2009 11 196952
MOSES LAKE CITY COUNCIL
\^SPECIAL MEETING
CITY HALL CONFERENCE ROOM
November 19,2009
Council Present:Ron Covey,Bill Ecret,Jon Lane,Dick Deane,Brent Reese,and Jim Liebrecht
Absent:Richard Pearce
The meeting was called to order at 4 p.m. by Mayor Covey.
The special meeting was for the purpose ofdiscussing infrastructure in support of a new industry.
UTILITY EXTENSIONS
Mayor Covey explained thathe hadbeen to Seattleto meet with the proponents ofthe "Chinook //faO
Project",representatives of the Grant County Economic Development Council, Grant County PUD,
the State Department of Commerce,representatives of the Governor's Office and the Governor
to discuss the proposed project and what the State of Washington and the City of Moses Lake
could provide in the way of support and incentives to this company.The company has been
looking at two sites but only one is immediately adjacent to the City's limits.He informed the
company that the City of Moses Lake would be willing to extend the infrastructureto the site and
the property owner will provide the on-site infrastructure.The Governor indicated that the state
could provide up to $250,000 and that she would be the contact person for applying for federal
grants and/orloans. He mentioned thatthe company representatives came to Moses Lake totour
the site and then requested that the City put in writing what incentives can be offered.He
^)mentioned that the other site under consideration is in Canada and while Canada can provide more
incentives,the company is interested in the low power rates available in Grant County. The
company is looking to break ground in March or April of 2010 and must be operational by 2011.
Shawn O'Brien,Asst.Municipal Services Director/City Engineer,stated that the city has provided
the company with information on the cost to extend utilities to and through the property. He
mentioned that the distance to extend the utilities to the property is not far and will cost
approximately $110,000 for both water and sewer extensions.Currently it is city policy that
developers extend the utilities.The project is smallenough that it would come underthe small
works roster and could be completed withinthree to four weeks.He mentioned that there is the
issue of the building permits.Since the company has indicated that this couldbe a $200 million
project,the building permit fees could be up to $100,000.He pointed out that if the project is
started inthe county, the city could loose the permits fees and the property probablywill not be
platted as the county does not require property to be platted.He mentioned that development
agreementshavebeen used onthose project toaddresssome oftheissues betweenthe city and
county.
Mayor Coveystatedthatitwas pointed outtothe companythatitwould be advantageoustothem
ifthe permitting process and inspectionswere handled bythe cityand he felt thatthisissue could
be worked out withthe county. He mentioned that the company will tap intothe local work force
and provide on-the-job training at a site inWyoming, whichwill utilize the local air service.
w
It was pointed outthat authorizing the city to install the utilities would be settinga precedent,since
the city has always requiredthe developers to install the infrastructure.
6953
CITY COUNCIL MINUTES November 19,2009
Ron Cone,Finance Director,reported he had been tasked by the Mayor topreparean estimateof
the ratio of theestimated real property taxrevenuetothe city from a $200 million plant compared
to projected costsofextending water and sewer to the Campbell siteof$110,000.The projected
ratioforthe "Chinook Project"is over 5 to 1.He pointedout that any funds used to construct water
and sewer utilities would be paid for through the rate structure.
There was considerable discussion bythe Council on the advantages to the community ofa new
business and the impact of the possible change in city policy indealing with infrastructure.
Action Taken:Mr.Liebrecht moved that the policyon assisting commercial/industrial plants be
amended to provide that the city could consider providing water and sewer main extensions to
developments of $150 million or more,with a minimum ratio ofestimated propertytax revenues to
city project cost offive (5)toone (1),andthe Mayor be authorized tosend a lettertothe "Chinook
Project"indicating the city's willingness to install thewaterand sewer mainstothesite,seconded
by Mr.Lane, and passed unanimously.
The special meeting was adjourned at 4:50 p.m
ATTEST Ronald C.Covey,
Ronald R.Cone,'Finance Director
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