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07-31-2012 Community Redevelopment Authority Regular Meeting Packet Community Redevelopment Authority (CRA) Tuesday, July 31, 2012 Regular Meeting Packet Board Members: Michelle Fitzke Tom Gdowski Barry Sandstrom Sue Pirnie Glen Murray 4:00 PM Grand Island Regular Meeting - 7/31/2012 Page 1 / 48 Call to Order Roll Call A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS Individuals who have appropriate items for City Council consideration should complete the Request for Future Agenda Items form located at the Information Booth. If the issue can be handled administratively without Council action, notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given. B - RESERVE TIME TO SPEAK ON AGENDA ITEMS This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to speak. Please come forward, state your name and address, and the Agenda topic on which you will be speaking. DIRECTOR COMMUNICATION This is an opportunity for the Director to comment on current events, activities, and issues of interest to the commission. Grand Island Regular Meeting - 7/31/2012 Page 2 / 48 Community Redevelopment Authority (CRA) Tuesday, July 31, 2012 Regular Meeting Item A1 Agenda Staff Contact: Chad Nabity Grand Island Regular Meeting - 7/31/2012 Page 3 / 48 Tuesday July 31, 2012 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 11, 2012 Meeting. 3.Consideration of a Resolution to forward a Redevelopment Plan Amendment to the Hall County Regional Planning Commission for 2300 N Webb Road, Grand Island, with Gordman Grand Island, LLC. 4.Consideration of a Resolution of intent to enter into a Site Specific Redevelopment Contract & Approval of related actions 30 day notice to City Council for 2300 N Webb Road, with Gordman Grand Island, LLC. 5.Discussion with Procon regarding the possible sale of 3rd floor of Old City Hall. 6.Budget Approval. 7.ADJOURN TO EXECUTIVE SESSION TO DISCUSS NEGOTIATIONS. RETURN TO REGULAR SESSION 8.Approve Resolution or Resolutions to Purchase/Sell Property. 9.Directors Report 10.Adjournment Next Meeting August 8, 2012 The CRA may go into closed session for any agenda item as allowed by state law. Grand Island Regular Meeting - 7/31/2012 Page 4 / 48 Community Redevelopment Authority (CRA) Tuesday, July 31, 2012 Regular Meeting Item B1 Meeting Minutes Staff Contact: Chad Nabity Grand Island Regular Meeting - 7/31/2012 Page 5 / 48 OFFICIAL PROCEEDINGS MINUTES OF COMMUNITY REDEVELOPMENT AUTHORITY MEETING OF July 11, 2012 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 11, 2012 at City Hall 100 E First Street. Notice of the meeting was given in the July 3, 2012 Grand Island Independent. 1.CALL TO ORDER. Chairman Barry Sandstrom called the meeting to order at 4:02 p.m. The following members were present: Glen Murray and Tom Gdowski. Also present were; Director, Chad Nabity; Secretary, Rose Woods; Council Liaison, Vaughn Minton; Finance Director, Jaye Monter; Legal Counsel, Duane Burns; Todd Enck, Roger Bullington (Members Michelle Fitzke and Sue Pirnie were absent). 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 13, 2012 meeting was made by Murray and seconded by Gdowski. Upon roll call vote all present voted aye. Motion carried unanimously. 3. APPROVAL OF FINANCIAL REPORTS. Monter reviewed the financial reports for the period of June 1, 2012 through June 31, 2012. Motion was made by Gdowski and seconded by Murray to approve the financial reports. Upon roll call vote, all present voted aye. Motion carried unanimously. 4. APPROVAL OF BILLS. The bills were reviewed by Sandstrom. Motion made by Gdowski and seconded by Murray to approve the bills in the amount of $98,787.89. Upon roll call vote all present voted aye. Motion carried unanimously to approve the payment of bills totaling $98,787.89. 5.REVIEW OF COMMITTED PROJECTS & CRA PROPERTY. Nabity reviewed the Committed Projects. Larry Fowle would be submitting a bill to the CRA next month for his micro blight study. Chief Industries is continuing their demo and cleanup of the old co-op. Fonner Park first installment has been approved for payment. All inspections have been signed off by the Grand Island Building Department. YMCA is continuing their work on the roof. The Grand Façade is almost done and will be Grand Island Regular Meeting - 7/31/2012 Page 6 / 48 sending a bill in the next few months. The Chocolate Bar is Willmar Reality is complete. 