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03-19-2009 Community Redevelopment Authority Regular Meeting Packet Community Redevelopment Authority (CRA) Thursday, March 19, 2009 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 - 3/19/2009 Page 1 / 22 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 - 3/19/2009 Page 2 / 22 Community Redevelopment Authority (CRA) Thursday, March 19, 2009 Regular Meeting Item A1 Agenda Staff Contact: Chad Nabity Grand Island Regular Meeting - 3/19/2009 Page 3 / 22 AGENDA Thursday March 19, 2009 4:00 p.m. Grand Island City Hall Open Meetings Notifications 1.Call to Order Barry Sandstrom 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 February 20, 2009 Meeting. 3.Approval of Financial Reports 4.Approval of Bills 5.Linda Addison, Housing Development Corporation, Executive Director, presentation about the Housing Development Corporation and request for Blight Study for property north of Fonner Park. Randy Chick, Director of Hastings CRA regarding CRA involvement with HDC and single family housing development. 6.Review of Committed Projects and CRA Properties 7.ADJOURN TO EXECUTIVE SESSION TO DISCUSS NEGOTIATIONS RETURN TO REGULAR SESSION 8.Approve Resolution or Resolutions to Purchase/Sell Property 9.Directors Report 10.Adjournment Next Meeting April 8, 2009 The CRA may go into closed session for any agenda item as allowed by state law. Grand Island Regular Meeting - 3/19/2009 Page 4 / 22 Community Redevelopment Authority (CRA) Thursday, March 19, 2009 Regular Meeting Item B1 Meeting Minutes Staff Contact: Chad Nabity Grand Island Regular Meeting - 3/19/2009 Page 5 / 22 OFFICIAL PROCEEDINGS MINUTES OF COMMUNITY REDEVELOPMENT AUTHORITY MEETING OF March 19, 2009 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 March 20, 2009 at City Hall 100 E First Street. Notice of the meeting was given in the March 12, 2009 Grand Island Independent. 1.CALL TO ORDER Chairman Barry Sandstrom called the meeting to order at 4:00 p.m. The following members were present: Barry Sandstrom, Lee Elliott, Tom Gdowski and Glen Murray. Also present were; Director, Chad Nabity; Rose Woods; CRA Attorney; Duane Burns, Finance Director, Dave Springer, Council Liaison, Kirk Ramsey, Linda Addison and Randy Chick. Sandstrom 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 February 20, 2009 meeting, Ramsey requested a change to the meeting minutes to reflect that he was at the February meeting. Murray made the motion to approve the February 20, meeting minutes with the requested change to add that Ramsey was in attendance, seconded by Gdowski. Upon roll call vote, all present voted aye. Motion carried unanimously. 3.APPROVAL OF FINANCIAL REPORTS. Dave Springer reviewed the financial reports for the period of February 1, 2009 through February 28, 2009. He noted revenue in the amount of $71,212 and expenses in the amount of $3,068 for the month. Total cash was $1,227,857. Motion by Gdowski, second by Elliott, to approve the financial reports. Gdowski also suggested to Springer to look into moving some money to different accounts. Upon roll call vote, all present voted aye. Motion carried unanimously. 4.APPROVAL OF BILLS. The bills were reviewed by the Authority. Motion made by Elliott, second by Gdowski, to approve the bills in the amount of $2967.72 with the addition of $14.18 for postage. Upon roll call vote all present voted aye. Motion carried unanimously to approve the payment of bills totaling $2981.90. Grand Island Regular Meeting - 3/19/2009 Page 6 / 22 5.PRESENTATION BY LINDA ADDISON AND RANDY CHICK. Nabity explained this is approximately 14 acres near Fonner Park; this is the remaining land from Pleasant View Subdivision. Addison is here to ask the CRA to conduct a study