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10-14-2008 Community Redevelopment Authority Regular Meeting Packet Community Redevelopment Authority (CRA) Tuesday, October 14, 2008 Regular Meeting Packet Board Members: Lee Elliott Tom Gdowski Barry Sandstrom Sue Pirnie Glen Murray 4:00 PM Grand Island City Hall 100 E 1st Street Grand Island Regular Meeting - 10/14/2008 Page 1 / 35 Call to Order 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. DIRECTOR COMMUNICATION This is an opportunity for the Director to comment on current events, activities, and issues of interest to the commission. Grand Island Regular Meeting - 10/14/2008 Page 2 / 35 Community Redevelopment Authority (CRA) Tuesday, October 14, 2008 Regular Meeting Item A1 Agenda Staff Contact: Chad Nabity Grand Island Regular Meeting - 10/14/2008 Page 3 / 35 AGENDA Tuesday, October 14, 2008 4:00 p.m. Grand Island City Hall Open Meetings Notifications 1.Call to Order Lee Elliot This is a public meeting subject to the open meetings laws of the State of Nebraska. The requirements for an open meeting are posted on the wall in this room and anyone that wants to find out what those are is welcome to read through them. 2.Approval of Minutes of September 22, Meeting. 3.Approval of Financial Reports 4.Approval of Bills 5.Consideration of request for façade improvement funds for Abby’s Carpets and More located at 208 W 3rd Street. 6.Consideration of grant request from Blessed Sacrament Church for signage and landscaping improvements located at 518 W State Street. 7.Review of Committed Projects and CRA Properties 8.Discussion of Possible Purchase/Sale of Properties in CRA Designated Areas a.Review of proposal to purchase the Star Motel Property at 2709 S. Locust Street. Proposal to purchase is part of the application for TIF for the next item on the agenda. 9.Consideration of a Resolution to forward a redevelopment plan amendment to the Hall County Regional Planning Commission for CRA Area #2 the former location of the Wonderful Garden Restaurant and the Star Motel on South Locust. 10.Consideration of a Resolution of intent to enter into a redevelopment contract. 11.Directors Report 12.Adjournment Next Meeting November 12, 2008 The CRA may go into closed session for any agenda item as allowed by state law. Grand Island Regular Meeting - 10/14/2008 Page 4 / 35 Community Redevelopment Authority (CRA) Tuesday, October 14, 2008 Regular Meeting Item B1 Meeting Minutes Staff Contact: Chad Nabity Grand Island Regular Meeting - 10/14/2008 Page 5 / 35 OFFICIAL PROCEEDINGS MINUTES OF COMMUNITY REDEVELOPMENT AUTHORITY MEETING OF October 14, 2008 Pursuant to due call and notice thereof, a Regular Meeting of the Community Redevelopment Authority of the City of Grand Island, Nebraska was conducted on October 14, 2008 at City Hall 100 E First Street. Notice of the meeting was given in the October 7, 2008 Grand Island Independent. 1.CALL TO ORDER Vice Chair Lee Elliot called the meeting to order at 4:00 p.m. The following members were present: Lee Elliot, Tom Gdowski, Sue Pirnie, and Glen Murray. Also present were; Director, Chad Nabity; Secretary Rose Woods; CRA Attorney; Duane Burns, Finance Director, Dave Springer, Council Liaison Peg Gilbert, Dee Johnson, Marv Webb, Rev. Philipsen, Marv Wemhoff, Gene McCloud, and Ray O’Conner. Elliot stated this was a public meeting subject to the open meeting laws of the State of Nebraska. He noted that the requirements for an open meeting were posted on the wall easily accessible to anyone who would like to read through them. 2.APPROVAL OF MINUTES. A motion for approval of the Minutes for the September 22, meeting, Pirnie made the motion seconded by Murray. Upon roll call vote, all present voted aye. Motion carried unanimously. 