01-13-2010 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2010
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 - 1/13/2010 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 - 1/13/2010 Page 2 / 35
Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2010
Regular Meeting
Item A1
Agenda
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/13/2010 Page 3 / 35
AGENDA
Wednesday January 13, 2010
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 December 8, 2009 Meeting.
3.Approval of Financial Reports.
4.Approval of Bills.
5.Consideration of Redevelopment contract for 703 S Lincoln Ave., with John Schulte
Construction.
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 February 10, 2010
The CRA may go into closed session for any agenda item as allowed by state law.
Grand Island Regular Meeting - 1/13/2010 Page 4 / 35
Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2010
Regular Meeting
Item B1
Meeting Minutes
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/13/2010 Page 5 / 35
OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
December 14, 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 December 14, 2009 at City Hall 100 E First Street. Notice of the meeting was
given in the December 11, 2009 Grand Island Independent.
1.CALL TO ORDER Chairman Barry Sandstrom called the meeting to
order at 4:01 p.m. The following members were present: Barry
Sandstrom, Lee Elliott and Tom Gdowski. Sue Pirnie joined the meeting
at 4:06. Also present were; Director, Chad Nabity; Rose Woods.
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
November 12, 2009 meeting, Gdowski made the motion to approve the
November 12, 2009 meeting minutes. Motion was seconded by Elliott.
Upon roll call vote, all present voted aye. Motion carried unanimously.
3.APPROVAL OF FINANCIAL REPORTS. Chad Nabity reviewed the
financial reports for the period of November 1, 2009 through November
30, 2009. He noted revenue in the amount of $6,649 and expenses in the
amount of $3190 for the month. Total cash was $1,668,193. Motion by
Gdowski, seconded by Elliot, 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 Sandstrom.
Motion made by Gdowski seconded by Elliott to approve the bills in the
amount of $151,946.32. Upon roll call vote all present voted aye. Motion
carried unanimously to approve the payment of bills totaling $151,946.32.
5.CONSIDERATION OF RESOLUTION 106. This is a consideration of
Resolution 106, to forward a redevelopment plan amendment to the Hall
County Regional Planning Commission for an area on 9th Street and 12th
Street, in Grand Island. Nabity explained this is the “Bucket” TIF and CRA
is going to help fund the project. Habitat for Humanity is in the process of
Grand Island Regular Meeting - 1/13/2010 Page 6 / 35
purchasing 4 lots that are currently vacant. There is no water to these lots
currently and CRA could lend GI Utilities money to provide water this area.
Over the next 15 years the project should be able to use the tax increment
to repay the CRA. There is also future expansion of 3 lots. Motion was
made by Elliott and seconded by Pirnie to approve Resolution 106 to
forward the redevelopment plan to Hall County Regional Planning. Upon
roll call vote all present voted aye. Motion carried unanimously to approve
Resolution 106.
6.CONSIDERATION OF RESOLUTION 107. The consideration to approve
Resolution 107 sending notice of intent to enter into a Redevelopment
contract with CRA, for redevelopment of an area within the city limits of the
City of Grand Island, an area on Poplar Street between 9th Street and 12th
Street. Motion was made by Elliott and seconded by Gdowski to approve
Resolution 107 to forward notice of intent to enter into a Redevelopment
contract with CRA to City Council. Upon roll call vote all present voted aye.
Motion carried unanimously to approve Resolution 107.
7.CONSIDERATION OF RESOLUTION 108. This is a consideration of
Resolution 108, to forward a redevelopment plan amendment to the Hall
County Regional Planning Commission for 423 W 4th Street, in Grand
Island. Nabity explained Mike Hamik is purchasing the ground where the
old Glovera Ballroom once stood before it burnt down in 1956. Hamik is
looking to build a new U-Save Pharmacy to reach the Hispanic population
of Grand Island. Hamik noted 20% of Grand Island’s population is
Hispanic and he would like to bring the pharmacy to them. Motion was
made by Gdowski and seconded by Pirnie to approve Resolution 108 to
forward the redevelopment plan to Hall County Regional Planning. Upon
roll call vote all present voted aye. Motion carried unanimously to approve
Resolution 108.
8.CONSIDERATION OF RESOLUTION 109. The consideration to approve
Resolution 109 sending notice of intent to enter into a Redevelopment
contract with Pharmacy Properties, LLC, for redevelopment of an area
within the city limits of the City of Grand Island, 423 W 4th Street. Motion
was made by Pirnie and seconded by Elliott to approve Resolution 109 to
forward notice of intent to enter into a Redevelopment contract with
Pharmacy Properties, LLC, to City Council. Upon roll call vote all present
voted aye. Motion carried unanimously to approve Resolution 109.