6.MEMORANDUM OF UNDERSTANDING WITH CHIEF INDUSTRIES. RE: FORMER AURORA COOP PROPERTY. At the April CRA meeting Chief Industries was awarded a grant of $100,000 to help pay for the demolition of the buildings on the Aurora Coop property. The CRA was interested in the possibility of getting that money back in the event that TIF is used on this property and Chief was agreeable. A Memorandum of Understanding was approved subject to negotiating minor changes. That MOU has been changed significantly, including the addition of a signature line for the Mayor (subject to Council Approval); to insure that all parties are aware of what is proposed. If the MOU is not signed the grant that CRA awarded will still be paid to Chief upon completion of the project. If the MOU is approved it does not commit the City or the CRA to using TIF for the project but it does make the costs for demolition, site clearance and the installation of public utilities that will or may occur prior to an application for TIF eligible for reimbursement. The CRA will have some possibility of getting all or a portion of the Grant for demolition back. A motion for approval of the Memo of Understanding with Chief Industries RE: Former Aurora Coop was made by Murray and seconded by Gdowski. Upon roll call vote all present voted aye. Motion carried unanimously. 7.CONSIDERATION OF RESOLUTION 138. Consideration of a Resolution to forward a Site Specific redevelopment plan to the Hall County Regional Planning Commission for 125 N Carey Street. The CRA received a TIF application and staff has prepared a Site Specific redevelopment plan (the “Plan”), for redevelopment of an area within city limits of the City of Grand Island, Hall County, Nebraska. A MOTION to approve Resolution No. 138. A motion for approval of Resolution No. 138 to forward the Site Specific Redevelopment Plan to the Hall County Regional Planning Commission for 125 N Carey was made by Gdowski and seconded by Murray. Upon roll call vote all present voted aye. Motion carried unanimously. 8.CONSIDERATION OF RESOLUTION 139. Consideration of a Resolution of intent to enter into a Site Specific Redevelopment Contract & Approval of related actions 30 day notice to City Council for 125 N Carey Street. A MOTION to approve Resolution No. 139. A motion for approval of Resolution No. 139 to forward the Site Specific Redevelopment Plan to the City Council for 125 N Carey was made by Grand Island Regular Meeting - 7/31/2012 Page 7 / 48 Gdowski and seconded by Murray. Upon roll call vote all present voted aye. Motion carried unanimously. 9.DISCUSSION ABOUT OLD CITY HALL. There was no discussion with PROCON. They needed to submit a formal letter to the CRA to discuss the possible sale of the Old City Hall 3rd Floor. 10.BUDGET Review of 2012-2013 Budget. Monter reviewed the budget numbers. The budget will be cleaned up and brought forth at the next meeting. 11.DIRECTORS REPORT. There will be two blight studies. 12. ADJOURNMENT. Sandstrom adjourned the meeting at 4:55 p.m. The next meeting is scheduled for July 31, 2012 at 4:00 p.m. Respectfully submitted Chad Nabity Director Grand Island Regular Meeting - 7/31/2012 Page 8 / 48 Community Redevelopment Authority (CRA) Tuesday, July 31, 2012 Regular Meeting Item H1 TIF Application for 2300 N Webb Rd Staff Contact: Chad Nabity Grand Island Regular Meeting - 7/31/2012 Page 9 / 48 Grand Island Regular Meeting - 7/31/2012 Page 10 / 48 Grand Island Regular Meeting - 7/31/2012 Page 11 / 48 Grand Island Regular Meeting - 7/31/2012 Page 12 / 48 Grand Island Regular Meeting - 7/31/2012 Page 13 / 48 Grand Island Regular Meeting - 7/31/2012 Page 14 / 48 Grand Island Regular Meeting - 7/31/2012 Page 15 / 48 Grand Island Regular Meeting - 7/31/2012 Page 16 / 48 Grand Island Regular Meeting - 7/31/2012 Page 17 / 48 Grand Island Regular Meeting - 7/31/2012 Page 18 / 48 Grand Island Regular Meeting - 7/31/2012 Page 19 / 48 Grand Island Regular Meeting - 7/31/2012 Page 20 / 48 Grand Island Regular Meeting - 7/31/2012 Page 21 / 48 Grand Island Regular Meeting - 7/31/2012 Page 22 / 48 Grand Island Regular Meeting - 7/31/2012 Page 23 / 48 Grand Island Regular Meeting - 7/31/2012 Page 24 / 48 Grand Island Regular Meeting - 7/31/2012 Page 25 / 48 Grand Island Regular Meeting - 7/31/2012 Page 26 / 48 COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA RESOLUTION NO. 140 RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA, SUBMITTING