3.APPROVAL OF FINANCIAL REPORTS. APPROVAL OF FINANCIAL REPORTS. Dave Springer reviewed the financial reports for the period of September 1, 2008 through September 30, 2008. He noted revenue in the amount of $130,458 and expenses in the amount of $47,669 for the month. This included payment of the Goodwill Façade that was approved two months ago. Total cash was $1,236,622. Motion by Murray, second by Gdowski, to approve the financial reports. Upon roll call vote, all present voted aye. Motion carried unanimously. Grand Island Regular Meeting - 10/14/2008 Page 6 / 35 4.APPROVAL OF BILLS. The bills were reviewed by the Authority. Motion made by Gdowski, second by Pirnie, to approve the bills in the amount of $5783.00. Upon roll call vote all present voted aye. Motion carried unanimously to approve the payment of bills totaling $5783.00. 5. CONSIDERATION OF FAÇADE IMPROVEMENT ABBEY CARPETS ‘N’ MORE. Dee Johnson submitted a request for assistance with the remainder of the Façade improvements for the Abbey Carpets ‘N’ More building. There was a Façade committee meeting that was held on October 6th, 2008, Elliot and Pirnie were on the committee and both agreed the request submitted by Johnson follows along with criteria the CRA has set forth to help improve the Façade of the building. The Johnson’s have already spent $29,788.70 on improvements to the building and are asking the CRA for the $9400.00 to help cover the cost for the Architect as well as costs for new canopies for the windows and new signage for the front and the back of the building. Motion was made by Gdowski and second by Murray to approve the request of Façade funds to Johnson in the amount of $9400.00. Upon roll call vote all present voted aye. Motion carried unanimously to approve the Façade improvement request for Abbey Carpets ‘N’ More. 6. CONSIDERATION OF GRANT REQUEST FROM BLESSED SACRAMENT CHURCH. Rev. Todd Philipsen submitted a request for funds to replace some sidewalk, new signage for the church as well as parking lot marking. Philipsen explained the church has completed other projects in the amount of $2,832,403.13; these projects have been completed and paid for by the people of the Blessed Sacrament Parish. He noted his church currently is one of the largest Parishes in Grand Island with over 1400 families active within the church. The funds requested in the amount of $33, 401.06 would help repair sidewalks out in front of the church, also to replace the outdated signs with ones with more appeal to the area. He is currently concerned about the safety issue and the cosmetic issue. Nabity explained this area is now in the blighted area and is similar to a Façade project CRA grants had been previously given out to non profit organizations such as St. Mary Cathedral for lighting, YWCA and YMCA had been also given funds for similar requests. Motion was made by Murray and second by Pirnie to approve the Grant Grand Island Regular Meeting - 10/14/2008 Page 7 / 35 request in the amount of $33,401.06. Upon roll call vote all present voted aye. Motion carried unanimously to approve the grant request of $33, 401.06. 7.REVIEW OF COMMITTED PROJECTS AND CRA PROPERTIES. Nabity reported briefly. Total committed projects total $540,450. Discussion was held on the status of projects. Housing Study is moving forward should have a draft in December. Hall County should be sending a bill soon. Romsa Real Estate Center is still waiting to hear back about permits. BID 6 their final totals were $55,000 this included $51,500 for conduit and $3,500 for the NE Arboretum for the 2nd Street Landscape Plan. Paul Warshauer (Masonic Temple) has turned nothing in at this time however is still moving forward with the process. New Life Community Church Façade is coming along nicely; they may come back with a change to one wall and requesting release of a portion of the allocated funds. The 2008 Wayside horns are moving forward, as is the engineering for the 2009 Wayside horns, there is discussion about the wayside horn for Broadwell; with the possibility of having an underpass at this location in the near future. 