to see if the area could be declared blighted and substandard. Addison proposed a 38-home affordable housing project to be built just north of Fonner Park in Grand Island with the use of Tax Increment financing. Tax- increment financing (TIF) would have redirected the property taxes on the new homes for up to 15 years to pay for water, sewer and street extensions into the so- called Pleasant View Subdivision. Addison, director the Housing Development Corp., said TIF was an integral part of the project. The project also hinged on grant support from the Nebraska Department of Economic Development support that had been given preliminarily and a previous loan commitment from the Nebraska Investment Finance Authority. Addison said the three-bedroom, single-family homes with basements and an attached two-car garage would range in size from 1,080 to 1,290 square feet. The homes would sell for $115,000 to $120,000, but have an appraisal price of about $145,000. The only comparable affordable housing subdivision in Nebraska outside of Lincoln or Omaha is in Hastings. It’s the Southwood Subdivision, which the Housing Development Corp. began in 1998. Southwood was built on a cornfield next to existing older homes, which actually increased in value after the new homes went in, Addison said. Randy Chick, Director of the Hastings CRA, spoke about how the CRA in Hastings was involved with the HDC and the Southwood development. The sticking point for the project came from neighbors and concerns raised about the project’s impact on their property values. “It will bring the value of our homes down,” said Max Swantek, 916 E. South St. He and six other South Street homeowners attended the CRA meeting in protest of the affordable housing project. “What you sell it for is what will depreciate my home,” Swantek said. South Street homeowner Laura Norvell said she built her 1,600-square-foot home at 810 E. South St. new five years ago. It has a value of $190,000. “I won’t be able to get that out of my home” if surrounding homes are not comparable, she told the CRA. Addison said just because her nonprofit organization doesn’t build smaller homes on the 13-acre site, that doesn’t stop a private developer from doing the same and potentially lowering the neighborhood values. “But that’s capitalism,” Sandstrom said. He did encourage Addison to work Grand Island Regular Meeting - 3/19/2009 Page 7 / 22 cooperatively with the CRA to find, rehabilitate or demolish and redevelop substandard homes in Grand Island. Other CRA members also supported future work with the Housing Development Corp. “This is a good project and would serve a need,” Murray said. “Maybe look at other areas of town that wouldn’t have an impact on neighbors that this one would.” Sandstorm looked for a motion to start a blight study for the Pleasant View area. No motion was made by any CRA members. CRA member Lee Elliott wanted data on what impact the subdivision may have on the surrounding homes. Addison said she had no such data and had no way of getting it. Elliott said without that data, he didn’t feel comfortable spending taxpayer money for a blight and substandard study. Neither did CRA members Tom Gdowski, Glen Murray or Barry Sandstrom. 6. REVIEW OF COMMITTED PROJECTA & CRA PROPERTIES. Nabity stated that the sale of the Star Motel property was final. Also the Hall County building just sent out requests for bids on the remainder of the paving project. The 2009 Wayside horns are also moving forward with August or September to have the first phase complete. 7. ADJOURN TO EXECUTIVE SESSION TO DISCUSS NEGOTIONS. There were no negations to discuss. 8.DIRECTOR’S REPORT. 