02-12-2014 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, February 12, 2014
Regular Meeting Packet
Board Members:
Michelle Fitzke
Tom Gdowski
Barry Sandstrom
Sue Pirnie
Glen Murray
4:00 PM
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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, February 12, 2014
Regular Meeting
Item A1
Agenda
Staff Contact: Chad Nabity
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AGENDA
Wednesday February 12, 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 January 15, 2014 Meeting.
3.Approval of Financial Reports.
4.Approval of Bills.
5.Review of Committed Projects and CRA Properties.
6.Consideration of a Resolution to forward a Redevelopment Plan Amendment
to the Hall County Regional Planning Commission for Habitat for Humanity, for
property located along 8th & Superior Street.
7.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 Habitat for Humanity, for property located along 8th & Superior
Street.
8.Consideration of a Resolution to forward a Redevelopment Plan Amendment
to the Hall County Regional Planning Commission for Legacy Hospitality LLC
for 3051 S Locust Street.
9.Consideration of a Resolution of intent to enter into a Site Specific
Redevelopment Contract & Approval of related actions 30 day notice to City
Council for Legacy Hospitality LLC for 3051 S Locust Street.
10.Discussion on window façade.
11.Discussion on Committed Project funds.
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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 March 12, 2014
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, February 12, 2014
Regular Meeting
Item B1
Meeting Minutes
Staff Contact: Chad Nabity
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OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
January 15, 2014
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 January 15, 2014 at City Hall 100 E First Street. Notice of the meeting was
given in the January 8, 2014 Grand Island Independent.
1.CALL TO ORDER. Chairman Sandstrom called the meeting to order at
4:00 p.m. The following members were present: Glen Murray, Tom
Gdowski, and Sue Pirnie. Also present were; Director, Chad Nabity;
Secretary, Rose Rhoads; Legal Counsel, Duane Burns; Finance Director,
Jaye Monter and Senior Accountant, William Clingman, Council Liaison,
Vaughn Minton; Mayor, Jay Vavricek, Terry Galloway, Amos Anson,
Charles Anson, Brent Linder, Tonya Carey, Tami Brunk and Kurt Packer.
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 December 18, 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 December 1, 2013 through December 31, 2013.
Motion was made by Murray 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 $2013.39. Upon roll call vote all present voted aye. Motion
carried unanimously to approve the payment of bills totaling $2013.39.
5.REVIEW OF COMMITTED PROJECTS & CRA PROPERTY.
Nabity reviewed the Committed Projects.
6. AUDIT REVIEW.
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Terry Galloway presented the CRA Audit. A motion was made by Gdowski
to approve the audit as presented and submitted and seconded Murray.
Upon roll call vote all present voted aye. Motion carried unanimously.
7. MAYOR REQUEST BLIGHT & SUBSTANDARD STUDY. Grand Island
Mayor Jay Vavricek requested the study as a way to potentially assist
redevelopment at the home. The mayor told CRA members the blighted
and substandard designation could help “bolster the alternative vets’ home
proposal” that local veterans have submitted to officials in Washington. A
motion was made by Gdowski and seconded by Pirnie to authorize a
request for proposals to be drafted to hire a consultant to conduct a
blighted and substandard study on the Grand Island Veterans Home land.
Upon roll call vote all present voted aye. Motion carried unanimously.
8. GRANT REQUEST. Downtown Grand Island board members, Amos Anson
and Tami Brunk asked the CRA for a grant of $50,000. A motion was
made by Murray and seconded by Pirnie to approve the grant contingent
on final design plans being submitted to the CRA. Upon roll call vote
Murray, Pirnie and Sandstrom voted aye. Gdowski abstained. Motion
carried.
9. GRANT REQUEST. Amos Anson requested a grant for Tower 217
(formally known as the Masonic Temple) in the amount of $291,581. This
will paid out over three fiscal years. A motion was made by Murray to
approve the Tower 217 grant request in the amount of $291,581 subject to
approval by the Grand Island Building and Fire Department. The motion
was seconded by Gdowski. Upon roll call vote all present voted aye.
Motion carried unanimously.
10. DISCUSSION. Window Façade. This was postponed until the February
meeting.
11. ELECTION OF OFFICERS. Gdowski made the motion to retain the current
slate of officers. Sandstrom as chair and Murray as vice-chair. Pirnie
seconded the motion. Upon roll call vote all present voted aye. Motion
carried unanimously.
12.DISCUSSION CONCERNING PURCHASE/SALE OF REAL ESTATE.
None
13.APPROVE RESOLUTION OR RESOLUTIONS TO PURCHASE/SELL REAL
ESTATE. None
14.DIRECTOR’S REPORT. Nabity reported there will be two
upcoming TIF projects.
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15.ADJOURNMENT. Sandstrom adjourned the meeting at 5:30 p.m.
The next meeting is scheduled for February 12, 2014 at 4:00 p.m.
Respectfully submitted
Chad Nabity
Director
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Community Redevelopment
Authority (CRA)
Wednesday, February 12, 2014
Regular Meeting
Item C1
January Financials
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, February 12, 2014
Regular Meeting
Item D1
Bills
Staff Contact: Chad Nabity
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12-Feb-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 December & January $ 7,509.19
Accounting Jan., Feb., March $ 450.00
Officenet Inc.
