07-16-2009 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Thursday, July 16, 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 - 7/16/2009 Page 1 / 21
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 - 7/16/2009 Page 2 / 21
Community Redevelopment
Authority (CRA)
Thursday, July 16, 2009
Regular Meeting
Item A1
Agenda
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 7/16/2009 Page 3 / 21
AGENDA
Thursday July 16, 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 June 25, 2009 Meeting.
3.Approval of Financial Reports
4.Approval of Bills
5.Barbara Quandt discussing Community Development Block Grant program
requirements for housing rehabilitation.
6.Discussion of 2009-2010 Budget
7.Resolution to approve preliminary budget and levy request for the 2009-2010 Budget
Resolution #101. A MOTION is in order.
8.Review of Committed Projects and CRA Properties
9.ADJOURN TO EXECUTIVE SESSION TO DISCUSS NEGOTIATIONS
RETURN TO REGULAR SESSION
10.Approve Resolution or Resolutions to Purchase/Sell Property
11.Directors Report
12.Adjournment
Next Meeting August 12, 2009
The CRA may go into closed session for any agenda item as allowed by state law.
Grand Island Regular Meeting - 7/16/2009 Page 4 / 21
Community Redevelopment
Authority (CRA)
Thursday, July 16, 2009
Regular Meeting
Item B1
Meeting Minutes
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 7/16/2009 Page 5 / 21
OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
June 25, 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 June 25, 2009 at City Hall 100 E First Street. Notice of the meeting was given
in the June 18, 2009 Grand Island Independent.
1.CALL TO ORDER Chairman Barry Sandstrom called the meeting to
order at 2:34 p.m. The following members were present: Barry
Sandstrom, Tom Gdowski, Sue Pirnie, Lee Elliott and Glen Murray. Also
present were; Director, Chad Nabity; Rose Woods; CRA Attorney; Duane
Burns, Finance Director, Dave Springer, Community Development
Administrator’s, Joni Kuzma and Barbara Quandt and Attorney, Mike
Bacon.
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
May 27, 2009 meeting, Murray made the motion to approve the May 27th,
2009, meeting minutes and was seconded by Gdowski. Upon roll call
vote, all present voted aye. Motion carried unanimously.
3.APPROVAL OF FINANCIAL REPORTS. Springer reviewed the financial
reports for the period of May 1, 2009 through May 31, 2009. He noted
revenue in the amount of $244,746 and expenses in the amount of
$21,546 for the month. Total cash was $1,470,060. Motion by Gdowski,
seconded by Murray, to approve the financial reports. Upon roll call vote,
all present voted aye. Motion carried unanimously.
4.APPROVAL OF BILLS. The bills were reviewed by Springer.
Motion made by Elliott seconded by Murray to approve the bills in the
amount of $2272.62. Upon roll call vote all present voted aye. Motion
carried unanimously to approve the payment of bills totaling $2272.62.
5.DISCUSSION OF CRA DESIGNATED AREAS AND POTENTIAL TIF
DISTRICT FOR HOUSING IMPROVEMENTS. Mike Bacon presented the
Grand Island Regular Meeting - 7/16/2009 Page 6 / 21
possibilities, potential and pitfalls of creating a TIF district in a residential
district for the express purpose of renovating a residential neighborhood.
Mr. Bacon described this approach as “Bucket TIF”. The CRA is creating a
bucket to use to capture the increased value of an area and put that money
back to work in that area to eliminate or reduce conditions that create a
blighted and substandard area. Grand Island has not used the bucket TIF
approach but rather has used a project specific TIF approach that put the
used the increased tax base created by a project to make that particular
project feasible by putting the money back into that specific project.
Questions presented to Mr. Bacon:
TIF
Can we capture all of the TIF in the area? All of the TIF can be captured not
just that created through specific projects but also that created by natural
valuation increases or improvements that were market driven or done with
grant funds.
