10-12-2011 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, October 12, 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 - 10/12/2011 Page 1 / 19
Call to Order
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for
Future Agenda Items form located at the Information Booth. If the issue can be handled administratively
without Council action, notification will be provided. If the item is scheduled for a meeting or study
session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve
time to speak. Please come forward, state your name and address, and the Agenda topic on which you will
be speaking.
DIRECTOR COMMUNICATION
This is an opportunity for the Director to comment on current events, activities, and issues of interest to
the commission.
Grand Island Regular Meeting - 10/12/2011 Page 2 / 19
Community Redevelopment
Authority (CRA)
Wednesday, October 12, 2011
Regular Meeting
Item A1
Agenda
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 10/12/2011 Page 3 / 19
AGENDA
Wednesday October 12, 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 September 21, 2011 Meeting.
3.Approval of Financial Reports.
4.Approval of Bills.
5.Review of Committed Projects and CRA Properties.
6.Discussion concerning Purchase/Sale of Real Estate of property.
a.Proposal received on 408 E 2nd Street
7.Approve Resolution or Resolutions to Purchase/Sell Real Estate.
8.Directors Report
9.Adjournment
Next Meeting November 9, 2011
The CRA may go into closed session for any agenda item as allowed by state law.
Grand Island Regular Meeting - 10/12/2011 Page 4 / 19
Community Redevelopment
Authority (CRA)
Wednesday, October 12, 2011
Regular Meeting
Item B1
Meeting Minutes
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 10/12/2011 Page 5 / 19
OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
September 21, 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 September 21, 2011 at City Hall 100 E First Street. Notice of the meeting was
given in the September 14, 2011 Grand Island Independent.
1.CALL TO ORDER. Barry Sandstrom called the meeting to order at 4:02
p.m. The following members were present: Tom Gdowski, Glen Murray,
and Sue Pirnie. Also present were; Director, Chad Nabity; Secretary,
Rose Woods and Legal Council Duane Burns, Council Liaison Randy
Gard, Arnold Wenn and Todd Enck .
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 correction was made to the meeting minutes
on item #6 there was an error, a word was incorrectly spelled. With the
correction noted, a motion for approval of the Minutes for the July 27,
2011 meeting was made by Pirnie. Motion was seconded by Murray.
Upon roll call vote, all present voted aye. Motion carried unanimously.
3.APPROVAL OF FINANCIAL REPORTS. The financial reports for the
period of August 1, 2011 through August 31, 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 Murray and seconded by Pirnie to approve the bills in the
amount of $215,634.13. Upon roll call vote all present voted aye. Motion
carried unanimously to approve the payment of bills totaling $215,634.13.
5. CONSIDERATION OF RESOLUTION OF INTENT. Consideration to
approve a Resolution 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, at 1822 W 13th Street, Grand Island. The CRA
passed Resolution 125 notifying City Council of their intent to enter into a
redevelopment contract at their meeting on July 27, 2011. The Hall
County Regional Planning Commission met on August 3, 2011 and
Grand Island Regular Meeting - 10/12/2011 Page 6 / 19
passed Resolution 2011-02 finding that this plan amendment is consistent
with the comprehensive development plan for the City of Grand Island.
The Grand Island City Council passed Resolution 2011-224 approving the
redevelopment plan at their meeting on August 23, 2011. Motion made by
Murray and seconded by Pirnie to approve the Resolution of intent to
enter into a Redevelopment Contract with Arnold Wenn. Upon roll call
vote all present voted aye. Motion carried unanimously to approve the
Redevelopment Contract.
6. CONSIDERATION OF RESOLUTION OF INTENT. Consideration to
approve a Resolution 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, at 213 N Ruby Street, Grand Island.
The CRA passed Resolution 124 notifying City Council of their intent to
enter into a redevelopment contract at their meeting on July 27, 2011. The
Hall County Regional Planning Commission met on August 3, 2011 and
passed Resolution 2011-03 finding that this plan amendment is consistent
with the comprehensive development plan for the City of Grand Island. The
Grand Island City Council passed Resolution 2011-223 approving the
redevelopment plan at their meeting on August 23, 2011.