Postage $ 17.50
Lawnscape
Almquist Maltazahn Galloway & Luth $ 4,175.00
Grand Island Independent monthly notices $ 16.01
Mayer, Burns, Koenig & Janulewicz Legal Services $ 210.00
Total:
$ 12,377.70
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Community Redevelopment
Authority (CRA)
Wednesday, February 12, 2014
Regular Meeting
Item E1
Committed Projects
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, February 12, 2014
Regular Meeting
Item H1
Habitat TIF
Staff Contact: Chad Nabity
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BACKGROUND INFORMATION RELATIVE TO
TAX INCREMENT FINANCING REQUEST
Project Redeveloper Information
Business Name: Grand Island Area Habitat for Humanity_________________________
Address: 502 W. 2nd St., P.O. Box 1001, Grand Island, NE 68802
Telephone No.: 308-385-5510
Fax No.: _308-385-5511____________________
Contact: Dana Jelinek
Brief Description of Applicant’s Business:
Grand Island Area Habitat for Humanity (GIAHFH) is a non-profit housing
organization working to help low-income households into safe, decent affordable
homes they will own. Through community assistance, homes are built in
partnership with qualifying households, then sold at the cost to build and with no
interest loans.
Present Ownership Proposed Project Site: Miscellaneous tracts 10-11-9 pt NE ¼ SW ¼
South of east 8th and west of Taft 1.73AC.
Proposed Project: Building square footage, size of property, description of
buildings – materials, etc. Please attach site plan, if available.
Attached is a proposed site plan which will accommodate six Habitat homes.
Typical Habitat homes are energy efficient, 1070 sq. ft., three bedroom homes on
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a crawlspace. More bedrooms are added when necessary. Homes have hardi-plank
siding, covered entries, architectural shingles, and a sodded yard.
If Property is to be Subdivided, Show Division Planned:
VI. Estimated Project Costs:
Acquisition Costs:
A. Land $ 68,940
B. Building $ 0
Construction Costs:
A. Renovation or Building Costs: $
B. On-Site Improvements: $ 34,365
re-platting, demo, asbestos removal, tree removal, etc.
Soft Costs:
A. Architectural & Engineering Fees: $ 4,300
B. Financing Fees: $
Closing costs, filing fees
C. Legal/Developer/Audit Fees: $ 10,000
D. Contingency Reserves: $ 5,380
E. Other (Please Specify) $
TIF fees
TOTAL $ 122,985
Total Estimated Market Value at Completion: $ 480,000
Source of Financing:
A. Developer Equity: from GIAHFH reserves $ 122,985
B. Commercial Bank Loan: $ 0
Tax Credits:
1. N.I.F.A. $ 0
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2. Historic Tax Credits $ 0
D. Industrial Revenue Bonds: $ 0
E. Tax Increment Assistance: $ 122,985
F. Other $ 0
Name, Address, Phone & Fax Numbers of Architect, Engineer and General Contractor:
Dana Jelinek, Executive Director
Grand Island Area Habitat for Humanity
502 W. 2nd St., PO Box 1001
Grand Island, NE 68802
Phone: 308-385-5510/Fax: 308-385-5511
Estimated Real Estate Taxes on Project Site Upon Completion of Project:
(Please Show Calculations)
The estimated value on the homes upon completion will be $480,000. $480,000-
$35,000 base = $445,000 x 2.201353 = $9,796 per year after building has been
completed.
Project Construction Schedule:
Construction Start Date: Spring 2015 (weather dependent)
Construction Completion Date: Summer 2016 (weather dependent)
If Phased Project:
2015 Year 50% Complete
2016___________________ Year 100% Complete
XII. Please Attach Construction Pro Forma
XIII. Please Attach Annual Income & Expense Pro Forma
(With Appropriate Schedules)
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TAX INCREMENT FINANCING REQUEST INFORMATION
Describe Amount and Purpose for Which Tax Increment Financing is Requested:
Amount of Incremental Prospective Annual real Estate Taxes over 2014 Real
Estate Taxes on the subject property for 14 years beginning in 2015 will be used
to redevelop the property.
Statement Identifying Financial Gap and Necessity for use of Tax Increment Financing
for Proposed Project: Grants for lot acquisition through Habitat for Humanity and
HUD are no longer structured for Habitat affiliates of our size. With grants for
land acquisition gone and difficulty in finding affordable land on which to build,
GIAHFH is seeking other partnerships. Land costs, plus development on the
proposed properties is far beyond what we can afford on our own. TIF funding for
the purchase of the property allows us to acquire not just land on which to build,
but also allows us to develop the land so it is suitable for building. The purchase
of this property is contingent upon TIF approval. The added value of six proposed
new homes benefits the community and the neighborhood, not to mention the
low-income families who will partner on the projects. With fewer private entities
building small houses (limited/no profit margin), Habitat fills that gap.
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:
Since 1992, GIAHFH has completed 74 homes, 64 of which have been in Grand
Island. Another Grand Island home is currently under construction. Over $80,000
in property taxes are paid each year on GIAHFH homes. Most of those homes
stand on once vacant lots, while a few replaced deteriorated structures.
In over 20 years, GIAHFH has partnered with various volunteer groups, sub-
contractors and suppliers, plus donors, to make safe, affordable housing a reality
for qualifying low-income households. Families selected must meet income
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requirements (30-60% of median income), have the ability to pay a no-interest
home loan based on the cost to build, and contribute 500 hours of sweat equity
(including 20 hours of home-ownership education). A thorough selection process
looks at applications, tax returns, pay stubs, debt to income ratios, credit reports,
and background reports, plus families participate in meetings, interviews and
home visits. In the last five years, both the CRA and City of Grand Island (NSP)
provided funds for demolition of deteriorated properties or land where those
properties once stood. Both partnerships made way for Habitat home construction.
