01-15-2019 City Council Study Session Packet
City of Grand Island
Tuesday, January 15, 2019
Study Session Packet
City Council:
Jason Conley
Michelle Fitzke
Chuck Haase
Julie Hehnke
Jeremy Jones
Vaughn Minton
Mitchell Nickerson
Mike Paulick
Clay Schutz
Mark Stelk
Mayor:
Roger G. Steele
City Administrator:
Marlan Ferguson
City Clerk:
RaNae Edwards
7:00 PM
Council Chambers - City Hall
100 East 1st Street, Grand Island, NE 68801
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City of Grand Island Tuesday, January 15, 2019
Call to Order
This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open
Meetings Act in conducting business. A copy of the Open Meetings Act is displayed in the back of this room
as required by state law.
The City Council may vote to go into Closed Session on any agenda item as allowed by state law.
Invocation
Pledge of Allegiance
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for
Future Agenda Items form located at the Information Booth. If the issue can be handled administratively
without Council action, notification will be provided. If the item is scheduled for a meeting or study
session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve
time to speak. Please come forward, state your name and address, and the Agenda topic on which you will
be speaking.
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City of Grand Island
Tuesday, January 15, 2019
Study Session
Item -1
Friends of the Grand Island Parks Presentation
Staff Contact: Todd McCoy, Parks & Recreation Director
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FRIENDS OF GRAND ISLAND PARKS
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WHY FRIENDS OF GRAND ISLAND PARKS?
In July of 2017, the proposed City of Grand
Island’s 2018 Budget had a huge impact on the
gardens in the city’s parks. •Recommended cuts included elimination of the
city greenhouse, the horticulturist’s position,
and seasonal help for the horticulturist. •Once the dust settled, the greenhouse and the
horticulturist’s position were saved but
approximately $15,000 in funding for all
seasonal help was eliminated. •Hence in a REACTION to these cuts, Friends
of Grand Island Parks was born.
•Which means last summer you saw flowers in
the parks, at City Hall, the City Cemetery,
Island Oasis, and the Heartland Shooting Park
only because of the support provided by
Friends of Grand Island Parks Volunteers.
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THE MEASURE OF ANY GREAT
CIVILIZATION IS ITS CITIES AND
THE MEASURE OF A CITY’S
GREATNESS IS TO BE FOUND IN
THE QUALITY OF ITS PUBLIC
SPACES, ITS PARKS AND
SQUARES.
JOHN RUSKIN, ENGLISH WRITER AND ART CRITIC
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AFTER HOURS OF RESEARCH AND
DISCUSSIONS, WE DEFINED OUR BELIEFS
A group of concerned citizens who envision a well-
balance park system. Friends of Grand Island Parks
believe that a healthy park system: •supports the rejuvenation of the body, mind, and
spirit, •contributes to inclusivity and democracy, •ensures gathering spaces that help to build
community and contribute to neighborhood safety, •promotes equitably distributed resources between
parks and recreation, •promotes the health and balance between urban
and natural environments, •forms part of a healthy economic base for our
neighborhoods and the city, •nurtures healthy relationships with family,
community, and the environment around us, •creates a legacy through education, history, and
community partnerships.
Friends of Grand Island Parks. . .
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The Mission of Friends of Grand
Island Parks is to provide support to
the City of Grand Island in order to
assist in developing, maintaining, and
increasing the value and importance
of city parks as a place of natural
beauty, culture, recreation and
education for this and future
generations.
FGIP is a nonprofit fund sponsored by the
Grand Island Community Foundation.
Mission of Friends of Grand Island Parks. . .
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“PARKS AND PLAYGROUNDS
ARE THE SOUL OF A CITY”
It has been said. . .
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TAKE A MOMENT TO THINK -
Assume the role of a newcomer to Grand Island, gather a
mental picture as you think of these parks?
Ashley Park
Augustine Park
Broadwell Park
Buechler Park
Cedar Hills Park
Eagle Scout Park
George Park
Grace Abbott Park
L.E. Ray Park
Lincoln Park
Lions Club Park
Memorial Park
Pier Park
Pioneer Park
Ryder Park
Henry Schuff Park
Sothman Park
Sterling Estates Park
Stolley Park
Suck’s Lake/Park
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WHAT DO OUR PARKS TELL OUR
CITIZENS AND OUR VISITORS ABOUT
GRAND ISLAND?
It has been said. . .
You can get the true essence of a city just by
hanging out in their parks!
Knowing that. . .
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Vision of Friends of Grand Island Parks. . .
providing, protecting, and preserving parks for enjoyment, education, and inspiration,
cultivating experiences focusing on health, enjoyment, fun, and learning for people of all ages and abilities,
serving as a cultural, educational, and recreational resource, connecting people to the land and each other,
developing, beautifying, maintaining, restoring and preserving passive and active leisure pursuits and opportunities,
celebrating Grand Island’s natural, cultural, artistic, historical, and recreational resources, by providing well-maintained and safe parks that meet the needs of individuals, families, and the community.
The Vision of Friends of Grand Island Parks is to assist
in developing, maintaining, and increasing the value
and importance of city parks to ensure these parks are
part of daily life for this and future generation and, in
turn, shape the character of the Grand Island area by:
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WHY BRING OUR VISION TO LIFE?
We’ve discovered parks are: •A reflection of the quality of life in a community, •A source of positive economic benefits, enhanced property
values, and generated money for the local economy. •Gathering places for families and social groups, •A way to build relationships, and promote social interaction, •A measurable physical and mental health benefit, •Alternative hands-on learning environments for young
people of all ages and abilities, •An important setting for promoting arts and cultural
programs, •A sense of community pride. •One of the top three reasons that businesses use in
relocation decisions.
This is where it gets exciting! Friends of G.I. Parks have done a bit of research to
explore parks and botanical plantings that draw large numbers of visitors like the
Heritage Trails Quilt Gardens in Elkhart County, Indiana. We’ve also visited parks in
almost every state and several foreign countries but we’ve paid special attention to
parks in Nebraska, South Dakota, Iowa, Colorado, and New Mexico.
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Perhaps, Sharon Roerty, Senior Program Officer of Robert Wood Johnson Foundation
said it best -
“The power of parks is that they transcend age, ethnicity, race, income, politics and
geography. You know a park is working when you show up on a Sunday, or better yet
any day, and see people on a bike or on foot, playing games or activities that
celebrate culture. Parks give us freedom to explore and to discover, to see butterflies,
birds, and other animals. Parks are a necessary part of our culture and humanity -
they provide the free space to play, to gather, or to simply be by yourself. Parks meet
our need to connect with nature. They feed our souls.
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SO WHAT DOES THAT MEAN FOR GRAND ISLAND?
Friends of G.I. Parks decided we need to
look beyond weeding flowerbeds. If we
want to join in the efforts to Grow Grand
Island we need to become PROACTIVE and DREAM BIG!
We want to do much more than be satisfied with status quo. Our DREAM is to
make G.I. the DESTINATION SITE if you
want to see GORGEOUS PARKS with AMAZING ART!
We know that success breeds success.
With everyone working together, not only
will we grow a bigger sense of community but our passion and pride in G.I. will be
visible to our citizens and our visitors!
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WE START BY REVITALIZING STOLLEY PARK
Where we help the past step into the present and become the future!
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HERE’S THE VISION
The current 4 large gardens will be made into 8 smaller “themed” gardens with additional
paths made from pavers and crushed rock. Each garden will have artwork reflecting the
garden’s theme. The Stolley garden will have additional lighting along the pathways and
uplighting artwork.
Pathways are handicapped accessible and give visitors the chance to have a closer view of
the plants and artwork.
Signs will be found throughout the garden to identify plants as well as donors to the Stolley
Garden Project. Our early donors include Vlcek Gardens, Sheffield Tree Service, Tilley’s
Sprinklers, Jim Cannon, and Conda Allen Photography. Also recognized will be supporters including Ken Gnadt, the Grand Island Independent, G.I. Northwest High School’s Alternative Education Program along with FGIP volunteers.
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THE GARDENS AT STOLLEY
Themes of the eight gardens at Stolley Parks include the:
•A-B-C Garden containing plants with names representative of the
alphabet. The sculpture in this garden will be “kid friendly” allowing
children to interact with the sculpture as they explore the garden.
•Kaleidoscope Garden consisting of plants that reflect a prism of nature’s
palette. This is another garden that will invite children to explore the
colors of nature as well as the sculpture located there.
•Sensory Garden incorporating plants and other elements that provide
garden visitors of all ages with the opportunity to be immersed in the
scents, textures, and colors of plants.
•Pollinator Garden has an environment that is designed for the growth,
development, and feeding of butterflies and other flying insects.
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THE GARDENS AT STOLLEY,
CONTINUED
The remaining four themes for the gardens at Stolley Parks include the:
•Vintage Garden composed of a variety of plants that would have been
found in the gardens of the Stolley family and their neighbors.
