09-21-2011 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, September 21, 2011
Regular Meeting Packet
Board Members:
Michelle Fitzke
Tom Gdowski
Barry Sandstrom
Sue Pirnie
Glen Murray
4:00 PM
Grand Island City Hall
100 E 1st Street
Grand Island Regular Meeting - 9/21/2011 Page 1 / 74
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 - 9/21/2011 Page 2 / 74
Community Redevelopment
Authority (CRA)
Wednesday, September 21, 2011
Regular Meeting
Item A1
Agenda
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 9/21/2011 Page 3 / 74
AGENDA
Wednesday September 21, 2011
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 July 27, 2011 Meeting.
3.Approval of Financial Reports.
4.Approval of Bills.
5.Consideration of Intent to enter into a Redevelopment contract for 1822 W 13th St., with
Arnold Wenn.
6.Consideration of Intent to enter into a Redevelopment contract for 213 N Ruby, with TOKEN,
LLC (Todd and Kelly Enck).
7.Review of Committed Projects and CRA Properties.
8.Discussion concerning Purchase/Sale of Real Estate of property.
9.Approve Resolution or Resolutions to Purchase/Sell Real Estate.
10.Directors Report
11.Adjournment
Next Meeting October 12, 2011
The CRA may go into closed session for any agenda item as allowed by state law.
Grand Island Regular Meeting - 9/21/2011 Page 4 / 74
Community Redevelopment
Authority (CRA)
Wednesday, September 21, 2011
Regular Meeting
Item B1
Meeting Minutes
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 9/21/2011 Page 5 / 74
OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
July 27, 2011
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 July 27, 2011 at City Hall 100 E First Street. Notice of the meeting was given
in the July 20, 2011 Grand Island Independent.
1.CALL TO ORDER. Barry Sandstrom called the meeting to order at 4:00
p.m. The following members were present: Tom Gdowski, Glen Murray,
Michelle Fitzke and Sue Pirnie. Also present were; Director, Chad Nabity;
Secretary, Rose Woods and Legal Council Duane Burns, Council Liaison
Randy Gard, City Administrator/Finance Director Mary Lou Brown, Arnold
Wenn, Todd Enck and Thor Larson.
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
June 29, 2011 meeting was made by Murray. Motion was seconded by
Gdowski. Upon roll call vote, all present voted aye. Motion carried
unanimously.
3.APPROVAL OF FINANCIAL REPORTS. The financial reports for the
period of June 1, 2011 through June 30, 2011. Motion to was made by
Gdowski and seconded by Pirnie 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 Pirnie and seconded by Fitzke to approve the bills in the
amount of $4310.51. Upon roll call vote all present voted aye. Motion
carried unanimously to approve the payment of bills totaling $4310.51.
5. CONSIDERATION OF RESOLUTION 121. This is a consideration of
Resolution 121, to forward a redevelopment plan amendment to the Hall
County Regional Planning Commission for an area on 13th and Huston
Street, in Grand Island. Arnold Wenn explained his plans to demolish a
house on 1822 W 13th Street and would build back a duplex with a
basement. Motion was made by Pirnie and seconded by Murray to
approve Resolution 121 to forward the redevelopment plan to Hall County
Grand Island Regular Meeting - 9/21/2011 Page 6 / 74
Regional Planning. Upon roll call vote all present voted aye. Motion
carried unanimously to approve Resolution 121.
5.CONSIDERATION OF RESOLUTION 124. The consideration to approve
Resolution 124 sending notice of intent to enter into a Redevelopment
contract with Arnold Wenn, for redevelopment of an area within the city
limits of the City of Grand Island, an area on 13th Street Huston. Motion
was made by Murray and seconded by Pirnie to approve Resolution 124 to
forward notice of intent to enter into a Redevelopment contract with Arnold
Wekk to City Council. Upon roll call vote all present voted aye. Motion
carried unanimously to approve Resolution 124.
6.CONSIDERATION OF RESOLUTION 122. This is a consideration of
Resolution 122, to forward a redevelopment plan amendment to the Hall
County Regional Planning Commission for 213 N Ruby Street, in Grand
Island. Todd Enck explained he planned on demolishing a house and
rebuild a duplex. Motion was made by Pirnie and seconded by Fitzke to
approve Resolution 122 to forward the redevelopment plan to Hall County
Regional Planning. Upon roll call vote all present voted aye. Motion
carried unanimously to approve Resolution 122.
7.CONSIDERATION OF RESOLUTION 125. The consideration to approve
Resolution 125 sending notice of intent to enter into a Redevelopment
contract with TOKEN, LLC (Todd & Kelly Enck) for redevelopment of an
area within the city limits of the City of Grand Island, 213 N Ruby Street.
Motion was made by Pirnie and seconded by Gdowski to approve
Resolution 125 to forward notice of intent to enter into a Redevelopment
contract with TOKEN, LLC, to City Council. Upon roll call vote all present
voted aye. Motion carried unanimously to approve Resolution 125.
6. REVIEW OF 2011-2012 BUDGET.
Nabity reviewed the new proposed budget with the board. City Council
has directed the CRA to raise their levy to help with the Lincoln Pool. It's
expected that the value of the redevelopment district will not be able to
cover the full cost of the debt, which is why the CRA was asked to raise
its current levy of 1.7 cents per $100 of valuation by 0.8 cent to the
maximum allowed CRA levy of 2.6 cents per $100 of property valuation.
Nabity said he will work to define boundaries of a redevelopment area
surrounding the pool. That area will support the tax-increment financing
bond that will be used to pay for the pool. Any increase in property
valuation in that defined redevelopment area will have the property taxes
on that new value used to pay off the pool.
CRA Director Chad Nabity told the CRA Wednesday that even if the CRA
objected to raising the levy to pay for the pool, the city council had final
say and appeared ready to raise the CRA levy anyway.
Grand Island Regular Meeting - 9/21/2011 Page 7 / 74
Nabity said he will pick the redevelopment area very carefully and will
steer clear of properties that may make good redevelopment projects on
their own. Any projects included in the pool redevelopment area will be
ineligible for CRA redevelopment help in any way until the pool project is
fully paid -- a timeline that is expected to take 10 to 15 years.
Gdowski said the pool project appeared poised to happen through the
council, and he praised the use of CRA funds. "We need to support
aquatics at some level," he said. "It's a reasonable way to fund the pool.
YMCA Executive Director Thor Larson also attended the Wednesday
CRA meeting and pledged assistance from his organization, which has
a deep-water pool that offers swim lessons. Nabity said including the
Lincoln Pool funding in the CRA budget moves the project forward, but
doesn't preclude partnerships from forming in the future. Murray made
a motion to approve Resolution 123 for the 2011-2012 CRA budget to
include the increase of the tax levy in support of funding Lincoln Pool
and seconded by Gdowski. Upon roll call vote Murray, Fitzke and
Gdowski voted aye. Sandstrom and Pirnie voted no. Motion carried 3-2
to approve the 2011-2012 budget.
7. REVIEW OF COMMITTED PROJECTS & CRA PROPERTIES.
Nabity briefly reviewed the Committed Projects. The first phase of the
Wayside horns will be completed this fall. The Grand Island Christian
School demo is complete. The Façade is nearing completion as well.
Nabity heard from Chris Meyer they are working on the inside of the
building as it’s too hot to work outside. The Grand Façade is still moving
forward, they just received there grant from DED. The Wilmar Realty LLC
is moving forward as well. They could be looking at a sooner completion
date. The downtown BID is still moving forward as well they just got
Council approval on Tuesday night for their POW Memorial.
8. DISCUSSION CONCERNING PURCHASE/SALE OF REAL ESTATE.
There was discussion about placing legal notices for RFP’s for the CRA’s
remaining two lots. Also it was suggested to use the Chamber of
Commerce and the Economic Development partner site to let others know
of the land available for purchase from the CRA.
9. APPROVE RESOLUTION OR RESOLUTIONS TO PURCHASE/SELL
PROPERTY.
10. DIRECTORS REPORT.
11. ADJOURNMENT.
Sandstrom adjourned the meeting at 4:58 p.m.
Grand Island Regular Meeting - 9/21/2011 Page 8 / 74
The next meeting is scheduled for August 24, 2011 at 4:00 p.m.
