01-15-2014 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, January 15, 2014
Regular Meeting Packet
Board Members:
Michelle Fitzke
Tom Gdowski
Barry Sandstrom
Sue Pirnie
Glen Murray
4:00 PM
Grand Island Regular Meeting - 1/15/2014 Page 1 / 45
Call to Order
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for
Future Agenda Items form located at the Information Booth. If the issue can be handled administratively
without Council action, notification will be provided. If the item is scheduled for a meeting or study
session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve
time to speak. Please come forward, state your name and address, and the Agenda topic on which you will
be speaking.
DIRECTOR COMMUNICATION
This is an opportunity for the Director to comment on current events, activities, and issues of interest to
the commission.
Grand Island Regular Meeting - 1/15/2014 Page 2 / 45
Community Redevelopment
Authority (CRA)
Wednesday, January 15, 2014
Regular Meeting
Item A1
Agenda
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/15/2014 Page 3 / 45
AGENDA
Wednesday January 15, 2014
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 December 18, 2013 Meeting.
3.Approval of Financial Reports.
4.Approval of Bills.
5.Review of Committed Projects and CRA Properties.
6.Audit Review.
7.Mayor Request Blight & Substandard Study.
8.Grant Request – Downtown Grand Island.
9.Grant Request – Tower 217.
10.Discussion - Window Façade.
11.Election of Officers.
12.Discussion concerning Purchase/Sale of Real Estate of property.
13.Approve Resolution or Resolutions to Purchase/Sell Real Estate.
14.Directors Report
15.Adjournment
Next Meeting February 12, 2014
The CRA may go into closed session for any agenda item as allowed by state law.
Grand Island Regular Meeting - 1/15/2014 Page 4 / 45
Community Redevelopment
Authority (CRA)
Wednesday, January 15, 2014
Regular Meeting
Item B1
Meeting Minutes
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/15/2014 Page 5 / 45
OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
December 18, 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 December 18, 2013 at City Hall 100 E First Street. Notice of the meeting was
given in the December 11, 2013 Grand Island Independent.
1.CALL TO ORDER. Chairman Sandstrom called the meeting to order at
4:00 p.m. The following members were present: Tom Gdowski, and Sue
Pirnie. Also present were; Director, Chad Nabity; Secretary, Rose Rhoads;
and Finance Director, Jaye Monter and Senior Accountant, William
Clingman.
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 November 13, 2013 meeting was made by Gdowski
and seconded by Pirnie. Upon roll call vote all present voted
aye. Motion carried unanimously.
3.APPROVAL OF FINANCIAL REPORTS. Monter reviewed the financial
reports for the period of October 1, 2013 through November 30, 2013.
Motion was made by Gdowski and seconded by Pirnie to approve the
financial reports. Upon roll call vote all present voted aye. Motion carried
unanimously.
4.APPROVAL OF BILLS. The bills were reviewed by Sandstrom.
Motion made by Gdowski and seconded by Pirnie to approve the bills in the
amount of $59,414.34. Upon roll call vote all present voted aye. Motion
carried unanimously to approve the payment of bills totaling $59,414.34.
5.REVIEW OF COMMITTED PROJECTS & CRA PROPERTY.
Nabity reviewed the Committed Projects.
6.Election of Officers. The election of officers was postponed until next
month in order to have more members present.
Grand Island Regular Meeting - 1/15/2014 Page 6 / 45
7.DIRECTORS REPORT. Nabity noted the Downtown Development would
be submitting a request to the CRA and also Amos Anson with his request
for the Masonic Temple.
8. ADJOURNMENT.
Sandstrom adjourned the meeting at 4:25 p.m.
The next meeting is scheduled for January 15, 2014 at 4:00 p.m.
Respectfully submitted
Chad Nabity
Director
Grand Island Regular Meeting - 1/15/2014 Page 7 / 45
Community Redevelopment
Authority (CRA)
Wednesday, January 15, 2014
Regular Meeting
Item D1
Bills
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/15/2014 Page 8 / 45
15-Jan-14
TO: Community Redevelopment Authority Board Members
FROM: Chad Nabity, Planning Department Director
RE: Bills Submitted for Payment
The following bills have been submitted to the Community
Redevelopment Authority Treasurer for preparation of payment.
City of Grand Island
Administration Fees
Accounting
Officenet Inc.
