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10-10-2012 Community Redevelopment Authority Regular Meeting Packet Community Redevelopment Authority (CRA) Wednesday, October 10, 2012 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 - 10/10/2012 Page 1 / 56 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 - 10/10/2012 Page 2 / 56 Community Redevelopment Authority (CRA) Wednesday, October 10, 2012 Regular Meeting Item A1 Agenda Staff Contact: Chad Nabity Grand Island Regular Meeting - 10/10/2012 Page 3 / 56 AGENDA Wednesday October 10, 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 September 19, 2012 Meeting. 3.Approval of Financial Reports. 4.Approval of Bills. 5.Review of Committed Projects and CRA Properties. 6.Consideration of a Façade Request from Vince Mendez, 2404 W Lincoln Hwy & 2403-2423 W Lincoln Hwy, Grand Island. 7.Consideration of a Façade Request from Ron Nitzel 108, 110 & 112 W 4TH St., Grand Island. 8.Consideration of a Resolution to forward a Redevelopment Plan Amendment to the Hall County Regional Planning Commission for 809-811 S Kimball, Grand Island, Token Properties, LLC. Resolution No. 151. 9.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 809-811 S Kimball, Grand Island, Token Properties, LLC. Resolution No. 152. 10.Discussion concerning Purchase/Sale of Real Estate of property. 11.Approve Resolution or Resolutions to Purchase/Sell Real Estate. Grand Island Regular Meeting - 10/10/2012 Page 4 / 56 12.Election of Officers 13.Directors Report 14.Adjournment Next Meeting November 14, 2012 The CRA may go into closed session for any agenda item as allowed by state law. Grand Island Regular Meeting - 10/10/2012 Page 5 / 56 Community Redevelopment Authority (CRA) Wednesday, October 10, 2012 Regular Meeting Item B1 Meeting Minutes Staff Contact: Chad Nabity Grand Island Regular Meeting - 10/10/2012 Page 6 / 56 OFFICIAL PROCEEDINGS MINUTES OF COMMUNITY REDEVELOPMENT AUTHORITY MEETING OF September 19, 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 September 19, 2012 at City Hall 100 E First Street. Notice of the meeting was given in the August 10, 2012 Grand Island Independent. 1.CALL TO ORDER. Chairman Barry Sandstrom called the meeting to order at 4:03 p.m. The following members were present: Sue Pirnie and Tom Gdowski. Also present were; Director, Chad Nabity; Secretary, Rose Woods; Council Liaison, Vaughn Minton; Finance Director, Jaye Monter; and (Member Glen Murray arrived 4:35 p.m. Member Michele Fitzke was 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 August 15, 2012 meeting was made by Gdowski and seconded by Pirnie. 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 August 1, 2012 through August 30, 2012. Motion was made by Pirnie and seconded by Gdowski 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 Gdowski to approve the bills in the amount of $701,637.61. Upon roll call vote all present voted aye. Motion carried unanimously to approve the payment of bills totaling $701,637.61. 5.REVIEW OF COMMITTED PROJECTS & CRA PROPERTY. Nabity reviewed the Committed Projects. The Chocolate Bar was paid, as was Skagway, Chief and the first payment to The Grand. YMCA project is completed. A request for payment should be coming in. The Howard Johnson Façade is nearing completion; a request for payment should be coming in. Grand Island Regular Meeting - 10/10/2012 Page 7 / 56 6. CONSIDERATION OF INTENT. Consideration to approve Resolution 149 and to enter into a Redevelopment Contract with Token Properties, LLC, for redevelopment of an area within the city limits of the City of Grand Island, 125 N Carey Street, Grand Island. The CRA passed Resolution 139 notifying City Council of their intent to enter into a redevelopment contract at their meeting on July 11, 2012. The Hall County Regional Planning Commission met on August 1, 2012 and passed Resolution 2012-07 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 2012-235 approving the redevelopment plan at their meeting on August 28, 2012. A motion to approve Resolution 149 and enter into a Redevelopment contract with Token Properties, LLC was made by Gdowski and seconded by Pirnie. Upon roll call vote (Pirnie, Gdowski and Sandstrom) voted aye. Motion carried unanimously. 