9.CONSIDERATION OF RESOLUTION 110. The consideration of a
Resolution to approve a Redevelopment Plan Amendment for 703 S
Lincoln Street. Motion was made by Gdowski and seconded by Elliott to
approve Resolution 110 to forward notice of intent to enter into a
Redevelopment contract with John Schulte Construction. Upon roll call
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vote all present voted aye. Motion carried unanimously to approve
Resolution 110.
10.REVIEW OF COMMITTED PROJECTS. Nabity discussed BID 6
landscaping had submitted a bill to be paid in December and there
remaining balance was approximately $6200.00, Romsa Real Estate was
finally complete and had been submitted for payment in December. BID 6
(Conduit) date would be moved to spring of 2010. Paul Warshauer
(Masonic Temple would be moved to spring of 2010. Wayside Horns for
2008 and 2009 will be moved to spring of 2010 as will the Dock Façade
and T.R. Merchen Façade for the Tattered Book. The “Bucket” TIF for 11th
& Poplar Streets will change amount to $136,000 and be starting in the
spring of 2010. Sin City will be removed as project is finished and had
been submitted for payment in December. Ryder, Rosacker, McHue and
Huston Insurance has yet to start their project, date will remain unchanged
for spring of 2010. The purchase of 3235 S Locust is still pending. Patrick
Heng should be bringing up signed purchase agreement December 16,
2009.
11.ADJOURN TO EXECUTIVE SESSION TO DISCUSS NEGOTIATIONS.
Pirnie made the motion to enter into executive session, seconded by
Gdowski, at 4:27 p.m. Gdowski made the motion to adjourn out of
executive session, seconded by Elliott at 4:52 p.m.
12.APPROVE RESOLUTION TO PURCHASE/SELL PROPERTY. No
Resolutions to purchase or sell property.
13. DIRECTOR’S REPORT.
14.ADJOURNMENT.
Chairman Sandstrom adjourned the meeting at 4:55 p.m.
The next meeting is scheduled for January 13, 2010 at 4:00 p.m.
Respectfully submitted
Chad Nabity
Director
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Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2010
Regular Meeting
Item C1
Financial Reports
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/13/2010 Page 9 / 35
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF DECEMBER 2009
MONTH ENDED 2009 - 2010 2010 REMAINING
DECEMBER 2009 YEAR TO DATE BUDGET BALANCE
CONSOLIDATED
Beginning Cash 1,668,193 1,547,542 1,547,542
REVENUE:
Property Taxes 3,528 125,954 662,843 536,889
Loan Proceeds - - - -
Interest Income 212 10,197 12,940 2,743
Land Sales - - 50,000 50,000
Other Revenue 8,047 8,169 - (8,169)
TOTAL REVENUE 11,788 144,321 725,783 581,462
TOTAL RESOURCES 1,679,980 1,691,863 2,273,325 581,462
EXPENSES
Auditing & Accounting - 417 7,500 7,083
Legal Services 240 495 10,000 9,505
Consulting Services - - 10,000 10,000
Contract Services 2,113 8,306 40,000 31,694
Printing & Binding - - 1,000 1,000
Other Professional Services - - 5,000 5,000
General Liability Insurance - - 250 250
Postage 14 14 200 186
Matching Grant - - - -
Legal Notices 14 486 800 314
Licenses & Fees - - - -
Travel & Training - - 1,000 1,000
Other Expenditures 50 50 500 450
Office Supplies - - 500 500
Supplies 3,975 3,975 300 (3,675)
Land - - 100,000 100,000
Façade Improvement 145,540 145,540 539,950 394,410
South Locust - - - -
Alleyway Improvement - - - -
Other Projects - - 800,000 800,000
Bond Principal 72,826 77,372 161,611 84,239
Bond Interest 38,572 38,572 81,172 42,600
Interest Expense - - - -
- - -
TOTAL EXPENSES 263,344 275,227 1,759,783 1,484,556
INCREASE(DECREASE) IN CASH (251,557) (130,906) 513,542
ENDING CASH 1,416,636 1,416,636 2,061,084
LESS COMMITMENTS 1,175,369 1,334,909
AVAILABLE CASH 241,267 81,727 2,061,084 -
CHECKING 500,799
PETTY CASH -
INVESTMENTS 915,837
Total Cash 1,416,636
Grand Island Regular Meeting - 1/13/2010 Page 10 / 35
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF DECEMBER 2009
MONTH ENDED 2009 - 2010 2010 REMAINING
DECEMBER 2009 YEAR TO DATE BUDGET BALANCE
CRA
GENERAL OPERATIONS:
Property Taxes 3,528 81,456 425,000 343,544
Interest Income 147 10,024 8,000 (2,024)
Land Sales - - 50,000 50,000