8. DISCUSSION OF POSSIBLE PURCHASE/SALE OF PROPERTIES IN CRA DESIGNATED AREA. Nabity explained there has been an interest in the 408 E 2nd Street property at this time however nothing has been offered. Ray O’Connor has submitted a bid of $50,000 for the CRA property located at 2707 and 2709 South Locust. The selling of the CRA property on South Locust will be contingent upon moving forward with the TIF application process. The TIF contract must be approved by Regional Planning and Council and then all will move forward together, also with the condition of O’Connor installing a Hike and Bike Trail for the area. Motion was made by Gdowski and second by Pirnie to approve the submitted bid of $50,000 continent upon the approval of the TIF application and O’Connor installing a Hike and Bike Trail. Upon roll call vote all present voted aye. Motion carried unanimously to approve the submitted bid for the CRA South Locust property. 9.CONSIDERATION OF A RESOLUTION TO FORWARD REDEVELOPMENT PLAN AMENDMENT TO THE HALL COUNTY REGIONAL PLANNING COMMISSION FOR CRA AREA #2 THE FORMER LOCATION OF WONDERFUL GARDEN RESTRAUNT AND THE STAR MOTEL ON SOULT LOCUST. Grand Island developer Ray O’Connor submitted plans for a Best Western Inn and Suites Grand Island Regular Meeting - 10/14/2008 Page 8 / 35 along South Locust Street. He proposed using the land to build an 80 to 82 room Best Western Inn and Suites in what's called the "Stoneridge" prototype costing approximately $5.3 million dollars. O’Connor told the CRA members he thinks the community needs new motel rooms to compete with the neighbors to the west. O'Connor said Kearney has effectively used tax-increment financing (TIF) to build several new hotel projects there. The result has been an influx in the conference and convention business in Kearney; something in which O'Connor feels Grand Island can recover its former competitiveness. He also requested up to $1.5 million in tax-increment financing to help with the cost of the hotel project the bulk of which would go toward relocating a major sewer line across the proposed hotel property. O'Connor bought the former Wonderful Garden restaurant property at 2623 S. Locust St., but said that ground is not wide enough to accommodate a hotel development. The former Star Motel property at 2707 and 2709 S. Locust was also too narrow due to a 20-foot hike-and-bike trail easement required by the city. But by combining the restaurant and Star Motel properties a lot approximately 247 feet wide by 350 feet deep the desired lot size is achieved for development, O'Connor said. The CRA bought the Star Motel in a dilapidated state in December 2005 for $155,740. It then spent $15,339 to demolish the structure. O'Connor proposed Tuesday to buy it from the CRA for $50,000, but only if he could also obtain TIF for the hotel project. CRA member Tom Gdowski said he had hoped to recoup more of the costs into the Star Motel property, but he felt O'Connor's proposed use; history of successful projects and high integrity in the community were favorable. Grand Island City Councilwoman Peg Gilbert said selling the property for less than the CRA had into it is an easy sell to taxpayers. The new hotel will be a driver for sales tax revenues, she said. Both properties also have a sewer line problem that dates back to 1979. A sewer main was installed across both properties rendering most of the