HomeMy WebLinkAboutHAEIFC - Grant Agreement - Funding Aid for Lift Station - SR12 & Kahlotus Hwy GRANT AGREEMENT
Hanford Area Economic Investment Fund Committee ( " HAEIFC " ) is authorized by RCW
43 . 31 . 222 and RCW 43 . 31 . 428 to make grants to political subdivisions to assist them in
financing certain projects . This instrument is intended to reflect the final terms and
conditions of financial assistance to the City of Pasco hereafter referred to as the
" Contractor" , To aid in financing a lift station at SR 12 and the Kahlotus Highway to
provide sewer service along the US 12 Highway corridor , as described in the application
hereinafter collectively referred to as the " Project" . Assistance consists of a grant in the
amount of $75 , 000 . 00 .
HAEIFC and the Contractor hereby give final approval to this contract in its entirey .
This contract consists of the following documents , which are incorporated herein by this
reference :
• Attachment # 1 — Application Form
• Attachment #2 — General Conditions and Provisions
• Attachment #3 — Ordinance or Resolution
• Attachment #4 — Attorney' s certificate
This Contract shall be approved by the Contractor through its governing body and signed
by the official representative of that body and returned to HAEIFC by , 2011 .
HANFORD AREA ECONOMIC CONTRAC R
INVESTMENT FUND COMMITTEE
By : By :
Title : Title : Z'
Date : Date : �l
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2011
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HANFORD AREA ECONOMIC INVESTMENT FUND
INFRASTRUCTURE GRANT APPLICATION
Please provide complete and concise responses to the issues listed on this two-page application . You may expand or collapse the fields
under each question as needed for your responses but the entire application , including any attachments, may not exceed four pages .
Government Applicant City of Pasco
Contact Person : Rick White Title : Community and Economic Development Director
Telephone : 509 . 545 . 3441 E-mail : whiter(a). pasco-wa . gov
Address : 525 N . 3rd Avenue
Project Title Kahlotus Highway Sewer pump station
1 . Project Description : A lift station at SR 12 and the Kahlotus Highway to provide sewer service along the US 12 Highway
corridor.
2 . Project Status : Start Date : September 2011 Completion Date : January 2012
❑ Concept stage Z Planning complete ❑ Engineering complete
Explanation : Existing agricultural product processors will expand if the process water can be pretreated so it can be
sent to the city's sewer treatment plant. , and redevelopment in this area is hindered by the lack of sewer service .
3 . Project Funding : Total Project Cost: $330 , 000 Grant requested : $ 100 , 000
List all anticipated sources of funds ( not including HAEIFC) and indicate if the funds have been committed , for each
source :
Source Funds Committed ?
City' s Sewer Utility X Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
❑ Yes ❑ No
1
List all anticipated uses of funds : Engineering and construction of the pump station .
4 . Project Matching Funds — Available : $230 , 000 * Not Available : $ Source : City Sewer Utility
*Attach letter of commitment
5 . Please provide a detailed description of the scope of work for the project including specific construction components , if
applicable .
The project involves construction of a pump station and associated piping to enable a force main to connect to a gravity
flow piping network from the area to the City's sewer treatment plant.
PROJECT IMPACT
1 . Explain how the project addresses regional and local economic development priorities :
A concerted and successful effort was made to establish an industry cluster related to food production and processing in
Pasco "Value Added Agriculture Products and Processes" (VAAPP) is a designated target of TRIDECIs industrial
recruitment efforts This industry cluster in this area has proven locational advantages for private sector investment, and
the additional sewage capacity together with the existing and improved transportation system continues to offer private
industry and commercial interests market based advantages in production and distribution .
2 . How does the project support the location of new industry in your community or region and /or expand existing industry?
Describe targeted industry sector:
New industry needs sewer service . The project will also free up lands for new commercial development within the
footprint for the new SR 12/Tank Farm interchange . There is a strong and growing food industry in this region located on
both sides of SR 395 and the north side of SR 12 . The expansion of sewer capabilities will leverage existing public and
private investments for this industry sector and allow its expansion to continue . The food growing and processing industry
is considered " recession proof' and has continued to grow in all economic cycles .
