05-29-2013 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, May 29, 2013
Regular Meeting Packet
Board Members:
Michelle Fitzke
Tom Gdowski
Barry Sandstrom
Sue Pirnie
Glen Murray
4:00 PM
City Hall
100 E First St
Grand Island Regular Meeting - 5/29/2013 Page 1 / 146
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.
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Community Redevelopment
Authority (CRA)
Wednesday, May 29, 2013
Regular Meeting
Item A1
Agenda
Staff Contact: Chad Nabity
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AGENDA
Wednesday, May 29, 2013
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 April 10, 2013 Meeting.
3.Approval of Financial Reports.
4.Approval of Bills.
5.Review of Committed Projects and CRA Properties.
6.Consideration of Redevelopment Contract for 1119 S Adams, Chief Industries.
Resolution No. 158.
7.Consideration of a Resolution to forward a Redevelopment Plan Amendment
to the Hall County Regional Planning Commission for 2422 N Wheeler Ave.,
Grand Island, Pridon, LLC. Resolution No. 159.
8.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 2422 N Wheeler Ave., Pridon, LLC. Resolution No. 160.
9.Consideration of a Resolution to forward a Redevelopment Plan Amendment
to the Hall County Regional Planning Commission for Copper Creek Estates,
Guarantee Group, LLC. Resolution No. 161.
10.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 Copper Creek Estates, Guarantee Group, LLC. Resolution No.
162.
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11.Consideration of a Resolution of intent to enter into a Site Specific
Redevelopment Contract Modification & Approval of related actions 30 day
notice to City Council for 2018-2020 Blake Street and 233-235 Darr Ave. for
Token Properties, LLC Resolution No. 163.
12.2013 Housing Study
13.Discussion concerning Purchase/Sale of Real Estate of property.
14.Approve Resolution or Resolutions to Purchase/Sell Real Estate.
15.Directors Report
16.Adjournment
Next Meeting June 12, 2013
The CRA may go into closed session for any agenda item as allowed by state law.
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Community Redevelopment
Authority (CRA)
Wednesday, May 29, 2013
Regular Meeting
Item B1
Meeting Minutes
Staff Contact: Chad Nabity
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OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
April 10, 2013
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 April 10, 2013 at City Hall 100 E First Street. Notice of the meeting was given
in the April 6, 2013 Grand Island Independent.
1.CALL TO ORDER. Chairman Barry Sandstrom called the meeting to order
at 4:00 p.m. The following members were present: Sue Pirnie, Tom
Gdowski and Glen Murray. Also present were; Director, Chad Nabity;
Secretary, Rose Rhoads; Senior Account, Mike Kezeor.
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 Minutes for the March
13, 2013 meeting was made by Gdowski and seconded by Murray. Upon
roll call vote all present voted aye. Motion carried unanimously.
Sue joined the meeting at 1:03 p.m.
3.APPROVAL OF FINANCIAL REPORTS. Kezeor reviewed the financial
reports for the period of March 1, 2013 through March 31, 2013. Motion
was made by Murray 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 Murray to approve the bills in the
amount of $150,886.08. Upon roll call vote all present voted aye. Motion
carried unanimously to approve the payment of bills totaling $150,886.08.
5.REVIEW OF COMMITTED PROJECTS & CRA PROPERTY.
Nabity reviewed the Committed Projects.
6. ADJOURN TO EXECUTICE SESSION TO DISCUSS NEGOTIATIONS.
7. APPROVE RESOLUTION OR RESOLUTIONS TO PURCHASE/SELL
PROPERTY.
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8. DIRECTORS REPORT.
Nabity stated a TIF application had been received from Pridon and will be on
the Agenda for May as will a TIF application from Copper Creek (Ray
O’Connor).
9. ADJOURNMENT.
Murray adjourned the meeting at 1:23 p.m.
The next meeting is scheduled for May ?, 2013 at 4:00 p.m.
Respectfully submitted
Chad Nabity
Director
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Community Redevelopment
Authority (CRA)
Wednesday, May 29, 2013
Regular Meeting
Item C1
Financial Reports
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, May 29, 2013
Regular Meeting
Item D1
Bills
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 5/29/2013 Page 16 / 146
29-May-13
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 April
Accounting
Officenet Inc.
Postage
Lawnscape
Grand Island Independent monthly notices
JEO Consulting Lincoln Pool
Hausmann Construction, INC Lincoln Pool
Wells Fargo Bond Interest Payment
TIF Pass Through
Wilmar Realty, LLC Skagway TIF 320 N State St
Five Points Bank Bruns TIF
Platte Valley State Bank Token Prop. 213-215 Ruby
CRA Poplar Street water line
Platte Valley State Bank South Pointe Hotel
Heritage Bank Girard TIF
Five Points Bank Pharmacy Properties
Home Federal Geddes TIF
Home Federal Southeast Crossings
Ken-Ray LLC South Locust
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Casey's General Store Casey Five Points
Platte Valley State Bank Todd Enck Project
Plate Enterprises LLC 703 S Lincoln
Mayer, Burns, Koenig & Janulewicz Legal Services
Total:
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$ 2,970.54
$ 49.80
$ 57.00
$ 1,054.61
$ 2,935.00
$ 174,451.00
$ 15,104.70
$ 9,112.92
$ 219.44
$ 1,432.15
$ 337.07
$ 85,705.34
$ 4,941.71
$ 5,275.53
$ 450.27
$ 9,461.69
$ 22,144.44
TO: Community Redevelopment Authority Board Members
RE: Bills Submitted for Payment
Redevelopment Authority Treasurer for preparation of payment.
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$ 144.47
$ 3,084.33
$ 81.67
$ 339,013.68
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Community Redevelopment
Authority (CRA)
Wednesday, May 29, 2013
Regular Meeting
Item E1
Committed Projects
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, May 29, 2013
Regular Meeting
Item G1
Grant Request
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, May 29, 2013
Regular Meeting
Item H1
Pridon
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 5/29/2013 Page 26 / 146
BACKGROUND INFORMATION RELATIVE TO
TAX INCREMENT FINANCING REQUEST
Project Redeveloper Information
Business Name: Pridon LLC
__________________________________________________________________
____
Address: 102 Third Avenue NE _________________________
Hickory, NC 28601__________________________________________________
Telephone No.: 828-322-1296________ Fax No.:828-315-9964
____________________________________
Contact: Dane Whitworth
__________________________________________________________________
__________
Brief Description of Applicant’s Business: Developer of Federal
Properties________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
______________________________________
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Present Ownership Proposed Project Site: _Department of Vererans Affairs
____________________________________
__________________________________________________________________
___
Proposed Project: Building square footage, size of property, description of
buildings – materials, etc. Please attach site plan, if
available. One two story residential building (includes 20 one bedroom, 6 two bedroom
units) built on crawl space foundation; wood framed; brick, stone, vinyl veneer exterior.
The residential building has 29,862 total square feet of space, which includes 10,700 SF
of office and meeting/activity rooms. Property size is 4.6 acres.
A second and third phase of apartments is also planned within the next 5 years. This
would create an additional 56 units of housing.
If Property is to be Subdivided, Show Division Planned:
VI.Estimated Project Costs:
Acquisition Costs:
A. Land $
______________
B. Building
______________
Construction Costs:
A. Renovation or Building Costs: $2,492,200
______________
B. On-Site Improvements:$125,800
Streets, Parking, Landscaping 62,360
_____________
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Soft Costs:
A. Architectural & Engineering Fees:$154,900
______________
B. Financing Fees: $255,000
______________
C. Legal/Developer/Audit Fees:$530,910
______________
D. Contingency Reserves:$488,240
______________
E. Other (Please Specify)$43,500
Insurance, Market Study, Real estate services and taxes______________
TOTAL $4,152,910
______________
Total Estimated Market Value at Completion:$1,597,086
Tax Assessor’s Estimate ______________
Source of Financing:
A. Developer Equity:$
______________
B. Commercial Bank Loan:$
______________
Tax Credits:
1. N.I.F.A. $3,506,200
2. Historic Tax Credits $
______________
D. Industrial Revenue Bonds:$
Grand Island Regular Meeting - 5/29/2013 Page 29 / 146
______________
E. Tax Increment Assistance:
$495,000 based on the first phase with a total of $658,866 available based on additional
construction.
F. Other $
______________
Name, Address, Phone & Fax Numbers of Architect, Engineer and General Contractor
Architect: Rosemann and Associates – Dave Hendrikse
1526 Grand Boulevard
Kansas City, MO 64108
816-472-1448 (O) 816-472-4702 (Fax)
Engineer: Atriax PLLC – George Auten Jr.
PO Box 1629
Hickory NC 28603
828-315-9962 (O) 828-315-9964 (Fax)
General Contractor: Key Construction – Josh Kippenberger
741 West Second
Wichita KS 67203
316-263-9515 (O) 316-263-1161 (Fax)
_________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
______________________________________________________
Estimated Real Estate Taxes on Project Site Upon Completion of Project:
(Please Show Calculations)
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$33,000 for the first phase based on estimates from the Hall County Assessor.
The additional phases will add more valuation creating additional Tax Increment
and allowing this to project to be completed prior to the estimated 15 years.
Project Construction Schedule:
Construction Start Date: September 2013
_________________________________________________
Construction Completion Date: September 2014
___________________________________________
If Phased Project:
2014 Year 40 % Complete
2016 Year 70 % Complete
2018 Year 100% Complete
Phases 2 and 3 are subject to availability of funding.
XII.Please Attach Construction Pro Forma
XIII. Please Attach Annual Income & Expense Pro Forma
(With Appropriate Schedules)
TAX INCREMENT FINANCING REQUEST INFORMATION
Describe Amount and Purpose for Which Tax Increment Financing is Requested:
$495,000 based on the first phase and up to $658,866 for the overall project
Site Preparation $46,546
Utility Extensions $79,254
Streets, Sidewalks, Parking, Landscaping $62,360
Engineering: $39,900
Architecture: $115,000
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Environmental: $24,000
Legal: $6000
City Notice Fee: $1,000
Blighted Study: $2,500
Interest: $283,206
_______________________________________________________________________
_____________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_____________________________________________
Statement Identifying Financial Gap and Necessity for use of Tax Increment Financing
for Proposed Project: See Sources and Uses Schedule
_____________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________
Municipal and Corporate References (if applicable). Please identify all other
Municipalities, and other Corporations the Applicant has been involved with, or
has completed developments in, within the last five (5) years, providing contact
person, telephone and fax numbers for each: NONE
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__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
________________________
IV.Please Attach Applicant’s Corporate/Business Annual Financial Statements for
the Last Three Years.
Post Office Box 1968
Grand Island, Nebraska 68802-1968
Phone: 308 385-5240
Fax: 308 385-5423
Email: cnabity@grand-island.com
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COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 159
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, the 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 ___________, 2013.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By___________________________
Chairperson
ATTEST:
__________________________
Secretary
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EXHIBIT 1
REDEVELOPMENT PLAN AMENDMENT
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Redevelopment Plan Amendment
Grand Island CRA Area #11
April 2013
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to approve a Redevelopment Plan for Area #11 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 #11.
Executive Summary:
Project Description
THE INITIAL CONSTRUCTION OF 26 UNITS OF APARTMENTS (ALONG WITH
THE SUBSEQUENT CONSTRUCTION OF 52 MORE UNITS IN AT LEAST 2
PHASES) TARGETED TOWARDS VETERANS AND THEIR FAMILIES ON THE
CAMPUS OF THE VETERANS MEDICAL CENTER IN GRAND ISLAND,
NEBRASKA, SOUTH OF CAPITAL AVENUE BETWEEN BROADWELL AVENUE
AND WHEELER AVENUE AND THE SUBSEQUENT SITE WORK, UTILITY,
ENGINEERING, LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY
AT THIS LOCATION. ADDITIONAL APARTMENT UNITS MAY BE
CONSTRUCTED IN FUTURE PHASES DEPENDING ON FUNDING AND
MARKET DEMAND.
The developer intends to use Tax Increment Financing to aid in site development, for
apartments to be located on property to the north of the Veterans Medical Center. The
developer will be building 26 units of apartments in the initial phase of the project. The
developer plans to build and is contracted with the US Department of Veterans Affairs to
build a total of 78 units. While the property is owned by the United States Government,
and not subject to property taxes, this project will be leased by the developer and they
will be responsible for all local taxes. The increment from the new construction will be
used to make necessary site improvements and utility extensions to support this
development. This project would not be possible in an affordable manner without the use
of TIF. TIF is just one part of the financing package planned for this project. It will also
likely include the use of LIHTC funding if approved.
The site is owned by the U.S. Department of Veterans Affairs. All site work, demolition
and utilities will be paid for by the developer. The developer is responsible for and will
provide 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, 2015 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:
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Property Description (the “Redevelopment Project Area”)
This property is located just north of the Veteran’s Medical Center between Broadwell
Avenue and Wheeler Street and south of Capital Avenue in northern Grand Island. The
attached map identifies the subject property and the surrounding land uses:
Legal Descriptions Lot 1 and Lot 2 of Home Subdivision, in the City of
Grand Island, Hall County Nebraska.
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The tax increment will be captured for the tax years the payments for which become
delinquent in years 2015 through 2029 inclusive.
The increase will come from the development apartments on this property.
Increases are anticipated from at least 3 phases of this development. The anticipated
taxable valuation of this project at completion of the first phase is $1,597,086. At
final completion of this project, with 78 units of apartments the valuation should be
at least $4,500,000
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, 2015.
a. That portion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the redevelopment project valuation shall
be paid into the funds, of each such public body in the same proportion as all other taxes
collected by or for the bodies; and
b. That portion of the ad valorem tax on real property in the
redevelopment project in excess of such amount, if any, shall be allocated to and, when
collected, paid into a special fund of the Authority to pay the principal of; the interest on,
and any premiums due in connection with the bonds, loans, notes, or advances on money
to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such
Authority for financing or refinancing, in whole or in part, a redevelopment project.
When such bonds, loans, notes, advances of money, or indebtedness including interest
and premium due have been paid, the Authority shall so notify the County Assessor and
County Treasurer and all ad valorem taxes upon real property in such redevelopment
project shall be paid into the funds of the respective public bodies.
Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged
to the repayment of loans or advances of money, or the incurring of any indebtedness,
whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in
whole or in part, the redevelopment project, including the payment of the principal of,
premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness.
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Redevelopment Plan Amendment Complies with the Act:
The Community Development Law requires that a Redevelopment Plan and Project
consider and comply with a number of requirements. This Plan Amendment meets the
statutory qualifications as set forth below.
1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on 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 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:
This Redevelopment Plan Area #11 provides for real property acquisition. There is no
proposed acquisition by the authority. The developer is proposing to lease property for
improvements.
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 public use consistent with veteran’s services and the surrounding property
with Broadwell Avenue frontage is planned for mixed use commercial and general
commercial which would include multifamily 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)]
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City of Grand Island Future Land Use Map
Grand Island Regular Meeting - 5/29/2013 Page 41 / 146
d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned RO Residential Office. 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 uses for residential apartment units are consistent with the
Veterans Medical Center Campus and the development along Broadwell Avenue. The
multi-family residential is permitted in the current zoning district. [§18-2103(b) and §18-
2111]
e. Site Coverage and Intensity of Use
The RO zoning district allows for the development of as many dwelling units as will fit
on the property with a minimum of 2 parking spaces per dwelling unit. [§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. Water and sewer will need to be extended throughout the site to serve the
new buildings.
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 is owned by the U.S. Department of Veterans Affairs. It is used as open
space on the hospital campus. No individuals or families will be relocated as a result of
this project. Additional housing will be created by the 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.
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The developer has secured a lease from the U.S. Department of Veterans Affairs and won
the contract to build veteran’s housing at this site. The developer is estimating the costs
TIF eligible activities as shown below:
Cost for Tax Increment Financing Eligible Activities: Victory Apartments
Site Preparation $46,546
Utility Extensions $79,254
Streets, Sidewalks, Parking and Landscaping $62,360
Engineering $39,000
Architecture $115,000
Environment Review $24,000
Legal $6,000
City Notice Fees (Blight Study and TIF)$1000
Blight Study $2500
Interest on Associated Eligible Activities $283,206
Total Eligible Expenses $658,866
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 $658,866 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
31, 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,
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
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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 in fill development consistent with the existing and historic use of
this and surrounding properties. This will not significantly impact traffic near the site.
The development of multi-family residential on this property is consistent with the
property development along Broadwell Avenue and will provide a buffer between the
commercial space and the single family residential east to the east. 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 site preparation and new construction) is
anticipated to be completed between September 2013 and November of 2014. Excess
valuation should be available for this project for 15 years beginning with the 2015 tax
year.
9. Justification of Project
The Broadwell Corridor is a major entrance for the City of Grand Island from northern
Nebraska. Significant development has occurred along this corridor at the 5-Points area.
