09-22-2014 Community Redevelopment Authority Special Meeting Packet
Community Redevelopment
Authority (CRA)
Monday, September 22, 2014
Special Meeting Packet
Board Members:
Michelle Fitzke
Tom Gdowski
Barry Sandstrom
Sue Pirnie
Glen Murray
2:00 PM
City Hall
Grand Island Special Meeting - 9/22/2014 Page 1 / 38
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)
Monday, September 22, 2014
Special Meeting
Item -1
Agenda
Staff Contact: Chad Nabity
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AGENDA
Monday September 22, 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 September 10, 2014 Meeting.
3.Consideration of an Amendment to the Redevelopment Plan for 2228 N Webb
Rd., Grand Island Joint Venture, LLC.
4.Adjournment
Next Meeting October 29, 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)
Monday, September 22, 2014
Special Meeting
Item A - 1
Meeting Minutes
Staff Contact: Chad Nabity
Grand Island Special Meeting - 9/22/2014 Page 5 / 38
OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
September 10, 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 September 10, 2014 at City Hall 100 E First Street. Notice of the meeting was
given in the September 3, 2014 Grand Island Independent.
1.CALL TO ORDER. Chairman Barry Sandstrom called the meeting to order
at 4:00 p.m. The following members were present: Michelle Fitzke, Tom
Gdowski and Glen Murray. Also present were; Director, Chad Nabity;
Secretary, Rose Rhoads; Legal Counsel, Duane Burns; Council Liaison,
Vaughn Minton, Senior Accountant, Billy Clingman; Joel Riggs.
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
August 13, 2014 meeting was made by Gdowski and seconded by Murray.
Upon roll call vote all present voted aye. Motion carried unanimously.
3.APPROVAL OF FINANCIAL REPORTS. Clingman reviewed the financial
reports for the period of August 1, 2014 through August 31, 2014. Motion
was made by Murray and seconded by FItzke 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 Nabity.
A motion was made by Murray noting Adam Miller’s payment would be
contingent upon his receiving his final inspections and the CRA receiving
the receipts of the bills Miller has paid, the motion was seconded by Fitzke
to approve the bills in the amount of $90,472.59. Upon roll call vote all
present voted aye. Motion carried unanimously to approve the payment of
bills totaling $90,472.59.
5.REVIEW OF COMMITTED PROJECTS & CRA PROPERTY.
Nabity reviewed the Committed Projects. Nabity explained the Happy
Brush façade had been added to the Committed Projects. With the
completion of Miller Tire and the payment paid to Miller that would be
removed from the Committed Projects. Ryan Waind’s contractor has
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submitted plans for his Façade, his project will be moving forward. The
Housing Study is complete.
6. CONSIDERATION OF REDEVELOPMENT CONTRACT. Consideration
of the redevelopment contract and Resolution 182 was considered for 620
W State Street. A motion was made by Gdowski and seconded by Fitzke
to approve the TIF contract and Resolution 182. Sandstrom noted that
with direction from Legal Counsel, Home Federal has a bank branch in the
current Skagway building and its branch will be closing at the end of
September 2014, he could vote and there would not be a conflict. Upon
roll call all present voted aye. Motion carried unanimously to approve TIF
contract and Resolution 182.
7.DISCUSSION CONCERNING PURCHASE/SALE OF REAL
ESTATE OF PROPERTY. None
8.APPROVE RESOLUTION OR RESOLUTIONS TO
PURCHASE/SELL REAL ESTATE. None
9. DIRECTIORS REPORT. Need to hold a special meeting at
the end of September to approve an Amendment to the
Redevelopment Plan for the Grand Island mall, Enhanced
Employment Area.
10. ADJORNMENT. Sandstrom adjourned the meeting at 4:20 p.m.
The next meeting is scheduled for October 15, 2014 at 4:00 p.m.
