Subject
This action will authorize the City Manager to finalize a property use agreement with the Port of Umatilla to satisfy a grant award requirement from the Economic Development Administration.
Summary and Background
The US EDA awarded the City $1.48M to provide 50% of the funding to install water, sewer, and street infrastructure in the South Hermiston Industrial Park.
The EDA, having done this exact same type of project countless times across the country, recognizes that the funded improvements greatly increase the financial value of the adjacent/underlying property. However, the intent of EDA, and of the City, with this grant award is to stimulate beneficial private investment and spur local job creation, not to enrich the property owner by simply allowing them to increase the price asked for their property.
The attached Property Use and Alienation Agreement is an agreement between the City of Hermiston and the Port of Umatilla to ensure that the Port of Umatilla Property, which is the main beneficiary of this project, is only used for industrial uses for the next 20 years, and when it is sold that it is sold at fair market value.
City Attorney Luisi, and the Port of Umatilla's attorney, David Blanc, worked together on this EDA template document, and the attached final version was approved by EDA's legal team on Aug. 30, and was approved by the Port of Umatilla's Board at their Sept. 7 meeting.
Tie-In to Council Goals:
Goal 6: Plan for City facilities that meet current and future needs
Fiscal Information
Approval of this agreement is required to receive $1.48M in EDA grant funding.
Alternatives and Recommendation
Alternatives
1. Approve Agreement.
2. Reject Agreement.
Recommendation
Approve Agreement as presented.
Requested Action/Motion
Motion to direct the City Manager to execute the enclosed Property Use & Alienation Agreement.
Submitted By: Mark Morgan