HomeMy WebLinkAboutItem 06 Acceptance of a Grant from Oregon Special Public Works Fund for Gateway-Beltline Intersection Project
AGENDA ITEM SUMMARY Meeting Date: June 2, 2008
Meeting Type: Regular Session
Department: City Manager's Office
Staff Contact: John Tamulonis J~}
S P R I N G FIE L D Staff Phone No: 726-3656 . 0 J ),
C I T Y C 0 U N C I L Estimated Time: Consent Calendar
ITEM TITLE: ACCEPTANCE OF A GRANT FROM OREGON SPECIAL PUBLIC WORKS FUND
FOR GATEW A Y-BELTLINE INTERSECTION PROJECT
ACTION
REQUESTED:
Approve/Not Approve the City of Springfield's accepting a $300,000 grant from Oregon
Special Public Works Fund (OSPWF) through the Oregon Economic and Community
Development Department and allow Systems Development Charge credits of up to the 0
grant amount to Royal Caribbean Cruise Lines (RCCL).
ISSUE
STATEMENT:
The City of Springfield has received a letter of approval (Attachment 2) of its grant
application (Attachment 1) for Springfield Beltline-Gateway Intersection Improvements
(#L08006). This grant approval will help conclude the State's and the City's obligation
under a Memorandum of Understanding signed November 4,2004 (Attachment 3) that
detailed the benefits and obligations of siting Royal Caribbean Cruise Lines' facilities in
the Gateway area of Springfield.
ATTACHMENTS:
1. Application for Oregon Special Public Works Funds
2. Letter of Approval Springfield Beltline-Gateway Intersection Improvements
3. Memorandum of Understanding, November 4, 2004
DISCUSSION/
FINANCIAL
IMPACT:
The application for a suitable project that is eligible under both the City's SDC program
and the State's OSPWF program has been delayed until a suitable project could be
developed and approved. The OSPWF funds will likely go to acquiring land to build the
intersection improvements needed in the Gateway area to ensure the Interstate 5
interchange and Gateway-Beltline intersection operate. Several projects were considered
but did not proceed because of lengthy approvals, limited scope, etc.
The OSPWF funds will allow the City to provide a total credit up to $300,000 to RCCL for
transportation and storm water SDCs paid when the project received building permits.
There are sufficient SDC funds available to pay the amounts to be credited.
APPLICA liON
Oregon Economic and Community Development Depart~ent
775 Summer St. NE, Suite 200
Salem, Oregon 97301-1280
(503) 986-0067
Concept Number: 033003140
Project Name: Beltline/Gateway Intersection
Applicant: City of Springfield
Applicant Information
Applicant's Organization Type:
I:8J City D Special District, organized under ORS _ D Tribe
D County D Port District, organized under ORS . D
Contact Name: Phone: (541) 726-3685
Len Goodwin, Assistant Public Works Director (541 )736-1021
Fax:
~
Email : laoodwin@cLsoringfield.or.us
Street Address: Mailing Address:
Public Works Department same
City of Springfield
225 5th Street
Springfield, OR 97477
I Applicant's Federal Tax 10 No:
Detailed Project Budget
Budget Line Ite~ . Department Non-Department Total
Funds Funds
Project Development and 300/0 Design 600,000 600,000
Final Design and ROW Acquisition 300,000 6,000,000 6,300,000
Construction 3,700,000 3,700,000
Totals 300,000 10,300,000 10,600,000
Status
Source of Non-Department Funds Amount Committed, Application Submitted,
Application Invited, or Potential Source
Development Annexation Contributions 7,000,000 Committed
MPO STP-U Funds 2,000,000' Committed
City System Development Charges 1,300,000 Committed
ATTACHMENT 1 - PAGE 1
I Total
10,300,000 I
Opportunity/problem and solution ' "
The Gateway Employment Area is quickly approaching 10,000 jobs with new firms and expansion
activities. Many are family wage jobs at Royal Caribbean, Symantec, RiverBend Medical Center
and Annex, and Oregon Medical Labs among others. Growth in the area is in part based on
delivery of the 1-5/Beltline interchange and intersection upgrades. Severe freeway and local system
congestion and safety problems, as documented in the Federally approved Revised Environmental
Assessment (2003), have been and continue to be a constraint to job creation and quality
community growth in this area.
The State has to date invested over $70m in interchange improvements and anticipates another
$50m to complete the freeway portion of the project. The City is responsible for the local
intersection side of this project, at an ultimate cost of about $30m. The first phase of the local
intersection improvement project, Unit 1 Add Lanes, is estimated at $1 0.6m.
k Detailed project description - " ",' '^
The first phase of Gateway/Beltline upgrades, Unit 1 Add Lanes, will:
· Add a second left turn lane, eastbound to northbound, on Beltline Hwy at Gateway Street.
· Add a second northbound travel lane on Gateway north of Beltline for two blocks which
becomes anew right turn lane at International Way.
· ,Add a second northbound left turn lane on, Gateway approaching Beltline Hwy.
· Add a third westbound travel lane on Beltline Rd. and Beltline Highway between Hutton St. and
the northbound 1-5 entrance ramp.
· Reconfigure the Beltline/Hutton intersection to % access (remove existing left turns).
· Reconstruct signalized intersection at Gateway/Beltline to accommodate the above.
· Construct median control, combine driveways, and provide cross-over easements for internal
circulation among properties in all four intersection quadrants.
· Construct associated storm drainage and landscaping improvements.
· Construct new sign bridge over Beltline Hwy just west of the Gateway intersection.