Other Revenue & Motor Vehicle Tax - 122 - (122)
TOTAL 3,676 91,602 483,000 391,398
GILI TRUST
Property Taxes - 31,386 65,780 34,394
Interest Income - - - -
Other Revenue 8 8 - (8)
TOTAL 8 31,394 65,780 34,386
CHERRY PARK LTD II
Property Taxes - - 59,180 59,180
Interest Income 55 143 - (143)
Other Revenue - - - -
TOTAL 55 143 59,180 59,037
GENTLE DENTAL
Property Taxes - - 4,202 4,202
Interest Income 0 1 - (1)
Other Revenue - - - -
TOTAL 0 1 4,202 4,201
PROCON TIF
Property Taxes - 8,567 19,162 10,595
Interest Income 2 5 - (5)
Other Revenue 998 998 - (998)
TOTAL 1,000 9,569 19,162 9,593
WALNUT HOUSING PROJECT
Property Taxes - - 74,472 74,472
Interest Income 7 25 - (25)
Other Revenue 7,041 7,041 - (7,041)
TOTAL 7,049 7,067 74,472 67,405
BRUNS PET GROOMING
Property Taxes - - 4,986 4,986
Interest Income - - 4,940 4,940
Other Revenue - - - -
TOTAL - - 9,926 9,926
GIRARD VET CLINIC
Property Taxes - 4,546 - (4,546)
Interest Income - - - -
Other Revenue - - - -
TOTAL - 4,546 - (4,546)
GEDDES ST APTS-PROCON
Property Taxes - - 1,195 1,195
Interest Income - - - -
Other Revenue - - - -
Grand Island Regular Meeting - 1/13/2010 Page 11 / 35
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF DECEMBER 2009
MONTH ENDED 2009 - 2010 2010 REMAINING
DECEMBER 2009 YEAR TO DATE BUDGET BALANCE
TOTAL - - 1,195 1,195
SOUTHEAST CROSSING
Property Taxes - - 8,866 8,866
Interest Income - - - -
Other Revenue - - - -
TOTAL - - 8,866 8,866
TOTAL REVENUE 11,788 144,321 725,783 581,462
Grand Island Regular Meeting - 1/13/2010 Page 12 / 35
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF DECEMBER 2009
MONTH ENDED 2009 - 2010 2010 REMAINING
DECEMBER 2009 YEAR TO DATE BUDGET BALANCE
EXPENSES
CRA
GENERAL OPERATIONS:
Auditing & Accounting - 417 7,500 7,083
Legal Services 240 495 10,000 9,505
Consulting Services - - 10,000 10,000
Contract Services 2,113 8,306 40,000 31,694
Printing & Binding - - 1,000 1,000
Other Professional Services - - 5,000 5,000
General Liability Insurance - - 250 250
Postage 14 14 200 186
Matching Grant - - - -
Legal Notices 14 486 800 314
Licenses & Fees - - - -
Travel & Training - - 1,000 1,000
Other Expenditures 50 50 500 450
Office Supplies - - 500 500
Supplies 3,975 3,975 300 (3,675)
Land - - 100,000 100,000
PROJECTS
Façade Improvement 145,540 145,540 539,950 394,410
South Locust - - - -
Alleyway Improvement - - - -
Other Projects - - 800,000 800,000
TOTAL CRA EXPENSES 151,946 159,283 1,517,000 1,357,717
GILI TRUST
Bond Principal 27,039 27,039 51,001 23,962
Bond Interest 5,851 5,851 14,779 8,928
Other Expenditures - - -
TOTAL GILI EXPENSES 32,890 32,890 65,780 32,890
CHERRY PARK LTD II
Bond Principal 21,025 21,025 39,729 18,704
Bond Interest 8,565 8,565 19,451 10,886
TOTAL CHERRY PARK EXPENSES 29,590 29,590 59,180 29,590
GENTLE DENTAL
Bond Principal 1,175 1,175 2,276 1,101
Bond Interest 926 926 1,926 1,000
TOTAL GENTLE DENTAL 2,101 2,101 4,202 2,101
PROCON TIF
Bond Principal 5,029 5,029 9,467 4,438
Bond Interest 4,552 4,552 9,695 5,143
TOTAL PROCON TIF 9,581 9,581 19,162 9,581
WALNUT HOUSING PROJECT
Bond Principal 18,559 18,559 39,151 20,592
Bond Interest 18,677 18,677 35,321 16,644
- - -
TOTAL WALNUT HOUSING 37,236 37,236 74,472 37,236
Grand Island Regular Meeting - 1/13/2010 Page 13 / 35
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF DECEMBER 2009
MONTH ENDED 2009 - 2010 2010 REMAINING
DECEMBER 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 - 4,546 4,940 394
Bond Interest - - - -
TOTAL GIRARD VET CLINIC - 4,546 4,940 394
GEDDES ST APTS - PROCON
Bond Principal - - 1,195 1,195
Bond Interest - - - -
TOTAL GEDDES ST APTS - PROCON - - 1,195 1,195
SOUTHEAST CROSSINGS
Bond Principal - - 8,866 8,866
Bond Interest - - - -
TOTAL SOUTHEAST CROSSINGS - - 8,866 8,866
TOTAL EXPENSES 263,344 275,227 1,759,783 1,474,495
Grand Island Regular Meeting - 1/13/2010 Page 14 / 35
Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2010
Regular Meeting
Item D1
Bills
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/13/2010 Page 15 / 35
13-Jan-10
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 $ 2,113.38
Accounting $ 375.00
Officenet Inc.