The CRA also provided water lines to an area where we completed four homes.
IV. Please Attach Applicant’s Corporate/Business Annual Financial Statements for
the Last Three Years.
Audited financial statements are available upon request.
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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The chart below shows estimated project costs as submitted to Habitat by the property
owner. Estimates were obtained from reputable businesses.
COST ESTIMATE 11/25/2013
Superior and 8th Street Lots
LAND
Land Cost $ 68,000.00
Plat Fees $ 940.00
INFRASTRUCTURE
Sanitary Sewer $ 18,600.00
Grading $ 12,000.00
Seeding $ 2,000.00
Silt Fence $ 500.00
Tree Removal $ 1,000.00
TV Fees $ 265.00
Construction Services $ 3,000.00
Setting Lot Pins $ 500.00
Staking $ 800.00
Subtotal $ 107,605.00
Contingency $ 5,380.25
Total $ 112,985.25
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The budget below represents construction costs for a standard three bedroom home built
in 2013. The number of bedrooms is based on the number of people in the household.
Since families for the homes have not yet been selected, there is the chance that one or
more of the homes may need to be larger. Costs to build would increase over time, as
would construction costs and property values on a larger home.
Construction Budget
Three-Bedroom Habitat for Humanity Home Cost
Permits/Curb Cut/Site Prep 950
Pre-construction Total 950
Contract Labor
Drywall Finishing 1200
Gutters 700
Floor Covering 2300
Heating/Venting 4200
Plumbing 6000
Termite Control 325
Construction Supervisor/Manager Stipends 3100
Electrical 1250
Landscaping 2400
Contract Labor (other) 375
Contract Labor Total 21850
Materials/Supplies
Lumber & Building Materials 18000
Insulation 1200
Electrical Supplies/Lights 4000
Masonry/Concrete 4200
Paint 400
Doors, Trim & Cabinets 5850
Windows 1500
Appliances 1500
Materials/Supply Total 36650
Indirect Construction Costs
Administration 4000
Public Works 200
Sanitation/Garbage 500
Utilities during construction 150
Indirect Costs Total 4850
Total Costs 64300
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Typical plan
used for a
corner lot.
Typical plan
used for
interior lots.
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Above: Typical three bedroom
home on a corner lot.
Right: Typical three bedroom
home on an interior lot. Note –
NSP funds were used to tear
down the garage in the
background to make way for
the home next door.
Bottom: A four bedroom home
on a corner lot where CRA
provided water lines.
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Redevelopment Plan Amendment
Grand Island CRA Area #1
February 2014
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area #1 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 #1.
Executive Summary:
Project Description
THE DEVELOPMENT OF SIX RESIDENTIAL LOTS NORTH OF 8TH STREET AND
EAST OF SUPERIOR STREET IN GRAND ISLAND, NEBRASKA INCLUDING
ACQUISITION, SITE WORK, UTILITY IMPROVEMENTS, ENGINEERING,
LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY FOR BUILDING
SIX HOUSES AT THIS LOCATION.
The use of Tax Increment Financing to aid in acquisition of the property and extension of
utilities associated with redevelopment of this site with six new single family homes.
The use of Tax Increment Finance makes it affordable to provide additional housing in
Grand Island at this location for families that qualify to purchase a Habitat Home. This
project would not be possible in an affordable manner without the use of TIF.
Habitat for Humanity has a contract to purchase the property at this location. This vacant
property can be developed with necessary urban infrastructure including water, storm
sewer and waste water connections for the new lots. All site work, demolition and
utilities will be paid for by the Habitat for Humanity. The developer is responsible for
and has provided evidence that they can secure adequate debt financing to cover the costs
associated with the acquisition, site work and remodeling. The Grand Island Community
Redevelopment Authority (CRA) intends to pledge the ad valorem taxes generated over
the 15 year period beginning January 1, 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:
Property Description (the “Redevelopment Project Area”)
This property is located at north of 8th street and east of Superior Street in northeast
Grand Island. The attached map identifies the subject property and the surrounding land
uses:
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Legal Descriptions: A TRACT OF LAND IN PART OF THE NORTHEAST
QUARTER OF THE SOUTHWEST QUARTER (NE1/4, SW1/4) AND PART OF THE
NORTHWEST QUARTER OF THE SOUTHEAST QUARTER (NW 1/4, SE 1/4) OF
SECTION TEN (10), TOWNSHIP ELEVEN (11) NORTH, RANGE NINE (9) WEST
OF THE 6TH P.M., CITY OF GRAND ISLAND, HALL COUNTY, NEBRASKA AND
MORE PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHEAST CORNER OF THE NORTHEAST
QUARTER OF THE SOUTHWEST QUARTER AND THE POINT OF BEGINNING;
THENCE ON AN ASSUMED BEARING OF S00°35'03"E, ALONG THE EAST LINE
OF THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER A DISTANCE
OF 19.87 FEET TO THE PONT OF INTERSECTION OF THE EAST LINE OF SAID
NORTHEAST QUARTER OF THE SOUTHWEST QUARTER AND THE RIGHT OF
WAY LINE OF TAFT STREET (IF EXTENDED); THENCE S28°33'58"E, ALONG
THE EASTERLY RIGHT OF WAY LINE OF TAFT STREET (IF EXTENDED) A
DISTANCE OF 106.11 FEET TO A POINT ON THE NORTHERLY RIGHT OF WAY
LINE OF 8TH STREET; THENCE S60°44'09"W, ALONG THE NORTHERLY RIGHT
OF WAY LINE OF 8TH STREET, A DISTANCE OF 56.75 FEET; THENCE
S60°41'13"W, CONTINUING ON THE NORTHERLY RIGHT OF WAY LINE OF
8TH STREET, A DISTANCE OF 287.73 FEET TO THE POINT OF INTERSECTION
ON THE EASTERLY RIGHT OF WAY LINE 0F SUPERIOR STREET; THENCE
N30°05'03"W, ON THE EASTERLY RIGHT OF WAY LINE OF SUPERIOR STREET,
A DISTANCE OF 322.82 FEET TO A POINT ON THE NORTH LINE OF SAID
NORTHEAST QUARTER OF THE SOUTHWEST QUARTER; THENCE
N89°42'44"E, ALONG THE NORTH LINE OF THE NORTHEAST QUARTER OF
THE SOUTHWEST QUARTER, A DISTANCE OF 100.54 FEET; THENCE
N89°39'42"E, CONTINUING ON THE NORTH LINE OF THE NORTHEAST
QUARTER OF THE SOUTHWEST QUARTER, A DISTANCE OF 310.74 FEET TO
THE POINT OF BEGINNING. SAID TRACT CONTAINS A CALCULATED AREA
OF 78,393 SQUARE FEET OR 1.80 ACRES MORE OR LESS.