How do we handle TIF contracts on each project? Only those projects
using TIF funds would need a contract. The plan should be able to be
written broad enough to allow CRA to approve contracts to spend TIF
dollars for specific project just by notifying the City Council of intent to enter
into a contract. It would not involve further approvals by Council or Planning
Commission.
Do we need a TIF contract on each project or can we capture the funds and
redirect them according to the plan either as grants, loans, interest buy
downs etc….? We can capture funds on all improvements in the area. A
TIF contract would be necessary to spend TIF funds on improvements in the
area.
How do we distinguish between new value and increased value due to
appreciation? You don’t need to. It might be a good idea to try to track that
though to show whether this approach works and if it causes property
values to rise in the area.
Can we capture the value of appreciation if it is a result of removal of
blighted elements? Yes. Any increase in valuation above the base year can
be captured regardless of what led to that increase.
Can we capture the value of improvements that CRA or identified groups did
not directly create? Yes
Do we have to set up a separate fund to administer these dollars through?
Yes a separate fund must be set up for the administration of these dollars.
Grand Island Regular Meeting - 7/16/2009 Page 7 / 21
How long can that fund be maintained? How does the 15 year limit fit into
this? The TIF can only be captured for 15 years. The funds can be spent
until they are gone according to the approved plan. A revolving loan fund
could last much longer than the TIF period.
If there are unspent dollars in the fund at the end of the project where do
they go? They can still be spent on projects according to the
redevelopment plan or the CRA can turn the money back over to the County
Treasurer and the funds can be distributed to the taxing entities.
Can we designate an area with the intent to capture all of the tax increment
created (realized) in the first 5 (or some other number) years for the full 15
year period but not collect any additional increment created between years
6 and 15? If we set it up that way are individual TIF projects available in the
area? Yes the number of years can be less than 15. The project can even
terminated in the middle of the 15 year period if CRA and Council want to
take that action. Once the bucket TIF district is no longer capturing funds a
new project specific TIF project could be done. Also a new bucket TIF could
be done. The look back period for establishing the value of the area or the
project would be set based on the current valuations.
CDBG
If we spend more than $25,000 on a rehab project and CDBG funds are
only $25,000 or less do we need to abate the property? If we do projects
like window replacement with other funds do we need to abate?
Housing
How do we choose whether to rehab or rebuild?
How much can we pay for a structure that we intend to demolish?
Can we pay more if we can get the whole block or ½ a block?
Can we contract with an appraiser to perform those services and charge
that back to the TIF revenues?
Can we work with lenders to purchase foreclosed properties at a discount in
an expedited manner? If so can we work with the lenders to allow Habitat
or HDC make the purchase instead of the CRA?
If CRA purchases the property can they designate a buyer or designate a
certain percentage of properties for types of buyer eg. Habitat, HDC, Private
Developers?
Grand Island Regular Meeting - 7/16/2009 Page 8 / 21
Bacon discussed in length regarding the Bucket TIF, selecting an area that
would be blighted and substandard. Bacon also discussed the lookback
date involved in TIF’s. Bacon also provided a copy of the TIF statutes that
set forth how and what TIF dollars can be used for.
6. REVIEW OF COMMITTED PROJECTS AND CRA PROPERTY. Hall
County is still moving forward Bids have been received and project should
begin soon. Romsa Real Estate Center is waiting on parking and final
inspections. Nothing received on BID 6 as of yet. Paul Warshauer
(Masonic Temple) nothing has been done as of yet.
7. ADJOURN TO EXECUTIVE SESSION TO DISCUSS NEGOTIONS. No
executive session needed.
8.DIRECTOR’S REPORT.
Façade committee needed for a Façade request, needing final plans from
Marv Webb on the application. Also some upcoming request from Grand
Theater and Tom Ziller.
9. ADJOURNMENT.
Chairman Sandstrom adjourned the meeting at 4:15. The next meeting is
scheduled for July.
