Tri-City Area and Real Estate Blog

The HR1 “American Recovery and Reinvestment Act of 2009” has increased the home buyer tax credit to $8000, drops the repayment features, reinstates last year’s 2008 loan limits for FHA, Freddie Mac and Fannie Mae loans, and provides $2 billion in additional funding for states and localities to be used to purchase, manage, repair and resell foreclosed and abandoned properties.

Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment for buyers who hold onto their property for at least three years. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

NAR has sought removal of the repayment requirement because it discourages buyers from taking advantage of the tax credit. The three-year minimum holding period is a safeguard against speculators’ use of the credit. The legislation also extends the effective date of the credit to December 1 from June 30, and extends eligibility to borrowers who buy their home with the help of state or localized financial assistance that comes from the proceeds or tax-exempt mortgage revenue bonds.

FHA and conforming loan limits. Tentatively, reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities might be available at the discretion of the secretary of HUD.

Foreclosure mitigation and neighborhood stabilization. Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized.

Rental assistance. Up to $1.5 billion to provide short-term rental assistance and other aid for families during the economic crises.

Transportation infrastructure. Up to $29 billion for highway construction projects, $8 billion for rail projects.

Rural housing development. Increased funding for the Rural Housing Service direct and guaranteed loan programs.

Low-income housing grants. Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations.

Tax-exempt housing bonds. Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds.

Energy efficient housing. Grants for energy retrofits for federally assisted housing (Section B), funding got energy efficiency and conservation block grants to states, increases in the residential tax credit through 2010 for certain energy efficient upgrades and $5 billion to weatherize low-income homes.

While the area housing market dipped and retail sales slowed in 2008, Mid-Columbia ports and economic development organizations took their tasks seriously, helping businesses grow and creating new jobs. The local ports use their tax dollars in different ways to accomplish that job creation goal. They sell bare land to companies or lease buildings. Sometimes they develop property for sale or to lease for small business development. The main goal is to create jobs and economic development.

The Port of Pasco sold land to Syngenta, which is in the midst of building a $42 million seed processing plant at the Port’s Pasco Processing Center off Highway 395. The 130,000 square foot facility will produce vegetable seeds that will be sold around the world. The seed processing plant will have about 25 full-time employees and an annual payroll of about $4 million.

Local growers will benefit from the new plant through an anticipated $12 million in contracts that will be offered by Syngenta, a Switzerland-based agribusiness. Jim Toomey, the Port’s executive director, said the development not only brings in millions of private investment dollars to the community, it creates tax revenue without putting additional stress on area schools and city services.

The Port sold 29 acres to Syngenta for the project for $1.2 million and hopes the project will spur more development at the Pasco Processing Center. Toomey said the Port spent $800,000 to improve rail infrastructure in the center to bring the 16 miles of rail line that was built in 1940′s up to today’s standards.

“Now we have the capability to handle containers and bulk rail and we’ve seen a steady increase for the bulk rail demand, especially with an increase of windmill components being shipped,” he said.

Also in 2008, the Port of Pasco began plans to develop two miles of its riverfront shoreline that is not impeded by a levy. “We are striking a development agreement with the city,” said Toomey. “And we are in the design stages of the first building on the land.” The Port hopes to create a riverfront development that includes restaurants and small shops, he said.

The Port, also operates the Tri-Cities Airport in Pasco, which is why its staff is three to four times larger than those at other are Ports and also why the Port’s operating budget is more than twice that of the Port of Benton or the Port of Kennewick.

At the Port of Kennewick, several construction projects were underway on Port property in 2008, said Larry Peterson, the port’s director of planning and development. In June, the port completed a 34,000 square-foot building at Spaulding Business Park for Vista Engineering and in August, construction was completed on an 18,000 square-foot office and warehouse at Vista Field Industrial Park for Consolidated Supply.

One of the largest projects was a 30,000 square-foot building at Vista Field where Infinia will manufacture its solar dishes. The company is expected to add up to 100 new workers at the plant. The Port also sold the land to developers for the South Ridge Village, where a 10,000 square-foot office and retail building has already been built. Peterson said the Port is continuing its $5 million redevelopment of Clover Island where its shiny new office overlooks the marina.

The Port has demolished the former Clover Island Yacht Club to make room for a new 12,000 square-foot building. The club will lease the bottom level of the two-story building and the top level will be available.

The Port is also planning the develop the Willows Trailer Court off East Columbia Drive, which it bought in 2007 for $1.5 million. During 2008, port officials negotiated to buy the old trailers on the 6.75 acre property. Once all the trailers are removed, the property may be sold to a private developer. Peterson said the goal is to create a vibrant, attractive waterfront with restaurants, condominiums and small shops.