Respectfully submitted
Chad Nabity
Director
Grand Island Regular Meeting - 9/21/2011 Page 9 / 74
Community Redevelopment
Authority (CRA)
Wednesday, September 21, 2011
Regular Meeting
Item C1
Financial Reports
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 9/21/2011 Page 10 / 74
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF AUGUST 2011
MONTH ENDED 2010 - 2011 2011 REMAINING
AUGUST 2011 YEAR TO DATE BUDGET BALANCE
CONSOLIDATED
Beginning Cash 1,029,369 985,902 985,902
REVENUE:
Property Taxes 8,272 616,318 653,977 37,659
Loan Proceeds - - - -
Interest Income 454 2,527 12,940 10,413
Land Sales - 29,906 50,000 20,094
Other Revenue - 19,973 - (19,973)
TOTAL REVENUE 8,726 668,725 716,917 48,192
TOTAL RESOURCES 1,038,096 1,654,626 1,702,819 48,192
EXPENSES
Auditing & Accounting - 4,975 7,500 2,525
Legal Services - 2,134 10,000 7,866
Consulting Services - - 10,000 10,000
Contract Services - 72,872 40,000 (32,872)
Printing & Binding - - 1,000 1,000
Other Professional Services - 6,393 5,000 (1,393)
General Liability Insurance - - 250 250
Postage - 682 200 (482)
Matching Grant - - - -
Legal Notices - 479 800 322
Licenses & Fees - - - -
Travel & Training - - 1,000 1,000
Other Expenditures - - 500 500
Office Supplies - 746 500 (246)
Supplies - - 300 300
Land - 2,002 100,000 97,998
Façade Improvement - 233,155 539,950 306,795
South Locust - - - -
Alleyway Improvement - - - -
Other Projects - - 800,000 800,000
Bond Principal - 229,924 161,611 (68,313)
Bond Interest - 63,170 81,172 18,002
Interest Expense - - - -
- - -
TOTAL EXPENSES - 616,531 1,759,783 1,143,252
INCREASE(DECREASE) IN CASH 8,726 52,194 (56,965)
ENDING CASH 1,038,096 1,038,096 928,937
LESS COMMITMENTS 565,900 705,900
AVAILABLE CASH 472,196 332,196 928,937 -
CHECKING 685,663
INVESTMENTS 352,433
Total Cash 1,038,096
Grand Island Regular Meeting - 9/21/2011 Page 11 / 74
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF AUGUST 2011
MONTH ENDED 2010 - 2011 2011 REMAINING
AUGUST 2011 YEAR TO DATE BUDGET BALANCE
CRA
GENERAL OPERATIONS:
Property Taxes 8,272 329,876 425,000 95,124
Interest Income 442 2,324 8,000 5,676
Land Sales 29,906 50,000 20,094
Other Revenue & Motor Vehicle Tax 7,830 - (7,830)
TOTAL 8,713 369,936 483,000 113,064
GILI TRUST
Property Taxes 66,223 65,780 (443)
Interest Income 12 - (12)
Other Revenue - - -
TOTAL - 66,235 65,780 (455)
CHERRY PARK LTD II
Property Taxes 63,374 59,180 (4,194)
Interest Income 13 173 - (173)
Other Revenue - - -
TOTAL 13 63,547 59,180 (4,367)
GENTLE DENTAL
Property Taxes 4,512 4,202 (310)
Interest Income 2 - (2)
Other Revenue - - -
TOTAL - 4,514 4,202 (312)
PROCON TIF
Property Taxes 18,163 19,162 999
Interest Income 0 4 - (4)
Other Revenue 1,555 - (1,555)
TOTAL 0 19,722 19,162 (560)
WALNUT HOUSING PROJECT
Property Taxes 63,871 74,472 10,601
Interest Income 13 - (13)
Other Revenue 10,588 - (10,588)
TOTAL - 74,471 74,472 1
BRUNS PET GROOMING
Property Taxes 6,727 4,986 (1,741)
Interest Income - 4,940 4,940
Other Revenue - - -
TOTAL - 6,727 9,926 3,199
GIRARD VET CLINIC
Property Taxes 350 - (350)
Interest Income - - -
Other Revenue - - -
TOTAL - 350 - (350)
GEDDES ST APTS-PROCON
Property Taxes 29,185 1,195 (27,990)
Interest Income - - -
Other Revenue - - -
Grand Island Regular Meeting - 9/21/2011 Page 12 / 74
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF AUGUST 2011
MONTH ENDED 2010 - 2011 2011 REMAINING
AUGUST 2011 YEAR TO DATE BUDGET BALANCE
TOTAL - 29,185 1,195 (27,990)
SOUTHEAST CROSSING
Property Taxes 7,252 8,866 1,614
Interest Income - - -
Other Revenue - - -
TOTAL - 7,252 8,866 1,614
CASEY'S @ FIVE POINTS
Property Taxes 4,429 - (4,429)
Interest Income - - -
Other Revenue - - -
TOTAL - 4,429 - (4,429)
SOUTH POINTE HOTEL PROJECT
Property Taxes 21,514 - (21,514)
Interest Income - - -
Other Revenue - - -
TOTAL - 21,514 - (21,514)
TODD ENCK PROJECT
Property Taxes 841 - (841)
Interest Income - - -
Other Revenue - - -
TOTAL - 841 - (841)
SKAGWAY
Property Taxes - - -
Interest Income - - -
Other Revenue - - -
TOTAL - - - -
TOTAL REVENUE 8,726 668,725 725,783 57,058
Grand Island Regular Meeting - 9/21/2011 Page 13 / 74
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF AUGUST 2011
MONTH ENDED 2010 - 2011 2011 REMAINING
AUGUST 2011 YEAR TO DATE BUDGET BALANCE
EXPENSES
CRA
GENERAL OPERATIONS:
Auditing & Accounting 3,975 7,500 3,525
Legal Services 2,134 10,000 7,866
Consulting Services - 10,000 10,000
Contract Services 34,743 40,000 5,257
Printing & Binding - 1,000 1,000
Other Professional Services 6,393 5,000 (1,393)
General Liability Insurance - 250 250
Postage 682 200 (482)
Matching Grant - - -
Legal Notices 479 800 322
Licenses & Fees - - -
Travel & Training - 1,000 1,000
Other Expenditures - 500 500
Office Supplies 746 500 (246)
Supplies - 300 300
Land 2,002 100,000 97,998
PROJECTS
Façade Improvement 233,155 539,950 306,795
South Locust - - -
Alleyway Improvement - - -
Other Projects - 800,000 800,000
TOTAL CRA EXPENSES - 284,307 1,517,000 1,232,693
GILI TRUST
Bond Principal 59,654 51,001 (8,653)
Bond Interest 6,126 14,779 8,653
Other Expenditures - - -
TOTAL GILI EXPENSES - 65,780 65,780 0
CHERRY PARK LTD II
Bond Principal 46,245 39,729 (6,516)
Bond Interest 12,935 19,451 6,516
TOTAL CHERRY PARK EXPENSES - 59,180 59,180 -
GENTLE DENTAL
Bond Principal 2,566 2,276 (290)
Bond Interest 1,636 1,926 290
TOTAL GENTLE DENTAL - 4,202 4,202 -
PROCON TIF
Bond Principal 10,829 9,467 (1,362)
Bond Interest 8,333 9,695 1,362
TOTAL PROCON TIF - 19,162 19,162 0
WALNUT HOUSING PROJECT
Bond Principal 40,331 39,151 (1,180)
Bond Interest 34,141 35,321 1,180
- - -
TOTAL WALNUT HOUSING - 74,472 74,472 0
Grand Island Regular Meeting - 9/21/2011 Page 14 / 74
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF AUGUST 2011
MONTH ENDED 2010 - 2011 2011 REMAINING
AUGUST 2011 YEAR TO DATE BUDGET BALANCE
BRUNS PET GROOMING
Bond Principal 6,727 4,986 (1,741)
Bond Interest - - -
TOTAL BRUNS PET GROOMING - 6,727 4,986 (1,741)
GIRARD VET CLINIC
Bond Principal 350 4,940 4,590
Bond Interest - - -
TOTAL GIRARD VET CLINIC - 350 4,940 4,590
GEDDES ST APTS - PROCON
Bond Principal 29,185 1,195 (27,990)
Bond Interest - - -
TOTAL GEDDES ST APTS - PROCON - 29,185 1,195 (27,990)
SOUTHEAST CROSSINGS
Bond Principal 7,252 8,866 1,614
Bond Interest - - -
TOTAL SOUTHEAST CROSSINGS - 7,252 8,866 1,614
POPLAR STREET WATER
Bond Principal - - -
Bond Interest - - -
Auditing & Accounting - - -
Contract Services 38,129 - (38,129)
TOTAL POPLAR STREET WATER - 38,129 - (38,129)
CASEY'S @ FIVE POINTS
Bond Principal 4,429 - (4,429)
Bond Interest - - -
TOTAL CASEY'S @ FIVE POINTS - 4,429 - (4,429)
SOUTH POINTE HOTEL PROJECT
Bond Principal 21,514 - (21,514)
Bond Interest - - -
TOTAL SOUTH POINTE HOTEL PROJECT - 21,514 - (21,514)
TODD ENCK PROJECT
Bond Principal 841 - (841)
Bond Interest - - -
TOTAL CASEY'S @ FIVE POINTS - 841 - (841)
SKAGWAY
Bond Principal - - -
Bond Interest - - -
Auditing & Accounting 1,000 - (1,000)
TOTAL SKAGWAY - 1,000 - (1,000)
TOTAL EXPENSES - 616,531 1,759,783 1,143,252
Grand Island Regular Meeting - 9/21/2011 Page 15 / 74
Community Redevelopment
Authority (CRA)
Wednesday, September 21, 2011
Regular Meeting
Item D1
Bills
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 9/21/2011 Page 16 / 74
21-Sep-11
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
Accounting July, Aug., Sept.$ 5,166.71
Officenet Inc.
Postage $ 53.71
Lawnscape mowing/shredding July $ 606.00
Grand Island Independent $ 402.71
GI Christian School Demo $ 129,000.00
GI Christian School Façade $ 80,000.00
Mayer, Burns, Koenig & Janulewicz Legal Services $ 255.00
Toms Tree Service $ 150.00
Total:
$ 215,634.13
Grand Island Regular Meeting - 9/21/2011 Page 17 / 74
Community Redevelopment
Authority (CRA)
Wednesday, September 21, 2011
Regular Meeting
Item E1
Committed Projects
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 9/21/2011 Page 18 / 74
COMMITTED PROJECTS TOTAL AMOUNT 2011
FISCAL YR
2012 FISCAL
YR
2013
FISCAL YR
ESTIMATED
COMP
2010 Wayside Horns
(Oak, Pine, Elm & Walnut)
$140,000 $140,000 Winter 2011
2012 Wayside Horns
(Custer/Blaine)
$100,000 $100,000
Grand Island Christian
School (Demo)
$129,000 $129,000 Fall 2011
Grand Island Christian
School (Façade)
$80,000 $80,000 Fall 2011
123 W 3 rd St.$59,400 $59,400 Winter 2011
The Grand Façade
$300,000 ($100 over 3
fiscal yrs)
$300,000 $100,000 $100,000 $100,000 Spring 2012
Wilmar Realty LLC
$300,000 ($100 over 3
fiscal yrs)
$300,000 $100,000 $100,000 $100,000 Fall 2011
Downtown BID $97,500 $97,500 Fall 2011
Total Committed $1,205,900.00 $565,900.00 $440,000.00 $200,000.00
CRA PROPERTIES
Address Purchase Price Purchase
Date
Demo Cost Status
408 E 2 nd St $4,869 11/11/2005 $7,500 Surplus
3235 S Locust $450,000 4/2/2010 $39,764 Surplus
August 31, 2011
Grand Island Regular Meeting - 9/21/2011 Page 19 / 74
Community Redevelopment
Authority (CRA)
Wednesday, September 21, 2011
Regular Meeting
Item I1
Redevelopment Plan
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 9/21/2011 Page 20 / 74
Redevelopment Plan Amendment
Grand Island CRA Area #6
July 2011
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area #6 with in the city, pursuant to
the Nebraska Community Development Law (the “Act”) and provide for the
financing of a specific infrastructure related project in Area #6.
