 2023, this task includes the continuation
of specific collaboration and outreach efforts with the City regarding communication,
preparation and analysis efforts for a Downtown Master Plan.
DPDA 2023 Funding Agreement - 1
• Promotional Events. The DPDA should conduct or implement an additional
promotional or special event in addition to Cinco de Mayo and the Fiery Foods Festival
that contributeto the success of the Downtown Area or otherwise advance the goals of
the DPDA.
• Financing Strategy. In collaboration with City staff and/or other professionals, the
DPDA will develop a comprehensive inventory of public and private capital and
development financing tools and incentives that may be available to foster and support
its revitalization efforts. These should include tax credits or other incentives and
identification of infrastructure and other public capital investments that may be
necessary to support privateredevelopment projects.
• Marketina. The DPDA shall develop a strategy to identify and promote economic
vitality of the Downtown Area including the opportunities associated with the Farmer's
Market and Specialty Kitchen. The DPDA should develop strategies that facilitate
transition of restaurants to brick and mortar facilities. These strategies may include:
creation of a Downtown Calendar, quarterly business meetings for Downtown
businesses, restaurant recruitment for vacant oravailable properties and other similar
activities, develop and promote video and radio media that can be deployed
commercially or on social media.
• Farmer's Market and Pasco Specialty Kitchen. The DPDA shall optimize the
opportunities associated with the Farmer's Market and Specialty Kitchen to increase
economic activity and promote recognition of the Downtown. Operation of these
facilities must be in accordance with the associated lease agreement.
In support of the above responsibilities as well as additional goals, the DPDA tasks for
2023 include:
• Participate and lead the process for reorganizing the DPDA;
• Implement a secure online database/knowledge management system;
• Continue efforts to train staff and board members on Open Public Meetings Act, Public
Records Act, and retain a Certified Public Records Officer;
• Build out Design, Economic Vitality, Outreach, and Promotion committees in
accordance with Washington Main Street;
• Develop a fundraising strategy and plan for the Main Street Tax Incentive Program;
• Execute actions in the Downtown Master Plan in collaboration with City of Pasco
• Organize quarterly downtown business and property owner meetings;
• Organize, finance and manage Cinco De Mayo Festival;
• Organize, finance and manage Fiery Foods Festival;
• Organize and manage the Pasco Farmers Market each Saturday from May through
October;
• Manage the operations of the Pasco Specialty Kitchen;
DPDA 2023 Funding Agreement - 2
• Provide a scholarship grant program consistent with the DPDA's 501(c)(3) status,
• Continue recruitment for vacant downtown business space in combination with the
building owners;
• Create and maintain a Downtown Property Inventory;
• Business assistance, recruitment, development, and engagement activities; and
Reports: The DPDA shall present monthly report during City Council workshops on
Farmers Market programming, downtown economic development activities and PSK client
status. A formal presentation to the City Council by the DPDA board shall be given on or
before December 1 each year. The DPDA shall deliver quarterly written status and
financial reports to the Pasco City Manager along with informal quarterly updates
presented to the Pasco City Council detailing the activities, accomplishments, and financial
status of the DPDA.
Section 2: City Responsibilities
The City of Pasco will remit to DPDA or its designated bank:
Check one:
❑ Option A: $60,000 per quarter by the 10' day of the first month of said quarter
as provided under this Agreement, but not to exceed a total of $240,000 without
prior written authorization by the City; or
❑ Option B:$25,000 per quarter by the 10' day of the first month of said quarter
as provided under this Agreement, but not to exceed a total of $100,000 without
prior written authorization by the City; or
❑ Option C: Fixed Lump Sum: A total of $ by the 10`t'
day of the first month of the term of this Agreement.
® Option D: $120,000 initial payment on January 1 for the first six months of the
year with subsequent conditional payments approved by council of up to $60,000
paid quarterly for quarters 3 and 4.
Section 3: Joint Responsibilities
Financial Oversight/Audit: As a condition of funding, Downtown Pasco Development
Authority (DPDA) staff and City of Pasco finance staff will meet to review DPDA financial
processing and internal control procedures. The purpose of this process and reporting audit
at DPDA site is to establish mechanisms that provide sound financial activity tracking and
documentation, security of funds and a framework of internal controls for stewardship of
City of Pasco funding. As part of this review, it may be deemed necessary to make changes
to DPDA policy and procedure. Upon the provision of funding support to DPDA, recurring
DPDA 2023 Funding Agreement - 3
meetings to review fiscal operations, financial reporting and supporting documentation will
be held. It is anticipated that meetings will be weekly, bi-weekly and/or monthly. Upon
establishment and successful audit of a sound, consistently followed process meetings may
be less frequent, moving from weekly to monthly. In no circumstance, will reporting be
provided to the City of Pasco Finance Department less than monthly.
Section 4: Term
This agreement shall be effective 202 , and shall
expire on December 31, 2023;provided, however, either party may terminate the agreement
with at least 180 days written noticedelivered to the President of the DPDA or the Pasco
City Manager. It is further provided that thisagreement is predicated on the DPDA
maintaining its Main Street status for calendar year 2023, and the City's contribution, as
described in Section 2, is deemed eligible for Main Street tax credits by the State Department
of Revenue. Should the DPDA become ineligible for Main Street tax credits, this
Agreement may be returned to the Pasco City Council for determining its continuation.
The agreement may be extended up to 12 additional months, by mutual agreement of the
parties, subject to budget authority of the City Manager.
Section 5: General Provisions
For the purpose of this Agreement, time is of the essence. Failure of the RPDA to either
provide the accounting or remit disallowed funds as required herein shall constitute a
breach of this agreement. The remedies available to the City shall include but not be limited
to, return of all funds delivered to the DPDA and denial of the right of the DPDA to apply
for any future funding. In the event of a dispute regarding the enforcement, breach, default
or interpretation of this Agreement, the parties shall first meet in a good faith effort to
resolve such dispute. In the event the dispute cannot be resolved by agreement of the
parties, said dispute shall be resolved by arbitration pursuant to RCW 7.04A, as amended,
and the Mandatory Arbitration Rules (MAR); venue shall be placed in Franklin County,
Washington, the laws of the State of Washington shall apply; and the prevailing party shall
be entitled to its reasonable attorney fees and costs.
IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed
this day of , 202
CITY OF PASCO, WASHINGTON DOWNTOWN PASCO
DEVELOPMENTAUTHORITY
Adam Lincoln, Interim City Manager Gabriel Portugal, President
DPDA 2023 Funding Agreement - 4