property unbuildable unless the line is moved. The tax-increment financing would help pay for that relocation. The $6,600 a year in existing property taxes would continue to be paid to political subdivisions. O'Connor said the new hotel will be owned by South Pointe Development LLC, which is owned by himself, Bill Francis and Gene McCloud. McCloud owns the Super 8 motel immediately north of the proposed Best Grand Island Regular Meeting - 10/14/2008 Page 9 / 35 Western site. The Midtown Holiday Inn is just north of Super 8, which prompted CRA members to question how occupancy rates would fare with three hotels right in a row. "It can be a good thing," McCloud said. "We feed off of each other." O'Connor said each hotel also has its own market. The Holiday Inn caters toward conventions, while the Super 8 focuses on lower rates. The Best Western would have some extended-stay rooms. "We are not in the food business, the bar businesses or the meeting room business," O'Connor said of Best Western's franchise. Best Western used to have a hotel in Grand Island and contacted O'Connor, who owns the Kearney franchise, to reintroduce Best Western to Grand Island. Best Western officials have been calling weekly, O'Connor said. "I think the hotel will be a nice addition," Gdowski said. CRA member Glen Murray called it "an excellent project," while CRA member Sue Pirnie commented about the attractiveness of the “Stoneridge” design. Nabity stated the hotel project advances to the Regional Planning Commission Nov. 5 to decide if a hotel on the property is appropriate land use. It will come back to the CRA on Nov. 12 for a tax-increment financing plan. That plan, the land sale and the redevelopment proposal will then advance to the Grand Island City Council for final action on Nov. 18. Motion was made by Murray and second by Pirnie to approve Resolution No. 91 to forward the proposed Redevelopment Plan to the Hall County Regional Planning for its recommendation. Upon roll call vote all present voted aye. Motion carried unanimously to approve Resolution 91. 10.CONSIDERATION OF A RESOLUTION OF INTENT TO ENTER INTO A REDEVELOPMENT CONTRACT. No further discussion. Motion was made by Gdowski and second by Murray to approve Resolution No. 92 to provide the Grand Island City Council notice of intent to enter into a redevelopment contract after a passage of thirty days from the adoption of this resolution. Upon roll call vote all present voted aye. Motion carried unanimously to approve Resolution 92. 11.DIRECTOR’S REPORT. Nabity commented there has been interest in the Façade program. Since O’Connor cleaned up the CRA property on South Grand Island Regular Meeting - 10/14/2008 Page 10 / 35 Locust there have been a few calls with no one moving forward with offers. Project Armada is also still at a standstill. 12. ADJOURNMENT. Vice Chairman Elliot adjourned the meeting at 4:55 p.m. The next meeting is scheduled for November 12, 2008. Respectfully submitted Chad Nabity Director Grand Island Regular Meeting - 10/14/2008 Page 11 / 35 Community Redevelopment Authority (CRA) Tuesday, October 14, 2008 Regular Meeting Item C1 Financial Reports Staff Contact: Chad Nabity Grand Island Regular Meeting - 10/14/2008 Page 12 / 35 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF SEPTEMBER 2008 MONTH ENDED 2007 - 2008 2008 REMAINING SEPTEMBER 2008 YEAR TO DATE BUDGET BALANCE CONSOLIDATED Beginning Cash 1,153,832 952,497 952,497 REVENUE: Property Taxes 128,873 748,243 722,796 (25,447) Loan Proceeds - - - - Interest Income 28 41,041 10,000 (31,041) Land Sales - - 50,000 50,000 Other Revenue 1,557 18,636 - (18,636) TOTAL REVENUE 130,458 807,920 782,796 (25,124) TOTAL RESOURCES 1,284,290 1,760,417 1,735,293 (25,124) EXPENSES Auditing & Accounting - 5,000 8,000 3,000 Legal Services 180 2,143 10,000 7,858 Consulting Services - - 10,000 10,000 Contract Services 4,436 34,362 40,000 5,638 Printing & Binding - 568 1,000 432 Other Professional Services - 4,113 6,000 1,887 General Liability Insurance - - 250 250 Postage 15 142 250 108 Matching Grant - - - - Legal Notices 26 828 800 (28) Licenses & Fees - - - - Travel & Training - - 1,500 1,500 Other Expenditures - - 500 500 Office Supplies - 106 500 394 Supplies - - 300 300 Land - 33,090 100,000 66,910 Façade Improvement 36,880 207,871 200,000 (7,871) South Locust - - - - Alleyway Improvement - - - - Other Projects - - 500,000 500,000 Bond Principal 6,132 142,497 128,002 (14,495) Bond Interest - 93,076 94,794 1,718 Interest Expense - - - - - - - TOTAL EXPENSES 47,669 523,795 1,101,896 578,101 INCREASE(DECREASE) IN CASH 82,789 284,125 (319,100) (603,225) ENDING CASH 1,236,622 1,236,622 633,397 (603,225) LESS COMMITMENTS 540,450 - AVAILABLE CASH 696,172 1,236,622 633,397 (603,225) CHECKING 739,979 PETTY CASH 50 INVESTMENTS 496,593 Total Cash 1,236,622 Grand Island Regular Meeting - 10/14/2008 Page 13 / 35 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF SEPTEMBER 2008 MONTH ENDED 2007 - 2008 2008 REMAINING SEPTEMBER 2008 YEAR TO DATE BUDGET BALANCE CRA GENERAL OPERATIONS: Property Taxes 92,662 491,044 500,000 8,956 Interest Income 40,087 10,000 (30,087) Land Sales - 50,000 50,000 Other Revenue & Motor Vehicle Tax 1,557 5,332 - (5,332) TOTAL 94,220 536,463 560,000 23,537 GILI TRUST Property Taxes 66,410 65,780 (630) Interest Income 548 - (548) Other Revenue 560 - (560) TOTAL - 67,518 65,780 (1,738) CHERRY PARK LTD II Property Taxes 62,743 59,180 (3,563) Interest Income 27 251 - (251) Other Revenue - - - TOTAL 27 62,994 59,180 (3,814) GENTLE DENTAL Property Taxes 3,497 4,202 705 Interest Income 0 3 - (3) Other Revenue 947 - (947) TOTAL 0 4,447 4,202 (245) PROCON TIF Property Taxes 18,138 19,162 1,024 Interest Income 53 - (53) Other Revenue 972 - (972) TOTAL - 19,163 19,162 (1) WALNUT HOUSING PROJECT Property Taxes 30,079 93,632 74,472 (19,160) Interest Income 0 100 - (100) Other Revenue 10,825 - (10,825) TOTAL 30,079 104,557 74,472 (30,085) BRUNS PET GROOMING Property Taxes 4,576 9,536 - (9,536) Interest Income - - - Other Revenue - - - TOTAL 4,576 9,536 - (9,536) GIRARD VET CLINIC Property Taxes 1,556 3,242 - (3,242) Interest Income - - - Other Revenue - - - TOTAL 1,556 3,242 - (3,242) TOTAL REVENUE 130,458 807,920 782,796 (25,124) Grand Island Regular Meeting - 10/14/2008 Page 14 / 35 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF SEPTEMBER 2008 MONTH ENDED 2007 - 2008 2008 REMAINING SEPTEMBER 2008 YEAR TO DATE BUDGET BALANCE EXPENSES CRA GENERAL OPERATIONS: Auditing & Accounting 5,000 8,000 3,000 Legal Services 180 2,143 10,000 7,858 Consulting Services - 10,000 10,000 Contract Services 4,436 34,362 40,000 5,638 Printing & Binding 568 1,000 432 Other Professional Services 4,113 6,000 1,887 General Liability Insurance - 250 250 Postage 15 142 250 108 Matching Grant - - - Legal Notices 26 828 800 (28) Licenses & Fees - - - Travel & Training - 1,500 1,500 Other Expenditures - 500 500 Office Supplies 106 500 394 Supplies - 300 300 Land 33,090 100,000 66,910 PROJECTS Façade Improvement 36,880 207,871 200,000 (7,871) South Locust - - - Alleyway Improvement - - - Other Projects - 500,000 500,000 TOTAL CRA EXPENSES 41,537 288,221 879,100 590,879 GILI TRUST Bond Principal 47,158 47,158 0 Bond Interest 18,622 18,622 (0) Other Expenditures - - - TOTAL GILI EXPENSES - 65,780 65,780 - CHERRY PARK LTD II Bond Principal 36,824 36,824 0 Bond Interest 22,356 22,356 (0) TOTAL CHERRY PARK EXPENSES - 59,180 59,180 - GENTLE DENTAL Bond Principal 2,082 2,127 45 Bond Interest 2,120 2,075 (45) TOTAL GENTLE