HomeMy WebLinkAboutPermit L94-0098 - MCGARVEY ROBERT - GT DEVELOPMENT EXPANSION GRANTL94 -0098
6437 S. 144TH ST.
G.T. DEVELOPMENT
GRANT
Date: 1- Aug -94 09:09
From: DIANA -P DIANA PAINR)
To: JACK,RICK
Copies -to: DIANA -P
Subject: GT Development
Message -id: CEBB3C2E01AEAEAE
I spoke with Bob McGarvey of GT Development this morning.. His company does
not plan to pursue their project at this time, although they are planning to
get their permits. I told him that there are still significant problems with
the building permits, and the shoreline permit hasn't been approved, so he
might want to consider not getting the permits at this time. Apparently the
company is growing rapidly and they need to put their $$ into the company.
They also need more space right now, so are planning to lease some space in
the short term.
He said they might build within the next year or two. He said that they might
cut costs by not fitting out the offices, or something. I
warned him that permits have expiration dates, and that if he changes any
thing on the exterior, for example the landscaping, that it will invalidate
the shoreline and BAR permit.
LoutiivulL _AGENDA JIWOPSIS
Initials
Meet n: Date
Prepared b
Ma or's review
Council review
7 18 94
•
ITEM NO.
TEM'
RMA
•
• • • • ".• • "•
CAS Number:
Original Agenda Date:
Agenda Item Title: •
Resolution in support of GT Development Corp. bond. financing
Original Sponsor:
Council
Admin.
Timeline:
Sponsor's Summary:
A resolution in support of the King County Economic Enterprise Corporatino's proposal
to issue a bond for tax-exempt financing for the GT Development Corporation expansion.
Recommendations:
Sponsor:
. Committee:
Administration:
Cost Impact (if known):
Fund Source. (if known):
Meeting Date
7/11/94
Action
Draft resolutin reviewed by Community & Parks Committee.
7/18/94
Meeting Date
7/11/94 •
Attachments
A.
B.
C.
Memo to Mayor Rants
Memo to CAP
Letter from Mayor Rants to Moser
Resolution
To:
From:
Subject: King County Economic Enterprise Corporation Revenue Bond
for GT Development Corporation expansion
Date: July 12, 1994
City of Tukwila
John W. Rants, Mayor
Department of Community Development Rick Beeler, Director
Mayor Rants
Rick Beeler
MEMORANDUM
Attached, for your approval, is a resolution in support of the King County Economic
Enterprise Corporation's proposal to issue a bond for tax - exempt financing for the GT
Development Corporation in Tukwila for an expansion of their manufacturing facilities. GT
Development manufactures component parts for heavy duty trucks, The revenue bond will
allow GT Development to expand their manufacturing facility, as well as add engineering,
research, administration and support space. GT's expansion will, in turn, create new jobs
in Tukwila and bring additional revenues to the City.
GT Development Corporation has been working with the City for several months on their
expansion proposal. They currently own a building and property at 6437 South 144th Street.
The expansion will add approximately 60,000 square feet of floor area to their existing
facility. The Board of Architectural Review has approved the project, and a Mitigated
Determination of Non - Significance has been issued in response to their environmental
checklist. Staff has been working with GT Development's, consultants to complete their •
landscape plan, per instructions from the Board of Architectural Review, and their Shoreline
Substantial Development permit. These permits will be completed before issuance of
building permits.
On July 11, 1994, a draft of the attached resolution in support of the project was reviewed
by the Community and Parks, Committee. The Committee recommended approval of the
resolution.
6300 Southcenter Boulevard, Suite #100 • Tukwila, Washington 98188 • .(206) 431-3670 • Fax (206).431:3665
To:
From:
Subject:
MEMORANDUM
Community and Parks Committee
Rick Beeler
King County Economic Enterprise Corporation Revenue Bond for GT
Development Corporation project
Date: July 11, 1994
Enclosed please find a draft resolution in support of the King County Economic Enterprise
Corporation's proposal to issue a bond for tax - exempt financing for the GT Development
Corporation in Tukwila for an expansion of its manufacturing facilities. Although the
Enterprise Corporation approved issuance of a nonresource revenue bond to GT
Development in a meeting on June 15, 1994, they need a resolution from the City in support
of this action.
GT Development Corporation has been working with the City for several months on a
proposal to expand their existing facilities at 6437 South 144th Street. At this point in time,
their planning permits are substantially complete. The Board of Architectural Review has
approved the project, and a Mitigated Determination of Non - Significance has been issued
in response to their environmental checklist. Staff has been working with GT Development's
consultants to complete their landscape plan, per instructions from the Board of
Architectural Review, and their Shoreline Substantial Development permit. These permits
will be completed before issuance of building permits.
Mayor Rants wrote a letter of support to Ray Moser, Chief of the Regional Policy and
Programs Section of the King County Planning and Community Development Division, on
June 3, 1994 (attached). In this letter, he wrote that the project represents a positive step
in the redevelopment of the Interurban Corridor, and is consistant with the City's economic
development strategy to retain jobs and expand industry in the City.
It is intended that, with the approval of the CAP Committee, this resolution will appear on
the consent agenda for the City Council at their July 18, 1994 meeting.
1906
, City of Tukwila
June 3, 1994
6200 Southcenter Boulevard • Tukwila, Washington 98188 John W. Rants, Mayor
Mr. Ray Moser, Chief
Regional Policy and Programs Section
King County Planning and Community Development Division
Parks, Planning and Resources Department
Smith Tower Building
506 Second Avenue, Room 707
Seattle, WA 98104
Dear Mr. Moser:
I am writing to express support for the GT Development redevelopment project. City of
Tukwila staff have worked closely with representatives from GT Development on this
proposal. We believe the project will be beneficial to the .City of Tukwila and all of South
King County. The building project itself represents a positive step in_the redevelopment of
the Interurban Corridor. In keeping with our economic development strategy, we encourage
the retention of existing jobs in the city and • assist, wherever possible, the expansion of
industry.
If you have any questions, please feel free to contact Jack Pace, Senior Planner in the
Department of Community Development, at 431 -3686. Thank you for the opportunity to
support this project.
Sincerely,
hn W. Rants
Mayor
JWR /so
moserkjwr
cc: Robert S. McGarvey
Phone: (206) 433-1800 • City Hall Fax ;206) 133.1833
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWJLA, WASHINGTON, approving the issuance of a tax -
exempt nonrecourse revenue bond of the King County
Economic Enterprise Corporation for the benefit of G.T.
Development Corporation pursuant to RCW 39.84.060.
WHEREAS, the Legislature of the State of Washington has provided for the creation
of public corporations by municipalities, including counties, pursuant to Chapter 300, Laws
of Washington, 1981 (Regular Session) codified as Chapter 39.84 RCW, as amended (the
"Act "), for the purpose of facilitating economic development and employment opportunities
in the State of Washington; and
WHEREAS, pursuant to the Act, the King County Economic Enterprise Corporation
(the "Enterprise Corporation ") was formed in order to carry out the purposes of the Act;
and
WHEREAS, the Enterprise Corporation has recieved an application from G.T.
Development Corporation (the "Company") for the purpose of providing for the construction
of additional manufacturing facilities at 6437 South 144th Street, Tukwila, Washington (the
"Project "), which is within the boundaries of the City of Tukwila, Washington (the "City");
and
WHEREAS, the Enterprise Corporation and its bond counsel have reviewed the application
of the Company and have determined that the Project qualifies as an "industrial
development facility" within the meaning of the Act; and
WHEREAS, the Enterprise Corporation scheduled a special meeting and approved the
issuance of a nonrecourse revenue bond in an amount not to exceed $2,800,000 (the 'Bond")
on June 15, 1994; and
WHEREAS, the Act provides that each county, city or town within whose planning
jurisdiction the Project is to be located must approve the issuance of revenue bonds by the
Enterprise Corporation for such Project; and
WHEREAS, the City finds that planning permits for the Project are substantially
complete and will be completed prior to issuance of buildings permits; and the Project is
expected to meet all Tukwila code requirements prior to issuance of a certificate of
occupancy; and
WHEREAS, the Enterprise Corporation, as the issuer of the Bond for the Project, has
requested the approval of the City pursuant to the Act; and
WHEREAS, the City has been assured that there will be no financial liability accruing
to the City as a result of such approval and that this approval shall constitute approval solely
for the purpose of permitting the Enterprise Corporation to proceed with the issuance of
the Bond;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1: The City, pursuant tot Chapter 39.84 RCW, does hereby approve the
issuance of the Bond by the EnCrise Corporation for the purposes of fina& :g the Project
under the Act.
The Bond is anticipated to be issued by the Enterprise Corporation in the aggregate
principal amount of not to exceed $2,800,000 pursuant to a resolution of the Board of
Directors of the Enterprise Corporation for the purposes of financing the Project under the
Act.
The proceeds of the Bond will be loaned to the Company, pursuant to a loan
agreement with the Enterprise Corporation, and used for the purposes of paying all or a
part of the costs of the Project within the boundaries of the City. The Bond shall be payable
solely from the Company's repayments of the loan under the loan agreement. The Bond
shall not constitute an obligation of the City, and no tax funds or other revenues of the City
shall be used to pay the principal of, premium, if any, or interest on the Bond. Neither the
faith and credit nor any taxing power or revenues of the City shall ever be pledged to pay
the principal of, premium, if any, or interest on the Bond.