Project Work Plan ,
Activity Estimated Start Date Estimated Completion Date
Project Development and 30% Design August 2006 Summer /Fall 2008
Final Design and ROW Acquisition May 2008 Summer 2009
Construction Spring 2010 Winter 2010
ATTACHMENT 1 - PAGE 2
Estimated First Draw date (01/12/08):
I certify that:
1) to the best of my knowledge all information contained in this document and any attached supplements, is
valid and accurate;
2) the application has been approved by the governing body or is otherwise being submitted using the
governing body's lawful process, and
3) if signed by an official, other than the highest elected official, documentation is attached that verifies the
official's authority to ~ign on behalf of the applicant.
(
Signat e
(must b highest elected or authorized official)
Sidney W. Leiken, Mayor of Springfield
Printed Name & Title
May 15, 2008
Date
ATTACHMENT 1 - PAGE 3
Application Supplement for
Special Public Works Funds
Infrastructure Project
Property Acquisition/Ownership/Operation
Describe any property, including permanent easements and rights-of-way, which need to be
obtained for the project.
Several segments of property along the edges of existing right of way will be acquired, in addition
to a parcel at the northwest corner of the intersection.
Who will own the facility/improvements once they are constructed?
City of Springfield (excluding Beltline Road west of the Gateway Street intersection, an area which
will remain underthe control of Oregon Department of Transportation).
Who will operate and maintain the facility/improvements once they are constructed?
City of Springfield
Results of the Project
Explain how the project will meet one or more of the following: a) establishes or enlarges
economically viable industries with reasonable long term growth prospects, including
opportunities for innovative new industries or for continuance of existing basic industries;
b) results in a net benefit to the state in the long term and will not require continuing state.
subsidies; c) utilizes existing public and private assets, including infrastructure, human
resources, and plant and equipment; d) improves the conditions of the economically
disadvantaged and increases the number of jobs which increase average incomes; e)
supports the development of businesses owned by women and members of minority
groups; f) harnesses Oregon's comparative advantage with emphasis on the growth and
development of existing, in-state businesses, especially small businesses; g) provides
direct assistance to businesses which sell goods or services in markets for which national
or international competition exists; h) results in the economic revitalization of.
communities; or i) is funded and otherwise supported to the maximum extent possible by
private resources; j) results in b~siness growth or expansion which would not occur in
Oregon without an investment from the Special Public Works Fund.
Reconstruction of this intersection is necessary to fulfill the requirements imposed at the time of
the approval of the Royal Caribbean facility. In addition, it is needed to provide adequate traffic
capacity for recently constructed and planned facilities used by Peace Health's RiverBend General
Hospital, Symantec, Oregon Medical Laboratories, a new Holiday Inn Express, a proposed Hilton
Garden Inn, and a conference center, among others. 70 percent of the cost of this phase is funded
by direct developer contributions and an additional 12-13 percent is funded by Systems
Development Charges recovered from developing private interests.
If the project will primarily benefit commercial businesses, please list the goods/services
sold by the businesses for which national or international competition exists and the
markets in which the goods/services are sold.
Not applicable.
ATTACHMENT 1 - PAGE 4 .
If the project will make improvements to a community's downtown, explain how the project
will make the downtown/main street more competitive and/or improve the economic vitality
of the community.
Not applicable.
System Information (only complete for safe drinking water system projects)
Water System Identification Number
Not applicable.
Are all service connections to your drinking water system metered? If no, has a plan been
adopted to install the meters? .
Not applicable.
Describe any anticipated changes in the rates in the next five years.
Not applicable.
.
Additional Program Requirements/Project Information
No private business will have a special legal entitlement to the project (e.g., through
ownership, a lease, a management contract, special rates/charges, or priority for use) and
the project is available for use by the general public. (True or False) If false, please
explain.
True.
Explain how the project is necessary to enable the identified business's project to proceed.
Royal Caribbean Cruise Lines (RCCl) proposed their development just a few years after adoption
of the design and before construction started on the improvements currently being constructed on
the Interstate-5/Beltline Road Interchange, an GOOT project responsibility. The City has taken
planning responsibility for the improvements to the local street system primarily at the Beltline
Road/Gateway intersection but also at other locations. Royal Caribbean's project submitted a
Transportation Impact Study (attached) that indicated "All study area intersections (except
Beltline/Gateway) are anticipated to operate at acceptable lOSs throughout the analysis period"
(page12, Group MacKenzie TIA). The City's approval of RCCl's acknowledged this also but noted
that the improvements needed were part of a much larger project already scheduled and entering
its design phase, so RCCl's project was approved with the project's construction anticipated.
However, with so many changes to development in the area, the City is planning to move that
project forward in phases, so that subsequent analysis and discussion of real traffic patterns that
will emerge once the largest new employers have opened their doors (Peace Health's RiverBend
Hospital and four medical clinics) The Unit I Add lanes phase is a less expensive step which will
provide a solution for 6-to-1 0 years, until traffic patterns settle out and the assumptions of the
Revised Environmental Assessment can be confirmed. At that point the full project can be
designed and built with minimal change to the first phase.
Will the identified business be relocating from another part of the. state? If yes, please
explain the reason for the relocation.
ATTACHMENT 1 - PAGE 5
INo.
List of permits needed and whether they have been obtain~d or not.
Revised Environmental assessment has been approved
What is the physical location of the project?
Intersection of Beltline Road and Gateway Street, in the northwest area of the City of Springfield,
immediately adjacent to the 1-5 Beltline Road interchange. '
Is the project situated in an area in which economic development is prevented or
substantially restricted by at least one of the following: adequate sewage treatment works;
solid waste disposal sites; water supply works; telecommunications infrastructure; roads;
public transportation; or other facilities that comprise the physical foundation for industrial
and commercial activities?