Respectfully submitted
Chad Nabity
Director
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Community Redevelopment
Authority (CRA)
Monday, September 22, 2014
Special Meeting
Item I1
Amendment to Redevelopment Plan
Staff Contact: Chad Nabity
Grand Island Special Meeting - 9/22/2014 Page 8 / 38
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SUPPLEMENTAL BACKGROUND
INFORMATION RELATIVE TO OCCUPATION
TAX FINANCING REQUEST
Project Redeveloper Information
Business Name:
Name: Grand Island Joint Venture, LLC
Address: 2127 Innerbelt Business Center Drive, Suite 310, St. Louis, MO 63114
Telephone No.: (314) 513-1500 Fax No.: (314) 513-1501
Contact: Ray O’Connor (308) 381-2497 / Tim Lowe (314) 513-0018
Brief Description of Applicant’s Business:
The Grand Island Joint Venture, LLC is a joint venture between Ray O’Connor and
Michael Staenberg. Ray O’Connor is CEO of O’Connor Enterprises; a full service commercial
real estate company that owns manages and leases shopping centers, hotels and residential
communities throughout central Nebraska. Michael Staenberg is President of The Staenberg
Group, a shopping center development, leasing and property management firm. Over the
previous 30 years, the principals of The Staenberg Group have been responsible for the
development and redevelopment of over 35 million square feet of retail shopping centers across
the United States.
Present Ownership Proposed Project Site:
Grand Island Joint Venture, LLC
Proposed Project:
The redevelopment of the former Grand Island Mall and related 16 acres of property, into
and “open air” regional retail shopping center, including approximately 128,000 square feet of
new tenant leasable area. The property and building are to be designed and constructed in a first
class manner, and consistent with competing regional retail centers in the area. The
redevelopment project will include demolition of the former interior mall space, building
demolition to create vehicular access between Webb Road and the new Hwy 281 parking fields,
new tenant storefronts and exterior amenities as well as new customer parking fields, site
lighting and landscaping. Tenants in the project will be a mix of local, regional and national
groups between 1,500 and 45,000 square feet, and include three (3) outlot opportunities. See
Exhibit B – site plan, lease plan and proposed elevations. Grand Island Joint Venture, LLC
hereby certifies that no one business will have one hundred thirty-five thousand square feet or
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more of space within the development subject to the Enhanced Employment Area as long as such
EEA is in place.
Required Information:
A.Describe the amount and purpose for which Occupation Tax Financing is requested:
An Occupation tax of one percent (1%) on all items subject to the sales tax sold and delivered
within the Enhanced Employment Area. Occupation tax financing is requested for the
redevelopment and re-branding of the former Grand Island Mall and related 16 acres of property
into an “open air” regional retail shopping center “Northwest Commons” [Neb Rev Stat 18-
2142.04(1)(a)] (See Exhibit “A” for acceptable purposes)
The amount of the Occupation Tax Financing is 14,370,247 for rehabilitation and repair
See Exhibit A – Sources and Uses of Funds for Northwest Commons. ($16,188,247 less
site acquisition cost of $1,818,000)
B.What is the legal description of the area for which you are requesting occupation tax
financing? (enhanced employment area) Legal Description:
A tract of land comprising all of Lot Ten (10), Grand Island Mall Eighth Subdivision and
all of Lot Two (2), Grand Island Mall Fifteenth Subdivision, all in the City of Grand
Island, Hall County, Nebraska, and containing 16.428 acres more or less.
EXCEPTING THEREFROM
A tract of land comprising a part of Lot Ten (10), Grand Island Mall Eighth Subdivision
and a part of Lot Two (2), Grand Island Mall Fifteenth Subdivision, all in the City of
Grand Island, Hall County, Nebraska, and more particularly described as follows:
Beginning at the northwest corner of said Lot Ten (10); thence running easterly on the
north line of said Lots Ten (10), on an Assumed Bearing of N8947’33”E, a distance of
Two Hundred Thirty Five (235.00) feet, to the Actual Point of Beginning; thence
continuing N8947’33”E, on the north line of said Lot Ten (10) and said Lot Two (2), a
distance of Two Hundred Fifty Three and Fifty Hundredths (253.50) feet; thence running
S0012’27”E, a distance of Two Hundred Six (206.00) feet; thence running
S8947’33”W, a distance of Two Hundred Fifty Three and Fifty Hundredths (253.50)
feet; thence running N0012’27”W, a distance of Two Hundred Six (206.00) feet, to the
Actual Point Of Beginning and containing 1.672 acres more or less. Net 14.756 acres
more or less.
(“Enhanced Employment Area”)
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C.Will your investment in the Enhanced Employment Area result in at least fifteen new
employees? If so, how many new employees do you project will result from your new
investment?