Section 2. This resolution is intended solely to constitute approval of the issuance of
the Bond within the meaning of RCW 39.84.060. This approval shall not in any
way be deemed to be a review or final approval of any development permit for the Project
which may be in process, or may be submitted at a future date.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, at a regular meeting thereof this day of
, 1994.
Steve Mullet, Council President
ATTEST /AUTHENTICATED:
Jane E. Cantu, City Clerk
APPROVED AS TO FORM:
By:
Office of the City Attorney
Filed with the City Clerk:
Passed by the City Council:
Resolution Number
•
-For Corporation /County Use Only -
Relating to Application No.
Name of Applicant
•Date of Application
IDEMNIFICATION AND COMPENSATION AGREEMENT
THIS AGREEMENT, entered into as of the 22nd day of APRIL, , 1994 ,
between the King County Economic Enterprise Corporation created by King County,
Washington (the "County "), under the provisions of RCW Ch. 39.84, as amended
(herein called the "Corporation "), and GT DEVELOPMENT CORPORATION
(herein called the "Applicant "), in connection with the application for
industrial development bond issuance submitted on APRIL 22 , 1994
by the Applicant to the Corporation.
Section 1. Background. The Corporation has entered into an agreement
with the County. Under the agreement, the County performs certain services for
the Corporation including, among others, reviewing applications for industrial
development bond financing and assisting the Corporation in the issuance of
nonrecourse revenue bonds and servicing, if any, required subsequent to the
'issuance of such bonds.
Section 2. Services to be Provided.by Corporation /County. The County
on behalf of the Corporation, has recieved the Applicant's application for the
financing of an industrial development facility (the "Project "). If the County
and bond counsel determine that such application may be approved, bond counsel
will prepare a resolution for consideration by the Corporation (the "Official
Action Resolution "). The County will assist in preparation and presentation of
1-1ECEIVED
MAY 2 5 1994
COMMUNITY
f)PM MT
the Official Action Reso ("ion.
Subsequent to the adoption of the Official Action Resolution, the County
and the Corporation will cooperate with the Applicant, its underwriter, banker,
and counsel in arranging for the financing of the Project through the issuance
of nonrecourse industrial development bonds of the Corporation (the "Bonds ").
The County and the Corporation have no authority or responsibility to assist in
locating a purchaser for the Bonds.
Section 3. Fees and Expenses.
A. Nonrefundable Application Fee. At the time of submitting its applica-
tion for industrial development bond issuance, the Applicant shall pay a
Nonrefundable Application Fee based on the following schedule:
Principal Amount
Of Bonds Reauested
$0 - $1,000,000
$1,000,001 - $8,000,000
Over $8,000,000
Application Fee
$1,000
$1,000 plus .OSN of
principal amount
$5,000
In addition to the Nonrefundable Application Fee, the Applicant shall pay the
Corporation for all expenses, direct or indirect, incurred by the Corporation in
administering and servicing the application to the extent such fees exceed the
Nonrefundable Application Fee accompanying the application. Such expenses shall
be paid within fifteen (15) days of billing by the Corporation. It is the
intention that the Applicant must reimburse the Corporation for all expenses of
administering and servicing the application, including bond counsel fees, if
applicable, whether the application is granted or denied to the extent that the
Nonrefundable Application Fee does not cover such expenses.
In addition, the Applicant shall pay all costs, direct or indirect,
following items: gr
(i) fees o bond counsel;
(ii) fees of financial consultants or bond underwriters;
(iii) costs of printing and execution of bonds;
(iv) fees of engineers, economists or other special consultants in
connection with the issuance of the Bonds;
(v) fees of trustee;
(vi) fees of local counsel; and
(vii) travel expenses of the Directors and staff if travel is required
or requested by the Applicant.
The Corporation and /or the County will, upon request, provide or cause to
. be provided to the Applicant any data or information which may be reasonably
required to verify any of the costs and expenses and fees enumerated above. To
the extent that the costs, expenses and fees enumerated above are not or may not
be paid or reimbursed from the proceeds of the Bonds, the Applicant shall pay
the same within fifteen (15) days of billing.
Annual Service Fee. In addition to the fees above mentioned,
Applicant sha ay to the Corporation for servicing the accou , an Annual
Service Fee. The Annu Service Fee shall be determi -• as follows:
1. One -tenth of one percen /10%) of -- outstanding.principal balance of
unredeemed Bonds on each anniversar. .at
f the issue, payable in advance, com-
mencing with the date of " uance of the Bonds an
n each anniversary date
thereafter. Such -es shall cover the annual costs of t - Corporation,
including D ectors' meetings and costs (including Directors' i urance), staff
costs f any, auditing fees and costs, and any and all other genera - erhead
penses of the Corporation.
2. In addition, the Applicant shall pay any and all costs attributable
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INSERT B., PAGE 3
B. Annual Service Fee; Reimbursement of Certain Costs. In
addition to the fees above mentioned, the Applicant shall pay to
the Corporation for servicing its account the following fees and
costs:
1. The Applicant shall pay an Annual Service Fee, in
arrears, equal to the lesser of (a) one -tenth of one percent
(1/10 %) of the outstanding principal balance of unredeemed Bonds on
each December 31 and (b) the Applicant's pro rata share (determined
as hereafter provided) of the costs of the Corporation incurred by
the Corporation during each calendar year, including without
limitation reasonable reserves for expenses established by. the
Board of Directors, Directors' meetings and costs (including
Directors' insurance), staff costs, auditing fees and costs, legal
fees and costs and any and all other general expenses of the
Corporation. For purposes of the foregoing clause (b) the
Applicant's pro rata share of such costs shall be determined by
multiplying the total amount of such costs for the calendar year in
question by a fraction, the numerator of which is the average
monthly principal balance of the Bonds outstanding during such
calendar year and the denominator of which is the aggregate average
monthly principal balance of all nonrecourse industrial development
bonds issued by the Corporation and outstanding during such
calendar year. The Corporation shall bill the Applicant annually
for the Applicant's pro rata share of such costs following the end
of each calendar year.
71813.1
'among the various applitts for financing and shall be billed from time to time
by the Corporation as costs are incurred.
2. In addition, the Applicant shall pay any and all costs attributable
specifically to the outstanding Bonds. Such costs will be billed from time to
time as the costs are incurred.
3. The foregoing fees and reimbursement of costs and expenses shall be
paid within fifteen (15) days of billing by the Corporation.
Section 4. Idemnification. The Applicant agrees that it will at all times
idemnify and hold harmless the Corporation and the County against all losses,
costs, damages, expenses and liabilities (collectively referred to herein as
"Losses ") of whatsoever nature (including but not limited to attorneys' fees,
litigation and court costs, amounts paid in settlement, and amounts to discharge
judgments) directly or indirectly resulting from, arising out of, or related to
one or more Claims, as hereinafter defined, even if such Losses or Claims, or
both, directly or indirectly result from, arisen out of, or relate to or are
aserted to have resulted from, arisen out of or related to, in whole or in
part, one or more negligent acts or omissions of the Corporation and /or the
County or its or their officers, commissioners, employees, agents, servants or
any other party acting for or on behalf of the Corporation and /or the County.
The.term "Claims" as used herein shall mean all claims, lawsuits, causes
of action, and other legal actions and proceedings of whatsoever nature,
including but not limited to claims, lawsuits, causes of action, and other legal
actions and proceedings, involving bodily or personal injury or death of any
person or any damage to property (including but not limited to persons employed
by the Corporation and /or the County, the Applicant or.any other person and all
property owned or claimed by the Corporation and /or the County, the Applicant,
any affiliate of the Applicant or any other person) or involving damages
-4-
relating to the issuant offering, sale or delivery of the Bonds brought
against the Corporation and /or the County or to which the Corporation and /ar the
County is a party, even if groundless, false or fraudulent, that directly or
indirectly result from, arise out of or relate to the design, construction,
operation, use, occupancy, maintenance or ownership of the Project or any part
thereof or from the issuance, offering, 'sale or delivery of the Bonds or the
terms or covenants thereof. The obligations of the Applicant shall apply to all
Losses or Claims, or both, that result from, arise out of, or are related to any
event, occurrence, condition or relationship, whether such Losses of Claims, or
both, are asserted. Neither the Corporation nor the County will be liable to
the Applicant for, and the applicant hereby releases the Corporation and the
County from all liability for, all or any part or parts of any Losses or Claims
occurring as a result of injuries, damages or destruction by or to any property
owned or claimed by the Applicant, which losses or claims directly or indirectly
result from, arise out of or relate to the design, construction, operation, use,
occupancy, maintenance or ownership of the Project or any part thereof, even if
such injuries, damages or destruction directly or indirectly result from, arise
out of or relate to, in whole or in part, one or more negligent acts or
omissions of the Corporation and /or the County or its or their officers,
directors, employees, agents, servants, or any other party acting for or on
behalf of the Corporation and /or the County. The Corporatin shall reimburse the
Applicant for payments made by the Applicant to the extent of any proceeds, net
of all expenses of collection, actually received by the Corporation from any
insurance with respect to the loss sustained. The Corporation shall have the
duty to claim any such insurance proceeds and the Corporation shall assign its
rights to such proceeds, to the extent of such required reimbursement, to the
Applicant. In case any action shall be brought against the Corporation in
-5-
respect of which indemn= may be sought against the Applicant, the Corporation
shall promptly notify the Applicant in writing, and the ` .;plicant shall have the
right to assume the investigation and defense thereof including the employment
of counsel and the payment of all expenses. The Corporation shall have the
right to employ separate counsel in any such action and participate in the
investigation and defense thereof, but the fees and expenses of such counsel
shall be paid by the Corporation unless the employment of such counsel has been
authorized by the Applicant. The Applicant shall not be liable for any
settlement of any such action without its consent but, if any such action is
settled with the consent of the Applicant or if there be final judgement for the
plaintiff of any such action, the Applicant agrees to idemnify and hold harmless
the Corporation and the County from and against any Losses by reason of such
settlement or judgement. The provisions of this section shall survive the
expiration or termination of this Agreement.