The State of Nebraska is currently considering redevelopment of the Nebraska Veteran’s
Home (Soldiers and Sailors Home) west of this site on the north side of Capital Avenue.
The development of additional Veteran’s services at this location may encourage the
redevelopment of that site as well. This is a gateway to the community and for many
people from outside the area is what they will use to judge our City.
Grand Island is always in need of additional quality housing units. The development of
26 rental units, and possibly more in the future, will provide a buffer between the
commercial space and the existing single family residential. This is infill development
with all necessary utilities and public improvements needed to support the development.
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 is not currently valued for property tax
assessment as it is owned by the U.S. Government and not subject to property taxes. The
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proposed development of these apartments will result in an estimated additional
$1,597,086 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 for up to 60 years after the end of the TIF
contract. After 75 years the project may be owned by the U.S. Department of Veterans
Affairs and no longer be subject to property taxes.
(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 need to be extended through the site but have sufficient capacity to
support the 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. The Veterans
Medical Center/US Department of Veteran’s Affairs maintains their own federal police
force and they will continue to be primary responders at these apartments. City police
will provide support and back up as necessary.
(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 along with long term support services jobs to benefit the
residents of the apartments. The project will also provide housing for homeless or near
homeless veterans that will be able to and expected to enter the employment market.
(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 should not have any measurable negative impacts on other employers or
employees in 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 will provide housing for Veterans of the U.S. armed services and their families
as they transition from active duty to civilian life. Services will be provided at this
location to make that transition as smooth as possible.
Time Frame for Development
Development of this project is anticipated to be completed between September of 2013
and November of 2014. The base tax year should be calculated on the value of the
property as of January 1, 2014. Excess valuation should be available for this project for
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15 years beginning in 2015. 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 $658,866 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 at least $658,866 on TIF eligible activities.
See Attached Building Plans (with TIF application)
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COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 160
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA, PROVIDING NOTICE OF INTENT TO ENTER INTO
A REDEVELOPMENT CONTRACT AFTER THE PASSAGE OF 30 DAYS AND OTHER MATTERS
WHEREAS, the 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 # 11, from Pridon, 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, the Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), is proposing to use Tax Increment Financing on a
project within redevelopment area # 11;
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 __________, 2013.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By ___________________________
Chairperson
ATTEST:
___________________
Secretary
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Exhibit 1
Attach a copy of the Redevelopment Contract
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Community Redevelopment
Authority (CRA)
Wednesday, May 29, 2013
Regular Meeting
Item H2
Guarantee Group LLC
Staff Contact: Chad Nabity
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COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 161
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, the 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 ___________, 2013.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By___________________________
Chairperson
ATTEST:
__________________________
Secretary
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EXHIBIT 1
REDEVELOPMENT PLAN AMENDMENT
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Redevelopment Plan Amendment
Grand Island CRA Area #12
May 2013
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to approve a Redevelopment Plan for Area #12 within the city, pursuant to
the Nebraska Community Development Law (the “Act”) and provide for the
financing of a specific infrastructure related project in Area #12.
Executive Summary:
Project Description
THE INITIAL CONSTRUCTION OF 25 UNITS OF SINGLE FAMILY HOMES
(ALONG WITH THE SUBSEQUENT CONSTRUCTION OF A TOTAL OF
APPROXIMATELY 620 UNITS AT A RATE OF BETWEEN 15 AND 30 UNITS PER
YEAR UNTIL THE PROJECT IS COMPLETE). THE HOMES TO BE
CONSTRUCTED WILL HAVE AN INTIAL SALE PRICE FROM $140,000 -
$145,000, IN 2013 AND 2014 AND MEET THESE MINIMUM SPECIFICATIONS:
1150 SQUARE FEET FINISHED FIRST FLOOR, FULL UNFINISHED
BASEMENT, 2 CAR ATTACHED GARAGE, KITCHEN APPLIANCES,
CENTRAL HEATING AND AIR CONDITIONING, LANDSCAPING AND
SPRINKLED LAWN.
THE HOUSES WILL BE CONSTRUCTED WITHIN THE COPPER CREEK
SUBDIVISION LOCATED SOUTH OF OLD POTASH HIGHWAY AND EAST OF
ENGLEMAN ROAD. THE PROJECT WILL INCLUDE THE PUBLIC
IMPROVEMENTS NECESSARY TO SUPPORT THIS DEVELOPMENT
INCLUDING BUT NOT LIMITED TO INSTALLATION OF STREET,
STORMWATER FACILITIES, WATER AND SANITARY SEWER UITILITIES,
ENGINEERING, SURVENYING, LANDSCAPING AND OTHER IMPROVEMENTS
AS NECESSARY. THE CONSTRUCTION OF ADDITIONAL UNITS AND ANY AD
VALORUM REVENUE GENERATED BY THOSE ADDITIONAL UNITS SHALL BE
SUBJECT TO SUBSEQUENT CONTRACTS BETWEEN THE CRA AND THE
DEVELOPER.
The developer intends to use Tax Increment Financing to aid in site development
including the purchase of the property, necessary site work, installation of streets, storm
sewer, sanitary sewer, water, other utilities and engineering, surveying and other
consultant costs associated with and necessary for the redevelopment of this property.
The developer intends to build single family homes ranging from 1150 to 1350 square
feet with an attached garage on each lot. The 2013 sale price of these homes will be
limited to between $140,000 and $145,000. The developer has presented 20 floor plans
each with 3 alternate exterior elevations. The developer will be building 25 units with
initial phase of the project and completing the infrastructure for the Copper Creek First
and Second Subdivisions. The property has been approved with a preliminary plat for
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620 units. The developer intends to install the infrastructure for this subdivision in at
least 2 phases with the first phase completing the infrastructure for the northern section of
the development, serving approximately 250 lots. The tax increment from the new home
construction will be used to purchase the property and make necessary site improvements
and utility extensions to support this development. This project would not be possible in
an affordable manner without the use of TIF.
The site has been optioned by Guarantee Group, LLC, subject to the approval of the use
of TIF for this development. All site work, demolition, streets and utilities will be paid
for by the developer. The developer is responsible for and will provide evidence that
they can secure adequate debt financing to cover the costs associated with the acquisition,
site work, engineering, surveying and utility and street infrastructure. The Grand Island
Community Redevelopment Authority (CRA) intends to pledge the ad valorem taxes
generated beginning January 1, 2015 towards the allowable costs and associated
financing for the acquisition, site work, streets and utility infrastructure. The CRA also
intends to continue pledging ad valorem taxes generated by future phases of this
development in future contracts for Tax Increment Financing during the life of this
project.
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 south of Old Potash Highway and east of Engleman Road in
northwest Grand Island. The attached map identifies the subject property and the
surrounding land uses:
Legal Descriptions ALL OF THE NW1/4, SECTION 23, TOWNSHIP 11,
NORTH, RANGE 10 WEST OF THE 6TH P.M., HALL COUNTY, NEBRASKA,
LESS AND EXCEPT MEYER’S SUBDIVISION, M AND M SUBDIVISION
AND THE EAST 35 FEET OF THE NW ¼.
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The tax increment will be captured for the tax years the payments for which become
delinquent beginning in years 2015 and ending upon expiration of the final contract for
construction of affordable housing.
The increase will come from the development single family homes on this property.
Increases are anticipated from at least 10 phases of this development and potentially from
as many as 40 phases depending on the number of housing units included in each
contract. The anticipated taxable valuation of this project at completion of the first phase
of 25 units is $3,500,000. The final valuation of this project with 620 housing units at
$140,000 per unit would be $86,800,000. The actual final valuation will be subject to
appreciation and inflationary forces over the course of the development timeframe.
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, 2015 and
the effective date of each subsequent contract associated with this redevelopment plan.
a. That portion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the redevelopment project valuation shall
be paid into the funds, of each such public body in the same proportion as all other taxes
collected by or for the bodies; and
b. That portion of the ad valorem tax on real property in the
redevelopment project in excess of such amount, if any, shall be allocated to and, when
collected, paid into a special fund of the Authority to pay the principal of; the interest on,
and any premiums due in connection with the bonds, loans, notes, or advances on money
to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such
Authority for financing or refinancing, in whole or in part, a redevelopment project.
When such bonds, loans, notes, advances of money, or indebtedness including interest
and premium due have been paid, the Authority shall so notify the County Assessor and
County Treasurer and all ad valorem taxes upon real property in such redevelopment
project shall be paid into the funds of the respective public bodies.
Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged
to the repayment of loans or advances of money, or the incurring of any indebtedness,
whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in
whole or in part, the redevelopment project, including the payment of the principal of,
premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness.
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Redevelopment Plan Amendment Complies with the Act:
The Community Development Law requires that a Redevelopment Plan and Project
consider and comply with a number of requirements. This Plan Amendment meets the
statutory qualifications as set forth below.
1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on May 14, 2013. [§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 purchase the property and install the required public infrastructure
needed to develop the property in a manner consistent with the comprehensive plan and
previously approved development plans.
3. The Redevelopment Plan must be sufficiently complete to address the following
items: [§18-2103(13) (b)]
a. Land Acquisition:
This Redevelopment Plan Area #12 provides for real property acquisition. There is no
proposed acquisition by the authority. The developer is proposing acquire the property
subject to the approval of this redevelopment plan and the approval of the first TIF
contract.
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 residential use consistent with R2 zoning district and the approved
preliminary and final plats for this site. [§18-2103(b) and §18-2111] The attached map
also is an accurate site plan of the area after redevelopment. [§18-2111(5)]
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City of Grand Island Future Land Use Map
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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. No zoning changes are anticipated with
this project. Additional streets will be constructed in a manner consistent with the
approved preliminary and final plats for the property. 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 single family residential is permitted in
the current zoning district. [§18-2103(b) and §18-2111]
e. Site Coverage and Intensity of Use
The R2 zoning district allows for the development of 1 dwelling unit per 6000 square
foot of lot area. The platted and proposed lots are more than 6000 square feet in size but
less than the 12,000 square feet that would be required for a 2 family dwelling. [§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. Water and sewer will need to be extended throughout the site. Extension
of utilities is one of the planned uses for Tax Increment Financing.
Electric, gas, phone and cable utilities will be extended through the site as necessary to
serve the development through agreements between those providers and the developer.
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 is in private ownership. Most of it is vacant property used for farming or
with vacant residential lots in place. No individuals or families will be relocated as a
result of this project. Additional housing will be created by the 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]
Barry Sandstrom and Tom Gdowski, members of the CRA Board do not hold any interest
in this property but work for Home Federal Bank and Equitable Bank in Grand Island and
may be involved in the financing of this project or houses sold within the project.
6. Section 18-2114 of the Act requires that the Authority consider:
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a. Method and cost of acquisition and preparation for redevelopment and estimated
proceeds from disposal to redevelopers.
The developer has secured options on the entire site with the exception of the 5 lots that
are currently occupied with houses from the first developer. The developer is estimating
the costs TIF eligible activities as shown below:
Cost for Tax Increment Financing Eligible Activities
Architecture and Engineering 225,000
Financing 2,645,377
land 2,650,000
Legal 125,000
Contingency 185,176
Finish Existing Paving & Storm 46,487
Move Electric Service Line 10,000
Private Park
Paved and Fenced Parking/Storage 325,000
Infrastructure Phase 1
Sanitary Sewer 515,700
Watermain 415,558
Paving and Storm 1,999,877
Storm Sewer to North Road 363,693
Subtotal 3,294,827
Total Eligible Expenses 9,506,867
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 an estimated sum of $9,495,000 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 for a period that may
extend through 15 years from the date of the final contract for this project. This project
will be phased with multiple contracts. It is anticipated that 1 or 2 contracts for continued
work will be approve annually by the CRA.
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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 development consistent with the future land use plan for the City of
Grand Island and the previously approved development of this site. The development of
single family residential on this property is consistent with the property development
along the north side of Old Potash Highway. This will have the intended result of
preventing recurring elements of unsafe buildings and blighting conditions such as
incomplete infrastructure.
8. Time Frame for Development
Development of this project is anticipated to begin in September 2013. Infrastructure for
phase 1 of the development, including finishing the original platted subdivision and
completing streets and utilities for the first 239 lots is expected to be complete by January
1, 2015. The developer expects to complete between 15 and 30 affordable single family
dwelling units each year until completion of the subdivision. Expected completion of this
project will occur sometime between 2034 and 2054. Excess valuation should be
available for this project beginning with the 2015 tax year.
9. Justification of Project
The housing vacancy rate in Grand Island has been hovering between 2% and 3% since at
least 2000 Since the late 1980’s, every housing study done in Grand Island has indicated
a lack of housing and housing options in Grand Island. The market is providing for
houses in the $200,000 plus price range and 210 market rate apartments are currently
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under construction with plans for upwards of 450 new market rate apartments. Providers
of elderly housing supported by Low Income Housing Tax Credits all have waiting lists
and applications for new projects are submitted to NIFA every year.
As of today (May 20, 2013), there are less than 135 housing units (single family and
condominium) on the market based on the Multiple Listing Service, at all price ranges.
Grand Island has almost 13,000 single family housing units, so approximately 1% of the
total units are currently available.
The projected price range of the houses to be built with this project puts them within the
reach of people earning a family income of $16 an hour and above. This price puts these
houses within reach of people working at JBS Swift, many of the retail stores in the
community, incoming teacher and many others that have trouble finding housing in
Grand Island. A family at or even below the 2011 household income in Grand Island
could afford to buy one of these houses while they could not afford the new construction
that is happening at market rate. The cost to develop lots in Grand Island, even the
smaller lots that are proposed in this subdivision makes the development and sale of
houses in this price range prohibitive without some kind of public private partnership.
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 is not currently valued for property tax
assessment as it is owned by the U.S. Government and not subject to property taxes. The
proposed development of these houses will result in an estimated additional $86,800,000
of taxable valuation based on an initial 2013 sale price of homes at $140,000. No tax
shifts are anticipated from the project. The project creates additional valuation that will
support taxing entities for life of those homes after the completion of the TIF contract.
(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 need to be extended through the site but have sufficient capacity to
support the development. The electric utility has sufficient capacity to support the
development. This development will have an impact on the Grand Island School system
as it will likely result in increased attendance at all grade levels. The Grand Island Public
School system has indicated that they can absorb the anticipated increase in student
population if the development occurs at a rate that does not exceed 25 to 30 dwelling
units per year. Fire and police protection are available and should not be impacted by this
development.
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(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. In 2008 the National Association of Home Builders
estimated the impacts of each single family home built in a community at 3.05 FTE’s.
(Emrath, 2008). Using that number and an estimated construction schedule of between
15 and 30 units per year, this project is the equivalent of a manufacturing facility
plannign to be in operation for between 20 and 40 years with an employee base of
between 45.75 FTE’s to 96.5 FTE’s. This project will also supply housing at a price point
that is affordable to those at or below the median income in Grand Island. The median
income in Grand Island for 2011 according to the U.S. Census is $50,695.
(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 should not have any measurable negative impacts on other employers or
employees in 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 will provide housing for residents of Grand Island in a much needed price range
that is not being provided by the housing market. The average price of new homes
constructed in Grand Island in 2011 was $209,970, in 2012 it was $222,593 and so far in
2013 the average selling price of a new home is $232,900. In order to purchase a home
for $232,900 a household income of $63,502 is required based on a 4% loan with a 5%
down payment and 30% housing to income ratio. The proposed project will positively
impact persons at or below the median income level within the City of Grand Island.
Time Frame for Development
Development of this project is anticipated to begin in September 2013. Infrastructure for
phase 1 of the development, including finishing the original platted subdivision and
completing streets and utilities for the first 239 lots is expected to be complete by January
1, 2015. The base tax year should be calculated beginning in 2014 and each subsequent
contract should be set in the year during which it is anticipated construction on the houses
will begin. The developer expects to complete between 15 and 30 affordable single
family dwelling units each year until completion of the subdivision. Expected
completion of this project will occur sometime between 2034 and 2054. Excess valuation
should be available for this project beginning with the 2015 tax year. Excess valuation
will be used to pay the TIF Indebtedness issued by the CRA per each contract between
the CRA. Contract periods shall not exceed 15 years. The amount of TIF excess
distributed shall not exceed the actual cost of the TIF eligible expenses incurred for this
project including acquisition, streets, storm sewer, sanitary sewer, water, other necessary
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utilities, engineering, architecture and surveying, legal fees and interest on money
borrowed for those expenses.