•Healing Garden combining a variety of plants and herbs used by early
settlers as well as modern-day individuals who are interested in exploring
the growing role of nature in healing and wellness.
•Peace Garden providing an inspirational way to honor our veterans as well
as pay tribute to the life of a loved one, while providing a quiet place to
remember. Visitors will enjoy the sound of water from artwork that includes
a water feature complete with a paver bridge. The Peace Garden will include
memorial benches, pavers, and flowers such as Forget-Me-Nots.
•Vintage Rose Garden composed of Heirloom Roses that require low
maintenance and are disease resistant yet provide the perfect backdrop for
the Celebration Circle.
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A-B-C and Pollinator Gardens
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Kaleidoscope Garden
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Sensory Garden
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Healing, Sensory, Vintage and Peace
Gardens
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We’re adding something new: A Celebration Circle
The west end of the garden will include an area that has been extended to include pavers in the shape of a circle suitable for additional seating or tables. Also included in this new area is a stage, a raised brick ledge for additional seating, and at the old-fashioned rose garden. This area would be ideal for special events such as weddings, anniversary celebrations, marriage proposals, or weekend concerts/performances.
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STOLLEY PARK IS JUST THE BEGINNING
FGIP plans on “growing” an endowed fund to
support the G.I. parks, ensuring a sound future
that includes:
•Scheduling special events that bring families
and other community members together like the
free outdoor movie nights started last year at Grace Abbott Park by Jeremy and Alexia Fields.
•Partnering with the City Library to provide story walks in the parks where families can read
children books as they walk together through the park.
•Adding other Grand Island parks in our vision to include artwork in the flowerbeds.
•Working with the Grow Grand Island Arts and
Humanities committee as we “grow” our vision
of making the greater Grand Island area a
destination location for visiting amazing gardens
and sculptures.
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VOLUNTEERS HELP MAKE THIS ALL POSSIBLE
•During the fall and winter, volunteers are the
backbone of the city greenhouse.
Greenhouse Volunteers assist the City
Horticulturist with tasks such as potting and
repotting of plants; plant propagation or care
and maintenance of annuals and perennials.
•Once spring hits, volunteers move outside
and begin planting and caring for the
flowerbeds found in nine locations across
the city including: Island Oasis, Pier Park,
Memorial Park, Schuff’s Park, Grace Abbott
Park, City Hall, Pioneer Park and City
Cemetery.
•In addition to the flowerbeds, volunteers also
plant over 80 flowerpots that are located at
City Hall, Heartland Shooting Park, and
Island Oasis.
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This past year over 87 individuals volunteered
more than 4,100 hours. This amounts to a
donation of approximately $36,900 to the City of
Grand Island. It’s important to know, 28 of those
volunteers are adults with disabilities who are
provided with real life occupational experiences.
However, as we reflect on this year we’ve learned
that, as great as volunteers are, we can’t count
on them to work a regular daily or hourly
schedule and replace hired seasonal
employees. This is especially true during the
hot, humid summer months when our volunteer
numbers drop markedly and when we really
need their help to maintain the flowerbeds.
With that in mind, we will continue to urge the city
to find a way to include an additional $15,000 in
the Parks and Recreation budget which is the
approximate cost necessary to fund the hiring of
2-3 seasonal employees.
FGIP VOLUNTEERS ARE PRICELESS!
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FGIP GOALS ACCOMPLISHED
•Built a foundation of donors who have helped with the
Stolley Park Revitalization Project including Vlcek
Gardens, Sheffield Tree Service, Tilley’s Sprinklers, and
Jim Cannon.
•Began work on PR and marketing strategies by giving
presentations to local service groups and organizations
using the photography of Conda Sorensen Allen.
•Rebuilt the interior of the city greenhouse to ensure the
safety of the volunteers who work there.
•Maintained all the propagation and plantings in the city
parks, the City Cemetery, Island Oasis, the Heartland
Shooting Park, and City Hall.
•Began a partnership with the City Library looking toward
the development of Story Walks in designated parks.
•Obtained our 501c3 Nonprofit status by applying for and becoming a fund sponsored by the GI
Community Foundation.
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GOALS FOR NEXT SPRING. . .
Build a bigger volunteer base
Continue to urge the city to find the funding
for full time and part time seasonal garden
help
Work on our FGIP Strategic Plan
Begin scheduling themed events in the
parks during the spring and summer
Begin a capital campaign for FGIP
Begin work on accumulating funds for an
endowment that will support FGIP
Watch for the article in NE Life Magazine
featuring F.G.I.P.
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MORE GOALS FOR NEXT SPRING. . .
Begin work on the Stolley project
Work on Stolley infrastructure
including lights, a water feature,
restore pavers and pathways to be
handicapped accessible and safe,
install watering system for the
garden, replace benches, and repair
existing gazebos
Begin work on the Celebration Circle,
wall, rose garden and Celebration
Stage
Complete one or more themed
gardens with sculptures
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WE INVITE YOU TO JOIN US ON A VIRTUAL REALITY TOUR OF
THE NEW STOLLEY PARK.
FOLLOWING THAT WE’LL SPEND SOME TIME WITH YOUR QUESTIONS.
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ANY DAY SPENT IN THE PARK IS A GOOD DAY!
Questions / Comments
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Friends of Grand Island Parks Steering Committee:
•Ann Marsh
•Ben Wassinger
•Duane Woodward
•Kathy McFarland
•Jan Tell
•Ken Tell
•Larry Cast
•Terry Slips
•Vikki Deuel
•Jeremy Fields
•Alexia Fields
•Brad Foster
We may be a committee of a few but we always welcome
anyone with a sense of community pride and the passion
for making a difference!
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City of Grand Island
Tuesday, January 15, 2019
Study Session
Item -2
Tax Increment Financing (TIF) Processes and Procedures in
Grand Island
Staff Contact: Chad Nabity
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COMMUNITY
REDEVELOPME
NT AUTHORITY
Tax Increment Financing Processes and
Procedures In Grand Island
January 15, 2019
Chad Nabity, AICP
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COMMUNITY
REDEVELOPME
NT AUTHORITY
Tax Increment Financing
(TIF)
1. What is it?
What is the Process for a TIF
Application?
What is the impact of using it?
How has it been used in Grand
Island?
When should TIF be used?
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COMMUNITY
REDEVELOPME
NT AUTHORITY
What is TIF?
It is a method authorized by the Nebraska
Constitution that allows cities to use an
increase in real estate taxes to rehabilitate
substandard and blighted areas.
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COMMUNITY
REDEVELOPME
NT AUTHORITY
Substandard and Blight
Substandard means generally an area in
which there is:
…a predominance of improvements which
are dilapidated, deteriorated, old, obsolete
overcrowded and which is detrimental to
public health, safety, morals or welfare.
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COMMUNITY
REDEVELOPME
NT AUTHORITY
Substandard and Blight
2. Blighted means generally an area in which there are:
…deteriorated structures, defective or inadequate
street layout, faulty lot layout, insanitary or unsafe
conditions, diversity of ownership, improper or obsolete
platting, existence of conditions which endanger life or
property by fire or other causes, or any combination
which substantially impairs the sound growth of the
community, retards the provision of housing or
constitutes an economic or social liability and is
detrimental to public health, safety, morals or welfare;
AND
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COMMUNITY
REDEVELOPME
NT AUTHORITY
Substandard and Blight
Continued:
Has one of these:
Average age of structures more than 40
years; unemployment 120% of state average;
more than 1/2 of plotted land has been
undeveloped and in city limits for 40 years;
per capita income is lower than city average;
or area has had stable or decreasing
population based on census.
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COMMUNITY
REDEVELOPME
NT AUTHORITY
Substandard and Blight
1.Area can include bare property if impacted by other
conditions.
2.Does not mean every building is in poor condition.
3.Declaration of substandard and blight is not registered
in register of deeds office nor the assessors office.
4.No history of a negative impact on value of property
nor sales price.
5.Terms are established in the Nebraska constitution and
can only be changed by a vote of the people.
6.Cannot blight more than 35% of geographical limits.
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COMMUNITY
REDEVELOPME
NT AUTHORITY
Process for Declaring an area of the City
Substandard and Blighted
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COMMUNITY
REDEVELOPME
NT AUTHORITY
Process for Declaring an area of the City
Substandard and Blighted
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COMMUNITY
REDEVELOPME
NT AUTHORITY
Before a TIF Application is Considered
1.Meet with CRA Staff and others if needed
to discuss project
2.Has the Area been declared blighted and
substandard?
3.Is the proposed project consistent with
the comprehensive plan?
4.How much of an increment will be
created?
5.What are the eligible expenditures?
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COMMUNITY
REDEVELOPME
NT AUTHORITY
TIF Approval Process
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COMMUNITY
REDEVELOPME
NT AUTHORITY
“But for test”
1.TIF is not a matter of right, but a matter
of legislative and administrative
decision.
2.TIF cannot be authorized unless the
project is one which:
a.would not occur in the substandard
and blighted area without TIF, and
b.is not financially feasible without TIF.