Respectfully submitted
Chad Nabity
Director
Grand Island Regular Meeting - 7/16/2009 Page 9 / 21
Community Redevelopment
Authority (CRA)
Thursday, July 16, 2009
Regular Meeting
Item C1
Financial Reports
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 7/16/2009 Page 10 / 21
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2009
MONTH ENDED 2008 - 2009 2009 REMAINING
JUNE 2009 YEAR TO DATE BUDGET BALANCE
CONSOLIDATED
Beginning Cash 1,470,060 1,236,622 1,236,622
REVENUE:
Property Taxes 88,733 568,398 697,796 129,398
Loan Proceeds - - - -
Interest Income 236 6,768 10,000 3,232
Land Sales - 47,335 50,000 2,665
Other Revenue 6,538 23,871 - (23,871)
TOTAL REVENUE 95,507 646,372 757,796 111,424
TOTAL RESOURCES 1,565,567 1,882,994 1,994,418 111,424
EXPENSES
Auditing & Accounting - 5,121 8,000 2,879
Legal Services 120 4,514 10,000 5,486
Consulting Services - - 10,000 10,000
Contract Services 2,106 20,990 40,000 19,010
Printing & Binding - - 1,000 1,000
Other Professional Services - - 6,000 6,000
General Liability Insurance - - 250 250
Postage 19 128 250 122
Matching Grant - - - -
Legal Notices 28 131 800 669
Licenses & Fees - - - -
Travel & Training - - 1,500 1,500
Other Expenditures - - 500 500
Office Supplies - 38 500 462
Supplies - - 300 300
Land - 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 70,972 157,338 128,002 (29,336)
Bond Interest 41,572 85,445 94,794 9,349
Interest Expense - - - -
- - -
TOTAL EXPENSES 114,816 432,243 1,101,896 669,653
INCREASE(DECREASE) IN CASH (19,309) 214,129 (344,100) (558,229)
ENDING CASH 1,450,751 1,450,751 892,522 (558,229)
LESS COMMITMENTS 520,200 520,200
AVAILABLE CASH 930,551 930,551 892,522 (558,229)
CHECKING 549,251
PETTY CASH 50
INVESTMENTS 901,451
Total Cash 1,450,751
Grand Island Regular Meeting - 7/16/2009 Page 11 / 21
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2009
MONTH ENDED 2008 - 2009 2009 REMAINING
JUNE 2009 YEAR TO DATE BUDGET BALANCE
CRA
GENERAL OPERATIONS:
Property Taxes 78,881 369,655 475,000 105,345
Interest Income 173 6,102 10,000 3,898
Land Sales - 47,335 50,000 2,665
Other Revenue & Motor Vehicle Tax - 8,357 - (8,357)
TOTAL 79,054 431,449 535,000 103,551
GILI TRUST
Property Taxes 45 65,728 65,780 52
Interest Income - - - -
Other Revenue - 277 - (277)
TOTAL 45 66,005 65,780 (225)
CHERRY PARK LTD II
Property Taxes 42 62,099 59,180 (2,919)
Interest Income 50 423 - (423)
Other Revenue - - - -
TOTAL 93 62,522 59,180 (3,342)
GENTLE DENTAL
Property Taxes 3 196 4,202 4,006
Interest Income 0 1 - (1)
Other Revenue 1,908 2,610 - (2,610)
TOTAL 1,911 2,806 4,202 1,396
PROCON TIF
Property Taxes 8,574 17,911 19,162 1,251
Interest Income 0 36 - (36)
Other Revenue 232 232 - (232)
TOTAL 8,807 18,180 19,162 982
WALNUT HOUSING PROJECT
Property Taxes 43 32,821 74,472 41,651
Interest Income 13 207 - (207)
Other Revenue 4,398 12,395 - (12,395)
TOTAL 4,453 45,423 74,472 29,049
BRUNS PET GROOMING
Property Taxes - 4,986 - (4,986)
Interest Income - - - -
Other Revenue - - - -
TOTAL - 4,986 - (4,986)
GIRARD VET CLINIC
Property Taxes - 4,940 - (4,940)
Interest Income - - - -
Other Revenue - - - -