Executive Summary:
Project Description
THE DEMOLITION OF THE EXISTING SINGLE FAMILY HOUSE AT 13TH AND
HUSTON STREETS AND THE SUBSEQUENT SITE WORK, UTILITY,
ENGINEERING, LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY
FOR REBUILDING A DUPLEX AT THIS LOCATION.
The use of Tax Increment Financing to aid in demolition of existing structures along with
costs associated with redevelopment of this site with a new duplex. The use of Tax
Increment Finance makes it affordable to provide additional housing in Grand Island at
this location at a contract rent that is consistent with the neighborhood. This project
would not be possible in an affordable manner without the use of TIF.
The site is owned by the developer. All site work, demolition and utilities will be paid
for by the developer. The developer is responsible for and has provided evidence that
they can secure adequate debt financing to cover the costs associated with the acquisition,
site work and remodeling. The Grand Island Community Redevelopment Authority
(CRA) intends to pledge the ad valorem taxes generated over the 15 year period
beginning January 1, 2012 towards the allowable costs and associated financing for the
acquisition and site work.
TAX INCREMENT FINANCING TO PAY FOR THE ACQUISTION OF THE
PROPERTY AND RELATED SITE WORK WILL COME FROM THE
FOLLOWING REAL PROPERTY:
Property Description (the “Redevelopment Project Area”)
This property is located at the northeast corner of 13th and Huston Streets in northeast
Grand Island. The attached map identifies the subject property and the surrounding land
uses:
Legal Descriptions Lot 267 and Lot 268 of West Lawn Addition to the
City of Grand Island.
Grand Island Regular Meeting - 9/21/2011 Page 21 / 74
Grand Island Regular Meeting - 9/21/2011 Page 22 / 74
The tax increment will be captured for the tax years the payments for which become
delinquent in years 2014 through 2028 inclusive.
The real property ad valorem taxes on the current valuation will continue to be paid
to the normal taxing entities. The increase will come from development of a duplex
housing unit at this location.
Statutory Pledge of Taxes.
Pursuant to Section 18-2147 of the Act, any ad valorem tax levied upon real property in
the Redevelopment Project Area shall be divided, for the period not to exceed 15 years
after the effective date of the provision, which effective date shall be January 1, 2013.
a. That portion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the redevelopment project valuation shall
be paid into the funds, of each such public body in the same proportion as all other taxes
collected by or for the bodies; and
b. That portion of the ad valorem tax on real property in the
redevelopment project in excess of such amount, if any, shall be allocated to and, when
collected, paid into a special fund of the Authority to pay the principal of; the interest on,
and any premiums due in connection with the bonds, loans, notes, or advances on money
to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such
Authority for financing or refinancing, in whole or in part, a redevelopment project.
When such bonds, loans, notes, advances of money, or indebtedness including interest
and premium due have been paid, the Authority shall so notify the County Assessor and
County Treasurer and all ad valorem taxes upon real property in such redevelopment
project shall be paid into the funds of the respective public bodies.
Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged
to the repayment of loans or advances of money, or the incurring of any indebtedness,
whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in
whole or in part, the redevelopment project, including the payment of the principal of,
premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness.
Grand Island Regular Meeting - 9/21/2011 Page 23 / 74
Redevelopment Plan Amendment Complies with the Act:
The Community Development Law requires that a Redevelopment Plan and Project
consider and comply with a number of requirements. This Plan Amendment meets the
statutory qualifications as set forth below.
1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on October 9, 2007.[§18-2109] Such
declaration was made after a public hearing with full compliance with the public
notice requirements of §18-2115 of the Act.
2. Conformation to the General Plan for the Municipality as a whole. [§18-2103 (13)
(a) and §18-2110]
Grand Island adopted a Comprehensive Plan on July 13, 2004. This redevelopment plan
amendment and project are consistent with the Comprehensive Plan, in that no changes in
the Comprehensive Plan elements are intended. This plan merely provides funding for
the developer to acquire the necessary property and provide the necessary site work for
the construction of a permitted use on this property.
3. The Redevelopment Plan must be sufficiently complete to address the following
items: [§18-2103(13) (b)]
a. Land Acquisition:
The Redevelopment Plan for Area #6 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority.
b. Demolition and Removal of Structures:
The project to be implemented with this plan does call for the demolition and removal of
an existing substandard housing unit at this location. The structure to be demolished is a
vacant substandard residential structure owned by the applicant.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. The site is
planned for mixed-used commercial development. [§18-2103(b) and §18-2111] The
attached map also is an accurate site plan of the area after redevelopment. [§18-2111(5)]
Grand Island Regular Meeting - 9/21/2011 Page 24 / 74
City of Grand Island Future Land Use Map
Grand Island Regular Meeting - 9/21/2011 Page 25 / 74
d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned R2-Low Density Residential zone. No zoning changes are anticipated
with this project. No changes are anticipated in street layouts or grades. No changes are
anticipated in building codes or ordinances. Nor are any other planning changes
contemplated. [§18-2103(b) and §18-2111]
e. Site Coverage and Intensity of Use
The developer is proposing remove the existing structures from the property. The R2
zoning district allow 1 dwelling unit per 6000 square feet of property the combined size
of the two lots is slightly more than 12740 square feet; enough to legally accommodate a
duplex housing unit. The property is zoned R2 and could accommodate a building of up
to 35% of the property area; allowable coverage would be about 4,460 square feet. The
proposed units including the attached garages will cover about 2600 square feet, well
within the allowable coverage. [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. New water and sewer
services may be required for this building.
No other utilities would be impacted by the development.
The developer will be responsible for replacing any sidewalks damaged during
construction of the project.
No other utilities would be impacted by the development. [§18-2103(b) and §18-2111]
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4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation. This property, owned by the
developer is currently vacant, no relocation is contemplated. [§18-2103.02]
5. No member of the Authority, nor any employee thereof holds any interest in any
property in this Redevelopment Project Area. [§18-2106]
6. Section 18-2114 of the Act requires that the Authority consider:
a. Method and cost of acquisition and preparation for redevelopment and estimated
proceeds from disposal to redevelopers.
The developer has purchased the property for this redevelopment in April of 2009. The
cost of property acquisition is not being included as a TIF eligible expense. Costs for
demolition, site preparation, landscaping and concrete $28,200 portions of this as related
to the demolition and site preparation are included as a TIF eligible expense.
Engineering and design fees are estimated at $2,000 and are included as a TIF eligible
expense. Fees and reimbursement to the City and the CRA of $2750 are included as a TIF
eligible expense. Finance, interest and closing costs of $14,000 are included as a TIF
eligible expense.
No property will be transferred to redevelopers by the Authority. The developer will
provide and secure all necessary financing.
b. Statement of proposed method of financing the redevelopment project.
The developer will provide all necessary financing for the project. The Authority will
assist the project by granting the sum of $46,950 from the proceeds of the TIF
Indebtedness issued by the Authority. This indebtedness will be repaid from the Tax
Increment Revenues generated from the project. TIF revenues shall be made available to
repay the original debt and associated interest after January 1, 2013 through December
2028.
c. Statement of feasible method of relocating displaced families.
No families will be displaced as a result of this plan.
7. Section 18-2113 of the Act requires:
Prior to recommending a redevelopment plan to the governing body for approval, an
authority shall consider whether the proposed land uses and building requirements in the
redevelopment project area are designed with the general purpose of accomplishing, in
conformance with the general plan, a coordinated, adjusted, and harmonious development
of the city and its environs which will, in accordance with present and future needs,
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promote health, safety, morals, order, convenience, prosperity, and the general welfare, as
well as efficiency and economy in the process of development, including, among other
things, adequate provision for traffic, vehicular parking, the promotion of safety from
fire, panic, and other dangers, adequate provision for light and air, the promotion of the
healthful and convenient distribution of population, the provision of adequate
transportation, water, sewerage, and other public utilities, schools, parks, recreational and
community facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention of the
recurrence of insanitary or unsafe dwelling accommodations or conditions of blight.
The Authority has considered these elements in proposing this Plan Amendment. This
amendment, in and of itself will promote consistency with the Comprehensive Plan, in
that it will allow for the utilization of and redevelopment of commercial lots. This will
not significantly impact traffic on at the Five Points intersection. Renovated commercial
development will raise property values and provide a stimulus to keep surrounding
properties properly maintained. This will have the intended result of preventing recurring
elements of unsafe buildings and blighting conditions.
8. Time Frame for Development
Development of this project (including demolition, site preparation and new construction)
is anticipated to be completed between October 2011 and September of 2012. Excess
valuation should be available for this project for 15 years beginning with the 2013 tax
year.
9. Justification of Project
This is a residential neighborhood characterized by single family dwellings on smaller
lots. The existing structure is considered badly worn by the Hall County Assessor and
has a number of safety issues that cannot be fixed without the cost of the repairs
exceeding the value of the building. The City of Grand Island is in need of additional
housing units and this development will remove one very poor housing unit and replace it
with 2 brand new units. This is infill development in an area with all city services
available. This project does not propose to tear down any buildings with historic value.
10. Cost Benefit Analysis Section 18-2113 of the Act, further requires the Authority
conduct a cost benefit analysis of the plan amendment in the event that Tax Increment
Financing will be used. This analysis must address specific statutory issues.
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $30,443. The
proposed demolition and subsequent construction of a duplex at this location will result
in an additional $149,750 of taxable valuation based on an analysis by the Hall County
Assessor’s office. No tax shifts are anticipated from the project. The project creates
additional valuation that will support taxing entities long after the project is paid off.