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COMMUNITY
REDEVELOPME
NT AUTHORITY
Cost Benefit Analysis
Before recommending approval of a redevelopment
plan to the council, the CRA must undertake a cost
benefit analysis consisting of the following factors”
Whether the project results in a tax shift.
Public infrastructure and public service needs and
local tax impacts.
Impacts on employers and employees within the
project area.
Impacts on employers and employees within and
outside the city.
Impacts on student populations of school districts.
Any other impacts determined to be relevant.
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COMMUNITY
REDEVELOPME
NT AUTHORITY
About the TIF Bond
1.No liability on City or Tax Payers to pay TIF
debt…only payment is from increased taxes on
redevelopment project.
2.If increased taxes are insufficient to pay off TIF
debt, bond is cancelled at end of 15 years with no
further liability.
3.If taxes are higher than expected and TIF debt is
paid off prior to 15 years, balance of taxes are
returned to treasurer for payment to taxing entities.
4.Generally the developer purchases the TIF debt
and takes risk of being paid.
5.Generally interest on TIF debt is taxable.
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COMMUNITY
REDEVELOPME
NT AUTHORITY
Limitation of uses of TIF
1.Buy real property.
2.Demolition and site preparation.
3.Install streets, utilities, parks, public spaces, over
and under passes.
4.Public parking facilities and convention centers,
lighting, shelters and benches.
5.Costs for planning, design and engineering.
6.Costs incurred by city.
7.Rehabilitation of existing structures [Cannot build
new buildings].
8.Workforce Housing
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COMMUNITY
REDEVELOPME
NT AUTHORITY
Purpose of the CRA
. The CRA is charged with taking action in
specified areas of the community to remove,
prevent or inhibit physical deterioration (blighted
and substandard conditions) that will result in
lower property values and create disincentives to
private investment.
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COMMUNITY
REDEVELOPME
NT AUTHORITY
Possible Goal Statements for the Use of TIF
Preserve the Downtown Core
Retain and Attract Retail Development
Create Base Employment
Support Infill Development
Use Micro Blight and Small Projects to Remove and
Remediate Problem Properties
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How long does it take to use tax-
increment financing?
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Well . . . It’s not exactly fast.
But there’s a good reason why.
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Public Involvement!
Electeds & General Public
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Meeting Timeline Walk-Through
(Fast Track example)
1.CRA: Receives the initial TIF application and reviews it at a public
meeting.
If this application involves any resi-
dential uses the CRA Director sends
a letter to the Finance Director at
GIPS. Prior to the application being
presented to the CRA.
JANUARY
09
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2. Planning Commission: Reviews the application
for land use and holds a public hearing.
Taxing Entities Invited by Certified
Mail and Public Hearing Notice Pub-
lished 2 times at least 10 days prior
to the meeting. This is a public
meeting any member of the public
may attend and speak.
FEBRUARY
6
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3. CRA: Reviews the findings from the Planning Commission.
FEBRUARY
13
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4. City Council/Village Board: Reviews findings from
CRA and Planning Commission and decides whether to pro-
ceed with project.
FEBRUARY
26
Taxing Entities Invited by Certified
Mail and Public Hearing Notice Pub-
lished 2 times at least 10 days prior
to the meeting. This is a public
meeting any member of the public
may attend and speak.
If Council Approves the Redevelopment
Plan , The Project is Eligible for TIF
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5. CRA: Formalizes agreement with developer at public
meeting.
MARCH
9
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After all the meeti ngs . . .
The developer gets a TIF bond, which is
used to secure private financing for the pro-
ject. Project construction occurs.
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Year-end 2019: Developer pays the property taxes on the pre-
improvement value as of Jan. 1, 2018. Taxes ($2,112) are dis-
tributed to political subdivisions.
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Year-end 2020: Developer pays the property taxes on the post-
improvement value as of Jan. 1 2019. Taxes ($2,112) are paid
out to the political subdivisions. The $10,560 in new taxes on
the improvement are paid to the CRA to pay for the bond.
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All TIF Projects
January 7, 2019
CRA of Grand Island
Approved Projected Projected 2018 Projected Value
Project Contract Date Term Payoff***Value*Base TIF Excess Valuation vs. Actual Value TIF Amount Project Description
1 Yancey Hotel
2 GILI**12/15/1996 12/15/2011 $ 3,000,000 $ 9,561 $ 1,770,879 $548,333 60 units multifamily Low to Moderate income housing
3 GI Cherry Park, LTD. Two**12/15/1998 12/15/2013 $ 2,700,000 $ 9,942 $ 1,423,813 $479,799 60 units multifamily Low to Moderate income housing
4 RSF LTD PARTNERSHIP (Gentle Dental)**9/3/2002 12/31/2017 12/31/2017 $ 355,000 $ 168,849 $ 265,541 $ 434,390 $37,000 Remodel existing structure into dental office
5 PROCON (City Hall)9/1/2003 12/31/2018 12/31/2018 $ 1,063,000 $ 189,234 $ 1,227,538 $ 1,416,772 $162,967 Acquistion/Demotion and Renovation of Old City Hall
6 Walnut Housing, Inc 7/28/2004 12/31/2019 12/31/2019 $ 3,500,000 $ 107,150 $ 2,200,860 $ 2,308,010 $ (1,191,990)$668,000 88 Units of affordable housing and 1000 sq ft. of commercial office space
7 Bruns Pet Grooming 3/1/2006 12/31/2021 12/31/2018 $ 497,960 $ 61,959 $ 664,004 $ 725,963 $ 228,003 $133,533 Build a 4704 square foot building for pet boarding and grooming
8 Girard Vet Clinic 9/21/2006 12/31/2021 12/31/2021 $ 541,163 $ 78,431 $ 491,853 $ 570,284 $ 29,121 $142,500 Build a 4700 square foot building for a veterinary office
9 Southeast Crossings 11/15/2006 12/31/2021 12/31/2021 $ 786,353 $ 232,690 $ 729,399 $ 962,089 $ 175,736 $182,560 Incorporate an existing 1500 sq foot building into a 7,780 square foot commercial center
10 PROCON (Geddes St. Appts)10/18/2007 12/31/2022 12/31/2022 $ 1,400,000 $ 27,498 $ 1,471,256 $ 1,498,754 $ 98,754 $420,000 Build 5 four-plex handicapped accessible apartment buildings
11 South Pointe Development LLC 1/1/2009 12/31/2024 12/31/2024 $ 5,330,000 $ 234,722 $ 3,889,696 $ 4,124,418 $ (1,205,582)$1,564,409 Build 80+ room Hotel on South Locust
12 Todd Enck 1/1/2009 12/31/2024 6/30/2019 $ 300,000 $ 20,467 $ 290,472 $ 310,939 $ 10,939 $46,870 Build 2 Duplex Buildings at Blake and Darr
13 Casey's Store (Five Points)3/19/2009 12/31/2024 12/31/2024 $ 1,400,000 $ 172,713 $ 653,121 $ 825,834 $ (574,166)$383,459 Redevelop existing convenience store with new one at Five Points
14 John Schulte Contruction 3/2/2010 12/31/2025 12/31/2021 $ 293,582 $ 63,684 $ 361,019 $ 424,703 $ 131,121 $55,525 Build 4 unit apt. building at Anna and Lincoln Remove existing single family home
15 Pharmacy Properties, LLC 2/17/2010 12/31/2025 12/31/2021 $ 387,000 $ 39,495 $ 549,595 $ 589,090 $ 202,090 $111,000 Build Pharmacy on 4th street
16 Ken Ray, LLC 7/1/2010 12/21/2025 6/30/2020 $ 1,800,000 $ 856,619 $ 2,148,693 $ 3,005,312 $ 1,205,312 $299,600 Build 17,500 square feet of commercial/office space at Locust and Stolley
17 Poplar Street Water Project 4/21/2010 12/31/2025 12/31/2025 $ 1,415,071 $ 1,155,016 $ 626,310 $ 1,781,326 $ 366,255 $136,000 Install water main on Poplar Street between 9th and 12th Streets (CRA Funded)
18 Skagway**5/5/2011 12/31/2026 $ 4,864,666 $ 2,252,800 $ 908,937 $ 3,161,737 $ (1,702,929)$798,654 Redevelop existing grocery store at Five Points
19 Arnold Wenn 2/28/2012 12/21/2027 12/31/2027 $ 180,193 $ 19,523 $ 211,168 $ 230,691 $ 50,498 $46,950 Demolish Existing Structure and Build a Duplex at 13th Street and Huston
20 Token Properties LLC 12/15/2011 12/31/2027 12/31/2027 $ 150,316 $ 14,507 $ 132,112 $ 146,619 $ (3,697)$43,255 Demolish Existing Structure and Build a Duplex on north Ruby
21 Stratford Plaza LLC (Howard Johnsons)2/29/2012 12/31/2027 12/31/2027 $ 3,690,783 $ 2,095,733 $ 1,532,860 $ 3,628,593 $ (62,190)$524,520 Redevelop existing hotel, restaurant and conference center at S. Locust and U.S. Hwy 34
22 EIG Grand Island LLC 6/13/2012 12/31/2027 12/31/2027 $ 6,872,758 $ 4,126,165 $ 3,317,944 $ 7,444,109 $ 571,351 $898,350 Redevelop existing grocery on State Street into 4 tennant spaces
23 Baker Development 8/17/2012 12/31/2027 12/31/2025 $ 180,000 $ 20,909 $ 173,959 $ 194,868 $ 14,868 $42,000 Build a Duplex on two vacant lots purchase property and extend utilities
24 Token Properties LLC (Carey St)9/19/2012 12/31/2027 12/31/2025 $ 360,000 $ 38,645 $ 363,626 $ 402,271 $ 42,271 $78,000 Demolish existing structure and build 2 duplexes on site
25 Gordman Grand Island LLC 9/19/2012 12/31/2027 12/31/2027 $ 6,000,000 $ 2,187,305 $ 3,284,930 $ 5,472,235 $ (527,765)$1,072,785 Renovate existing commercial space on U.S. 281
26 Token Properties LLC (Kimball St)12/19/2012 12/31/2028 $ 160,000 $ 17,475 $ 127,642 $ 145,117 $ (14,883)$38,372 Acquistion and Demolition of exisitng house and replace with duplex
27 Auto One Inc.11/14/2012 12/31/2028 $ 480,000 $ 90,194 $ 646,954 $ 737,148 $ 257,148 $159,000 Build tri-plex on Pine St. and renovate commercial space Locust St.