3 . How does the project support other high priority project(s) and/or economic strategies in your community or region ?
This application leverages significant public investment in transportation facilities and utilities with the successful
development of the Pasco Processing Center, the largest manufacturing job creator over the past quarter century in
Franklin County Support of this industry cluster is key to the future of the Tri- Cities . Capital investments in this industry
cluster continue to improve and enhance recent success of these industries . The project for the sewer pump station will
allow primary and secondary businesses to locate in this region .
48 Employment Impact: Provide an estimate of the number and type of jobs created both long term and short term and
describe what company or industries will be creating the jobs . Describe the number and type of jobs retained , if
applicable . Minimum of 1 FTE job within 5 years for each $ 50 , 000 in HAEIF grant .
Estimated 10 short term iobs for construction and 50 — 100 jobs created by expansion of an existing agriculture product
processing plant and the increase in other activities as a result of sewer availability .
5 . Impact on Private Capital Investment: Describe the impact of industries anticipated to expand or locate following project
completion . Include company name (or type of industry/business) and the timing of investment .
Construction of the pump station is expected to enable an existing agriculture processing plant to double shift and
increase production capability at least two-fold . Investment in expansion is expected within 2-3 years .
2
6 . Briefly describe the applicant's capability to administer, implement and attract private sector investments to the project.
The City of Pasco has demonstrated capacity to complete economic development projects timely and successfully . "The
Pasco Processing Center" , aided by an EDA grant for sewer lines in 1995 , successfully attracted more than $75 , 000 , 000
in private investment capital within its first 5 years and now contains more than $ 130 , 000 , 000 of investment and nearly
1 , 100 jobs .
Attach resolution authorizing this application .
Declaration : I HEREBY CERTIFY THAT THE INFORMATION GIVEN IN THIS APPLICATION TO THE HANFORD AREA ECONOMIC
INVESTMENT FUND COMMITTEE IS TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE AND BELIEF .
Rick White , Director
Community and Economic Development
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• CITY MANAGER (509) 545 - 3404 / Fax (509) 545 = 3403
P. O . Box 293 , (525 North 3rd Avenue) Pasco , Washington 99301 / www. pasco - wa . gov
May 23 , 2011
Art Tackett , Manager
Community & Economic Development
Benton-Franklin Council of Governments
PO Box 217
Richland, WA 99352
Subject : 2011 HAEFIC Grant Application
Kahlotus Highway Sewer Pump Station
Dear Art :
I am writing to confirm that the City of Pasco can provide the remaining Planning and
Construction funds for the Kahlotus Highway Sewer Pump Station. The funds ( $ 230 , 000) are
available from the City ' s Utility Fund .
If you have any questions , please call .
Sincere' ,
f
h
Gary Cru ch ld
City Manager
I
GC/RW/sa
1
Attachment 2
CONDITIONS AND PROVISIONS
The following articles shall constitute General Conditions and Provisions to the Grant
Agreement dated 2011
Article 1 . DEFINITIONS
a ) " HAEIFC " shall mean the Hanford Area Economic Investment Fund
Committee .
b ) " Contractor" shall mean the City of Pasco .
c) The "Agreement" shall consist of the application , the Grant Agreement ,
these Conditions and Provisions , the Resolution or Ordinance
accepting HAEIFC assistance , and the Attorney' s Certificate , and shall
include all amendments to the documents .
d ) This Agreement shall be construed for all purposes as a contract
entered into pursuant to the laws of the State of Washington
Article 2 . EXECUTION , CORRELATION AND INTENT OF DOCUMENTS
The contract documents are complementary , and what is called for by one shall be
binding as if called for by all .
Article 3 . PERMITS , LAWS AND REGULATIONS
All permits and licenses necessary for the prosecution of the Project as defined in the
Grant Agreement shall be secured and paid for by the Contractor . Easements for
permanent structures or permanent changes in existing facilities shall likewise be
secured and paid for by the Contractor .
The Contractor shall give all notices and comply with all laws , ordinances , rules and
regulations bearing on the conduct of the project work .