Grand Island builder Todd Enck spoke at the meeting noting without the
availability of tax-increment financing, there's no way he would have
pursued constructing a new duplex in an old Grand Island neighborhood.
He said with the recent questions raised by the Grand Island City Council
about the financing have made him skittish about pursuing such
development in the future.
"The council made me nervous," he said Wednesday to the Community
Redevelopment Authority (CRA), which finalized a contract extending
$51,000 of tax-increment funding to a $140,000 duplex Enck plans to build
at 213 N. Ruby. The new duplex will replace a $14,000 substandard house
that the assessor has listed as "worn out," which had been red-tagged as a
problem property by the city. Despite its poor condition, people were living
in the property one month prior to Enck buying it. "If (TIF) didn't get
approved, I don't know what I'd do with it," Enck said. "I would definitely try
to sell it and it would probably be rented" again in substandard condition.
When the city council reviewed Enck's contract on Aug. 23, several council
members raised questions about the 15-year length of time for financing on
smaller scale projects like his and the possible depreciation of the
improved property when it's a rental. They seemed to imply that city tax
revenues were being lost on tax-increment financing projects.
But nothing could be further from the truth, Enck said. Tax-increment
financing adds property valuation, creates construction jobs and revitalizes
older parts of town, he said. As a tax-increment financing project, Enck is
Grand Island Regular Meeting - 10/12/2011 Page 7 / 19
forbidden from protesting his higher valuation, so depreciation isn't even an
issue. The valuation on his property will raise from $14,000 to $140,000 of
brand new duplex. He'll pay property taxes on the $140,000, but get the
property taxes on the new $126,000 of value back to help with expenses
for the project for up to 15 years.
CRA Director Chad Nabity said you don't have to look much past the cost
of buying a bad property and demolishing to understand that such
revitalization projects simply wouldn't occur without tax-increment
financing. In Enck's case, he spent $25,000 on the substandard house and
another $15,000 to clear the lot and prepare it for construction. For the
same $40,000, Enck could have purchased a brand new lot in a new
development west of town, built a new duplex there and made more money
selling it outright or renting it. The $40,000 lot on north Ruby simply doesn't
carry the same value, even though it's the same cost, Nabity said.
"What's the incentive to build on North Ruby?" he asked the CRA.
The incentive is tax-increment financing, answered CRA Chairman Barry
Sandstrom. It's not a flat-out gift to builders and developers, it's simply a
way to leverage the builder's own capital. The builder's capital is what is
replacing bad homes with good ones in Grand Island, a mission the CRA
and city have been vocal about supporting.
City councilman Randy Gard, a liaison to the CRA, said he was uneasy to
hear Enck's comments Wednesday. "I'm concerned there's a wrong
message being sent," Gard said. "All of a sudden we're scared of TIF and
we've got a bunch of folks who may be willing to do something that aren't
because they don't know where the council is going. We need to fix that."
Gard said a bunch of smaller-scale projects like Enck's could have the
same affect as one large-scale one.
And no larger-scale projects have come forward lately, said CRA member
Tom Gdowski. Isn't it wrong to hold out for something that hasn't come?
The smaller projects, like an apartment complex on Lincoln Avenue, a
duplex on 13th Street and a water line on Poplar, spread the revitalization
across town, Nabity said. Whenever the city conducts a blight and
substandard study, it's in essence preparing to invite tax-increment
financing applications, he said.
A motion was made by Gdowski and seconded by Murray to approve the
Resolution of intent to enter into a Redevelopment Contract with TOKEN,
LLC or (Todd & Kelly Enck). Upon roll call vote all present voted aye.
Motion carried unanimously to approve the Redevelopment Contract.