7.CONSIDERATION OF INTENT. Consideration to approve Resolution 150 and to enter into a Redevelopment Contract with Gordman Grand Island LLC, for redevelopment of an area within the city limits of the City of Grand Island. The CRA passed Resolution 141 notifying City Council of their intent to enter into a redevelopment contract at their meeting on July 31, 2012. The Hall County Regional Planning Commission met on August 1, 2012 and passed Resolution 2012-08 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 2012-236 approving the redevelopment plan at their meeting on August 28, 2012. A motion to approve Resolution 150 and enter into a Redevelopment contract with Gordman Grand Island LLC was made by Gdowski and seconded by Pirnie. Upon roll call vote all present voted aye. Motion carried unanimously. 8.CONSIDERATION OF RESOLUTION 144. Consideration of a Resolution to forward a Site Specific redevelopment plan to the Hall County Regional Planning Commission for 1135 S Locust. 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 144. A motion for approval of Resolution No. 144 to forward the Site Specific Redevelopment Plan to the Hall County Regional Planning Commission for 1135 S Locust was made by Pirnie and seconded by Gdowski. Upon roll call vote all present voted aye. Motion carried unanimously. Grand Island Regular Meeting - 10/10/2012 Page 8 / 56 9.CONSIDERATION OF RESOLUTION 145. 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 1135 S Locust. A MOTION to approve Resolution No 145. A motion for approval of Resolution No. 145 to forward the Site Specific Redevelopment Plan to the City Council for 1135 S Locust 125 N Carey was made by Gdowski and seconded by Pirnie. Upon roll call vote all present voted aye. Motion carried unanimously. Glen Murray joined the meeting at 4:35 p.m. 10.CONSIDERATION OF RESOLUTION 146. Consideration of a Resolution to forward a Site Specific redevelopment plan to the Hall County Regional Planning Commission for 1103 St. Paul Rd. 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 146. A motion for approval of Resolution No. 146 to forward the Site Specific Redevelopment Plan to the Hall County Regional Planning Commission for 1103 St. Paul Rd. was made by Gdowski subject to language by the CRA included in the contract by Habitat and seconded by Pirnie. Upon roll call vote all present voted aye. Motion carried unanimously. 11.CONSIDERATION OF RESOLUTION 147. 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 1103 St. Paul Rd., A MOTION to approve Resolution No. 147. A motion for approval of Resolution No. 147 to forward the Site Specific Redevelopment Plan to the City Council for 1103 St. Paul Rd. was made by Gdowski and seconded by Murray. Upon roll call vote all present voted aye. Motion carried unanimously. 12.CONSIDERATION OF RESOLUTION 148. Consideration of a Resolution to approve bonds for the Lincoln Pool. Bruce Lefler from Ameritas investment corp explained the process to the board. Grand Island Regular Meeting - 10/10/2012 Page 9 / 56 A motion for approval of Resolution 148 to approve bond issuance for the Lincoln Pool was made by Pirnie and seconded by Murray. Upon roll call vote all present voted aye. Motion carried unanimously. 13.ADJOURN TO EXECUTICE SESSION TO DISCUSS NEGOTIATIONS. NONE 14.APPROVE RESOLUTION OR RESOLUTIONS TO PURCHASE/SELL PROPERTY. NONE 15.DIRECTORS REPORT. 