28 Habitat (St Paul Road)11/19/2012 12/31/2028 $ 240,000 $ 46,851 $ 201,918 $ 248,769 $ 8,769 $66,000 Acquistion and Demolition of existing house and replace with 3 houses
29 Chief 5/29/2013 12/31/2028 $ 3,869,145 $ 2,183,323 $ 175,270 $ 2,358,593 $ (1,510,552)$579,870 Construction of an addition to the Chief Fabrication Plant on Adams St.
30 Copper Creek (The Guarantee Group)7/26/2013 12/31/2039 $ 31,500,000 $ -$ 2,912,195 $4,000,000 Construction of 200+ single family dwellings
2013 Base Year Houses 7/1/2014 12/31/2029 $ 134,194 $ 3,450,937 $ 3,585,131 $4,000,000
2014 Base Year Houses 7/1/2015 12/31/2030 $ 805,379 $ 13,168,759 $ 13,974,138
2015 Base Year Houses 7/1/2016 12/31/2031 $ 390,617 $ 12,363,714 $ 12,754,331
2016 Base Years Houses 7/1/2016 12/31/1932 $ 170,394 $ 3,928,201 $ 4,098,595
2017 Base Years Houses 7/1/2017 12/31/1933 $ 17,377
$ 34,412,195
31 Habitat (8th and Superior)4/24/2014 12/31/2029 $ 455,000 $ 14,125 $ 506,102 $ 520,227 $ 65,227 $123,000 Develop lots for and build 7 Habitat Homes
32 Mainstay Suites 4/16/2014 12/31/2029 $ 3,000,000 $ 263,105 $ 2,969,301 $ 3,232,406 $ 232,406 $479,685 Purchase Property, Install Utilities and Build an Extended Stay Hotel
33 Tower 217 6/24/2014 12/31/2029 $ 750,000 $ 99,655 $ 1,225,269 $ 1,324,924 $ 574,924 $236,000 Renovate an existing Downtown Building
34 Pridon LLC 5/7/2015 12/31/2030 $ 2,400,000 $ 1 $ 1,778,183 $ 1,778,184 $ (621,816)$330,000 Extend utilities to support veteran's housing
35 SMD-AWG Five Points 6/5/2015 12/31/2030 $ 7,858,000 $ 915,957 $ 5,662,281 $ 6,578,238 $ (1,279,762)$1,600,000 Purchase Property Building New Grocery Store, Extend Utiliies, Remove old Store
36 Grand Island Mall 10/30/2014 12/31/2030 $ 21,570,000 $ 2,044,858 $ 8,936,921 $ 10,981,779 $ (10,588,221)$5,600,000 Renovate existing commercial space on U.S. 281, Create additional outlots
37 TC Enck Builders, Inc (1616 S Eddy)6/10/2015 12/31/2030 $ 160,000 $ 9,460 $ 157,891 $ 167,351 $ 7,351 $38,000 Extend utilities and build duplex on vacant lot
38 T & S Development (312 W 3rd)11/2/2015 12/31/2030 $ 1,136,841 $ 353,827 $ 591,621 $ 945,448 $ (191,393)$272,788 Finish 2nd floor office space in downton building
39 Bosselman Real Estate (1616 S Locust)9/29/2015 12/31/2030 $ 22,778,988 $ 2,652,701 $ 4,184,187 $ 6,836,888 $ (15,942,100)$6,552,000 Renovate Existing Building and build hotel and office space
40 Hatchery Holdings, LLC 12/31/2031 $ 11,600,000 $ 123,002 $ 7,657,364 $ 7,780,366 $ (3,819,634)$2,675,913 Purchase Land, Extend Utilities, Site work, Engineering for Hatchery Operation
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41 Pump & Pantry, Inc.5/9/2016 12/31/2031 $ 2,652,085 $ 393,355 $ 393,355 $748,688 Purchase Land, Extend Utilities, Site work, Engineering for Convenience Store
42 Wing Properties Inc.5/11/2016 12/31/2031 $ 382,266 $ 71,384 $ 128,938 $ 200,322 $ (181,944)$110,485 Renovate Existing Building for commercial and residential space
43 Talon Apartments 1/1/2017 12/31/2031 $ 19,484,580 $ 33,545 $ 3,470,617 $ 3,504,162 $ (15,980,418)$4,778,475 Develop 288 Apartments in 8 building on Vanosdal Ball Fields (first 72 units)
Talon Apartments (2017 Units)1/1/2018 $ 10,800 $ 2,764,659 $ 2,775,459 $ 2,775,459 Second 72 Units
44 Hoppe Homes East Park on Stuhr 12/31/2031 $ 7,500,000 $ 166,178 $ 5,045,957 $ 5,212,135 $ (2,287,865)$1,495,000 Develop 80 apartment in 7 buildings east of Cherry Park Apts (GILI 1 and 2)
45 TW Ziller Labor Temple 12/31/2031 $ 721,747 $ 64,628 $ 46,515 $ 111,143 $ (610,604)$220,000 Develop 11 apartments in the Federation of Labor Temple Building Downtown
46 Middleton 9/24/2016 12/31/2031 $ 936,667 $ 886,524 $ 659,287 $ 1,545,811 $ 609,144 $247,561 Develop regional warehouse and remodel office space for Middleton Electric
47 Think Smart ( 204 N. Carey)3/15/2017 12/31/2032 12/31/2024 $ 519,140 $ 8,400 $ 86,816 $ 95,216 $ (423,924)$48,140 Develop empty lot into four-plex apartment
48 Peaceful Root (Brown Hotel 112 W. 2nd)3/15/2017 12/31/2032 $ 1,014,538 $ 140,447 $ 140,447 $ (874,091)$263,000 Develop former hotel into three apartments, yoga studio, retail space and parking garage
49 Weinrich Developments (523 E. Division)8/9/2017 12/31/2032 $ 300,000 $ 39,149 $ 65,255 $ 104,404 $ (195,596)$52,768 Demolish substandard single-family house and replace with four-plex apartment
50 Prataria Ventures (Hospital)9/26/2017 12/31/2032 $ 63,000,000 $ 381,000 $ 381,000 $ (62,619,000)$15,800,000 Build Hospital, Medical Office Building and Hotel
51 O'Neill Wood Resources 11/28/2017 12/31/2032 $ 1,140,993 $ 199,650 $ 199,650 $ (941,343)$209,000 Puchase property and construct Recycling Center
52 Hedde Building LLC (Hedde Building)**9/12/2018 12/31/2033 $ 1,952,402 $ 101,218 $ 101,218 $ (1,851,184)$603,425 Redevelop Downtown Building for Commmercial and Residential Uses
53 Urban Island LLC (320 N Pine)1/3/2018 12/31/2032 $ 654,361 $ 150,688 $ 150,688 $ (503,673)$164,181 Redevelop Downtown Building for Commmercial and Residential Uses
54 Take Flight Development (209 W 3rd)1/11/2018 12/31/2032 $ 414,889 $ 110,564 $ 110,564 $ (304,325)$99,200 Redevelop Downtown Building for Commmercial and Residential Uses
55 Personal Automotive** Mendex Enterprises Pending $ 4,396,629 $ 717,090 $ 717,090 $ (3,679,539)$886,695 Redevelop 4 Buildings for Commercial/Industrial Purposes
56 Weinrich Developments (408 E 2nd)$ 300,000 $ 8,712 $ 8,712 $ (291,288)$40,946 Acquire and clear property and build 3 Plex on a Vacant Lot
57 Copper Creek Phase 2 (The Guarantee Group)**6/13/2018 12/31/2040 $ 18,904,382 $ 504,382 $ 504,382 $ (18,400,000)$4,754,848 Develop 80 Single Family Homes over a period of up to 10 years
Copper Creek Phase 2 2017 Lookback $ 20,417 $ 20,417 $ 20,417
58 Cenrtral NE Truck Wash Inc 8/8/2018 12/31/2033 $ -$ -$849,520 Aquire and clear property for a Truck Wash and Trailer Washout Facility
59 Grand Island Hotel LLC 11/14/2018 12/31/2033 $ -$1,824,179 Acquire propery install utilities and streets and build a 79 unit hotel
60 Paramount Development LLC (Sears 2nd Floor)12/12/2018 12/31/2034 $ 550,000 $ 77,000 $ 77,000 $159,814 Acquire propery and renovate the 2nd floor of the old Sears Building for 4 apartments
61 Orchard LLC/Hoppe Homes LP Pending $ 40,000,000 $ 203,000 $ 203,000 $6,000,000 To develop property and build 181 units of work force housing over an estimated 9 years
62 Paramount Development LLC (Sears 1st Floor)Pending $ 640,000 $ 52,000 $ 52,000 $199,000
Acquire property renovate part of the 1st floor of the old Sears Buidling for commericial
and residential uses
Wing Properties Inc. 112 E 3rd St Pending $105,085 Redevelopment downtown property for main floor commercial and upper floor residential
Rawr Holding LLC. 110 w 2nd St Pending Redevelopment downtown property for main floor commercial and upper floor residential
Amur Financial (Old Wells Fargo Buiding)Pending
Projected 2018
Value*Base TIF Excess Valuation TIF Amount
$301,954,872 $25,805,152 $98,235,690 $155,262,489 $72,061,289
* Amount Developer agreed not to protest in contract with CRA
** TIF Contract Completed Mixed Use (Commercial and Housing)
*** If project payoff is prior to contract end this project should pay off faster than expected Housing
Note projects listed as pending may be in process Commercial/Industrial Development
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18
Tax Increment Financing
Assessment
The Regional Planning Commission of Hall County
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The Regional Planning Commission of Hall County
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Introduction
The Community Redevelopment Authority (CRA) is tasked with taking action in specified areas of the
community to remove, prevent or inhibit physical deterioration (blighted and substandard conditions)
that will result in lower property values and create disincentives to private investment. One of the major