The Contractor must evidence satisfactory completion of all necessary permit
processes .
The Contractor shall comply with all relevant local , state and federal regulations .
CONDITIONS AND PROVISIONS - 1
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Article 4 . COMPLETION OF CONTRACT ARRANGEMENTS
The Contractor must complete contract requirements within nine ( 9 ) months , or
other time designated by HAEIFC . At its discretion , HAEIFC may grant a written
request by the Contractor to extend the deadline for completing contract
requirements .
Article 5 . DISBURSEMENT OF FUNDS ( check option 1 or 2 )
OPTION 1 ( advance of funds )
The precise terms of disbursement shall be as follows :
No funds will be disbursed for construction expenses until a bid is awarded for the
Project .
The initial installment will be payable upon HAEIFC ' s receipt and acceptance of
documentation acceptable to HAEIFC certifying the project starting date , and the
amounts that will be due and payable by the Contractor within ninety ( 90 ) days of the
request for the initial installment .
Documentation of funds expended will be required on an advance of funds request
within ninety ( 90 ) days of the request . In the event the advanced funds have not
been expended within ninety ( 90 ) days , a written explanation as to why funds have
not been used and a timetable as to when funds are anticipated to be expended shall
be submitted no later than ninety ( 90 ) days from disbursement .
Ten ( 10 ) percent of funds will be retained by HAEIFC on all advance requests until
documentation of funds expended for the full amount is received .
All other payments shall be made on a reimbursement basis only upon HAEIFC ' s
receipt and acceptance of documentation acceptable to HAEIFC and a recap of
expenditures providing a breakdown of funds disbursed in the previous installment
and documentation of funds expended .
OPTION 2 X ( reimbursement of funds )
The precise terms of disbursement shall be as follows :
Funds will be disbursed on a reimbursable basis only .
The initial installment shall be payable upon HAEIFC Is receipt and acceptance of
documentation certifying the project starting date and appropriate certification of the
CONDITIONS AND PROVISIONS - 2
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Y,
amounts paid to date . The second and any additional payments will be made in a
similar manner and will include a recap of expenditures providing a breakdown of
funds disbursed in the previous installment .
BOTH OPTIONS :
Total funds disbursed shall not exceed actual amounts required for the project
described or the amount of the HAEIFC award , whichever is the lesser. All funds
other than HAEIFC Is must be disbursed prior to HAEIFC funds , except where
required on a matching basis by other federal or state programs .
HAEIFC will not recognize any requests for Project cost overruns . No payments will
be made except as expressly provided herein . Eligible Project expenditures consist
of those items contained in Attachment # 1 . .
Article 6 . PROJECT PERFORMANCE
The Contractor' s performance shall commence within one hundred twenty ( 120 ) days
after execution of this Agreement , unless otherwise specified in these Special
Conditions and Provisions . Extension may be considered upon appropriate written
request . Any changes are to be incorporated into this document as additions or
amendments to the Special Conditions and Provisions .
If at any time during the term of this Agreement HAEIFC determines that project
performance is unsatisfactory , including , but not limited to : ( a ) defective work not
remedied , or ( b ) a reasonable doubt that the Agreement can be completed for the
balance then unpaid , HAEIFC reserves the right to withhold payments until the
problem is remedied or to exercise its rights of termination under Article 15 of this
Agreement .
Article 7 . CONTRACTOR SHALL CONTINUOUSLY MAINTAIN PROTECTION OF
PROJECT WORK AND PROPERTY AT CONTRACTOR' S RISK
The Contractor shall continuously maintain adequate protection of all the project work
from damage and shall protect the property from injury or loss arising in connection
with this Agreement . The entire work of the Contractor shall be at the sole risk of the
Contractor . The Contractor may elect to secure fire , extended coverage and
vandalism insurance or all -risk insurance to cover the project work during the course
of construction .
The Contractor shall take all necessary precautions for the safety of employees
working on the project , and shall comply with all applicable provisions of federal ,
state and local safety laws and building codes to prevent accidents or injuries to
persons , on , about , or adjacent to the premises where the work is being performed .