10. ADJOURNMENT. Sandstrom adjourned the meeting at 4:55 p.m. The next meeting is scheduled for October 10, 2012 at 4:00 p.m. Respectfully submitted Chad Nabity Director Grand Island Regular Meeting - 10/10/2012 Page 10 / 56 Community Redevelopment Authority (CRA) Wednesday, October 10, 2012 Regular Meeting Item C1 Financial Reports Staff Contact: Chad Nabity Grand Island Regular Meeting - 10/10/2012 Page 11 / 56 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF SEPTEMBER 2012 MONTH ENDED 2011-2012 2012 REMAINING SEPTEMBER 2012 YEAR TO DATE BUDGET BALANCE CONSOLIDATED Beginning Cash 719,142 923,823 923,823 REVENUE: Property Taxes - CRA 108,294 465,136 437,618 - Property Taxes - Lincoln Pool 48,560 154,234 201,787 47,553 Property Taxes -TIF's 45,788 404,016 318,406 - Loan Proceeds - - - - Interest Income - CRA 20 4,667 8,000 3,333 Interest Income - TIF'S 10 676 - Land Sales - 1,532 70,000 68,468 Other Revenue - CRA 2,476 12,954 10,000 - Other Revenue - TIF's - 9,553 1,000 TOTAL REVENUE 205,149 1,052,768 1,046,811 119,353 TOTAL RESOURCES 924,291 1,976,591 1,970,634 119,353 EXPENSES Auditing & Accounting - 4,025 5,000 975 Legal Services 150 2,187 10,000 7,813 Consulting Services - - 10,000 10,000 Contract Services 2,771 44,428 55,000 10,572 Printing & Binding - - 1,000 1,000 Other Professional Services - 7,599 5,000 (2,599) General Liability Insurance - - 250 250 Postage 47 328 200 (128) Matching Grant - - - - Legal Notices 179 1,979 800 (1,179) Licenses & Fees - - - - Travel & Training - 161 1,000 839 Other Expenditures 796 796 500 (296) Office Supplies - - 500 500 Supplies - - 300 300 Land - - 100,000 100,000 Bond Principal - Lincoln Pool 180,658 180,658 201,787 21,129 Façade Improvement 516,536 1,146,639 987,500 (159,139) South Locust - - - - Alleyway Improvement - - - - Other Projects - 111,000 111,000 Bond Principal 36,644 350,317 266,659 (83,658) Bond Interest - 50,965 50,747 (218) Interest Expense - - - - TOTAL EXPENSES 737,781 1,790,082 1,807,243 17,161 INCREASE(DECREASE) IN CASH (532,633) (737,314) (760,432) ENDING CASH 186,509 186,509 163,391 - CRA CASH 152,203 LINCOLN POOL CASH (26,424) TIF CASH 60,730 Total Cash 186,509 CHECKING 189,509 INVESTMENTS - Total Cash 189,509 Grand Island Regular Meeting - 10/10/2012 Page 12 / 56 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF SEPTEMBER 2012 MONTH ENDED 2011-2012 2012 REMAINING SEPTEMBER 2012 YEAR TO DATE BUDGET BALANCE CRA GENERAL OPERATIONS: Property Taxes - CRA 108,294 465,136 437,618 (27,518) Property Taxes - Lincoln Pool 48,560 154,234 201,787 47,553 Interest Income 20 4,667 8,000 3,333 Land Sales - 1,532 70,000 68,468 Other Revenue & Motor Vehicle Tax 2,476 12,954 10,000 (2,954) TOTAL 159,351 638,523 727,405 88,882 GILI TRUST Property Taxes - 32,019 32,890 871 Interest Income - 511 - - Other Revenue - - - - TOTAL - 32,530 32,890 871 CHERRY PARK LTD II Property Taxes - 64,641 59,180 - Interest Income 10 157 - - Other Revenue - - - - TOTAL 10 64,797 59,180 - GENTLE DENTAL Property Taxes - 161 4,202 4,041 Interest Income 0 1 - - Other Revenue - - - - TOTAL 0 162 4,202 4,041 PROCON TIF Property Taxes 9,145 32,173 19,162 - Interest Income 0 2 - - Other Revenue - 233 - - TOTAL 9,145 32,408 19,162 - WALNUT HOUSING PROJECT Property Taxes - 65,147 74,472 9,325 Interest Income - 6 - - Other Revenue - 9,320 - - TOTAL - 74,473 74,472 9,325 BRUNS PET GROOMING Property Taxes 6,497 19,667 11,000 - Interest Income - - - - Other Revenue - - - - TOTAL 6,497 19,667 11,000 - GIRARD VET CLINIC Property Taxes 4,698 18,736 14,000 - Interest Income - - - - Other Revenue - - - - TOTAL 4,698 18,736 14,000 - Grand Island Regular Meeting - 10/10/2012 Page 13 / 56 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF SEPTEMBER 2012 MONTH ENDED 2011-2012 2012 REMAINING SEPTEMBER 2012 YEAR TO DATE BUDGET BALANCE GEDDES ST APTS-PROCON Property Taxes 13,332 41,923 30,000 (11,923) Interest Income - - - - Other Revenue - - - - TOTAL 13,332 41,923 30,000 (11,923) SOUTHEAST CROSSING Property Taxes 3,942 12,616 14,000 1,384 Interest Income - - - - Other Revenue - - - - TOTAL 3,942 12,616 14,000 1,384 Poplar Street Water Property Taxes 226 2,052 1,000 (1,052) Interest Income - - - - Other Revenue - - 1,000 1,000 TOTAL 226 2,052 2,000 (52) CASEY'S @ FIVE POINTS Property Taxes - 8,670 15,000 6,330 Interest Income - - - - Other Revenue - - - - TOTAL - 8,670 15,000 6,330 SOUTH POINTE HOTEL PROJECT Property Taxes - 85,341 22,000 - Interest Income - - - - Other Revenue - - - - TOTAL - 85,341 