components of this is utilizing Tax Increment Financing (TIF) for developments through blighted and
substandard areas within the community. The purpose of this survey is to better understand how Tax
Increment Financing is used within different communities across the state of Nebraska varying in size.
From that, the findings are intended to be used to help educate the general population in the City of
Grand Island of TIF usage and how it is established in each project.
Background
Tax Increment Financing was established in the early 1950s in the state of California. Originally TIF was
used to generate money for development to secure federal aid for projects. Over the years the usage of
TIF has expanded in such a way that municipalities can encourage development within their respective
communities1. To date 49 of 50 states allows the use of TIF. Each state that allows TIF has developed
legislation based on its needs.
Nebraska voters approved the use of Tax Increment Financing in 1978, with legislation being passed in
1979 by the State Legislature to allow Tax Increment Financing for developments. TIF was introduced to
the City of Grand Island with a major redevelopment of the Yancey Hotel in the mid-1980s. To date the
City of Grand Island has approved 60 TIF projects (Commercial, Residential, Mix-use) with the utilization
of Tax Increment Financing2.
Tax Increment Financing (TIF) in Nebraska
Tax Increment Financing in Nebraska is used to fund the cost of infrastructure associated with new
developments located in designated blighted and substandard areas. Community redevelopment laws
were put in place to allow for the financing of TIF projects to occur from the increased property tax
generated by the improvements of the project. The City of Grand Island has established a Community
Redevelopment Authority (CRA) to oversee redevelopment projects within city limits.
Tax Increment Financing process
The process of TIF is established when an area within city limits is declared blighted and substandard.
Areas throughout a community can be determined blighted if the following criteria are met:
•has a substantial number of deteriorated or deteriorating structures,
•has defective or inadequate street layout,
1 Tax-Increment Financing: The Need for Increased Transparency and Accountability in Local Economic Development Subsidies. Retrieved
December 10, 2018 from https://www.smartgrowthamerica.org/app/legacy/documents/Tax-Increment-Financing.pdf
2 The Use of Tax Increment Financing in Nebraska. Retrieved December 6, 2018 from
https://www.platteinstitute.org/Library/docLib/20130710_my_Platte-TIF.pdf
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•has a faulty lot layout in relation to size, adequacy, accessibility, or usefulness,
•has insanitary or unsafe conditions,
•deterioration of site or other improvements,
•has diversity of ownership,
•has tax or special assessment delinquency exceeding the fair value of the land,
•has defective or unusual conditions of title,
•has improper subdivision or obsolete platting,
•the existence of conditions which endanger life or property by fire and other causes,
•factors that’s substantially impairs or arrests the sound growth of the community, hinders the
provision of housing accommodations, or constitutes an economic or social liability
•is detrimental to the public health, safety, morals, or welfare in its present condition and
•has at least one of the following conditions:
Unemployment in the designated area is at least one hundred twenty percent of
the state or national average;
the average age of the residential or commercial units in the area is at least
forty years;
more than half of the plotted and subdivided property in an area is unimproved
land that has been within the city for forty years and has remained unimproved
during that time;
the per capita income of the area is lower than the average per capita income of
the city or village in which the area is designated; or
the area has had either stable or decreasing population based on the last two
decennial censuses.
A community can be considered substandard if the following criteria are met:
•has a predominance of buildings that are:
dilapidated,
deteriorated,
age or obsolescence, inadequate provision for ventilation, light, air, sanitation,
or open spaces,
•has a high density of population and overcrowding,
•has the existence of conditions which endanger life or property by fire and other causes,
•has a combination of factors, that are conducive to ill health, transmission of disease, infant
mortality, juvenile delinquency, and crime,
•is detrimental to the public health, safety, morals, or welfare” 3.
Once a redevelopment plan is submitted and approved for projects in the designated area, a
redevelopment contract can be approved for eligible expenses. Eligible expenses include the acquisition
of land, site preparation, demolition, public improvements and any planning cost associated with the TIF
application. Communities are allowed to "capture" the property tax on the increased valuation of
property created by approved, eligible redevelopment projects. This "captured" tax increment then is
used to pay off the TIF bond. The base property valuation will then continue to be paid to all taxing
3 Nebraska Revised Statute 18-2103. Retrieved December 6, 2018 from https://nebraskalegislature.gov/laws/statutes.php?statute=18-2103
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entities. TIF projects must not exceed a 15 year period. See Appendix A for an example of how TIF
works.
Requirements for TIF include, but are not limited to:
The project is applicable to real property only;
The property must be within the corporate boundaries of the city (cities of the 2nd class and
villages)4; however, the city may annex noncontiguous land to develop agricultural processing
facilities that will become a TIF project;
The division of tax for TIF may not exceed 15 years;
The taxes attributable to the excess value can only be used for the repayment of the debt
related to the project; and
The city/CRA must provide written notice to both the county assessor and county treasurer to
cease the division of tax when the debt on the project is paid in full5.
Methodology and Selection Criteria
The Hall County and Regional Planning department decided to use the following criteria to review
similarities and differences on Tax Increment Financing among Nebraska communities, as shown below:
•Survey three or more communities
•Cities/ towns located in the state of Nebraska
•Total population above 10,000
Five communities, shown in Figure 1, were selected to be surveyed:
Scottsbluff, Nebraska
Hastings, Nebraska
Kearney, Nebraska
Norfolk, Nebraska
Lincoln, Nebraska
4 Nebraska Revised Statute 17-405.01. Retrieved January 3, 2018 from https://nebraskalegislature.gov/laws/statutes.php?statute=17-405.01
5 Report to the Legislature Nebraska Department of Revenue Property Assessment Division Retrieved December 10, 2018 from
http://www.revenue.nebraska.gov/PAD/research/TIF_Reports/TIF_REPORT_2016.pdf
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Community Questionnaire
Once the selection process was completed each community was contacted via telephone to take part in
the community questionnaire. Survey questionnaires were distributed via email to each community’s
representative with two weeks to complete. See appendix B for full responses provided by each
community.
Tax Increment Financing Survey
1.How long are the TIF bonds being written for?
Four of five communities (Scottsbluff, Hastings, Norfolk, and Lincoln) indicated that TIF bonds were
written for 15 years. The City of Norfolk explained, phased projects may extend the length of the
bonds. Kearney noted that bonds are not issued for TIF projects.
2.Which types of projects within the community utilize Tax Increment Financing (TIF) the most?