CONDITIONS AND PROVISIONS - 3
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Article 8 . ACCESS TO WORK AND RECORDS
All property , facilities , and records developed pursuant to this Agreement shall be
available for inspection upon request during regular business hours by HAEIFC or its
authorized representative . All records supporting every request for payment shall be
maintained in a manner which will provide an audit trail to the expenditures . Copies
of records shall be furnished to HAEIFC immediately upon request . This paragraph
shall be included in any and all subcontracts let by the Contractor under this
Agreement .
Article 9 . INDEMNIFICATION
The Contractor shall defend , protect , and hold harmless HAEIFC or any HAEIFC
employee from all claims , suits , and or actions arising from any damage caused ,
negligent act , or omission of the Contractor or any authorized subcontractor , or any
employees or agents of either while performing this Agreement .
Article 10 , DISPUTE RESOLUTION
Except as otherwise provided in this Agreement , when a bona fide dispute arises
between the parties and it cannot be resolved through discussion and negotiation ,
either party may request a dispute hearing . The parties shall select a dispute
resolution team to resolve the dispute . The team shall consist of a representative
appointed by HAEIFC , a representative appointed by the Contractor , and a third party
mutually agreed upon by both parties . The team shall attempt , by majority vote , to
resolve the dispute . The parties agree that this dispute process shall precede any
action in a judicial or quasi judicial tribunal .
Article 11 . GOVERNING LAW AND VENUE
The Agreement shall be construed and enforced in accordance with , and the validity
and performance hereof shall be governed by , the laws of the State of Washington .
Venue of any suit between the parties arising out of this Agreement shall be the
Superior Court of Franklin County , Washington ,
Article 12 . NONDISCRIMINATION
During the performance of this Agreement , the Contractor shall comply with all
applicable federal and state nondiscrimination laws , regulations and policies .
In the event of the Contractor' s noncompliance or refusal to comply with any
nondiscrimination law , regulation , or policy , this Agreement may be rescinded ,
canceled or terminated in whole or in part . The Contractor shall , however , be given a
CONDITIONS AND PROVISIONS - 4
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reasonable time in which to cure this noncompliance . Any dispute may be resolved
in accordance with the " Disputes" procedure set forth herein .
Article 13 . CONTINGENCIES
The duty of HAEIFC to approve disbursement of funds pursuant to this Agreement is
contingent upon strict compliance by the Contractor with the terms of this Agreement .
Article 14 . PERFORMANCE REPORTING
The Contractor shall submit progress reports as required by HAEIFC . The
Contractor shall also report , in writing any problems , delays , or adverse conditions
which will materially affect the ability to meet project objectives , time schedules , or
work units by the established time period . This disclosure shall be accompanied by a
statement of the action taken or contemplated and any HAEIFC assistance needed
to resolve the situation .
Within forty-five ( 45) days of project completion or whenever HAEIFC project
assistance is terminated , the Contractor shall submit a project completion report to
HAEIFC , signed by the Contractor' s responsible party , which shall include an
accounting of all expenditures , a description of work accomplished , further refinement
of private sector permanent employment impacts , etc . If the Project is not completed ,
the report shall contain an estimate of the percentage of completion , and shall
contain a final accounting summarizing all expenditures not previously reported and
shall include an overall summary for the entire project .
After submission of the project completion report , the Contractor shall continue , as
required , or for up to five ( 5 ) years , to provide updates on the economic impact of the
Project . The updates shall be in a format acceptable to HAEIFC and describe , but
not be limited to , the private sector employment and investment activity resulting from
the project .
Article 15 , TERMINATION
HAEIFC may require strict compliance by the Contractor with the terms of this
Agreement , including but not limited to , the requirements of the applicable statutes
incorporated in this Agreement , and with the representations of the Contractor in its
application for a grant as finally approved by HAEIFC .