Postage
Lawnscape 408 E 2nd Snow removal
Jack's Tire Service, Inc tire disposal - 408 E 2nd St
Grand Island Independent Legal Notice
Almquist Maltzahn Galloway & Luth CRA Audit
Mayer, Burns, Koenig & Janulewicz Legal Services
Total:
Grand Island Regular Meeting - 1/15/2014 Page 9 / 45
$ 14.29
$ 42.00
$ 16.01
$ 72.30
TO: Community Redevelopment Authority Board Members
RE: Bills Submitted for Payment
Redevelopment Authority Treasurer for preparation of payment.
Grand Island Regular Meeting - 1/15/2014 Page 10 / 45
Community Redevelopment
Authority (CRA)
Wednesday, January 15, 2014
Regular Meeting
Item E1
Committed Projects
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/15/2014 Page 11 / 45
COMMITTED PROJECTS TOTAL AMOUNT 2014 FISCAL YR 2015 FISCAL YR 2016 FISCAL
YR
ESTIMATED
COMP
Downtown BID
Historic Lighting Projects $ 30,000.00 $ 30,000.00 2014
2222 W 2nd St - Ryan Waind $92,608.00 $ 46,304.00 $ 46,304.00 2014
Housing Study (EDC)$ 10,000.00 $10,000
Fall 2013
2014 Wayside Horns (Custer/
Blaine)
$ 100,000.00 $ 100,000.00 Winter 2016
$ -
Total Committed $ 232,608.00 $ 86,304.00 $ 46,304.00 $ 100,000.00
Façade Budget $ Remaining $ 200,000.00
Other Projects $ 265,000.00
Land - Budget $ Remaining $ 80,000.00
Land Sales ($100,000.00)
subtotal $ 445,000.00
Less committed ($86,304.00)
Balance remaining $ 358,696.00
CRA PROPERTIES Demo Cost Status
Address Purchase Price Purchase Date $7,500 Surplus
408 E 2 nd St $4,869 11/11/2005 $39,764 Surplus
3235 S Locust $450,000 4/2/2010
December 31, 2013
Grand Island Regular Meeting - 1/15/2014 Page 12 / 45
Community Redevelopment
Authority (CRA)
Wednesday, January 15, 2014
Regular Meeting
Item G1
Downtown Grand Island
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/15/2014 Page 13 / 45
Grand Island Regular Meeting - 1/15/2014 Page 14 / 45
Grand Island Regular Meeting - 1/15/2014 Page 15 / 45
Community Redevelopment
Authority (CRA)
Wednesday, January 15, 2014
Regular Meeting
Item G2
Tower 217
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/15/2014 Page 16 / 45
TOWER 217
AND THE RISE
OF DOWNTOWN
A REQUEST FOR GRANT ASSISTANCE
PRESENTED TO THE GRAND ISLAND CRA
ANSON&INVESTMENT DEVELOPMENT
Grand Island Regular Meeting - 1/15/2014 Page 17 / 45
02
TOWE R 217
A REQUEST FOR GRANT ASSISTANCE
PRESENTED TO THE GRAND ISLAND CRA
—
APPLICATION PREPARED BY
EMPIRE DEVELOPMENT
—
ON BEHALF OF
ANSON INVESTMENT
& DEVELOPMENT
Visit aidgrandisland.com
Grand Island Regular Meeting - 1/15/2014 Page 18 / 45
03
TABLE of CONTENTS
Letter to the CRA 04
Grant Assistance Application 04-09
Tower 217 Floorplans 10-13
Downtown Redevelopment Study 14-27
Grand Island Regular Meeting - 1/15/2014 Page 19 / 45
TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
04
Dear members of the CRA, I have put together some updated information regarding the
Tower 217 development project. I’ve copied some quotes and referenced some page numbers
from the Grand Island Downtown Redevelopment Study done by Alley-Poyner Macchietto that
I think you might find interesting regarding my request and have pasted them on the following
pages for you to review. In addition to the information provided I would like to explain why I
believe my company and team of sub contractors can move this project forward within the
budget that has been laid out.
In the past 15+ years many people from many professions have shown interest in purchasing
this unique building to redevelop. It is an impressive building with some very, very unique
characteristics and challenges. The main challenge is the fact that it is a “high rise” building and
therefore falls under a whole different category than almost every other building in this town. As
you know, in Grand Island there are not very many high rises, let alone many over 100’ feet tall. In
the construction business whenever words like “unique”, “challenging” and “high rise” are involved,
dollar signs start to come into the thoughts of builders and subs alike and rightfully so. With
“challenging” projects more money is charged because of the extra time, frustration, learning
curve, etc. My company has had the opportunity to be involved with this building for many years;
from being one of those interested parties, to doing some work for the previous owner, to being
involved with the unsuccessful Nebraskan Hotel and now having the opportunity to be a part of
the current project. Having been involved with the building for so long I have had the ability to
talk with quite a few contractors, sprinkler companies, architects, engineers, elevator companies,
inspectors, fire officials, steel companies, electricians, HVAC companies etc. With the knowledge
that has been gained through those conversations it has become quite evident that some out-of-
the-box thinking would need to be done in order for any redevelopment to occur.
