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HomeMy WebLinkAbout4291 Resolution - Downtown Pasco Development Authority 2023 Funding AgreementRESOLUTION 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- 1 PASSED by the City Council of the City of Pasco, Washington this Sth day of December, 2022. Blanche Barajas Mayor ATTEST: APPROVED AS TO FORM: t Debra Barham, CMC Kerr Fer r..L tv, PLLC City Clerk City eys Resolution—2023 DPDA Funding Agreement-2 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 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 Cit lans 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 Strate y. 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. Marketin. 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 powntown 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 Specialtv 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 l Oth 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 l Oth 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 l Otn 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 this agreement 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 far 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