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(b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
No additional public service needs have been identified. Existing water and waste
water facilities will not be impacted by this development. The electric utility has
sufficient capacity to support the development. It is not anticipated that this will impact
schools. Fire and police protection are available and should not be impacted by this
development.
(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
The proposed facility will provide jobs for persons employed with Wenn
Construction. It will have no impact on other firms locating or expanding in the area.
(d) Impacts on other employers and employees within the city or village and the
immediate area that are located outside of the boundaries of the area of the
redevelopment project; and
This project will not have a negative impact on other employers and will result in
additional housing choices for employees within the city.
(e) Any other impacts determined by the authority to be relevant to the
consideration of costs and benefits arising from the redevelopment project.
This project will increase the available quality housing in Grand Island by a net of 2
units. The existing structure is worn out and not acceptable as a housing unit. These
types of smaller projects spread throughout the city will have a less drastic impact on
neighborhoods and schools than a centralized larger housing project.
This neighborhood has not had a great deal of new development in many years and
some newer buildings, especially ones that replace worn out buildings are likely to raise
all of the property values.
Time Frame for Development
Development of this project is anticipated to be completed during between October 1,
2011 and September 1 of 2012. The base tax year should be calculated on the value of
the property as of January 1, 2012. Excess valuation should be available for this project
for 15 years beginning in 2013. Excess valuation will be used to pay the TIF
Indebtedness issued by the CRA per the contract between the CRA and the developer for
a period not to exceed 15 years or an amount not to exceed $46,950, the projected amount
of increment based upon the anticipated value of the project and current tax rate. Based
on the estimates of the expenses of the cost of demolition, site preparation, engineering,
expenses and fees reimbursed to the City and CRA, and financing fees the developer will
spend at least $46,950 on TIF eligible activities.
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See Attached Building Plans
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REDEVELOPMENT CONTRACT
This Redevelopment Contract is made and entered into as of the _____th day of
___________, 2011, by and between the Community Redevelopment Authority of the City of
Grand Island, Nebraska (“Authority”), and Arnold Wenn, an individual (“Redeveloper”).
WITNESSETH:
WHEREAS, the City of Grand Island, Nebraska (the “City”), in furtherance of the
purposes and pursuant to the provisions of Section 12 of Article VIII of the Nebraska
Constitution and Sections l8-2101 to 18-2154, Reissue Revised Statutes of Nebraska, 2007, as
amended (collectively the “Act”), has designated an area in the City as blighted and substandard;
and
WHEREAS, Authority and Redeveloper desire to enter into this Redevelopment Contract
for acquisition and redevelopment of a parcel in the blighted and substandard area;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
set forth, Authority and Redeveloper do hereby covenant, agree and bind themselves as follows:
ARTICLE I
DEFINITIONS AND INTERPRETATION
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, 2007, as amended, and acts amendatory
thereof and supplemental thereto
“Authority” means the Community Redevelopment Authority of the City of Grand
Island, Nebraska.
“City” means the City of Grand Island, Nebraska.
“Governing Body” means the Mayor and City Council of the City.
“Holder” means the holders of TIF indebtedness issued by the Authority from time to
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time outstanding.
“Liquidated Damages Amount” means the amounts to be repaid to Authority by
Redeveloper pursuant to Section 6.02 of this Redevelopment Contract.
“Project” means the improvements to the Redevelopment Area, as fully described in
application of the Redeveloper to the Authority for assistance and the Redevelopment Plan
Amendment, related to the application, approved by the Governing Body incorporated herein by
reference and, as used herein, shall include the Redevelopment Area real estate.
“Project Costs” means only costs or expenses incurred by Redeveloper for the purposes
set forth in §18-2103 (a) through (f), inclusive, of the Act as identified on Exhibit C.
“Redeveloper” means Arnold Wenn, an individual.
“Redevelopment Area” means that certain real property situated in the City of Grand
Island, Hall County, Nebraska, which has been declared blighted and substandard by the City
pursuant to the Act, and which is more particularly described on Exhibit A attached hereto and
incorporated herein by this reference.
“Redevelopment Contract” means this redevelopment contract between the Authority
and Redeveloper with respect to the Project.
“Redevelopment Plan” means the Amended Redevelopment Plan for the
Redevelopment Area related to the Project, prepared by the Authority and approved by the City
pursuant to the Act.
“Resolution” means the Resolution of the Authority, as supplemented from time to time,
approving this Redevelopment Contract and the issuance of the TIF Indebtedness.
“TIF Indebtedness” means the note incurred by the Authority pursuant to Article III
hereof and secured in whole or in part by TIF Revenues, as shown on attached Exhibit B.
“TIF Revenues” means incremental ad valorem taxes generated by the Project which are
allocated to and paid to the Authority pursuant to the Act.
Section 1.02 Construction and Interpretation.
The provisions of this Redevelopment Contract shall be construed and interpreted in
accordance with the following provisions:
(a)Wherever in this Redevelopment Contract it is provided that any person
may do or perform any act or thing the word “may” shall he deemed permissive and not
mandatory and it shall be construed that such person shall have the right, but shall not be
obligated, to do and perform any such act or thing.
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(b)The phrase “at any time” shall be construed as meaning “at any time or
from time to time.”
(c)The word ‘including” shall be construed as meaning ‘‘including, but not
limited to.”
(d)The words ‘will” and “shall” shall each be construed as mandatory.
(e)The words “herein,” “hereof,” “hereunder,”” hereinafter” and words of
similar import shall refer to the Redevelopment Contract as a whole rather than to any
particular paragraph, section or subsection, unless the context specifically refers thereto.
(f)Forms of words in the singular, plural, masculine, feminine or neuter shall
be construed to include the other forms as the context may require.
(g)The captions to the sections of this Redevelopment Contract are for
convenience only and shall not be deemed part of the text of the respective sections and
shall not vary by implication or otherwise any of the provisions hereof.
ARTICLE II
REPRESENTATIONS
Section 2.01 Representations by Authority.
The Authority makes the following representations and findings:
(a)the 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 18-2109 through 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.
(e)(1) The Redevelopment Plan is feasible and in conformity with the general
plan for the development of the City as a whole and the plan is in conformity with the
legislative declarations and determinations set forth in the Act, and
(2) Based on Representations made by the Redeveloper:
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(i) the Project would not be economically feasible without the use
of tax-increment financing,
(ii) the Project would not occur in the Redevelopment Area without
the use of tax-increment financing, and
(iii) the costs and benefits of the Project, including costs and benefits
to other affected political subdivisions, the economy of the community, and
the demand for public and private services have been analyzed by the
Authority and have been found to be in the long-term best interest of the
community impacted by the Project.
(f)The Authority has determined that the proposed land uses and building
requirements in the Redevelopment Area are designed with the general purpose of
accomplishing, in conformance with the general plan, a coordinated, adjusted, and
harmonious development of the City and its environs which will, in accordance with
present and future needs, promote health, safety, morals, order, convenience, prosperity,
and the general welfare, as well as efficiency and economy in the process of
development: including, among other things, adequate provision for traffic, vehicular
parking, the promotion of safety from fire, panic, and other dangers, adequate provision
for light and air, the promotion of the healthful and convenient distribution of population,
the provision of adequate transportation, water, sewerage and other public utilities,
schools, parks, recreational and community facilities, and other public requirements, the
promotion of sound design and arrangement, the wise and efficient expenditure of public
funds, and the prevention of’ the recurrence of insanitary or unsafe dwelling
accommodations, or conditions of blight.
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 in any other matter
materially affecting the ability of Redeveloper to perform its obligations hereunder.
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(d)Any financial statements of the Redeveloper or its Members 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.
(e)The Project would not be economically feasible without the use of tax
increment financing.
(f)The Project would not occur in the Redevelopment Area without the use of
tax-increment financing.
(g)The Redeveloper is an accredited investor as that term is defined for
purposes Regulation D, issued pursuant to the Securities Act of 1933, as amended.
(h)The Redeveloper hereby verifies it has been legally obligated to incur the
costs set forth on Exhibit C as part of the Project.
ARTICLE III
OBLIGATIONS OF THE AUTHORITY
Section 3.01 Division of Taxes.
In accordance with Section 18-2147 of the Act, the Authority hereby provides that any ad
valorem tax on the following real property in the Project: to wit: Lot 267 and Lot 268 of West
Lawn Addition to the City of Grand Island, Hall County, Nebraska, for the benefit of any public
body be divided for a period of fifteen years after the effective date of this provision as set forth
in this section. The effective date of this provision shall be January 1, 2012.
(a)That proportion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the Redevelopment Project Valuation (as
defined in the Act) shall be paid into the funds of each such public body in the same
proportion as all other taxes collected by or for the bodies; and
(b)That proportion of the ad valorem tax on real property in the
Redevelopment Area in excess of such amount (the “Incremental Ad Valorem
Tax”), if any, shall be allocated to, is pledged to, and, when collected, paid into a
special fund of the Authority to pay the principal of, the interest on, and any
premiums due in connection with the bonds, loans, notes or advances of money
to, or indebtedness incurred by whether funded, refunded, assumed, or otherwise,
such Authority for financing or refinancing, in whole or in part, such Project.
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When such bonds, loans, notes, advances of money, or indebtedness, including
interest and premium due have been paid, the Authority shall so notify the County
Assessor and County Treasurer and all ad valorem taxes upon real property in
such Project shall be paid into the funds of the respective public bodies.
Section 3.02 Issuance of TIF Indebtedness
Execute and deliver to the Redeveloper, as Purchaser, at closing, the Redevelopment
Note in substantially the same form as the copy attached hereto as Exhibit B. The purchase price
of the TIF Indebtedness shall be offset against the Grant described in Section 3.04 hereof.