Yes (transportation infrastructure)
.
What is the estimated useful life of the improvements included in the project?
At least 12 years (the next phase of the project will extend that period substantially). .
Describe why the project is in the public interest.
The Gateway Employment Area is quJckly approaching 10,000 jobs. Many are family wage jobs at
Royal Caribbean, Symantec, Oregon Medical ,Laboratories, and RiverBend Medical Center and
Annex, among others. Growth in the area is in part based on delivery of the 1-5/Beltline
interchange and intersection upgrades. Severe freeway and local system congestion and safety
problems, as documented in the Federally approved Revised Environmental Assessment (2003),
have been and continue to be a constraint to job creation and quality community growth in this
area.
The State has to date invested over $70m in interchange improvements and anticipates another
$50m to complete the freeway portion of the project. The City is responsible for the local
intersection side of this project, at an ultimate cost of about $30m.
Financial Information
What sources of revenue are being pledged to repay a loan?
N/A No loans are requested.
Is other debt serviced or secured by those revenues? If yes, is it described in the
applicant's audit reports? If no, please describe:
N/A
Has the applicant ever defaulted on a debt? If yes, provide a complete summary of the
circumstances related to the default.
N/A
ATTACHMENT 1 - PAGE 6
Is there pending litigation that could impair the applicant's ability to repay debt?
No.
Additional Budget Information
If the budget includes project management expenses, will the applicant's staff or an
independent contractor be providing the services?
Both applicant's staff and outside contractors will provide services.
Who prepared the cost estimates for the project? Name, title, company, phone, and date.
Tom Boyatt, Transportation Manager, City of Springfield (541)744-3373 V; (54'1 )726-2309 F
If the budget includes Non-Department funds which are not yet committed, will all funds be
committed by the date an award from the Department is made?
N/A
Attachments
X X Attachment
Attached ~ot label
App icable? Description of Attachment
? (please do
not change)
Documentation from the appropriate entity (city or county)
Yes A which indicates that the project is consistent with the
acknowledged local comprehensive plan.
Yes B List of the five largest employers in the applicant's
jurisdiction, the type of business, and number of employees.
List of the ten largest property tax payers in the applicant's
Yes C jurisdiction, their type of business, total taxes, and current
assessed value.
If the project is a safe drinking .water project, attach a copy of
X D the Notice of Non-Compliance with the Safe Drinking Water
Act issued by the Division of Health Services Drinking Water
Program.
If the applicant will own the facility and another entity will
X E operate the facility, attach an executed copy of the operating
agreement between the parties.
If the project overlaps municipal boundaries, attach an
X F executed copy of an intergovernmental cooperation
agreement which sets out the duties and obligations of each
entity.
If the project is for a safe drinking water system, attach a
X G copy of the current rate schedule, including rates for System
Development Charges SDCs.
X If the project is for a safe drinking water system, attach a
H copy of the most recent resolution or ordinance which
adopts the current rate schedule.
ATTACHMENT 1 - PAGE 1
Attachments
X X Attachment
Attached ~ot label
App icable? Description of Attachment
? (please do
not change)
X If the project is for a safe drinking water system, information
on the system's ten largest customers see form below.
If net revenues from your water and/or sewer system will be
X J pledged to repay the loan, attach Summary of Users,
Consumption, and Rates for the applicable system(s) (see
form below .
Yes K Map(s) showing the location of the project, including tax
lots/parcels and road widths, etc.
A Schedule of Pro Forma Revenues and Expenditures for the
No L applicable fund(s) that will be pledged to repay the loan for
each of the next five years and any underlying assumptions
used see form below
The study conducted to determine the feasibility of the
REA facility/improvements or any preliminary
exec M architectural/engineering/planning work that has been
summ completed. The documents must be stamped and signed by
a professional architect/engineer registered or licensed in
Oregon.
X N If the project is for downtown revitalization, attach a copy of
the downtown revitalization plan.
Yes 0 Applicant's adopted budget.
Yes P Applicant's last three audit reports.
Yes, If available, plans & specifications for the project.
narrati Q
ve&
pdf
X R Copies of any ordinances which establish debt that is
supported by the source of repayment for this loan.
Yes S The Job Creation/Retention and Average Wages form
completed by the business (see form below.
Yes T Copy of the First Source Hiring Agreement between the
business and the local job training provider.
If a grant is likely and it's possible the grant could exceed the
property value, provide one of the following: 1) real market
value, from the county tax assessor, of a property which is
comparable to the property that will be improved as a result
X of the project once the improvements have been made; 2) a
U projection from the county tax assessor of the value of the
property that will be improved as a result of the project once
the improvements have been made; or 3) an appraisal,
conducted by an independent appraiser, of the value of the
property that will be improved as a result of the project once
the improvements have been made.
ATTACHMENT 1 - PAGE 8
ATTACHMENT L
Schedule of Pro Forma Revenues and Expenditures
I Current I Year 1 I Year 2 I Year 3 I Year 4 I YearS I
Source of Revenue (identify I N/~ I I I I I
source)****
Total Revenue
Operating Revenue**
Operating Expenses***
Net Operating Revenue
Existing Debt Service
(identify source )****
Existing Debt Service
{identify source )****
Total Existing Debt Service
*complete only if water fund will be pledged to repay the loan
**do not include interest, system development charges, etc.
***do not include capital outlay, transfers, debt service, etc.
****add additional rows as needed
Describe any assumptions used in calculating the above figures.
ATTACHMENT 1 - PAGE 9
ATTACHMENTS
Job Creation/Retention and Average Wages
Business Name & Address
Royal Caribbean Cruises.