See Attached Building Plans (with TIF application)
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COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 162
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA, PROVIDING NOTICE OF INTENT TO ENTER INTO
A REDEVELOPMENT CONTRACT AFTER THE PASSAGE OF 30 DAYS AND OTHER MATTERS
WHEREAS, the 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 # 12, from Guarantee Group, 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, the Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), is proposing to use Tax Increment Financing on a
project within redevelopment area # 12;
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 __________, 2013.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By ___________________________
Chairperson
ATTEST:
___________________
Secretary
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Exhibit 1
Attach a copy of the Redevelopment Contract
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Community Redevelopment
Authority (CRA)
Wednesday, May 29, 2013
Regular Meeting
Item J1
Chief TIF Resolution & Contract
Staff Contact: Chad Nabity
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CITY OF GRAND ISLAND
COMMUNITY REDEVELOPMENT AUTHORITY
RESOLUTION NO. 158
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA, APPROVING THE
REDEVELOPMENT CONTRACT AND REDEVELOPMENT PLAN AND
AUTHORIZING THE ISSUANCE OF TAX INCREMENT REVENUE NOTES
(CHIEF INDUSTRIES PROJECT) SERIES 2013 A AND SERIES 2013 B.
WHEREAS, the Community Redevelopment Authority of the City of Grand Island,
Nebraska (“Authority”) is a duly organized and existing Community Redevelopment Authority,
a body politic and corporate under the laws of the State of Nebraska; and
WHEREAS, the Authority is authorized by the Act (hereinafter defined) to issue and sell
its revenue Note, notes or other obligations for the purpose of providing money to pay or
otherwise provide funds to pay costs of redevelopment projects and is further authorized to
pledge the revenues as herein provided to secure the payment of principal, premium, if any, and
interest on its obligations; and
WHEREAS, the Authority has determined it to be in the best interests of the Authority to
issue its Note, notes or other obligations for the purpose of making funds available for the
acquisition, construction and improvement of a Redevelopment Project of Chief Industries, Inc.
(“Chief”) and related infrastructure pursuant to a Redevelopment Contract (“Redevelopment
Contract”); and
WHEREAS, the Redevelopment Authority has made the necessary arrangements for
financing a portion of the costs of the development project in part by issuing Community
Development Revenue Notes (Chief Project), in the form of fully registered Notes without
coupons (the "Notes" or "Series 2013 Notes") of the Redevelopment Authority and for use of
the proceeds of the Notes in connection with the project, in amounts determined pursuant to
Sections 2.01, 2.04A and 2.04B; and
WHEREAS, the issuance of the Notes has been in all respects duly and validly
authorized by the Authority pursuant to this Resolution (the Resolution”); and
WHEREAS, the Notes are in substantially the form attached hereto as Exhibits A and B
which are incorporated herein by this reference, with the necessary and appropriate variations,
omissions and insertions as permitted or required by this Resolution.
NOW, THEREFORE, BE IT RESOLVED and expressly declared, that the Notes shall be
issued and delivered upon and subject to the terms, conditions, stipulations, uses and purposes
as hereinafter expressed, which are:
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ARTICLE I
DEFINITIONS AND INTERPRETATION
Section 1.01 Defined Terms.
Unless the context otherwise requires, the following terms shall have the following
meanings for all purposes of this Note Resolution, such definitions to be equally applicable to
both the singular and plural forms and masculine, feminine and neuter gender of any of the terms
defined:
“Act” means Section 12 of Article VIII of the Nebraska Constitution, and Sections 18-
2101 through 18-2154 of the Nebraska Revised Statutes, as amended, known as the Nebraska
Community Development Law and acts amendatory thereof and supplemental thereto.
“Authorized Representative” means the person at the time designated to act on behalf of
Chief by written certificate furnished to the Noteholders and the Authority, containing the
specimen signature of such person. Such certificate may designate an alternate or alternates.
“Authorized Issuer Representative” means the person at the time designated to act on
behalf of the Authority by written certificate furnished to Chief and the Noteholders containing
the specimen signature of such person and signed on behalf of the Authority by its Chair or Vice
Chair. Such certificate may designate an alternate or alternates.
"Note" means the Redevelopment Authority 's Community Development Revenue Notes
(Chief Industries, Project) Series A and B.
“Noteholder” means the holders of the Note from time to time outstanding.
“City” means the City of Grand Island, Nebraska.
“Closing” means the date of issuance of any Note.
“Collateral” means all property pledged as security for the Noteholders pursuant to
Section 5.01 of this Note Resolution.
“Chief” means Chief Industries, Inc., its successors and assigns, and any resulting or
transferee corporation or entity.
“Debt Service Fund” means the fund created with the Paying Agent pursuant to Section
4.01 of this Note Resolution.
“Governing Body” means the members of the Authority.
“Paying Agent” means the paying agent with respect to the Note appointed pursuant to
Section 11.01 of this Note Resolution.
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“Project” means the real property and improvements to be constructed thereon, as further
described in Exhibit B attached hereto and incorporated herein by reference.
“Project Costs” means only costs or expenses incurred by Chief and Authority to acquire
the Project and to acquire, improve and prepare for development and redevelopment an industrial
area and related infrastructure costs, including but not limited to costs of engineering, streets,
curbs, gutters, water mains, sanitary sewer lines and lift stations, storm sewer lines, retention
ponds and related facilities, including reimbursement for any such costs, in the City of Grand
Island, Hall County, Nebraska, pursuant to the Act and shall include costs of issuing the Note.
“Redevelopment Contract” means the redevelopment contract between the Authority and
Chief dated _______________ ___, 2013, with respect to the Project.
“Redevelopment Plan” means the Redevelopment Plan submitted by Chief with respect
to the Project, as set forth in the Redevelopment Contract and adopted in accordance with the
Act, as amended from time to time.
“Registrar” means the registrar responsible for maintaining records of holders of the Note
appointed pursuant to Section 11.01 of this Note Resolution.
“Resolution” means this Note Resolution of the Authority adopted on __________ __,
2013, authorizing the issuance and sale of the Note, as the same may be amended, modified or
supplemented by any amendments or modifications thereof.
“Tax Increment Revenues” means ad valorem property taxes pledged to payment of the
Note in accordance with Sections 18-2147 and 18-2150 of the Act, including those pledged
pursuant to this Note Resolution and those pledged hereafter by action of the Authority pursuant
to redevelopment plan amendments, as described in the Redevelopment Contract.
Section 1.02 Provisions as to Interpretation.
The provisions of this Note Resolution shall be construed and interpreted in accordance
with the following provisions:
(a)This Note Resolution shall be interpreted in accordance with and governed by the
laws of the State of Nebraska.
(b)Wherever in this Note Resolution it is provided that any person may do or
perform any act or thing the word may” shall be deemed permissive and not
mandatory and it shall be construed that such person shall have the right, but shall
not be obligated, to do and perform any such act or thing.
(c)The phrase At any time” shall be construed as meaning At any time or from time
to time.”
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(d)The word “including” shall be construed as meaning including, but not limited
to.”
(e)The words “will” and “shall” shall each be construed as mandatory.
(f)The words “herein,” “hereof,” “hereunder,” “hereinafter” and words of similar
import shall refer to this Note Resolution as a whole rather than to any particular
paragraph, section or subsection, unless the context specifically refers thereto.
(g)Forms of words in the singular, plural, masculine, feminine or neuter shall be
construed to include the other forms as the context may require.
(h)The captions to the sections of this Note Resolution are for convenience only and
shall not be deemed part of the text of the respective sections and shall not vary
by implication or otherwise any of the provisions hereof.
Section 1.03 Exhibits.
The following Exhibits are attached to and by reference made a part of this Note
Resolution:
(a) Exhibit A:Form of Series 2013 A Note.
(b) Exhibit B:Form of Series 2013 B Note.
(c)Exhibit C:Description of Premises and Project.
(c)Exhibit D:Real Estate Pledged for January 1, 2014.
ARTICLE II
THE NOTES
Section 2.01. Form and Maturity of Notes.
The Notes to be issued pursuant to this Resolution shall be issued pursuant
to the Act, including specifically but without limitation Sections 18-2124 et seq., shall be
dated as of the date of their issuance, and shall be issued in two or more series designated
"Community Redevelopment Authority of the City of Grand Island, Nebraska,
Community Development Revenue Notes (Chief Project), Series _____". The
Redevelopment Authority shall issue one Series A Note, designated "Series 2013 A
Notes", and one or more series of "B" Notes, "Series 2013 B Notes". The Notes shall be
substantially in the form and of the tenor as set forth in the form of the Notes attached
hereto as Exhibit A (Series A Notes) and Exhibit B (Series B Notes) with such
appropriate variations, omissions and insertions as are permitted or required by this
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Resolution.
The Series A Note shall be issued in one series in the amount of
$579,870.00, and shall be dated as of the date its issuance. No other Series "A" Notes
shall be issued. The Series A Notes shall finally mature on December 31, 2028. The
Series A Note shall bear interest at the rate of zero percent (0.00%) per annum from and
after the date of issuance of such Note.
The Series B Note shall be issued in one series in the amount of
$100,000.00, and shall be dated as of the date its issuance. No other Series "B" Notes
shall be issued. The Series “B” Notes shall finally mature on December 31, 2028. The
Series “B” Note shall bear interest at the rate of zero percent (0.00%) per annum from
and after the date of issuance of such Note.
Principal and interest on the Notes shall be payable in such coin and
currency of the United States of America as may be, on the respective dates of the
payment thereof, legal tender for the payment of public and private debts at the principal
office of the Paying Agent. Principal and interest will be paid by check or draft mailed to
the Noteholders in whose name a Note is registered as of the 15th calendar day (whether
or not a business day) next preceding the interest payment date at his address as it appears
on the registration books of the Registrar.
The Notes shall originally be issued as fully registered Notes without
coupon. Upon the written request of a Noteholder, and at its expense, Notes may be
surrendered to the Redevelopment Authority and the Redevelopment Authority shall
deliver in exchange and substitution therefore new Notes of like tenor, aggregating the
then outstanding principal amount of the Notes.
Section 2.02 Execution. Limited Obligation.
The Notes shall be signed in the name and on behalf of the
Redevelopment Authority by the manual or facsimile signature of the Chair or Vice Chair
of the Redevelopment Authority and attested with the manual or facsimile signature of
its Secretary. In the event that any of the officers who shall have signed and sealed the
Notes shall cease to be officers of the Redevelopment Authority before the Notes shall
have been issued and delivered, the Notes may, nevertheless, be issued and delivered, and
upon such issue and delivery shall be binding upon the Redevelopment Authority as
though those officers who signed and sealed the same had continued to be such officers
of the Redevelopment Authority. The Notes may be signed and sealed on behalf of the
Redevelopment Authority by such person who, at the actual date of execution of the
Notes, shall be the proper officer of the Redevelopment Authority , although at the date
of the Notes such person shall not have been such an officer of the Redevelopment
Authority.
The Notes shall not be a general obligation of the Redevelopment
Authority, but only a limited obligation payable solely from the tax increment revenues
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pledged as security for the Notes, and from any other security pledged by Chief pursuant
to the Redevelopment Contract or other financing documents (except to the extent paid
out of monies attributable to income from the temporary investment of the proceeds of
the Notes) and shall be a valid claim of the registered owner thereof and otherwise
secured for the payment of the Notes and shall be used for no other purpose than to pay
the principal and interest on the Notes, except as may be otherwise expressly authorized
by this Note Resolution.
Neither the Redevelopment Authority, the State of Nebraska, the City
nor any other political subdivision of the State of Nebraska shall be obligated to pay the
principal of the Notes or the interest thereon or other costs incident thereto except from
the money pledged therefore. Neither the faith and credit nor the taxing power (except to
the extent of ad valorem taxes pledged hereunder) of the Redevelopment Authority , the
City, the State of Nebraska or any political subdivision of the State of Nebraska shall be
pledged to the payment of the principal of the Notes or the interest thereon or other costs
incident thereto. The Notes shall never constitute an indebtedness of the
Redevelopment Authority or the City within the meaning of any state constitutional
provision or statutory limitation, nor shall the Notes or the interest thereon ever give rise
to any pecuniary liability of the Redevelopment Authority or the City or a charge against
its general credit or taxing powers.
In the event the monies collected and held in that special fund established under Section
18-2147 of the Nebraska Revised Statutes and pursuant to the Redevelopment Plan and
the Resolution authorizing the issuance of this Note are insufficient to pay in full all
amounts due and owing on December 31, 2028, and all excess ad valorem taxes
generated by the Redevelopment Project, as set forth in the Redevelopment Plan, have
been collected by the City of Grand Island, Nebraska, and have been paid, as required by
the Redevelopment Agreement and this Note Resolution, towards the retirement of the
amounts due hereunder, then, on December 31, 2028, neither the Redevelopment
Authority or the City of Grand Island, Nebraska, shall have any further payment or other
obligations under this Note and the Holder shall, in writing, waive and otherwise forgive
any unpaid portion of the principal and interest upon the request of the Redevelopment
Authority or the City.
Section 2.03 Registration and Authentication of Notes.
The Notes shall not be valid or obligatory for any purpose unless the
Notes shall have been authenticated by the manual signature of the Registrar.
Section 2.04A Conditions for Delivery of Series A Notes.
The Redevelopment Authority shall execute and deliver the Series A Notes to the
Noteholders or to their assigns, on such date selected by the Authority, provided that
Chief is not then in default under the Redevelopment Contract, and upon the filing
with the Secretary of the Redevelopment Authority the following:
(a)A certified copy of this Note Resolution;
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Section 2.04B Conditions for Delivery of Series B Notes.
The Redevelopment Authority shall execute and deliver the Series "B" Notes, to the Authority
for purposes of reimbursing the Authority for a grant made to Chief as part of the
Redevelopment Plan related to the Redevelopment Project, upon issuance thereof.
Section 2.05 Registration of Notes.
Ownership of the Notes shall at all times be registered as to principal and interest with the
Registrar. Transfer of the Note may be made only by an assignment duly executed by the
registered owner or by his registered assigns, or his legal representative or attorney, in such form
as shall be reasonably satisfactory to the Registrar, who shall endorse such registration or
transfer on the Note. No transfer of the Note shall be effective unless and until notice of such
transfer shall be delivered in writing to the Registrar. The Registrar shall retain records showing
all registrations, transfers and assignments of the Note. In the event of any such transfer, the
Registrar shall require the payment by the person requesting exchange or transfer of any tax or
other governmental charge required to be paid with respect to such exchange or transfer.
Section 2.06 Ownership of Note.
As to the Notes and any interest thereon, the Authority and the Registrar, and their
respective successors, each in its discretion, may deem and treat the person in whose name the
Note for the time being shall be registered as the absolute owner thereof for all purposes, and
neither the Authority nor the Registrar, nor their respective successors, shall be affected by any
notice to the contrary. Payment of or on account of the principal and interest on the Note shall be
made only to or upon the order of such registered owner, but such registration may be changed as
provided herein. All such payments shall be valid and effective to satisfy and discharge the
liability upon the Note to the extent of the sum or sums so paid.
Section 2.07 Valid Obligation.
The Note executed, issued and delivered as in this Note Resolution provided shall be a
valid special obligation of the Authority.
Section 2.08 Loss or Destruction of Note.
In case any Note shall become mutilated or be destroyed or lost, the Authority shall, if
not then prohibited by law, cause to be executed and delivered a new Note of like date, number,
maturity and tenor in exchange and substitution for and upon cancellation of such mutilated
Note, or in lieu of and substitution for such lost Note, upon the Noteholder paying the reasonable
expenses and charges of the Authority in connection therewith and, in the event the Note is
destroyed or lost, the filing with the Issuer of evidence satisfactory to it that the Note was
destroyed or lost, and furnishing the Authority with indemnifications satisfactory to the
Authority.
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Section 2.09 Transfer of the Note.
All transfers of the Note shall be upon the basis of a private placement and each proposed
transferee registered owner shall furnish the Registrar with assurances in form satisfactory to the
Registrar that the Note is being purchased for investment purposes only, without a view to
redistribution and upon the independent credit judgment and investigation of the proposed
transferee.
ARTICLE III
APPLICATION OF NOTE PROCEEDS
One hundred percent of the proceeds of the Series 2013 A Note shall be granted to Chief
upon receipt of such proceeds and used by Chief to pay Project Costs pursuant to the
Redevelopment Contract.
One hundred percent of the proceeds of the Series 2013 B Note shall be granted to the
Authority upon receipt of such proceeds to reimburse the Authority for a grant made to Chief to
pay Project Costs pursuant to the Redevelopment Contract.
ARTICLE IV
PAYMENT OF NOTE
Section 4.01 Debt Service Fund.
There is hereby created and established a separate fund for the Series 2013 A Note and a
separate fund for the Series 2013 B Note with the Paying Agent in the name of the Authority to
be designated “Community Redevelopment Authority of the City of Grand Island, Nebraska,
Community Development Revenue Note (Chief Project), Debt Service Fund Series 2013 A” and
a ACommunity Redevelopment Authority of the City of Grand Island, Nebraska, Community
Development Revenue Note (Chief Project), Debt Service Fund Series 2013 B” into which the
Authority shall make the following deposits as to each fund:
(a)Accrued interest, if any, received upon sale of the Note;
(b)All Tax Increment Revenues received by the Authority with respect to the Project
from the respective incremental ad valorem TIF Revenues pledged for payment of
respective such Note;
(c)All other monies required to be deposited in the Debt Service Fund pursuant to
any provision of the Redevelopment Contract or this Note Resolution; and
(d)All Tax Increment Revenues received by the Authority with respect to
Redevelopment Plan Amendments with respect to the Project.
