08/25/2020 MinutesCITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL REGULAR MEETING
August 25, 2020
Pursuant to due call and notice thereof, a Regular Meeting of the City Council of the City of
Grand Island, Nebraska was conducted in the Council Chambers of City Hall, 100 East First
Street, on August 25, 2020. Notice of the meeting was given in The Grand Island Independent
on August 19, 2020.
Mayor Roger G. Steele called the meeting to order at 7:00 p.m. The following City Council
members were present: Mike Paulick, Justin Scott, Mark Stelk, Jason Conley, Vaughn Minton,
Julie Hehnke, Clay Schutz, Mitch Nickerson, Chuck Haase and Jeremy Jones. The following
City Officials were present: City Administrator Jerry Janulewicz, City Clerk RaNae Edwards,
Finance Director Patrick Brown, Interim City Attorney Stacy Nonhof and Public Works Director
John Collins.
PUBLIC HEARINGS:
Public Hearin on Request on Amendment to the Redevelopment Plan for CRA No. 25 located
at 6060 W. Old Potash Hi�y (J & L Westward EnterprisesLRegional Planning Director
Chad Nabity reported in 2017, City Council declared property CRA Area #25 as blighted and
substandard. The redevelopment plan proposes to authorize the use of T� Increment Financing
(TIF) for the acquisition of property and redevelopment of the property. J& L Westward
Enterprises LLC owns property in this area and is proposing to develop an expansion of Webb
Cutting Tools, a Grand Island Company at the Cornhusker Army Ammunition Plant. The
redevelopment plan specifies that the TIF will be used to offset allowed costs for acquisition of
the property. Estimated expenses are at over $360,000 for identified expenses eligible for tax
increment financing. The bond for this project would be issued for a period of 15 years and the
expected TIF proceeds for the 15 year period of $359,625. Staff recommended approval. Ron
Depue, 308 North Locust Street and Neil Niedfelt, President of the Southern Power District
spoke in support. No further public testimony was heard.
Public Hearing on Acquisition of Public Right-of Way for Old Potash Highway Roadway
Improvements; Project No. 2019-P-1 (Melodee A. Anderson- 3515 W Old Potash Highway and
R& D Investments, LLC- 120 Diers Avenue). Public Works Director John Collins reported that
the Old Potash Highway Roadway Improvements; Project No. 2019-P-1 was for improvements
to Old Potash Highway, as well as intersecting roadways from North Road to Webb Road. This
plan included widening and reconfiguring Old Potash Highway, signal and geometric
improvements at each intersection, access management throughout the corridor, and
improvements to the north and south of the Old Potash Highway corridor. Improvements were
needed to allow the corridor to safely handle the ever increasing traffic in this area. The property
owners had signed the necessary documents to grant the property. Staff recommended approval.
No public testimony was heard.
Page 2, City Council Regulaz Meeting, August 25, 2020
Public Hearing on Acquisition of Public Easements for Old Potash Highway RoadwaX
Improvements; Project No. 2019-P-1 (R & D Investments, LLC- 120 Diers Avenue). Public
Works Director John Collins reported that the Old Potash Highway Roadway Improvements;
Project No. 2019-P-1 was improvements to Old Potash Highway, as well as intersecting
roadways from North Road to Webb Road. The plan included widening and reconfiguring Old
Potash Highway, signal and geometric improvements at each intersection, access management
throughout the corridor, and improvements to the north and south of Old Potash Highway
corridor. Improvements were needed to allow the corridor to safely handle the ever increasing
traffic in this area. The property owners had signed the necessary documents to grant the
property. Engineering staff of the Public Warks Department negotiated with the property owner
for such purchase. Staff recommended approval. No public testimony was heard.
Public Hearin� on Acquisition of Public Right-of-Way and Public Easements for Old Potash
Highway Roadwav Improvements; Project No. 2019-P-1 (Barr None, LLC- 111 Diers Avenue�
Public Works Director John Collins reported that the Old Potash Highway Improvements;
Project No. 2019-P-1 was for improvements to Old Potash Highway, as well as intersecting
roadways from North Road to Webb Road. The plan included widening and reconfiguring Old
Potash Highway, signal and geometric improvements at each intersection, access management
throughout the corridor, and improvements to the north and south of the Old Potash Highway
corridor. Improvements were needed to allow the corridor to safely handle the ever increasing
traffic in this area. Public right-of-way and easements were needed to accommodate the roadway
improvements along Old Potash Highway. Negotiations were conducted with the property
owner. After being unable to reach a mutually agreeable solution a condemnation hearing was
held in Hall County Court on August 14, 2020. The appointed Board of Appraisers has issued
their determination. The amount offered and the condemnation amount was $43,200.00 Staff
recommended approval. No public testimony was heard.
CONSENT AGENDA: Motion by Paulick, second by Stelk to approve the Consent Agenda.
Upon roll call vote, all voted aye. Motion adopted.
Approving Minutes of August 1 l, 2020 City Council Regular Meetin�
Approving Re_a�pointment of Melissa Girard-Lemons to the Animal Advisory Board.