A PROPOSED REDEVELOPMENT PLAN TO THE HALL COUNTY REGIONAL PLANNING COMMISSION FOR ITS RECOMMENDATION WHEREAS, this Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), pursuant to the Nebraska Community Development Law (the "Act"), prepared a proposed redevelopment plan (the "Plan") a copy of which is attached hereto as Exhibit 1, for redevelopment of an area within the city limits of the City of Grand Island, Hall County, Nebraska; and WHEREAS, the Authority is required by Section 18-2112 of the Act to submit said to the planning board having jurisdiction of the area proposed for redevelopment for review and recommendation as to its conformity with the general plan for the development of the City of Grand Island, Hall County, Nebraska; NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: The Authority submits to the Hall County Regional Planning Commission the proposed Plan attached to this Resolution, for review and recommendation as to its conformity with the general plan for the development of the City of Grand Island, Hall County, Nebraska. Passed and approved this ___ day of ___________, 2012. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA. By___________________________ Chairperson ATTEST: __________________________ Secretary Grand Island Regular Meeting - 7/31/2012 Page 27 / 48 EXHIBIT 1 REDEVELOPMENT PLAN AMENDMENT Grand Island Regular Meeting - 7/31/2012 Page 28 / 48 Site Specific Redevelopment Plan Grand Island CRA Area #9 July 2012 The Community Redevelopment Authority (CRA) of the City of Grand Island intends to amend the Redevelopment Plan for Area #9 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 #9. Executive Summary: Project Description THE RENOVATION OF 89,438 SQUARE FEET OF RETAIL SPACE AT THE FORMER GORDMANS STORE ON THE CORNER OF U.S. HIGHWAY 281 AND CAPITAL AVENUE AT 2300 N WEBB RD AND 2408 PLAZA DRIVE LOCATED ON LOTS 1 AND 2 OF GRAND ISLAND PLAZA SECOND SUBDIVSION AND THE SUBSEQUENT SITE WORK, UTILITY, ENGINEERING, LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY FOR THE RENOVATION AT THIS LOCATION. The developer intends to use Tax Increment Financing to aid in renovate the existing tenant spaces and update and improve the façade of the building on the north, east and west sides of the building as well as improving access to the property from Capital Avenue, renovating the existing parking and adding more parking. 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, 2013 towards the allowable costs and associated financing for the remodeling 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 northwest corner of U.S. Highway 281 and State Street in northwest Grand Island. The attached map identifies the subject property and the surrounding land uses: Legal Descriptions Lots 1 and 2 of Grand Island Plaza Second Subdivision in the City of Grand Island, Hall County, Nebraska. Grand Island Regular Meeting - 7/31/2012 Page 29 / 48 Grand Island Existing Land Use July 2012 Grand Island Regular Meeting - 7/31/2012 Page 30 / 48 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 rehabilitation of the vacant commercial space into smaller tenant spaces. 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 - 7/31/2012 Page 31 / 48 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 April 24, 2012. [§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 rehabilitate an existing conforming 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 Generalized Redevelopment Plan for Area #9 provides for real property acquisition and this plan amendment does not prohibit such acquisition. There is no proposed acquisition by the authority or the developer. b. Demolition and Removal of Structures: The project to be implemented with this plan amendment does not call for the demolition and removal of any existing structures. c. Future Land Use Plan See the attached map from the 2004 Grand Island Comprehensive Plan. The site is planned for highway 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 - 7/31/2012 Page 32 / 48 City of Grand Island Future Land Use Map Grand Island Regular Meeting - 7/31/2012 Page 33 / 48 d. Changes to zoning, street layouts and grades or building codes or ordinances or other Planning changes. The area is zoned B1 Light Business 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. The proposed use for commercial retail space is permitted in the B1 zoning district. [§18-2103(b) and §18-2111] e. Site Coverage and Intensity of Use The developer is proposing rehabilitate the existing structure a conforming structure and use in the B1 zoning district. [§18-2103(b) and §18-2111] f. Additional Public Facilities or Utilities This site has full service to municipal utilities. No 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] 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 maintained as retail center. The proposed use of this property would continue as a retail commercial space. No individuals or families will be relocated as a result of this project.