The TIF Indebtedness issued pursuant to the provisions of this contract constitutes a
limited obligation of the Authority payable exclusively from that portion of the ad valorem real
estate taxes mentioned in subdivision (1)(b) of Section 18-2147, R.R.S. Neb. 2007, as levied,
collected and apportioned from year to year with respect to certain real estate located within the
"Redevelopment Area" The TIF Indebtedness shall not constitute a general obligation of the
Authority and the Authority shall be liable for the payment thereof only out of said portion of
taxes as described in this paragraph. The TIF Indebtedness shall not constitute an obligation of
the State of Nebraska or of the City or the Authority (except for such receipts as have been
pledged pursuant to Section 3.03) and neither the State or Nebraska, the Authority nor the City
shall be liable for the payment thereof from any fund or source including but not limited to tax
monies belonging to either thereof (except for such receipts as have been pledged pursuant to
Section 3.03). Neither the members of the Authority's governing body nor any person executing
the TIF Indebtedness shall be liable personally on the TIF Indebtedness by reason of the issuance
thereof. The Authority’s obligation to the holder of the TIF Indebtedness shall terminate, in all
events no later than 15 years from the effective date set forth in Section 3.01 hereof.
Section 3.03 Pledge of TIF Revenues.
The Authority hereby pledges 100% of the annual TIF Revenues as security for the TIF
Indebtedness.
Section 3.04 Grant of Proceeds of’ TIF Indebtedness.
From the proceeds of the TIF indebtedness incurred as described on Exhibit B, the
Authority shall grant the following sums to the following entities, to wit: 100% to the
Redeveloper for Project Costs.
Notwithstanding the foregoing, the amount of the grant shall not exceed the amount of
Project Costs certified pursuant to Section 4.02. The grants shall be paid to the Redeveloper upon
certification that the Redeveloper has incurred or is obligated to incur such Project Costs which
include supporting documentation requested by Authority from time to time.
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Section 3.05 Creation of Fund.
The 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 Indebtedness issued pursuant to
Sections 3.02 above.
ARTICLE IV
OBLIGATIONS OF REDEVELOPER
Section 4.01 Construction of Project; Insurance.
(a) Redeveloper will complete the Project and install all infrastructure, improvements,
buildings, fixtures, equipment and furnishings 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. As used herein, the term “completion” shall meant substantial completion of the Project.
(b) Any general 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 City, the Authority and the Redeveloper shall be named
as additional insured. 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 any of the policies.
Section 4.02 Cost Certification.
Redeveloper shall submit to Authority a certification of Project Costs, on or before the
issuance of the TIF Indebtedness which shall contain detail and documentation showing the
payment or obligation for payment of Project Costs specified on the attached Exhibit C in an
amount at least equal to the grant to Redeveloper pursuant to Section 3.05.
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Section 4.03 Costs.
Redeveloper shall pay the Authority the following sums on execution of this agreement:
a. $1,250 for legal expenses of Authority
b. $1,000 for City administrative accounting of incremental tax payments.
c. $500 for Authority administrative fees.
Redeveloper understands that the law firm assisting with the issuance of the TIF
Indebtedness represents the Authority and not the Redeveloper.
Section 4.04 No Discrimination.
Redeveloper agrees and covenants for itself, its successors and assigns that as long as any
TIF Indebtedness is outstanding, 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 4.05 Pay Real Estate Taxes.
Redeveloper intends to create a taxable real property valuation of the Redevelopment
Area and Project of One Hundred Forty Nine Thousand Dollars ($149,000) no later than January
1, 2013. During the period that any TIF Indebtedness is outstanding, neither the Redeveloper, nor
its assigns, will (1) file a protest seeking to obtain a real estate property valuation on the
Redevelopment Area of less than One Hundred Forty Nine Thousand Dollars ($149,000) after
substantial completion or occupancy; (2) convey the Redevelopment Area on structures thereon
to any entity which would be exempt from the payment of real estate taxes or cause the
nonpayment of such real estate taxes; nor (3) allow real estate taxes and assessments levied on
the Redevelopment Area and Project to become delinquent during the term that any TIF
Indebtedness is outstanding.
Section 4.07 Assignment or Conveyance.
Any assignment or conveyance of the any portion of the Redevelopment, 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 Area by the Redeveloper shall be subject to the terms and
conditions of this Redevelopment Contract.
Section 4.08 Purchase of TIF Indebtedness.
The Redeveloper shall purchase the TIF Indebtedness at 100% of the principal amount
thereof upon issuance of such debt. The Authority offset such purchase against the grant
provided in Section 3.04 hereof.
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Section 4.09 Penal Bond.
The Redeveloper shall execute a penal bond for the Project with good and sufficient
surety to be approved by the Authority meeting the requirements of Section 18-2151,
Reissue Revised Statutes of Nebraska, as amended, on or prior to its execution of this
Contract.
Section 4.10 Immigration Status.
Redeveloper agrees that any contractor providing services on the Project site will
utilize the federal immigration verification system, as defined in Section 4-114, Reissue Revised
Statutes of Nebraska, (Supp. 2009), to determine the work eligibility status of new employees
physically performing services on the Project.
ARTICLE V
FINANCING REDEVELOPMENT PROJECT; ENCUMBRANCES
Section 5.01 Financing.
Redeveloper shall pay all Project Costs and any and all other costs related to the
Redevelopment Area and the Project which are in excess of the amounts paid from the proceeds
of the TIF Indebtedness granted to Redeveloper. Prior to issuance of the TIF Indebtedness,
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. Redeveloper shall timely pay all costs, expenses, fees, charges and other
amounts associated with the Project.
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 any party hereto or
any successor to such 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 on in breach of its obligations.
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Section 6.02 Additional Remedies of Authority
In the event that:
(a)the Redeveloper, on successor in interest, shall fail to complete the
construction of the Project on or before January 1, 2013, or shall abandon construction
work for any period of 90 days,
(b)the Redeveloper, on successor in interest, shall fail to pay real estate taxes
or assessments on the Redevelopment Area on any part thereof or payments in lieu of
taxes pursuant to Section 4.07 when due; or
(c) There is, in violation of Section 4.08 of this Redevelopment Contract, 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.
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 grant to Redeveloper pursuant to Section 3.04 of this
Redevelopment Contract, less any reductions in the principal amount of the TIF Indebtedness,
plus interest on such amounts 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 or rescission on termination of this Redevelopment
Contract, and shall not be covered by the Liquidated Damages Amount.
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Section 6.04 Forced 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 Redevelopment Area for redevelopment, or the beginning and completion of construction
of the Project, or progress in respect thereto, in the event of forced 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, floods, 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 the occurrence of any such
forced delay, the time or times for 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 forced 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 forced delay, have first
notified the other party thereto in writing, and of the cause or causes thereof and requested an
extension for the period of the forced delay.
Section 6.05 Limitations of Liability; Indemnification.
Notwithstanding anything in this Article VI or this Redevelopment Contract to the
contrary, neither the City, the Authority, nor their officers, directors, employees, agents or their
governing bodies shall have any pecuniary obligation or monetary liability under this
Redevelopment Contract. The sole obligation of the Authority under this Redevelopment
Contract shall be the issuance of the TIF Indebtedness and granting of a portion of the proceeds
thereof to Redeveloper, as specifically set forth in Sections 3.02 and 3.04. The obligation of the
City and Authority on any TIF Indebtedness shall be limited solely to the payment of the TIF
Revenues on the TIF Indebtedness. Specifically, but without limitation, neither the City or
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 City and
Authority from, agrees that neither the City or Authority shall be liable for, and agrees to
indemnify and hold the City and Authority harmless from any liability for any loss or damage to
property or any injury to or death of any person that may be occasioned by any cause whatsoever
pertaining to the Project.
The Redeveloper will indemnify and hold each of the City and Authority and their
directors, officers, agents, employees and member 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, whether
on not related to the Project, or resulting from or in any way connected with specified events,
including the management of’ the Project, or in any way related to the enforcement of this
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Redevelopment Contract or army other cause pertaining to the Project.
ARTICLE VII
MISCELLANEOUS
Section 7.01 Notice Recording.
This Redevelopment Contract or a notice memorandum of this Redevelopment Contract
shall be recorded with the County Register of Deeds in which the Redevelopment Area is
located.
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 Contract shall be binding on the parties hereto and their respective
successors and assigns. This Redevelopment Contract shall run with the Redevelopment Area.
The Redevelopment Contract shall not be amended except by a writing signed by the party to be
bound.
Section 7.04 Third Party Enforcement,
The provisions of this Redevelopment Contract which obligate the Redeveloper shall inure to the
benefit of the holder of the TIF Indebtedness, the Hall County Assessor, the City and the
Authority, any of whom may, but are not obligated to enforce the terms of this Redevelopment
Contract in a court of law.
IN WITNESS WHEREOF, Authority and Redeveloper have signed this Redevelopment
Contract as of the date and year first above written.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
ATTEST: GRAND ISLAND, NEBRASKA
_________________________________By:___________________________________
Secretary Chairman
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Arnold Wenn
_____________________________
STATE OF NEBRASKA )
) ss.
COUNTY OF HALL)
The foregoing instrument was acknowledged before me this ______ day of ______,
_____, by _______________ and ________________, Chair and Secretary, respectively, of the
Community Redevelopment Authority of the City of Grand Island, Nebraska, on behalf of the
Authority.
__________________________________
Notary Public
Grand Island Regular Meeting - 9/21/2011 Page 43 / 74
STATE OF NEBRASKA )
) ss.
COUNTY OF __________)
The foregoing instrument was acknowledged before me this ______ day of ______,
_____, by Arnold Wenn.
__________________________________
Notary Public
Grand Island Regular Meeting - 9/21/2011 Page 44 / 74
EXHIBIT A
DESCRIPTION OF REDEVELOPMENT AREA
Lot 267 and Lot 268 of West Lawn Addition to the City of Grand Island, Hall County, Nebraska.