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Section 4.02 Pledge of Debt Service Funds.
The monies and investments in the respective Debt Service Funds are hereby irrevocably
pledged to and shall be used by the Authority from time to time, to the extent required, solely for
the payment of the principal of, premium, if any, and interest on the Note. That is to say, the
funds deposited to and held in the ACommunity Redevelopment Authority of the City of Grand
Island, Nebraska, Community Development Revenue Note (Chief Project), Debt Service Fund
Series 2013 A” are pledged to the payment of the Series 2013 A Note; and the funds deposited to
and held in the Community Redevelopment Authority of the City of Grand Island, Nebraska,
Community Development Revenue Note (Chief Project), Debt Service Fund Series 2013 B” are
pledged to the payment of the Series 2013 B Note.
Section 4.03 Funds Held in Trust or Secured.
All monies deposited in the Debt Service Funds under the provisions of this Note
Resolution or the Redevelopment Contract shall be held in trust or fully secured by pledged
assets and applied only in accordance with the provisions of this Note Resolution and the
Redevelopment Contract and shall not be subject to a lien or attachment by any creditor of the
City, the Authority or Chief.
Section 4.04 Application of Funds.
If at any time the monies and investments in the Debt Service Funds shall not be
sufficient to pay in full the principal, premium, if any, and interest on the Note as the same shall
become due and payable (either by their terms or by acceleration of maturities under the
provisions of this Note Resolution), such funds, together with any monies then available or
thereafter becoming available for such purpose, whether through the exercise of the remedies
provided for herein or otherwise, shall be applied as follows:
(a)Unless the principal of all of the Note shall have become or shall have been
declared due and payable, all such monies shall be applied in the following order:
FIRST:
To the payment of all installments of interest then due and payable on the Note in the
order in which such installments of interest became due and payable and, if the amount
available shall not be sufficient to pay in full any particular installment, then to the
payment, ratably, according to the amounts due on such installment, to the persons
entitled thereto, without any discrimination or preference except as to any difference in
the respective interests specified in the Note;
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SECOND:
To the payment of all principal then due and payable on the Note which shall have
become due and payable and, if the amount available shall not be sufficient to pay in full
the principal of the Note due and payable, then ratably to the payment of such principal
due on such date, to the persons entitled thereto, without discrimination.
Section 4.05 Redemption of Note Before Maturity.
(a)The Series 2013 A Note is callable for redemption at any time in whole or in part,
without premium, in the event Chief directs the Authority that it wishes to prepay
the Note.
(b)Both the Series 2013 A and Series 2013 B Notes are also callable for redemption
in the event the registered owner thereof has declared the entire unpaid principal
amount at the time outstanding to be payable due to an Event of Default as that
term is defined in this Note Resolution, which shall have occurred and be
continuing upon the conditions, in the manner and with the effect provided in this
Note Resolution.
(c)Both the Series 2013 A and Series 2013 B Notes shall also be subject to
mandatory partial redemption, without notice, on each interest payment date from
all funds to be available in the respective Debt Service Funds, excluding amounts,
if any, from investment earnings for such fund which the Authority shall be
entitled to apply to administrative costs related to the Note, rounded down to the
nearest one hundred dollars, after payment of all accrued but unpaid interest on
each interest payment date (which funds are referred to in this Note Resolution as
AAvailable Funds”). Available Funds shall be applied to the prepayment of
principal on each interest payment date and shall be remitted to the registered
owner of the Note with interest payments. The Agent shall mark the Agent's
records with respect to each mandatory partial principal prepayment made from
Available Funds and it shall not be necessary for the registered owner to present
the Note for notation of such prepayment. The records of the Agent shall govern
as to any determination of the principal amount of the Note outstanding at
anytime and the registered owner shall have the right to request information in
writing from the Agent at any time as to the principal amount outstanding upon
the Note.
Section 4.06 Redemption Date.
In the event the Note or any portion thereof are called for redemption or prepayment as
provided in Section 4.05 of this Note Resolution, except for partial mandatory redemption, notice
thereof will be given by registered or certified mail to the Noteholders not less than thirty days
prior to the date fixed for prepayment or redemption, specifying such date, the aggregate
principal amount of the Note to be prepaid on such date and the amount of interest on such
principal amount accrued to such date. The principal amount of the Note so called for
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prepayment or redemption will cease to bear interest after the specified prepayment or
redemption date provided funds for such prepayment or redemption are paid to the Noteholders
at that time in cash or certified funds; but, if the Series 2013 A Note has been called for payment
at the option of Chief and is not prepaid or redeemed as required, the unpaid principal balance
shall thereafter bear interest until paid.
Section 4.07 Investment of Funds.
Monies on deposit to the credit of the respective Debt Service Funds shall be invested in
(i) direct obligations of or obligations fully guaranteed by the United States of America or an
Authority or instrumentality of the United States of America, (ii) fully insured certificates of
deposit or time deposits of banks or trust companies. Obligations so purchased shall be deemed
at all times a part of the Debt Service Fund, respectively.
Section 4.08 Disposition of Excess Funds.
Monies on deposit in the respective Debt Service Funds remaining after payment of
principal and interest on the Note in full shall, if neither Chief nor the Authority are then in
default under the Redevelopment Contract or this Note Resolution, immediately be paid to
Authority and shall no longer be subject to this Note Resolution.
ARTICLE V
SECURITY FOR THE SERIES 2013 A NOTE
Section 5.01 Pledge of Tax Increment Revenues as Security.
(a)In accordance with Section 18-2147 of the Act, the Authority hereby adopts the
Redevelopment Plan of the Authority by approving the Project and by providing
that any ad valorem tax on real property in the Redevelopment Project for the
benefit of any public body be divided for a period of fifteen years after the
effective date of this provision as provided in Section 18-2147 of the Act. The
effective date of this provision shall be January 1, 2014, as to the real estate
described on Exhibit D.
(b)In accordance with Section 18-2150 of the Act, the Tax Increment Revenues
divided pursuant to subsection (a) hereof are hereby pledged for payment of
principal, premium, if any, and interest on the Series 2013 A Note. The Authority
shall execute a notice with the City providing for such pledge of taxes and shall
file a copy of such notice with the Hall County Clerk, Hall County Treasurer and
Hall County Assessor.
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ARTICLE VI
SECURITY FOR THE SERIES 2013 B NOTE
Section 6.01 Pledge of Tax Increment Revenues as Security.
(a)In accordance with Section 18-2147 of the Act, the Authority hereby adopts the
Redevelopment Plan of the Authority by approving the Project and by providing
that any ad valorem tax on real property in the Redevelopment Project for the
benefit of any public body be divided for a period of fifteen years after the
effective date of this provision as provided in Section 18-2147 of the Act. The
effective date of this provision shall be January 1, 2014, as to the real estate
described on Exhibit D.
(b)In accordance with Section 18-2150 of the Act, the Tax Increment Revenues
divided pursuant to subsection (a) hereof are hereby pledged for payment of
principal, premium, if any, and interest on the Series 2013 B Note, PROVIDED,
HOWEVER, IN ALL EVENTS, THE PLEDGE OF SECURITY FOR THE 2013
B NOTES SHALL BE JUNIOR AND INFERIOR TO THE PLEDGE OF
SECURITY FOR THE 2013 A NOTES, AND NO PAYMENTS SHALL BE
MADE ON THE 2013 B NOTES UNTIL THE 2013 A NOTES SHALL HAVE
BEEN PAID AND REDEEMED.
ARTICLE VII
LEGAL AUTHORIZATION; FINDINGS
Section 7.01 Legal Authorization.
The Authority is a body politic and corporate under the laws of the State of Nebraska and
is authorized under the Act to provide funds for the Project and construct public improvements
thereon, and to issue and sell its development revenue notes such as the Note for the purpose, in
the manner and upon the terms and conditions set forth in the Act and in this Note Resolution.
Section 7.02 Findings.
The Authority has heretofore determined, and does hereby determine, as follows:
(a)The Project financed by the Note is a qualified Aredevelopment project” as
defined by the Act and has been approved as part of the Redevelopment Plan;
(b)The issuance of the Note and the construction of the Project will promote the
public welfare and carry out the purposes of the Act, by, among other things,
decreasing blighted and substandard conditions in the Redevelopment Area;
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(c)The amounts necessary to acquire and construct the Project will be equal to or
exceed the amount of the Note;
(d)The Redevelopment Contract is in full and complete compliance and conformity
with all of the provisions of the Act;
(e)The Redevelopment Project in the Plan would not be economically feasible
without the use of tax-increment financing;
(f)The Redevelopment Project would not occur in the Community Redevelopment
Area without the use of tax-increment financing;
(g)The costs and benefits of the Redevelopment Project, including the costs and
benefits to other affected political subdivisions, the economy of the community,
and the demand for public and private services have been analyzed by the
governing body and have been found to be in the long-term best interest of the
community impacted by the Redevelopment Project;
(h)The Note will not constitute a debt of the Authority within the meaning of any
constitutional or statutory limitation; and
ARTICLE VIII
AUTHORIZATION TO EXECUTE DOCUMENTS AND ISSUE NOTE
Section 8.01 Approval and Authorization of Documents.
The Redevelopment Contract in the form and content presented to the Authority on this
date, is in all respects hereby approved, authorized and confirmed, and the Chair or Vice Chair of
the Authority and the Secretary be and they are hereby authorized and directed to execute and
deliver the Redevelopment Contract in substantially the form and content as presented to the
Authority on this date, but with such changes, modifications, additions and deletions therein as
shall to them seem necessary, desirable or appropriate, for and on behalf of the Authority.
Section 8.02 Authorization to Issue Notes.
The issuance and delivery of the Community Redevelopment Authority of the City of
Grand Island, Nebraska, Community Development Revenue Note (Chief Project), in the form
and content set forth in Exhibits A and B attached hereto, be and the same are in all respects
hereby approved, authorized and confirmed, and the Chair of the Authority and the Secretary be
and they are hereby authorized and directed to execute and deliver the same for and on behalf of
the Authority to the Noteholder’s order, upon satisfaction of conditions for delivery pursuant to
this resolution, and to deposit the proceeds thereon to be applied in the manner set forth in
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Articles III and IV hereof. The proceeds of the Series 2013 A Note may be offset against the
grant to Chief.
Section 8.03 Ratification of Actions Taken By the Authority.
The Authority hereby ratifies and approves all action taken and expenditures made by the
Authority, if any, in connection with the Project based upon prior resolutions of the Authority.
Section 8.04 Authority to Execute and Deliver Additional Documents.
The Chair and Secretary of the Authority and other appropriate Authority officials are
hereby authorized to execute and deliver for and on behalf of Issuer any and all additional
certificates, documents or other papers and to perform all other acts as they may deem necessary
or appropriate in order to implement and carry out the matters herein authorized and the
acquisition of the Project.
Section 8.05 Copies of Documents Presented to Authority Available for Inspection.
True and correct copies of all documents presented to the Authority and identified and
referred to in this Note Resolution are on file in the main office of the Authority and are
available for inspection by the general public during regular business hours.
ARTICLE IX
PARTICULAR COVENANTS OF THE AUTHORITY
The Authority covenants and agrees, so long as the Note shall be outstanding and subject
to the limitations on its obligations herein set forth, that:
Section 9.01 First Lien.
The lien on Tax Increment Revenues created by this Note Resolution is a first and prior
lien and the Authority will take no actions which would subject the Tax Increment Revenues
pledged hereunder or the rights, privileges and appurtenances thereto to any lien claim of any
kind whether superior, equal or inferior to such lien of this Note Resolution.
Section 9.02 Payment of Note.
It will faithfully perform at all times any and all covenants, undertakings, stipulations and
provisions contained in this Note Resolution and in the Notes executed and delivered here under;
will pay the principal, premium, if any, and interest on the Note on the dates, at the places and in
the manner prescribed in the Note in any coin or currency of the United States of America which
on the respective dates of payment thereof, is legal tender for the payment of public and private
debts; provided, however, that the principal, premium, if any, and interest on the Note and all
other covenants, undertakings, stipulations, provisions and agreements contained in this Note
Resolution, the Note and any other documents delivered in connection with any of the foregoing
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are not and shall not be deemed to (i) represent a debt or pledge of the faith or credit of the
Authority or the City or (ii) grant to the Noteholders directly, indirectly or contingently, any right
to have the Authority or the City levy any taxes or appropriate any funds to the payment of
principal or interest on the Note, such payment or other obligation to be made or satisfied solely
and only out of the Tax Increment Revenues and from any other security pledged pursuant to this
Note Resolution.
Section 9.03 Extensions of Payment of Note and Interest.
It will not directly or indirectly extend or assent to the extension of the due date of any
installment of principal, premium, if any, or interest on the Note, or of the maturity of the Note
or any principal installment thereof, or the time of payment of any claims for interest thereon.
Section 9.04 Authority of the Issuer.
It is duly authorized under the Constitution and laws of the State of Nebraska to provide
funds to acquire, construct and install the Project, to create and issue the Note and to make the
covenants as herein provided. All necessary action and proceedings on its part to be taken for the
creation and issuance of the Note and the execution and delivery of this Note Resolution have
been duly and effectively taken and the Note in the hands of the Noteholder is and will be a valid
and enforceable special obligation of the Authority in accordance with its terms.
Section 9.05 Further Assurances.
The Authority will execute or cause to be executed any and all further instruments that
may reasonably be requested by the Noteholders and be authorized by law to perfect the pledge
of a lien on the revenues and income of the Project granted in this Note Resolution, or intended
so to be, or to vest in the Noteholders the right to receive and apply the same to the payment or
protection and security of the Note.
Section 9.06 Proper Books and Records.
So long as the Note shall remain outstanding and unpaid, the Authority shall keep proper
books and records in which full, true and correct entries will be made of all dealings and
transactions relating to the ownership of the Project and the Note. Such books and records shall
be open to inspection by the Noteholders.
Section 9.07 To Observe all Covenants and Terms - Limitations on Authority's Obligations.
It will not issue or permit to be issued the Note in any manner other than in accordance
with the provisions of this Note Resolution, and will not suffer or permit any default to occur
under this Note Resolution, but will faithfully observe and perform all the conditions, covenants
and requirements hereof. Under the Act, the Authority has no obligation to levy taxes for or to
make any advance or payment or to incur any expense or liability from its general funds in
performing any of the conditions, covenants or requirements of the Note or this Note Resolution
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or to make any payments from any funds other than revenues and income of the Project or
monies in the funds and accounts provided for in this Note Resolution.
ARTICLE X
EVENTS OF DEFAULT AND REMEDIES
Section 10.01 Events of Default.
The following shall be AEvents of Default” under this Note Resolution and the term
“Event of Default” shall mean, whenever used in this Note Resolution, any one or more of the
following events:
(a)If the Authority fails to pay any installment of principal and interest, if any, on
any Note when the same shall become due and payable (whether at maturity, on
acceleration or otherwise) and such failure shall continue for a period of seven
business days after written notice thereof shall have been given to the Authority
by the holder of the Note; or
(b)Upon Event of Default by Chief occurs under the Redevelopment Contract; or
(c) If any representation or warranty made by the Authority in this Note Resolution is
or was, at the time it is made, false or misleading in any material respect.
Section 10.02 Remedies.
(a)Upon the occurrence of an Event of Default, the holders of a majority of
outstanding principal amount of any series of the Note may declare the entire
unpaid principal of and accrued interest on such series of Note, and including all
sums advanced hereunder to be forthwith due and payable. Upon such
declaration, all outstanding Notes of all series, including principal and all interest
thereof, shall be and become immediately due and payable without presentment,
demand or further notice of any kind;
(b)Upon the occurrence and continuation of an Event of Default, or in case the
principal of the Note shall have become due and payable, whether by lapse of
time or by acceleration, then and in every such case the Noteholders may proceed
to protect and enforce their rights by a suit or suits in equity or at law, either for
the specific performance of any covenant or agreement contained herein, or in the
Note, or in aid of the execution of any power herein or therein granted, or for the
enforcement of any other appropriate legal or equitable remedy;
(c)Notwithstanding any provision herein or under the Redevelopment Contract or
this Note Resolution to the contrary, all monies paid or collected with respect to
the Authority's, City’s or Chief’ obligations under this Note Resolution or the
Redevelopment Contract shall, after payment of expenses as provided in Section
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9.04(a) of this Note Resolution, be deposited in the Debt Service Fund and shall
be paid and applied as provided in Section 4.04 of this Note Resolution.