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Existing Land Use and Subject Property
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The tax increment will be captured for the tax years the payments for which become
delinquent in years 2016 through 2030 inclusive.
The real property ad valorem taxes on the current valuation will continue to be paid
to the normal taxing entities. The increase will come from development of a six
single family housing units at this location.
Statutory Pledge of Taxes.
Pursuant to Section 18-2147 of the Act, any ad valorem tax levied upon real property in
the Redevelopment Project Area shall be divided, for the period not to exceed 15 years
after the effective date of the provision, which effective date shall be January 1, 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 December 19, 2000.[§18-2109] Such
declaration was made after a public hearing with full compliance with the public
notice requirements of §18-2115 of the Act.
2. Conformation to the General Plan for the Municipality as a whole. [§18-2103 (13)
(a) and §18-2110]
Grand Island adopted a Comprehensive Plan on July 13, 2004. This redevelopment plan
amendment and project are consistent with the Comprehensive Plan, in that no changes in
the Comprehensive Plan elements are intended. This plan merely provides funding for
the developer to acquire the necessary property and provide the necessary site work for
the construction of a permitted use on this property.
3. The Redevelopment Plan must be sufficiently complete to address the following
items: [§18-2103(13) (b)]
a. Land Acquisition:
The Redevelopment Plan for Area #1 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority.
b. Demolition and Removal of Structures:
The project to be implemented with this plan does not provide for the demolition and
removal any structures on this property.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. All of the area
around the site in private ownership is planned for low to medium density residential
development; this includes housing of densities up to 14 units per acre. This property is
in private ownership. [§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 - 2/12/2014 Page 36 / 63
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 zone. No zoning changes are anticipated
with this project. No changes are anticipated in street layouts or grades. No changes are
anticipated in building codes or ordinances. Nor are any other planning changes
contemplated. [§18-2103(b) and §18-2111]
e. Site Coverage and Intensity of Use
The developer is proposing excavate fill from the northern portion of the property and
move it to the southern portion of the property along 8th Street. The resulting hole will be
configured to provide storm water containment enlarging the city owned detention cell to
the north and east of the subject property. The fill on the south portion of the property
will allow the developer to extend a sanitary sewer line from the west to serve all six new
lots. The R2 zoning district allows 1 dwelling unit per 6000 square feet of property the
size of each lot is approximately 6360 square feet; enough to legally accommodate a
single family housing unit on each lot. The property is zoned R2 and could accommodate
a building of up to 35% of the property area; allowable coverage would be about 2,226
square feet. The proposed units including detached sheds will cover less than 1,200
square feet, well within the allowable coverage. [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. New water services may be
required for this building on these lots. A sanitary sewer line must be extended from the
west to accommodate this development.
Electric utilities will need to be extended to serve these lots. That will be done consistent
with the Grand Island Utilities Department policy on extension of services to residential
subdivisions.
No other utilities would be impacted by the development.
The developer will be responsible for replacing any sidewalks damaged during
construction of the project.
No other utilities would be impacted by the development. [§18-2103(b) and §18-2111]
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4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation. This property, owned by the
developer is currently vacant, no relocation is contemplated or necessary. [§18-
2103.02]
5. No member of the Authority, nor any employee thereof holds any interest in any
property in this Redevelopment Project Area. [§18-2106]
6. Section 18-2114 of the Act requires that the Authority consider:
a. Method and cost of acquisition and preparation for redevelopment and estimated
proceeds from disposal to redevelopers.
The developer has a contract to purchase the property the property for $68,940. The
$68,940 is included as a TIF eligible expense. Costs for site preparation, utilities and
contingencies of $39,475 are included as a TIF eligible expense. Architectural and
Engineering fees of $4,300 and are included as a TIF eligible expense. Legal, Developer
and Audit Fees including a reimbursement to the City and the CRA of $2,750 are
included as a $10,000 TIF eligible expense. The total of eligible expenses for this project
is $122,985.
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 $123,000 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 through December
2030.
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
Grand Island Regular Meeting - 2/12/2014 Page 38 / 63
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. This
will have the intended result of preventing recurring elements of unsafe buildings and
blighting conditions.