A-I
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EXHIBIT B
FORM OF TIF INDEBTEDNESS
B- 1
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EXHIBIT C
PROJECT COSTS
All Project Costs payable from the proceeds of TIF indebtedness pursuant to the Act including:
1. Demolition $11,100
2. Site preparation
and concrete $17,107
3. Plan preparation $ 2,000
4. Finance & Closing $ 1,699
5. Authority costs $ 2,750
TOTAL $34,656
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Redevelopment Plan Amendment
Grand Island CRA Area #6
July 2011
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area #6 with in the city, pursuant to
the Nebraska Community Development Law (the “Act”) and provide for the
financing of a specific infrastructure related project in Area #6.
Executive Summary:
Project Description
THE DEMOLITION OF THE EXISTING SINGLE FAMILY HOUSE AT 213 N RUBY
AND THE SUBSEQUENT SITE WORK, UTILITY IMPROVEMENTS,
ENGINEERING, LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY
FOR REBUILDING A DUPLEX AT THIS LOCATION.
The use of Tax Increment Financing to aid in demolition of existing structures along with
costs associated with redevelopment of this site with a new duplex. The use of Tax
Increment Finance makes it affordable to provide additional housing in Grand Island at
this location at a contract rent that is consistent with the neighborhood. This project
would not be possible in an affordable manner without the use of TIF.
The site is owned by the developer and will be acquired for actual purchase price by a
Limited Liability Corporation owned and controlled by the developer. All site work,
demolition and utilities will be paid for by the developer. The developer is responsible
for and has provided evidence that they can secure adequate debt financing to cover the
costs associated with the acquisition, site work and remodeling. The Grand Island
Community Redevelopment Authority (CRA) intends to pledge the ad valorem taxes
generated over the 15 year period beginning January 1, 2012 towards the allowable costs
and associated financing for the acquisition and site work.
TAX INCREMENT FINANCING TO PAY FOR THE ACQUISTION OF THE
PROPERTY AND RELATED SITE WORK WILL COME FROM THE
FOLLOWING REAL PROPERTY:
Property Description (the “Redevelopment Project Area”)
This property is located at the northeast corner of 213 N Ruby in northeast Grand Island.
The attached map identifies the subject property and the surrounding land uses:
Legal Descriptions Lot 8 Block 31 of Packer and Barr’s Second Addition
to the City of Grand Island.
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The tax increment will be captured for the tax years the payments for which become
delinquent in years 2014 through 2028 inclusive.
The real property ad valorem taxes on the current valuation will continue to be paid
to the normal taxing entities. The increase will come from development of a duplex
housing unit at this location.
Statutory Pledge of Taxes.
Pursuant to Section 18-2147 of the Act, any ad valorem tax levied upon real property in
the Redevelopment Project Area shall be divided, for the period not to exceed 15 years
after the effective date of the provision, which effective date shall be January 1, 2013.
a. That portion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the redevelopment project valuation shall
be paid into the funds, of each such public body in the same proportion as all other taxes
collected by or for the bodies; and
b. That portion of the ad valorem tax on real property in the
redevelopment project in excess of such amount, if any, shall be allocated to and, when
collected, paid into a special fund of the Authority to pay the principal of; the interest on,
and any premiums due in connection with the bonds, loans, notes, or advances on money
to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such
Authority for financing or refinancing, in whole or in part, a redevelopment project.
When such bonds, loans, notes, advances of money, or indebtedness including interest
and premium due have been paid, the Authority shall so notify the County Assessor and
County Treasurer and all ad valorem taxes upon real property in such redevelopment
project shall be paid into the funds of the respective public bodies.
Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged
to the repayment of loans or advances of money, or the incurring of any indebtedness,
whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in
whole or in part, the redevelopment project, including the payment of the principal of,
premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness.
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Redevelopment Plan Amendment Complies with the Act:
The Community Development Law requires that a Redevelopment Plan and Project
consider and comply with a number of requirements. This Plan Amendment meets the
statutory qualifications as set forth below.
1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on October 9, 2007.[§18-2109] Such
declaration was made after a public hearing with full compliance with the public
notice requirements of §18-2115 of the Act.
2. Conformation to the General Plan for the Municipality as a whole. [§18-2103 (13)
(a) and §18-2110]
Grand Island adopted a Comprehensive Plan on July 13, 2004. This redevelopment plan
amendment and project are consistent with the Comprehensive Plan, in that no changes in
the Comprehensive Plan elements are intended. This plan merely provides funding for
the developer to acquire the necessary property and provide the necessary site work for
the construction of a permitted use on this property.
3. The Redevelopment Plan must be sufficiently complete to address the following
items: [§18-2103(13) (b)]
a. Land Acquisition:
The Redevelopment Plan for Area #6 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority.
b. Demolition and Removal of Structures:
The project to be implemented with this plan does for the demolition and removal of an
existing substandard housing unit at this location. The structure to be demolished is a
vacant substandard residential structure owned by the applicant.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. The site is
planned for mixed-used commercial development. [§18-2103(b) and §18-2111] The
attached map also is an accurate site plan of the area after redevelopment. [§18-2111(5)]
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City of Grand Island Future Land Use Map Grand Island Regular Meeting - 9/21/2011 Page 52 / 74
d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned R4-High Density Residential zone. No zoning changes are anticipated
with this project. No changes are anticipated in street layouts or grades. No changes are
anticipated in building codes or ordinances. Nor are any other planning changes
contemplated. [§18-2103(b) and §18-2111]
e. Site Coverage and Intensity of Use
The developer is proposing remove the existing structures from the property. The R4
zoning district allow 1 dwelling unit per 1000 square feet of property the size of the lot is
6720 square feet; enough to legally accommodate a duplex housing unit. The property is
zoned R4 and could accommodate a building of up to 60% of the property area;
allowable coverage would be about 4,032 square feet. The proposed units including the
attached garages will cover about2,400 square feet, well within the allowable coverage.
[§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. New water and sewer
services may be required for this building.
No other utilities would be impacted by the development.
The developer will be responsible for replacing any sidewalks damaged during
construction of the project.
No other utilities would be impacted by the development. [§18-2103(b) and §18-2111]
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4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation. This property, owned by the
developer is currently vacant, no relocation is contemplated. [§18-2103.02]
5. No member of the Authority, nor any employee thereof holds any interest in any
property in this Redevelopment Project Area. [§18-2106]
6. Section 18-2114 of the Act requires that the Authority consider:
a. Method and cost of acquisition and preparation for redevelopment and estimated
proceeds from disposal to redevelopers.
The developer has purchased the property for this redevelopment in June of 2009. The
cost of property acquisition $24,377.55 is included as a TIF eligible expense. Costs for
demolition, site preparation, landscaping and concrete $18,872 portions of this as related
to the demolition and site preparation are included as a TIF eligible expense.
Engineering and design fees are estimated at $1,400 and are included as a TIF eligible
expense. Fees and reimbursement to the City and the CRA of $2750 are included as a TIF
eligible expense. Finance, interest and closing costs of $2000 are included as a TIF
eligible expense.
No property will be transferred to redevelopers by the Authority. The developer will
provide and secure all necessary financing.
b. Statement of proposed method of financing the redevelopment project.
The developer will provide all necessary financing for the project. The Authority will
assist the project by granting the sum of $43,255 from the proceeds of the TIF
Indebtedness issued by the Authority. This indebtedness will be repaid from the Tax
Increment Revenues generated from the project. TIF revenues shall be made available to
repay the original debt and associated interest after January 1, 2013 through December
2028.
c. Statement of feasible method of relocating displaced families.
No families will be displaced as a result of this plan.
7. Section 18-2113 of the Act requires:
Prior to recommending a redevelopment plan to the governing body for approval, an
authority shall consider whether the proposed land uses and building requirements in the
redevelopment project area are designed with the general purpose of accomplishing, in
conformance with the general plan, a coordinated, adjusted, and harmonious development
of the city and its environs which will, in accordance with present and future needs,
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promote health, safety, morals, order, convenience, prosperity, and the general welfare, as
well as efficiency and economy in the process of development, including, among other
things, adequate provision for traffic, vehicular parking, the promotion of safety from
fire, panic, and other dangers, adequate provision for light and air, the promotion of the
healthful and convenient distribution of population, the provision of adequate
transportation, water, sewerage, and other public utilities, schools, parks, recreational and
community facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention of the
recurrence of insanitary or unsafe dwelling accommodations or conditions of blight.
The Authority has considered these elements in proposing this Plan Amendment. This
amendment, in and of itself will promote consistency with the Comprehensive Plan, in
that it will allow for the utilization of and redevelopment of commercial lots. This will
not significantly impact traffic on at the Five Points intersection. Renovated commercial
development will raise property values and provide a stimulus to keep surrounding
properties properly maintained. This will have the intended result of preventing recurring
elements of unsafe buildings and blighting conditions.
8. Time Frame for Development
Development of this project (including demolition, site preparation and new construction)
is anticipated to be completed between October 2011 and September of 2012. Excess
valuation should be available for this project for 15 years beginning with the 2013 tax
year.
9. Justification of Project
This is a residential neighborhood characterized by single family dwellings on smaller
lots. The existing structure is considered badly worn by the Hall County Assessor and
has a number of safety issues that cannot be fixed without the cost of the repairs
exceeding the value of the building. The City of Grand Island is in need of additional
housing units and this development will remove one very poor housing unit and replace it
with 2 brand new units. This is infill development in an area with all city services
available. This project does not propose to tear down any buildings with historic value.
10. Cost Benefit Analysis Section 18-2113 of the Act, further requires the Authority
conduct a cost benefit analysis of the plan amendment in the event that Tax Increment
Financing will be used. This analysis must address specific statutory issues.
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $14,500. The
proposed demolition, and subsequent construction of a duplex at this location will result
in an additional $135,800 of taxable valuation based on an analysis by the Hall County
Assessor’s office. No tax shifts are anticipated from the project. The project creates
additional valuation that will support taxing entities long after the project is paid off.
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(b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
No additional public service needs have been identified. Existing water and waste
water facilities will not be impacted by this development. The electric utility has
sufficient capacity to support the development. It is not anticipated that this will impact
schools. Fire and police protection are available and should not be impacted by this
development.