9. ADJOURNMENT. Chairman Sandstrom asked for a motion to adjourn the meeting, motion made by Pirnie and seconded by Murray, Sandstrom adjourned the meeting at 5:35 p.m. The next meeting is scheduled for April 8, 2009. Respectfully submitted Chad Nabity Director Grand Island Regular Meeting - 3/19/2009 Page 8 / 22 Community Redevelopment Authority (CRA) Thursday, March 19, 2009 Regular Meeting Item C1 Financial Reports Staff Contact: Chad Nabity Grand Island Regular Meeting - 3/19/2009 Page 9 / 22 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF FEBRUARY 2009 MONTH ENDED 2008 - 2009 2009 REMAINING FEBRUARY 2009 YEAR TO DATE BUDGET BALANCE CONSOLIDATED Beginning Cash 1,159,712 1,236,622 1,236,622 REVENUE: Property Taxes 23,401 212,021 697,796 485,775 Loan Proceeds - - - - Interest Income 620 5,329 10,000 4,671 Land Sales 46,835 47,335 50,000 2,665 Other Revenue 356 16,053 - (16,053) TOTAL REVENUE 71,212 280,738 757,796 477,058 TOTAL RESOURCES 1,230,925 1,517,360 1,994,418 477,058 EXPENSES Auditing & Accounting - 4,700 8,000 3,300 Legal Services 720 3,390 10,000 6,610 Consulting Services - - 10,000 10,000 Contract Services 2,203 11,312 40,000 28,688 Printing & Binding - - 1,000 1,000 Other Professional Services - - 6,000 6,000 General Liability Insurance - - 250 250 Postage 16 88 250 162 Matching Grant - - - - Legal Notices - 38 800 762 Licenses & Fees - - - - Travel & Training - - 1,500 1,500 Other Expenditures - - 500 500 Office Supplies - 38 500 462 Supplies - - 300 300 Land 129 129 100,000 99,871 Façade Improvement - 155,551 200,000 44,449 South Locust - - - - Alleyway Improvement - - - - Other Projects - 2,858 500,000 497,142 Bond Principal - 67,525 128,002 60,477 Bond Interest - 43,873 94,794 50,921 Interest Expense - - - - - - - TOTAL EXPENSES 3,068 289,503 1,101,896 812,393 INCREASE(DECREASE) IN CASH 68,145 (8,765) (344,100) (335,335) ENDING CASH 1,227,857 1,227,857 892,522 (335,335) LESS COMMITMENTS 520,200 - AVAILABLE CASH 707,657 1,227,857 892,522 (335,335) CHECKING 726,357 PETTY CASH 50 INVESTMENTS 501,451 Total Cash 1,227,857 Grand Island Regular Meeting - 3/19/2009 Page 10 / 22 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF FEBRUARY 2009 MONTH ENDED 2008 - 2009 2009 REMAINING FEBRUARY 2009 YEAR TO DATE BUDGET BALANCE CRA GENERAL OPERATIONS: Property Taxes 18,371 137,283 475,000 337,717 Interest Income 588 4,808 10,000 5,192 Land Sales 46,835 47,335 50,000 2,665 Other Revenue & Motor Vehicle Tax 356 7,077 - (7,077) TOTAL 66,150 196,503 535,000 338,497 GILI TRUST Property Taxes 1,366 32,798 65,780 32,982 Interest Income - - - - Other Revenue - 277 - (277) TOTAL 1,366 33,075 65,780 32,705 CHERRY PARK LTD II Property Taxes 1,291 30,987 59,180 28,193 Interest Income 32 297 - (297) Other Revenue - - - - TOTAL 1,323 31,284 59,180 27,896 GENTLE DENTAL Property Taxes 92 92 4,202 4,110 Interest Income 0 0 - (0) Other Revenue - 702 - (702) TOTAL 92 794 4,202 3,408 PROCON TIF Property Taxes 369 8,948 19,162 10,214 Interest Income 0 35 - (35) Other Revenue - - - - TOTAL 369 8,983 19,162 10,179 WALNUT HOUSING PROJECT Property Taxes 1,308 1,308 74,472 73,164 Interest Income 0 190 - (190) Other Revenue - 7,998 - (7,998) TOTAL 1,308 9,495 74,472 64,977 BRUNS PET GROOMING Property Taxes 199 199 - (199) Interest Income - - - - Other Revenue - - - - TOTAL 199 199 - (199) GIRARD VET CLINIC Property Taxes 197 197 - (197) Interest Income - - - - Other Revenue - - - - TOTAL 197 197 - (197) GEDDES ST APTS-PROCON Property Taxes 25 25 - (25) Interest Income - - - - Other Revenue - - - - Grand Island Regular Meeting - 3/19/2009 Page 11 / 22 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF FEBRUARY 2009 MONTH ENDED 2008 - 2009 2009 REMAINING FEBRUARY 2009 YEAR TO DATE BUDGET BALANCE TOTAL 25 25 - (25) SOUTHEAST CROSSING Property Taxes 184 184 - (184) Interest Income - - - - Other Revenue - - - - TOTAL 