8. Time Frame for Development
Development of this project (including demolition, site preparation and new construction)
is anticipated to be completed between May 2014 and December of 2016. Excess
valuation should be available for this project for 15 years beginning with the 2015 tax
year. It is anticipated that 3 of the houses will be built by December 31 of 2015 and that
the other houses will be built in 2016.
9. Justification of Project
This is a residential neighborhood characterized by single family dwellings on smaller
lots. The property has been considered for development by a number of individuals of
the years but the question of how to extend sanitary sewer to serve property was not
answered until recently. By creating a larger detention cell and moving the dirt from
north part of the property the lots can be raised enough to support the extension of sewer
to serve the six properties. This is infill development in an area with all city services
available. This project does not propose to tear down any buildings with historic value.
10. Cost Benefit Analysis Section 18-2113 of the Act, further requires the Authority
conduct a cost benefit analysis of the plan amendment in the event that Tax Increment
Financing will be used. This analysis must address specific statutory issues.
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $35,000. The
proposed extension of sanitary sewer and subsequent construction of single family homes
at this location will result in approximately $445,000 of additional taxable valuation
based on the current valuation of other Habitat houses in the area. No tax shifts are
anticipated from the project. The project creates additional valuation that will support
taxing entities long after the project is paid off.
Grand Island Regular Meeting - 2/12/2014 Page 39 / 63
(b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
No additional public service needs have been identified. Existing water and waste
water facilities will not be impacted by this development. The electric utility has
sufficient capacity to support the development. It is not anticipated that this will impact
schools. Fire and police protection are available and should not be impacted by this
development.
(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
The proposed project will have no impact on other firms locating or expanding in the
area.
(d) Impacts on other employers and employees within the city or village and the
immediate area that are located outside of the boundaries of the area of the
redevelopment project; and
This project will not have a negative impact on other employers and will result in
additional housing choices for employees within the city.
(e) Any other impacts determined by the authority to be relevant to the
consideration of costs and benefits arising from the redevelopment project.
This project will increase the quantity of available quality housing in Grand Island by
a net of six single family homes. These types of smaller projects spread throughout the
city will have a less drastic impact on neighborhoods and schools than a centralized
larger housing project.
This is a neighborhood that has benefited extensively from development by the Grand
Island Habitat for Humanity Affiliate. This project will continue that investment and
commitment.
Time Frame for Development
Development of this project is anticipated to be completed during between May of 2014
and December 31 of 2016. 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
15 years beginning in 2015 with taxes due in 2016. 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 $123,000 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 demolition, site
preparation, engineering, expenses and fees reimbursed to the City and CRA, and
financing fees the developer will spend at least $123,000 on TIF eligible activities.
Grand Island Regular Meeting - 2/12/2014 Page 40 / 63
See Attached Building Plans and Photos included with application.
Grand Island Regular Meeting - 2/12/2014 Page 41 / 63
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 167
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA, SUBMITTING A PROPOSED
REDEVELOPMENT PLAN TO THE HALL COUNTY REGIONAL PLANNING
COMMISSION FOR ITS RECOMMENDATION
WHEREAS, this Community Redevelopment Authority of the City of Grand
Island, Nebraska ("Authority"), pursuant to the Nebraska Community
Development Law (the "Act"), prepared a proposed redevelopment plan (the
"Plan") a copy of which is attached hereto as Exhibit 1, for redevelopment of an
area within the city limits of the City of Grand Island, Hall County, Nebraska; and
WHEREAS, the Authority is required by Section 18-2112 of the Act to submit
said to the planning board having jurisdiction of the area proposed for redevelopment
for review and recommendation as to its conformity with the general plan for the
development of the City of Grand Island, Hall County, Nebraska;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
The Authority submits to the Hall County Regional Planning Commission the
proposed Plan attached to this Resolution, for review and recommendation as to its
conformity with the general plan for the development of the City of Grand Island, Hall
County, Nebraska.
Passed and approved this ___ day of ___________, 2014.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By___________________________
Chairperson
ATTEST:
__________________________
Secretary
Grand Island Regular Meeting - 2/12/2014 Page 42 / 63
EXHIBIT 1
REDEVELOPMENT PLAN AMENDMENT
Grand Island Regular Meeting - 2/12/2014 Page 43 / 63
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 168
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA, PROVIDING NOTICE OF INTENT TO ENTER INTO
A REDEVELOPMENT AFTER THE PASSAGE OF 30 DAYS AND OTHER MATTERS
WHEREAS, this Community Redevelopment Authority of the City of Grand
Island, Nebraska ("Authority"), has received an Application for Tax Increment
Financing under the Nebraska Community Development Law (the “Act”) on a
project within redevelopment area #1, from Grand Island Area Habitat for Humanity, (The "Developer") for redevelopment of an area within the city limits of
the City of Grand Island as set forth in Exhibit 1 attached hereto area; and
WHEREAS, this Community Redevelopment Authority of the City of Grand
Island, Nebraska ("Authority"), is proposing to use Tax Increment Financing on a project within redevelopment area #1;
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 __________, 2014.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By ___________________________
Chairperson
ATTEST:
___________________
Secretary
Grand Island Regular Meeting - 2/12/2014 Page 44 / 63
Exhibit 1
Attach a copy of the Redevelopment Contract
Grand Island Regular Meeting - 2/12/2014 Page 45 / 63
Community Redevelopment
Authority (CRA)
Wednesday, February 12, 2014
Regular Meeting
Item H2
Mainstays TIF
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 2/12/2014 Page 46 / 63
Project Redeveloper Information
Business name: Legacy Hospitality doing business as Mainstay Suites
Address: 3051 S. Locust Street, Grand Island, NE 68801
Telephone: 308-384-1333 Fax No: 308-384-3109
Brief Description of Applicants Business: Grand Island’s Mainstay Suites will be an upscale, 59 room
extended stay hotel. Mainstay Suites pride themselves in being welcoming, spacious, and equipped and
offer full functioning kitchenette’s which give our guests the opportunity to enjoy a home away from
home atmosphere.