Section 10.03 Proceeds of Sale.
Upon any receipt of funds pursuant to enforcement of remedies hereunder, such proceeds
shall be paid in the following order:
(a)All court costs, attorneys' fees, receivers' fees and receivership expenses,
appraiser's fees, expenditures for documentary and expert evidence,
stenographer's charges, publication costs and costs of procuring all abstracts of
title, title searches and examinations, title guarantee policies, Torrens certificates
and similar data with respect to title, all of which fees and expenses shall be
reasonable.
(b)As provided in Section 4.04 of this Note Resolution.
The proceeds of any sale shall be distributed and applied to the items described in (a) and
(b), in the order of their listing, and any surplus of the proceeds of such sale shall be paid to City.
Section 10.04 Waiver of Event of Default; Forbearance.
The Noteholders may waive any Event of Default hereunder and its consequences and
rescind any declaration of acceleration of principal. No forbearance by the Noteholders in the
exercise of any right or remedy hereunder shall affect the ability of the Noteholders to thereafter
exercise any such right or remedy.
ARTICLE XI
PAYING AGENT AND REGISTRAR
Section 11.01 Appointment of Paying Agent and Registrar.
The Authority hereby appoints the City Treasurer of the City of Grand Island, Nebraska,
as Paying Agent and Registrar. The Paying Agent shall make all payments to Noteholders out of
the Debt Service Fund as provided in Section 4.04 hereof. The Registrar shall maintain
registration books of the holders of the Note.
Section 11.02 Reliance on Documents.
The Paying Agent and Registrar may rely and shall be protected in acting upon any
resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order,
note, or other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties.
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Section 11.03 Liability.
The Paying Agent and Registrar shall not be liable for any error of judgment made in
good faith by the Paying Agent and Registrar unless it shall be proved that the Paying Agent and
Registrar was negligent in ascertaining the pertinent facts.
Section 11.04 Holding Note.
The Paying Agent and Registrar may acquire and hold, or become the pledgee of, any of
the Note, and otherwise deal with the Authority, City or Chief in the same manner and to the
same extent and with like effect as though it were not Paying Agent and Registrar hereunder.
Section 11.05 Resignation.
The Paying Agent and Registrar may resign and be discharged by giving to the Authority,
Chief and the Noteholders thirty days’ notice in writing of such resignation, specifying a date
when such resignation shall take effect. Such resignation shall take effect on the day specified in
such notice, unless previously a successor paying agent and note registrar shall have been
appointed by the Noteholders as hereinafter provided, in which event such resignation shall take
effect immediately on the appointment at any time for failure to perform its obligations set forth
in this Note Resolution by an instrument or instruments in writing, appointing a successor to the
Paying Agent and Registrar so removed, filed with the Paying Agent and Registrar and executed
by the Noteholders.
Section 11.06 Appointment of Successor.
In case at any time the Paying Agent and Registrar shall resign or shall be removed or
otherwise shall become incapable of acting, or shall be adjudged bankrupt or insolvent, or if a
receiver of the Paying Agent and Registrar or of its property shall be appointed, or if a public
supervisory office shall take charge or control of the Paying Agent and Registrar or of its
property or affairs, a vacancy shall forthwith and ipso facto be created in the office of such
Paying Agent and Registrar hereunder, and a successor shall be appointed by the holders of the
Series 2013 A Note hereby secured and then outstanding by an instrument or instruments in
writing filed with the Paying Agent and Registrar and executed by such Noteholders, notification
thereof being given to the Authority and Chief. If no appointment of a successor Paying Agent
and Registrar shall be made pursuant to the foregoing provisions of this paragraph within thirty
days after vacancy shall have occurred in the office of Paying Agent and Registrar, the Authority
shall serve as Paying Agent and Registrar until appointment of a successor.
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ARTICLE XII
MISCELLANEOUS
Section 12.01 Limitation of Rights.
With the exception of any rights herein expressly conferred, nothing expressed or
mentioned in or to be implied from this Note Resolution or in the Note is intended or shall be
construed to give to any person other than the Authority, Chief and the Noteholders any legal or
equitable right, remedy or claim under or with respect to this Resolution or any covenants,
conditions and provisions herein contained; this Resolution and all of the covenants, conditions
and provisions hereof being intended to be and being for the sole and exclusive benefit of the
Authority, Chief and the Noteholders as herein provided.
Section 12.02 Supplemental Resolutions.
The Authority may, upon the request of and with the written consent of Chief and the
Noteholders, pass and execute resolutions supplemental to this Note Resolution which shall not
be inconsistent with the terms and provisions hereof.
Section 12.03 Severability.
If any provision of this Note Resolution shall be held or deemed to be or shall, in fact, be
illegal, inoperative or unenforceable, the same shall not affect any other provision or provisions
herein contained or render the same invalid, inoperative or unenforceable to any extent whatever.
Section 12.04 Immunity of Officers.
No recourse for the payment of any part of the principal of or interest on the Note or for
the satisfaction of any liability arising from, founded upon or existing by reason of the issue,
purchase or ownership of the Note shall be had against any officer, member, employee or agent
of the Authority or the City or the State of Nebraska, as such, all such liability to be expressly
released and waived as a condition of and as a part of the consideration for the issue, sale and
purchase of the Note.
Section 12.05 Incorporation of Act.
This Note Resolution does hereby incorporate by reference, the same as though fully set
out herein, the provisions of Section 12 of Article VIII of the Nebraska Constitution and Sections
18-2101 through 18-2154, Nebraska Revised Statutes, as amended.
Section 12.06 Prior Resolutions.
All resolutions or parts thereof, in conflict with the provisions of this Note Resolution are
to the extent of such conflicts hereby repealed.
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Section 12.07 Effective Date.
This Note Resolution shall be in full force and effect from and after its adoption as
provided by law.
Section 12.08 Notices to Parties.
Any notice, demand, certificate, request, instrument or other communication authorized
or required by this Note Resolution shall be in writing and shall be deemed to have been
sufficiently given or filed for all purposes of this Note Resolution if and when mailed by
registered mail, return receipt requested, postage prepaid, addressed as follows:
IF TO THE AUTHORITY:
Grand Island Community Redevelopment Authority
Attention
IF TO Chief:
_________________________
__________________________
IF TO THE PAYING AGENT AND REGISTRAR:
Grand Island City Treasurer
City Hall
Grand Island,
Section 12.09 Captions.
The captions or headings in this Note Resolution are for convenience only and in no way
define, limit or describe the scope or intent of any provisions or sections of this Note Resolution.
IN WITNESS WHEREOF, the undersigned hereby certify that the members of the
Community Redevelopment Authority of the City of Grand Island, Nebraska passed and adopted
this Note Resolution, and caused these presents to be signed in its name and behalf by a majority
of its members and its official seal to be hereunto affixed, and to be attested by its Secretary, on
the date first above written.
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COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA
__________________________________________
Chairman
ATTEST:
_________________________________
Secretary
Grand Island Regular Meeting - 5/29/2013 Page 104 / 146
Exhibit A
UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF HALL
TAX INCREMENT REVENUE NOTE OF THE COMMUNITY
REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA
(Chief PROJECT)
SERIES 2013 A
Principal Amount Interest Rate Per Annum Final Maturity Date
$579,870.00 0.0%December 31, 2028
KNOW ALL PERSONS BY THESE PRESENTS: That the Community Redevelopment
Authority of the City of Grand Island, Nebraska, hereby acknowledges itself to owe and for
value received promises to pay, but only from the sources herein designated, to the registered
owner designated on the reverse hereof, or registered assigns, the principal sum shown above in
lawful money of the United States of America with such principal sum to become due on the
maturity date set forth above, with interest on the unpaid balance from date of delivery hereof
until maturity or earlier redemption at the rate of zero percent (0.0%) per annum, subject to
limitation as set forth in the authorizing Resolution. Said interest shall be payable semiannually
on June 1 and December 1 of each year commencing on June 1, 2015, until December 31, 2028,
at which time said Note is due and payable in full. This Note is subject to mandatory partial
prepayment as provided in the Resolution of the Authority authorizing the issuance of this Note.
The payment of principal and interest due upon the final maturity is payable upon presentation
and surrender of this Note to the Treasurer of said Authority, as Paying Agent and Registrar for
said Authority, at the offices of the Community Redevelopment Authority of the City of Grand
Island at City Hall, in Grand Island, Nebraska. The payments of interest and of mandatory partial
redemption of principal on each interest payment date (other than at final payment) will be paid
when due by a check or draft mailed by said Paying Agent and Registrar to the registered owner
of this Note, as shown on the books or records maintained by the Paying Agent and Registrar, at
the close of business on the last business day of the calendar month immediately preceding the
calendar month in which the interest payment date occurs, to such owner's address as shown on
such books and records. Any payment of interest or mandatory redemption of principal not
timely paid when due shall cease to be payable to the person entitled thereto as of the Record
Date such interest was payable, and shall be payable to the person who is the registered owner of
this Note on such special record date for payment of such defaulted interest or redemption price
as shall be fixed by the Paying Agent and Registrar whenever monies for such purpose become
available.
The Authority, however, reserves the right and option of prepaying principal of this Note,
in whole or in part, from any available sources at any time at the principal amount thereof plus
accrued interest to the date fixed for redemption. Notice of any such optional prepayment shall
be given by mail, sent to the registered owner of this Note at said registered owner's address in
Grand Island Regular Meeting - 5/29/2013 Page 105 / 146
the manner provided in the Resolution authorizing this Note. The principal of this Note shall be
subject to mandatory redemptions made in part on any interest payment date from available
funds without any requirement for notice. Such optional and mandatory prepayments shall be
made upon such terms and conditions as are provided for in the Resolution authorizing this Note.
This Note is the single Note of its series of the total principal amount of Five Hundred
Seventy Nine Thousand Eight Hundred Seventy and no one hundredths Dollars ($579,870.00)
issued by the Authority for the purpose of paying the costs of redevelopment of certain real
estate located in the City of Grand Island, as designated in the Redevelopment Plan
recommended by the Authority and approved by the City Council of the City of Grand Island,
Nebraska (the “Plan”), all in compliance with Article 21 of Chapter 18, Nebraska Revised
Statutes, as amended, and has been duly authorized by resolution passed and approved by the
Mayor and City Council of the City of Grand Island, acting as the governing body of the
Authority (the “Resolution”).
This Note constitutes a limited obligation of the Authority payable exclusively from that
portion of the ad valorem real estate taxes mentioned in subdivision (1)(b) of Section 18-2147,
Nebraska Revised Statutes, as levied, collected and apportioned from year to year with respect to
certain real estate located within the “Project” as defined in the Resolution. Pursuant to the
Resolution and Section 18-2150, Nebraska Revised Statutes, said portion of taxes has been
pledged for the payment of this Note, both principal and interest as the same fall due or become
subject to mandatory redemption. This Note shall not constitute a general obligation of the
Authority and the Authority shall be liable for the payment thereof only out of said portion of
taxes as described in this paragraph. This Note shall not constitute an obligation of the State of
Nebraska or of the City or Grand Island (except for such receipts as have been pledged pursuant
to Section 18-2150, Nebraska Revised Statutes) and neither the State of Nebraska nor the City of
Grand Island shall be liable for the payment thereof from any fund or source including but not
limited to tax monies belonging to either thereof (except for such receipts as have been pledged
pursuant to Section 18-2150, Nebraska Revised Statutes). Neither the members of the Authority's
governing body nor any person executing this Note shall be liable personally on this Note by
reason of the issuance hereof. The Resolution authorizing said issue designates the terms upon
which additional Notes payable from said taxes may be issued in the future.
This Note is transferable by the registered owner or such owner's attorney duly
authorized in writing at the office of the Paying Agent and Registrar upon surrender of this Note
for notation of transfer as provided on the reverse hereof and subject to the conditions provided
for in the Resolution authorizing the issuance of this Note. The Authority, the Paying Agent and
Registrar and any other person may treat the person in whose name this Note is registered as the
absolute owner hereof for the purposes of receiving payment due hereunder and for all purposes
and shall not be affected by any notice to the contrary, whether this Note be overdue or not.
In the event the monies collected and held in that special fund established under Section 18-2147
of the Nebraska Revised Statutes and pursuant to the Redevelopment Plan and the Resolution
authorizing the issuance of this Note are insufficient to pay in full all amounts due and owing on
December 31, 2028, and all excess ad valorem taxes generated by the Redevelopment Project, as
set forth in the Redevelopment Plan, have been collected by the City of Grand Island, Nebraska,
Grand Island Regular Meeting - 5/29/2013 Page 106 / 146
and have been paid, as required by the Redevelopment Agreement and this Note, towards the
retirement of the amounts due hereunder, then, on December 31, 2028, neither the
Redevelopment Authority or the City of Grand Island, Nebraska, shall have any further payment
or other obligations under this Note and the Holder shall, in writing, waive and otherwise forgive
any unpaid portion of the principal and interest upon the request of the Redevelopment Authority
or the City
THIS NOTE, UNDER CERTAIN TERMS SET FORTH IN THE RESOLUTION
AUTHORIZING ITS ISSUANCE, MAY ONLY BE TRANSFERRED TO PERSONS OR
ENTITIES DELIVERING AN INVESTMENT LETTER TO THE PAYING AGENT AND
REGISTRAR CONFORMING TO REQUIREMENTS SET FORTH IN SAID RESOLUTION.
If the day for payment of the principal of or interest on this Note shall be a Saturday,
Sunday, legal holiday or a day on which banking institutions in the City of Grand Island,
Nebraska, are authorized by law or executive order to close, then the date for such payment shall
be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which
such banking institutions are authorized to close, and payment on such date shall have the same
force and effect as if made on the nominal date of payment.
IT IS HEREBY CERTIFIED AND WARRANTED that all conditions, acts and
things required by law to exist or to be done precedent to and in the issuance of this Note, did
exist, did happen and were done and performed in regular and due form and time as required by
law and that the indebtedness of said Authority, including this Note, does not exceed any
limitation imposed by law.
IN WITNESS WHEREOF, the Chair and Secretary of the Community Redevelopment
Authority of the City of Grand Island have caused this Note to be executed on behalf of said
Authority by signing and by causing the official seal of said Authority to be affixed hereto, all as
of the date of issue shown above.
Delivered this _____ day of May, 2013.
(SEAL)COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA
By:___________________________
Chairman
ATTEST:
_________________________________
Secretary
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PROVISION FOR REGISTRATION
The ownership of this Note shall be registered as to both principal and interest on the
books and records of the Community Redevelopment Authority of the City of Grand Island,
Nebraska, kept by the Paying Agent and Registrar identified in the foregoing Note, who shall
make notation of such registration in the registration blank below, and the transfer of this Note
may thereafter be registered only upon an assignment duly executed by the registered owner or
such owner's attorney or legal representative, in such form as shall be satisfactory to said Paying
Agent and Registrar, such registration of transfer to be made on such books and endorsed hereon
by said Paying Agent and Registrar
Date of Registration Name of Registered Owner Signature of Paying
Registrar
May _______, 2013 Chief Industries, Inc.__________________
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Exhibit B
UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF HALL
TAX INCREMENT REVENUE NOTE OF THE COMMUNITY
REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA
(Chief PROJECT)
SERIES 2013 A
Principal Amount Interest Rate Per Annum Final Maturity Date
$100,000.00 0.0%December 31, 2028
KNOW ALL PERSONS BY THESE PRESENTS: That the Community Redevelopment
Authority of the City of Grand Island, Nebraska, hereby acknowledges itself to owe and for
value received promises to pay, but only from the sources herein designated, to the registered
owner designated on the reverse hereof, or registered assigns, the principal sum shown above in
lawful money of the United States of America with such principal sum to become due on the
maturity date set forth above, with interest on the unpaid balance from date of delivery hereof
until maturity or earlier redemption at the rate of zero percent (0.0%) per annum, subject to
limitation as set forth in the authorizing Resolution. Said interest shall be payable semiannually
on June 1 and December 1 of each year commencing on June 1, 2015, until December 31, 2028,
at which time said Note is due and payable in full. This Note is subject to mandatory partial
prepayment as provided in the Resolution of the Authority authorizing the issuance of this Note.
The payment of principal and interest due upon the final maturity is payable upon presentation
and surrender of this Note to the Treasurer of said Authority, as Paying Agent and Registrar for
said Authority, at the offices of the Community Redevelopment Authority of the City of Grand
Island at City Hall, in Grand Island, Nebraska. The payments of interest and of mandatory partial
redemption of principal on each interest payment date (other than at final payment) will be paid
when due by a check or draft mailed by said Paying Agent and Registrar to the registered owner
of this Note, as shown on the books or records maintained by the Paying Agent and Registrar, at
the close of business on the last business day of the calendar month immediately preceding the
calendar month in which the interest payment date occurs, to such owner's address as shown on
such books and records. Any payment of interest or mandatory redemption of principal not
timely paid when due shall cease to be payable to the person entitled thereto as of the Record
Date such interest was payable, and shall be payable to the person who is the registered owner of
this Note on such special record date for payment of such defaulted interest or redemption price
as shall be fixed by the Paying Agent and Registrar whenever monies for such purpose become
available.