Contact Person Name, Title &
Phone
Not applicable
Oregon Business Identification #
On file with OECDD
Federal Tax Identification #
On file with OECDD
Product(s) produced
Customer Service Center
1. Current Number of Full-Time Equivalent Jobs
a. Total number of hours worked* to employees** during the previous 12 0
months
b. Divided by 1,820 hours per year = 0
c. Of the current Full-Time Equivalent Jobs (1.b. above), how many do
you estimate would no longer exist if the proposed project is not N/A
completed
d. By what date do you estimate the Full-Time Equivalent Jobs in 1.c. N/A
above would no longer exist if the proposed project is not completed?
e. What 12-month period was used for 1.a. above?
N/A
N/A
* "Hours worked" for an hourly employee means all hours for which the employee was actually worked and it is not including sick leave
and/or vacation if the employee receives his hourly wage for those hours. This definition was developed to be consistent with the data
collected by the Oregon Employment Department for the Oregon Quarterly Reports and Form 132 (for Unemployment Insurance Tax).
The 1820 figure represents 35 hours per week and was developed in coordination with the Oregon Employment Department. The 1820
figure assumes 6.5 weeks (260 hours) of paid and unpaid leave each year out of a total 2080 hours (40 hours x 52 weeks) per year.
The 6.5 weeks of paid and unpaid leave consists of: 2.5 weeks of vacation, 1.5 weeks of sick leave, 1.5 weeks of holidays, and 1 week
of other leave (such as family leave). All jobs that are covered under unemployment compensation shall be counted. Contract labor
may also be included if the jobs are expected to be permanent, but hired though a third party contract agency.
** "Employee" means:
a. a person who is paid through a business's normal payroll system;
b. a person for whom FICA and state and federal income taxes are deducted from his/her gross wages, which are then forwarded to the
appropriate agencies by the business on behalf of the person;
c. a person for whom the business pays state and federal unemployment insurance; and
d. a person for whom the business contributes to FICA.
An exception to the above is allowed if the business uses a leasing agent for its employees and the terms of the leasing agreement are
such that hiring decisions are made by the business and for all intents and purposes the "employees" are working for the business.
The fees paid by the business to the leasing agent should not be considered as part of the employees' salary/wages.
An "employee" is not:
a. a person hired through a temporary agency; or
b. a person acting as an independent contractor.
ATTACHMENT 1 - PAGE 10
2. Average Annual Wage of Current Full-Time Equivalent Jobs
a. Total wages/salaries paid to employees during the previous 12 0.00
months
b. Total number of hours worked to employees during the previous 0
12 months (same as 1.b. above) + 1,820
c. Divide a. by b. 0.00
3. Estimated number of new Full-Time Equivalent Jobs that will be
created as a result of this project
600
Estimated date that operations resulting from the proposed project
will begin
See note below
By what date do you expect the new Full-Time Equivalent Jobs will be
created? (no more than five years from the date operations resulting
from the proposed project begin)
12/31/09
4. Estimated annual average wage of the new Full-Time Equivalent Jobs
that will be created as a result of this project 3. above
$22,880
$11.00/hr
5. Estimated, number of new Full-Time Equivalent Jobs that will be
created as a result of this project by the end of the second year after
beginning operations resulting from the proposed project (these jobs
must then be maintained for a minimum of one year)
600
6. Estimated annual average wage of the new Full-Time Equivalent Jobs
that will be created as a result of the proposed project by the end of "
the second year
$12,880
($11.00/hr)
I certify and affirm that all statements and information contained herein are true and
complete to the best of my knowledge.
N/A
Preparer's Signature
N/A
Official Signature of Business
N/A
Typed or Printed Name
N/A
Typed or Printed Name
N/A
N/A
Date
Date
Note: Royal Caribbean Cruises began operations in Springfield in late 2005.
ATTACHMENT 1 - PAGE 11
May 22, 2008
The Honorable Sidney W. Leiken
City of Springfield
225 -. Fifth Street
Springfield, Oregon 97477
RE: Springfield Beltline-Gateway Intersection Improvements (#L0800b)
Dear Mayor Leiken:
Congratulations on your successful application for the above-referenced project.
Enclosed please find a summary ~howing the award amount and the terms and conditions
of the award. A contract for the award will be sent to you shortly for your signature.
It is our understanding that the Springfield City Council will take formal action at its June
2, 2008 meeting to accept this funding from the Special Public Works Fund and that
formal action will then enable the City to reimburse Workstage LLC for the System
Development Charges (SDCs) set forth in the Memorandum of Understanding between
the State of Oregon, the City of Springfield, the Lane Metro Partnership, and Royal
Caribbean Cruises Ltd. We look forward to receiving confirmation from the City that the
reimbursement of the SDCs has occurred.
In the meantime, should you have any questions, please contact your Regional
Coordinator, Jacki Yoder, at (503)986-0067.
Sincerely,
~~.