Present Ownership Proposed Project Site: 3051 S. Locust Street, Grand Island, NE 68801.
Proposed Project: Building square footage, size of property, description of building’s-materials, etc.
Please attach site plan if available. Our facility will consist of a total building area of 32, 712 square feet
sitting on 3.005 acres. The building itself will be a three story facility with eifs siding in attractive
amber,beige, and mulberry colors with ice cube trim and slate shingles. Please see attached site plan for
additional building and material information.
If Property is to be Subdivided, Show Division Planned: N/A
Estimated Project Costs:
Acquisition Costs:
A. Land: (purchased) $208,000.00
B. Building: (N/A) $
Construction Costs:
A. Renovation or Building Costs: $2,500,000.00
B. On-Site Improvements: $
Soft Costs:
A. Architectural & Engineering Fees: $60,725.00
B. Financing Fees: $75,500.00
C. Legal/Developer/Audit Fees: $7,901.86
D. Contingency Reserves: $125,000.00
E. Other (Please Specify)-
a. General Conditions (See Attached) $235,443.94
b. Site Work $169,195.00
c. Franchise Fee $20,000.00
Grand Island Regular Meeting - 2/12/2014 Page 47 / 63
d. Market Study/Performa $6,550.50
e. Appraisal $6,000.00
Total $706,316.30
Total Estimated Market Value at Completion: $4,373,613.00
Source of Financing:
A. Developer Equity: $656,042.003
B. Commercial Bank Loan: $3,600,000.00
C. Tax Credits:
1. N.I.F.A. $
2. Historic Tax Credits $
D. Industrial Revenue Bonds: $
E. Tax Incremental Assistance: $
F. Other: $
Name, Address, Phone & Fax Numbers of Architect, Engineer, and General Contractor:
Architect- Leon K. Lauver & Associates: 2802 Westview Drives, PO. Box 1207, Norfolk, NE 68702-
1207 (p) (402)-371-3333.
General Contractor- Mehring Construction, 3421 State Street, Ste 4, Grand Island, NE 68803 (p)
(308)380-0444.
Engineer- Tim Hamilton with Concrete Design: 3858 S. State Highway, Republic, MO 65738 (p)
(417)-732-2845.
Estimated Real Estate Taxes on Project Site Upon Completion of Project:
(Please Show Calculations)
Project Construction Schedule:
Construction Start Date: Approximately April 1, 2014.
Construction Completion Date: Approximately April 1, 2015.
If Phased Project:
_________________2014 Year ___________________75 % Complete
_________________2015 Year ___________________25 % Complete
Grand Island Regular Meeting - 2/12/2014 Page 48 / 63
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:
Legacy Hospitality is requesting $769,316.30 to be utilized for general conditions work, site
work, franchise fees, Market Study Performa, the appraisal, NEDCO fee’s, Lawyer fee’s, and accounting
fee’s related to the startup of this project. See attached for more information.
Statement Identifying Financial Gap and Necessity for use of Tax Increment Financing for Proposed
Project:
Tax Increment Financing is necessary for our business to complete the project of bringing the
Mainstay Suites into Grand Island at our South Locust Street Location. Our business will contribute to
the City of Grand Island’s goal of revitalizing the South Locust Street Corridor and will not be feasible
without this financing.
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:
Milton Motels,LLC, Sandy Milton, 109 E. Ashton Ave, Grand Island,NE, 68801, (p) 308-383-7595, (f) 308-
384-3109.
IV. Please Attach Applicants Corporate/Business Annual Financial Statements for the Last Three Years.
Post Office Box 1968
Grand Island, Nebraska 98802-1968
Phone: 308 385-5240
Fax: 308 385-5423
Email: cnabilty@grand-island.com
Grand Island Regular Meeting - 2/12/2014 Page 49 / 63
Grand Island Regular Meeting - 2/12/2014 Page 50 / 63
Redevelopment Plan Amendment
Grand Island CRA Area #2
February 2014
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area #2 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 #2.
Executive Summary:
Project Description
THE ACQUISITION OF PROPERTY AND CONSTUCTION OF A 59 ROOM
MAINSTAY SUITES EXTENDED STAY HOTEL AT 3051 SOUTH LOCUST
STREET AND THE SUBSEQUENT SITE WORK, UTILITY, ENGINEERING,
LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY FOR THE
CONSTRUCTION OF A HOTEL AT THIS LOCATION.
The developer intends to use Tax Increment Financing to aid in acquisition of property
and necessary site and public infrastructure improvements to construct a hotel on this site.
The site is has been acquired by the developer. All site work, demolition and utilities will
be paid for by the developer. The developer is responsible for and has provided evidence
that they can secure adequate debt financing to cover the costs associated with the
acquisition, site work and necessary infrastructure. 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:
Property Description (the “Redevelopment Project Area”)
This property is located north and east of the intersection of South Locust Avenue and
U.S. Highway 34 (Husker Highway) in southern Grand Island. The attached map
identifies the subject property and the surrounding land uses:
Legal Description: Lot 1 of Vanosdall Subdivision in Grand Island, Hall County
Nebraska.