At the Port of Benton, 2008 was a landmark year. The Port celebrated its 50th anniversary. It continued work at Prosser’s Vintner’s Village, where Milbrandt Vineyards completed its 3,000 square-foot tasting room, followed by Bunnell Family Cellar’s 3,700 square-foot tasting room next door.

The Port sold the final two lots at the wine village to brothers Bob and Roger Gamache who have started construction on a 3,000 square foot tasting room for Gamache Vineyards. Since land in the initial development had all been bought, port officials bought 17 acres adjacent to Vintner’s Village that they plan to start developing this year.

At the Prosser Airport, port officials also built a 12,000 square foot addition to the existing FruitSmart headquarters, allowing the company to expand production. And also in Prosser, Mike Hogue and Bud Mercer finished a 15,000 square-foot, 65,000-case wine production facility for Mercer Estates at the Port’s Prosser Wine and Food Park. Hogue and Mercer are also completing a 12,000 square-foot tasting room and barrel storage facility adjacent to the production building.

In Benton City, the port purchased an existing building that it is remodeling to transform into two retail store fronts for wine or wine-related businesses.

One of the Port’s proudest projects of 2008 is its new $1.5 million freight transload facility, which opened in October at Richland’s Horn Rapid Industrial Park off Kingsgate Way. Henningsen Cold Storage is operating the 7,200 square-foot temperature controlled facility and the Tri-City and Olympia Railroad pull the cars from North Richland to connect to Union Pacific or Burlington Northern Santa Fee rail lines.

The Port is also in the process of reconstruction of the runway at the Richland Airport, a project with a price tag of about $2.2 million. FAA grants paid for 95 percent of the construction. Scott Keller, the Port’s executive director, credited the port’s staff for its success in obtaining grants totaling $4.8 million during 2008.

Keller said the Port spent $9.4 million on capital projects in 2008 and collected about $3.1 million in lease and other revenue. It collected $1.8 million in taxes, which the port uses to build roads and improve infrastructure to attract new tenants to port facilities. TRIDEC, a regional economic development organization was involved in many of the area port’s larger projects, including Syngenta.

Deanna Smith, TRIDEC’s marketing director, said the organization responded to 78 businesses seeking information about the area, from what properties and services are available to demographics and worker availability. “Competition for facilities is intense,” Smith said. “Although many companies narrow the list of potential sites in a few months, some cases are managed over a much longer period of time.”

Much of TRIDEC’s business recruitment is done behind closed doors, takes hundreds of hours and can end abruptly. “This year we made the final cut on two very significant projects, however, then the economic downturn started, many nationwide projects, including those, were put on hold for the moment,” she said.

Much of TRIDEC’s focus this year went to trying to encourage Areva to build its new uranium enrichment plant in the Tri-Cities – only to have the company announce it would go to Idaho. “Losing a deal like that when it’s down to two locations is never an easy pill to swallow, but the good news is that Areva will continue being a major player in our community and our relationship with the corporation is solid,” Smith said.

Smith said TRIDEC employees attend marketing and sales trips outside the state and collaborate with the state’s Community, Trade and Economic Development office on Team Washington trips to market the state. Although a large amount of time was spent recruiting businesses to the area, TRIDEC staff also visited existing manufacturing companies in Benton and Franklin counties to determine what needs they have, future plans and how the organization might help them.

What is a Power of Attorney and how is it created?

A power of attorney authorizes a person to act on behalf of another person. It is a ‘durable’ power of attorney if the grant of authority survives the disability or incapacity of the principal who granted the power. The following are some requirements for an effective Power of Attorney (POA) are:

• It must be a written instrument,
• It must designate the person who will act as the Attorney in Fact or agent,
• It must be signed by an adult principal,
• It must be acknowledged by a Notary under the laws of Washington or any other state.

How long does a POA last?

Unless a specific time limit is imposed in the written instrument, a POA does not expire during the lifetime of the Principal.

What authority will the Attorney in Fact have to act on behalf of the Principal?

All acts done by an Attorney in Fact or agent pursuant to a POA during any period of disability or incapacity of the principal have the same effect and inure to the benefit of and bind the principal and the principal’s successors in interest as if the principal were not disabled or incapacitated.

What acts may an Attorney in Fact perform on behalf of the Principal pursuant to the POA?