TOTAL - 4,940 - (4,940)
GEDDES ST APTS-PROCON
Property Taxes 1,146 1,195 - (1,195)
Interest Income - - - -
Other Revenue - - - -
Grand Island Regular Meeting - 7/16/2009 Page 12 / 21
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2009
MONTH ENDED 2008 - 2009 2009 REMAINING
JUNE 2009 YEAR TO DATE BUDGET BALANCE
TOTAL 1,146 1,195 - (1,195)
SOUTHEAST CROSSING
Property Taxes - 8,866 - (8,866)
Interest Income - - - -
Other Revenue - - - -
TOTAL - 8,866 - (8,866)
TOTAL REVENUE 95,507 646,372 757,796 111,424
Grand Island Regular Meeting - 7/16/2009 Page 13 / 21
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2009
MONTH ENDED 2008 - 2009 2009 REMAINING
JUNE 2009 YEAR TO DATE BUDGET BALANCE
EXPENSES
CRA
GENERAL OPERATIONS:
Auditing & Accounting - 5,121 8,000 2,879
Legal Services 120 4,514 10,000 5,486
Consulting Services - - 10,000 10,000
Contract Services 2,106 20,990 40,000 19,010
Printing & Binding - - 1,000 1,000
Other Professional Services - - 6,000 6,000
General Liability Insurance - - 250 250
Postage 19 128 200 72
Matching Grant - - - -
Legal Notices 28 131 800 669
Licenses & Fees - - - -
Travel & Training - - 1,000 1,000
Other Expenditures - - 500 500
Office Supplies - 38 500 462
Supplies - - 300 300
Land - 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 2,273 189,460 1,437,300 1,247,840
GILI TRUST
Bond Principal 26,000 51,001 51,001 (0)
Bond Interest 6,890 14,779 14,779 0
Other Expenditures - - - -
TOTAL GILI EXPENSES 32,890 65,780 65,780 -
CHERRY PARK LTD II
Bond Principal 20,242 39,729 39,729 (0)
Bond Interest 9,348 19,451 19,451 0
TOTAL CHERRY PARK EXPENSES 29,590 59,180 59,180 (0)
GENTLE DENTAL
Bond Principal 1,140 2,236 2,276 40
Bond Interest 961 1,966 1,926 (40)
TOTAL GENTLE DENTAL 2,101 4,202 4,202 -
PROCON TIF
Bond Principal 4,491 9,064 9,467 404
Bond Interest 5,090 10,098 9,695 (403)
TOTAL PROCON TIF 9,581 19,162 19,162 0
WALNUT HOUSING PROJECT
Bond Principal 17,953 35,321 39,151 3,830
Bond Interest 19,283 39,151 35,321 (3,830)
- - -
TOTAL WALNUT HOUSING 37,236 74,472 74,472 0
Grand Island Regular Meeting - 7/16/2009 Page 14 / 21
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2009
MONTH ENDED 2008 - 2009 2009 REMAINING
JUNE 2009 YEAR TO DATE BUDGET BALANCE
BRUNS PET GROOMING
Bond Principal - 4,986 - (4,986)
Bond Interest - - - -
TOTAL BRUNS PET GROOMING - 4,986 - (4,986)
GIRARD VET CLINIC
Bond Principal - 4,940 - (4,940)
Bond Interest - - - -
TOTAL GIRARD VET CLINIC - 4,940 - (4,940)
GEDDES ST APTS - PROCON
Bond Principal 1,146 1,195 - (1,195)
Bond Interest - - - -
TOTAL GEDDES ST APTS - PROCON 1,146 1,195 - (1,195)
SOUTHEAST CROSSINGS
Bond Principal - 8,866 - (8,866)
Bond Interest - - - -
TOTAL SOUTHEAST CROSSINGS - 8,866 - (8,866)
TOTAL EXPENSES 114,816 432,243 1,660,096 1,237,915
Grand Island Regular Meeting - 7/16/2009 Page 15 / 21
Community Redevelopment
Authority (CRA)
Thursday, July 16, 2009
Regular Meeting
Item D1
Bills
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 7/16/2009 Page 16 / 21
16-Jul-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 $2,105.87
Accounting $375.00
Officenet Inc.