7. REVIEW OF COMMITTED PROJECTS & CRA PROPERTIES.
Grand Island Regular Meeting - 10/12/2011 Page 8 / 19
Nabity briefly reviewed the Committed Projects. The first phase of the
Wayside horns will be completed this fall. This will be presented to Council
at the September 27, 2011. The Grand Island Christian School demo is
complete. The bills have been submitted for payment and the checks were
just approved for payment. The Façade is nearing completion as well. The
check will be sent for the $80,000 Façade however the demo needs to
have the lien wavier signed then the check for the $129,000 can be
released. Meyer and Erives are still working on the 3rd St project. It’s still
all boarded up. The Grand Façade is still moving forward, they just
received there grant from DED. The Wilmar Realty LLC is moving forward
as well they should be done this fall as the project is nearing completion.
The downtown BID is still moving forward as the first project the POW
Memorial is completed and the bills should be coming in next month.
8. DISCUSSION CONCERNING PURCHASE/SALE OF REAL ESTATE.
9. APPROVE RESOLUTION OR RESOLUTIONS TO PURCHASE/SELL
PROPERTY.
10. DIRECTORS REPORT.
11. ADJOURNMENT.
Sandstrom adjourned the meeting at 4:58 p.m.
The next meeting is scheduled for October 12, 2011 at 4:00 p.m.
Respectfully submitted
Chad Nabity
Director
Grand Island Regular Meeting - 10/12/2011 Page 9 / 19
Community Redevelopment
Authority (CRA)
Wednesday, October 12, 2011
Regular Meeting
Item C1
Financial Reports
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 10/12/2011 Page 10 / 19
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF SEPTEMBER 2011
MONTH ENDED 2010 - 2011 2011 REMAINING
SEPTEMBER 2011 YEAR TO DATE BUDGET BALANCE
CONSOLIDATED
Beginning Cash 1,038,096 985,902 985,902
REVENUE:
Property Taxes 116,926 733,244 653,977 (79,267)
Loan Proceeds - - - -
Interest Income 93 2,620 12,940 10,320
Land Sales - 29,906 50,000 20,094
Other Revenue 4,541 24,515 - (24,515)
TOTAL REVENUE 121,561 790,286 716,917 (73,368)
TOTAL RESOURCES 1,159,656 1,776,187 1,702,819 (73,368)
EXPENSES
Auditing & Accounting 23 4,998 7,500 2,502
Legal Services 255 2,389 10,000 7,611
Consulting Services - - 10,000 10,000
Contract Services 5,923 78,795 40,000 (38,795)
Printing & Binding - - 1,000 1,000
Other Professional Services - 6,393 5,000 (1,393)
General Liability Insurance - - 250 250
Postage 31 712 200 (512)
Matching Grant - - - -
Legal Notices 403 881 800 (81)
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 209,000 442,155 539,950 97,795
South Locust - - - -
Alleyway Improvement - - - -
Other Projects - - 800,000 800,000
Bond Principal 25,693 255,618 161,611 (94,007)
Bond Interest - 63,170 81,172 18,002
Interest Expense - - - -
- - -
TOTAL EXPENSES 241,328 857,858 1,759,783 901,925
INCREASE(DECREASE) IN CASH (119,767) (67,573) (56,965)
ENDING CASH 918,329 918,329 928,937
LESS COMMITMENTS 356,900 705,900
AVAILABLE CASH 561,429 212,429 928,937 -
CHECKING 565,896
INVESTMENTS 352,433
Total Cash 918,329
Grand Island Regular Meeting - 10/12/2011 Page 11 / 19
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF SEPTEMBER 2011
MONTH ENDED 2010 - 2011 2011 REMAINING
SEPTEMBER 2011 YEAR TO DATE BUDGET BALANCE
CRA
GENERAL OPERATIONS:
Property Taxes 91,233 421,109 425,000 3,891
Interest Income 80 2,403 8,000 5,597
Land Sales 29,906 50,000 20,094
Other Revenue & Motor Vehicle Tax 4,541 12,372 - (12,372)
TOTAL 95,854 465,790 483,000 17,210
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 13 186 - (186)
Other Revenue - - -
TOTAL 13 63,561 59,180 (4,381)
GENTLE DENTAL
Property Taxes 4,512 4,202 (310)