[§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 owned the property for since 19??. The cost of property acquisition is not being included as a TIF eligible expense. Costs for rehabilitation of the existing structure and parking improvements are estimated at $4,041,744 including all fees. The direct cost to renovate the building is estimated at $2,609,744. Fees and reimbursement Grand Island Regular Meeting - 7/31/2012 Page 34 / 48 to the City and the CRA of $6,500, the cost of the original blight study and generalized redevelopment plan of $6,000 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 $1,072,785 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, 2014 through December 31, 2027. 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, 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 intersection of State Street and U.S. Highway 281. 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. Grand Island Regular Meeting - 7/31/2012 Page 35 / 48 8. Time Frame for Development Development of this project (including demolition, site preparation and new construction) is anticipated to be completed between September 2012 and April of 2013. Excess valuation should be available for this project for 15 years beginning with the 2013 tax year. 9. Justification of Project The U.S. Highway 281 Corridor is a major entrance for the City of Grand Island from the north and from I-80. The majority of the new commercial development in Grand Island in the past 10 years has occurred along this stretch of highway. The Grand Island Mall area was one of the first pieces in this corridor to develop. The pattern that has been most successful with buildings facing onto U.S. 281 was not as obvious a pattern for success as it is today. The opportunity to partner with owners of key building along this corridor as they redevelop and reinvest in their properties is important to making those favorable first impressions. This property in particular at the corner of the largest intersection in the City has a unique opportunity to set the tone for a visitor’s entire experience in Grand Island. 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 $2,187,305. The proposed renovation of this facility will result in an estimated additional $3,262,365 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. (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 by the contractors that will be involved with the project. It could result in a new local and/or national retailers Grand Island Regular Meeting - 7/31/2012 Page 36 / 48 locating in Grand Island. The new retail facilities will employ managerial and sales staff at these locations. (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 may create additional demand for retail service employees in the Grand Island area and could impact other retailers. (e) Any other impacts determined by the authority to be relevant to the consideration of costs and benefits arising from the redevelopment project. This will improve the northern entrance into the City of Grand Island. The updates and upgrades a portion of one of the oldest commercial areas along U.S. Highway 281. Since these are proposed for retail commercial use this may give the City a greater opportunity to capture more sales tax dollars. Time Frame for Development Development of this project is anticipated to be completed during between September 2012 and April of 2013. The base tax year should be calculated on the value of the property as of January 1, 2012. The tax increment on excess valuation should be available for this project for 15 years beginning in 2014. 