Yes. The project will protect and enhance the existing employment base within the
Enhanced Employment Area by redeveloping prime commercial space at this location.
Most of the existing retail space within the Enhanced Employment Area is currently
vacant. The new retail facilities will employ managerial and sales staff at these locations.
New business would result in a net increase in employment. At project stabilization,
employment within the Enhanced Employment Area is expected to increase by 275
employees including a mixture of part time, full time and managerial positions.
D.Will your new investment in the Enhanced Employment Area exceed one million dollars?
If so, what is your estimated new investment in the Enhanced Employment Area?
Yes. The anticipated total investment within the Enhanced Employment Area is
projected at $14,370,247.
E.Will your project/business have one hundred thirty-five thousand square feet or more? If
so, do you anticipate annual gross sales of ten million dollars or more?
No single retail tenant will exceed 135,000 square feet. The project will include
approximately 77,000 square feet of leasable tenant space within the Enhanced
Employment Area plus three (3) new outlot tenants. Sales for the retail tenants within
the Enhanced Employment Area are projected at $15 million for the initial stabilized year
(2017). No single tenant will exceed $10 million in sales.
F.Please list the name of each business and its respective classification that you project will
be located in the Enhanced Employment Area. (for example, prepared food retail,
clothing retail, grocery retail, jewelry retail, gasoline retail, sporting goods retail):
BUSINESS CLASSIFICATION
1 .Apparel Clothing Retail 20,008sf
2. Hobby & Crafts Hobby & Craft Retail 14,040sf
3. Shoes Shoe Retail 8,960sf
4. Apparel Clothing Retail 6,420sf
5. Cosmetics Beauty Retail 5,777sf
6. Quick Serve Prepared Food Retail 3,424sf
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7. Specialty Store Specialty Retail 3,210sf
8. Salon Service Retail 1,605sf
9.. Apparel Clothing Retail 6,060sf
10. Specialty Store Specialty Retail 3,232sf
11. Quick Serve Prepared Food Retail 3,030sf
12. Salon Service Retail 1,515sf
13.
14. Restaurant Prepared Food Retail Outlot A
15. Service/Fitness Service Retail Outlot B
16. Fast Food Prepared Food Retail Outlot C
*If you need more space, please attach additional page(s).
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Exhibit “A”
Attach Sources and Uses here
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Northwest Commons
Grand Island, NE
Sources and Uses of Funds Exhibit A
Original Budget - Allocation
LAND ACQUISITION COST Developer Costs TIF Only EEA Only Total Budget
Acreage Cost per Acre
16.45 $2.51 Purchase Price 1,800,000 0 0 1,800,000
1%Closing Costs 18,000 0 0 18,000
Total Land 1,818,000 0 0 1,818,000
OFF SITE DEVELOPMENT COST
Highway Improvements 0 0 0 0
Traffic Light 0 0 0 0
Utility Relocation 0 0 0 0
Miscellaneous Utilities 0 0 0 0
Storm Line/Detention Cell Clean Out 0 0 0 0
Contingency 0 0 0 0
Total Off-Site 0 0 0 0
ON SITE DEVELOPMENT COST
Clear/Grade/Fill (EARTHWORK)0 0 565,250 565,250
Site Demolition 0 105,000 0 105,000
Curbs/Gutters/Sidewalks 0 0 148,723 148,723
Paving/Striping/Signage 0 0 910,002 910,002
Electrical Development 0 107,500 0 107,500
Gas Development 0 20,500 0 20,500
Telephone Development 0 14,500 0 14,500
Landscaping 0 0 125,000 125,000
Parking Lot Lighting 0 0 207,700 207,700
Site Electric 0 95,200 0 95,200
Pylon Sign & Monument Signs 0 0 175,000 175,000
Sewers - Sanitary 0 37,500 0 37,500
Sewers - Storm & Detention Cell 0 243,000 0 243,000
Water Lines 0 96,000 0 96,000
Trash Receptacle & FFE 0 0 45,000 45,000
Utility Tap Fees 0 40,000 0 40,000