Section 5. Tax Payment and Idemnification. The Applicant hereby agrees to
pay directly and /or to reimburse the Corporation for any and all taxes,
assessments, licenses, fees, charges and other impositions levied, assessed or
imposed by local, state or federal authorities against the Applicant or the
Corporation based upon the activity of issuing the Bonds or which are measured '
by such Bond financing. Further, Applicant agrees to pay in full before
delinquency all taxes, assessments, licenses, fees, charges, or other imposi-
ition that may now or hereafter be levied, assessed or imposed by local, state,
or federal authorities against the Applicant, the Applicant's activities in
Washington, the Project or against the Applicant or the Corporation resulting
from administration or payment or service of the Bonds including without limita-
tion the current business and occupation tax of the State of Washington and its
political subdivisions. The Applicant, upon request, will exhibit to the
-6-
Corporation official °lceipts therefor. On default under this Agreement, the
tor
Corporation may, at its option, pay out of any unencumbered funds accumulated
under the Bonds, any such sums without waiver of any other right of the
Corporation which accrued by reason of such default of the Applicant; the
Corporation shall not be liable to the Applicant for failure to exercise any
such option. Upon payment by the Corporation of any such amount, the Applicant
shall promptly reimburse the Corporation, and the Applicant hereby agrees to
idemnify and hold the Corporation harmless from any interest, penalty, or other
charge, as well as payment of the principal amount, that may be assessed as a
result of the default of the Applicant in payment of such tax or other charge.
In the event of the passage after the date of the Bonds of any federal,
state or local law for the purpose of imposing a tax, assessment, charge,
license or fee on the Bonds or measured by the Bonds or changing in any way the
law now in force for the taxation of the bonds, the debt evidenced thereby, the
security for such debt or the manner of collection of any such tax so as to
adversely affect the Corporation, then and in such event the Applicant shall
bear and pay the full amount of such a tax or other charge; provided, however,
that if a federal or state tax is assessed against the Corporation upon or
measured by the Corporation's net income from the issuance of industrial deve-
lopment bonds, such income tax shall be the responsibility of and be paid by the
Corporation.
Section 6. Federal Tax Information. The Applicant covenants and agrees to
furnish to the Corporation not later than five (5) days before the adoption of
the final bond resolution with respect to the Bonds, a fully completed Internal
Revenue Service Form 8038, signed by the preparer thereof, with respect to the
Bonds. The Applicant further covenants and agrees that it or its agent will
have the primary responsibility as between or among any preparers for the
overall substantive wuracy of the preparation of the Form 8038. The Applicant
tiL
will hold harmless the Corporation, Bond Counsel, and any purchaser or holder of
the Bonds, against all consequences of any material misrepresentation in or
material omission from such Form 8038.
Section 7. Termination. If twelve (12) full calendar months shall have
elapsed following the date on which the Project was first placed in service as
that term is defined in U.S. Treasury Regulation 1.103- 8(a)(5)(v) and the
Applicant shall not have designated a purchaser of Bonds and recommended terms
for the Bonds, the Corporation shall have the right to give written notice by
postage prepaid, certified or registered mail to the Applicant at the address
set forth in Exhibit "A" hereto, and if the Applicant at the address set forth
in Exhibit "A" hereto, and if the Applicant shall not have designated a
purchaser and recommended terms of the Bonds within thirty (30) days after
giving of such notice then the Corporation . may unilaterally terminate this
Agreement without any liability by it to the Applicant. So long as no Bonds
have been issued and remain outstanding, the Applicant may unilaterally
terminate this Agreement without liability'by it to the Corporation and /or the
County (except for amounts due and owing by it to the Corporation and /or the
County at the time o sermination which shall be.paicY y the Applicant to the
ti.
Corporation at the address set forth in Exhibit "A" hereto specifying therein
the date of termination which may be the date of notice).
IN WITNESS WHEREOF, the King County Economic Development Corporation has
caused its name to be hereunto subscribed and
the year and date first above written.
GT DFVF.T.(nAMFD1T CORPORA ION
has executed this document as of
KING COUNTY ECONOMIC DEVELOPMENT
CORPORATION
By
President
Board of Directors
By:
Title:
Name of Applicant: CHARLES J. GREEN
-9
•
?
GT DEVELOPMENT CORP..
6437 SO. 144th ST.
TUKWILA, WA 98168
Attention:
ROBERT S. McGARVEY
P R E S T O N GATES & E L L I S
ATTORNEYS
June 9, 1994
1 1 0 1994
,/ •.r
C..r 1.... . s'.: E.J
•
Ms. Linda ' ohen
City Att • rney
City • ' Tukwila
6 .0 Southcenter Parkway
ukwila, WA 98188
(
Re: King County Economic Enterprise Corporation Revenue Bond, 1994 (G.T.
Development Corporation Project)
Dear Ms. Cohen:
The King County Economic Enterprise Corporation (the "Enterprise Corporation ") has
received an application for tax - exempt financing from G.T. Development Corporation (the
"Company) for the expansion of its manufacturing facilities at 6437 South 144th Street in Tukwila
(the "Project "). The Company is seeking tax - exempt financing in order to lower its costs of
borrowing, and Seattle -First National Bank has issued a commitment to purchase the bond.
Our law firm is acting as bond counsel for the financing, and we are preparing the bond
proceedings for the Enterprise Corporation. Among the preliminary approvals which must be
obtained prior to the issuance of industrial revenue bonds is the approval of the planning
jurisdiction, RCW 39.84.060. As the project is within the boundaries of the City of Tukwila, the
City Council of the City obtains planning jurisdiction over the project. Therefore, we are required
to obtain the approval of the City Council pursuant to RCW 39.84.060.
While the statute (RCW 39.84.060) is silent' as to the nature and extent of the approval
process, we have attempted to apply it in a manner consistent with the policies of Ch. 39.84. The
statute appears to contemplate more than administrative approval. Therefore, we customarily
obtain the approval of the legislative body of the planning jurisdiction.
We have prepared and enclose a draft resolution which provides, we believe, sufficient
approval for the issuance of the bond by the Enterprise Corporation. Within the text of the
resolution, we have specifically reserved the right and authority of the City to consider
independently any subsequent development permit which may be presented for the project.
A PARTNERSHIP INCLUDING A PROFESSIONAL CORPORATION
A N C H O R A G E • C O E U R D ' A L E N E • Los ANGELES • PORTLAND • SPOKANE • TACOMA • WASHINGTON. D.C.
5000 COLUMBIA CENTER 701 FIFTH AVENUE SEATTLE, WASHINGTON 98104 -7078 PHONE: (206) 623 -7580 FACSIMILE: (206) 623 -7022
Ms. Linda Cohen
June 9, 1994
Page 2
In addition, the resolution contains specific language which provides that the City shall
have no liability under any circumstance for the payment of any debt service on the bond, nor shall
it incur any liability in connection with the project. This language is repetitive of Ch. 39.84 which
specifically states that no public money shall ever be used to pay the debt service on this type of
bond.
If the resolution meets with your approval as well as that of other City officials, we would
appreciate your assistance in adding it to the agenda for consideration by the City Council. If you
believe that it would be helpful for the applicant, a representative of the Corporation, or me to
attend the meeting at which the resolution would be considered, please let us know when the
meeting is scheduled to occur. Following the approval of the resolution, we will need to receive a
certified copy in order to complete the transcript for this issue prior to the issuance of the bond.
Please do not hesitate to call for any additional information on the project or the bond.
Very truly yours,
PRESTON GATES & ELLIS
By
Enclosure
Cynthia M. Weed
cc: Rick Beeler, Planning Director, City of Tukwila V
John McFarland, City Administrator, City of Tukwila
Robert McGarvey, G.T. Development Corporation
Ray Moser, King County Economic Enterprise Corporation
CMWOVB.DOC
RESOLUTION NO.
A RESOLUTION of the City Council of the City of Tukwila,
Washington approving the issuance of a tax - exempt nonrecourse
revenue bond of the King County Economic Enterprise Corporation
for the benefit of G.T. Development Corporation pursuant to
RCW 39.84.060.