Laird Bryan, Operations Manager
Community Development Division
enclosure
c: Leigh Howard, Workstage LLC
John Tamulonis, City of Springfield
Jack Roberts, Lane Metro Partnership
.Bob Warren, OECDD
Fiscal
file
ATTACHMENT 2 - PAGE 1
GOVERNOR THEODORE R. KULONGOSKI
775 Summer St. NE, Suite 200. Salem, Oregon 97301-1280
Phnn~ C\n~-QA~_n1?~ . TTY 1-Ann_7~c\_?Qnn . I=~y C\n~-C\A1-C\11 C\ . httn"/IW\AnAl ~('nn <::t~t~ nr 11<::/
Oregon Economic & Community Development Department
Summary of Award
Project Number L08006
Project Name Springfield Beltline-Gateway Intersection
Improvements
Recipient
Date of Award
. City of Springfield
May 21, 2008
Award from Oregon Economic & Community Development Department:
Department Funds - Special Public Works Fund - Grant
Non-Department Funds
Total Project Cost
Application
$ 300,000
10,300,000
$10,600,000
Award
$ 300,000
10,300,000
$10,600,000
Approved Project Description:
Recipient shall complete improvements to the Gateway-Beltline intersection. It is anticipated the
improvements will include:
a. Addition of a second left turn lane eastbound to northbound on Beltline Hwy at Gateway Street;
b. Addition of a second northbound travel lane on Gateway north of Beltline for two blocks which
becomes a new right turn lane at International Way;
c. Additional of a second northbound left turn lane on Gateway approaching Beltline Hwy;
d. Addition of a third westbound travel lane on Beltline Rd and Beltline Highway between Hutton St
and the northbound 1 5 entrance ramp;
e. Reconfiguration of the Beltline Hutton intersection to access remove existing left turns;
f. Reconstruction of signalized intersection at Gateway Beltline to accommodate the above;
g. Construction of median control combine driveways and provide cross over easements for internal
circulation among properties in all four intersection quadrants;
h. Construction of associated storm drainage and landscaping improvements;
i. Construction of new sign bridge over Beltline Hwy just west of the Gateway intersection; and
j. Acquisition of rights-of-way and completion of preliminary and final design for the improvements
described in a-i above.
In addition to the standard terms and conditions placed on funding from the above program, the
following terms and conditions have been placed on the award:
a. Prior to beginning Final Design and ROW Acquisition, Recipient shall provide State with
documentation that all permits and governmental approvals have been obtained.
b. Job Creation and Retention. Recipient agrees and acknowledges that the State is providing the Grant
to assist Recipient in recruiting new business(esrto Springfield, Oregon and that, in order to retain
the Grant, sixty (60) full-time equivalentJgbs mu~tp~J:r~ate~tatthe Royal Caribbean Cruises Ltd.
ATTACHMENT 2 - PAGE 2 Summary of Award
Page 1 of 2
facility in Springfield, Oregon and maintaine~ for a one-year period (consisting of four (4)
consecutive calendar quarters which begins no earlier than July 1, 2004 and ending no later than
December 31, 2009. For purposes of this job creation and maintenance requirement, Recipient may
designate any single one-year period (consisting of four (4) consecutive calendar quarters) beginning
no earlier than July 1, 2004 and ending no later than December 31, 2009 (such one-year period, as
designated by Recipient, the HRetention Period"). If this job creation and maintenance requirement
is no met, then Recipient shall repay the (Jrant to the extent requirement by Section xxx (see d.
below).
c. Documentation of Job Creation and Maintenance. No later than January 31, 2010, Recipient shall "
notify State in .writing of the Retention Period. State will then verify the number of hours worked by
employees at the Roy Caribbean Cruises Ltd. facility in Springfield, Oregon during the Retention
Period through review of information obtained from the Oregon employment Department;
provided; however, that if State is not able to obtain information from the Oregon Employment
Department to verify the number of hours worked Recipient shall provide comparable information,
as the State may reasonable request, for each employee in order to determine the actual number of
full-time equivalent jobs at the Royal Caribbean Cruises Ltd. facility in Springfield, Oregon during the
Retention Period.
d. Repavment of Grant. If fewer than sixty (60) full-time equivalent jobs are maintained at the Royal
Caribbean Cruises Ltd. facility in Springfield, Oregon during the Retention Period, as evidenced by
documentation satisfactory to the State, Recipient shall repay the Grant moneys to the State. The
amount of repayment shall be calculated as follows:
Divide the amount of the Grant moneys disbursed to Recipient by 60 riPer Job Amount"). Subtract
the number of full-time equivalent jobs that were maintained during the Retention Period, and
satisfactorily documented, from 60 ("Jobs Not Created"). Multiply the Per Job Amount by the Jobs
Not Created.
ATTACHMENT 2 - PAGE 3
Summary of Award
Page 2 of 2
MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding is entered into on this.-,] ~y of ;JtJJ.e(,~004
between the State of Oregon, acting by and through the Oregon Economic and
COlnmunity Development Department ("State"), the City of Springfield ("City"), the
Lane Metro Partnership, a nonprofit corporation ("Association") and Royal Caribbean
Cruises Ltd. ("Company") to declare the mutual understanding of the parties regarding
the tenns herein discussed which are hereby described as incentives. This MOU is an
outline of the principal roles and responsibilities of the various parties. It is not intended
to be a complete or final agreement and the parties agree to execute such final
applications, documents and agreements as may be necessary to effectuate the
understandings contained herein.
Whereas, the State, the City and the Association encourage the development and
expansion of business, industry and commerce in order to diversify the economy, reduce
unemployment and improve the public health, safety, welfare and future prosperity of the
citizens of the State; and
Whereas, the Company desires to enhance its business operations by constructing and
operating a facility in Springfield, Oregon, which will require community and site
investments to hire, train and develop skilled and semi-skilled elnployees and
management personnel;. and
Whereas, the parties have entered into certain discussions regarding the Company's
selection of the site for the planned location of a customer service center to be supported
by certain incentives and assistance specifically described below in sections I through 6
to be provided or facilitated by the State, the City and the Association; and
Whereas, the parties wish to mutually cooperate for the betterment of the citizens of the
State and the City and pf the investors and custOlners of the Company to comlnence a
long term relationship;! and
!