Grand Island Regular Meeting - 2/12/2014 Page 51 / 63
Existing Land Use Map
Grand Island Regular Meeting - 2/12/2014 Page 52 / 63
The tax increment will be captured for the tax years the payments for which become
delinquent in years 2016 through 2030 inclusive.
The real property ad valorem taxes on the current valuation will continue to be paid
to the normal taxing entities. The increase will come from the construction of a new
hotel at this location.
Statutory Pledge of Taxes.
Pursuant to Section 18-2147 of the Act, any ad valorem tax levied upon real property in
the Redevelopment Project Area shall be divided, for the period not to exceed 15 years
after the effective date of the provision, which effective date shall be January 1, 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.
Grand Island Regular Meeting - 2/12/2014 Page 53 / 63
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 September 13, 1999. [§18-2109] Such
declaration was made after a public hearing with full compliance with the public
notice requirements of §18-2115 of the Act.
2. Conformation to the General Plan for the Municipality as a whole. [§18-2103 (13)
(a) and §18-2110]
Grand Island adopted a Comprehensive Plan on July 13, 2004. This redevelopment plan
amendment and project are consistent with the Comprehensive Plan, in that no changes in
the Comprehensive Plan elements are intended. This plan merely provides funding for
the developer to rehabilitate an existing conforming use on this property.
3. The Redevelopment Plan must be sufficiently complete to address the following
items: [§18-2103(13) (b)]
a. Land Acquisition:
The Redevelopment Plan for Area #2 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority.
b. Demolition and Removal of Structures:
The project to be implemented with this plan amendment does not call for the demolition
and removal of any existing structures.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. The site is
planned for highway commercial development. [§18-2103(b) and §18-2111] The
attached map also is an accurate site plan of the area after redevelopment. [§18-2111(5)]
Grand Island Regular Meeting - 2/12/2014 Page 54 / 63
City of Grand Island Future Land Use Map
Grand Island Regular Meeting - 2/12/2014 Page 55 / 63
d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned B2-AC General Business zone with an Arterial Commercial Overlay.
No zoning changes are anticipated with this project. No changes are anticipated in street
layouts or grades. No changes are anticipated in building codes or ordinances. Nor are
any other planning changes contemplated. The proposed use as a hotel is permitted in the
B2-AC zoning district. [§18-2103(b) and §18-2111]
e. Site Coverage and Intensity of Use
The developer is proposing construct a new hotel as a conforming structure and use in the
B2-AC zoning district. [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
This site has full service to municipal utilities. No utilities would be impacted by the
development.
The developer will be responsible for replacing any sidewalks damaged during
construction of the project.
No other utilities would be impacted by the development. [§18-2103(b) and §18-2111]
4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation.
This property is currently vacant with no structures. No individuals or families will be
relocated as a result of this project.[§18-2103.02]
5. No member of the Authority, nor any employee thereof holds any interest in any
property in this Redevelopment Project Area. [§18-2106]
Tom Gdowski a member of the Grand Island Community Redevelopment Authority is
President of Equitable Bank of Grand Island. Equitable Bank is providing the financing
for this project and Mr. Gdowski could benefit from this transaction.
6. Section 18-2114 of the Act requires that the Authority consider:
a. Method and cost of acquisition and preparation for redevelopment and estimated
proceeds from disposal to redevelopers.
The property was purchased by Legacy Hospitality for $208,000. Costs for site work and
architectural and engineering services, financing, legal services, studies and appraisals is
Grand Island Regular Meeting - 2/12/2014 Page 56 / 63
estimated at $554,716.3. Fees and reimbursement to the City and the CRA of $6,600 are
included as a TIF eligible expense.
No property will be transferred to redevelopers by the Authority. The developer will
provide and secure all necessary financing.
b. Statement of proposed method of financing the redevelopment project.
The developer will provide all necessary financing for the project. The Authority will
assist the project by granting the sum of $769,316.30 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, 2030.
c. Statement of feasible method of relocating displaced families.
No families will be displaced as a result of this plan.
7. Section 18-2113 of the Act requires:
Prior to recommending a redevelopment plan to the governing body for approval, an
authority shall consider whether the proposed land uses and building requirements in the
redevelopment project area are designed with the general purpose of accomplishing, in
conformance with the general plan, a coordinated, adjusted, and harmonious development
of the city and its environs which will, in accordance with present and future needs,
promote health, safety, morals, order, convenience, prosperity, and the general welfare, as
well as efficiency and economy in the process of development, including, among other
things, adequate provision for traffic, vehicular parking, the promotion of safety from
fire, panic, and other dangers, adequate provision for light and air, the promotion of the
healthful and convenient distribution of population, the provision of adequate
transportation, water, sewerage, and other public utilities, schools, parks, recreational and
community facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention of the
recurrence of insanitary or unsafe dwelling accommodations or conditions of blight.
The Authority has considered these elements in proposing this Plan Amendment. This
amendment, in and of itself will promote consistency with the Comprehensive Plan, in
that it will allow for the utilization of and redevelopment of commercial lots. This will
not significantly impact traffic on at the intersection of South Locust and U.S. Highway
34. New commercial development will raise property values and provide a stimulus to
keep surrounding properties properly maintained. This will have the intended result of
preventing recurring elements of unsafe buildings and blighting conditions.