WHEREAS, the Legislature of the State of Washington has provided for the creation of
public corporations by municipalities, including counties, pursuant to Chapter 300, Laws of
Washington, 1981 (Regular Session) codified as Chapter 39.84 RCW, as amended (the "Act "),
for the purpose of facilitating economic development and employment opportunities in the State
of Washington; and
WHEREAS, pursuant to the Act, the King County Economic Enterprise Corporation (the
"Enterprise Corporation ") was formed in order to carry out the purposes of the Act; and
WHEREAS, the Enterprise Corporation has received an application from G.T.
Development Corporation (the "Company ") for the purpose of providing for the construction of
additional manufacturing facilities at 6437 South 144th Street, Tukwila, Washington (the
"Project "), which is within the boundaries of the City of Tukwila, Washington (the "City "); and
WHEREAS, the Enterprise Corporation and its bond counsel have reviewed the
application of the Company and have determined that the Project qualifies as an "industrial
development facility" within the meaning of the Act; and
WHEREAS, the Enterprise Corporation has scheduled a special meeting to approve the
issuance of a nonrecourse revenue bond in an amount not to exceed $2,800,000 (the "Bond ") to
be held on June 15, 1994; and
WHEREAS, the Act provides that each county, city or town within whose planning
jurisdiction the Project is to be located must approve the issuance of revenue bonds by the
Enterprise Corporation for such Project; and
WHEREAS, the City finds that the Project is not inconsistent with its Comprehensive Plan
adopted as Ordinance No. 1039 of the City on September 19, 1977; and
WHEREAS, the Enterprise Corporation, as the issuer of the Bond for the Project, has
requested the approval of the City pursuant to the Act; and
WHEREAS, the City has been assured that there will be no financial liability accruing to
the City as a result of such approval and that this approval shall constitute approval solely for the
purpose of permitting the Enterprise Corporation to proceed with the issuance of the Bond;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF TUKWILA, WASHINGTON, as follows:
Section 1. The City, pursuant to Chapter 39.84 RCW, does hereby approve the issuance
of the Bond by the Enterprise Corporation for the purposes of financing the Project under the
Act.
The Bond is anticipated to be issued by the Enterprise Corporation in the aggregate
principal amount of not to exceed $2,800,000 pursuant to a resolution of the Board of Directors
of the Enterprise Corporation for the purposes of financing the Project under the Act.
The proceeds of the Bond will be loaned to the Company, pursuant to a loan agreement
with the Enterprise Corporation, and used for the purposes of paying all or a part of the costs of
the Project within the boundaries of the City. The Bond shall be payable solely from the
Company's repayments of the loan under the loan agreement. The Bond shall not constitute an
obligation of the City, and no tax funds or other revenues of the City shall be used to pay the
principal of, premium, if any, or interest on the Bond. Neither the faith and credit nor any taxing
power or revenues of the City shall ever be pledged to pay the principal of, premium, if any, or
interest on the Bond.
Section 2. This resolution is intended solely to constitute approval of the issuance of the
Bond within the meaning of RCW 39.84.060. This approval shall not in any way be deemed to be
-2-
CMWOV7.DOC 94/06/09
a review or final approval of any development permit for the Project which may be in process, or
may be submitted at a future date.
ADOPTED by the City Council of the City of Tukwila, Washington, this day of
, 1994.
ATTEST:
Clerk
CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON
Steven Mullett, President
and Councilmember
Allan Erik Eckberg, Councilmember
Joan Hernandez, Councilmember
Dennis L. Robertson, Councilmember
Joyce Craft, Councilmember
Dorothy R. DeRodas, Councilmember
Joe H.. Duffie, Councilmember
CMWOV7.00C
CERTIFICATE
I, the undersigned, Clerk of the City Council of the City of Tukwila (the "City "), do
HEREBY CERTIFY:
1. That the attached Resolution No. (herein called the "Resolution ") is a
true and correct copy of a resolution of the City as adopted at a meeting of the City Council of
the City held on , 1994 and duly recorded in my office.
2. That said meeting was duly convened and held in all respects in accordance with
law, and to the extent required by law, due and proper notice of such meeting was given; that a
legal quorum was present throughout the meeting and a legally sufficient number of members of
the City Council of the City voted in the proper manner for the adoption of the Resolution; that all
other requirements and proceedings incident to the proper adoption of the Resolution have been
duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this
certificate.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
County this day of , 1994.
Clerk
[SEAL]
m
JUN 09 '94 08 :44AM KC PLANNING I
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NO. 91 -87
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
'OF FEDERAL WAY, WASHINGTON, APPROVING THE
PROPOSAL OF THE KING COUNTY ECONOMIC
ENTERPRISE CORPORATION TO FINANCE CERTAIN
INDUSTRIAL DEVELOPMENT FACILITIES To SE
LOCATED IN THE CITY OF FEDERAL WAY,
P.1 /2
WHEREAS,. the Xing County Economic Enterprise Corporation,
at the request, of Orion Industries, a Washington non - profit
corporation (the "Company "), is proposing to issue nonrecourse
industrial development revenue bonds not to exceed $1,500,000 to
finance the cost of acquiring, constructing and installing certain
industrial development facilities consisting of an approximately
34,480 square foot sheet -metal product manufacturing facility,
including directly related and ancillary assembly, storage and
office space . (the "Project"), for the Company, which Project has
been substantially completed and is located at 33926 9th Avenue
South in the City of Federal Way, Washington (the "City"); and
WHEREAS, chapter 39.84 RCW requires that, in order to
issue nonrecourse industrial development revenue bonds, such
proposal must ba approved by the City since the City exercises
planning jurisdiction over the area in which the Project is
located; and
WHEREAS, the city Council of the City of Federal Way
finds that City planning requirements for the Project have been
substantially completed and are expected to meet all Federal Way
code requirements prior to issuance of a certificate of occupancy
and that the financing of the Project should be approved under RCW
39.64.060; NOW, THEREFORE,
COPY
S H UN 09 '94 OG 44AM kt PLANNING DIVISION25PM : CITY OF FEDERAL WAY-'PLANNING & CP.2'. V ;; 3
THE CITY COUNCIL OF THE CITY OF FEDERAL WAY HEREBY
RESOLVES AS FOLLOWS:
Section 1. The financing of the Project so proposed
by the King County Economic Enterprise Corporation is hereby
approved by the City to the extent of the requirements of chapter
39.84 RCW.
RESOLVED BY THE CITY COUNCIL OF THE CITY OF FEDERAL WAY,
WASHINGTON, this 19th day of November
TE
CITY OF FEDERAL WAY
�g 5E( MAYOR, DEHRA ER
S'iITY CL N M. SWANS , CMC
APPRO3T,ED AS TO FORM:
Ammommi
TTORNEY, SANDRA ISCOLL
FILED WITH THE CITY CLERK: November 13, 1991
PASSED BY THE CITY COUNCIL: November 19, 1991
RESOLUTION NO. 91 -87
91L2141
—2—
• 1991.
•
C.SING COUNTY ECONOMIC ENTERPRISEL._JRPORATION
APPLICATION FOR INDUSTRIAL REVENUE BOND FINANCING
Please complete and sign this Application and submit 10 copies to:
King County Economic Enterprise Corporation
c/o Planning & Community Development Division
Attn: Ray Moser
Rm. 707, Smith Tower
506 2nd Avenue
Seattle, WA 98104
A. 'Applicant Information
1. Name of Applicant. GT DEVELOPMENT
2. Form of organization (corporation, partnership, sole
proprietorship, etc.). CORPORATION
3. State of incorporation. WASHINGTON
4. Mailing address and telephone number. 6437 SOUTH 144th ST.
TUKWILA, WA 98168 (206)244 -1305
In State of Washington. SAME
At headquarters, if different. SAME
5. Contact person for this project (name, title, address and telephone
number). ROBERT S. McGARVEY, VICE PRESIDENT, SAME ADDRESS
6. Real estate officer (name, title, address and telephone numer).
SAME AS #5
7. Chief financial officer (name, title, address and telephone number).
SAME AS #5
8. Principal executive officers (names, titles, addresses and telephone
numbers). CHARLES J. GREEN, PRESIDENT. SAME ADDRESS
ROBERT S. McGARVEY VP, SAME ADDRESS
RICK RAE, VP- MANUFACTURING
9. Applicant's certiriea public accountants (name, address and telephone
number of firm and individual responsible accountant).
BDO SEIDMAN, 600 UNIVERSITY, SUITE 2400, SEATTLE, WASHINGTON 98101,
(206) 244 -1305, CONTACK: DON AUBREY
10. Applicant's commercial banker (name, address and telephone number of
bank and responsible bank officer). CONTACT: CHRIS BOMGARDNER, SEATTLE FIRST
BANK, EASTSIDE COMMERCIAL BANKING, 10500 NE EIGHTH STREET, SUITE 500,
BELLEVUE, WA 98009 (206) 585 -6194
11. Applicant's legal counsel (name, address and telephone number of law
firm and responsible attorney). PRESTON, GATES & ELLIS, 500 COLUMBIA CENTER,
701 5th AVENUE, SEATTLE, WA 98104. (206) 623 -7580
CONTACT:
LARRY CARTER
12. Applicant's selected bond counsel (firm•name and responsible attorney).
Bond counsel must be selected from the King County Economic Enterprise
Corporation's list of approved bond counsel.
SAME AS # 11
13. Identity of prospective bond purchaser or underwriter (name, address
and telephone number and principal contact for this potential
industrial revenue bond issue).