Outlot Utility Allowance (3)0 120,000 0 120,000
Contingency- Sitework 109,931 0 0 109,931
( $ Cost/SF Land)$ 5.49 Total On-Site Costs 109,931 879,200 2,176,675 3,165,806
BUILDING CONSTRUCTION COST
Sq. Ft.Cost Tenant
140,014 $43.82 Gross Building Shell including Docks, Corridors, Roof 0 1,992,836 4,142,277 6,135,113
45,480 $40.00 Anchor White Box 0 1,819,200 0 1,819,200
19,974 $18.00 Jr Anchors White Box 0 359,532 0 359,532
13,500 $18.18 Jr Anchors White Box 0 245,430 0 245,430
9,440 $18.18 Jr Anchors White Box 0 171,619 0 171,619
6,175 $25.53 Jr Anchors White Box 0 157,648 0 157,648
6,060 $25.53 Jr Anchors White Box 0 154,712 0 154,712
28,043 $25.53 Small Shops White Box 0 204,240 511,698 715,938
11,342 Corridors, Docks , LL Rooms 0 0 0 0
140,014 Total Building 0 5,105,217 4,653,975 9,759,192
( $ Cost/SF)$ 41.02
Above White Box - Leasing TI (Tenant Finish)0 386,193 552,222 938,415
Winter/Spring Conditions - Allowance 0 20,577 29,423 50,000
Building Contingency (3%) 262,759 0 0 262,759
Total Building 262,759 5,511,987 5,235,620 11,010,366
GC/OH/FEE
Mobilization & Gen Cond (Building and Site)314,089 0 0 314,089
GC OHP/Fee/Insurance ( Building and Site)491,541 0 0 491,541
Total GC/OH/Fee 805,630 0 0 805,630
SOFT COST
Land Interests (12 Months @ 4.0 %)72,720 0 0 72,720
Construction Interest (8 Months @ 4.0%)234,055 0 0 234,055
Point Fee Construction Loan (Points)87,108 0 0 87,108
Appraisal 5,000 0 0 5,000
Architect & Engineers for Building 0 119,346 170,654 290,000
Architect – Anchor TI package 0 75,000 0 75,000
Architect – Jr Anchor/Tenant TI Packages 0 0 63,000 63,000
Architect - Other - LOD's TI Coord, TIF Pkg 0 25,000 0 25,000
Builder's Risk Insurance/Owners GL Policy 53,000 0 0 53,000
Construction Manager/Blakely Roof 4,200 0 0 4,200
Construction Staking 0 12,500 12,500
Engineering - Site Civil, Drainage, SWPPP 0 0 97,500 97,500
Environmental- Asbestos Survey Report 0 1,502 2,148 3,650
Construction Site Testing 0 11,523 16,477 28,000
Inspections - Building & Materials 26,000 0 0 26,000
Legal Fees 25,000 0 0 25,000
Public Finance - Legal Fees 0 10,288 14,712 25,000
Office Overhead 230,000 0 0 230,000
Permits & Fees (Shell & W Box)73,475 0 0 73,475
Real Estate Taxes 40,000 0 0 40,000
Impact Fees/Filing Fees 0 10,000 0 10,000
Soil Borings 5,000 0 0 5,000
Soils - Compaction Testing 10,000 0 0 10,000
Site - Construction Observations 0 21,400 30,600 52,000
Surveys - Plat, Topo, ALTA 0 0 14,250 14,250
Title Insurance 10,000 0 0 10,000
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Northwest Commons
Grand Island, NE
Sources and Uses of Funds Exhibit A
Traffic Engineer - Opinion Letter Only 0 0 6,000 6,000
Travel 15,000 0 0 15,000
Contingency 30,000 0 0 30,000
Total Soft Cost 920,558 274,059 427,841 1,622,459
REIMBURSEMENTS
Sale Of Outlots 0 0 0 0
Public Assistance 0 0 0 0
Total Reimbursements 0 0 0 0
Total Budget Before Fees 3,916,878 6,665,246 7,840,136 18,422,260
OUTSIDE PROJECT FEES
Leasing Fee - Outside 386,016 0 0 386,016
Leasing Fee - Anchor - Outside 0 0 0 0
Total Outside Fees 386,016 0 0 386,016
0
Total Budget After Outside Fees 4,302,894 6,665,246 7,840,136 18,808,276
TSG PROJECT FEES
Land Acquisition Fee 0 0 0
Leasing Fee - TSG 363,591 0 0 363,591
Land Sale Fee 0 0 0 0
Development Fee 257,344 0 0 257,344
Total Internal Fees 620,935 0 0 620,935
OUTPARCEL BUILDINGS
Outparcel Buildings (By Others)2,657,000 0 0 2,657,000
Total Outparcel Buildings 2,657,000 0 0 2,657,000
Total Budget 7,580,829 6,665,246 7,840,136 22,086,211
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WEBB RD NDIERS AVE NSTATE ST WUS HIGHWAY 281 NCAPITAL AVE W
LAWRENCE LNKELLY ST
ST PATRICK AVECOLLEGE ST
CARLETON AVE
RUE DE COLLEGE
US HIGHWAY 281 NFigure 1Future Land Use Map
Proposed TIF Area
±
Sept 11, 2014 CN