My company is not new to the challenges downtown’s can pose. Some of our completed projects
to date have been; The Tattered Book : $750,000 commercial and residential redevelopment, The
Erives Façade Project: Third St & Locust St, The Chocolate Bar:116 W Third St, Family Eye Care:
Howard Ave in St Paul, and consulting expertise on buildings such as the former Rexall Building
and current Azteca Market. All of these experiences have given me and my team the ability to
think outside of the box and therefore take away the fear (and ultimately the dollar signs) of the
challenges that arise with projects like Tower 217.
I feel these experiences are what have given Empire Development/FAmos Construction
the ability to make this project viable. There are still many challenges to overcome, but
with the continued assistance of the Building Department, Fire Marshall, City Administrator,
the Downtown BID, Regional Planning, the CRA and many others, Tower 217 can and
will move forward.
Thank you for your time.
Amos C Anson President
Empire Development
FAmos Construction Inc.
Grand Island Regular Meeting - 1/15/2014 Page 20 / 45
Project Redeveloper Information
Legal Street Address of Project Site:
Zoning of Project Site:
Current and Contemplated Use of Project:
Present Ownership of Project Site:
Proposed Project: Describe in detail; attach plans and specifications:
Acquisition Costs:
A. Land
B. Building
I.
II.
III.
IV.
V.
VI.
Estimated Project CostsVII.
$
$
Contact:
Telephone No.:
Address:
Applicant Name:
Life/Safety Improvement Program Application
COMMUNITY REDEVELOPMENT AUTHORITY
TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
05
Anson Investment & Development (AID)
217 North Locust / 703 West 17th Street
308.850.2399
Charles Anson
217 North Locust
Commercial & Residential
Commercial
Anson Investment & Development (AID)
See page 08.
Grand Island Regular Meeting - 1/15/2014 Page 21 / 45
Construction Costs:
A. Renovation or Building Costs Atrributableto Façade Improvements (attach detail):
B. Other Construction Costs:
B. Commercial Bank Loan:
A. Developer Equity:
C. Historic Tax Credits:
D. Tax Increment Assistance:
A. Construction Start Date:
B. Construction Completion Date:
E. Other (Describe )
Source of Financing:VIII.
Project Construction Schedule:X.
Financing Request Information
Name & Address of Architect, Engineer and General Contractor:IX.
Describe Amount and Purpose for Which Facade Improvement Program Funds are Requested:I.
$
$
$
$
$
$
$
TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
06
291,581
1,089,386
60,000
1,089,386Private Investor
See page 08.
As soon as possible.
Phase 01: Nine months from start of construction.
See page 09.
Grand Island Regular Meeting - 1/15/2014 Page 22 / 45
Application of Grant Funds:III.
Statement Identifying Financial Gap and Necessity for use of Facade Improvement Program
Funds or proposed Project:
II.
Grant to Redeveloper; or
Interest Rate Buy-Down
Post Office Box 1968
Grand Island, Nebraska 68802-1968
Phone: 308 385-5240
Fax: 308 385-5423
Email: cnabity@grand-island.com
TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
07
291,581
See page 09.
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TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
08
VI. Proposed Project:
Install a second staircase and fire sprinklers from the basement to the fourth floor. A sprinkler
company will be hired to design and install the fire sprinkler system, making provisions for
development at a later date on the remaining floors. The staircase will be designed to fit into
the inside of the structure and will meet all of the City Of Grand Island’s current codes. There
will be 14’ x 9’ openings cut through the floors of one, two, three and four. The structural loads
will be picked up by 8” block and non structural walls will be constructed of steel studs and two
layers of drywall on each side along with 2 hour rated fire doors. The stairs will be constructed of
non combustible building materials. A continuous steel handrail will be fabricated and installed
by a local welding company. The project includes hiring an engineer to check the structural
implications of cutting the 14’ x 9’ openings in the floor as well as an architect to make sure
there is code compliance. Because of the unique issues associated with this project there have
been several conversations with Craig Lewis and Fred Hotz. They have both agreed to allow the
building to be brought into code compliance one phase at a time. As such this project will be
broken into the following three phases.