SAME AS # 10
B. Applicationinformation
The applicant submits the following information and any attached documentation
to the King County Economic Enterprise Corporation (the "Corporation ") for its
review in determining whether to issue industrial development bonds for the
proposed project described herein. The undersigned officer of the applicant
certifies that he /she is familiar with the project, is authorized by the
applicant to provide the following information with respect to it, and that such
information is true and correct to the best of his /her knowledge. The
undersigned agrees to advise the Corporation of any changes in the
information provided and to respond to additional inquiries by the Corporation
prior to any issuance of bonds. (Please attach additional pages if necessary
for any answer.)
1. Identity of Principal User of the Project.
1.1. Give the name of the corporation, partnership or other person
or entity that will be the purchaser or lessee of the project
(the "company "). GT DEVELOPMENT
1.2. Name each and'every corporation, partnership, entity,
individual or group of family members to which the company
is related:
(a)- through a parent - subsidary relationship,
(b)- through a control relationship involving the ownership of
more than 50 percent in value or voting power of the company's
stock or
(c)- through a partnership or joint venture regardless of the
percentage interest in capital or profits.' Each person or
entity identified in (a) - (c) is designated a. "related
person" for purposes of this application.
SEE ATTACHED
1.3. Give a brief narrative of the company's history, including length
of time in business, type of business in which engaged, and major
suppliers and customers. Include the company's Standard
Industrial Classification (SIC) Number, if known.
SEE ATTACHED
1.4. List other plant locations. N/A
1.5. If the applicant is different from the company which will be the
principal user of the project, please identify the relationship
betweeen the applicant and the company. NA
1.6. State whether the company is listed on any securities exchanges
and, if so, identify the exchange(s). NO
1.7. State whether the company is registered under the Securities
Exchange Act of 1934 and, if so, attach copies of the company's
annual report to shareholders for the three most recently
completed fiscal years of the company. NO
1.8. If the company is not listed on any securities exchange, give the
names and addresses of all stockholders'who hold 10% or more of
the company's issued and outstanding stock.
SEE ATTACHED
1.9. Show the type and amount of existing bonded or institutional
indebtedness of the company and identify and summarize all co-
venants and commitments contained in existing loan agreements,
mortgages, indentures and other instruments that restrict the
freedom of the company to incur debts, create liens or convey
assets. SEE ATTACHED
1.10. Attach evidence of financial stability. Evidence of financial
stability can be audited financial statements, unaudited
accountant's reports, individual income tax returns (for sole
proprietorships or partnerships), corporate income tax returns, a
bank letter of credit, bank commitment letter to purchase the
bonds, or any other materials demonstrating financial condition or
solvency. Documents for the three most recently completed fiscal
years should be submitted, if applicable.
SEE EXHIBIT 1.10
1.11. Outline the company's capacity and program, including projected
cash fl:wa, tt, SE.; Vi t- re.ven ue uviia debt that would arise from
the proposed project. SEE EXHIBIT 1.11
1.12. Identify the institution (bank, underwriter firm or insurance com-
pany) which has indicated interest in purchasing the bonds when
issued, and attach correspondence from that institution confirming
such interest. SEAFIRST NATIONAL BANK
SEE EXHIBIT 1.10
2. Description of Proposed Project.
2.1. Briefly describe the proposed project for which revenue bond
financing is requested, including its functions and principal com-
ponents. (Please attach a copy of any capital job request or
other summary prepared for the company's internal use). Also, if
financing for pollution control facilities is requested, please
give details on the type of pollution and methods of control.
SEE ATTACHED
2.2. State whether the project will be located wholly within the boun-
daries of any incorporated jurisdiction, and give the proposed
location of the project, including street address or other common
designation and legal description. 6437 SOUTH 144th ST.
TUKWILA, WA, KING COUNTY
2.3. With respect to timing of the proposed project:
2.3.1. give the target date for commencement. 7/16/94 CONSTRUCTION
2.3.2. give the target date for completion. 2/28/94
2.3.3. give the intended owner of the site and the date on which
the site was or will be acquired. GT DEVELOPMENT
2.3.4. if the project involves phased developement please
explain. COMPANY WILL INITIALLY DEVELOP 57,000 FT. OF BUILDING
SPACE WITH FUTURE EXPANSION CAPABILITY OF 61,000FT.2
2.4. State whether the project is a new facility, an addition to an
existing facility, or a replacement or renewal of an existing
facility. If the project is an addition to, or a replacement or
renewal of an existing facility, please describe the existing
facility and explain the addition, replacement or renewal in
detail. SEE ATTACHED
2.5. Describe in general how the project will contribute to economic
developement in King County and in the State of Washington. (See
also item 4.4 following).
SEE ATTACHED
3. Costs of Proposed Project.
3.1. Specify, by principal components, the current estimates of the
costs for the acquisition and construction of the project,
including the cost of:
Land $
Site preparation • $491,650
Leasehold interest
Utilities (on or off site) $ 93,247
Water $ 25,622
Electricity 2,7U5
Gas
Sewer 63,838
Other (Specify) 1,082
Building(s)
Equipment
Interest and taxes during construction
Professional fees
Architect $ 76,000
Engineering & Planning 25,000
Surveys 5,000
Legal 7,000
Other (Specify) PERMIT 15,000
Financing
Prepaid expenses, including rent
Commitment fees and deposits
Other (describe)
Total Net Bond Proceeds
Subtotal $ 584,897
Subtotal
$ 1,867,000
50,000
50,000
128.000
$ 2,679,897
28,000
$ 2,907,897
3.2. Describe purchases, preparatory work or progress on construction,
if any, made to date toward acquisition and construction of the
project, giving dates and amounts of costs incurred and whether or
not paid at this time. SEE ATTACHED
3.3. If the price, fee or other charge of any seller of real estate or
personal property or of any contractor, subcontractor or supplier
of goods, services or equipment for the project who is related,
directly or indirectly, to the company is to be financed out of
the bond proceeds, identify the person and the relationship, the
nature of the item, the person's anticipated profit, and the date
that person first paid incurred any expenses in connection with
the transaction. N/A
4. Requirements and Effects of Proposed Project.
4.1. Site Requirements (or description if existing)
4.1.1. Geographic area /location
SEE LEGAL DESCRIPTION EXHIBIT 2.4
4.1.2. Type of project (e.g., manufacturing of aircraft parts).
Describe in detail.MANUFACTURING OF COMPONENT PARTS
FOR HEAVY DUTY TRUCKS
4.1.3. Size (acreage) 4.1 ACRES
4.1.4. For new construction:
1. Soil conditions (loading weights)
SOIL BEARING CAPACITY IS 3,000 -4,000 LBS.
BUILDING FLOOR LOADS FOR SLAB ON GRADE AREAS 125 -250 POUNDS
2. Transportation needs (truck, rail, air, water)
TRUCK
3. Parking lot size (number of cars or trucks)
134 PARKING STALLS
4.2. Improvements
4.2.1. Office size SEE 2.1, AND EXHIBIT 2.4
4.2.2. Building size 61,560 S.F, FOOT PRINT IS 49,382 S.F.
M.c.Y. rdt . deed mice tuw-evdru IF dDOVe)
4.3 Utilities / Enerjy Requirements
4.3.1. Give amount of water required (volume, quanlity)
ER 103,400 GALLONS
.4.3.2. Amount and type of fuel required for processing and space
heating (KW, KWH, voltage, vaults, underground tanks)
NATURAL GAS 19,300 CCP
;`4.3.3. Amount of electrical power required (KW, KWH, voltage)
1,113,090 'KWH
4.3.4. aste so . i d, i qu1 d SOLID 163. TONS zvo L1Vu LD
4.3.5.
•
oxic or hazardous materia s type, quantity, and method of
handling) WASTE COMBUSTIBLE LIQUID, 1,970 LBS, RECYCLED.
4.3.6. Identify other anticipated demands on public utilities and
services (streets, sewer, parks, police, etc.)
NO NEW INFRASTRUCTURE WILL BE REQUIRED
4.3.7. Does the project meet the requirements of the King County
Energy code adopted pursuant to Ordinance 4753?
YES
4.3.8. Impact on King County Tax Base:
Additional State of Washington sales and /or business &
occupation taxes to be generated by the proposed project.
SEE ATTACHED
Additional real and personal property taxes to be generated
by the proposed project._
Other taxes to be generated by the proposed project.
4.4. Labor and Operations
4.4.1. Total number in company 139
4.4.2. How many new permanent jobs will the project create in King
County? APPROXIMATELY 154 WITH SALES GLUWTR
State of Washington? SAME
4.2.3. Yard storage
OUT DOOR STORAGE 500 S.F.
4.2.4. 'arking area size disregard i answered above
4.3 Utilities /Energy Requirements
4.3.1. Give amount of water required (volume, quanlity)
4.3.2. Amount and type of fuel required for processing and space
heating (KW, KWH, voltage, vaults, underground tanks)
4.3.3. Amount of electrical power required (KW, KWH, voltage)
4.3.4. Waste (solid, liquid)
4.3.5. Toxic or hazardous materials (type, quantity, and method of
handling) WASTE COMBUSTIBLE LIQUID, 1,970 LBS, RECYCLED.
4.3.6. Identify other anticipated demands on public utilities and
services (streets, sewer, parks, police, etc.)