Postage $ 6.05
Lawnscape Snow removal $ 800.00
Grand Island Independent $ 25.26
Monthly & Redevelopment Plan Notices
Mayer, Burns, Koenig & Janulewicz $ 210.00
Total:
$ 3,529.69
Grand Island Regular Meeting - 1/13/2010 Page 16 / 35
Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2010
Regular Meeting
Item E1
Committed Projects
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/13/2010 Page 17 / 35
COMMITTED
PROJECTS
AMOUNT ESTIMATED DUE DATE
BID 6 (Landscaping)$6217.74 Spring 2010
BID 6 (Conduit)$55,000 Spring 2010
Paul Warshauer
(Masonic Temple)
$17,700 Spring 2010
2008 Wayside Horns $140,000 Spring 2010
2009 Wayside Horns $100,000 Spring 2010
The Dock Façade $57,250 Spring 2010
T.R. Merchen Facade
Tattered Book
$154,557 Spring 2010
“Bucket” TIF 11th &
Poplar Streets
$136,000 Starting in 2010
Ryder, Rosacker, McHue
and Huston Insurance
$58,644 Spring 2010
3235 S Locust $450,000 PENDING
Total Committed $1,175,368.74
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
December 31, 2009
Grand Island Regular Meeting - 1/13/2010 Page 18 / 35
Community Redevelopment
Authority (CRA)
Wednesday, January 13, 2010
Regular Meeting
Item H1
TIF
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/13/2010 Page 19 / 35
REDEVELOPMENT CONTRACT
This Redevelopment Contract is made and entered into as of the ___ day of ________,
2010, by and between the Community Redevelopment Authority of the City of Grand Island,
Nebraska (“Authority”) and John S. Schulte, and Dianne L. Schulte, Husband and Wife, and Tim
C. Plate, a Single Person, and Curt L. Ratliff, a Single Person (“Redeveloper”), whether one or
more.
WITNESSETH:
WHEREAS, Authority is a duly organized and existing community redevelopment
authority, a body politic and corporate under the law of the State of Nebraska, with lawful power
and authority to enter into this Redevelopment Contract, acting by and through its Chair or Vice
Chair and Members;
WHEREAS, the City of Grand Island, Nebraska (the “City”), in furtherance of the purposes
and pursuant to the provisions of Section 2 of Article VIII of the Nebraska Constitution and
Sections 18-2101 to 18-2154, Reissue Revised Statutes of Nebraska, 1999, as amended
(collectively the “Act”), has adopted a Redevelopment Plan for a blighted and substandard area
designated by the City; and
WHEREAS, Authority and Redeveloper desire to enter into this Redevelopment Contract
for acquisition and redevelopment of the redevelopment area;
NOW, THEREFORE, in consideration of the premises and the mutual covenants and
agreements herein set forth, Authority and Redeveloper do hereby covenant, agree and bind
themselves as follows:
ARTICLE I
DEFINITIONS AND INTREPRETATION
Section 1.01 Terms Defined in this Redevelopment Contract.
Unless the context otherwise requires, the following terms shall have the following
meanings for all purposes of this Redevelopment Contract, such definitions to be equally applicable
to both the singular and plural forms and masculine, feminine and neuter gender of any of the terms
defined:
“Act” means Section 12 of Article VIII of the Nebraska Constitution, Sections 18-2101
through 18-2154, Reissue Revised Statutes of Nebraska, 1943, as amended, and acts amendatory
thereof and supplemental thereto.
“City” means the City of Grand Island, Nebraska.
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“Completion” means substantial completion of the Project as described on the attached
Exhibit B.
“Governing Body” means the Mayor and City Council of the City, of Grand Island,
Nebraska.
“Premises” or “Redevelopment Area” means all that certain real property situated in the
City of Grand Island, Hall County, Nebraska, more particularly described as Exhibit A attached
hereto and incorporated herein by this reference.
“Project” means the improvements to the Premises, as further described in Exhibit B
attached hereto and incorporated herein by reference.
“Project Costs” means only costs or expenses incurred by Redeveloper to acquire, construct
and equip the Project pursuant to the Act as identified on Exhibit C.