DENTAL - 4,202 4,202 - PROCON TIF Bond Principal 10,601 8,838 (1,763) Bond Interest 8,560 10,324 1,764 TOTAL PROCON TIF - 19,162 19,162 0 WALNUT HOUSING PROJECT Bond Principal 33,055 33,055 0 Bond Interest 41,417 41,417 (0) - - - TOTAL WALNUT HOUSING - 74,472 74,472 0 Grand Island Regular Meeting - 10/14/2008 Page 15 / 35 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF SEPTEMBER 2008 MONTH ENDED 2007 - 2008 2008 REMAINING SEPTEMBER 2008 YEAR TO DATE BUDGET BALANCE BRUNS PET GROOMING Bond Principal 4,576 9,536 - (9,536) Bond Interest - - - TOTAL BRUNS PET GROOMING 4,576 9,536 - (9,536) GIRARD VET CLINIC Bond Principal 1,556 3,242 - (3,242) Bond Interest - - - TOTAL GIRARD VET CLINIC 1,556 3,242 - (3,242) TOTAL EXPENSES 47,669 523,795 1,101,896 578,101 Grand Island Regular Meeting - 10/14/2008 Page 16 / 35 Community Redevelopment Authority (CRA) Tuesday, October 14, 2008 Regular Meeting Item D1 Bills Staff Contact: Chad Nabity Grand Island Regular Meeting - 10/14/2008 Page 17 / 35 14-Oct-08 TO: Community Redevelopment Authority Board Members FROM: Chad Nabity, Planning Department Director RE: Bills Submitted for Payment The following bills have been submitted to the Community Redevelopment Authority Treasurer for preparation of payment. City of Grand Island Administration Fees Sep $1,952.49 Accounting Oct/Nov $375.00 Officenet Inc. Postage $14.40 Lawn Care Nebraska Arboretum BID 6/Justin Evertson $2,858.20 Grand Island Independent $12.91 Monthly & Redevelopment Plan Notices Mayer, Burns, Koenig & Janulewicz Legal Services $570.00 Total: $5,783.00 Grand Island Regular Meeting - 10/14/2008 Page 18 / 35 Community Redevelopment Authority (CRA) Tuesday, October 14, 2008 Regular Meeting Item E1 Commited Projects & Sale of CRA Property Staff Contact: Chad Nabity Grand Island Regular Meeting - 10/14/2008 Page 19 / 35 COMMITTED PROJECTS AMOUNT ESTIMATED DUE DATE Housing Study $8,250 Fall 2008 Hall County $37,500 Fall 2007 Romsa Real Estate Center $75,000 Fall 2007 BID 6 $55,000 Spring 2009 Paul Warshauer (Masonic Temple) $17,700 Fall 2008 New Life Community Church Façade $107,000 Fall 2008 2008 Wayside Horns $140,000 Fall 2008 2009 Wayside Horns $100,000 Fall 2009 Total Committed $540,450 CRA PROPERTIES Address Purchase Price Purchase Date Demo Cost Status 203 E 1st St.$68,627 10-09-02 $23,300 Surplus 217 E 1st St $17,000 03-20-03 $6,500 Surplus 408 E 2nd St $4,869 11-11-05 $7,500 Surplus 2707 and 2709 S. Locust $155,740 12-30-05 $15,339.23 Surplus 211 E 1st $34,702 11-13-07 $8,000 Surplus September 30, 2008 Grand Island Regular Meeting - 10/14/2008 Page 20 / 35 AGREEMENT FOR SALE AND PURCHASE OF REAL ESTATE KNOW ALL MEN BY THESE PRESENTS: The undersigned Seller hereby sells to the undersigned Buyer, the following- described real estate for the price and upon the terms and conditions herein set forth, and the undersigned Buyer hereby accepts said terms and conditions, agrees to pay the purchase price, and to perform the obligations of Buyer hereunder. 1. The Seller is: Community Redevelopment Authority of the City of Grand Island, Nebraska. Its address is City of Grand Island, Planning Director, P.O. Box 1968, Grand Island, Nebraska 68802. Its telephone number is 308-385-5240. 2. The Buyer is: South Pointe Development, LLC. Its address is 2502 N. Webb Road, Ste A., Grand Island, Nebraska. Its telephone number is 308-381-2497. 