By Brynn Grimley
Bgrimley@Kitsapsun.com
BREMERTON
Projects in Poulsbo, Silverdale and Port Orchard could get a
jump-start if they are approved for a combined $5 million in loans
from the federal Department of Housing and Urban Development.
Members of the executive board of the Kitsap Regional Coordinating
Council heard presentations on those projects, along with a fourth
planned for Bainbridge Island, on Wednesday.
The board recommended the three be considered by HUD officials for
$5.7 million that is available to the county under the Section 108
loan guarantee program.
The Poulsbo request is from Westbury Inc., which wants $2 million
to help build a plant to manufacture security and safety barriers
systems primarily for airports; the Silverdale request comes from
the county, which would use $1 million to help build a YMCA there;
the city of Port Orchard asked for $2 million to support a downtown
revitalization
project; and Martha and Mary asked for $1.5 million to help build a
12-suite rehabilitation facility on Bainbridge Island.
That adds up to $6.5 million, which is why the council had to
whittle the list down.
This is only the second time in recent history that the county has
used the loan guarantee program, according to Shelley Kneip,
attorney for the Kitsap County Prosecuting Attorney’s Office.
Previously, Section 108 loan money was used for renovations at the
Admiral Theatre in Bremerton, she said.
The county is responsible for paying back the low-interest loans
and has to pledge current and future Community Development Block
Grant allocations to cover the loan amount as security.
To ensure the county is not on the hook for the loan payments,
applicants had to prove they could pay back the total amount, or
provide enough collateral to cover the cost.
The benefit of the Section 108 loan program is it does not affect
an agency’s bonding authority, and provides flexibility to help a
community jump-start development in areas that need it most, said
Shannon Bauman, block grant program planner.
To be eligible, applicants must meet Community Development Block
Grant rules and regulations, as well as at least one of three
national objectives: the project must benefit low- and
moderate-income people, help to eliminate “slum and blight,” or
meet the urgent needs of the community.
The regional council board determined the Poulsbo project and the
Silverdale project were the two most prepared to move forward and
suggested they receive the full amounts requested.
County Commissioner Josh Brown expressed uncertainty about the city
of Port Orchard’s plan to repay the loan. Other board members
echoed those concerns, which Mayor Lary Coppola — also a KRCC
member — said was agreeable.
The board stipulated the loans must be repaid in 10 years and that
the projects must be ready to go no later than September 2010.
Because the Martha and Mary project was not ready for immediate
implementation, the board committed to supporting the project
later.
The three projects are now subject to a financial review by an
independent financial consultant, which will make sure their
payment plan is feasible. A 30-day comment period and a public
hearing will also take place before a final loan application is
sent to HUD.
A second public hearing will be held once the funds are
received.
The Projects
The projects recommended to receive Section 108 loans from the
federal Department of Housing and Urban Development include:
Westbury Inc.: The company plans to build in Poulsbo’s Twelve Trees
Industrial Park, where it will manufacture security and safety
barriers systems primarily for airports. It plans to employ 100
people, of which more than half will be from the low- to
moderate-income bracket. Jobs would start at $16 an hour, plus
benefits. The company requested $2 million, and will provide the
remaining $500,000 it needs to get started.
Port Orchard Town Center Revitalization Project: The city of Port
Orchard requested $2 million to help with the purchase of land
needed for the construction of an underground parking garage and
new library on Prospect Street. The cost of the parking garage,
including land acquisition and design is $5.3 million. The cost of
the overall downtown revitalization project is estimated at $36.6
million.
Kitsap County Silverdale Campus YMCA: The county requested $1
million for the proposed Silverdale YMCA. The county previously
committed $5 million for the estimated $15 million project, which
is projected to be between 50,000- and 70,000-square feet. The
remaining $10 million will be funded by the YMCA of Pierce/Kitsap
County. The new facility would create 74 full-time positions once
open, of which 56 will be for low- to moderate-income
individuals.