Upon written notice to the Contractor , all obligations of HAEIFC under this Agreement
may be suspended or canceled at the option of HAEIFC if any of the following occur :
CONDITIONS AND PROVISIONS - 5
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a ) The Contractor has failed to make satisfactory and reasonable progress
to complete the Project , or HAEIFC concludes it will be unable to
complete the Project or any portion of it .
b ) The Contractor has either made misrepresentations in its application or
in any other information furnished to HAEIFC in connection with the
Project , which misrepresentations would have provided a basis upon
which the application would have otherwise been rejected .
Upon written notice to the Contractor , HAEIFC or its staff may suspend , or may
terminate , the obligation to provide funding to the Contractor under this Agreement in
the event of any breach or anticipatory failure by the Contractor to assure
performance of any of the obligations under this Agreement , including the probable
failure to occur of all or any of the private development or expansion which justified
the project . HAEIFC may at its absolute discretion , provide a reasonable time for
such defect to be cured , including allowing the Contractor to find a satisfactory
replacement in private development . Any such replacement must be approved by
HAEIFC .
In the event that any portion of the grant amount has been paid to the Contractor
under this Agreement at the time of breach , or failure of the Contractor to
satisfactorily perform or failure of the private development to occur , HAEIFC may
require that the full amount of the grant , or a portion thereof, be repaid within a period
specified by HAEIFC not less than ninety ( 90 ) days following demand .
Article 16 , RESTRICTIONS ON CONVERSION OF FACILITY TO OTHER USES
The Contractor shall not convert any property or facility acquired or developed
pursuant to this Agreement to uses other than those for which HAEIFC assistance
was originally approved for a period of 25 years without the prior written approval of
HAEIFC . If HAEIFC no longer exists at the time of the proposed conversion , such
written approval must be obtained from the Benton -Franklin Council of Governments .
In the event that the Contractor converts any such property or facility to an
unapproved use , the Contractor shall pay to HAEIFC all funds disbursed under this
Agreement with interest in full upon demand .
Article 17 , NONWAIVER OF HAEIFC RIGHTS
HAEIFC ' s failure to insist upon the strict performance of any provision or to exercise
any right based upon a breach of the contract or to accept any defective
performance , shall not constitute a waiver of any rights under this Agreement .
CONDITIONS AND PROVISIONS - 6
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Article 18 , DUPLICATION OF EFFORT
No work to be performed under this Agreement shall duplicate any work to be
charged against any other contract , subcontract , or other source . This provision shall
be included in any subcontract which exceeds $2 , 500 . 00 . The Contractor shall
advise HAEIFC , in writing , of any other work it has performed or is performing which
might duplicate work under this Agreement .
Article 19 , AMENDMENTS
Either party may , from time to time , request amendments to this Agreement . Any
such change shall be effective only if committed to writing , signed by all parties , and
incorporated into this Agreement .
Article 20 , IDENTIFYING MARKERS
HAEIFC reserves the right to display , during the period covered by this Agreement
and after project completion , appropriate signs or markers identifying the roles of
HAEIFC as a participant financially in the Project .
Article 21 . INSURANCE COVERAGE
The Contractor shall be in full compliance with all state unemployment and industrial
insurance laws while performing work under this Agreement . HAEIFC will not be
responsible for payment of industrial insurance premiums or for any other claim or
benefit for the Contractor, or any subcontractor or employee of the Contractor, which
might arise under the industrial insurance laws during performance of this
Agreement .
Article 22 . NOTICES
All notices , demands , requests , consents , approvals , and other communication which
may be or are required to be given by either party to the other under this Agreement
shall be in writing and shall be deemed to have been sufficiently given for all
purposes when delivered or mailed by first class postage or certified mail , postage
prepaid , addressed as follows :
a ) Notice to HAEIFC
Hanford Area Economic Investment Fund Committee
P . O . Box 217
Richland , WA 99352
CONDITIONS AND PROVISIONS - 7
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b ) Notice to Contractor
Rick White
Community and Economic Development Director
City of Pasco
525 N . 3rd Avenue
Pasco , WA 99301
or to such other official or addresses the Contractor shall have furnished to HAEIFC
in writing .
Article 23 . ACCOUNTING
Project cost accounting will be accomplished within prescribed standards as
approved by the Office of the State Auditor and material and records evidencing such
accounting shall be held available for audit by the State Auditor, Division of Municipal
Corporations , State of Washington for a period of up to six (6 ) years . A copy of the
State Auditor' s report( s ) of the project will be provided to HAEIFC by the Contractor .