3. The legal description of the real estate is: Beginning at a point 377.5 Feet North of and 33 Feet East of the Quarter Section corner between Sections Twenty-Seven (27) and Twenty-Eight (28), in Township Eleven (11) North, Range Nine (9), West of the 6th P.M., and running thence North, along a line parallel to and 33 Feet East of the Section line between said sections Twenty-Seven and Twenty-Eight (28), a distance of 147.5 Feet thence Easterly, at right angles, a distance of 354.65 Feet thence Southerly at right angles, a distance of 147.3 Feet; thence Westerly at right angles, a distance of 355.9 Feet to the place of beginning, and being a part of Lot One (1) Mainland in Section Twenty-Seven (27) in Township Eleven (11) North, Range Nine (9) West of the 6th P.M., excepting therefrom, the property described in the Report of Appraisers recorded in Book T, Page 253, of the Miscellaneous Records in the Office of the Register of Deeds, Hall County, Nebraska 4. The purchase price is FIFTY THOUSAND ($50,000.00) DOLLARS. 5. The purchase price shall be paid as follows: A. Earnest money of $500.00 upon execution of this Agreement; and B. The balance of $49,500.00 in certified funds on closing. 6. Buyer shall be entitled to take possession of the premises upon the closing of this transaction and the closing shall be on or before ______________, 2008, which is herein called the closing date. Closing shall take place at the office of Mayer, Burns, Koenig & Janulewicz, Grand Island, Nebraska. Grand Island Regular Meeting - 10/14/2008 Page 21 / 35 2 7. Seller shall procure a title insurance commitment issued by Grand Island Abstract Company, which shall show marketable title to the premises to be vested in the Seller subject only to easements, reservations and restrictive covenants of record. If the title insurance commitment shows title defects, Seller shall have a reasonable time to cure the defects if such can be cured. If said defects cannot be cured within a reasonable time, Buyer may elect to rescind this agreement or waive the defects. The cost of the owner's title insurance policy shall be divided equally between the parties. 8. Real estate taxes for 2007 and all prior year’s taxes are paid. Real estate taxes for 2008 shall be prorated to the date of closing. Real estate taxes for 2009 and all following years shall be paid by Buyer. 9. The documentary tax, if any, shall be paid by the Seller. 10. Upon the closing, Seller shall convey the real estate to Buyer by Special Warranty Deed, free and clear of all liens, tenancies and encumbrances except the following: a.Subject to a Right of Way and Restrictions as shown in Deed recorded in Book 69, Page 627; b.Subject to a Right of Way as shown in Return of Appraisers recorded in Book T, Page 263; c.Public Landscape Easement executed by and between Rosetta F. Parker, a single person, and the City of Grand Island, Nebraska, filed September 5, 2000 in the Register of Deeds Office as Document No. 200007287; d.Public Utilities Easement executed by and between Franklin R. Roy and Rosetta F. Parker, husband and wife, and The City of Grand Island, Nebraska, filed September 5, 2000 in the Register of Deeds Office as Document No. 200007286; e.Public Utilities Easement executed by Eloy Uribe and Oralia Erives, husband and wife, to the City of Grand Island, Nebraska, filed January 16, 2004, in the Register of Deeds Office as Document No. 200400494. and except any other easements, reservations and restrictive covenants of record. 11. Sale of this premises to Buyer is conditioned upon the Buyer granting to the City of Grand an easement for a “hike and bike trail” across the Southerly and Easterly portion of the premises pursuant to plans and specifications prepared by the City of Grand Island Parks and Recreation Department or Public Works Department and completed to Grand Island Regular Meeting - 10/14/2008 Page 22 / 35 3 the satisfaction of the above referenced departments of the City of Grand Island, Nebraska. Completion of the “hike and bike” trail shall be completed by the time Buyer completes the intended improvements to the premises which is tentatively scheduled to be in 2009. 