NO NEW INFRASTRUCTURE WILL BE REQUIRED
4.3.7. Does the project meet the requirements of the King County
Energy code adopted pursuant to Ordinance 4753?
YES
4.3.8. Impact on King County Tax Base:
Additional State of Washington sales and /or business &
occupation taxes to be generated by the proposed project.
SEE ATTACHED
Additional real and personal property taxes to be generated
by the proposed project.
Other taxes to he generated by the proposed project.
4.4. Labor and Operations
4.4.1. Total number in company 139
4.4.2. How many new permanent jobs will the project create in King
County? APPROXIMATELY 154 WITH SALES GROWTH
State of Washington? SAME
4.4.3. Local hires (number) at proposed project.
293 TOTAL EMPLOYEES WITH SALES GROWTH
4.4.4. ransfer personne number at proposed project.
N/A
4.4.5. Construction - related jobs. NUMBER UNKNOWN
4.4.6. 'Secondary /spin -off jobs. Please explain.
POSSIBLE ADDITIONS TO VENDOR'S STAFF.
NUMBER UNKNOWN
4.4.7. Will the project involve relocation of operations now
conducted in existing facilities elsewhere? If sd, please
explain, including location of existing facilities whose
operations will be relocated. WE ARE CURRENTLY LEASING
SPACE ACROSS THE STREET AND WILL MOVE THEM TO THE NEW
BUILDING
4.4.8. Approximate number of positions in each labor category at
proposed project (clerk, assembler, machinist, etc.)
SEE ATTACHED
4.4.9. Number of shifts and employees per shift.
2 SHIFTS CURRENTLY, 99 ON DAYS AND 40 ON SWING.
4.4.10. Any special labor requirements. NO,
4.4.11. If so, in what categories?
N/A
4.4.12. Describe efforts to hire employees trained by local man-
power programs. WE WORK WITH THE EMPLOYMENT SECURITY
DEPARTMENT, GREEN RIVER COMMUNITY COLLEGE, AND RENTON
VO TECH TO POST ENTRY LEVEL POSITIONS
4.5 Shipping Activity
4.5.1. Sources of raw materials or commodities utilized in
production process at proposed project. PRINCIPALLY U.S.
SOURCES (i.e; PORTLAND. KENT, WISCONSIN....)
4.5.2. Export volume $1,500,000.
4.5.3. Import volume NONE DIRECTLY. VOLUME IMPORTED BY GT'S
SUPPLIERS IS NOT KNOWN.
4.5.4. Use of marine or commercial aviation facilities (if appli-
cable) N/A
4.5.5. Number and size of trucks per day each way
11 -13 CLASS "8" TRUCKS
2 -5 CLASS "6 -7" TRUCKS
4.5.6. Number of rail cars per day each way
NONE
4.5.7. Anticipated main access routes SR 181 INTERURBAN AVENUE NORTH&
SOUTH; INTERSTATE "5 "; INTERSTATE 405
4.6. Zoning /Land Use Policies
4.6.1. Will an environmental impact statement be required for the
project? NO
If so, please describe status.
4.6.2. Please describe the accommodation proposed for additional
parking traffic. MANSPORTATION MITIGATION FUNDS
WILL BE PROVIDED TO THE CITY.
4.6,3. Please describe other — neighborhood impacts.
CITY ANTICIPATES.ISSURING A MITIGATED DETERMINATION OF
NON SIGNIFICANCE.
4.6.4. Is the project consistent with municipal zoning ordinances
or the King County Zoning Code? YES
4.6.5. Have building permits been obtained? NO
If not,explain current status and anticipated issue date.
APPLIED FOR SHORELINE PERMIT, SUBSTANTIAL DEVELOPMENT
PERMIT, AND DESIGN REVIEW.
5. Other Possible Principal Users.
5.1. Name any tenant, sublessee or other occupant that will occupy 10
percent of the gross or net rentable space of the project or for
whose rent for its space for any year will or may equal 10 percent
of the gross rent receivable by the company for that year. (Count
tax reimbursement, escalation charges and common area payment, if
any, as rent.) N/A
5.2. Identify each tenant, or other occupant that is or may be
obligated to pay contingent rent for any year in any
amount. N/A
5.3 Name each and every related person identified in Section 1.2 that
owns or has a right to occupy any facility located in the
jurisdiction or a contiguous jurisdiction, and give the nature and
location of its facility. N/A
5.4 Identify any purchaser of goods or services to be produced at the
proposed project who will or may contract to purchase more than 10
percent of the project's production, and describe the contractual
arrangement with the purchaser.
SEE ATTACHED.
6. Prior Exempt Small Issue.
If any prior industrial revenue bonds have been issued to finance any
facility that is now used by the company or other principal user or a
related person, identified in Section 1.2, identify the facility, the
date of issue of the bonds, and the original amount and present balance
of the prior bond issue. N/A
APPLICATION DATED: APRIL 22, 1994
APPLICATION FEE ATTACHED: YES X NO AMOUNT $ 2,353.95
INDEMNIFICATION AND COMPENSATION AGREEMENT ATTACHED :* YES x NO
SIGNED ORIGINAL AND NINE (9) COPIES SUBMITTED: YES x NO
CHIEF EXECUTIVE OFFICER'S NONDISCRIMINATION CERTIFICATION ATTACHED:
YES NO
SIGNED:
Name of Applicant:
By (Signature)
Title
Typed Name • ROBERT S. McGARVEY
GT DEVELOPMENT CORP.
VICE PRESIDENT, FO
*The King County Economic Enterprise Corporaton requires that the Applicant
enter into an Indemnification and Compensation Agreement with the Corporation.
the Agreement is a part of the Information and Application Package.
NONDISCRIMINATION POLICY
King County Ordinance 6628, which creates the King County Economic Enterprise
Corporation, requires that firms receiving industrial revenue bond financing not
engage in discriminatory employment practices. In order to comply with this
policy, the Corporation requires the Applicant's Chief Executive Officer to
certify that the Applicant engages in nondiscriminatory employment practices.
The certification below must be completed and signed in order for the
application to be processed.
/PHIEF,EC
FFICER'S CERTIFICATION
�/-G�. �C — / , the
(Name of Chief Ex utiv Officer) (Title)
of [� % �� �•✓C , hereby certify that the
Applicait Firm Name
applicant firm'has a nondiscrimination policy. I further certify that applicant
firm does not discriminate in employment against any person on the basis of
race, color, creed, national *origin, sex, age, marital status, or the presence
of any mental, physical, or sensory handicap, and complies with R.C.W. 49.60,
Title VII of the Civil Rights Act of 1964 and other applicable federal and state
laws regarding nondiscrimination in employment.
f
CHARLES J. GREEN
(Typed Name)
CHAIRMAN, PRESIDENT
(Title)
GT DEVELOPMENT. CORP.
(Name of Applicant)
4/22/94
(Date)
EXHIBIT 1.10
AlSEAFIRSI
Christine M. Bomgardner
Vice President
Eastside Commercial Banking
March 11, 1994
Mr. Charles Green, President
G.T. Development Corporation
6437 S. 144th St.
Tukwila, Washington 98168
Subject: Loan of up to $2,600,000 (the "Loan ") for the construction and long-
term financing of a manufacturing facility at 6437 S. 144th St., Tukwila,
Washington (the "Project ")
Dear Mr. Green:
Upon the acceptance below by G.T. Development Corporation ( "Borrower "), Bank
commits to make the Loan (the "Commitment ") on the following terms and
conditions:
1. Loan Terms. The Loan shall be in the form of purchase by the Bank of a tax -
exempt industrial revenue bond (the "Bond ") to be issued by a municipal authority
authorized to issue tax - exempt bonds for construction of the Project (the "Authority ").
The basic loan terms shall be as follows:
Borrower: G.T. Development Corporation, a Washington
corporation.
Guarantor: NONE.
PG.1
Loan Amount: Up to $2,600,000.
Interest Rate: For the first 10 years, a fixed rate, to be established
at closing, 150 basis points in excess of Bank's
Fixed Rate Index, as determined immediately prior to
closing, adjusted for tax - exempt status. At the 10th
year and at the 20th year (each a "Reset Date "), the
Bond shall reprice at a fixed rate equal to the Bank's
Tax - Exempt Index Rate plus 150 basis points, as .
determined at the Reset Date. Each interest rate is
Seafirst Bank 10500 Northeast Eighth Street/Suite.500 /Post Office Box 3217 /Bellevue, Washington 98009
Telephone (206) 585-6194 FAX (206) 585-6393
Mr. Charles Green
G.T. Development Corporation
March 11, 1994
Page 2
EXHIBIT 1.10
subject to adjustment to taxable equivalent in case
of Toss of the Bond's tax - exempt status.
Maturity: 25 years from issuance.
Amortization: Level principal and interest payments, based on a
25 -year amortization. At each Reset Date,• the
monthly payment amount shall be recalculated based
on the new interest rate and the then - outstanding
principal balance, over the remaining number of
years of the amortization period. At maturity, any
remaining outstanding principal balance and accrued
interest shall be due and payable in full.