“Redevelopment Contract” means this redevelopment contract between Authority and
Redeveloper dated _____________________, 20__, with respect to the Project.
“Redevelopment Plan” means the Redevelopment Plan for Area No. 2, prepared by the
Authority and approved by the City pursuant to the Act, as amended from time to time.
“Resolution” means the Resolution of the Authority dated ____________________, 20__,
as supplemented from time to time, approving this Redevelopment Contract.
“TIF” Revenues” means incremental ad valorem taxes generated by the Project which are
allocated to and paid to the Authority pursuant to the Act.
ARTICLE II
REPRESENTATIONS
Section 2.01 Representations by Authority.
Authority makes the following representations and findings;
(a) Authority is a duly organized and validly existing community redevelopment
authority under the Act.
(b) The Redevelopment Plan has been duly approved and adopted by the City pursuant
to Section 18-2116 and 18-2117 of the Act.
(c) The Authority deems it to be in the public interest and in furtherance of the purposes
of the Act to accept the proposal submitted by Redeveloper as specified herein.
(d) The Redevelopment Project will achieve the public purposes of the Act by, among
other things, increasing employment, improving public infrastructure, increasing the tax base, and
lessening conditions of blight and substandard in the Redevelopment Area.
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Section 2.02 Representations of Redeveloper.
The Redeveloper makes the following representations:
(a) The Redeveloper is an individual having the power to enter into this Redevelopment
Contract and perform all obligations contained herein and by proper action has been duly
authorized to execute and deliver this Redevelopment Contract.
(b) The execution and delivery of the Redevelopment Contract and the consummation
of the transactions therein contemplated will not conflict with or constitute a breach of or default
under any bond, debenture, note or other evidence of indebtedness or any contract, loan agreement
or lease to which Redeveloper is a party or by which it is bound, or result in the creation or
imposition of any lien, charge or encumbrance of any nature upon any of the property or assets of
the Redeveloper contrary to the terms of any instrument or agreement.
(c) There is no litigation pending or to the best of its knowledge threatened against
Redeveloper affecting its ability to carry out the acquisition, construction, equipping and furnishing
of the Project or the carrying into effect of this Redevelopment Contract or, except as disclosed in
writing to the Authority, as to any other matter materially affecting the ability of Redeveloper to
perform its obligations hereunder.
(d) Any financial statements of the Redeveloper delivered to the Authority prior to the
date hereof are true and correct in all respects and fairly present the financial condition of the
Redeveloper and the Project as of the dates thereof; no materially adverse change has occurred in
the financial condition reflected therein since the respective dates thereof; and no additional
borrowings have been made by the Redeveloper since the date thereof except in the ordinary course
of business, other than the borrowing contemplated hereby or borrowings disclosed to or approved
by the Authority.
ARTICLE III
OBLIGATIONS OF THE AUTHORITY
Section 3.01 Division of Taxes
In accordance with Section 18-2147 of the Act, the Authority hereby amends the
Redevelopment Plan of the Authority by providing that any ad valorem tax on real property in the
Project for the benefit of any public body be divided for a period of Fifteen years after the effective
date of this provision as provided in Section 18-2147 of the Act or until $55,575.00 is provided
through TIF, whichever occurs sooner. The effective date of this provision shall be January 1,
2011.
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Section 3.02 TIF Pledge of Revenues.
Authority shall not incur TIF indebtedness in the form of a principal amount bearing
interest but, rather, hereby pledges to the Redeveloper and its Lender that the Authority will pay,
semi-annually, the TIF Revenues to Redeveloper’s Lender as additional security for the payment of
the indebtedness incurred by Redeveloper for funding the Redevelopment Project.
Section 3.03 Payment.
Authority will pay to Redeveloper’s Lender the proceeds of the TIF Revenues
derived from Redeveloper’s semi-annual payment of ad valorem taxes on the real property included
in the Redevelopment Project. If such real estate taxes are not paid by Redeveloper, no TIF
Revenues will be generated to enable the Authority to pay TIF Revenues to the Redeveloper.
Section 3.04 Creation of Fund.
Authority will create a special fund to collect and hold the TIF Revenues. Such
special fund shall be used for no purpose other than to pay TIF Revenues pursuant to Sections 3.02
and 3.03 above.
ARTICLE IV
OBLIGATIONS OF REDEVELOPER
Section 4.01 Construction of Project; Insurance
(a) Redeveloper will complete the Project and install all equipment necessary to
operate the Project. Redeveloper shall be solely responsible for obtaining all permits and approvals
necessary to acquire, construct and equip the Project. Until construction of the Project has been
completed, Redeveloper shall make reports in such detail and at such times as may be reasonably
requested by the Authority as to the actual progress of Redeveloper with respect to construction of
the Project. Promptly after completion by the Redeveloper of the Project, the Redeveloper shall
furnish to the Authority a Certificate of Completion. The certification by the Redeveloper shall be
a conclusive determination of satisfaction of the agreements and covenants in this Redevelopment
Contract with respect to the obligations of Redeveloper and its successors and assigns to construct
the Project.