The Authority, however, reserves the right and option of prepaying principal of this Note,
in whole or in part, from any available sources at any time at the principal amount thereof plus
accrued interest to the date fixed for redemption. Notice of any such optional prepayment shall
be given by mail, sent to the registered owner of this Note at said registered owner's address in
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the manner provided in the Resolution authorizing this Note. The principal of this Note shall be
subject to mandatory redemptions made in part on any interest payment date from available
funds without any requirement for notice. Such optional and mandatory prepayments shall be
made upon such terms and conditions as are provided for in the Resolution authorizing this Note.
This Note is the single Note of its series of the total principal amount of One Hundred
Thousand and no one hundredths Dollars ($100,000.00) issued by the Authority for the purpose
of paying the costs of redevelopment of certain real estate located in the City of Grand Island, as
designated in the Redevelopment Plan recommended by the Authority and approved by the City
Council of the City of Grand Island, Nebraska (the “Plan”), all in compliance with Article 21 of
Chapter 18, Nebraska Revised Statutes, as amended, and has been duly authorized by resolution
passed and approved by the Mayor and City Council of the City of Grand Island, acting as the
governing body of the Authority (the AResolution”).
This Note constitutes a limited obligation of the Authority payable exclusively from that
portion of the ad valorem real estate taxes mentioned in subdivision (1)(b) of Section 18-2147,
Nebraska Revised Statutes, as levied, collected and apportioned from year to year with respect to
certain real estate located within the “Project” as defined in the Resolution. Pursuant to the
Resolution and Section 18-2150, Nebraska Revised Statutes, said portion of taxes has been
pledged for the payment of this Note, both principal and interest as the same fall due or become
subject to mandatory redemption. This Note shall not constitute a general obligation of the
Authority and the Authority shall be liable for the payment thereof only out of said portion of
taxes as described in this paragraph. This Note shall not constitute an obligation of the State of
Nebraska or of the City or Grand Island (except for such receipts as have been pledged pursuant
to Section 18-2150, Nebraska Revised Statutes) and neither the State of Nebraska nor the City of
Grand Island shall be liable for the payment thereof from any fund or source including but not
limited to tax monies belonging to either thereof (except for such receipts as have been pledged
pursuant to Section 18-2150, Nebraska Revised Statutes). Neither the members of the Authority's
governing body nor any person executing this Note shall be liable personally on this Note by
reason of the issuance hereof. The Resolution authorizing said issue designates the terms upon
which additional Notes payable from said taxes may be issued in the future.
This Note is transferable by the registered owner or such owner's attorney duly
authorized in writing at the office of the Paying Agent and Registrar upon surrender of this Note
for notation of transfer as provided on the reverse hereof and subject to the conditions provided
for in the Resolution authorizing the issuance of this Note. The Authority, the Paying Agent and
Registrar and any other person may treat the person in whose name this Note is registered as the
absolute owner hereof for the purposes of receiving payment due hereunder and for all purposes
and shall not be affected by any notice to the contrary, whether this Note be overdue or not.
In the event the monies collected and held in that special fund established under Section 18-2147
of the Nebraska Revised Statutes and pursuant to the Redevelopment Plan and the Resolution
authorizing the issuance of this Note are insufficient to pay in full all amounts due and owing on
December 31, 2028, and all excess ad valorem taxes generated by the Redevelopment Project, as
set forth in the Redevelopment Plan, have been collected by the City of Grand Island, Nebraska,
and have been paid, as required by the Redevelopment Agreement and this Note, towards the
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retirement of the amounts due hereunder, then, on December 31, 2028, neither the
Redevelopment Authority or the City of Grand Island, Nebraska, shall have any further payment
or other obligations under this Note and the Holder shall, in writing, waive and otherwise forgive
any unpaid portion of the principal and interest upon the request of the Redevelopment Authority
or the City
THIS NOTE, UNDER CERTAIN TERMS SET FORTH IN THE RESOLUTION
AUTHORIZING ITS ISSUANCE, MAY ONLY BE TRANSFERRED TO PERSONS OR
ENTITIES DELIVERING AN INVESTMENT LETTER TO THE PAYING AGENT AND
REGISTRAR CONFORMING TO REQUIREMENTS SET FORTH IN SAID RESOLUTION.
If the day for payment of the principal of or interest on this Note shall be a Saturday,
Sunday, legal holiday or a day on which banking institutions in the City of Grand Island,
Nebraska, are authorized by law or executive order to close, then the date for such payment shall
be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which
such banking institutions are authorized to close, and payment on such date shall have the same
force and effect as if made on the nominal date of payment.
IT IS HEREBY CERTIFIED AND WARRANTED that all conditions, acts and
things required by law to exist or to be done precedent to and in the issuance of this Note, did
exist, did happen and were done and performed in regular and due form and time as required by
law and that the indebtedness of said Authority, including this Note, does not exceed any
limitation imposed by law.
IN WITNESS WHEREOF, the Chair and Secretary of the Community Redevelopment
Authority of the City of Grand Island have caused this Note to be executed on behalf of said
Authority by signing and by causing the official seal of said Authority to be affixed hereto, all as
of the date of issue shown above.
Delivered this _____ day of May, 2013.
(SEAL)COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA
By:___________________________
Chairman
ATTEST:
_________________________________
Secretary
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PROVISION FOR REGISTRATION
The ownership of this Note shall be registered as to both principal and interest on the
books and records of the Community Redevelopment Authority of the City of Grand Island,
Nebraska, kept by the Paying Agent and Registrar identified in the foregoing Note, who
shall make notation of such registration in the registration blank below, and the transfer of
this Note may thereafter be registered only upon an assignment duly executed by the
registered owner or such owner's attorney or legal representative, in such form as shall be
satisfactory to said Paying Agent and Registrar, such registration of transfer to be made on
such books and endorsed hereon by said Paying Agent and Registrar
Date of Registration Name of Registered Owner Signature of Paying
Registrar
May _______, 2013 Grand Island Community
Redevelopment Authority __________________
29
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EXHIBIT C
DESCRIPTION OF PROJECT
Acquisition of the real property comprising a part of the property described on Exhibit D,
demolition of structures and site preparation pursuant to the MOU; prepare the same for
development, install drives, streets, curb and gutter, foundations, pipe and underground
electrical infrastructure, and related appurtenances to serve the property constituting the
Project, including reimbursement of such expenses, related to the construction and
installation of a 33,456 square foot manufacturing plant.
30
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EXHIBIT D
DESCRIPTION OF PREMISES
Pledged with an effective date of January 1, 2014
Lot 1 of Chief Fab Second Subdivision, Grand Island, Hall County Nebraska.
31
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_________________________________
REDEVELOPMENT CONTRACT
_________________________________
By and Between
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
and
CHIEF INDUSTRIES, INC.
____________________________
Dated May ____, 2013
____________________________
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REDEVELOPMENT CONTRACT
This REDEVELOPMENT CONTRACT (the “Contract”), dated May ___, 2013, is made and
entered into by and between the COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA (the “Authority”) and CHIEF INDUSTRIES, INC., a Delaware
corporation (the “Developer”).
WITNESSETH:
WHEREAS, the City of Grand Island, Nebraska (the “City”), in furtherance of the purposes and
pursuant to the provisions of Article VIII, Section 12 of the Nebraska Constitution and Sections 18-2101
to 18-2154, inclusive, Neb. Rev. Stat., (2012), as amended (collectively the “Act”), and further pursuant
to a Resolution duly passed and approved by the Mayor and Council of the City, has designated an area of
the City as blighted and substandard and in need of redevelopment (the “Blighted Area”); and
WHEREAS, the parties have entered into a Memorandum of Understanding dated July 25th,
2012, (the “MOU”) related to the redevelopment of a portion of the Blighted Area; and
WHEREAS, the Developer desires to redevelop a portion of the Blighted Area by acquiring a
site and preparing the same for redevelopment by the construction of an industrial building intended to
house the Chief Industries, Inc. production facility (the “Project, as more fully described herein); and
WHEREAS, the construction of the Project will further the purposes of the Act by remediating
certain blighted and substandard conditions existing in the Redevelopment Area; and
WHEREAS, the Authority and the Developer desire to enter into this Contract for the purpose of
setting forth the general terms and conditions under which the Developer will construct the Project and
receive tax increment financing assistance from the Authority in respect thereof.
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein,
the Authority and the Developer do hereby represent, covenant, and agree as follows:
ARTICLE I
DEFINITIONS
Section 1.01.Definitions of Words and Terms. In addition to words and terms defined
elsewhere in this Contract, the following words and terms used herein have the following meanings:
“Act” means, collectively, Article VIII, Section 12 of the Nebraska Constitution and Sections 18-
2101 to 18-2154, inclusive, Neb. Rev. Stat., (2012), as amended, and acts amendatory thereof and
supplemental thereto.
“Authority” means the Community Redevelopment Authority of the City of Grand Island,
Nebraska.
“TIF Resolution” means any resolution passed and approved by the Authority authorizing the
issuance of any series of TIF Indebtedness.
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“City” means the City of Grand Island, Nebraska.
“Completion Certificate” means a certificate in substantially the form attached hereto as
Exhibit E, executed by the Officer, representing and warranting that the Project is substantially complete.
“Contract” means this Redevelopment Contract between the Authority and the Developer, as
supplemented or amended from time to time in accordance with its terms.
“Construction Plans” means the plans and specifications for the construction of the Project
approved by the City and all other requisite governmental authorities.
“County Assessor” means the Assessor of the County of Hall, Nebraska, or such other official
acting in such capacity.
“County Treasurer” means the Treasurer of the County of Hall, Nebraska, or such other official
acting in such capacity.
“Developer” means Chief Industries, Inc., a Delaware corporation.
“Lender” means the original purchaser or purchasers of any series of TIF Indebtedness,
including, if and when applicable, the Developer.
“Officer” means the Officer of the Developer, or such other person as is duly authorized to act on
behalf of and legally bind the Developer.
“Permitted Subsequent Approvals” means the building permits and other governmental
approvals customarily obtained prior to construction which have not been obtained on the date that this
Contract is executed, which the City or other governmental entity has not yet determined to grant.
“Project” means the construction of the improvements described in Exhibit B attached hereto.
“Project Costs” means those costs or expenses identified on Exhibit D attached hereto incurred
by the Developer in accordance with the Act to acquire, construct, equip, and furnish the Project.
“Redevelopment Area” means that certain real property legally described on Exhibit A, all of
which has been declared blighted and substandard by the City pursuant to the Act.
“Redevelopment Plan” means the redevelopment plan amendment for Grand Island CRA Area
#8 related to the Project and approved by the Grand Island City Council.
“TIF Indebtedness” means any bonds, notes, loans, advances of money or other indebtedness,
including interest and premiums, if any, thereon, incurred by the Authority pursuant to the Act and
Article III and secured in whole or in part by the TIF Revenues.
“TIF Revenues” means the incremental ad valorem taxes on real property in the Redevelopment
Area described in Section 18-2147(1) (b) of the Act, which will be allocated and paid to the Authority
pursuant to the Act.
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Section 1.02.Rules of Interpretation.
(a)Words of the masculine gender shall be deemed and construed to include correlative
words of the feminine and neuter genders.
(b)Unless the context shall otherwise indicate, the words importing the singular number
shall include the plural and vice versa, and words importing persons shall include firms,
associations and corporations, including public bodies, as well as natural persons.
(c)All references in this Contract to designated “Articles,” “Sections,” and other
subdivisions are, unless otherwise specified, to the designated Articles, Sections and
subdivisions hereof as originally executed.
(d)The words “herein,” “hereof,” “hereunder,” and other words of similar import refer to
this Contract as a whole and not to any particular Article, Section or subdivision.
ARTICLE II
REPRESENTATIONS
Section 2.01.Representations by the Authority. The Authority makes the following
representations as the basis for the undertakings on its part herein contained:
(a)The Authority has been duly organized and validly exists as a community Redevelopment
Authority under and pursuant to the Act.
(b)The Redevelopment Plan is feasible and in conformity with the general plan for the
development of the City and the legislative declarations and determinations set forth in the
Act.
(c)The Project will achieve the public purposes of the Act by, among other things, improving
public infrastructure, increasing the tax base, and lessening blighted and substandard
conditions in the Redevelopment Area.
(d)Based on the representations of the Developer the Project would not be economically
feasible without the use of tax-increment financing; the Project would not occur in the
Redevelopment Area without the use of tax-increment financing; and the costs and
benefits of the Project, including costs and benefits to other affected political
subdivisions, the economy of the City, and the demand for public and private services,
have been analyzed by the Authority and have been found to be in the long-term best
interests of the City.
(e)The Authority has determined that the proposed land uses and building requirements in
the Redevelopment Area are designed with the general purpose of accomplishing 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,
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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.
(f)To the best of the Authority’s knowledge, there is no litigation, proceeding, or
investigation pending or, to the knowledge of the Authority, threatened against the
Authority or the City with respect to the Project or this Contract. In addition, no
litigation, proceeding or investigation is pending or, to the knowledge of the Authority,
threatened against the Authority or the City seeking to restrain, enjoin or in any way limit
the approval or issuance and delivery of this Contract or which would in any manner
challenge or adversely affect the existence or powers of the Authority to enter into and
carry out the transactions described in or contemplated by the execution, delivery, validity
or performance by the Authority of the terms and provisions of this Contract.
(g)No consent or approval is required to be obtained from, and no action need be taken by, or
document filed with, any governmental body or corporate entity in connection with the
execution and delivery by the Authority of this Contract.
(h)No default or event of default has occurred and is continuing, and no event has occurred
and is continuing which with the lapse of time or the giving of notice, or both, would
constitute a default or an event of default in any material respect on the part of the
Authority under this Contract.
(i)The Authority has no reason to believe that all permits, licenses, and approvals necessary
to construct the Project, including the approval of the Construction Plans, cannot be
obtained by the Developer.
Section 2.02.Representations by the Developer. The Developer makes the following
representations as the basis for the undertakings on its part herein contained:
(a)The Developer has all necessary power and authority to execute and deliver and perform
the terms and obligations of this Contract and to execute and deliver the documents
required of the Developer herein, and such execution and delivery has been duly and
validly authorized and approved by all necessary proceedings. Accordingly, this Contract
constitutes the legal, valid, and binding obligation of the Developer, enforceable in
accordance with its terms.
(b)The execution and delivery of this Contract, the consummation of the transactions
contemplated thereby, and the fulfillment of the terms and conditions hereof do not and
will not conflict with or result in a breach of any of the terms or conditions of any
corporate or organizational restriction or of any agreement or instrument to which it is
now a party, and do not and will not constitute a default under any of the foregoing.
(c)No litigation, proceeding, or investigation is pending or, to the knowledge of the Developer,
threatened against the Developer or any member of the Developer or the Project. In
addition, no litigation, proceeding, or investigation is pending or, to the knowledge of the
Developer, threatened against the Developer seeking to restrain, enjoin or in any way limit
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the approval or issuance and delivery of this Contract or which would in any manner
challenge or adversely affect the existence or powers of the Developer to enter into and
carry out the transactions described in or contemplated by the execution, delivery, validity,
or performance by the Developer of the terms and provisions of this Contract.
(d)The Developer has not incurred any material liabilities or entered into any material
transactions other than in the ordinary course of business except for the transactions
contemplated by this Contract (including the transactions between the Developer and its
Senior Credit Facility), and there has been no material adverse change in the business,
financial position, prospects or results of operations of the Developer, which could affect
the Developer’s ability to perform its obligations pursuant to this Contract from that
shown in the financial information provided by the Developer to the City prior to the
execution of this Contract.
(e)No default or event of default has occurred and is continuing, and no event has occurred
and is continuing which with the lapse of time or the giving of notice, or both, would
constitute a default or an event of default in any material respect on the part of the
Developer under this Contract, or any other material agreement or material instrument to
which the Developer is a party or by which the Developer is or may be bound.
(f)Except for Permitted Subsequent Approvals, the Developer has received and is in good
standing with respect to all certificates, licenses, inspections, franchises, consents,
immunities, permits, authorizations and approvals, governmental or otherwise, necessary
to conduct and to continue to conduct its business as heretofore conducted by it and to
own or lease and operate its properties as now owned or leased by it. Except for
Permitted Subsequent Approvals, the Developer has obtained all certificates, licenses,
inspections, franchises, consents, immunities, permits, authorizations and approvals,
governmental or otherwise, necessary to acquire, construct, equip, operate and maintain
the Project. The Developer has no reason to believe that all such certificates, licenses,
consents, permits, authorizations or approvals which have not yet been obtained will not
be obtained in due course.