Prepayment: The Borrower may prepay principal of the Loan, in
whole or in part; but such prepayments .(a) shall be
subject to payment of a prepayment fee as
calculated under Bank's standard formula (except for
a prepayment made on a Reset Date, which shall be
without premium or penalty), and (b) shall be applied
to principal installments coming due in inverse order
of their maturities (that is, such payments shall not
reduce the amount of each required monthly
payment).
Security: A deed of trust which shall be no less than a third
lien on the Project, including all rights and personal
property associated with the Project.
Loan Fee: $ 13,000, payable at the earlier of closing of the
Loan or expiration of this Commitment.
Accrual Method: Any interest and per annum fees shall accrue on the
basis of 30 day months over a 360 day year.
PG. 2
EXHIBIT 1.10
Mr. Charles Green
G.T. Development Corporation
March 11, 1994
Page 3
PG. 3
2. Closing Conditions. Bank's Commitment shall be subject to satisfaction of the
following conditions prior to issuance:
a. Corporate Authorization. Borrower shall furnish Bank with Articles of
Incorporation, Bylaws, Certificates of Trade Name (if applicable), a certificate of good
standing of the Borrower from the Secretary of State of Washington, dated no more
than 30 days prior to closing, and corporate resolutions:
authorizing Borrower to enter into this Commitment and all credit
documents to be executed by Borrower with regard hereto; and
ii. designating the officers by name and title designated to execute
all Bank and Bond documents on its behalf;
and shall also furnish Bank with appropriate certificates of incumbency as to such
officers, to include signature specimens. Borrower shall in addition furnish Bank with
a letter of opinion from Borrower's attorney, in form and content acceptable to Bank,
addressing the legal organization and current corporate status of the Borrower, the
authority of Borrower to enter into this transaction, the enforceability of the Bank and
Bond Documents, and such other matters as Bank counsel or Bond counsel may
require.
b. Bond Requirements. The Authority shall be prepared to issue the Bond,
Bond counsel shall be prepared to issue to Bank its opinion as to the validity,
enforceability, and tax - exempt status of the Bond, and Borrower shall have executed
all documents required by the Authority to be executed as conditions to issuance of
the Bonds ( "Bond Documents ").
c. Bank Documentation Requirements. Borrower shall execute the following
documents for the benefit of the Bank ( "Bank Documents "):
Note: A promissory note reflecting its obligation to repay the Loan
with interest, as provided above.
ii. Deed of Trust: As collateral for all of its obligations under the
Bank and Bond documents, Bank's standard commercial form Deed of Trust,
Security Agreement and Fixture Filing with Assignment of Leases and Rents
which, together with appropriate financing statements, shall be no less than a
third lien on the unencumbered, marketable, fee simple title to land and
improvements constituting the Project, all fixtures and personal property used
EXHIMT 1.10 PG. 4
Mr. Charles Green
G.T. Development Corporation
March 11, 1994
Page 4
or useful in the operation of or maintenance of the Project, all tangible and
intangible personal property relating to construction of the Project, and all rents,
issues, and profits derived from the Project (the "Deed of Trust "), with prior
financing liens of Bank only being permitted. The Deed of Trust shall provide,
among other things, that the Project shall not be sold, conveyed, encumbered,
or transferred by Borrower without Bank's prior, written consent, which may
be withheld in Bank's complete discretion.
iii. Construction Loan Agreement: A Construction Loan Agreement,
in form and substance satisfactory to Bank, with terms and conditions for
disbursement of Bond proceeds out of the Project Fund to be established at
issuance.
iv. Hazardous Substance Indemnification: Bank's standard form
Certificate and Indemnity Agreement Regarding Hazardous Substances,
indemnifying Bank against any and all hazardous substance liability (including
costs of defense) arising out of the Project, regardless of fault of Borrower.
v. Building Laws Certificate: Bank's standard form Certificate and
Indemnity Agreement Regarding Compliance with Building Laws, certifying that
the Project complies with all applicable building, subdivision, development,
health, environmental, and related laws and regulations, including the
Americans with Disabilities Act of 1990, and indemnifying Bank against any
liabilities arising out of violation of such laws and regulations.
d. Appraisal. Purchase of the Bond is subject to Bank's receipt and, after
review by Bank's internal appraisal review department, approval of an appraisal of the
Project according to the following requirements:
The appraisal shall be ordered by Bank, at Borrower's expense,
from an appraiser acceptable to Bank.
ii. The appraisal must be made in full compliance with the
requirements of the Financial institutions Reform, Recovery, and Enforcement
Act of 1989 ( "FIRREA "), and with Bank policy.
If the appraisal reflects a valuation which results in a loan -to -value ratio of greater
than 75%, or reflects net operating income which is less than 1.20 times the debt
service on the Bond and all other debt, if any, secured by the Project, Bank may, in
EXHIBIT 1.10
Mr. Charles Green
G.T. Development Corporation
March 11, 1994
Page 5
PG. 5
its sole judgment, elect to reduce the principal amount of the Bond it is committing
to purchase.
e. Environmental Assessment. A Level I environmental assessment shall
have been performed, and higher levels of review if indicated by the Level
assessment, and the results shall be either satisfactory to Bank or ameliorated to the
Bank's satisfaction.
f. Hazard Insurance
Borrower shall furnish Bank with a builder's "all risk" 100% course
of construction insurance policy as to the Project, from companies acceptable
to Bank, and in form and amount acceptable to Bank, naming Bank as an
additional insured and loss payee, and as a certificate holder as to liability
insurance coverage.
ii. Upon completion of construction of the improvements on the
Project, Bank shall receive evidence that the Borrower has obtained
replacement cost coverage insuring against loss by fire and such other risks
covered by extended coverage insurance, and such other perils and risks,
including loss of rents and business interruption, as may be required by the
Bank; and that the Borrower has obtained and is maintaining comprehensive
general public liability insurance of no less than $1,000,000 per occurrence.
g. Flood Insurance. Borrower shall supply flood insurance, if the Project has
been determined to be in a designated flood hazard area where federally subsidized
flood insurance is available.
h. Title Insurance. An A.L.T.A. (1970 modified form) form of lender's
extended coverage title insurance for the amount of $2,600,000 shall be delivered to
Bank insuring Bank as the holder of the Deed of Trust. Such policy shall be issued by
a title company acceptable to Bank. Coverage shall be subject only to prior financing
liens in favor of Bank, and such other title exceptions as Bank may approve. The
policy shall contain such endorsements as Bank may reasonably request, and shall
insure that:
The Project is free of the possibility of any prior mechanics' or
materialmen's liens or special assessments for work completed or under
construction on the date of closing; and
EXHIBIT 1.10
Mr. Charles Green
G.T. Development Corporation
March 11, 1994
Page 6
PG. 6
ii. All taxes and assessments affecting the Project or any part
thereof, if due and payable on the date of issuance, shall have been paid.
i. Construction Conditions.
i. Bank's approval of final plans, specifications, and soils reports,
submitted in duplicate;
ii. Bank's approval of the form and substance of itemized cost
estimates and construction budget and estimated disbursement schedule;
iii. Delivery to Bank, for its approval, of an executed copy of the
general construction contract with a general contractor satisfactory to Bank,
and subcontracts, if required by Bank, and executed performance and labor and
material payment bonds issued thereunder with dual obligee riders naming Bank
as an additional obligee, and a fully executed "Contractor's Qualification
Statement AIA Document A 305" for Bank's review and approval showing
financial condition of the general contractor satisfactory to Bank;
iv. Borrower shall furnish to Bank in duplicate, if required by the title
company for issuance of ALTA extended coverage, a current survey of the
Project, of a date acceptable to the title company, and certified by a licensed
surveyor or engineer. The survey shall show the compass bearing, legal
description, dimensions, total square foot area of the Project, and interior lot
lines (if any); the dimensions and locations of all improvements to be built,
parking areas, and easements; utilities and the location of adjoining streets, and
the distance to and name of the nearest intersecting street;
v. If required by Bank's review of the preliminary title commitment
or other evidence of title to the Project, Borrower shall furnish proof
satisfactory to Bank that the Project is one or more legal lots in compliance
with all applicable laws, ordinances, and regulations respecting subdivision
platting;
vi. receipt by the Bank of an evaluation (the "Evaluation ") of whether
the plans for the building and other improvements of the Project are in
compliance with the Americans with Disabilities Act of 1990, as amended (the
"ADA "), at the Borrower's sole expense. The Evaluation shall be in a form and
from a state certified architect or other expert satisfactory to the Bank. In the
event the Evaluation states that the plans for the Project are not in compliance
EXHIBIT 1.10 PG. 7
Mr. Charles Green
G.T. Development Corporation
March 11, 1994
Page 7
with the ADA, the Borrower shall provide modifications that are satisfactory to
the Bank;
vii. All required permits, consents, licenses, and environmental reports
and clearances required by any governmental regulatory body or agency having
jurisdiction over the construction or Borrower. With respect to any
environmental action taken by a governmental agency Borrower shall provide
at Bank's election either (i) proof satisfactory to Bank of publication, filing, and
mailing or posting of notice of such action pursuant to state environmental laws
and regulations, or (ii) opinion of Borrower's legal counsel that the foregoing
notice requirements have been complied with;
viii. Evidence satisfactory to Bank of availability of all utilities, including
water, sewer, and electrical power. The companies providing such utilities shall
confirm that service is available to the site in sufficient size and capacity to
serve the intended use of the Project at no installation cost to the Project, or
at a stated cost;
ix. Receipt by the Bank of current income and expense statements on
the Project, and signed financial statements, credit reports, and other financial
data as required by the Bank.