IX. Name and Address of Engineer and General
Contractor:
General Contractor: Amos Anson, Empire Development, P.O. Box 1665
Structural Engineer: Scott Burney, Olsson Associates, 201 East Second Street
Architect: Marvin Webb, AIA with Webb and Company Architects, 387 North Walnut Street
I. Amount And Purpose For Which
Life Safety Program Funds Are Requested:
The amount being asked for the life safety issues is $291,581. The project has been designed
around a life safety study done on the building by the previous tenant. The CRA paid for said
study and retained the rights. Based on that study, it has been determined that a second
staircase and fire sprinklers are required to bring the building up to code and therefore
facilitate development of mixed use residential and commercial tenant spaces.
Phase 01
The building out of
the first two floors,
commercial occupancy
on the main floor and
residential occupancy
on the second floor.
Phase 02
The build out of floor
three with residential
occupancy.
Phase 03
Floor four which will also
require an elevator. Grant
funds for the elevator will
be sought from an entity
other than the CRA.
Grand Island Regular Meeting - 1/15/2014 Page 24 / 45
TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
09
Item Phase 01 Phase 02 Phase 03 Totals
Insurance&Interest 4,800.00 0.00 0.00 4,800.00
Permits 1,200.00 0.00 0.00 1,200.00
Demo 5,112.00 1,586.00 2,117.00 8,815.00
Carpentry Labor 26,691.00 8,336.00 10,992.00 46,019.00
Materials 28,603.00 8,876.00 11,837.00 49,316.00
Roofing labor 0.00 0.00 0.00 0.00
Plumbing 0.00 0.00 0.00 0.00
HVAC 0.00 0.00 0.00 0.00
Electric 8,000.00 2,000.00 1,249.00 11,249.00
Insulation 0.00 0.00 0.00 0.00
Drywall Hang 0.00 0.00 0.00 0.00
Drywall Finish 0.00 0.00 0.00 0.00
Paint 0.00 0.00 0.00 0.00
Trim Labor 0.00 0.00 0.00 0.00
Cabinets 0.00 0.00 0.00 0.00
Countertops 0.00 0.00 0.00 0.00
Flooring Allowance 0.00 0.00 0.00 0.00
Lighting Allowance 0.00 0.00 0.00 0.00
Electronics 12,000.00 3,000.00 3,000.00 18,000.00
Fire Sprinklers 34,000.00 7,000.00 32,000.00 73,000.00
Masonry 12,426.00 3,924.00 5,250.00 21,600.00
Custom Cabinets 0.00 0.00 0.00 0.00
Appliances 0.00 0.00 0.00 0.00
Architect 15,550.00 2,000.00 2,000.00 19,550.00
Elevator 0.00 0.00 0.00 0.00
Sub Total 148,382.00 36,722.00 68,445.00 253,549.00
O&P 22,058.00 6,845.00 9,129.00 38,032.00
Total 170,440.00 43,567.00 77,574.00 291,581.00
Income
w/Grant 878.77 114.16 992.93
w/o Grant (1,013.46)(369.52)(1,382.98)
II. Statement Identifying Financial Gap and Necessity
for use of Facade Improvement Program Funds
Grand Island Regular Meeting - 1/15/2014 Page 25 / 45
TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
10
Tower 217 Floor Plans – One & Two Bed
For more information visit aidgrandisland.com
Grand Island Regular Meeting - 1/15/2014 Page 26 / 45
TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
11
Tower 217 Floor Plans – Two Bed
For more information visit aidgrandisland.com
Grand Island Regular Meeting - 1/15/2014 Page 27 / 45
TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
12
Tower 217 Floor Plans – Two Bed
For more information visit aidgrandisland.com
Grand Island Regular Meeting - 1/15/2014 Page 28 / 45
TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
13
Tower 217 Floor Plans – Basement
For more information visit aidgrandisland.com
Grand Island Regular Meeting - 1/15/2014 Page 29 / 45
TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
14
The Need for Downtown
“Economically, the redevelopment of downtown makes sense the streets are already
there, the buildings are already there, the utilities are already there. The City of Grand Island
has invested a large amount in the creation of the district components; ensuring their
continued use and relevance is a financial necessity. As noted, the expense of redeveloping
a downtown property will be discouraging to most potential investors and developers,
particularly in this early stage of revitalization. These buildings have sat vacant for long
periods of time and most will need significant improvements for accessibility and life
safety. This is why supplemental funding sources during this phase are critical as more
and more properties are renovated, rented and occupied, the need to fill the “cash gap,”
will lessen. But first a critical mass of development needs to occur to demonstrate to
financial institutions and investment organizations that there is a profitable market in
Downtown Grand Island”
But first a critical mass of development needs
to occur to demonstrate to financial institutions and
investment organizations that there is a profitable
market in Downtown Grand Island”
From the Grand Island Downtown Redevelopment Study
Prepared by Alley Poyner Macchietto Architecture
Found on Page 14
Investing in downtown can:
› Protect and increase the existing property tax base
› Maximize existing building stock, decreasing life safety
concerns and future life safety issues
› Retain and attract entrepreneurs and businesses
› Provide for new businesses without green field development
and the additional infrastructure it requires
› Regenerate surrounding neighborhoods
› Help retain young professionals
› Create a regional attraction
› Improved community pride and self-image
› Preserve the historic assets of the community