Grand Island Regular Meeting - 2/12/2014 Page 57 / 63
8. Time Frame for Development
Development of this project (including demolition, site preparation and new construction)
is anticipated to be completed between May 2014 and May of 2015. Excess valuation
should be available for this project for 15 years beginning with the 2015 tax year.
9. Justification of Project
The South Locust Corridor is a major entrance for the City of Grand Island from
Interstate 80. The Heartland Events Center, the State Fair Park and associated buildings
and other attractions are all located along South Locust. The South Locust Business
Improvement District and City of Grand Island have spent a considerable amount of
money on landscaping and aesthetic treatments along this corridor. The City has codified
those improvements as development occurs south of the U.S. 34 and Locust. The Grand
Island CRA has invested more than $500,000 in the property located on the east side of
South Locust south of this project. This is a gateway to the community and for many
people from outside the area is what they will use to judge our City. The opportunity to
partner with owners of properties along this corridor as they develop and invest in their
projects is important to making those favorable first impressions.
10. Cost Benefit Analysis Section 18-2113 of the Act, further requires the Authority
conduct a cost benefit analysis of the plan amendment in the event that Tax Increment
Financing will be used. This analysis must address specific statutory issues.
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $351,390.
The proposed final value of this facility will result in an estimated additional $3,602,329
of taxable valuation based on an analysis by the Hall County Assessor’s office. No tax
shifts are anticipated from the project. The project creates additional valuation that will
support taxing entities long after the project is paid off.
(b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
No additional public service needs have been identified. Existing water and waste
water facilities will not be impacted by this development. The electric utility has
sufficient capacity to support the development. It is not anticipated that this will impact
schools. Fire and police protection are available and should not be impacted by this
development.
(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
Grand Island Regular Meeting - 2/12/2014 Page 58 / 63
The proposed facility will provide jobs for persons employed by the contractors that
will be involved with the project. It will result in a new national chain hotel along the
South Locust corridor.
(d) Impacts on other employers and employees within the city or village and the
immediate area that are located outside of the boundaries of the area of the
redevelopment project; and
This may create additional demand for service employees in the Grand Island area
and could impact other hotels.
(e) Any other impacts determined by the authority to be relevant to the
consideration of costs and benefits arising from the redevelopment project.
This will improve the southern entrance into the City of Grand Island. The additional
rooms will provide rental space for people staying here for the State Fair and similar
activities. Grand Island does not currently have a modern extended stay hotel so this
should meet an existing need within the market place without negatively impacting other
hotels that cater to more transitory clientele
Time Frame for Development
Development of this project is anticipated to be completed during between May 1, 2014
and May 1 of 2015. 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 15 years
beginning in 2016 with the taxes due for the 2015 tax year. 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 $769,316.30 the
projected amount of increment based upon the anticipated value of the project and current
tax rate. Based on the estimates of the expenses of the cost of renovation, site
preparation, engineering, expenses and fees reimbursed to the City and CRA, and
financing fees the developer will spend over $770,000 on TIF eligible activities.
Building Plans are available in the CRA file
Grand Island Regular Meeting - 2/12/2014 Page 59 / 63
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 169
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA, SUBMITTING A PROPOSED
REDEVELOPMENT PLAN TO THE HALL COUNTY REGIONAL PLANNING
COMMISSION FOR ITS RECOMMENDATION
WHEREAS, this Community Redevelopment Authority of the City of Grand
Island, Nebraska ("Authority"), pursuant to the Nebraska Community
Development Law (the "Act"), prepared a proposed redevelopment plan (the
"Plan") a copy of which is attached hereto as Exhibit 1, for redevelopment of an
area within the city limits of the City of Grand Island, Hall County, Nebraska; and
WHEREAS, the Authority is required by Section 18-2112 of the Act to submit
said to the planning board having jurisdiction of the area proposed for redevelopment
for review and recommendation as to its conformity with the general plan for the
development of the City of Grand Island, Hall County, Nebraska;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
The Authority submits to the Hall County Regional Planning Commission the
proposed Plan attached to this Resolution, for review and recommendation as to its
conformity with the general plan for the development of the City of Grand Island, Hall
County, Nebraska.
Passed and approved this ___ day of ___________, 2014.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By___________________________
Chairperson
ATTEST:
__________________________
Secretary
Grand Island Regular Meeting - 2/12/2014 Page 60 / 63
EXHIBIT 1
REDEVELOPMENT PLAN AMENDMENT
Grand Island Regular Meeting - 2/12/2014 Page 61 / 63
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 170
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA, PROVIDING NOTICE OF INTENT TO ENTER INTO
A REDEVELOPMENT AFTER THE PASSAGE OF 30 DAYS AND OTHER MATTERS
WHEREAS, this Community Redevelopment Authority of the City of Grand
Island, Nebraska ("Authority"), has received an Application for Tax Increment
Financing under the Nebraska Community Development Law (the “Act”) on a
project within redevelopment area #2, from Legal Hospitality LLC, (The "Developer") for redevelopment of an area within the city limits of the City of Grand
Island as set forth in Exhibit 1 attached hereto area; and
WHEREAS, this Community Redevelopment Authority of the City of Grand
Island, Nebraska ("Authority"), is proposing to use Tax Increment Financing on a project within redevelopment area #2;
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 __________, 2014.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By ___________________________
Chairperson
ATTEST:
___________________
Secretary
Grand Island Regular Meeting - 2/12/2014 Page 62 / 63
Exhibit 1
Attach a copy of the Redevelopment Contract
Grand Island Regular Meeting - 2/12/2014 Page 63 / 63