Postage
Lawnscape $320.00
Grand Island Independent
Monthly & Redevelopment Plan Notices $41.34
Mayer, Burns, Koenig & Janulewicz Legal Services $180.00
Total:
$3,022.21
Grand Island Regular Meeting - 7/16/2009 Page 17 / 21
Community Redevelopment
Authority (CRA)
Thursday, July 16, 2009
Regular Meeting
Item E1
Committed Projects
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 7/16/2009 Page 18 / 21
COMMITTED
PROJECTS
AMOUNT ESTIMATED DUE DATE
BID 6 (Landscaping)$95,000 Fall 2009
Hall County $37,500 Summer 2009
Romsa Real Estate Center $75,000 Fall 2009
New Life Community
Church
$2,500 July 2009
BID 6 (Conduit)$55,000 Spring 2009
Paul Warshauer
(Masonic Temple)
$17,700 Spring 2009
2008 Wayside Horns $140,000 Fall 2009
2009 Wayside Horns $100,000 Fall 2009
The Dock Façade $57,250 Fall 2009
Total Committed $579,950
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
June 30, 2009
Grand Island Regular Meeting - 7/16/2009 Page 19 / 21
Community Redevelopment
Authority (CRA)
Thursday, July 16, 2009
Regular Meeting
Item K1
Budget
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 7/16/2009 Page 20 / 21
COMMUNITY REDEVELOPMENT AUTHORITY
GRAND ISLAND, NEBRASKA
RESOLUTION #101
A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA (the “Authority”) RECOMMENDING A LEVY ALLOCATION
BY THE CITY OF GRAND ISLAND TO THE AUTHORITY FOR ITS BUDGETARY PURPOSES
IN FISCAL YEAR 2009-20010 AS AUTHORIZED BY NE. REV. STATUTES 77-3443, AS
AMENDED.
WHEREAS, the Mayor and City Council of the City of Grand Island, Nebraska (the “City”), by
its Ordinance passed and adopted June 27, 1994, created the Community Redevelopment Authority of
the City of Grand Island, Nebraska, pursuant to Sections 18-2101 through 18-2153 of the Nebraska
Community Development Law; Reissue Revised Statutes of Nebraska, as amended (the “Act”);
WHEREAS, on July 21, 2009, the members of the Community Redevelopment Authority of the
City of Grand Island considered its budget for fiscal year 2009-2010 and determined that a request for
personal and real property tax in the amount of $425,000 is necessary to accomplish the statutory
purposes of the Authority in the upcoming fiscal year and that the accomplishment of these purposes is
in the best interests of the City of Grand Island.
NOW, THEREFORE BE IT RESOLVED THAT, by copy of this Resolution delivered to the
City of Grand Island on this date, the Authority hereby requests and recommends that the City of Grand
Island, Nebraska, as a part of the City maximum levy of $.45 per $100 of taxable valuation of property,
as authorized by the Revised Statutes of Nebraska, Section 77-3442, authorize a 2008-2009 levy
allocation which will provide $425,000 in personal and real property tax funds to the Community
Redevelopment Authority of the City of Grand Island for the accomplishment of the purposes for which
it was created.
Passed and approved by the Authority this 21st day of July, 2009.
COMMUNITY REDEVELOPMENT AUTHORITY OF
THE CITY OF GRAND ISLAND, NEBRASKA
By:_________________________________
Chair
ATTEST:
_____________________________
Director
Grand Island Regular Meeting - 7/16/2009 Page 21 / 21