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TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
15
Short and Long-Term Goals
Through information gathered at the public visioning session and the key stakeholder
meetings, the following goals were developed:
› Create a vibrant urban environment through economic development,
increased population, and public improvements
› Encourage the development of more downtown residential units. Increase the
entertainment options downtown, for all age groups and at all times of the day
› Attract specialty retail and businesses. Identify realistic opportunities
for investment and develop key catalyst projects to spur further development
› Identify potential partnerships with key community partners. Identify funding
sources for redevelopment projects
› Create policy recommendations that support economic development
and further the vision for downtown
› Create a prioritized list of potential enhancements and redevelopment projects
› Identify tools and assistance opportunities to help potential developers
From the Grand Island Downtown Redevelopment Study
Prepared by Alley Poyner Macchietto Architecture
Found on Pages 25 & 26
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TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
16
Catalyst Projects
There are two general types of projects that can spur revitalization in downtown areas:
the physical and the strategic. Physical projects are actual construction-related improvements
which are either specific to individual buildings or to the public realm, whereas strategic
projects include developing key partnerships with community groups and creating specific
tools which aid in fostering development as well as influence the types of development
that are to occur.
Input from the community, via public meetings and conversations with key stake holders,
created the matrix of projects below.
From the Grand Island Downtown Redevelopment Study
Prepared by Alley Poyner Macchietto Architecture
Found on Page 55
Physical
Building Specific
› Destination Hotel
› Multi-Family
Residential
Conversion
Public Realm
› Re-Thinking Kauffman Park
› Streetscaping, Wayfinding
and Identification Signage
› Public Parking
Strategic
Partnerships
› Commercial Incubator
› Regional Tourism
› Education - Central
Community College
Tools
› Branding
› Developer’s “How-to”
› Additional Funding
› Codes and Ordinances
› Building Inventory
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TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
17
More Residents, More Vitality
Increasing the number and quality of residential units in Downtown Grand Island is
one of the keys to revitalizing the district. There are multiple components to a successful
downtown, three of which are shown in the diagram below: a healthy residential population,
thriving downtown businesses, and the patronage of the local and regional communities.
Currently there are over 100 residential units in Downtown Grand Island, a number of which
are condominiums in the The Yancey. The existing building stock of the downtown district
lends itself to a variety of housing developments, ranging from large-scale, mixed-use
projects, to smaller more strategic developments of a limited number of units over
existing commercial uses, such as those being planned above The Chocolate Bar.
From the Grand Island Downtown Redevelopment Study
Prepared by Alley Poyner Macchietto Architecture
Found on Pages 63–67
Outside
Populations
Downtown
Businesses
who might move
bring in
increase
increase
Downtown
Population
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TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
18
Case Study: The Labor Temple Building
The Labor Temple Building, located at 210 N. Walnut Street, is an example of a small-
scale building that lends itself to a purely residential redevelopment. The revitalization
of a downtown area often relies on the sweat equity and devotion of those with a vision
for the district; larger developers tend to follow after some renovation and development
has occurred. Smaller-scale projects like the Labor Temple, with unique characteristics
(in this case, the building being potentially available for a very small sum) can often be
redeveloped by smaller investors and provide stepping stones toward the development
of larger, more complicated projects.
As noted, the Labor Temple building has a number of specific components that make it
a prime candidate for redevelopment. First, there is its price, as the current owners have
indicated they are potentially willing to gift the building to an interested party, assuming
they are willing to redevelop. Second, the building lends itself to a single-use, multi-
family residential occupancy. This removes some of the complications that mixed-use can
cause for the renovation of the building, simplifies the financial planning of the potential
redeveloper, and removes the difficulties and uncertainties that can accompany managing
commercial space. On the following pages, the study team has developed a financial
summary and operating pro forma for the Labor Temple building, if redeveloped into
residential units. All financing numbers, including public grants, have been assumed
for the purpose of this case study and are for illustration purposes only.