. Whereas, the parties ndw wish to memorialize their respective understandings by entering
into this agreelnent doclumenting the mutual representations and incentives made by the
parties upon which the I Company has relied in goirig forward with the proposed
developlnent. i
i
Accordingly, the part,es hereby declare their willingness to cooperate with one
another in providing the following:
1. Governor's Strateg~c Reserve Fund. The State shall grant to the Company the
alnount of $600,000 co'ntingent upon the Company's commitment to create at least 600
jobs at its site in Springfield, Oregon, within three years of the COlnmencement of the
Company's operations ~at the site. The grant shall be payable in full within thirty days
1
- --~~ .~
ATTACHMENT 3 - PAGE 1
. after the execution of this agreement or purchase of the site, by company or its designated
developer, whichever is later. For purposes of this section, operations shall be deemed to
cOlnmence on January 1, 2006 or such later date as customer calls shall be officially
handled. at the site other than as employee training.
In the event company does not create 600 jobs within that period of tilne, and retain such
. jobs for a period of at least 6 months, then the Company shall be allowed to retain that
portion of the $600,000 grant as reflects the same percentage of 600 as the maxiInum
elnployment level attained during the first three years of operation and maintained for at
least six months and shall be required to repay the balance. The requirement to create
jobs will be delayed or waived in the event failure to create such jobs in the tilne provided
is the result of fire, flood, earthquake, war or acts of terrorism or other circlunstances
beyond the control of the Company.
For purposes of this section, the six-month period during which the job must be retained
shall be any consecutive six-Inonth period during the first three and a half years of
operation at the site.
2. Special Public Works Fund. The Stateshall grant to the City the aInount of
$300,000 with the condition that such amount shall be expended only for roads and right
of way, sewers, storm water discharge and treatment, and other qualifying uses of the
Special Public Works Fund, the expense of which would otherwise have been borne by
the COlnpany. The City agrees to 'credit the COlnpany with amounts so expended So that
the net effect shall be to reduce the cost of the Project to the Company by an alnount
equal to the $300,000 in Special Public Works Funds expended thereon. The acceptq.nce
of the grant is subject to Council approval.
3. Workforce Training Funds. After the Company has been in operation for at least
120 days, it shall be eligible for workforce training assistance. Application must be lnade
for such grants and issuance of the grants cannot be guaranteed by the State. However,
the State and the Association shall make best efforts to secure grants for training in
accordance with the foregoing: After operation for a period of at least 120 days at the site
in Springfield, Oregon, and having attained employment of at least 100 employees, a
grant of at least $100,000 will be applied for retention, replacement and expansion of the
workforce to at least 200 employees. After attaining at least 200 employees, application
will be made for additional training grants of at least $100,000 each associated with each
strategic expansion of the cOlnpany's workforce, defined as increases of at least 200 net
new employees as part of an incremental expansion.
4. Vacation of Sports Way. City staff will support and recommend to the Springfield
City Council for its decision: (l)vacation of the public road Sports Way, together with
the public infrastructure beneath or along the road, including but not limited to sewer and
stonnwater drainage; and (b) granting of the land vacated as a road at no cost to
COlnpany, or its designated developer. The right-of-way recommended for vacation will
be that portion of the road which currently runs between the two parcels of land which
ATTACHMENT 3 - PAGE 2
2
together constitute the site, with the exception of a cul-de-sac or other portion designated
for a public turnaround area at the end of the road on the southernmost section of the
current road between the two par<;;els. City agrees to diligently pursue the road vacation
process to the extent permissible under the legal requirements for such process. Cost of
replacelnent of the road and infrastructure will be borne by the City and will not be at the
-expense of the Company.
In the event of road vacation, the Company shall agree to grant to the City, Eugene Water
and Electric Board ("EWEB"), the Springfield Utility Board ("SUB") and the Rainbow
Water District ("Rainbow") an access easemeflt through their property to the north end of
what is now Maple Island Slough Road and Sports Way immediately north of the two
parcels. This easelnent is to permit City, EWEB, SUB and Rainbow to periodically
access city land, streets and public infrastructure, electric substation and wells near the
site and Inay be through the Company's parking or other paved areas sufficient to permit
the trucks or other vehicles of the utilities to gain access to their facilities. City will work
with EWEB, SUB and Rainbow and Company to minilnize the impact of the use of such
easelnent on the elllployees and operation of the Company.
This easement shall tenninate at such tiIlle as Maple Island Slough Road is connected,
directly or indirectly, to International Way or as such other access through public right-of-
way is secured by the City of Springfield and available to EWEB, SUB and Rainbow.
Company acknowledges that during the site review process it is likely that COlllpany, or
its designated developer, will be required to dedicate public road right of way along the
south property line to effectuate a public road system serving other properties in the area,
as well as other utility easements as necessary for public sanitary sewer, st9rmwater
drainage, utilities, etc.