Two of five cities (Hastings, Norfolk) explained that residential projects utilize Tax Increment
Financing the most within their community. The Cities of Kearney and Lincoln indicated that
commercial development projects are the top user of TIF in their respective community.
3.What types of documentation is needed by developers to acquire Tax Increment Financing (TIF)
funds?
Scottsbluff
We have an application form they need to complete, a blight study has to be performed, a
cost benefit analysis, redevelopment plan, applicant must show the financial ability to
complete the project.
Hastings
An application is required and must include;
A detailed project description, A development financing plan, including the sources of funds
and loan terms. A preliminary commitment for financing. A statement and demonstration that
the project would not proceed without CRA assistance. A proforma statement indicating the
projected costs and revenues. A detailed pro-forma identifying pre-TIF rate of return and gap
in project financing. Submit detailed pro-forma identifying project-plus-TIF rate of return and
financial structure. Preliminary plans for the project. A list of public improvements to be
constructed in conjunction with the project. Evidence that the project meets the evaluation
criteria. A project development schedule.
Kearney
Site Development Plan, Project Budget with TIF eligible costs, Cost-Benefit Analysis from the
County Assessor.
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Norfolk
The standard documentation of redevelopment plan and agreement that states “but-for” TIF
the project wouldn’t be feasible. Cost-benefit analysis. Return on investment calculations both
with and without TIF.
Lincoln
When first approaching the City, generally a project description, site plan and pro-forma.
Schematics and renderings are included in the Redevelopment Agreement and must be strictly
adhered to. Changes must be approved in advance. After a Redevelopment Agreement is
approved by City Council, proof of financial ability must be provided and approved by the
City’s Finance Director. This is often in the form of a letter from the financial institution
funding the project.
4.Are developers required to show documents of various BIDs on the project?
Three of the cities (Kearney, Norfolk, Lincoln) surveyed indicated that developers are not required to
show documents pertaining to bids placed on projects utilizing TIF. It is important to note that
within the City of Lincoln, if the TIF project includes public improvements, developers are required
to show bids along with work alongside the City’s Purchasing Office following city’s guidelines. The
City of Scottsbluff noted that upon request developers are asked to show bids within the scope of
the project.
5.Does your municipality have a limit on the amount of TIF projects being issued per year? If yes,
what is the limit on the amount of TIF projects being issued per year?
All cities indicated that there is no limit to the amount of TIF projects being issued per year.
6.Does your municipality have a competitive application process or is the application process based
on the order applicants submits’ their application? Please add additional information if possible.
Scottsbluff
The applications would be reviewed in the order they are received but there aren’t that many
that “competition” is created usually. The applications are considered based on the location of
the project and whether it is within a blighted and substandard area, the economic feasibility
of the project and whether or not the project meets the main principals set form by the City’s
comprehensive plan.
Hastings
There is no competitive application process on TIF projects unless the property is owned or
controlled by the CRA/City. If the CRA owns/controls the property it will advertise for RFP’s to
purchase and rehabilitate the property.
Kearney
Application process is not competitive.
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Norfolk
The process begins when the applicant submits a complete and approvable redevelopment
plan.
Lincoln
No, we do not have an application process. Developers approach the Urban Development
Department (we are the City’s designated Redevelopment Authority).
7.Does your municipality have an amount of funds per year allocated as a cap by the governing
body to be used per year for TIF projects? If yes, what is the amount of funds per year allocated as
a cap by the governing body?
All cities indicated that there is no set amount of funds allocated of TIF projects being used per year.
8.Does your municipality have a cap on the amount of TIF funds used per project? If yes, what is the
amount of TIF funds per project?
All cities indicated that there is no cap on the amount of TIF funds used per project. However
Scottsbluff explained that there is a minimum of $50,000 in TIF eligible costs required for projects to
be considered by the Council
9.Does your municipality have a processing and/or administrative fee? If yes, please provide the
fee/ cost amounts.
Scottsbluff
The fee structure for TIF projects are as follows:
1.An initial application fee of $250.00 – due upon submission of the TIF application
2.Upon conceptual approval of TIF application by the CRA, a processing fee based on the
schedule below shall be remitted if the applicant wishes a Plan to be created and
considered by the Planning Commission, CRA, and City Council. The processing fee is
intended to cover the City’s costs and expenses in creating and/or reviewing the Plan
and running the Plan through the appropriate approval process.
The processing fee shall be paid prior to the City’s preparation and/or review of the
Plan. If the processing fee has not been paid for a period of six (6) months after
notification of conceptual approval, the application shall be deemed abandoned and
the application fee forfeited. The processing fee schedule is as follows:
If the estimated TIF proceeds available for the Project are $50,000.00 to
$75,000.00, the processing fee shall be equal to 5% of the estimated TIF
proceeds, and the processing fee will also cover the administrative fee.
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If the estimated TIF proceeds available for the Project are $75,000.01 to
$100,000.00, the processing fee shall be equal to 8% of the estimated TIF
proceeds, and the processing fee will also cover the administrative fee.
If the estimated TIF proceeds available for the Project are over $100,000.00,
the processing fee shall be the greater of (a) $5,000.00 or (b) 1% of the
estimated TIF proceeds. This processing fee will be in addition to the
administrative fee set forth below.
Upon approval of the Redevelopment Plan and Redevelopment Agreement, the person
or organization receiving the TIF Proceeds estimated to be over $100,000.00 shall pay an
administrative fee of $5,000. The administrative fee is intended to cover the City’s costs and
expenses of administering the TIF bond during its life.
Below are examples of the Fees due to the City for particular projects:
Estimated TIF
Proceeds
Application Fee Processing Fee Administrative
Fee
Total
$50,000.00 $250.00 $2,500.00 (5%) Included in
Processing Fee
$2,750.00
$75,000.00 $250.00 $3,750.00 (5%) Included in
Processing Fee
$4,000.00
$80,000.00 $250.00 $6,400.00 (8%) Included in
Processing Fee
$6,650.00
Estimated TIF
Proceeds
Application Fee Processing Fee Administrative
Fee
Total
$100,000.00 $250.00 $8,000.00 (8%) Included in
Processing Fee
$8,250.00
$110,000.00 $250.00 $5,000.00 (minimum) $5,000.00 $10,250.00
$350,000.00 $250.00 $5,000.00 (minimum) $5,000.00 $10,250.00
$500,000.00 $250.00 $5,000.00 (1%) $5,000.00 $10,250.00
$600,000.00 $250.00 $6,000.00 (1%) $5,000.00 $11,250.00
$1,000,000.00 $250.00 $10,000.00 (1%) $5,000.00 $15,250.00
Hastings
The Hastings CRA recently added a non-refundable $300 fee for TIF applications and if the
project is approved an administrative fee of $1,500 is charged. This is payable to the CRA.
These costs are TIF eligible expenditures. In addition the City of Hastings charges a $450
administrative fee for modification of the Area Redevelopment Plan.
Kearney
No
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Norfolk
No, except to be reimbursed for the cost of noticing and from the TIF dollars, reimbursement
for our TIF attorney. The cost of blight and substandard studies are also charged to the
Redeveloper if done specifically for their project.
Lincoln
Yes. Our fee is 1.5% of the first $2 million of TIF then 1.5% in excess of $2 million. Fees go into
the general fund. We have a biennial City budget. At the end of the budget period, anything
over $200,000 goes into a fund for affordable housing. This is relatively new and we just
finished the first biennial budget where this has been in place. It generated about $175,000
for affordable housing.
10.Does your municipality’s Community Redevelopment Authority try to attract specific
redevelopment projects through advertisement within the community? If yes, what types of
projects are being requested?
Three of the cities (Scottsbluff, Kearney, Norfolk,) surveyed stated that the Community
Redevelopment Authority does not solicit specific redevelopment projects through advertisement
within the community. The City of Hastings indicated that its CRA advertises requests proposals for
redevelopment on the properties that it owns or controls and the project type depends upon the
type of property. The City of Lincoln showed does not usually advertise for redevelopment projects,
but issues a Request for Redevelopment Proposals (IFRP). IFRP are open-ended and requests that
developers bring in projects/ redevelopment plans to consider. Projects are usually not specific in
type but occasionally an RFP will be issued for a specific type of project.
Review Findings
The community review compares Tax Increment Financing in Grand Island, Nebraska with other
communities around the state based on TIF laws. This section is to assess the usage of TIF among
each community surveyed in comparison to how the City of Grand Island uses Tax Increment
Financing.
There were similarities found from each city surveyed as to how TIF is being used in the City of
Grand Island. Grand Island just like the majority of communities surveyed writes TIF bonds for the
full 15 years legally allowed by states statue. Other similarities includes no requirements for bid
documents, no limit on the amount of TIF projects per year, no limit on the amount of TIF projects,
no cap amount of funds allocated for TIF projects by the governing body, no cap on the amount of
TIF funds used per project, and lastly the CRA does not attempt to attract redevelopment projects
through advertisement.