(g)Except for Permitted Subsequent Approvals, all governmental permits and licenses
required by applicable law to construct, occupy and operate the Project have been issued
and are in full force and effect or, if the present stage of development does not allow such
issuance, the Developer has no reason to believe, after due inquiry of the appropriate
governmental officials, that such permits and licenses will not be issued in a timely
manner in order to permit the Project to be constructed.
(h)The Developer is in compliance with all valid laws, ordinances, orders, decrees, decisions,
rules, regulations and requirements of every duly constituted governmental authority,
commission and court applicable to any of its affairs, business, operations as
contemplated by this Contract.
(i)The information furnished to the City by the Developer in connection with the matters
covered in this Contract is true and correct and does not contain any untrue statement of
any material fact and does not omit to state any material fact required to be stated therein
or necessary to make any statement made therein, in the light of the circumstances under
which it was made, not misleading.
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(j)The Project would not be economically feasible without the use of tax-increment
financing; and the Project would not occur in the Redevelopment Area without the use of
tax-increment financing.
Section 2.03.Conditions to Effective Date of this Contract. This Contract shall not become
effective until each of the following has been completed: the Developer has furnished the Authority with
(a) a copy of the Developer’s Certificate of Authority certified by the Secretary of State of the State of
Nebraska, and (b) a legal opinion from counsel to the Developer in form and substance acceptable to the
Authority covering: (1) the due organization of the Developer and the power and authority of the
Developer to execute this Contract; and (2) the enforceability of this Contract against the Developer.
ARTICLE III
OBLIGATIONS OF THE AUTHORITY
Section 3.01.Division of Taxes. In accordance with Section 18-2147 of the Act, the Authority
hereby provides that any ad valorem tax on real property in the Redevelopment Area for the benefit of
any public body be divided for a period of fifteen years after the effective date of this provision, which
shall be January 1, 2014, as follows:
(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 (as defined in the
Act) shall be paid into the funds of each such public body in the same proportion as all
other taxes collected by or for the bodies; and
(b)That portion of the ad valorem tax on real property in the Redevelopment Area in excess
of such amount, if any, shall be allocated to, is pledged to, and, when collected, paid into a
special fund of the Authority to pay the principal of, the interest on, and any premiums
due in connection with the bonds, loans, notes, advances of money to, or indebtedness
incurred by, whether funded, refunded, assumed, or otherwise, the Authority for financing
or refinancing, in whole or in part, the Project. When such bonds, loans, notes, advances
of money, or indebtedness, including interest and premiums due have been paid, the
Authority shall so notify the County Assessor and the County Treasurer and all ad
valorem taxes upon real property in the Redevelopment Area shall thereafter be paid into
the funds of the respective public bodies.
Section 3.02. Issuance of TIF Indebtedness. The Authority hereby agrees to incur TIF
Indebtedness, including refunding TIF Indebtedness, in one or more series in accordance with the general
terms and conditions specified on Exhibit C, so long as the conditions precedent described in Section
3.03 have been satisfied for such series of TIF Indebtedness. The final terms and conditions of each
series of TIF Indebtedness, including, without limitation, any applicable coverage ratio, debt service
reserve, or other credit enhancement for such series of TIF Indebtedness, shall be stated in the TIF
Resolution authorizing such series of TIF Indebtedness, subject to the mutual acceptance of such terms by
the Authority and the Developer, which acceptance shall not be unreasonably withheld. Notwithstanding
the foregoing, it shall be the sole and exclusive responsibility of the Developer to find an acceptable
purchaser for each series of TIF Indebtedness issued by the Authority pursuant to this Contract.
Section 3.03.Conditions Precedent to TIF Indebtedness. Notwithstanding anything in this
Contract to the contrary, prior to the issuance of any series of TIF Indebtedness the Developer shall
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submit satisfactory evidence to the Authority (unless waived by the Authority in its sole discretion)
indicating that:
(a)private funds have been committed by the Developer in amounts sufficient to complete
the construction of the proposed Project;
(c)Project Costs have been incurred by the Developer, or the Developer has become
obligated to incur such Project Costs, in an amount at least equal to the project portion of
such series of TIF Indebtedness.
(d)Developer shall pay to the Grand Island Community Redevelopment Authority the sum of
$5,000 representing reimbursement of funds expended by the city in the preparation of the
redevelopment plan and issuance of the TIF indebtedness and $1000 to be paid either by
the Developer to the City of Grand Island for administrative costs associated with this
contract .
Section 3.04. Pledge of TIF Revenues. The Authority hereby irrevocably pledges the TIF
Revenues as security for the TIF Indebtedness in accordance with the terms set forth on Exhibit C and
the TIF Resolution.
Section 3.05. Grant of Proceeds of TIF Indebtedness. Subject to the further terms of this
Contract, the Authority shall grant to the Developer the proceeds of the Series A TIF Indebtedness as
described on Exhibit C and shall grant to the Authority the proceeds of the Series B TIF Indebtedness as
described on Exhibit C in one or more advances. The Developer shall use the proceeds of the Series A
TIF Indebtedness solely for reimbursement or payment of Project Costs incurred by the Developer,
including those described in the MOU. The Authority shall use the proceeds of the Series B TIF
Indebtedness to reimburse the grant made to the Developer as set forth in the MOU. Notwithstanding the
foregoing, the amount of all grants made hereunder shall not exceed the amount of Project Costs certified
pursuant to Section 402. Developer shall, on request of the Authority, provide all supporting
documentation showing payment of such Project Costs.
Section 3.06. Creation of Fund. The Authority shall create a special fund to collect and hold
the TIF Revenues. Such special fund shall be used for no purpose other than to pay the principal or
redemption price of and interest on any TIF Indebtedness issued pursuant to Section 3.02 and to establish
such additional reserves and pay such administrative costs as determined necessary by the Authority
and/or the Lender for any TIF Indebtedness.
ARTICLE IV
OBLIGATIONS OF DEVELOPER
Section 4.01.Construction of Project. The Developer shall construct the Project in
accordance with the Construction Plans. The Developer shall be solely responsible for obtaining all
permits, licenses, and approvals necessary to acquire, construct and equip the Project. Until construction
of the Project has been completed, the Developer shall make reports in such detail and at such times as
may be reasonably requested by the Authority as to the actual progress of the Developer with respect to
the construction of the Project. Promptly after the Developer has completed the Project, the Developer
shall furnish the Completion Certificate to the Authority, which, upon its acceptance by the Authority,
shall constitute conclusive evidence of the satisfaction of the agreements and covenants in this Contract
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with respect to the obligations of the Developer and its successors and assigns to construct the Project.
As used in this Contract, the terms “completed” and “completion” shall mean substantial completion of
the Project. The Parties agree that substantial completion may be less than complete installation of
concrete flooring, as the building is intended to be finished in phases.
Section 4.02. Authority Costs. The Developer shall reimburse the Authority, on the date of
the execution of this Contract, for legal fees other expenses incurred by the City and Authority to assist
the Developer.
Section 4.03.No Discrimination. The Developer agrees and covenants for itself and its
successors and assigns that so long as any TIF Indebtedness is outstanding it will not discriminate against
any person or group of persons on account of race, sex, color, religion, national origin, ancestry,
disability, marital status or receipt of public assistance in connection with the Project. The Developer, for
itself and its successors and assigns, agrees that during the construction of the Project, the Developer will
not discriminate against any employee or applicant for employment because of race, religion, sex, color,
national origin, ancestry, disability, marital status or receipt of public assistance. The Developer will
comply with all applicable federal, state and local laws related to the Project.
Section 4.04.Inspections and Audits. The Developer shall upon reasonable advance notice,
allow the Authority and the Authority’s agents (including the City’s Engineer) access to the Project from
time to time for reasonable inspection of the Project. The Authority shall have the right at its own cost
and expense to audit (either through employees of the Authority or a firm engaged by the Authority) the
books and records of the Developer relating to the payment of Project Costs.
Section 4.05.Required Disclosures. The Developer shall immediately notify the Authority of
the occurrence of any material event which would cause any of the information furnished to the Authority
by the Developer in connection with the matters covered in this Contract to contain any untrue statement
of any material fact or to omit to state any material fact required to be stated therein or necessary to make
any statement made therein, in the light of the circumstances under which it was made, not misleading.
Section 4.06. Immigration Status.Developer agrees that any contractor providing services
on the Project site will utilize the federal immigration verification system, as defined in Section 4-114,
Neb. Rev. Stat. (2012), to determine the work eligibility status of new employees physically performing
services on the Project.
Section 4.07 Purchase of Indebtedness.The Developer agrees to purchase or cause to
be purchased the Series A TIF Indebtedness described on Exhibit C, upon issuance, at a price equal
to the principal amount thereof in a private placement satisfactory to the Authority as to its terms
and participants. Neither the Authority nor the City shall have any obligation to provide for the sale
of the Indebtedness. It is the sole responsibility of the Developer to effect the sale of the
Indebtedness in accordance with the terms of this Redevelopment Contract and the
Resolution and if the Indebtedness cannot be sold in a private placement under terms acceptable to
the Authority, this Redevelopment Contract shall cease to be in force and effect and the Authority
and the City shall have no further obligations hereunder. Developer acknowledges that it is its
understanding and the Authority's understanding that interest on the Indebtedness will be
includable in gross income for federal income tax purposes and subject to Nebraska State income
taxation.
Section 4.08 Penal Bond.Pursuant to Section 18-2151, Neb. Rev. Stat, (2012), Developer
shall furnish or cause to be furnished to the City, prior to commencement of construction of the
Redevelopment Project Improvements, a penal bond in an amount of Five Thousand and No/100 Dollars
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($5,000) conditioned upon the Developer at all times making payment of all amounts lawfully due to all
persons supplying or furnishing the Developer, the Developer’s contractor, or his or her subcontractors
who performed labor or applied materials performed or used in the Project. Proof of such penal bond shall
be supplied to the City prior to the start of construction of the Redevelopment Project Improvements.
ARTICLE V
FINANCING OF PROJECT
Section 5.01.Financing. The Developer shall pay all Project Costs and any and all other costs
related to the Project that are in excess of the amounts paid from the proceeds of the TIF Indebtedness
granted to the Developer. The Developer shall timely pay all costs, expenses, fees, charges and other
amounts associated with the Project.
ARTICLE VI
DEFAULT, REMEDIES; INDEMNIFICATION
Section 6.01.General Remedies of the Authority and the Developer. Subject to the further
provisions of this Article VI, in the event of any failure to perform or breach of this Contract or any of its
terms or conditions, by any party hereto or any successor to such party, such party, or successor, shall,
upon written notice from the other, proceed immediately to commence such actions as may be reasonably
designed to cure or remedy such failure to perform or breach which cure or remedy shall be accomplished
within a reasonable time by the diligent pursuit of corrective action. In case such action is not taken, or
diligently pursued, or the failure to perform or breach shall not be cured or remedied within a reasonable
time, this Contract shall be in default and the aggrieved party may institute such proceedings as may be
necessary or desirable to enforce its rights under this Contract, including, but not limited to, proceedings
to compel specific performance by the party failing to perform or in breach of its obligations or exercise
any other remedies that may be provided in this Contract or by applicable law; provided, however, that
the default shall not give rise to a right of rescission or termination of this Contract.
Section 6.02.Forced Delay Beyond Party’s Control. For the purposes of any of the
provisions of this Contract, neither the Authority nor the Developer, as the case may be, nor any successor
in interest, shall be considered in breach of or default in its obligations with respect to the conveyance or
preparation of the Redevelopment Area for redevelopment, or the beginning and completion of
construction of the Project, or progress in respect thereto, in the event of forced delay in the performance
of such obligations due to unforeseeable causes beyond its control and without its fault or negligence,
including, but not restricted to, acts of God, or of the public enemy, acts of the Government, acts of the
other party, fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, and unusually
severe weather or delays in subcontractors due to such causes; it being the purpose and intent of this
provision that in the event of the occurrence of any such forced delay, the time or times for performance
of the obligations of the Authority or of the Developer with respect to construction of the Project, as the
case may be, shall be extended for the period of the forced delay: provided, that the party seeking the
benefit of the provisions of this Section shall, within 30 days after the beginning of any such forced delay,
have first notified the other party thereof in writing, and of the cause or causes thereof and requested an
extension for the period of the forced delay.
Section 6.03.Limitation of Liability; Indemnification. Notwithstanding anything in this
Article VI or this Contract to the contrary, neither the City nor the Authority, nor their officers, directors,
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employees, agents, nor governing bodies shall have any pecuniary obligation or monetary liability under
this Contract. The sole obligation of the Authority under this Contract shall be the issuance of the TIF
Indebtedness and the granting of a portion of the proceeds thereof to the Developer, as specifically set
forth in Sections 3.02 and 3.05. The obligation of the Authority on any TIF Indebtedness shall be limited
solely to the TIF Revenues pledged as security for such TIF Indebtedness. Specifically, but without
limitation, neither the City nor the Authority shall be liable for any costs, liabilities, actions, demands, or
damages for failure of any representations, warranties or obligations hereunder. The Developer will
indemnify and hold each of the City and the Authority and their directors, officers, agents, employees and
members of their governing bodies free and harmless from any loss, claim, damage, demand, tax, penalty,
liability, disbursement, expense, including litigation expenses, attorneys’ fees and expenses, or court costs
arising out of any damage or injury, actual or claimed, of whatsoever kind or character, to property
(including loss of use thereof) or persons, occurring or allegedly occurring in, on or about the Project
during the term of this Contract or arising out of any action or inaction of the Developer in connection
with its activities conducted pursuant to this Contract (whether or not in any way related to the
enforcement of this Contract) and/or in connection with the ownership, use or occupancy and
development or redevelopment of the Redevelopment Area (whether or not in any way related to the
Project).
ARTICLE VII
GENERAL COVENANTS
Section 7.01.Obligation to Restore. So long as the TIF Indebtedness remains outstanding,
the Developer hereby agrees that if any portion of the Project owned by it shall be damaged or destroyed,
in whole or in part, by fire or other casualty, or by any taking in condemnation proceedings or the
exercise of any right of eminent domain, the Developer, to the extent of the net proceeds of insurance
(including any deductible) or condemnation award received by or made available to the Developer but
subject to the rights of any Lender, shall promptly restore, replace or rebuild the same (or shall promptly
cause the same to be restored, replaced or rebuilt) to as nearly as possible the value, quality and condition
it was in immediately prior to such fire or other casualty or taking, with such alterations or changes as
may be approved in writing by the Authority, which approval shall not be unreasonably withheld. The
Developer shall give prompt written notice to the Authority of any damage or destruction to the Project
by fire or other casualty, irrespective of the amount of such damage or destruction, but in such
circumstances the Developer shall make the property safe and in compliance with all applicable laws as
provided herein. If lender consent is required for the application of the insurance proceeds or
condemnation award to the restoration, replacement or rebuilding of the Project under any loan
documents to which the Developer or the Project is subject, the Developer shall request such lender
consent in accordance with the terms of such loan documents. To the extent the net proceeds of insurance
are deposited into any project fund established under the terms of any TIF Resolution relating to any
series of TIF Indebtedness, the Developer may use such moneys in the restoration, replacement and
rebuilding of the Project.
Section 7.02.Assignment of Developer’s Obligations. The Developer shall not assign any of
its rights hereunder nor shall it permit any of its members to assign or to dispose of any interest in the
Developer prior to the completion of the Project without the prior written consent of the Authority.
Following completion of the Project, this Contract and the rights, duties and obligations hereunder as they
relate to the Project may be fully and freely assigned by the Developer provided, however, every assignee
shall, by instrument in writing, for itself and its successors and assigns, and expressly for the benefit of
the Authority, assume all of the obligations of the Developer under this Contract and agree to be subject
to all of the conditions and restrictions to which the Developer is subject (or, in the event the transfer is of
Grand Island Regular Meeting - 5/29/2013 Page 125 / 146
or relates to a portion of the Redevelopment Area, such obligations, conditions and restrictions to the
extent that they relate to such portion). In the event this Contract is assigned in whole or part the
Developer shall be released from any further obligations set forth herein accruing after the date of such
assignment. The Developer shall notify the Authority of any such Assignment including presentation of
the assumption of obligation instrument within 10 days of closing on such assignment.
Section 7.03.Sale of Project.
(a)No sale, transfer, or other conveyance of the Project may be made without the prior
written approval of the Authority, which approval shall not be unreasonably withheld.
The Authority’s right of prior approval of any transferee shall be in force as long as there
is outstanding TIF Indebtedness associated with the Project. The Authority shall require
that any transferee demonstrate to the Authority’s reasonable satisfaction that the
transferee has sufficient financial, management, property ownership and operation
capabilities and that it is committed to the long-term viability of the Project and the land
uses on the property to be sold or transferred (the “Transferee Qualifications”).