. 5. Statutory Business Assistance and Incentives. In addition to the agreelllents set
forth in sections I through 4 above, the Company is eligible for the following programs
providing business assistance and incentives:
a. Enterorise Zone. The site is in Springfield's Enterprise Zone IT and therefore property
tax on the value of the COlnpany's new investment, including funliture, fixtures and
equiplllent are eligible for three years of property tax abatelllent. City, the Association
and COlnpany agree to work together to qualify COlllpany for eligible benefits under the
Enterprise zone. Enterprise Zone benefits are subject to timely application by the
cOlnpany to the Springfield Enterprise Zone manager.
b. Jobs Plus. The state of Oregon offers a tax credit to elnployers who hire workers who
are receiving unelnployment benefits. The amount of this credit is $2,080 per worker for
their first three Inonths on the job. It is limited to not more than 10% of the elnployer's
3
------~-- ------
ATTACHMENT 3 - PAGE 3
workforce. The State and the Association agree to work with the Company to receive the
eligible benefits under this program.
c. Training assistance, facilities. etc. In addition to workforce training grants and Jobs
Plus, training facilities and assistance are available through Lane Comlnunity College and
the Lane Workforce Partnership. Although there are costs associated with specific
training programs (which after 120 days of operation may be paid for with the workforce
training grants described in paragraph #3 above) other information, data and assistance
are available to businesses and may be utilized by the COlnpany. The Association will
work with the Company to facilitate access these resources.
e. Child Care Tax Credit. Oregon's child care tax credit permits an employer to offset 50
percent of its child care expenditures against its state tax liability up to a maxilnUln of
$2500 per employee each year. Employers may also take a 25% federal tax credit for any
and all costs associated with building, operating, expanding a child care facility, or the
costs of contracting with a third party provider.
f. Energy Tax Credits. Business Energy Tax Credits are available for all energy saving
efforts, to include: Equipment cost, engineering and design fees, Inaterials, supplies,
installation costs. The tax credit is 35 percent of eligible project costs. The tax credit is
taken over a 5 year period and can be carried over for an additional 3 years. The State
and the Association agree to work with the COlnpany to receive the eligible benefits und~r
this program.
6. Further Agreements and Reporting Requirements. The Company agrees to
execute a first source hiring agreement with the State of Oregon in the fotm set forth in.
Exhibit A attached hereto. COlnpany also agrees to file periodic reports setting forth the
jobs created and retained by the Company in meeting the elnploYlnent cOlnmitlnent in the
fonn set forth in Exhibit B. Both parties agree to execute such additional documents and
filing requirelnents as may reasonably be required to effectuate the tenns of this
agreelnent.
7. Best Efforts. Subject to the consummation of the acquisition by the COlnpany or its
designated developer of the site, and to the successful conSUlnlnation of all relevant
agreements between the Company and the developer for the development and use of the
site, Company further agrees to build a customer service center of at least 150,000 square
feet with the capacity for at least 1,000 elnployees. City agrees to provide company with
its best efforts to expeditiously undertake all inspections, reviews, approvals and any
other steps necessary for the construction and occupancy of the building by COlnpany.
COlnpany agrees to submit timely and complete Vacation Application and Site Plan
Applications. It is the intent of both Company and City that construction and occupancy
of the building described above be completed by November 1, 2005, and that Company
will elect to use City's Expedited Process. .
ATTACHMENT 3 - PAGE 4
4
'\'''''
8. Land Use. Nothing in this Agreement shall be constnled as waiving any requirements
of the Springfield Development Code or Springfield Municipal Code which may be
applicable to the use and development of this property.
EXECUTED by the parties hereto the date hereinafter set forth.
Oregon Economic Development Department
Date:
Bob Wan-en
Regional Business Officer
"1
Date:
Date:
Ltd.
Date:
tF~
5 _~_" ___
ATTACHMENT 3 - PAGE 5
1() II '-{ /0 y
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Minimum First-Source Hiring Agreement Language
First~Source Hiring Agreement Language
(from Oregon Administrative Rules)
[123-070-1700 C Provisions of the First Source Agreement]
[(1) The First Source Agreement shall contain at least the following provisions in substantially the form presented here:]
[(a)] This First Source Agreement for referral of qualified job applicants is entered into between:
[(A)] The follo'Ying entity, .
(hereinafter referred to as the CONTACT AGENCY), which coordinates job referrals for, and represents, the
following other publicly funded job training providers for the geographic area covered in the Interagency
Agreement under OAR 123-070-1200,
(hereinafter referred to as the PROVIDERS); and
[(B)] The following business finn, located. in this geographic area,
(hereinafter referred to as the EMPLOYER).
[(b)] The EMPLOYER is or will be receiving benefits from. the following program or programs (check those that
apply):
[(A)] _ State lottery-funded program, specify
[(B)] _ Enterprise zone program, specify - yes or no - _ if seeking an extended exemption period
(up to five years); .
[(C)] _ Other, specify -
[(e)] Under this First Source Agreement, the EMPLOYER will use the CONTACT AGENCY as its first source for
external referral of Qualified Applicants for all job openings of the EMPLOYER at the following location(s)
, such that the EMPLOYER agrees to the following:
[(A)] To effectively notify the CONTACT AGENCY of all job openings, no later than when notification is
received by any other job referral source external to the EMPLOYER or any public announcement for the
job opening, throughout the tenn of this agreement;
[(B)] That each such notice to the Contact Agency shall include job qualifications and a deadline for
referrals;
[(C)] To ensure that the CONTACT AGENCY and the PROVIDERS will have sufficient:
[(0] Lead time (minimum lead time is _ business days before the job application close date,
except in temporary or emergency situations); and .
[em] lnfonnation to make meaningful referrals for jobs that will be filled by the EMPLOYER; .
[(0)] That all job infonnation may be shared with all PROVIDERS for which referrals are coordinated by
the CONTACT AGENCY; and
[(E)] That all job openings shall be listed in the PUBLIC LABOR EXCHANGE SYSTEM (currently the
.Oregon Job Selection System-OJSS) of the state Employment Department, insofar as a local office of
that state agency is a PROVIDER,
[(d)] The CONT ACT AGE~CY agrees to the following:
[(A)] That to the extent that Qualified Applicants are available among the relevant PROVIDERS, to refer
.those individuals to the EMPLOYER for job openings; and
[(B)] To facilitate and implement the listing of all job openings in the PUBLIC LABOR EXCHANGE
SYSTEM, in cooperation with other PROVIDERS (though, not necessarily to the exclusion of other
referral methods).