Approving Request from Thomas Foutch, 1933 Santa Anita Drive Unit B, Grand Island,
Nebraska for Liquor Mana er Designation with Riverside Golf Club, 2820 Riverside Drive.
#2020-193 - Approving Master Pole Attachment License Agreement between the Citv of Grand
Island and USCOC Nebraska/Kansas LLC.
#2020-194 - A� roving 2020 GIPD and HCSO Justice Assistance Grant (JAG) A�plication and
MOU. Councilmember Jones abstained.
#2020-195 - Approvin� Purchase of 2020 1/2 Ton Transit Van for Police Department on State
Contract with Anderson Auto Group of Lincoln, Nebraska in an Amount of $24,096.00.
Page 3, City Council Regulaz Meeting, August 25, 2020
#2020-196 - Approving Police Services Contract with Hall Countv Housing Authorit�HCHA).
#2020-197 - A�proving Annual Agreement for Financial Software Licensing and Support T�
Technolo�ies, Inc. in an Amount of $214,137.38.
#2020-198 - A�provin�Acquisition of Public Right-of-Way for Old Potash Highway Roadway
Improvements; Project No. 2019-P-1 (Melodee A. Anderson- 3515 W Old Potash Highwa�
R& D Investments, LLC- 120 Diers Avenue).
#2020-199 - Approvin�Acquisition of Public Easements for Old Potash Highwav Roadway
Improvements; Project No. 2019-P-1 (R & D Investments, LLG 120 Diers Avenue).
#2020-200 - A�proving Acquisition and Payment to County Court for Just Compensation from
Appraiser's Report for Public Ri�ht-of-Way, and Permanent and Temporary Easements for Old
Potash Highwav Roadwav Improvements; Project No. 2019-P-1 (Barr None, LLC- 111 Diers
Avenue .
#2020-201 - A�proving Temporary Construction Easement for Old Potash Highway Roadwav
Improvements; Project No. 2019-P-1 (R & D Investments, LLG 120 Diers Ave, Melodee A.
Anderson- 3515 W Old Potash Highway, Mehring, Inc. - 3803/3805 W Old Potash Hi ng wav).
#2020-202 - A�proving Certificate of Final Completion for Diffuser Replacement; Project No.
2020-WWTP-3 with JCI Industries, Inc. of Lincoln, Nebraska.
#2020-203 - A�proving Award of Proposal for Permitting Software and Implementation with
Carahsoft Technology Corporation of Reston, Virginia in an Amount of $77,851.62 for the first
vear and $49,438.62 annually for years 2-5.
#2020-204 - Approving Keno Satellite Location and Agreement for Full Circle Venue, LLC dba
Infinit.��e, 3333 Ramada Road.
RESOLUITONS:
#2020-205 - Consideration of Approving Amendment to the Redevelopment Plan for CRA No.
25 located at 6060 W. Old Potash Highway (J & L Westward Enterprises). This item was related
to the aforementioned Public Hearing.
Motion by Nickerson, second by Hehnke to approve Resolution #2020-205. Upon roll call vote,
all voted aye. Motion adopted.
PAYMENT OF CLAIMS:
Motion by Minton, second by Hehnke to approve the payment of claims for the period of August
12, 2020 through August 25, 2020 for a total amount of $6,715,888.91. Upon roll call vote, all
voted aye. Motion adopted.
Page 4, City Council Regulaz Meeting, August 25, 2020
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SPECIAL ITEMS:
CRA Budget Presentation. Regional Planning Director Chad Nabity presented the budget for the
Community Redevelopment Authority (CRA) for 2020-2021. Reviewed were the following:
Blighted and Substandard Areas. There are 30 designated Blighted and Substandard
Areas within the Grand Island City Limits. The City has authority to designate up to 35%
of the community a blighted and substandard. Presently 22.76% of the City had been
designated blighted and substandard. Council approved one blight study during the last
year for 31 (Ada and Henry). The proposed study for the Conestoga Mall Area (28) was
pulled for consideration by the applicant in December 2018 and does not appear there
was any traction on that study.
CRA Mission. The CRA was charged with taking action in specified areas of the
community to assist in the prevention and inhibit physical deterioration (blighted and
substandard conditions) thereby enhancing property values and creating incentives for
private investment.
Fiscal Resources. The CRA was requesting property t� revenues of $700,008 including
$195,805 for Lincoln Pool Construction and Bonds and $504,203 for all other CRA
programs. The CRA was requesting the same amount of funding as was approved last
year. At this point it was based on the certified valuation for 2020 the levy would be
0.02056 per $100 valuation. The CRA was allowed a levy of up to 0.026.
Program Funding_ The CRA had the ability to assist private developers and governmental
entities with the commercial, residential or mixed-use redevelopment projects throughout
the City. Specific detail on projects was as follow:
■ Fa�ade Development: For the fa�ade development program $200,000 had been
budgeted, including grants and interest buy down. Last year the CRA funded
$220,000 of fa�ade projects and received applications and approved this expenditure
for 3 projects. It was anticipated that all three of these projects would be completed
and the grants paid prior to the end of September 2020. Currently 1 project was in
line for the 2021 fiscal year. No projects would be approved until after the budget was
finalized. This program had been used extensively in the Downtown part of
Redevelopment Area #1 but had also been used in Areas #2 and #6. It was only
available in those areas that had a generalized redevelopment plan including
commercial fa�ade development.
