Community Renewal Good Stories - Yakima

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Yakima Uses Loan Fund To Generate Jobs

Yakima, Washington, RC

The establishment of an Economic Development Loan Fund (EDLF) in Yakima, Washington, in October 2002 has led to the creation of more than 130 jobs within the Yakima RC. While the monies, all of which came from HUD's Office of Community Planning and Development, have been earmarked for specific purposes, the city has allotted them to further job growth in the RC. Yakima has used a $1 million Economic Development Initiative grant to provide a loan loss reserve, pay certain fees, and guarantee the interest rate for the term of each loan, while it has used $7 million in Section 108 funds to approved businesses. The fund has leveraged over $14 million of private investment.

Some examples of the types of projects Yakima has funded, include:

• Hilton Garden Inn Hotel: A vacant department store building was converted to a 114 room hotel in the heart of downtown Yakima. The hotel also houses 3 additional boutique shops. The city used a $3.56 million Section 108 loan to leverage $11 million of investment, which included New Markets Tax Credits. The project also utilized $9 million of Commercial Revitalization Deduction.
  


• Yakima Cellars, a boutique winery and tasting room, has produced several award-winning handcrafted white and red wines. Both the wine production facility and the tasting room are located in Yakima's RC. Yakima Cellars used a $110,000 loan for working capital and equipment acquisition. As a result, two additional wineries have spun off from the same partnership.
  


• Sports Center Restaurant: The city provided a $75,000 working capital loan and $156,000 of CRD to a group of 4 local entrepreneurs who rehabilitated a dilapidated building of historic significance to the downtown. The building now houses one of Yakima’s most successful restaurants and live music venues.
  

The EDLF is an integral part of the Yakima RC's efforts and provides it with more flexibility when assisting businesses at the local level.

For more information on the programs of the Yakima RC, please contact RC Director Michael Morales of the city of Yakima, at (509) 575-3533.