(b) Any contractor chosen by the Redeveloper or the Redeveloper itself shall be
required to obtain and keep in force at all times until completion of construction, policies of
insurance including coverage for contractors’ general liability and completed operations and a penal
bond as required by the Act. The Authority and the Redeveloper shall be named as additional
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insureds. Any contractor chosen by the Redeveloper or the Redeveloper itself, as an owner, shall be
required to purchase and maintain property insurance upon the Project to the full insurable value
thereof. This insurance shall insure against the perils of fire and extended coverage and shall include
“All Risk” insurance for physical loss or damage. The contractor or the Redeveloper, as the case
may be, shall furnish the Authority with a Certificate of Insurance evidencing policies as required
above. Such certificates shall state that the insurance companies shall give the Authority prior
written notice in the event of cancellation of or material change in any of the policies.
Sections 4.02 Reserved.
Section 4.03 Redeveloper to Operate Project.
Except as provided in Section 4.08 hereof, Redeveloper will operate the Project for
not less than until the final TIF revenue payment is made or 15 years from the effective date of the
provision specified in Section 3.01 of this Redevelopment Contract whichever occurs first.
Section 4.04 Authority Costs.
Redeveloper shall pay to Authority on the date of execution of this Redevelopment
Contract, the sum of $1,000.00 to reimburse the Authority for its fees incurred in connection with
this Redevelopment Contract.
Section 4.05 No Discrimination.
Redeveloper agrees and covenants for itself, its successors and assigns that as long
as this Redevelopment Contract is in effect, it will not discriminate against any person or group of
persons on account of race, sex, color, religion, national origin, ancestry, disability, marital status
or receipt of public assistance in connection with the Project. Redeveloper, for itself and its
successors and assigns, agrees that during the construction of the Project, Redeveloper will not
discriminate against any employee or applicant for employment because of race, religion, sex,
color, national origin, ancestry, disability, marital status or receipt of public assistance.
Redeveloper will comply with all applicable federal, state and local laws related to the Project.
Section 4.06 Pay Real Estate Taxes.
Redeveloper intends to create a taxable real property valuation of the Project of
$293,582.00 no later than as of December 31, 2010. During the term of this contract, Redeveloper
will (1) not protest a real estate property valuation on the Premises of $293,582.00 or less after
substantial completion or occupancy; (2) not convey the Premises or structures thereon to any
entity which would be exempt from the payment of real estate taxes or cause the nonpayment of
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such real estate taxes; and (3) cause all real estate taxes and assessments levied on the Premises to
be paid prior to the time such become delinquent.
Section 4.07 Reserved.
Section 4.08 No Assignment or Conveyance.
Redeveloper shall not convey, assign or transfer the Premises, the Project or any
interest therein prior to the termination of the 15 year period commencing on the effective date
specified in Section 3.01 hereof, without the prior written consent of the Authority, which shall not
be unreasonably withheld and which the Authority may make subject to any terms or conditions it
deems appropriate, except for the following conveyances, which shall be permitted without consent
of Authority:
(a) any conveyance as security for indebtedness (i) previously incurred by Redeveloper
or incurred by Redeveloper after the effective date for Project Costs or any subsequent physical
improvements to the premises with the outstanding principal amount of all such indebtedness
(whether incurred prior to or after the effective date of this Agreement) secured by the Premises (ii)
any additional or subsequent conveyance as security for indebtedness incurred by Redeveloper for
Project Costs or any subsequent physical improvements to the premises provided that any such
conveyance shall be subject to the obligations of the Redeveloper pursuant to this Redevelopment
Contract;
(b) if Redeveloper is an individual, any conveyance to Redeveloper’s spouse, or to
Redeveloper’s spouse or issue pursuant to bequest, devise or the laws of intestacy upon the death of
Redeveloper;
(c) any conveyance to a limited partnership or limited liability company so long as
Redeveloper is general partner or manager of the entity.
ARTICLE V
FINANCING REDEVELOPMENT PROJECT; ENCUMBRANCES
Section 5.01 Financing.
Redeveloper shall pay all Project Costs, and prior to commencing Redeveloper shall
provide Authority with evidence satisfactory to the Authority that private funds have been
committed to the Redevelopment Project in amounts sufficient to complete the Redevelopment
Project.
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Section 5.02 Encumbrances.
Redeveloper shall not create any lien, encumbrance or mortgage on the Project or
the Premises except encumbrances which secure indebtedness incurred to acquire, construct and
equip the Project or for any other physical improvements to the Premises.