¯TIF and EEA Area Defined
Proposed EEA Area
Proposed TIF Area
Shopko
Detention Cell
Proposed EEA Area
Grand Island Special Meeting - 9/22/2014 Page 16 / 38
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Consulting Engineers + Land Surveyors
Phone: (770) 447-8999 Fax: (770) 447-9070
Duluth, Georgia 30097Suite 1006745 Sugarloaf ParkwayGrand IslandSpecial Meeting - 9/22/2014Page 18 / 38
Consulting Engineers + Land Surveyors
Phone: (770) 447-8999 Fax: (770) 447-9070
Duluth, Georgia 30097Suite 1006745 Sugarloaf ParkwayGrand IslandSpecial Meeting - 9/22/2014Page 19 / 38
Grand Island Special Meeting - 9/22/2014 Page 20 / 38
Grand Island Special Meeting - 9/22/2014 Page 21 / 38
Amended & Restated Site Specific Redevelopment Plan
Grand Island CRA Area 9
September 2014
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area 9 with in the city, pursuant to
the Nebraska Community Development Law (the “Act”) and provide for the
financing of a specific infrastructure related project in Area 9.
Executive Summary:
Project Description
THE RENOVATION AND REDEVELOPMENT OF THE GRAND ISLAND MALL
AT 2228 N WEBB ROAD LOT 10 OF GRAND ISLAND MALL EIGHTH
SUBDIVSION AND LOT 2 OF GRAND ISLAND MALL FIFTHTEEN
SUBDIVISION. THE SUBSEQUENT SITE WORK, UTILITY, ENGINEERING,
LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY FOR
REDEVELOPMENT AND RENOVATION AT THIS LOCATION.
The developer intends to use Tax Increment Financing to aid in renovation and
conversion of 128,000 square feet of leasable ‘open air’ tenant space and the
development of out parcels on the existing mall property. The developer intends to
connect a drive between the east and west sides of the mall by opening a vehicle and
pedestrian plaza through the center of the mall creating additional tenant spaces with
exterior entrances. The developer is trying to attract national retailers as an anchor to the
shopping center. This project would not be possible in an affordable manner without the
use of TIF.
The site is owned by the developer. All site work, demolition and utilities will be paid
for by the developer. The developer is responsible for and has provided evidence that
they can secure adequate debt financing to cover the costs associated with the acquisition,
site work and remodeling. The Grand Island Community Redevelopment Authority
(“CRA” or “Authority”) intends to pledge the ad valorem taxes generated over the 15
year period beginning January 1, 2016 towards the allowable costs and associated
financing for the remodeling and site work.
In addition, the CRA intends to designate a portion of Area 9 an enhanced employment
area as eligible for the imposition of an occupation tax pursuant to the Act.
I.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”)
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This property is located between State Street and Capital Avenue and between U.S.
Highway 281 and Webb Road in northwest Grand Island. The attached map identifies the
subject property and the surrounding land uses:
Legal Descriptions Lot 10 of Grand Island Mall Eighth Subdivision and Lot 2 of
the Grand Island Mall Fifteenth Subdivision in the City of Grand Island, Hall
County, Nebraska. It is anticipated that these will be replatted to facilitate the
redevelopment.
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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 rehabilitation of the
vacant commercial space into smaller tenant spaces.
Statutory Pledge of Taxes.
Pursuant to Section 18-2147 of the Act, any ad valorem tax levied upon real property in
the Redevelopment Project Area shall be divided, for the period not to exceed 15 years
after the effective date of the provision, which effective date shall be January 1, 2015.