22,000 - TODD ENCK PROJECT Property Taxes 2,932 6,059 5,500 (559) Interest Income - - - - Other Revenue - - - - TOTAL 2,932 6,059 5,500 (559) JOHN SCHULTE CONSTRUCTION Property Taxes - 4,449 3,000 - Interest Income - - - - Other Revenue - - - - TOTAL - 4,449 3,000 - PHARMACY PROPERTIES INC Property Taxes 5,016 10,363 8,000 (2,363) Interest Income - - - - Other Revenue - - - - TOTAL 5,016 10,363 8,000 (2,363) KEN-RAY LLC Property Taxes - - 5,000 5,000 Interest Income - - - - Other Revenue - - - - TOTAL - - 5,000 5,000 Grand Island Regular Meeting - 10/10/2012 Page 14 / 56 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF SEPTEMBER 2012 MONTH ENDED 2011-2012 2012 REMAINING SEPTEMBER 2012 YEAR TO DATE BUDGET BALANCE SKAGWAY Property Taxes - - - - Interest Income - - - - Other Revenue - - - - TOTAL - - - - TOTAL REVENUE 205,149 1,052,768 1,046,811 100,937 EXPENSES CRA GENERAL OPERATIONS: Auditing & Accounting - 4,025 5,000 975 Legal Services 150 2,187 10,000 7,813 Consulting Services - - 10,000 10,000 Contract Services 2,771 44,428 55,000 10,572 Printing & Binding - - 1,000 1,000 Other Professional Services - 7,599 5,000 (2,599) General Liability Insurance - - 250 250 Postage 47 328 200 (128) Matching Grant - - - - Legal Notices 179 1,979 800 (1,179) Licenses & Fees - - - - Travel & Training - 161 1,000 839 Other Expenditures 796 796 500 (296) Office Supplies - - 500 500 Supplies - - 300 300 Land - - 100,000 100,000 Bond Principal - Lincoln Pool - - 201,787 201,787 PROJECTS Façade Improvement 516,536 1,146,639 987,500 (159,139) South Locust - - - - Alleyway Improvement - - - - Other Projects 180,658 180,658 111,000 (69,658) TOTAL CRA EXPENSES 701,138 1,388,800 1,489,837 101,037 GILI TRUST Bond Principal - 33,066 31,627 (1,439) Bond Interest - 1,325 1,263 (62) Other Expenditures - - - - TOTAL GILI EXPENSES - 34,390 32,890 (1,500) CHERRY PARK LTD II Bond Principal - 49,894 49,894 (0) Bond Interest - 9,286 9,286 0 TOTAL CHERRY PARK EXPENSES - 59,180 59,180 - GENTLE DENTAL Bond Principal - 2,745 2,760 15 Bond Interest - 1,457 1,442 (15) TOTAL GENTLE DENTAL - 4,202 4,202 (0) Grand Island Regular Meeting - 10/10/2012 Page 15 / 56 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF SEPTEMBER 2012 MONTH ENDED 2011-2012 2012 REMAINING SEPTEMBER 2012 YEAR TO DATE BUDGET BALANCE PROCON TIF Bond Principal - 11,641 11,782 141 Bond Interest - 7,521 7,380 (141) TOTAL PROCON TIF - 19,162 19,162 0 WALNUT HOUSING PROJECT Bond Principal - 43,096 43,096 (0) Bond Interest - 31,376 31,376 0 - - - TOTAL WALNUT HOUSING - 74,472 74,472 0 BRUNS PET GROOMING Bond Principal 6,497 19,667 11,000 (8,667) Bond Interest - - - - TOTAL BRUNS PET GROOMING 6,497 19,667 11,000 (8,667) GIRARD VET CLINIC Bond Principal 4,698 18,736 14,000 (4,736) Bond Interest - - - - TOTAL GIRARD VET CLINIC 4,698 18,736 14,000 (4,736) GEDDES ST APTS - PROCON Bond Principal 13,332 41,923 30,000 (11,923) Bond Interest - - - - TOTAL GEDDES ST APTS - PROCON 13,332 41,923 30,000 (11,923) SOUTHEAST CROSSINGS Bond Principal 3,942 12,616 14,000 1,384 Bond Interest - - - - TOTAL SOUTHEAST CROSSINGS 3,942 12,616 14,000 1,384 POPLAR STREET WATER Bond Principal 226 2,052 - (2,052) Bond Interest - - - - Auditing & Accounting - - - - Contract Services - - - - TOTAL POPLAR STREET WATER 226 2,052 - (2,052) Grand Island Regular Meeting - 10/10/2012 Page 16 / 56 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF SEPTEMBER 2012 MONTH ENDED 2011-2012 2012 REMAINING SEPTEMBER 2012 YEAR TO DATE BUDGET BALANCE CASEY'S @ FIVE POINTS Bond Principal - 8,670 15,000 6,330 Bond Interest - - - - TOTAL CASEY'S @ FIVE POINTS - 8,670 15,000 6,330 SOUTH POINTE HOTEL PROJECT Bond Principal - 85,341 22,000 (63,341) Bond Interest - - - - TOTAL SOUTH POINTE HOTEL PROJECT - 85,341 22,000 (63,341) TODD ENCK PROJECT Bond Principal 2,932 6,059 5,500 (559) Bond Interest - - - - TOTAL TODD ENCK PROJECT 2,932 6,059 5,500 (559) JOHN SCHULTE CONSTRUCTION Bond Principal - 4,449 3,000 (1,449) Bond Interest - - - - Auditing & Accounting - - - - TOTAL JOHN SCHULTE CONSTRUCITON - 4,449 3,000 (1,449) PHARMACY PROPERTIES INC Bond Principal 5,016 10,363 8,000 (2,363) Bond Interest - - - - Auditing & Accounting - - - - TOTAL PHARMACH PROPERTIES INC 5,016 10,363 8,000 (2,363) KEN-RAY LLC Bond Principal - - 5,000 5,000 Bond Interest - - - - Auditing & Accounting - - - - TOTAL KEN-RAY LLC - - 5,000 5,000 SKAGWAY Bond Principal - - - - Bond Interest - - - - Auditing & Accounting - - - - TOTAL SKAGWAY - - - - TOTAL EXPENSES 737,781 1,790,082 1,807,243 17,161 Grand Island Regular Meeting - 10/10/2012 Page 17 / 56 Community Redevelopment Authority (CRA) Wednesday, October 10, 2012 Regular Meeting Item D1 BIlls Staff Contact: Chad Nabity Grand Island Regular Meeting - 10/10/2012 Page 18 / 56 10-Oct-12 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 $ 1,913.63 Accounting Oct, Nov, Dec $ 375.00 Officenet Inc. Postage $ 18.62 Lawnscape $ 32.00 BID #7 Assessment 3235 S Locust $ 2,087.81 Grand Island Independent monthly notices $ 464.21 Lincoln Pool $ 8,023.40 Mayer, Burns, Koenig & Janulewicz Legal Services Total: $ 12,914.67 Grand Island Regular Meeting - 10/10/2012 Page 19 / 56 Community Redevelopment Authority (CRA) Wednesday, October 10, 2012 Regular Meeting Item F1 Personal Automotive - 2404 W Lincoln Hwy Facade Request Staff Contact: Chad Nabity Grand Island Regular Meeting - 10/10/2012 Page 20 / 56 Grand Island Regular Meeting - 10/10/2012 Page 21 / 56 Grand Island Regular Meeting - 10/10/2012 Page 22 / 56 Grand Island Regular Meeting - 10/10/2012 Page 23 / 56 Grand Island Regular Meeting - 10/10/2012 Page 24 / 56 Grand Island Regular Meeting - 10/10/2012 Page 25 / 56 Grand Island Regular Meeting - 10/10/2012 Page 26 / 56 Grand Island Regular Meeting - 10/10/2012 Page 27 / 56 Grand Island Regular Meeting - 10/10/2012 Page 28 / 56 Grand Island Regular Meeting - 10/10/2012 Page 29 / 56 Grand Island Regular Meeting - 10/10/2012 Page 30 / 56 Community Redevelopment Authority (CRA) Wednesday, October 10, 2012 Regular Meeting Item F2 Ron Nitzel & Company - 112 W 4th St Facade Request Staff Contact: Chad Nabity Grand Island Regular Meeting - 10/10/2012 Page 31 / 56 Grand Island Regular Meeting - 10/10/2012 Page 32 / 56 Grand Island Regular Meeting - 10/10/2012 Page 33 / 56 Grand Island Regular Meeting - 10/10/2012 Page 34 / 56 Grand Island Regular Meeting - 10/10/2012 Page 35 / 56 Grand Island Regular Meeting - 10/10/2012 Page 36 / 56 Community Redevelopment Authority (CRA) Wednesday, October 10, 2012 Regular Meeting Item H1 Token Properties TIF Request - 809-811 S Kimball Staff Contact: Chad Nabity Grand Island Regular Meeting - 10/10/2012 Page 37 / 56 Grand Island Regular Meeting - 10/10/2012 Page 38 / 56 Grand Island Regular Meeting - 10/10/2012 Page 39 / 56 Grand Island Regular Meeting - 10/10/2012 Page 40 / 56 Grand Island Regular Meeting - 10/10/2012 Page 41 / 56 Grand Island Regular Meeting - 10/10/2012 Page 42 / 56 COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA RESOLUTION NO. 151 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 - 10/10/2012 Page 43 / 56 EXHIBIT 1 REDEVELOPMENT PLAN AMENDMENT Grand Island Regular Meeting - 10/10/2012 Page 44 / 56 Site Specific Redevelopment Plan Grand Island CRA Area #10 October 2012 The Community Redevelopment Authority (CRA) of the City of Grand Island intends to amend the Redevelopment Plan for Area #10 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 #10. Executive Summary: Project Description THE DEMOLITION OF THE EXISTING SINGLE FAMILY HOUSE AT 809 AND 811 S KIMBALL AND THE SUBSEQUENT ACQUISITION, 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 two new duplexes. 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, 2014 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 809 and 811 S Kimball Avenue in south central Grand Island. The attached map identifies the subject property and the surrounding land uses: Legal Descriptions Lots 65 and 66 of Hawthorne Place in the City of Grand Island, Hall County, Nebraska. Grand Island Regular Meeting - 10/10/2012 Page 45 / 56 Grand Island Regular Meeting - 10/10/2012 Page 46 / 56 The tax increment will be captured for the tax years the payments for which become delinquent in years 2015 through 2029 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, 2014. 