Interest Income 0 2 - (2)
Other Revenue - - -
TOTAL 0 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 - 10/12/2011 Page 12 / 19
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF SEPTEMBER 2011
MONTH ENDED 2010 - 2011 2011 REMAINING
SEPTEMBER 2011 YEAR TO DATE BUDGET BALANCE
TOTAL - 29,185 1,195 (27,990)
SOUTHEAST CROSSING
Property Taxes 4,948 12,200 8,866 (3,334)
Interest Income - - -
Other Revenue - - -
TOTAL 4,948 12,200 8,866 (3,334)
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 19,965 41,479 - (41,479)
Interest Income - - -
Other Revenue - - -
TOTAL 19,965 41,479 - (41,479)
TODD ENCK PROJECT
Property Taxes 781 1,622 - (1,622)
Interest Income - - -
Other Revenue - - -
TOTAL 781 1,622 - (1,622)
SKAGWAY
Property Taxes - - -
Interest Income - - -
Other Revenue - - -
TOTAL - - - -
TOTAL REVENUE 121,561 790,286 725,783 (64,503)
Grand Island Regular Meeting - 10/12/2011 Page 13 / 19
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF SEPTEMBER 2011
MONTH ENDED 2010 - 2011 2011 REMAINING
SEPTEMBER 2011 YEAR TO DATE BUDGET BALANCE
EXPENSES
CRA
GENERAL OPERATIONS:
Auditing & Accounting 23 3,998 7,500 3,502
Legal Services 255 2,389 10,000 7,611
Consulting Services - 10,000 10,000
Contract Services 5,923 40,666 40,000 (666)
Printing & Binding - 1,000 1,000
Other Professional Services 6,393 5,000 (1,393)
General Liability Insurance - 250 250
Postage 31 712 200 (512)
Matching Grant - - -
Legal Notices 403 881 800 (81)
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 209,000 442,155 539,950 97,795
South Locust - - -
Alleyway Improvement - - -
Other Projects - 800,000 800,000
TOTAL CRA EXPENSES 215,634 499,941 1,517,000 1,017,059
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 - 10/12/2011 Page 14 / 19
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF SEPTEMBER 2011
MONTH ENDED 2010 - 2011 2011 REMAINING
SEPTEMBER 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 4,948 12,200 8,866 (3,334)
Bond Interest - - -
TOTAL SOUTHEAST CROSSINGS 4,948 12,200 8,866 (3,334)
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 19,965 41,479 - (41,479)
Bond Interest - - -
TOTAL SOUTH POINTE HOTEL PROJECT 19,965 41,479 - (41,479)
TODD ENCK PROJECT
Bond Principal 781 1,622 - (1,622)
Bond Interest - - -
TOTAL CASEY'S @ FIVE POINTS 781 1,622 - (1,622)
SKAGWAY
Bond Principal - - -
Bond Interest - - -
Auditing & Accounting 1,000 - (1,000)
TOTAL SKAGWAY - 1,000 - (1,000)
TOTAL EXPENSES 241,328 857,858 1,759,783 901,925
Grand Island Regular Meeting - 10/12/2011 Page 15 / 19
Community Redevelopment
Authority (CRA)
Wednesday, October 12, 2011
Regular Meeting
Item D1
Bills
Staff Contact: Chad
Grand Island Regular Meeting - 10/12/2011 Page 16 / 19
12-Oct-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 $ 3,701.44
Accounting Acct fees Oct - Dec $ 375.00
Officenet Inc.
Postage $ 22.87
Lawnscape 408 E 2nd / September $ 128.00
Grand Island Independent Budget/Final Tax $ 896.83
Olsson Associates Blight Study $ 3,000.00
Mayer, Burns, Koenig & Janulewicz Legal Services $ 150.00
BID #7 Assessment 3235 S Locust $ 2,566.98
Total:
$ 10,841.12
Grand Island Regular Meeting - 10/12/2011 Page 17 / 19
Community Redevelopment
Authority (CRA)
Wednesday, October 12, 2011
Regular Meeting
Item E1
Committed Projects
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 10/12/2011 Page 18 / 19
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
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 $996,900.00 $356,900.00 $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
September 30, 2011
Grand Island Regular Meeting - 10/12/2011 Page 19 / 19