From the Grand Island Downtown Redevelopment Study
Prepared by Alley Poyner Macchietto Architecture
Found on Pages 63–67
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TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
19
Annual Rental Income 2nd Yr. Rents
8 - 1 Beds $714/M 68,544
1 - 2 Bed $867/M 10,404
Gross Income 78,948
Vacancy 5,526
Expenses 24,096
NET Operating Income 49,326
Bank Loan Debt Service 30,544
Terms: 20 YRS 68,544
IR: 4.25%10,404
Cash Flow 18,782
Prepared by Field Day Development
Labor Temple Residential Case Study:
Operating Pro Forma
Use of Funds Totals
Purchase of Building –
Construction 871,200
Contingency 87,120
Financing/Soft Costs 135,196
1,093,516
Source of Funds
Bank 411,044
Tax Increment Financing Loan 110,000
Federal Historic Tax Credits 184,859
CDBG Facade Improvement Funds 25,000
CRA Grant 200,000
GAP 162,613
1,093,516
Prepared by Field Day Development
Labor Temple Residential Case Study:
Financial Summary
From the Grand Island Downtown Redevelopment Study
Prepared by Alley Poyner Macchietto Architecture
Found on Pages 63–67
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TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
20
Developer’s How-To
Every real estate project is different--new construction versus old building restoration,
tax credits or no tax credits, professional developer or weekend warrior. All these factors
will determine how a project gets developed. The following is a brief overview of the
development process, with tips on what can be expected, who needs to be involved, and
what information is needed to get started. The most important element of a good project
is a qualified team. The team will assist with the due diligence list and provide much
needed support and expertise throughout the project. The following guide can be applied
to any project, however some steps may come before others, happen at the same time or
might not happen at all.
Concept – The first step is ideation and a concept. Is it going to be housing, commercial or
both? In other words, take an idea and cultivate it into a preliminary project scope.
Feasibility - Do the numbers work? Is there a demand for that use? Is it zoned correctly?
There are several questions in this phase that should be answered to see if acquiring a
building or moving forward on a project is worthwhile. This is the time to begin your due
diligence. The following are activities that should occur:
› Develop preliminary development budget, sources of funds and operating pro forma
› Research different funding options
› Check zoning
› Research building ownership and if it is for sale
› Building Analysis (structural issues, etc)
› Identify legal issues
› Develop preliminary layout and floorplans
› Market Analysis
› Identify public participation opportunities
From the Grand Island Downtown Redevelopment Study
Prepared by Alley Poyner Macchietto Architecture
Found on Pages 86–90
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TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
21
Developer’s How-To – Continued
Site Control & Due Diligence – If the feasibility of the project is favorable, then buying the
property or obtaining an option is the next step. During this step, due diligence continues.
Below is a list of activities that are important for acquisition.
Appraisal – Typically ordered by the bank that you are working with for financing.
Acquisition financing is usually financed at 75-80% of appraised value or agreed upon
purchase price whichever is lessor. The percentage of financing is determined by
the purchaser’s financial strength.
Environmental Phase 1 – A Phase 1 is the first step in the environmental due diligence
process. At a minimum a Phase 1 should be completed prior to closing on a property.
A Phase 1 looks at the history and prior uses of the building. If recommended,
a Phase 2 may be required.
Financing – Work with a bank(s) to obtain initial financing for acquisition and start
the conversation about financing for the construction of the project.
Pro forma – Continue refining the operating pro forma, development budget
and sources of funds.
Ownership Entity – Choose ownership form. Establish a separate entity to acquire
and hold the real estate to reduce personal liability.
City Officials – Meet with City officials early and often to ensure your general
plan is acceptable with the various departments. Potentials problems can be rectified
early in the project.