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 $1,072,785 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 renovation, site preparation, engineering, expenses and fees reimbursed to the City and CRA, and financing fees the developer will spend over $4,000,000 on TIF eligible activities over $2,600,000 of which are directly related to remodeling and rehabilitating the existing building. See Attached Building Plans Grand Island Regular Meeting - 7/31/2012 Page 37 / 48 COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA RESOLUTION NO. 141 RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA, PROVIDING NOTICE OF INTENT TO ENTER INTO A REDEVELOPMENT AFTER THE PASSAGE OF 30 DAYS AND OTHER MATTERS WHEREAS, this Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), has received an Application for Tax Increment Financing under the Nebraska Community Development Law (the “Act”) on a project within redevelopment area #9, from Gordman Grand Island, LLC, (The "Developer") for redevelopment of an area within the city limits of the City of Grand Island as set forth in Exhibit 1 attached hereto area; and WHEREAS, this Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), is proposing to use Tax Increment Financing on a project within redevelopment area #9; NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: Section 1. In compliance with section 18-2114 of the Act, the Authority hereby gives the governing body of the City notice that it intends to enter into the Redevelopment Contract, attached as Exhibit 1, with such changes as are deemed appropriate by the Authority, after approval of the redevelopment plan amendment related to the redevelopment project described in the Redevelopment Contract, and after the passage of 30 days from the date hereof. Section 2. The Secretary of the Authority is directed to file a copy of this resolution with the City Clerk of the City of Grand Island, forthwith. Passed and approved this ___ day of __________, 2012. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA. By ___________________________ Chairperson ATTEST: ___________________ Secretary Grand Island Regular Meeting - 7/31/2012 Page 38 / 48 Exhibit 1 Attach a copy of the Redevelopment Contract Grand Island Regular Meeting - 7/31/2012 Page 39 / 48 Community Redevelopment Authority (CRA) Tuesday, July 31, 2012 Regular Meeting Item K1 Budget Approval Staff Contact: Chad Nabity Grand Island Regular Meeting - 7/31/2012 Page 40 / 48 July 23, 2012 From: Chad Nabity, AICP Director To:CRA Board Re: 2012-2013 Budget Enclosed you will find a final draft of the 2012-2013 CRA Budget. The 2012-2013 CRA Budget is presented with projected revenue from taxes of $640,000 the levy from last year is being retained and includes about $442,000 for CRA purposes including grants, façade improvements, committed projects and staffing as well as $205,000 for Lincoln Park Pool. Based on our recent history the budget includes $120,000 for façade improvement. I am suggesting only $20,000 for property acquisitions. The other projects line will drop from $100,000 to $50,000 this year this money could be shifted to property purchase, grants or façade improvements depending on the need. Budgeting money in other projects makes it possible for the CRA to consider purchases like heating the sheep barn at Fonner Park or helping pay for the demolition of the Aurora Coop buildings. This year will be a lean year with minimal grants or CRA funded activities. We are projecting some increase revenues from non-property tax sources including reimbursements for expenses for TIF contracts and money received on the bonds for the Poplar Street Water Project. Grand Island Regular Meeting - 7/31/2012 Page 41 / 48 COMMUNITY REDEVELOPMENT AUTHORITY FY 2012- 2013 BUDGET 2008 2009 2010 2011 2012 2012 2013 Actual Actual Actual Actual Budget Forecasted Budget CONSOLIDATED Beginning Cash 952,497 1,236,622 1,547,542 985,902 923,823 923,823 298,766 REVENUE: Property Taxes-CRA 493,602 487,610 442,832 421,109 437,618 437,618 441,668 Property Taxes-Lincoln Pool - 201,787 201,787 205,574 Property Taxes-TIF's 257,198 267,523 205,341 312,136 318,406 365,795 438,016 Loan Proceeds - - - - - - Interest Income-CRA 41,561 14,889 19,804 2,403 8,000 2,000 1,000 Interest Income - TIF's 407 741 334 217 - - - Loan Income (Poplar Street Water Line) 1,800 5,000 Land Sales 15,152 47,335 - 30,000 70,000 - 100,000 Bond Proceeds - Lincoln Pool - - - - - - 1,725,000 Other Revenue & Motor Vehicle Tax - 24,473 24,516 12,372 10,000 12,000 22,000 Other Revenue - TIF's - - - 12,143 1,000 - - TOTAL REVENUE 807,920 842,571 692,826 