12. The sale and completion of the closing of this transaction is further contingent upon this premises together with the premises at 2603 S. Locust Street, Grand Island, Nebraska, formally known as the Wonderful Garden property being included within a tax increment financing redevelopment project pending before the Community Redevelopment Authority of the City of Grand Island, Nebraska. If the above TIF redevelopment project is not ultimately approved by the City Council of the City of Grand Island, Nebraska, this agreement shall be rescinded and Buyer shall receive back its earnest money payment. 13. This premises consists of unimproved ground. Buyer acknowledges that its agent has inspected the premises and Buyer accepts the sale of the premises "as is" and does not rely upon any representations made by or on behalf of Seller as to the condition of the real estate. Seller disclaims all warranties with respect to the sale of the real estate to Buyer under the terms of this agreement. Buyer waives the necessity of a survey to determine the boundaries of the premises. 14. Buyer acknowledges that it will have to incur the cost of relocating the sanitary sewer main on the premises as well as the cost of connecting to the City water main located on the West side of Locust Street. Buyer further acknowledges that it will be obligated to pay the cost of the “hike and bike” trail improvements on the premises as required by the plans and specifications for improvement of the trail. 15. Seller and Buyer each agree that time is an essential element of this agreement. 16. If either Seller or Buyer breaches this agreement, then that nonbreaching party shall be entitled to all remedies available at law and in equity for the performance of this agreement or for damages. 17. All covenants and conditions herein contained shall extend to and be obligatory upon the parties hereto and their successors and assigns. EXECUTED THIS _____ day of _________________, 2008. Grand Island Regular Meeting - 10/14/2008 Page 23 / 35 4 COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA By____________________________________ Barry Sandstrom, Chair SELLER SOUTH POINTE DEVELOPMENT, LLC By____________________________________ Member By ___________________________________ Member BUYER STATE OF NEBRASKA ) ) ss. COUNTY OF HALL ) The foregoing instrument was acknowledged before me this _____ day of _______________, 2008, by Barry Sandstrom, Chairperson for the Community Redevelopment Authority of Grand Island, Nebraska, on behalf of said Community Redevelopment Authority. ______________________________________ Notary Public STATE OF NEBRASKA ) ) ss. COUNTY OF HALL ) The foregoing instrument was acknowledged before me this ______ day of _____________, 2008, by _________________________, Member and by _________________________, Member of South Pointe Development, LLC. ______________________________________ Notary Public Grand Island Regular Meeting - 10/14/2008 Page 24 / 35 Community Redevelopment Authority (CRA) Tuesday, October 14, 2008 Regular Meeting Item H1 TIF Request - 2709 S Locust Staff Contact: Chad Nabity Grand Island Regular Meeting - 10/14/2008 Page 25 / 35 Grand Island Regular Meeting - 10/14/2008 Page 26 / 35 Grand Island Regular Meeting - 10/14/2008 Page 27 / 35 Grand Island Regular Meeting - 10/14/2008 Page 28 / 35 Grand Island Regular Meeting - 10/14/2008 Page 29 / 35 Grand Island Regular Meeting - 10/14/2008 Page 30 / 35 Grand Island Regular Meeting - 10/14/2008 Page 31 / 35 Grand Island Regular Meeting - 10/14/2008 Page 32 / 35 Grand Island Regular Meeting - 10/14/2008 Page 33 / 35 Grand Island Regular Meeting - 10/14/2008 Page 34 / 35 Grand Island Regular Meeting - 10/14/2008 Page 35 / 35