It was also found, that though communities documentation varies in the needed information to
apply for TIF; overall communities require proof of adequate funding for the project, a cost-benefit
analysis, and a redevelopment plan. All consistent with what the City of Grand Island asks of
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developers. The application process was also similar among most communities as they are
processed in the order they are received. The City of Lincoln does not have an application process,
developers inquire about possible developments to the City’s designated Redevelopment Authority
(Urban Development Department). It is important to note that the CRA in Hastings allows for a
competitive application process on TIF projects only when the property is owned or controlled by
the CRA/City.
It is also important to acknowledge that while Grand Island does charge a process/ administrative
fee; likewise all communities surveyed except for the City of Kearney and Norfolk has a fee.
However, the City of Norfolk does not charge a processing/ administrative fee but requires the
developers to reimburse the City for the cost of notifying taxing entities and from the TIF dollars,
reimbursement for utilizing the City’s TIF attorney.
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Appendix A: Quick and Brief Description of TIF
Tax Increment Financing (TIF)
Quick and Brief Description of TIF
Redevelopment site is worth $100,000 before redevelopment and has taxes annually of $2000.
Developer makes $1,000,000 investment in property. Property is now worth $1,100,000. Annual
taxes are $22,000.
City (CRA) captures increment of $20,000 ($22,000 minus $2,000) to be used for eligible activities for
a period of up to 15 years $300,000 maximum.
CRA can issue TIF Bonds (bonds can be, but do not have to be guaranteed by the full faith and credit
of the municipality) to generate the money at the front end of the project or CRA can borrow money
secured by the TIF revenues or Developer can borrow money secured by the TIF revenues.
Without the investment and creation of the additional value there is no increment to generate
revenue. Improvements to a building such as a new roof or windows or paint are unlikely to
generate a substantial increment in valuation.
But For………
TIF is subject to the “But For” clause. That is “But For” TIF this project would not happen. The “But
For” clause does not mean that companies like Wal-Mart, Target, McDonalds or any other large
company with strong financial backing are not eligible for TIF. “But For” is a measure of financial
backing that encourages more and better investment in areas that might have trouble attracting
that investment. It is not simply a measure of the financial backing of a project.
“But For” this financing:
a company might choose to build in another part of town or another town;
or might choose to build a smaller or less expensive facility;
or might choose not to build at this time;
or might choose not to build at all.
If TIF were used only when financing was the single limiting factor (“But For having financing”) it
would be available just to those projects that have a high chance of financial failure.
What can you pay for with Tax Increment Financing?
TIF can be used to pay for a variety of public improvements including:
Streets, Sewer, Water, Drainage (storm sewer), utility upgrades, trails, parks, landscaping, public
parking.
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TIF can be used to pay for a variety of private improvements including:
Property acquisition, demolition, renovation, site preparation, studies, plans, engineering, and
architecture
Activities with costs that can be incurred prior to approval include:
Preparation of materials and applications; preparation of cost-benefit analysis; preparation of
redevelopment contract; preparation of bond/financing instruments; land acquisition and related
diligence; and site demolition and preparation.
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Appendix B: Community Survey
Tax Increment Financing Survey
City of Scottsbluff, NE
1.How long are the TIF bonds being written for?
Up to 15 years
2.Which types of projects within the community utilize Tax Increment Financing (TIF) the most?
Public improvements, land acquisition costs, site preparation, utility extensions, rehabilitation,
renovation, public parking
3.What types of documentation is needed by developers to acquire Tax Increment Financing (TIF)
funds?
We have an application form they need to complete, a blight study has to be performed, a cost
benefit analysis, redevelopment plan, applicant must show the financial ability to complete the
project
4.Are developers required to show documents of various BIDs on the project?
Upon request
5.Does your municipality have a limit on the amount of TIF projects being issued per year? If yes,
what is the limit on the amount of TIF projects being issued per year?
No limit, projects and applications reviewed on a case by case basis as they are received
6.Does your municipality have a competitive application process or is the application process
based on the order applicants submits’ their application? Please add additional information if
possible.
The applications would be reviewed in the order they are received but there aren’t that many that
“competition” is created usually. The applications are considered based on the location of the
project and whether it is within a blighted and substandard area, the economic feasibility of the
project and whether or not the project meets the main principals set form by the City’s
comprehensive plan.
7.Does your municipality have an amount of funds per year allocated as a cap by the governing
body to be used per year for TIF projects? If yes, what is the amount of funds per year allocated as a
cap by the governing body?
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No set allocation of funds
8.Does your municipality have a cap on the amount of TIF funds used per project? If yes, what is
the amount of TIF funds per project?
No cap but there is a minimum of $50,000 in TIF eligible costs required for the project to be
considered by the Council
9.Does your municipality have a processing and/or administrative fee? If yes, please provide the
fee/ cost amounts.
See attached schedule included in TIF Application (Appendix C)
10.Does your municipality’s Community Redevelopment Authority try to attract specific
redevelopment projects through advertisement within the community? If yes, what types of
projects are being requested?
To date CRA has not done any advertising
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Tax Increment Financing Survey
City of Hastings CRA
1.How long are the TIF bonds being written for?
Typically, the bonds are written for 15 years and some are paid off early.
2.Which types of projects within the community utilize Tax Increment Financing (TIF) the most?
Housing – 35%
Commercial/Retail/Office – 30%
Industry – 14%
Downtown Mixed Use – 14%
Lodging – 7%
3.What types of documentation is needed by developers to acquire Tax Increment Financing (TIF)
funds? –
An application is required and must include;
A detailed project description, A development financing plan, including the sources of funds
and loan terms. A preliminary commitment for financing. A statement and demonstration
that the project would not proceed without CRA assistance. A proforma statement
indicating the projected costs and revenues. A detailed pro-forma identifying pre-TIF rate of
return and gap in project financing. Submit detailed pro-forma identifying project-plus-TIF
rate of return and financial structure. Preliminary plans for the project. A list of public
improvements to be constructed in conjunction with the project. Evidence that the project
meets the evaluation criteria. A project development schedule.
4.Are developers required to show documents of various BIDs on the project?
Developers may be required to show bids on the project depending upon the improvements.
Developers are required to provide copies of paid bills for TIF eligible costs.
5.Does your municipality have a limit on the amount of TIF projects being issued per year? If yes,
what is the limit on the amount of TIF projects being issued per year?
Currently there is no limit on the number of TIF projects issued per year.
6.Does your municipality have a competitive application process or is the application process
based on the order applicants submits’ their application? Please add additional information if
possible.
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There is no competitive application process on TIF projects unless the property is owned or
controlled by the CRA/City. If the CRA owns/controls the property it will advertise for RFP’s to
purchase and rehabilitate the property. The RFP includes a statement of purpose and the
proposal must include the following;
DEVELOPER – Indicate the name and phone number of the proposed owner of the project.
Provide the names of any others that will be involved in ownership of the project.
OVERVIEW OF THE PROPOSAL – Present a statement that provides a clear identification of the
proposal and indicates a clear understanding of the desired results. If the proposal deviates
from the desired goals and objectives presented in the Statement of Purpose section, explain
the reasons for the deviation.
PRICE – Price to be paid for the real estate.
PREVIOUS EXPERIENCE / QUALIFICATIONS – Present a listing of other previously completed
projects. Provide the name and location of each project and provide any details that you feel
would assist the Authority in their decision.
PROJECT AND FINANCIAL REFERENCES – Provide the names, addresses, phone numbers and
positions of your bank reference. Include any project references for other projects completed.
DETAILED PLAN OF ACTION – Provide a detailed overview of how the proposal will be
implemented. Include a step by step plan for all the elements of the project. Include a time
schedule for completion of each element and a cost estimate for each element. Provide a site
plan and floor plan for all proposed construction.
FINANCING OF PROJECT – Describe how the proposal will be financed. Identify the sources of
funds and the amounts from each source. Provide evidence of funding commitment, if
available.
IMPACT OF PROPOSAL – Describe the probable economic impact of the proposal, including;
the number of construction and permanent jobs to be created; tax revenue to be created by
the project; local firms to be utilized in the project; and any regional economic impact of the
proposal.
MANAGEMENT PLAN – Present a detailed management plan for the implementation and
operation of the finished project. Describe how the project will be promoted and marketed.
Identify the individuals and or firms responsible for each element of the plan.
The Community Redevelopment Authority reserves the right to reject any or all proposals
received or to negotiate in any manner necessary to accomplish the goals of the Authority.
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7.Does your municipality have an amount of funds per year allocated as a cap by the governing
body to be used per year for TIF projects? If yes, what is the amount of funds per year allocated
as a cap by the governing body?
Currently there is no cap on TIF projects.
8.Does your municipality have a cap on the amount of TIF funds used per project? If yes, what is
the amount of TIF funds per project?
Currently there is no cap on the amount of TIF funds used per project.
9.Does your municipality have a processing and/or administrative fee? If yes, please provide the
fee/ cost amounts.