790,379 1,046,811 1,021,000 2,938,258 TOTAL RESOURCES 1,760,417 2,079,193 2,240,368 1,776,281 1,970,634 1,944,823 3,237,024 EXPENSES Auditing & Accounting 5,000 7,601 5,392 4,998 5,000 4,000 5,000 Legal Services 2,143 4,829 3,060 2,389 10,000 3,000 3,000 Consulting Services - - - - 10,000 5,000 10,000 Contract Services 34,362 26,122 173,875 78,795 55,000 55,000 55,000 Printing & Binding 568 - - - 1,000 - 1,000 Other Professional Services 4,112 - - 6,393 5,000 - 5,000 General Liability Insurance - - - - 250 250 250 Postage 142 159 202 712 200 200 200 Legal Notices 828 750 613 881 800 1,500 2,500 Licenses & Fees - - - - - - - Travel & Training - - - - 1,000 200 1,000 Other Expenditures - - - 94 500 - - Office Supplies 105 38 328 746 500 300 300 Supplies - - - 300 - 300 Land 33,090 129 448,720 2,002 100,000 - 20,000 Façade Improvement-to be applied for 207,871 241,793 354,015 442,155 150,000 231,000 120,000 Lincoln Pool Bond Proceeds pay out - - - - - - 1,725,000 Other Projects - 2,858 - - 100,000 244,312 50,000 Property Taxes South Locust Project - 11,000 11,000 11,000 2nd Street BID - - - - - Outstanding Façade Improvement Grants - 500,000 400,000 318,000 Railroad Horns - 240,000 144,500 - Other Committed Projects - 97,500 60,000 134,000 Property Management - - - - Bond Payment /Fees 120,787 - 205,574 Debt-Lincoln Pool 80,000 120,000 - Bond Principal 142,543 161,927 199,617 255,618 267,659 314,934 396,334 Bond Interest 93,031 85,445 74,453 63,170 50,747 50,861 41,682 TOTAL EXPENSES 523,795 531,650 1,260,276 857,952 1,807,243 1,646,057 3,105,140 INCREASE(DECREASE) IN CASH 284,125 310,920 (567,451) (67,572) (760,432) (625,057) (166,882) ENDING CASH 1,236,622 1,547,542 980,091 918,329 163,391 298,766 131,884 LESS COMMITMENTS - - - - - AVAILABLE CASH 1,236,622 1,547,542 980,091 918,329 163,391 298,766 131,884 CRA CASH 1,144,841 1,449,401 938,028 870,571 115,633 169,221 2,339 LINCOLN POOL CASH - - - - - 81,787 81,787 TIF CASH 91,781 98,141 42,063 47,758 47,758 47,758 47,758 TOTAL CASH 1,236,622 1,547,542 980,091 918,329 163,391 298,766 131,884 Grand Island Regular Meeting - 7/31/2012 Page 42 / 48 COMMUNITY REDEVELOPMENT AUTHORITY FY 2012- 2013 BUDGET 2008 2009 2010 2011 2012 2012 2013 Actual Actual Actual Actual Budget Forecasted Budget CRA REVENUES GENERAL OPERATIONS: 01 Property Taxes 493,602 487,610 442,832 421,109 437,618 437,618 441,668 Property Taxes-Lincoln Pool Levy 201,787 201,787 205,574 Interest Income 41,561 14,889 19,804 2,403 8,000 2,000 1,000 Loan Income (Poplar Street Water Line) - 1,800 5,000 Land Sales - 47,335 - 30,000 70,000 - 100,000 Bond Proceeds Lincoln Pool 1,725,000 Other Revenue & Motor Vehicle Tax 1,300 8,959 12,156 12,372 10,000 12,000 22,000 TOTAL 536,463 558,792 474,791 465,884 727,405 655,205 2,500,242 GILI TRUST-07 Property Taxes 66,410 65,817 65,694 66,223 32,890 32,890 Interest Income - - 12 - Other Revenue 1,108 277 8 TOTAL 67,518 66,094 65,702 66,235 32,890 32,890 - CHERRY PARK LTD II-08 Property Taxes 62,743 91,836 32,832 63,374 59,180 59,180 59,180 Interest Income 251 497 301 186 - - - Other Revenue - - TOTAL 62,994 92,334 33,133 63,561 59,180 59,180 59,180 GENTLE DENTAL-09 Property Taxes 3,497 4,427 4,479 4,512 4,202 4,202 4,202 Interest Income 3 1 2 2 - - - Other Revenue 947 2,610 - - TOTAL 4,447 7,037 4,481 4,514 4,202 4,202 4,202 PROCON TIF-10 Property Taxes 18,138 17,925 17,972 18,163 19,162 19,162 19,162 Interest Income 53 36 5 4 - - - Other Revenue 972 232 1,172 1,555 - TOTAL 19,163 18,193 19,148 19,722 19,162 19,162 19,162 WALNUT HOUSING PROJECT-11 Property Taxes 93,632 62,942 33,089 63,871 74,472 74,472 74,472 Interest Income 100 207 26 13 - - - Other Revenue 10,825 12,395 11,180 10,588 - TOTAL 104,557 75,544 44,296 74,471 74,472 74,472 74,472 BRUNS PET GROOMING-12 Property Taxes 9,536 9,575 10,502 6,727 11,000 13,170 13,500 Interest Income - TOTAL 9,536 9,575 10,502 6,727 11,000 13,170 13,500 Grand Island Regular Meeting - 7/31/2012 Page 43 / 48 COMMUNITY REDEVELOPMENT AUTHORITY FY 2012- 2013 BUDGET 2008 2009 2010 2011 2012 2012 2013 Actual Actual Actual Actual Budget Forecasted Budget GIRAD VET CLINIC-13 Property Taxes 3,242 4,940 13,855 350 14,000 14,037 14,500 Interest Income - - - - - - TOTAL 3,242 4,940 13,855 350 14,000 14,037 14,500 GEDDES ST APTS - PROCON-14 Property Taxes 1,195 14,809 29,185 30,000 28,591 30,000 Interest Income - - - - - - TOTAL - 1,195 14,809 29,185 30,000 28,591 30,000 SOUTHEAST