(b)The Authority shall be notified by the Developer in writing of the proposed sale of the
Project prior to the proposed effective date of the sale, which notification shall include a
copy of the instrument affecting such sale along with a statement and sufficient
documentation to demonstrate that the Transferee Qualifications have been satisfied with
respect to the proposed transferee. The Authority shall exercise its right to approve or
deny any proposed sale or transfer within 20 days (the “Response Period”) from the date
of receipt of notice from the Developer, or within two business days after the next
regularly scheduled Council meeting if a regularly scheduled Council meeting will not
occur within the Response Period or is scheduled to occur on day 19 or 20 of the
Response Period, which notice shall specify the land proposed to be sold or transferred,
the identity of the proposed transferee and the Transferee Qualifications. Written
approval may be provided by the Authority after approval of the sale or transfer by the
City Council.
(c)The Developer shall require each transferee to enter into a transferee agreement with the
Authority in a form prepared by Authority counsel and reviewed and approved by
Developer counsel, certifying, without limitation, that the transferee has been fully
advised of and is obligated to fully comply with the Redevelopment Plan and this
Contract. Upon execution of a transferee agreement between the Authority and a
transferee, the Developer shall be released from its obligations in this Contract relating to
the transferred property.
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Section 7.04.Mutual Assistance. The Authority and the Developer agree to take such actions,
including the execution and delivery of such documents, instruments, petitions and certifications as may
be necessary or appropriate to carry out the terms, provisions and intent of this Contract and to aid and
assist each other in carrying out said terms, provisions and intent.
Section 7.05.Time of the Essence. Time is of the essence. The Authority and the Developer
will make every reasonable effort to expedite the subject matters hereof and acknowledge that the
successful performance of this Contract requires their continued cooperation.
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ARTICLE VIII
MISCELLANEOUS
Section 8.01.Conflict of Interest. No member of the Authority’s governing body or of any
branch of the City’s government that has any power of review or approval of any of the Developer’s
undertakings shall participate in any decisions relating thereto which affect such person’s personal
interests or the interests of any corporation, partnership, or company in which such person is directly or
indirectly interested. Any person having such interest shall immediately, upon knowledge of such
possible conflict, disclose, in writing, to the Authority the nature of such interest and seek a determination
with respect to such interest by the Authority and, in the meantime, shall not participate in any actions or
discussions relating to the activities herein proscribed.
Section 8.02.Authorized Parties. Whenever under the provisions of this Contract and other
related documents, instruments or any supplemental agreement, a request, demand, approval, notice or
consent of the Authority or the Developer is required, or the Authority or the Developer is required to
agree or to take some action at the request of the other party, such approval or such consent or such
request shall be given for the Authority, unless otherwise provided herein, by the Mayor of the City or his
or her designee and for the Developer by its Officer; and any person shall be authorized to act on any such
agreement, request, demand, approval, notice or consent or other action and neither party shall have any
complaint against the other as a result of any such action taken. The Mayor of the City may seek the
advice, consent or approval of the City Council before providing any supplemental agreement, a request,
demand, approval, notice or consent for the Authority pursuant to this Section.
Section 8.03.No Other Agreement. Except as otherwise expressly provided herein, this
Contract supersedes all prior agreements, negotiations and discussions relative to the subject matter
hereof and is a full integration of the agreement of the parties hereto. In the event of a conflict between
this Contract and any prior agreement or understanding of the parties, this Contract shall control.
Section 8.04.Severability. If any provision, covenant, agreement or portion of this Contract,
or its application to any person, entity or property, is held invalid, such invalidity shall not affect the
application or validity of any other provisions, covenants or portions of this Contract and, to that end, any
provisions, covenants, agreements or portions of this Contract are declared to be severable.
Section 8.05.Nebraska Law. This Contract shall be construed in accordance with the laws of
the State of Nebraska.
Section 8.06.Counterparts. This Contract may be executed in several counterparts, each of
which shall be an original and all of which shall constitute but one and the same agreement.
Section 8.07.Recordation of Agreement. The Authority and the Developer agree to execute
and deliver the original of this Contract, or a notice recording thereof, in proper form for recording and/or
indexing in the appropriate land or governmental records. This Contract shall be recorded by the
Developer, and proof of recording shall be provided to the Authority.
Section 8.08.Binding Effect; Amendment. This Contract shall be binding on the parties
hereto and their respective successors and assigns. This Contract shall run with the Redevelopment Area.
This Contract shall not be amended except by a writing signed by the parties bound hereto.
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IN WITNESS WHEREOF, the Authority and the Developer have signed this Redevelopment
Contract as of the date and year first above written.
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
[ S E A L ]
By: _________________________________________
Chair
ATTEST:
By: ________________________________________
Secretary
STATE OF NEBRASKA )
) ss.
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this _____ day of May, 2013, by
_________________ and _______________________, the Chair and Secretary, respectively, of the
Community Redevelopment Authority of the City of Grand Island, Nebraska.
[ S E A L ]
_______________________________________
Notary Public
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CHIEF INDUSTRIES, INC.
By: __________________________________________
Its __________________________
STATE OF NEBRASKA )
) ss.
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this _____ day of May, 2013, by
_____________________, the ____________________ of Chief Industries, Inc.
[ S E A L ]
_______________________________________
Notary Public
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EXHIBIT A
LEGAL DESCRIPTION
OF BLIGHTED AREA/REDEVELOPMENT AREA
Lot 1 of Chief Fab Second Subdivision in the City of Grand Island, Hall County, Nebraska.
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EXHIBIT B
DESCRIPTION OF PROJECT
Acquisition of the real property on Exhibit A, demolition of structures and site preparation pursuant
to the MOU; prepare the same for development, install drives, streets, curb and gutter, foundations,
pipe and underground electrical infrastructure, and related appurtenances to serve the property
constituting the Project, including reimbursement of such expenses, related to the construction and
installation of a 33,456 square foot manufacturing plant.
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Exhibit C
TIF Indebtedness
Aggregate Principal and Interest Amount payable from TIF Revenues:
Not to exceed $679,870.00 to be issued in two series as follows: Series A, $579,870.00
Series B, $100,000.00
Interest Rate:
Not to exceed 0% per annum, as determined by the TIF Resolution authorizing each
series of TIF Indebtedness.
Maturity Date;
Not later than December 31, 2028.
Security:
The first pledge of TIF Revenues in the aggregate amount of Five Hundred Seventy-
Nine Thousand Eight Hundred Seventy and 00/100 dollars ($579,870.00), shall be allocated to
the Series A TIF Indebtedness until paid in full, or until maturity, whichever is the earlier.
The second pledge of TIF Revenues in the aggregate amount of One Hundred
Thousand and 00/100 dollars ($100,000.00), shall be allocated to the Series B TIF Indebtedness
until paid in full, or until maturity, whichever is the earlier. Payment on the Series B TIF
Indebtedness shall not commence until payment in full of the Series A TIF Indebtedness.
Payment Schedule:
As determined by the TIF Resolution authorizing such TIF Indebtedness.
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EXHIBIT D
PROJECT COSTS
For purposes of this Redevelopment Contract, the term “Project Costs” is limited solely to the
those costs necessary to acquire the real property, prepare the same for development, install drives,
foundations, pipe and underground electrical infrastructure, and related appurtenances to serve the
property constituting the Project, including reimbursement of such expenses.
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EXHIBIT E
FORM OF COMPLETION CERTIFICATE
OF
CHIEF INDUSTRIES, INC.
The undersigned, Chief Industries, Inc. (the “Developer”), pursuant to that certain
Redevelopment Contract dated May __, 2013, between the COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA (the “Authority”) and the
Developer (the “Contract”), hereby certifies to the Authority as follows:
1.As of ____________, 20 , the construction, renovation, repairing, equipping and
constructing of the Project (as such term is defined in the Contract) has been substantially completed in
accordance with the Contract.
2.The Project has been completed in a workmanlike manner and in accordance with the
plans and specifications for the Project submitted to the City of Grand Island, Nebraska to obtain all
building permits related to the Project.
3.Lien waivers for applicable portions of the Project have been obtained.
4.This Completion Certificate is being issued by the Developer to the Authority in
accordance with the Contract to evidence the Developer’s satisfaction of all obligations and covenants
with respect to the Project.
5.The Authority’s acceptance (below) or the Authority’s failure to object in writing to this
Certificate within 30 days of the date of delivery of this Certificate to the Authority (which written
objection, if any, must be delivered to the Developer prior to the end of such 30-day period), and the
recordation of this Certificate with the Hall County Register of Deeds, shall evidence the satisfaction of
the Developer’s agreements and covenants to construct the Project. The Authority’s acceptance of the
Completion Certificate shall release the Developer from any further obligation or liability for construction
of the Project under the terms of the Contract in regard to the portion of the Redevelopment Area for
which the Completion Certificate is furnished.
This Certificate is given without prejudice to any rights against third parties which exist as of the
date hereof or which may subsequently come into being.
Terms not otherwise defined herein shall have the meaning ascribed to such terms in the Contract.
IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand this _____ day of
____________, 20__.
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CHIEF INDUSTRIES, INC.
By: ___________________________________
Printed Name: __________________________
Title: _________________________________
ACCEPTED:
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
By: ___________________________________
Printed Name: __________________________
Title: _________________________________
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Community Redevelopment
Authority (CRA)
Wednesday, May 29, 2013
Regular Meeting
Item J2
Amendment to TIF Contract
Staff Contact: Chad
Grand Island Regular Meeting - 5/29/2013 Page 137 / 146
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 163
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA, PROVIDING NOTICE OF INTENT TO ENTER INTO
AN AMENDED REDEVELOPMENT CONTRACT AFTER THE PASSAGE OF 30 DAYS AND OTHER MATTERS
WHEREAS, the Community Redevelopment Authority of the City of Grand
Island, Nebraska ("Authority"), approved a redevelopment contract with Todd Enck
dated December 30, 2008 for Tax Increment Financing under the Nebraska Community Development Law (the “Act”) on a project within redevelopment area #
6, from Todd Enck (The "Developer") and
WHEREAS, the Community Redevelopment Authority of the City of Grand
Island, Nebraska ("Authority"), is proposing to extend term of the contract from December 31, 2019 to December 31, 2023 on this project, and
WHEREAS, this extension will not result in an increase in the amount of
Tax Increment Financing Provided to the Developer and without the extension
the full amount of TIF required to meet the financing gap will not be collected and made available to the developer, and
WHEREAS, the Developer has complied with the terms of the
Redevelopment Contract and constructed the planned improvements creating a
stabilizing influence in the neighborhood;
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 an Amended
Redevelopment Contract, attached as Exhibit 1, with such changes as are deemed
appropriate by the Authority, consistent with the previously approved redevelopment
plan amendment, 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 __________, 2013.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By ___________________________
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Chairperson
ATTEST:
___________________
Secretary
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Exhibit 1
Attach a copy of the Redevelopment Contract
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REDEVELOPMENT CONTRACT
This Redevelopment Contract is made and entered into as of the _____th day of
___________, 2013, by and between the Community Redevelopment Authority of the City of
Grand Island, Nebraska (“Authority”), and Todd Enck, an individual (“Redeveloper”).
WITNESSETH:
WHEREAS, the City of Grand Island, Nebraska (the “City”), in furtherance of the
purposes and pursuant to the provisions of Section 12 of Article VIII of the Nebraska
Constitution and Sections l8-2101 to 18-2154, Reissue Revised Statutes of Nebraska, 2012, as
amended (collectively the “Act”), has designated an area in the City as blighted and substandard;
and
WHEREAS, Authority and Redeveloper have previously executed a Redevelopment
Contract dated December 30, 2008, (the “Original Contract”) a copy of which is attached hereto
as Exhibit A, for acquisition and redevelopment of a parcel in the blighted and substandard area;
WHEREAS, the parties wish to amend the Original Contract as set forth herein;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
set forth, Authority and Redeveloper do hereby covenant, agree and bind themselves as follows:
1. Pursuant to the Original Contract the Redeveloper was to receive a sum not to exceed
$54,650 through the payment of annual tax increment generated by the project described
in the Original Contract for a period of 10 years from January 1, 2009.
2. To the date of this Amended Redevelopment Contract the Redeveloper has received the
sum of $7,780.03.
3.The obligations of the Authority under the Original Contract are hereby terminated and
the Authority shall undertake the actions set forth herein, in complete substitution
therefore.
4.Authority shall Issue and deliver to Redeveloper its Tax Increment Revenue Note (the
“Note”) in the amount of $46,869.97, bearing interest at the rate of zero percent per
annum. The Note shall mature on December 31, 2023 if not sooner paid in full. If not
fully paid by the maturity date, the Authority shall have no further obligation on the Note
and the Redeveloper shall surrender the Note and mark the same as “Full Paid”.
5.In accordance with Section 18-2147 of the Act, the Authority hereby provides that any ad
valorem tax on the following real property described in the Original Contract, for the
benefit of any public body be divided for a period of fifteen years after the effective date
of this provision as set forth in this section. The effective date of this provision shall be
January 1, 2009. Said taxes shall be divided as follows:
(a)That proportion of the ad valorem tax which is produced by levy at the rate fixed
Grand Island Regular Meeting - 5/29/2013 Page 141 / 146
each year by or for each public body upon the Redevelopment Project Valuation (as
defined in the Act) shall be paid into the funds of each such public body in the same
proportion as all other taxes collected by or for the bodies; and
(b)That proportion of the ad valorem tax on real property in the Redevelopment Area
in excess of such amount (the “Incremental Ad Valorem Tax”), if any, shall be allocated
to, is pledged to, and, when collected, paid into a special fund of the Authority to pay the
principal of, the interest on, and any premiums due in connection with the bonds, loans,
notes or advances of money to, or indebtedness incurred by whether funded, refunded,
assumed, or otherwise, such Authority for financing or refinancing, in whole or in part,
such Project. When such bonds, loans, notes, advances of money, or indebtedness,
including interest and premium due have been paid, the Authority shall so notify the
County Assessor and County Treasurer and all ad valorem taxes upon real property in
such Project shall be paid into the funds of the respective public bodies.
PROVIDED, HOWEVER, IN ALL EVENTS Redeveloper shall not be entitled to
payment of any sums from such division of taxes, which have been paid under the
Original Contract.
6.The Note issued pursuant to the provisions of this contract constitutes a limited obligation
of the Authority payable exclusively from that portion of the ad valorem real estate taxes
mentioned in subdivision (1)(b) of Section 18-2147, R.R.S. Neb. 2012, as levied,
collected and apportioned from year to year with respect to certain real estate located
within the "Redevelopment Project" as defined in the Original Contract. The Note shall
not constitute a general obligation of the Authority and the Authority shall be liable for
the payment thereof only out of said portion of taxes as described in this paragraph. The
Note shall not constitute an obligation of the State of Nebraska or of the City or the
Authority and neither the State or Nebraska, the Authority nor the City shall be liable for
the payment thereof from any fund or source including but not limited to tax monies
belonging to either thereof Neither the members of the Authority's governing body nor
any person executing the Note shall be liable personally on the Note by reason of the
issuance thereof. The Authority’s obligation to the holder of the Note shall terminate, in
all events no later than 15 years from the effective date set forth herein hereof.
7.The Authority hereby pledges 100% of the annual TIF Revenues as security for the Note.
8. Redeveloper shall be bound by all of the terms and conditions of the Original Contract,
notwithstanding the amendment provided by this contract.
9.This Redevelopment Contract shall be governed by the laws of the State of’ Nebraska,
including but not limited to the Act.
10.This Redevelopment Contract shall be binding on the parties hereto and their respective
successors and assigns. This Redevelopment Contract shall run with the Redevelopment
Area. The Redevelopment Contract shall not be amended except by a writing signed by
the party to be bound.
11.The provisions of this Redevelopment Contract which obligate the Redeveloper shall
inure to the benefit of the holder of the Note, the Hall County Assessor, the City and the
Authority, any of whom may, but are not obligated to enforce the terms of this
Redevelopment Contract in a court of law.
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IN WITNESS WHEREOF, Authority and Redeveloper have signed this Redevelopment
Contract as of the date and year first above written.
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COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA
________________________________
Chairman
ATTEST:
_________________________________
Secretary
__________________________________
Todd Enck
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STATE OF NEBRASKA )
) ss.
COUNTY OF HALL)
The foregoing instrument was acknowledged before me this ______ day of ______,
_____, by _______________ and ________________, Chair and Secretary, respectively,
of the Community Redevelopment Authority of the City of Grand Island, Nebraska, on
behalf of the Authority.
__________________________________
Notary Public
Grand Island Regular Meeting - 5/29/2013 Page 145 / 146
STATE OF NEBRASKA )
) ss.
COUNTY OF __________)
The foregoing instrument was acknowledged before me this ______ day of ______,
_____, by ____________________, Todd Enck.
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