03.25.03

Trail Wagons Signs $2.45 Million Federal Economic Development Deal

Cantwell helped secure funding for project which will employ 121 in Yakima

WASHINGTON, DC – U.S. Senator Maria Cantwell (D-WA) today announced that the City of Yakima and Trail Wagons have signed a contract giving the Yakima-area recreational vehicle manufacturer securing $2.45 million in federal economic development assistance. The Trail Wagons project will add 121 new jobs to Yakima.

Cantwell, who toured the Trail Wagons facility in December 2002 with local officials, helped secure the funds for the project from the U.S. Department of Housing and Urban Development (HUD).

"This project provides an important boost for the redevelopment of downtown Yakima," Cantwell said. "New businesses downtown will create new jobs for Yakima." In November 1998, the City of Yakima was awarded a $1 million Economic Development Initiative (EDI) grant and a $4 million Section 108 loan to rehabilitate and restore the Great Western building (downtown Mall) into an upscale historic hotel. After it became clear that the mall-to-hotel project had collapsed, the City of Yakima asked HUD to amend both the grant and loan to attract new retail businesses to the mall by allowing the assistance to be used on multiple projects.

Cantwell worked closely with the City to support its efforts to amend the grant and loan to finance multiple, smaller projects. Late last year, Trail Wagons and Essencia Bakery emerged as the leading candidates to take advantage of the funding.

Under the terms of the contract, the City will receive a $2.45 million loan from HUD, securing it with the city's annual community development block grant entitlement funding. The City will in turn make a low-interest loan available to Trail Wagons.