[(e)] The EMPLOYER agrees to:
[(A)] Fully consider for employment any Qualified Applicant referred by the CONTACT AGENCY by the
referral deadline;
[(B)] Notify the CONTACT AGENCY when a Qualified Applicant is hired by the EMPLOYER; and
ATTACHMENT 3 - PAGE 6
Minimum First-Source Hiring Agreement Language
[(q] provide after-the-fact infonnation to the CONTACT AGENCY about applicable overall hiring and job
vacancies in the following manner -
, or as requested by the Contact
Agency, in accordance with OAR 123-070-1900(1) to (3).
[(!)] The EMPLOYER agrees to comply with all relevant laws regarding employment of Qualified Applicants of
this state' or the federal goveinment, including but not limited to not discriminating on the basis of race, color,
religion, ancestry, national origin, political affiliation, sex, age, marital status, sexual orientation, physical or
t)1ental disability, or any other inappropriate reason prohibited by such laws.
leg)] The EMPLOYER will make all final decisions on hiring new employees. After the EMPLOYER has hired the
employees, the EMPLOYER assumes full responsibility for them as employees.
l(hlJ All persons hired under this Agreement are subject to the EMPLOYER's regular personnel policies and
procedures and have no spechil or additional rights arising from this Agreement.
[(i)] If the tenns of this Agreement conflict with the provisions of a c.ollective bargaining agreement to which the
EMPLOYER is a party, the bargaining agreement shall prevail.
[Gl] Both the CONTACT AGENCY and EMPLOYER agree to attempt to resolve all areas of misunderstanding,
disagreement or dissatisfaction with each other as soon as they arise. If the parties are unable to resolve the issue,
either may:
((A)] Initiate a meeting between the EMPLOYER and either the CONTACT AGENCY or all of the
PROVIDERS; or
[(B)) Request assistance from the Oregon Economic and Community Development Department.
[(1<)J This agreement shall take effect on the date ofthe last signature by the contracting parties below, and shall be
in full force and effect until [DECEMBER 31 OF THE LAST YEAR OF THE EXEMPTION(s)*l ,20_ (or,
until the end ofthe term, period or periods as described in OAR 123-070-1600). .
['" for enterprise zone businesses]
[(1)] APPROVED
[(A)] CONTACT AGENCY:
[(B)] EMPLOYER:
By [xl
By [xl
Name
Name
Title
Title
Unemployment Insurance Account Number
Date
Address
Phone
Address
Phone
[(2) The First Source Agreement under this rule may be substantively modified or amended only as described in OAR 123-070-1800.]
[(3) A Benefitted Business's perfonnance under the First Source Agreement is not, in and of itself, a condition for the Benefitted
Business to receive the benefit of a program listed under OAR 123-070-1150( I) or (2), except for the following:]
[(a) Compliance with provisions added pursuant to OAR 123-070-1800(3); or]
[(b) Adherence to requirements for data reporting as specified through OAR 123-070-1900(4) and (5).]
[(4) The failure of a First Source Agreement, as entered into by a Benefitted Business, to conform with the stipulations of this division of
administrative rules shall in no way jeopardize the Benefitted Business's status as having entered into a First Source Agreement, so long as the
Benefitted Business takes reasonable efforts to rectify any significant error or omission in the First Source Agreement, as requested by the
Contact Agency, enterprise zone sponsor or [Economic and Community Development] Department, none of which shall be liable in any way
for such an error or omission.]
ATTACHMENT 3 - PAGE 7
E~\-\tb\;, B
Loan ..\gn~0m@R~
State of Oregon
Economic and Community Development Department
Job Creation and Maintenance Report
Number:
Project:
. Borrower:
Contact:
Official Signatory:
Phone:
Phone:
1. Date on which Job Creation/Maintenance Year Begins (Must be no sooner than the
date Borrower Be ins Production and no later than
2. Number of Jobs Maintained During Year Beginning on Date Specified in Paragraph
1 *Total hours paid to employees at ,Oregon facility during the year, divided by
2,080
3. Average Salary of Jobs.
a. Total wa es/salaries
b. Divide 3 a. b 2.
4. Payroll Records
Attach payroll records for each month for the period in 2. above
Each month's records should contain the following for each employee at Borrower's
facility:
1. Hours worked
2. Rate per hour
3. Gross Wages
5. Signatures
I certify and affirm that all statements and information contained herein are true and complete to the besi of
my knowledge.
, Oregon
4. Federal Income Tax withheld
5. State Income Tax withheld
6. Other withholdings
"7. Net Pay
Signature of Preparer
Official Signature
Printed Name of Official Signatory
Printed Name of Preparer
Date
Date
* lIHours paid" for an hourly employee, means all hours for which the employee was actually paid including sick
leave and/or vacation if the employee. receives his hourly wage for those hours. IIHours paid" for a salaried
employee shall not exceed 2,080 hours per year and will be calculated on a pro-rata basis if the salaried employe~
is not employed for the entire one-year period specified above or if the salaried employee is less than a full-time
employee. Notwithstanding the foregoing, if the salaried employee is paid additional sums for hours worked over
.2,080 hours per year, those hours above 2,080 for which the employee is paid may be included in the totalllhours
paid."
Strategic Resf?rve Fund Loan Agreement
Contract ServicesIMOU Exhibit B. job report. Project Number 03-05-376 Page 1 of 1
"~" _____Exhibit B__~_ - "
ATTACHMENT 3 - PAGE 8