Create a Development Team – This step will start at the beginning of the project, but here
is a list of team members that should be included. Depending on the project size and type
and financing used, not all of the professions below will be utilized:
› Architectural & Engineering
› Contractor(s)
› Legal
› Accounting
› Environmental
› Marketing
From the Grand Island Downtown Redevelopment Study
Prepared by Alley Poyner Macchietto Architecture
Found on Pages 86–90
› Bank
› Appraiser
› Developer
› Tax Credit Investor
› Property Management Company
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TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
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Developer’s How-To – Continued
Financing – While architectural plans and specifications are being developed, financing
should be top priority. This step includes:
› Finalize development budget (work with the architects & contractor
on construction costs)
› Finalize sources of funds
› Finalize operating pro forma
› Obtain letter of commitment for bank financing on construction and permanent loan
› Tax credits: Obtain approval and letter of commitment from investor
› Finalize owner equity requirements
Marketing & Property Management – Create a marketing plan and find a property
management company to manage the project once construction is complete.
› Create a “Brand” for the project so that it stands out from the competition
› Based on your Brand, create marketing materials, website, Facebook page, etc.
› Hire a property management company that is qualified to manage
your specific type of project.
› Work with the property management company to pre-lease the building
while it’s under construction.
From the Grand Island Downtown Redevelopment Study
Prepared by Alley Poyner Macchietto Architecture
Found on Pages 86–90
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Developer’s How-To – Continued
Construction Phase – Once plans and specs are complete and financing is finalized,
the project should be put out to bid and a General Contractor hired. The following are
steps that should be taken during construction and some tips for easier flow:
› Schedule a pre-construction meeting to discuss responsibilities of key players,
changer orders, etc.
› Discuss schedule of work and inspection schedule
› Discuss payment and draw schedule
› Set a standing meeting, weekly until construction is complete
Operation - Once construction is complete, the project starts its operations phase.
Once the project achieves substantial completion, a punch-list should be created so
that all construction related issues are taken care of.
› Throughout the project, branding, marketing, and pre-leasing should occur.
You want your project to stand out from the others, so devoting money to this
is vital to set your project apart.
› Now is the time to finalize leases, move tenants in and start operating the building.
› Convert the construction loan to permanent loan. Banks typically provide
a grace period from the time of substantial completion/Certificate of Occupancy
to when the project is partially leased.
From the Grand Island Downtown Redevelopment Study
Prepared by Alley Poyner Macchietto Architecture
Found on Pages 86–90
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Funding the Cash Gap
The first step of revitalization is the same no matter whether the project is in the public
realm or the private sector—investment. However, as noted in the “Need for Downtown”
section of this study, early developers in the revitalization process may have trouble filling
the “cash gap” between the costs of renovation and the funding available from traditional
financial institutions. As there are not many housing units available in the downtown
district—nor much variety—and the commercial market is lagging, finding comparables
and providing a convincing pro forma to a bank may be difficult. This is why supplemental
funding sources are critical to jumpstarting the redevelopment process.
Many may think supplemental funding creates a false market—one that is unable to sustain
itself on its own. However, the opposite is true. The purpose of early supplemental funds
is to aid in creating a market that is self-sustaining and a benefit to the entire community.
As noted earlier in this report, there is a large amount of vested financial potential in
downtown; the city has already devoted significant resources into the infrastructure and
upkeep of the district. Creating a thriving market that can increase property values and
sales tax revenue while spending less on infrastructure costs is an intelligent way
to maintain and grow that investment.
As the market grows, supplemental funding will become less and less necessary.
There are a number of supplemental funding sources currently available at local, state
and federal levels—for which additional information can be found in this report’s
appendix—however there is still an additional need for expanded funding sources.
One concept presented during the public and strategic meetings held for this study is
to expand the façade program currently administered by the Community Redevelopment
Authority, however other avenues can be considered. Currently, the façade program
focuses on improvements to the exterior of the building, and while this can be a benefit
to overall redevelopment efforts when used as a portion of projects that are redeveloping
a building in its entirety, it does not specifically emphasize economic development.
From the Grand Island Downtown Redevelopment Study
Prepared by Alley Poyner Macchietto Architecture
Found on Pages 91–92
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Funding the Cash Gap – Continued
As a case study for comparison, the writers of this study have reviewed the Downtown
Revitalization Fund administered by the city of Council Bluffs, Iowa. This program, which
also includes a focus on the aesthetic improvements of the building projects it funds,
has an overall goal of increasing the downtown’s role as a “retail and service center in the
community” while “increasing the market value and demand for commercial properties.”
It does this by preferring projects that are performing a comprehensive renovation of
the entire building, including the façade, and are providing housing in any upper-levels.
The maximum amount provided is the lesser of either 50% of the total construction
costs or a maximum amount established by project size—determined by the number
of storefront bays and building stories.