In general, an Attorney in Fact acting under a POA may do any lawful act that the Principal may do. The Durable Power of Attorney Act state many specific acts which may be performed on behalf of the Principal including the right to invest money, demand payments, commerce or defend litigation, execute documents including deeds, contracts and mortgages. An Attorney in Fact may only make gifts from the Principal’s property if the POA specifically grants such power.

When do the powers granted under a POA terminate?

• The POA terminates upon the death of the Principal.
• A principal may, in writing, revoke the POA at any time. The POA may require that a revocation is only effective by an instrument recorded with the County Clerk’s Office.
• If a person executed a POA granting authority to a spouse, the POA automatically terminated upon a divorce of the parties.
• If a POA has been revoked, the revocation is not effective as to a third party replying upon the power until that third party receives actual notice of the revocation of the POA.
• The bankruptcy of a principal does not terminate the power of the Attorney in Fact under a POA.

Must a POA be recorded with the County Clerk?

No, except in real estate transaction. In a real estate transaction, the POA will usually be recorded in the office of the County Clerk to evidence the authority of the person executing the deed, deed of trust, assignment, release or other instruments which must itself be recorded.

What duty does an Attorney in Fact owe to the principal?

An Attorney in Fact, acting under a POA, is a fiduciary to the principal and has a duty to inform the principal and to account for actions taken pursuant to the POA. This includes a duty to account for all property coming into the hands of the Attorney in Fact and all disbursements made on behalf of the principal. An Attorney in Fact has a duty to maintain records and to keep segregated funds belonging to the principal.

What are the common problems with using a POA?

If the POA is not properly prepared, executed and acknowledged, it will not confer any lawful authority to act on behalf of the Principal.

Since the POA terminates upon death, a title company may wish to be provided evidence the Principal is still alive at the time of the closing and execution of the deed or mortgage.

7 homes, winery to open their doors to the Mid-Columbia public -by Loretto J Hulse, Herald Staff Writer

Need some holiday cheer? Or perhaps some seasonal decorating ideas? The Dr. L.G. Spaulding Guild’s Christmas Home Tour will be held December 6.

Owners of 7 homes ad one winery in Kennewick and Richland will open their doors and show off priceless family treasures and family keepsakes. “They’re all very different with decor ranging from cherished antiques to red hot chili peppers to Tuscan,” said Christine Grantham, tour co-chairwoman.

I’m especially happy that we have three condos on the tour this year. That’s something I’ve been working on for a while now,” she said.  The Christmas Home Tour runs from 9 a.m. to 4 p.m. There will be entertainment at each home ranging from the Broadway Babes to a harpist.

Tickets and a tour book cost $15 and tickets are available at Beaver Bark & Rock, 607 Aaron Drive in Richland; Gadgets & Goodies, 5724 W Clearwater, Kennewick; and HL2 Accents, 6311 Burden Blvd, Pasco. A limited number of tickets will be available for purchase at the houses.

What a great operunity for the people of the Tri-Cities to go see how other people live.

Washington Closure Hanford has selected three local businesses to do $12 million work of work to help backfill Hanford waste sites and burial grounds after they are cleaned up. George A Grant Inc., North Wind Inc., and Watts Construction, Inc., all of the Tri-Cities, will provide backfill services as needed through 2013.

Over the next several years Washington Closure Hanford workers will remove more than 2.5 million cubic yards of contaminated material as part of cleanup of the river corridor. That includes work in or near the 300 Area and work around the nine reactors that once produced the plutonium for the nation’s nuclear weapons program.

All around the Tri-Cities. 

Hispanic Heritage Month events planned. The associated Students of Washington State University Tri-Cities planned a series of six Hispanic Heritage Month events, held at WSU Tri-Cities in Richland.

Benton-Franklin workforce receives $ 2.5 Million. The Washington Employment Security Department awarded $ 2.5 Million to the Benton-Franklin County Workforce Development Council to help workers polish their skills and find better jobs through June 2009.

Washington Service Corps accepting applications. The Washington Service Corps. which includes groups like AmeriCorps and the Service Corps, is seeking new members.

Pipefitters win final round. The Washington Supreme court affirmed the jury verdict in the trial of 11 Hanford pipefitter’s whistleblowers who were awarded nearly $ 5 million in damages.

United Way receives gift. The United Way of Benton and Franklin Counties received a $ 4,300 grant in August from the New York Life Foundation, which gives out about 130 grants per year.

Allied Arts celebrates 60th anniversary. Allied Arts celebrates its 60th anniversary in September and has invited some of its past prize winners and featured artists back, many of whom have gained national in international reputations.