Said taxes shall be divided as follows:
a. That portion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the redevelopment project valuation 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.
Redevelopment Plan Amendment Complies with the Act:
The Community Development Law requires that a Redevelopment Plan and Project
consider and comply with a number of requirements. This Plan Amendment meets the
statutory qualifications as set forth below.
1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on April 24, 2012. [§18-2109] Such
declaration was made after a public hearing with full compliance with the public
notice requirements of §18-2115 of the Act.
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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:
There is no proposed acquisition by the authority or the developer.
b. Demolition and Removal of Structures:
The project to be implemented with this plan amendment does not call for the demolition
and removal of any existing structures. Partial demolition and renovation of the existing
Grand Island Mall will be necessary to facilitate the planned development and vehicular
and pedestrian plaza between the east and west sides of the Mall.
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)]
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City of Grand Island Future Land Use Map
Grand Island Special Meeting - 9/22/2014 Page 27 / 38
d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned CD Commercial Development zone. The CD zone is a planned unit
development with the look, style placement and size of the buildings approved by with a
Development Plan approved by the Grand Island City Council. The proposed
redevelopment will require a revised development plan for the Grand Island Mall
Commercial Development zone. No changes are anticipated in street layouts or grades.
No changes are anticipated in building codes or ordinances. No other planning changes
are contemplated. The proposed use for commercial retail space is permitted in the CD
zoning district. [§18-2103(b) and §18-2111]
e. Site Coverage and Intensity of Use
The developer is proposing rehabilitate the existing structure a conforming structure and
use in the CD zoning district and add additional structures as may be permitted with a
revised development plan. [§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. It is anticipated that the developer will need to extend sewer and water to
various new lots to be created on this property. All improvements will be paid for by the
developer.
The developer will be responsible for replacing any sidewalks damaged during
construction of the project.
No other utilities would be impacted by the development. [§18-2103(b) and §18-2111]
4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation.
This property, owned by the developer is maintained as retail center. The proposed use
of this property would continue as a retail commercial space. No individuals or families
will be relocated as a result of this project.[§18-2103.02]
5. No member of the Authority, nor any employee thereof holds any interest in any
property in this Redevelopment Project Area. [§18-2106]
6. Section 18-2114 of the Act requires that the Authority consider:
a. Method and cost of acquisition and preparation for redevelopment and estimated
proceeds from disposal to redevelopers.
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The developer has owned the property since 2013 it was acquired at a cost of $1,818,000.
The cost of property acquisition is not being included as a TIF eligible expense. Costs
for rehabilitation of the existing structures and onsite improvements including the
extension of utilities is estimated at $20,268,210. Fees and reimbursement to the City and
the CRA will be included as a TIF eligible expense, which costs are estimated at $35,000.
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 $5,600,000 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, 2016 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 at this location. Renovated commercial development will
raise property values and provide a stimulus to keep surrounding properties properly
Grand Island Special Meeting - 9/22/2014 Page 29 / 38
maintained. This will have the intended result of preventing recurring elements of unsafe
buildings and blighting conditions.
8. Time Frame for Development
Development of this project (including demolition, site preparation and new construction)
is anticipated to be completed between October 2014 and June of 2016. Additional
buildings will be added as the market permits. Excess valuation should be available for
this project for 15 years beginning with the 2016 tax year.
9. Justification of Project
The U.S. Highway 281 Corridor is a major entrance for the City of Grand Island from the
north and from I-80. The majority of the new commercial development in Grand Island
in the past 10 years has occurred along this stretch of highway. The Grand Island Mall
area was one of the first pieces in this corridor to develop. The pattern that has been most
successful with buildings facing onto U.S. 281 was not as obvious a pattern for success as
it is today. The opportunity to partner with owners of key building along this corridor as
they redevelop and reinvest in their properties is important to making those favorable first
impressions. Buildings to both the north and the south of this property have been
redeveloped with faces toward both U.S. 281 and Webb Road. The completion of this
project will transform this area.
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.
As authorized in the Nebraska Community Development Law, §18-2147, Neb. Rev. Stat.