This initial funding also allows projects to acquire additional funds from other sources—
projects funded through the Council Bluffs program typically leveraged every dollar from
the Downtown Revitalization Fund to raise an additional five dollars from other investors,
partners or organizations. Most importantly, projects renovated through the fund saw
an average increase in assessed property values of 351%.
From the Grand Island Downtown Redevelopment Study
Prepared by Alley Poyner Macchietto Architecture
Found on Pages 91–92
Grand Island Regular Meeting - 1/15/2014 Page 41 / 45
TOW E R 2 1 7 REQUEST FOR GRANT ASSISTANCE
26
From the Grand Island Downtown Redevelopment Study
Prepared by Alley Poyner Macchietto Architecture
Found on Pages 111–113
Prioritized Enhancements
Recognizing that, due to financial and time constraints, not all of the components of
the plan will be completed at one time, a phased approach, including a combination of
strategic and physical projects, is recommended. For Grand Island, as downtown is in the
early stages of revitalization, the study team is emphasizing strategic groundwork (building
inventory, funding sources, partnerships) that can help spur larger private development
along with public realm improvements that can help to improve public perceptions.
Recommended Actions
The following recommendations have been provided as guidelines to implement the highest
priority, most effective improvements for Downtown Grand Island. This study is intended as
a holistic verview for the redevelopment of the downtown district; for a list of project types
that are specifically eligible for Phase II CDBG funds, please refer to the appendix.
Produce and maintain a building inventory and actively recruit businesses
to downtown. Designate a key individual within a downtown organization--whether
the Downtown Business Improvement District, the Chamber of Commerce, or another-
-to be the primary contact and representative for businesses, property owners, and
community members. This individual will need to stay informed of properties as they
become available and the renovations that will be required prior to leasing, and be
immersed in the business community to help attract tenants to downtown.
Support the renovation and redevelopment of existing buildings into housing
and commercial uses through supplemental funding sources. The “cash gap”
mentioned previously in this study is a hurdle for small developers and investors in
Downtown Grand Island. Providing mechanisms for overcoming this inhibitor while
fostering the type of development envisioned by the city and the community will
be key to the success of the downtown.
Implement a downtown zoning overlay district and associated design guidelines.
The application of design guidelines will help to insure any future investments within
the district and enhance the downtown’s aesthetics by promoting consistent
redevelopment guidelines.
Invest in public improvements which enhance the users’ spatial, visual and physical
experiences within the downtown district. Creating an attractive, well-defined district
with a strong physical identity will be key to increasing the appeal of Downtown Grand
Island and improving users’ perceptions of the area.
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From the Grand Island Downtown Redevelopment Study
Prepared by Alley Poyner Macchietto Architecture
Found on Pages 111–113
Recommended Actions – Continued
Create a strong brand and market Downtown Grand Island as a destination.
Downtown can benefit from Grand Island’s status as a regional city, becoming a
destination for niche retail, specialty restaurants and entertainment. A consistent
brand and marketing strategy will help to establish an identity for the district.
Promote and program downtown as a venue for city-wide events. Downtown should
be the cultural heart of the city, and as such the go-to location for events. Alterations
that can help maximize downtown’s public areas and turn them into flex-spaces that
double as event venues will be key improvements throughout the district.
Support the development of a speculative building. Attracting commercial
tenants can be difficult if there are no move-in ready commercial bays. Often a mixed-
use project with upper-level housing and retail on the main floor can cash flow from the
housing alone--at least for a period long enough to secure a tenant for the commercial
spaces. This creates an inventory of ready-to-occupy ground-floor real estate that
can be marketed to potential tenants.
Establish partnerships with key community organizations. Buyin from
critical organizations, such as those outlined in this study, will be essential
to the development of downtown.
It is important to emphasize that the realization of Downtown Grand Island’s goals will lie in a
combination of these recommendations. A successful revitalization needs to be approached
from all angles--an increased residential population via building renovation, public realm
improvements through streetscaping, additional retail tenants through advocacy, etc. Every
downtown in every city will have a different formula that works for their specific situation. The
only factor that remains constant is the need for an “all-in” attitude from all of those involved:
community members, downtown organizations, property owners, the city. The redevelopment
of Downtown Grand Island is a large endeavor that will take time and require a large amount of
effort by everyone involved--but the end result will be a vibrant, exciting district that will have
the potential to redefine not just the district itself, but Grand Island as a whole.
Grand Island Regular Meeting - 1/15/2014 Page 43 / 45
Community Redevelopment
Authority (CRA)
Wednesday, January 15, 2014
Regular Meeting
Item X1
Mayor Request
Staff Contact: Chad Nabity
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