CROSSINGS-15 Property Taxes - 8,866 12,109 12,200 14,000 8,674 12,000 Interest Income - - - - - - TOTAL - 8,866 12,109 12,200 14,000 8,674 12,000 POPLAR STREET WATER-16 Property Taxes - - - - 1,000 1,826 2,500 Interest Income - - - - - - - Other Revenue 1,000 TOTAL - - - - 2,000 1,826 2,500 CASEY'S FIVE POINTS-17 Property Taxes - 4,429 15,000 8,670 10,000 Interest Income - - - - TOTAL CASEY'S FIVE POINTS - - - 4,429 15,000 8,670 10,000 SOUTHPOINTE HOTEL-18 Property Taxes - - - 41,479 22,000 88,000 90,000 Interest Income - - - - TOTAL SOUTHPOINTE HOTEL - - - 41,479 22,000 88,000 90,000 TODD ENCK-19 Property Taxes - - - 1,622 5,500 3,126 2,500 Interest Income - - - - - TOTAL TC ENCK - - - 1,622 5,500 3,126 2,500 SKAGWAY - 20 Property Taxes - - - - - 55,000 Interest Income - - - - - - TOTAL JOHN SCHULTE CONSTRUCTION - - - - - - 55,000 JOHN SCHULTE CONSTRUCTION-21 Property Taxes - - - - 3,000 4,448 6,000 Interest Income - - - - - - TOTAL JOHN SCHULTE CONSTRUCTION - - - - 3,000 4,448 6,000 PHARMACY PROPERTIES INC-22 Property Taxes - - - - 8,000 5,347 11,000 Interest Income - - - - - - TOTAL PHARMACY PROPERTIES INC - - - - 8,000 5,347 11,000 KEN-RAY LLC-23 Property Taxes - - - - 5,000 - 34,000 Interest Income - - - - - - TOTAL KEN-RAY LLC - - - - 5,000 - 34,000 TOTAL REVENUE 807,920 842,571 692,826 790,379 1,046,811 1,021,000 2,883,258 Grand Island Regular Meeting - 7/31/2012 Page 44 / 48 COMMUNITY REDEVELOPMENT AUTHORITY FY 2012- 2013 BUDGET 2008 2009 2010 2011 2012 2012 2013 Actual Actual Actual Actual Budget Forecasted Budget EXPENSES EXPENSES CRA GENERAL OPERATIONS: 01 Auditing & Accounting 5,000 7,601 4,392 3,998 5,000 4,000 5,000 Legal Services 2,143 4,829 3,060 2,389 10,000 3,000 3,000 Consulting Services - - - - 10,000 5,000 10,000 Contract Services 34,362 26,122 84,977 40,666 55,000 55,000 55,000 Printing & Binding 568 - - - 1,000 - 1,000 Other Professional Services 4,112 - - 6,393 5,000 - 5,000 General Liability Insurance - - - - 250 250 250 Postsge 142 159 202 712 200 200 200 Legal Notices 828 750 613 881 800 1,500 2,500 Licenses & Fees - - - - - - Travel & Training - - - - 1,000 200 1,000 Other Expenditures - - - 94 500 - - Office Supplies 105 38 328 746 500 300 300 Supplies - - - - 300 - 300 Land 33,090 129 448,720 2,002 100,000 - 20,000 - - DEBT - - Bond Payments/Fees 120,787 - 205,574 Payment to City-Lincoln Pool engineering fees 80,000 120,000 - PROJECTS: 05 - - Façade Improvement 207,871 241,793 354,015 442,155 150,000 231,000 120,000 Lincoln Pool Construction From Bond Proceeds - - - - 1,725,000 2nd Street BID - - - - - Outstanding Façade Improvement Grants - - - 500,000 400,000 318,000 Railroad Horns - - - 240,000 144,500 - Other Committed Projects - - - 97,500 60,000 134,000 Other Projects - 2,858 - - 100,000 244,312 50,000 Property Taxes BID Fees - - - - 11,000 11,000 11,000 Property Management - - - - - - - TOTAL CRA OPERATING EXPENSES 288,221 284,279 896,308 500,035 1,488,837 1,280,262 2,667,124 GILI TRUST-07 Bond Principal 47,158 51,009 55,158 59,654 31,627 31,627 - Bond Interest 18,622 14,779 10,622 6,126 1,263 1,263 - Other Expenditures - - - TOTAL GILI EXPENSES 65,780 65,788 65,780 65,780 32,890 32,890 - CHERRY PARK LTD II-08 Bond Principal 36,824 39,729 42,864 46,245 49,894 49,894 53,831 Bond Interest 22,356 19,451 16,316 12,935 9,286 9,286 5,349 TOTAL CHERRY PARK EXPENSES 59,180 59,180 59,180 59,180 59,180 59,180 59,180 GENTLE DENTAL-09 Bond Principal 2,127 2,236 2,395 2,566 2,760 2,790 2,986 Bond Interest 2,075 1,966 1,807 1,636 1,442 1,412 1,216 TOTAL GENTLE DENTAL 4,202 4,202 4,202 4,202 4,202 4,202 4,202 PROCON TIF-10 Bond Principal 10,601 9,064 10,183 10,829 11,782 11,638 12,467 Bond Interest 8,561 10,098 8,979 8,333 7,380 7,524 6,695 TOTAL PROCON TIF 19,162 19,162 19,162 19,162 19,162 19,162 19,162 WALNUT HOUSING PROJECT-11 Bond Principal 33,055 35,321 37,743 40,331 43,096 43,096 46,051 Bond Interest 41,417 39,151 36,729 34,141 31,376 31,376 28,421 TOTAL WALNUT HOUSING PROJECT 74,472 74,472 74,472 74,472 74,472 74,472 74,472 Grand Island Regular Meeting - 7/31/2012 Page 45 / 48 COMMUNITY REDEVELOPMENT AUTHORITY FY 2012- 2013 BUDGET 2008 2009 2010 2011 2012 2012 2013 Actual Actual Actual Actual Budget Forecasted Budget BRUNS PET GROOMING-12 Bond Principal 9,536 9,575 10,502 6,727 11,000 13,170 13,500 Bond Interest - - - - - TOTAL BRUNS PET GROOMING 9,536 9,575 10,502 6,727 11,000 13,170 13,500 GIRARD VET CLINIC-13 