The Hastings CRA recently added a non-refundable $300 fee for TIF applications and if the
project is approved an administrative fee of $1,500 is charged. This is payable to the CRA.
These costs are TIF eligible expenditures. In addition the City of Hastings charges a $450
administrative fee for modification of the Area Redevelopment Plan.
10.Does your municipality’s Community Redevelopment Authority try to attract specific
redevelopment projects through advertisement within the community? If yes, what types of
projects are being requested?
Currently the Hastings CRA advertises for proposals for redevelopment on the properties that
it owns or controls. The project type depends upon the type of property. The CRA owns vacant
lots usually residential in nature and commercial or mixed use properties.
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Tax Increment Financing Survey
City of Kearney, NE
1.How long are the TIF bonds being written for?
The City of Kearney does not issues bonds for TIF projects!
2.Which types of projects within the community utilize Tax Increment Financing (TIF) the most?
Small to midsized commercial projects
3.What types of documentation is needed by developers to acquire Tax Increment Financing (TIF)
funds?
Site Development Plan
Project Budget with TIF eligible costs
Cost Benefit Analysis from the County Assessor
4.Are developers required to show documents of various BIDs on the project?
BID’s are not traditionally part of TIF projects within the City of Kearney.
5.Does your municipality have a limit on the amount of TIF projects being issued per year? If yes,
what is the limit on the amount of TIF projects being issued per year?
No
6.Does your municipality have a competitive application process or is the application process
based on the order applicants submits’ their application? Please add additional information if
possible.
Application process is not competitive.
7.Does your municipality have an amount of funds per year allocated as a cap by the governing
body to be used per year for TIF projects? If yes, what is the amount of funds per year allocated as a
cap by the governing body?
No
8.Does your municipality have a cap on the amount of TIF funds used per project? If yes, what is
the amount of TIF funds per project?
No
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9.Does your municipality have a processing and/or administrative fee? If yes, please provide the
fee/ cost amounts.
No
10.Does your municipality’s Community Redevelopment Authority try to attract specific
redevelopment projects through advertisement within the community? If yes, what types of
projects are being requested?
No
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Tax Increment Financing Survey
City of Norfolk, NE
1.How long are the TIF bonds being written for?
Generally they are written for the full 15 years, but if the project is phased then the bonds for the
project as a whole may go beyond 15 years.
2.Which types of projects within the community utilize Tax Increment Financing (TIF) the most?
In the last year or so, a majority of the TIF projects have been residential.
3. What types of documentation is needed by developers to acquire Tax Increment Financing (TIF)
funds?
The standard documentation of redevelopment plan and agreement that states “but-for” TIF the
project wouldn’t be feasible. Cost benefit analysis. Return on investment calculations both with
and without TIF.
4. Are developers required to show documents of various BIDs on the project?
No.
5. Does your municipality have a limit on the amount of TIF projects being issued per year? If yes,
what is the limit on the amount of TIF projects being issued per year?
No.
6. Does your municipality have a competitive application process or is the application process based
on the order applicants submits’ their application? Please add additional information if possible.
The process begins when the applicant submits a complete and approvable redevelopment plan.
7. Does your municipality have an amount of funds per year allocated as a cap by the governing
body to be used per year for TIF projects? If yes, what is the amount of funds per year allocated as a
cap by the governing body?
No.
8. Does your municipality have a cap on the amount of TIF funds used per project? If yes, what is the
amount of TIF funds per project?
No.
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9. Does your municipality have a processing and/or administrative fee? If yes, please provide the
fee/ cost amounts.
No, except to be reimbursed for the cost of noticing and from the TIF dollars, reimbursement for
our TIF attorney. The cost of blight and substandard studies are also charged to the Redeveloper if
done specifically for their project.
10. Does your municipality’s Community Redevelopment Authority try to attract specific
redevelopment projects through advertisement within the community? If yes, what types of
projects are being requested?
No.
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Tax Increment Financing Survey
City of Lincoln, Nebraska
Prepared by Wynn Hjermstad, AICP
Community Development Manager
Urban Development Department
402-441-8211; whjermstad@lincoln.ne.gov
1.How long are the TIF bonds being written for?
15 years
2.Which types of projects within the community utilize Tax Increment Financing (TIF) the most?
Commercial, multi-family, mixed use. Some typical projects recently completed or underway now
include:
HUDL corporate headquarters, Haymarket District: private investment $30,000,000, TIF
$6,000,000 (complete).
Residential, Haymarket District: 18 market rate residential condos. Private investment
$7,232,126; TIF $1,179,671 (under construction).
Lied Place, downtown: 40 units luxury condos: private investment $25,000,000; TIF $5,000,000
(Plan amendment to City Council this month, Redevelopment Agreement currently being
negotiated).
Viet Hao ethnic grocery store and office, Antelope Valley area near downtown: private
investment $1,716,000; TIF $128,200 (construction starting this month).
Volleyball/Basketball sports facility, West O Street: 95,000 square feet; private investment
$10,000,000; TIF $1,300,000 (Redevelopment agreement being negotiated).
Mixed use office/residential, Havelock area: 5,000 square foot office, 4 market rate
apartments. Private investment $1,090,000; TIF $110,000 (complete).
Telegraph District Phase 2, Antelope Valley area near downtown: rehab and new
construction, office, restaurants, @225 market rate apartments. Private investment
$62,000,000, TIF $8,907,652 (under construction).
Nebraska Innovation Campus Phase 2: 80,000 square foot office building. Private investment
$15,300,000; TIF $3,116,291 (complete).
3.What types of documentation is needed by developers to acquire Tax Increment Financing (TIF)
funds?
When first approaching the City, generally a project description, site plan and pro-forma.
Schematics and renderings are included in the Redevelopment Agreement and must be strictly
adhered to. Changes must be approved in advance. After a Redevelopment Agreement is
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approved by City Council, proof of financial ability must be provided and approved by the City’s
Finance Director. This is often in the form of a letter from the financial institution funding the
project.
4.Are developers required to show documents of various BIDs on the project?
For private improvements, no, for public improvements, yes. Our preference is that they go
through the City’s Purchasing Office but if they choose to bid themselves, they must follow the
City’s process. We have prepared a Guide for developer’s use that I will attach.
5.Does your municipality have a limit on the amount of TIF projects being issued per year? If yes,
what is the limit on the amount of TIF projects being issued per year?
No. Our guide is the percent of the City that can be declared blighted and substandard which, by
state statute, is 35%. Lincoln is at about 12%.
6.Does your municipality have a competitive application process or is the application process
based on the order applicants submits’ their application? Please add additional information if
possible.
No, we do not have an application process. Developers approach the Urban Development
Department (we are the City’s designated Redevelopment Authority). Staff does a preliminary
review, will review with other relevant City Departments (usually Planning and Public Works, may
also include Building & Safety, Health, Parks & Rec depending on the project), then it is taken to
the Mayor for approval to go forward. We then usually set up weekly meetings with the
developer team and City staff to negotiate the Redevelopment Agreement. Everything is
approved by the Mayor. We have weekly Redevelopment Project meetings with the Mayor to go
over projects.
7.Does your municipality have an amount of funds per year allocated as a cap by the governing
body to be used per year for TIF projects? If yes, what is the amount of funds per year allocated
as a cap by the governing body?
No.
8.Does your municipality have a cap on the amount of TIF funds used per project? If yes, what is
the amount of TIF funds per project?
No.
9.Does your municipality have a processing and/or administrative fee? If yes, please provide the
fee/ cost amounts.
Yes. Our fee is 1.5% of the first $2 million of TIF then 1.5% in excess of $2 million. Fees go into the
general fund. We have a biennial City budget. At the end of the budget period, anything over
$200,000 goes into a fund for affordable housing. This is relatively new and we just finished the
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first biennial budget where this has been in place. It generated about $175,000 for affordable
housing.
10.Does your municipality’s Community Redevelopment Authority try to attract specific
redevelopment projects through advertisement within the community? If yes, what types of
projects are being requested?
Not usually. We generally issue a Request for Redevelopment Proposals (IFRP) and it is usually
open-ended. Basically an IFRP says bring us projects to consider but does not usually get specific
as to the type of project. Occasionally we will issue and RFP for a specific type of project.
A final comment about TIF usage in Lincoln: we have done some affordable housing projects,
mostly housing for first time homebuyers. We have done a few in partnership with Low Income
Housing Tax Credit projects. The lack of affordable quality housing is becoming a significant issue
in Lincoln, particularly for low income rental. We are currently exploring the issue of affordable
housing in general in Lincoln and use of TIF for that purpose.
Attached is a Guide for the bidding process (discussed in question 4, above). Here is a link to a
general policy statement about use of TIF that is on our website:
https://lincoln.ne.gov/city/urban/redev/pdf/tifpolicy.pdf
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Appendix C: City of Scottsbluff Tax Increment Financing (TIF) Guidelines and
Application
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