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 - 10/10/2012 Page 47 / 56 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 August 14, 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 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: This Site Specific Redevelopment Plan for Area #10 provides for real property acquisition. There is no proposed acquisition by the authority. It is expected that the developer will or has recently acquired the property. 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. All of the area around the site is planned for low to medium density residential uses. [§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 - 10/10/2012 Page 48 / 56 City of Grand Island Future Land Use Map Grand Island Regular Meeting - 10/10/2012 Page 49 / 56 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 Use. 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. There are two lots of record at this site and a residential dwelling can be built on each lot. The proposed units including the attached garages will cover about 2,400 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] Grand Island Regular Meeting - 10/10/2012 Page 50 / 56 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 or necessary. [§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 after making an application for tax increment financing. The cost of property acquisition $16,500 is included as a TIF eligible expense. Costs for demolition, site preparation, landscaping, concrete and contingencies of $17,422 are included as a TIF eligible expense. Engineering and design fees are estimated at $700 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 $1000 are included as a TIF eligible expense. The total of eligible expenses for this project is $38,372. 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 $38,372 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, 2015 through December 2029. 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, Grand Island Regular Meeting - 10/10/2012 Page 51 / 56 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 2012 and December of 2013. Excess valuation should be available for this project for 15 years beginning with the 2015 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 4 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 $18,574. The proposed demolition and subsequent construction of duplexes at this location will result in an additional $141,426 of taxable valuation based on the valuation of similar structures building by Token Properties, LLC. No tax shifts are anticipated from the project. The Grand Island Regular Meeting - 10/10/2012 Page 52 / 56 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 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 two (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, 2012 and September 1, of 2013. The base tax year should be calculated on the value of the property as of January 1, 2013. Excess valuation should be available for this project for 15 years beginning in 2015 with taxes due 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 $38,372 the projected amount of increment based upon the anticipated value of the project and current Grand Island Regular Meeting - 10/10/2012 Page 53 / 56 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 $38,372 on TIF eligible activities. See Attached Building Plans Grand Island Regular Meeting - 10/10/2012 Page 54 / 56 COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA RESOLUTION NO. 152 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 #10, from Token Properties, 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 #10; 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 - 10/10/2012 Page 55 / 56 Exhibit 1 Attach a copy of the Redevelopment Contract Grand Island Regular Meeting - 10/10/2012 Page 56 / 56