Article 24 . AUDIT
HAEIFC may require the Contractor to submit to an audit by HAEIFC by an auditor
selected by HAEIFC . Under no circumstances are audit costs eligible for
reimbursement by HAEIFC . All costs associated with an audit requested by HAEIFC
are the sole responsibility of the Contractor .
Article 25 , NOTICE OF ALLEGED IMPROPRIETIES
The Contractor shall immediately notify HAEIFC if any unit of government is
investigating any activities in connection with this loan or grant .
HANFORD AREA ECONOMIC CONTRA
INVEST NT FUN COMMITTEE
By : By :
Title : Title :
Date : Date :
CONDITIONS AND PROVISIONS - 8
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P -
RESOLUTION NO. 3 3 Z
A RESOLUTION AUTHORIZING SUBMITTAL OF A HANFORD AREA
ECONOMIC INVESTMENT FUND COMMITTEE GRANT APPLICATION FOR
CONSTRUCTION OF A SEWER PUMP STATION AND TECHNICAL
ASSISTANCE FOR THE DOWNTWON PASCO DEVELOPMENT AUTHORITY.
WHEREAS, the city has a long standing goal of increasing industrial development as an
expansion of the local tax base ; and
WHEREAS, establishing the most effective organizational structure for downtown
revitalization is a Council goal; and
WHEREAS , the HAEFIC Grant Program provides an opportunity to help achieve both
of these goals ; NOW THEREFORE ;
BE IT RESOLVED BY THE CITY COUNCIL OF PASCO ,
That authorization to submit a HAEFIC grant application for May 2011 grant cycle for
construction of a sewer pump station on the north side of US 12 and technical assistance for the
Downtown Pasco Development Authority is approved.
PASSED by the City Council of the City of Pasco this 1 6th day of May, 2011 .
CITY OF PASCO :
Matt Watkins
Mayor
ATTEST : APPROVED AS TO FORM ;
t
Debra L . Clark Leland B . Kerr
CMC City Clerk City Attorney
Attachment 4
ATTORNEY CERTIFICATE
Hanford Area Economic
Investment Fund Committee
P . 0 . Box 217
Richland , WA 99352
Ladies and Gentlemen :
am an attorney at law admitted to practice in the State of Washington , and the duly
appointed attorney of the City of Pasco ( the " City)T
1 have examined the application which is filed with the Hanford Area Economic Investment
Fund Committee ( " HAEIFC " ) , whereby assistance is requested for the following described
facilities project :
To aid in financing a lift station at SR 12 and the Kahlotus Highway to provide sewer
service along the US 12 Highway corridor.
I have reviewed all resolutions relating to the above-described project , and the Grant
Agreement including the Conditions and Provisions relating thereto (" Grant Documents" ) .
I have examined the proposed project outlined in the application in the light of existing
comprehensive land use plans and zoning ordinances , including the plans for the
acquisition of land and the development thereof for the project . For this purpose , I am
including Shoreline Management Plans as comprehensive land use plans .
I have also examined any and all documents and records additional to the above which
are germane to the proposed grant.
Based on the foregoing , it is my opinion that :
1 . The City is a public body , properly constituted and operating under the laws
of the State of Washington , empowered to receive and expend federal , state
and local funds , to contract with Hanford Area Economic Investment Fund
Committee , to receive and expend the funds involved for said purposes , to
accomplish the objectives set forth in its application .
20 The City is empowered to adopt the resolution , a copy of which is attached
hereto , accepting the aforesaid financial assistance as set forth in the Grant
Documents and the attached resolution .
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30 Such resolution was properly adopted in accordance with the laws of the
State of Washington .
40 There is currently no litigation in existence seeking to enjoin the
commencement or completion of the above-described public facilities project
or to enjoin the City from accepting the grant offered by the Hanford Area
Economic Investment Fund Committee with respect to such project .
Very truly yours ,
( signature , applicant' s attorney)
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