■ Husker Harvest Days Commitments: Farm Progress, the City of Grand Island and the
CRA entered into an agreement in November of 2017 to facilitate infrastructure
improvements at the Husker Harvest Days site. The CRA had committed to transfer
$200,000 a year to Farm Progress for 10 years beginning in November 2018. The
City had agreed to transfer $200,000 from the food and beverage tax collections to
the CRA in October of each year to cover that payment. Farm Progress made more
than $7,500,000 worth of improvements to the site and would continue to hold at least
a three day event on site for the next 20 years or be subject to repayment penalties.
This would be extended an additional year per the redevelopment contract due to the
fact that Farm Progress was not holding a show during the 2020 year. This was the
third of ten scheduled payments.
Page 5, City Council Regular Meeting, August 25, 2020
TIF Pavments: The largest portion of the CRA Budget was the payments on the TIF
Bonds. These payments were funded by the tax increment created by each project.
Accounts were set up by the finance deparhnent after the first payment was received
from the treasurer. It was expected that the CRA would make TIF payments totaling
around $4,100,000 on all projects. The TIF line item does budget $500,000 to
accommodate new projects and the possibility that a project may need to pay off prior
to the end of the bond period. There were 66 TIF projects with signed contracts and
one project with an approved and unsigned contract (Paramount 9�' Street) The CRA
paid off the Old Walnut project and the first of Todd Enck's projects on Blake and
Darr. Additional projects would be paid off during the 20-21 tax year.
Other projects: In the blighted and substandard areas $200,000 had been reserved for
other projects. The CRA assisted in the development of property in northeast Grand
Island as part of the Starostka's Fifth Street project. A grant of over $111,000 was
approved in August to pay for sewer and assessments costs against this property. The
CRA purchased a portion of the bonds related to the sanitary sewer improvement
district for a portion of the lots being developed by Staxostka Contracting LLC. The
CRA would be paid back with the TIF on the development of housing in that area.
The CRA also granted $3,000 to the Senior Center for landscape improvements along
their Third Street entrance. The CRA had used this funding item in the past to fund
additional fa�ade improvement projects and to make grants to fund specific projects
for the business Improvement Districts, the Grand Island Parks Department, Fonner
Park, The Central Nebraska Humane Society, St. Stephens, Habitat for Humanity and
other community groups for specific projects that meet the mission of the CRA.
Jay Vavricek, 2729 Brentwood Boulevard spoke in support and requested the Council to restore
the t� asking dollar to 0.026 to encourage businesses to Grand Island. Mr. Nabity answered
questions regarding the fa�ade projects. He also mentioned several bills that had passed by the
Legislature.
General FY 2020/2021 Bud�et Discussion.
Finance Director Patrick Brown presented an update on the FY2020-2021 Budgets current status.
Mentioned was the revenue forecast models of prior years were no longer relevant. The revenue
forecasts for the remainder of FY2020 ranged anywhere form 25% to 50% reduction in sales tax
revenues with similar reductions in Fees and Services. The last four months Sales Tax Revenues
had been higher than anticipated. May through August Sales TaY receipts were down 8.6%
compared to last year. August Sales Tax receipts were only down 1%. Forecasted revenues for
FY2020 would be approximately 1.5% or $567,000 lower than budgeted revenues for FY2020.
Mr. Brown stated with the reduction of spending and with temporarily closing the Library and
workforce reduction by 5.5 FTE's, Golf Course, Heartland Shooting Park, Island Oasis, limited
Lincoln Pool attendance, and other various programs cancelled for the year, the General Fund
estimated savings in expenses of $1.5 million for FY2020.
The cash reserve percentage was forecasted at 42% with an estimated increase in cash in bank of
$1.0 million.
Page 6, City Council Regulaz Meeting, August 25, 2020
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Mr. Brown stated going into FY2021 budget, the City was forecasting a reduction in Sales Tax
revenues of 15% and reductions in Fees and Services. Department Directors were asked to
reduce their operating expenses as well. Property Tax valuations for tax year 2020 increased
5.42% from $3,231,585,947 to $3,406,720,662. Also mentioned was not transferring
$250,000.00 of KENO funds to General Fund. Sales Tax revenues were forecasted for a 15%
reduction in FY2021 but had been updated to a reduction of 11%. At the end of FY2021, the
estimated cash reserves would be 36.5%.
Discussion was held concerning the amount in cash reserves.
Jay Vavricek, 2729 Brentwood Boulevard commented and asked questions about the valuation,
mill levy, affordable care act funds, KENO funds, and Grand Generation funding.
ADJOURNMENT: The meeting was adjourned at 8:38 p.m.
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RaNae Edwards
City Clerk
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