(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
The proposed facility will provide jobs for persons employed with T.C. Enck
Construction. It will have no impact on other firms locating or expanding in the area.
(d) Impacts on other employers and employees within the city or village and the
immediate area that are located outside of the boundaries of the area of the
redevelopment project; and
This project will not have a negative impact on other employers and will result in
additional housing choices for employees within the city.
(e) Any other impacts determined by the authority to be relevant to the
consideration of costs and benefits arising from the redevelopment project.
This project will increase the available quality housing in Grand Island by a net of 2
units. The existing structure is worn out and not acceptable as a housing unit. These
types of smaller projects spread throughout the city will have a less drastic impact on
neighborhoods and schools than a centralized larger housing project.
This neighborhood has not had a great deal of new development in many years and
some newer buildings, especially ones that replace worn out buildings are likely to raise
all of the property values.
Time Frame for Development
Development of this project is anticipated to be completed during between October 1,
2011 and September 1 of 2012. The base tax year should be calculated on the value of
the property as of January 1, 2012. Excess valuation should be available for this project
for 15 years beginning in 2013. Excess valuation will be used to pay the TIF
Indebtedness issued by the CRA per the contract between the CRA and the developer for
a period not to exceed 15 years or an amount not to exceed $43,255 the projected amount
of increment based upon the anticipated value of the project and current tax rate. Based
on the estimates of the expenses of the cost of demolition, site preparation, engineering,
expenses and fees reimbursed to the City and CRA, and financing fees the developer will
spend more than $51,899 on TIF eligible activities.
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See Attached Building Plans
Grand Island Regular Meeting - 9/21/2011 Page 57 / 74
REDEVELOPMENT CONTRACT
This Redevelopment Contract is made and entered into as of the _____th day of
___________, 2011, by and between the Community Redevelopment Authority of the City of
Grand Island, Nebraska (“Authority”), and Token Properties, LLC, a limited liability company
(“Redeveloper”).
WITNESSETH:
WHEREAS, the City of Grand Island, Nebraska (the “City”), in furtherance of the
purposes and pursuant to the provisions of Section 12 of Article VIII of the Nebraska
Constitution and Sections l8-2101 to 18-2154, Reissue Revised Statutes of Nebraska, 2007, as
amended (collectively the “Act”), has designated an area in the City as blighted and substandard;
and
WHEREAS, Authority and Redeveloper desire to enter into this Redevelopment Contract
for acquisition and redevelopment of a parcel in the blighted and substandard area;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
set forth, Authority and Redeveloper do hereby covenant, agree and bind themselves as follows:
ARTICLE I
DEFINITIONS AND INTERPRETATION
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, 2007, as amended, and acts amendatory
thereof and supplemental thereto
“Authority” means the Community Redevelopment Authority of the City of Grand
Island, Nebraska.
“City” means the City of Grand Island, Nebraska.
“Governing Body” means the Mayor and City Council of the City.
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“Holder” means the holders of TIF indebtedness issued by the Authority from time to
time outstanding.
“Liquidated Damages Amount” means the amounts to be repaid to Authority by
Redeveloper pursuant to Section 6.02 of this Redevelopment Contract.
“Project” means the improvements to the Redevelopment Area, as fully described in
application of the Redeveloper to the Authority for assistance and the Redevelopment Plan
Amendment, related to the application, approved by the Governing Body incorporated herein by
reference and, as used herein, shall include the Redevelopment Area real estate.
“Project Costs” means only costs or expenses incurred by Redeveloper for the purposes
set forth in §18-2103 (a) through (f), inclusive, of the Act as identified on Exhibit C.
“Redeveloper” means Token Properties, LLC, a limited liability company.
“Redevelopment Area” means that certain real property situated in the City of Grand
Island, Hall County, Nebraska, which has been declared blighted and substandard by the City
pursuant to the Act, and which is more particularly described on Exhibit A attached hereto and
incorporated herein by this reference.
“Redevelopment Contract” means this redevelopment contract between the Authority
and Redeveloper with respect to the Project.
“Redevelopment Plan” means the Amended Redevelopment Plan for the
Redevelopment Area related to the Project, prepared by the Authority and approved by the City
pursuant to the Act.
“Resolution” means the Resolution of the Authority, as supplemented from time to time,
approving this Redevelopment Contract and the issuance of the TIF Indebtedness.
“TIF Indebtedness” means the note incurred by the Authority pursuant to Article III
hereof and secured in whole or in part by TIF Revenues, as shown on attached Exhibit B.
“TIF Revenues” means incremental ad valorem taxes generated by the Project which are
allocated to and paid to the Authority pursuant to the Act.
Section 1.02 Construction and Interpretation.
The provisions of this Redevelopment Contract shall be construed and interpreted in
accordance with the following provisions:
(a)Wherever in this Redevelopment Contract it is provided that any person
may do or perform any act or thing the word “may” shall he deemed permissive and not
mandatory and it shall be construed that such person shall have the right, but shall not be
obligated, to do and perform any such act or thing.
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(b)The phrase “at any time” shall be construed as meaning “at any time or
from time to time.”
(c)The word ‘including” shall be construed as meaning ‘‘including, but not
limited to.”
(d)The words ‘will” and “shall” shall each be construed as mandatory.
(e)The words “herein,” “hereof,” “hereunder,” “hereinafter” and words of
similar import shall refer to the Redevelopment Contract as a whole rather than to any
particular paragraph, section or subsection, unless the context specifically refers thereto.
(f)Forms of words in the singular, plural, masculine, feminine or neuter shall
be construed to include the other forms as the context may require.
(g)The captions to the sections of this Redevelopment Contract are for
convenience only and shall not be deemed part of the text of the respective sections and
shall not vary by implication or otherwise any of the provisions hereof.
ARTICLE II
REPRESENTATIONS
Section 2.01 Representations by Authority.
The Authority makes the following representations and findings:
(a)the 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 18-2109 through 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.
(e)(1) The Redevelopment Plan is feasible and in conformity with the general
plan for the development of the City as a whole and the plan is in conformity with the
legislative declarations and determinations set forth in the Act, and
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(2) Based on Representations made by the Redeveloper:
(i) the Project would not be economically feasible without the use
of tax-increment financing,
(ii) the Project would not occur in the Redevelopment Area without
the use of tax-increment financing, and
(iii) the costs and benefits of the Project, including costs and benefits
to other affected political subdivisions, the economy of the community, and
the demand for public and private services have been analyzed by the
Authority and have been found to be in the long-term best interest of the
community impacted by the Project.
(f)The Authority has determined that the proposed land uses and building
requirements in the Redevelopment Area are designed with the general purpose of
accomplishing, in conformance with the general plan, a coordinated, adjusted, and
harmonious development of the City and its environs which will, in accordance with
present and future needs, promote health, safety, morals, order, convenience, prosperity,
and the general welfare, as well as efficiency and economy in the process of
development: including, among other things, adequate provision for traffic, vehicular
parking, the promotion of safety from fire, panic, and other dangers, adequate provision
for light and air, the promotion of the healthful and convenient distribution of population,
the provision of adequate transportation, water, sewerage and other public utilities,
schools, parks, recreational and community facilities, and other public requirements, the
promotion of sound design and arrangement, the wise and efficient expenditure of public
funds, and the prevention of’ the recurrence of insanitary or unsafe dwelling
accommodations, or conditions of blight.
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 in any other matter
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materially affecting the ability of Redeveloper to perform its obligations hereunder.
(d)Any financial statements of the Redeveloper or its Members 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.
(e)The Project would not be economically feasible without the use of tax
increment financing.
(f)The Project would not occur in the Redevelopment Area without the use of
tax-increment financing.
(g)The Redeveloper is an accredited investor as that term is defined for
purposes Regulation D, issued pursuant to the Securities Act of 1933, as amended.
(h)The Redeveloper hereby verifies it has been legally obligated to incur the
costs set forth on Exhibit C as part of the Project.
ARTICLE III
OBLIGATIONS OF THE AUTHORITY
Section 3.01 Division of Taxes.
In accordance with Section 18-2147 of the Act, the Authority hereby provides that any ad
valorem tax on the following real property in the Project: to wit: Lot 8 Block 31 of Packer and
Barr’s Second Addition to the City of Grand Island, Hall County, Nebraska, for the benefit of
any public body be divided for a period of fifteen years after the effective date of this provision
as set forth in this section. The effective date of this provision shall be January 1, 2012.
(a)That proportion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the Redevelopment Project Valuation (as
defined in the Act) shall be paid into the funds of each such public body in the same
proportion as all other taxes collected by or for the bodies; and
(b)That proportion of the ad valorem tax on real property in the
Redevelopment Area in excess of such amount (the “Incremental Ad Valorem
Tax”), if any, shall be allocated to, is pledged to, and, when collected, paid into a
special fund of the Authority to pay the principal of, the interest on, and any
premiums due in connection with the bonds, loans, notes or advances of money
to, or indebtedness incurred by whether funded, refunded, assumed, or otherwise,
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such Authority for financing or refinancing, in whole or in part, such Project.
When such bonds, loans, notes, advances of money, or indebtedness, including
interest and premium due have been paid, the Authority shall so notify the County
Assessor and County Treasurer and all ad valorem taxes upon real property in
such Project shall be paid into the funds of the respective public bodies.
Section 3.02 Issuance of TIF Indebtedness
Execute and deliver to the Redeveloper, as Purchaser, at closing, the Redevelopment
Note in substantially the same form as the copy attached hereto as Exhibit B. The purchase price
of the TIF Indebtedness shall be offset against the Grant described in Section 3.04 hereof.