ARTICLE VI
DEFAULT, REMEDIES; INDEMNIFICATION
Section 6.01 General Remedies of Authority and Redeveloper.
Subject to the further provisions of this Article VI, in the event of any failure to
perform or breach of this Redevelopment Contract or any of its terms or conditions, by either party
hereto or any successor party, such party, or successor, shall, upon written notice from the other,
proceed immediately to commence such actions as may be reasonably designed to cure or remedy
such failure to perform or breach which cure or remedy shall be accomplished within a reasonable
time by the diligent pursuit of corrective action. In case such action is not taken, or diligently
pursued, or the failure to perform or breach shall not be cured or remedied within a reasonable
time, this Redevelopment Contract shall be in default and the aggrieved party may institute such
proceedings as may be necessary or desirable to enforce its rights under this Redevelopment
Contract, including, but not limited to, proceedings to compel specific performance by the party
failing to perform or in breach of its obligations.
Section 6.02 Additional Remedies of Authority.
In the event that:
(a) The Redeveloper, or successor in interest, shall fail to complete the
construction of the Project on or before December 31, 2010, or shall abandon construction work for
any period of 90 days;
(b) The Redeveloper, or successor in interest, shall fail to pay real estate taxes or
assessments on the Premises or any part thereof when due, and such taxes or assessments shall not
have been paid, or provisions satisfactory to the Authority made for such payment within 30 days
following written notice form Authority; or
(c) There is, in violation of Section 4.08 of this Redevelopment Contract,
transfer of the Premises or any part thereof, and such failure or action by the Redeveloper has not
been cured within 30 days following written notice from Authority, then the Redeveloper shall be
in default of this Redevelopment Contract.
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In the event of such failure to perform, breach or default occurs and is not cured in
the period herein provided, the parties agree that the damages caused to the Authority would be
difficult to determine with certainty and that a reasonable estimation of the amount of damages that
could be incurred is the amount of the unpaid TIF payment remaining pursuant to Section 3.03 of
this Redevelopment Contract plus interest as provided herein (the “Liquidated Damages Amount”).
The Liquidated Damages Amount shall be paid by Redeveloper to Authority within 30 days of
demand from Authority.
Interest shall accrue on the Liquidated Damages Amount at the rate of one percent
(1%) over the prime rate as published and modified in the Wall Street Journal from time to time
and interest shall commence from the date that the Authority gives notice to the Redeveloper
demanding payment.
Payment of the Liquidated Damages Amount shall not relieve Redeveloper of its
obligation to pay real estate taxes or assessments with respect to the Project.
Section 6.03 Remedies in the Event of Other Redeveloper Defaults.
In the event the Redeveloper fails to perform any other provisions of this
Redevelopment Contract (other than those specific provisions contained in Section 6.02), the
Redeveloper shall be in default. In such an instance, the Authority may seek to enforce the terms
of this Redevelopment Contract or exercise any other remedies that may be provided in this
Redevelopment Contract or by applicable law; provided, however, that the default covered by this
Section shall not give rise to a right of rescission or termination of this Redevelopment Contract,
and shall not be covered by the Liquidated Damages Amount.
Section 6.04 Enforced Delay Beyond Party’s Control.
For the purposes of any of the provisions of this Redevelopment Contract, neither
the Authority nor the Redeveloper, as the case may be, nor any successor in interest, shall be
considered in breach of or default in its obligations with respect to the conveyance or preparation of
the Premises for redevelopment, or the beginning and completion of the construction of the Project,
or progress in respect thereto, in the event of enforced delay in the performance of such obligations
due to unforeseeable causes beyond its control and without its fault or negligence, including, but
not restricted to, acts of God, or of the public enemy, acts of the Government, acts of the other
party, fires, flood, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually
severe weather or delays in subcontractors due to such causes; it being the purpose and intent of
this provision that in the event of this occurrence of any such enforced delay, the time or times for
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performance of the obligations of the Authority or of the Redeveloper with respect to construction
of the Project, as the case may be, shall be extended for the period of the enforced delay: Provided,
that the party seeking the benefit of the provisions of this section shall, within thirty (30) days after
the beginning of any such enforced delay, have first notified the other party thereof in writing, and
of the cause or causes thereof and requested an extension for the period of the enforced delay.
Section 6.05 Limitation of Liability; Indemnification.