3. Hazardous Substances. The Borrower represents and warrants that it has
inspected the Project and that hazardous substances are not being generated, stored,
or disposed of on the Project other than in compliance with all applicable laws and
regulations, and other than as disclosed in writing to Bank; and, after due inquiry, the
Borrower to the best of its knowledge is not aware that hazardous substances have
ever been generated, stored, or disposed of on the Project, other than in compliance
with all applicable laws and regulations. The Borrower further represents and
warrants that hazardous substances will not be generated, stored, or disposed of on
the Project, other than in compliance with all applicable laws and regulations, nor will
the same be transported to or over the Project. "Hazardous substance" shall be
interpreted broadly include any substance or material defined or designated as
hazardous or toxic wastes, hazardous or toxic material, a hazardous, toxic or
radioactive substance or other similar term by any applicable federal, state, or local
statute, regulation, or ordinance now or hereafter in effect. The Borrower will hold
the Bank harmless from and indemnify the Bank against and from any damage, loss,
expenses, or liability resulting from any breach of this representation and warranty
including all attorneys' fees and costs incurred as a result thereof.
EXHIBIT 1.10
Mr. Charles Green
G.T. Development Corporation
March 11, 1994
Page 8
PG. 8
4. Inspection. Bank's representative shall inspect the Project and improvements
during and after construction, but said inspection shall be solely for the Bank's benefit
and protection. Construction shall be subject to approval by Bank's representative.
Borrower shall pay for reasonable costs of such inspections.
5. Documentation. Each document required in connection with issuance of the
Bond shall be in form and substance approved by Bank.
6. Expenses. By Borrower's acceptance below, Borrower agrees that, regardless
of whether purchase of the Bond closes prior to expiration of this Commitment, Bank
shall not be liable for, and Borrower shall pay or arrange for the payment or
reimbursement of any and all expenses, fees, and charges in respect to the Loan and
the Bond, including, without limiting the generality thereof, survey costs, title costs,
recording charges, environmental audits, flood determinations, and appraisal costs
(including the cost of Bank's internal appraisal review). Borrower shall also reimburse
Bank at closing for its allocated cost of in -house counsel's services in drafting and
negotiation of this Commitment and all loan documentation, and review and
negotiation of all Bond documentation. It is understood that any outside or in -house
counsel of the Bank represents only the Bank, and not the Borrower.
7. Nonassignability. This Commitment may not be assigned by Borrower without
Bank's written consent.
8. Amendments. This Commitment cannot be amended, discharged, or terminated
except by an instrument in writing signed by the party against whom enforcement of
any amendment, discharge or termination is sought.
9. Expiration. The expiration of this Commitment, if accepted, is September 30,
1994, unless extended in writing by Bank prior to such date.
10. Acceptance. This Commitment shall not be binding unless the enclosed
counterpart is signed by Borrower and returned to Bank not later than April 30, 1994.
11. Entire Agreement. Borrower's loan application with all supporting documents
submitted to Bank together with this Commitment shall constitute the entire
agreement between Borrower and Bank with respect to this Commitment, until final
execution of Bank and Bond Documents.
EXHIBIT 1.10
Mr. Charles Green
G.T. Development Corporation
March 11, 1994
Page 9
NOTICE: ORAL AGREEMENTS, PROMISES, OR COMMITMENTS TO LOAN MONEY,
EXTEND CREDIT, OR FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE
ALL UNENFORCEABLE UNDER WASHINGTON LAW.
Sincerely yours,
SEATTLE -FIRST NATIONAL BANK
a national banking association
Christine M. Bomgardner
Vice President
Accepted and approved this
G.T. DEVELOPMENT CORPORATION
By:
Its:
AWS:gtdev.ltr
3/1 1 /94
day of , 1994
PG. 9
Cash from Operations
GT Development, Corp
Cash Flow Forecast
Fiscal Years 1995 - 2000
(000)
Fiscal 95 Fiscal 96 Fiscal 97 Fiscal 98 Fiscal 99 Fiscal 00
$1,584 $1,530 $2,711 $2,752 $3,331 $3,818
Cash Consumption:
Capital Expenditures & Building Improvements $900 $500 $525 $550 $600 $650
Accounts Receivable: Inc. $175 $250 $300 $365 $400 $500
Accounts Payable: (Inc). ($100) ($113) ($128) ($150) ($160) ($200)
Inventory: Inc. (Dec.) $300 ($525) $255 $300 $320 $400
Long -Term Debt Payments $173 $234 $676 $183 $345 $236
Total Cash Consumed:
$1.448 $347 $1.629 $1.248 $1.505 $1.586
Net Cash Increase / (Decrease) $136 $1,183 $1.082 $1 503 $1826 $2.232
Page 1
1.2 a) GTI Corporation
6437 South 144th St.
Tukwila, WA 98168
b) Charles James Green
11279 SW Corbin Beach Road
Vashon, WA 98070
Marilyn Green
Charles Jeffrey Green
James Conrad Green
c) N/A
1.3 GT Development was founded in 1976 to manufacture component parts
for the Heavy Duty Truck (HDT) market. We sell to all of the U.S.
HDT manufacturers and to several foreign manufacturers. Our suppliers
are primarily in the Northwest region with several suppliers in the
midwest area. I have attached a company brochure for your reference.
SIC Code 3625
1.8 Charles James Green
11279 SW Corbin Beach Road
Vashon, WA 98070
Alan K. Forsythe
22809 107th Avenue SW
Vashon, WA 98070
1.9 The company's indebtedness consists of the following four notes and one line
of credit as of April 1, 1994:
Note is payable to Seafirst Bank, payable in monthly installments, collateralized
by real estate, due Aug. 31,1996. $301,048
Note is payable to Seafirst Bank, payable in monthly installments, colllateralized
by equipment , due Aug. 31, 1996 $226,142
Note is payable to Seafirst Bank, payable in monthly installments,
collateralized by real estate, due Sept. 1, 2002. $245,727
Note is payable to Puget Western, Inc., payable yearly (interest only),
collateralized by real estate, due Oct. 1, 1998 $167,973
$940,891
There are no significant covenants or commitments which restrict the
freedom of the company to incur debts. This is evidence by Seafirst's
commitment letter, dated March 11, 1994.
EXHIBIT 2.1
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PERSPECTIVE
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RENOVATIONS '& ADDITIONS
G.T. DEVELOPMENT
TUKWILA, WASHINGTON
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EXHIBIT 2 . 4
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RENOVATIONS & ADDITIONS
G.T. DEVELOPMENT
TUKWILA. WASHINGTON
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2.1 We are p . . • g to build a 60,000 square foot manufact ..ig facility to
handle GTs current and future requirements. We have doubled in size in the
last two years and are planning a facility to handle another doubling in size.
Exhibit 2.1 includes an artist's rendition of the project.
The square footage is distributed as follows:
Production Assembly & Inventory 64.1%
Production Engineering 10.9%
Research Engineering 9.4%
Administration 8.5%
Support (Lunch Room) 3.8%
Sales 3.3%
100.0%
2.4. We currently have a 20,000 square foot manufacturing facility on site.
Exhibit 2.4 shows the existing structures. Structure "A" is the office area
and structure "B" is the assembly area. A new assembly and office area will
be built to the East of "B ". A new warehouse area will be built to the West
of "B" and structure "A" will be demolished. Structure "B" will be
renovated to bring it up to current building codes.
2.5 • GT Development has contributed to the economic well being of King
County and the State of Washington in several ways. First, GT has nearly
tripled in size in the last five years. We have added nearly 80 jobs during
that time. Our plans for the future are to double again in the next five
years. Second, we have hired unshilIed labor for our assembly operation
and provided significant on the job training. Our factory training includes
statistical process control, blue print reading, welding, safety training,
product economics, product quality, product improvement, and meeting
established goals and objectives. Finally, GT Development offers a
generous tuition reimbursement program for all of its employees. We
believe that a well trained work force will benefit the company as well as
the community at large.
GT Development has enjoyed our present location and would lice to
continue our contribution to the economic development of the
community.
KCEEC
3.2 Expense to date on proposed project (all paid):
07/01/94 Architectural fees $3,052.50
08/01/93 n $1,581.22
09/01/93 n • $575.92
10/01/93 n $1,208.50
11/01/93 n $4,611.00
12/01/93 n $105.30
12/01/93 n $6,847.47
01/03/94 " $2,080.56
02/01/94 n $6,345.40
03/01/94 " $8763.18
03/15/94 Appraisal fee $5,000.00
$40,171.05
4.3.8 Sales tax on project: $200,000
Additional property taxes $23,822 + /year
Additional Taxes with the company doubling in size:
B & 0 Tax $103,000 /year
Sales Tax $73,800 /year
Personal Property Tax $10,076 /year
4.4.8 With sales growth, the company should employ:
Current Projected
Assemblers 83 211
Clerks 20 - 35
Machine Operators 5 13
Engineers 8 12
Managers 11 18
Executives 4 4
139 293
5.4 Freightliner Corporation and Kenworth Truck Company each account for
more than 10% of GT's sales. Each company provides annual purchase
orders with regular releases.