The TIF Indebtedness issued pursuant to the provisions of this contract constitutes a
limited obligation of the Authority payable exclusively from that portion of the ad valorem real
estate taxes mentioned in subdivision (1)(b) of Section 18-2147, R.R.S. Neb. 2007, as levied,
collected and apportioned from year to year with respect to certain real estate located within the
"Redevelopment Area" The TIF Indebtedness shall not constitute a general obligation of the
Authority and the Authority shall be liable for the payment thereof only out of said portion of
taxes as described in this paragraph. The TIF Indebtedness shall not constitute an obligation of
the State of Nebraska or of the City or the Authority (except for such receipts as have been
pledged pursuant to Section 3.03) and neither the State or Nebraska, the Authority nor the City
shall be liable for the payment thereof from any fund or source including but not limited to tax
monies belonging to either thereof (except for such receipts as have been pledged pursuant to
Section 3.03). Neither the members of the Authority's governing body nor any person executing
the TIF Indebtedness shall be liable personally on the TIF Indebtedness by reason of the issuance
thereof. The Authority’s obligation to the holder of the TIF Indebtedness shall terminate, in all
events no later than 15 years from the effective date set forth in Section 3.01 hereof.
Section 3.03 Pledge of TIF Revenues.
The Authority hereby pledges 100% of the annual TIF Revenues as security for the TIF
Indebtedness.
Section 3.04 Grant of Proceeds of’ TIF Indebtedness.
From the proceeds of the TIF indebtedness incurred as described on Exhibit B, the
Authority shall grant the following sums to the following entities, to wit: 100% to the
Redeveloper for Project Costs.
Notwithstanding the foregoing, the amount of the grant shall not exceed the amount of
Project Costs certified pursuant to Section 4.02. The grants shall be paid to the Redeveloper upon
certification that the Redeveloper has incurred or is obligated to incur such Project Costs which
include supporting documentation requested by Authority from time to time.
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Section 3.05 Creation of Fund.
The 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 Indebtedness issued pursuant to
Sections 3.02 above.
ARTICLE IV
OBLIGATIONS OF REDEVELOPER
Section 4.01 Construction of Project; Insurance.
(a) Redeveloper will complete the Project and install all infrastructure, improvements,
buildings, fixtures, equipment and furnishings 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. As used herein, the term “completion” shall meant substantial completion of the Project.
(b) Any general 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 City, the Authority and the Redeveloper shall be named
as additional insured. 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 any of the policies.
Section 4.02 Cost Certification.
Redeveloper shall submit to Authority a certification of Project Costs, on or before the
issuance of the TIF Indebtedness which shall contain detail and documentation showing the
payment or obligation for payment of Project Costs specified on the attached Exhibit C in an
amount at least equal to the grant to Redeveloper pursuant to Section 3.05.
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Section 4.03 Costs.
Redeveloper shall pay the Authority the following sums on execution of this agreement:
a. $1,250 for legal expenses of Authority
b. $1,000 for City administrative accounting of incremental tax payments.
c. $500 for Authority administrative fees.
Redeveloper understands that the law firm assisting with the issuance of the TIF
Indebtedness represents the Authority and not the Redeveloper.
Section 4.04 No Discrimination.
Redeveloper agrees and covenants for itself, its successors and assigns that as long as any
TIF Indebtedness is outstanding, 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 4.05 Pay Real Estate Taxes.
Redeveloper intends to create a taxable real property valuation of the Redevelopment
Area and Project of One Hundred Fifty Thousand Dollars ($150,000) no later than January 1,
2013. During the period that any TIF Indebtedness is outstanding, neither the Redeveloper, nor
its assigns, will (1) file a protest seeking to obtain a real estate property valuation on the
Redevelopment Area of less than One Hundred Fifty Thousand Dollars ($150,000) after
substantial completion or occupancy; (2) convey the Redevelopment Area on structures thereon
to any entity which would be exempt from the payment of real estate taxes or cause the
nonpayment of such real estate taxes; nor (3) allow real estate taxes and assessments levied on
the Redevelopment Area and Project to become delinquent during the term that any TIF
Indebtedness is outstanding.
Section 4.07 Assignment or Conveyance.
Any assignment or conveyance of the any portion of the Redevelopment, 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 Area by the Redeveloper shall be subject to the terms and
conditions of this Redevelopment Contract.
Section 4.08 Purchase of TIF Indebtedness.
The Redeveloper shall purchase the TIF Indebtedness at 100% of the principal amount
thereof upon issuance of such debt. The Authority offset such purchase against the grant
provided in Section 3.04 hereof.
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Section 4.09 Penal Bond.
The Redeveloper shall execute a penal bond for the Project with good and sufficient
surety to be approved by the Authority meeting the requirements of Section 18-2151,
Reissue Revised Statutes of Nebraska, as amended, on or prior to its execution of this
Contract.
Section 4.10 Immigration Status.
Redeveloper agrees that any contractor providing services on the Project site will
utilize the federal immigration verification system, as defined in Section 4-114, Reissue Revised
Statutes of Nebraska, (Supp. 2009), to determine the work eligibility status of new employees
physically performing services on the Project.
ARTICLE V
FINANCING REDEVELOPMENT PROJECT; ENCUMBRANCES
Section 5.01 Financing.
Redeveloper shall pay all Project Costs and any and all other costs related to the
Redevelopment Area and the Project which are in excess of the amounts paid from the proceeds
of the TIF Indebtedness granted to Redeveloper. Prior to issuance of the TIF Indebtedness,
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. Redeveloper shall timely pay all costs, expenses, fees, charges and other
amounts associated with the Project.
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 any party hereto or
any successor to such 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 on in breach of its obligations.
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Section 6.02 Additional Remedies of Authority
In the event that:
(a)the Redeveloper, on successor in interest, shall fail to complete the
construction of the Project on or before January 1, 2013, or shall abandon construction
work for any period of 90 days,
(b)the Redeveloper, on successor in interest, shall fail to pay real estate taxes
or assessments on the Redevelopment Area on any part thereof or payments in lieu of
taxes pursuant to Section 4.07 when due; or
(c) There is, in violation of Section 4.08 of this Redevelopment Contract, 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.
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 grant to Redeveloper pursuant to Section 3.04 of this
Redevelopment Contract, less any reductions in the principal amount of the TIF Indebtedness,
plus interest on such amounts 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 or rescission on termination of this Redevelopment
Contract, and shall not be covered by the Liquidated Damages Amount.
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Section 6.04 Forced 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 Redevelopment Area for redevelopment, or the beginning and completion of construction
of the Project, or progress in respect thereto, in the event of forced 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, floods, 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 the occurrence of any such
forced delay, the time or times for 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 forced 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 forced delay, have first
notified the other party thereto in writing, and of the cause or causes thereof and requested an
extension for the period of the forced delay.
Section 6.05 Limitations of Liability; Indemnification.
Notwithstanding anything in this Article VI or this Redevelopment Contract to the
contrary, neither the City, the Authority, nor their officers, directors, employees, agents or their
governing bodies shall have any pecuniary obligation or monetary liability under this
Redevelopment Contract. The sole obligation of the Authority under this Redevelopment
Contract shall be the issuance of the TIF Indebtedness and granting of a portion of the proceeds
thereof to Redeveloper, as specifically set forth in Sections 3.02 and 3.04. The obligation of the
City and Authority on any TIF Indebtedness shall be limited solely to the payment of the TIF
Revenues on the TIF Indebtedness. Specifically, but without limitation, neither the City or
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 City and
Authority from, agrees that neither the City or Authority shall be liable for, and agrees to
indemnify and hold the City and Authority harmless from any liability for any loss or damage to
property or any injury to or death of any person that may be occasioned by any cause whatsoever
pertaining to the Project.
The Redeveloper will indemnify and hold each of the City and Authority and their
directors, officers, agents, employees and member 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, whether
on not related to the Project, or resulting from or in any way connected with specified events,
including the management of’ the Project, or in any way related to the enforcement of this
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Redevelopment Contract or army other cause pertaining to the Project.
ARTICLE VII
MISCELLANEOUS
Section 7.01 Notice Recording.
This Redevelopment Contract or a notice memorandum of this Redevelopment Contract
shall be recorded with the County Register of Deeds in which the Redevelopment Area is
located.
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 Contract shall be binding on the parties hereto and their respective
successors and assigns. This Redevelopment Contract shall run with the Redevelopment Area.
The Redevelopment Contract shall not be amended except by a writing signed by the party to be
bound.
Section 7.04 Third Party Enforcement,
The provisions of this Redevelopment Contract which obligate the Redeveloper shall inure to the
benefit of the holder of the TIF Indebtedness, the Hall County Assessor, the City and the
Authority, any of whom may, but are not obligated to enforce the terms of this Redevelopment
Contract in a court of law.
IN WITNESS WHEREOF, Authority and Redeveloper have signed this Redevelopment
Contract as of the date and year first above written.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
ATTEST: GRAND ISLAND, NEBRASKA
_________________________________By:___________________________________
Secretary Chairman
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Token Properties, LLC
_____________________________
Managing Member
STATE OF NEBRASKA )
) ss.
COUNTY OF HALL)
The foregoing instrument was acknowledged before me this ______ day of ______,
_____, by _______________ and ________________, Chair and Secretary, respectively, of the
Community Redevelopment Authority of the City of Grand Island, Nebraska, on behalf of the
Authority.
__________________________________
Notary Public
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STATE OF NEBRASKA )
) ss.
COUNTY OF __________)
The foregoing instrument was acknowledged before me this ______ day of ______,
_____, by ____________________, Managing Member of Token Properties, LLC, on behalf of
the company.
__________________________________
Notary Public
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EXHIBIT A
DESCRIPTION OF REDEVELOPMENT AREA
Lot 8 Block 31 of Packer and Barr’s Second Addition to the City of Grand Island, Hall County,
Nebraska.
A-I
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EXHIBIT B
FORM OF TIF INDEBTEDNESS
B- 1
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EXHIBIT C
PROJECT COSTS
All Project Costs payable from the proceeds of TIF indebtedness pursuant to the Act including:
1. Acquisition $24,377.55
2. Demolition $11,200.00
3. Site preparation
and concrete $ 7,672.00
4. Plan preparation $ 2,000.00
5. Finance & Closing $ 2,000.00
6. Architectural $ 1,400.00
6. Authority costs $ 2,750.00
TOTAL $51,399.55
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