184 184 - (184) TOTAL REVENUE 71,212 280,738 757,796 477,058 Grand Island Regular Meeting - 3/19/2009 Page 12 / 22 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF FEBRUARY 2009 MONTH ENDED 2008 - 2009 2009 REMAINING FEBRUARY 2009 YEAR TO DATE BUDGET BALANCE EXPENSES CRA GENERAL OPERATIONS: Auditing & Accounting - 4,700 8,000 3,300 Legal Services 720 3,390 10,000 6,610 Consulting Services - - 10,000 10,000 Contract Services 2,203 11,312 40,000 28,688 Printing & Binding - - 1,000 1,000 Other Professional Services - - 6,000 6,000 General Liability Insurance - - 250 250 Postage 16 88 200 112 Matching Grant - - - - Legal Notices - 38 800 762 Licenses & Fees - - - - Travel & Training - - 1,000 1,000 Other Expenditures - - 500 500 Office Supplies - 38 500 462 Supplies - - 300 300 Land 129 129 100,000 99,871 PROJECTS Façade Improvement - 155,551 758,750 603,199 South Locust - - - - Alleyway Improvement - - - - Other Projects - 2,858 500,000 497,142 TOTAL CRA EXPENSES 3,068 178,105 1,437,300 1,259,195 GILI TRUST Bond Principal - 25,001 51,001 26,000 Bond Interest - 7,889 14,779 6,890 Other Expenditures - - - - TOTAL GILI EXPENSES - 32,890 65,780 32,890 CHERRY PARK LTD II Bond Principal - 19,487 39,729 20,242 Bond Interest - 10,103 19,451 9,348 TOTAL CHERRY PARK EXPENSES - 29,590 59,180 29,590 GENTLE DENTAL Bond Principal - 1,096 2,276 1,180 Bond Interest - 1,005 1,926 921 TOTAL GENTLE DENTAL - 2,101 4,202 2,101 PROCON TIF Bond Principal - 4,572 9,467 4,895 Bond Interest - 5,009 9,695 4,686 TOTAL PROCON TIF - 9,581 19,162 9,581 WALNUT HOUSING PROJECT Bond Principal - 17,368 39,151 21,783 Bond Interest - 19,868 35,321 15,453 - - - TOTAL WALNUT HOUSING - 37,236 74,472 37,236 Grand Island Regular Meeting - 3/19/2009 Page 13 / 22 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF FEBRUARY 2009 MONTH ENDED 2008 - 2009 2009 REMAINING FEBRUARY 2009 YEAR TO DATE BUDGET BALANCE BRUNS PET GROOMING Bond Principal - - - - Bond Interest - - - - TOTAL BRUNS PET GROOMING - - - - GIRARD VET CLINIC Bond Principal - - - - Bond Interest - - - - TOTAL GIRARD VET CLINIC - - - - TOTAL EXPENSES 3,068 289,503 1,660,096 1,370,593 Grand Island Regular Meeting - 3/19/2009 Page 14 / 22 Community Redevelopment Authority (CRA) Thursday, March 19, 2009 Regular Meeting Item D1 Bills Staff Contact: Chad Nabity Grand Island Regular Meeting - 3/19/2009 Page 15 / 22 11-Mar-09 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 $2,093.85 Accounting Officenet Inc. Postage December, January, Feb $60.07 Lawnscape $220.00 Grand Island Independent $38.73 Monthly & Redevelopment Plan Notices Mayer, Burns, Koenig & Janulewicz Legal Services $569.25 Total: $2,981.90 Grand Island Regular Meeting - 3/19/2009 Page 16 / 22 Community Redevelopment Authority (CRA) Thursday, March 19, 2009 Regular Meeting Item E1 Committed Projects Staff Contact: Chad Nabity Grand Island Regular Meeting - 3/19/2009 Page 17 / 22 COMMITTED PROJECTS AMOUNT ESTIMATED DUE DATE BID 6 (Landscaping)$95,000 Fall 2009 Hall County $37,500 Spring 2009 Romsa Real Estate Center $75,000 Spring 2009 BID 6 (Conduit)$55,000 Spring 2009 Paul Warshauer (Masonic Temple) $17,700 Spring 2009 2008 Wayside Horns $140,000 Spring 2009 2009 Wayside Horns $100,000 Fall 2009 Total Committed $520,200 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 211 E 1st $34,702 11-13-07 $8,000 Surplus February 28, 2009 Grand Island Regular Meeting - 3/19/2009 Page 18 / 22 Community Redevelopment Authority (CRA) Thursday, March 19, 2009 Regular Meeting Item X1 HDC Staff Contact: Chad Nabity Grand Island Regular Meeting - 3/19/2009 Page 19 / 22 Grand Island Regular Meeting - 3/19/2009 Page 20 / 22 Grand Island Regular Meeting - 3/19/2009 Page 21 / 22 Grand Island Regular Meeting - 3/19/2009 Page 22 / 22