Bond Principal 6,242 4,940 13,855 350 14,000 14,037 14,500 Bond Interest - - - - - TOTAL GIRARD VET CLINIC 6,242 4,940 13,855 350 14,000 14,037 14,500 GEDDES ST APTS - PROCON-14 Bond Principal - 1,195 14,809 29,185 30,000 28,591 30,000 Bond Interest - - - - - TOTAL GEDDES ST APTS - PROCON - 1,195 14,809 29,185 30,000 28,591 30,000 SOUTHEAST CROSSINGS-15 Bond Principal - 8,866 12,109 12,200 14,000 8,674 12,000 Bond Interest - - - - - TOTAL SOUTHEAST CROSSINGS - 8,866 12,109 12,200 14,000 8,674 12,000 POPLAR STREET WATER-16 Auditing & Accounting - - 1,000 - Contract Services - - 89,899 38,129 Bond Principal - - - - 1,000 1,826 2,500 Bond Interest - - - - - TOTAL POPLAR STREET WATER - - 90,899 38,129 1,000 1,826 2,500 CASEY'S FIVE POINTS-17 Bond Principal - 4,429 15,000 8,670 10,000 Bond Interest - - - - - TOTAL CASEY'S FIVE POINTS - - - 4,429 15,000 8,670 10,000 SOUTHPOINTE HOTEL-18 Bond Principal - 41,479 22,000 88,000 90,000 Bond Interest - - - - - TOTAL SOUTHPOINTE HOTEL - - - 41,479 22,000 88,000 90,000 TODD ENCK PROJECT - 19 Bond Principal - 1,622 5,500 3,126 2,500 Bond Interest - - - - - TOTAL TODD ENCK PROJECT - - - 1,622 5,500 3,126 2,500 SKAGWAY - 20 Auditing & Accounting - - - 1,000 Bond Principal - - - 55,000 Bond Interest - - - - - TOTAL SKAGWAY - - - 1,000 - - 55,000 JOHN SCHULTE CONSTRUCTION-21 Bond Principal - - - - 3,000 4,448 6,000 Bond Interest - - - - - TOTAL JOHN SCHULTE CONSTRUCTION - - - - 3,000 4,448 6,000 PHARMACY PROPERTIES INC-22 Bond Principal - - - - 8,000 5,347 11,000 Bond Interest - - - - TOTAL PHARMACY PROPERTIES INC - - - - 8,000 5,347 11,000 KEN-RAY LLC-23 Bond Principal - - - - 5,000 - 34,000 Bond Interest - - - - - TOTAL KEN-RAY LLC - - - - 5,000 - 34,000 TOTAL EXPENSES 526,795 531,658 1,261,276 857,952 1,807,243 1,646,057 3,105,140 Grand Island Regular Meeting - 7/31/2012 Page 46 / 48 Paid this fiscal Jerke Façade 59400 Downtown BID 60000 Primitive Touch 70443 Skagway 200000 Wayside Horns 144500 Total 534343 To Be Paid this fiscal Chief 100000 Denny's 100000 Fonner Park 96312 YMCA 48000 Grand 200000 Lincoln Pool 80000 Total 624312 Total 1158655 Outstanding Projects due in 2013 Façade Skagway 100000 Grand 100000 Chocolate Bar 118000 318000 Other Downtown 37500 Fonner 96500 134000 Total 452000 TIF Projects to Add Skagway Arnold Wenn Token Properties LLC (Ruby) Stratford Plaza LLC EIG Grand Island LLC Grand Island Regular Meeting - 7/31/2012 Page 47 / 48 COMMUNITY REDEVELOPMENT AUTHORITY GRAND ISLAND, NEBRASKA RESOLUTION #143 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA (the “Authority”) RECOMMENDING A LEVY ALLOCATION BY THE CITY OF GRAND ISLAND TO THE AUTHORITY FOR ITS BUDGETARY PURPOSES IN FISCAL YEAR 2012-2013 AS AUTHORIZED BY NE. REV. STATUTES 77-3443, AS AMENDED. WHEREAS, the Mayor and City Council of the City of Grand Island, Nebraska (the “City”), by its Ordinance passed and adopted June 27, 1994, created the Community Redevelopment Authority of the City of Grand Island, Nebraska, pursuant to Sections 18-2101 through 18-2153 of the Nebraska Community Development Law; Reissue Revised Statutes of Nebraska, as amended (the “Act”); WHEREAS, on July 31, 2012, the members of the Community Redevelopment Authority of the City of Grand Island considered its budget for fiscal year 2012-2013 and determined that a request for personal and real property tax in the amount of $647,242 is necessary to accomplish the statutory purposes of the Authority in the upcoming fiscal year and that the accomplishment of these purposes is in the best interests of the City of Grand Island. NOW, THEREFORE BE IT RESOLVED THAT, by copy of this Resolution delivered to the City of Grand Island on this date, the Authority hereby requests and recommends that the City of Grand Island, Nebraska, as a part of the City maximum levy of $.45 per $100 of taxable valuation of property, as authorized by the Revised Statutes of Nebraska, Section 77-3442, authorize a 2012-2013 levy allocation which will provide $647,242 in personal and real property tax funds to the Community Redevelopment Authority of the City of Grand Island for the accomplishment of the purposes for which it was created. Passed and approved by the Authority this 31th day of July, 2012. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA By:_________________________________ Chair ATTEST: _____________________________ Director Grand Island Regular Meeting - 7/31/2012 Page 48 / 48