Notwithstanding anything in this Article VI or this Redevelopment Contract to the
contrary, neither Authority, City, nor their officers, directors, employees, agents or their governing
bodies shall have any pecuniary obligation or monetary liability under this Redevelopment
Contract. The obligation of the Authority shall be limited solely to the TIF Revenues pledged as
security for the Redeveloper’s financing. Specifically, but without limitation, neither City nor
Authority shall be liable for any costs, liabilities, actions, demands, or damages for failure of any
representations, warranties or obligations hereunder. The Redeveloper releases the Authority and
the City from, agrees that the Authority and the City shall not be liable for, and agrees to indemnify
and hold the Authority and the City harmless from any liability for any loss or damage to property
or any injury to or death of any persons that may be occasioned by any cause whatsoever pertaining
to the Project.
The Redeveloper will indemnify and hold each of the Authority and the City and
their directors, officers, agents, employees and members of their governing bodies free and
harmless from any loss, claim, damage, demand, tax, penalty, liability disbursement, expense,
including litigation expenses, attorneys’ fees and expenses, or court costs arising out of any damage
or injury, actual or claimed, of whatsoever kind or character, to property (including loss of use
thereof) or persons, occurring or allegedly occurring in, on or about the Project during the term of
this Redevelopment Contract or arising out of any action or inaction of Redeveloper, injury, actual
or claimed, of whatsoever kind or character, to property (including loss of use thereof) or persons,
occurring or allegedly occurring in, on or about the Project during the term of this Redevelopment
Contract or arising out of any action or inaction of Redeveloper, whether or not related to the
Project, or resulting from or in any way related to the enforcement of this Redevelopment Contract
or any other cause pertaining to the Project.
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ARTICLE VII
MISCELLANEOUS
Section 7.01 Notice Recording.
A notice memorandum of this Redevelopment Contract shall be recorded with the
Register of Deeds of Hall County, Nebraska.
Section 7.02 Governing Law.
This Redevelopment Contract shall be governed by the laws of the State of
Nebraska, including but not limited to the Act.
Section 7.03 Binding Effect; Amendment.
This Redevelopment Contact shall be binding on the parties hereto and their
respective successors and assigns. This Redevelopment Contract shall run with the Premises. The
Redevelopment Contract shall not be amended except by a writing signed by the party to be bound.
IN WITNESS WHEREOF, Authority and Redeveloper have signed this Redevelopment
Contract as of the date and year first above written.
COMMUINITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
ATTEST: GRAND ISLAND, NEBRASKA
___________________________ By:_______________________________
Secretary Its Chair
REDEVOPER
_______________________________
John S. Schulte
_______________________________
Dianne L. Schulte
_______________________________
Tim C. Plate
_______________________________
Curt L. Ratliff,
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STATE OF NEBRASKA )
)ss.
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of
___________________, 20__, by Barry G. Sandstrom and Chad Nabity, Chair and Secretary,
respectively, of the Community Redevelopment Authority of the City of Grand Island, Nebraska,
on behalf of the Authority.
(SEAL) ______________________________
Notary Public
STATE OF NEBRASKA )
)ss.
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of
______________________, 20__, by John S. Schulte, for the purposes therein stated.
(SEAL) ______________________________
Notary Public
STATE OF NEBRASKA )
)ss.
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of
______________________, 20__, by Dianne L. Schulte, for the purposes therein stated.
(SEAL) ______________________________
Notary Public
STATE OF NEBRASKA )
)ss.
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of
______________________, 20__, by Tim C. Plate, for the purposes therein stated.
(SEAL) ______________________________
Notary Public
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STATE OF NEBRASKA )
)ss.
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of
______________________, 20__, by Curt L. Ratliff, for the purposes therein stated.
(SEAL) ______________________________
Notary Public
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EXHIBIT A
DESCRIPTION OF PREMISES
This property is located at the corner of Anna Street and Lincoln Avenue (The W ½ of the W ½ of
Block 16 of Windolph’s Addition to the City of Grand Island). The property address is 703 S.
Lincoln Avenue in Grand Island Nebraska.
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EXHIBIT B
DESCRIPTION OF PROJECT
The developer will acquire the property and demolish the existing 100+ year old single
family structure currently occupying the lot.
The developer is proposing to a 4 unit apartment building on this lot. The developer is
proposing to landscape the yards and include underground sprinkling. Each unit will have
2 bedrooms (980 square feet). The total square footage of the building will be 3,922
square feet. The improvements will be constructed at 703 S. Lincoln Avenue in Grand
Island, Nebraska.
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EXHIBIT C
(Estimated)
1. Acquisition Costs:
A. Land $25,000.00
B. Building - Included in Land Cost $
2. Construction Costs:
A. Demolition: $8,000.00
B. Renovation or Building Costs: $232,165.00
C. On-Site Improvements: $16,575.00
D. Off-Site Improvements: N/A
3. Soft Costs:
A. Architectural & Engineering Fees: $
B. Financing: $5,000.00
C. Legal/Developer/Audit Fees: $1,000.00
D. Contingency Reserves: $10,000.00
E. Other (Building Permits) $1,500.000
TOTAL $299,240.00
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