(2012), the City of Grand Island has analyzed the costs and benefits of the proposed
Grand Island Mall Redevelopment Project, including:
Project Sources and Uses. Approximately $5,600,000 in public funds from tax
increment financing provided by the Grand Island Community Redevelopment Authority
will be required to complete the project. This investment by the Authority will leverage
$14,668,210 of other investment by the Developer; a non TIF investment of $2.61 for
every TIF dollar investment.1
1 This does not include any investment in personal property at this time.
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Use of Funds.
Description TIF Funds Other Funds Total
Site Acquisition
Site preparation $ 3,165,805 $ 3,165,805
Legal and Plan*$ 35,000 $ 35,000
Building Costs
Renovation Phase 1 $5,600,000 $ 4,159,191 $ 9,759,191
Renovation Phase 2 $ 2,657,000 $ 2,657,000
General Conditions $ 805,630 $ 805,630
Tenant rehab $ 1,251,174 $ 1,251,174
Soft Costs $ 2,629,409 $ 2,629,409
TOTALS $5,600,000 $14,703,209 $20,030,209
Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2014,
valuation of approximately $2,044,858. Based on the 2013 levy this would result in a
real property tax of approximately $45,015. It is anticipated that the assessed value will
increase by $19,525,171, upon full completion, as a result of the site redevelopment.
This development will result in an estimated tax increase of over $429,818.00 annually.
The tax increment gained from this Redevelopment Project Area would not be available
for use as city general tax revenues, for a period of 15 years, or such shorter time as may
be required to amortize the TIF bond, but would be used for eligible private
redevelopment costs to enable this project to be realized.
Estimated 2014 assessed value:$ 2,044,858.00
Estimated value after completion $ 21,570,029.00
Increment value $ 19,525,399.00
Annual TIF generated (estimated)$ 429,818.00
TIF bond issue $ 5,600,000.00
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $2,044,858.
The proposed renovation of this facility will result in an estimated additional $19,525,399
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
Grand Island Special Meeting - 9/22/2014 Page 31 / 38
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;
This project will protect and enhance the existing employment within the Project
Area by redeveloping prime commercial space at this location. Most of the retail space at
this location is vacant. It could result in a new national retailers locating in Grand Island.
The new retail facilities will employ managerial and sales staff at these locations. New
businesses would result in a net increase in employment. At project stabilization
employment is expected to increase by 368 employees including a mixture of part time,
full time and managerial positions. Temporary construction employment will increase
during the construction. The construction period is expected to be 18 to 36 months.
The proposed facility will provide jobs for persons employed by the contractors that
will be involved with the project.
(d) Impacts on other employers and employees within the city or village and the
immediate area that are located outside of the boundaries of the area of the
redevelopment project; and
This may create additional demand for retail service employees in the Grand Island area
and could impact other retailers. The proposed retailers represent businesses not located
in Grand Island but they will potentially create competition for businesses located here.
The latest available labor statistics show that the Grand Island labor pool is 27,961 with a
3.3% unemployment rate2.
(e) Any other impacts determined by the authority to be relevant to the
consideration of costs and benefits arising from the redevelopment project.
Personal property in the project is subject to current property tax rates and would
generate additional property tax for all entities in the first year. Annual city sales taxes at
this location at project stabilization are expected to approach $25,000,000. Based on the
current city sales tax rate of 1.5% this would be projected at $375,000.
Time Frame for Development
Development of this project is anticipated to be completed during between October 2014
and June of 2016 with out-parcels to be developed as the market demands. The base tax
year should be calculated on the value of the property as of January 1, 2015. The tax
increment on excess valuation should be available for this project for 15 years beginning
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
2 https://neworks.nebraska.gov Labor Force, Employment and Unemployment for Grand Island City in
May 2014
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or an amount not to exceed $5,600,000 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 renovation, site preparation, engineering, expenses and fees
reimbursed to the City and CRA, and financing fees the developer will spend over
$14,000,000 of TIF eligible activities over $10,000,000 of which are directly related to
remodeling and rehabilitating the existing building.
It is anticipate by the Hall County Assessor’s office that this property if redeveloped as
proposed will see a 10 fold increase in valuation.
II.THE ENHANCED EMPLOYMENT AREA DESIGNATED BY THE CRA
AS ELIGIBLE FOR THE IMPOSITION OF AN OCCUPATION TAX TO PAY
FOR AUTHORIZED WORK WITHIN THE AREA IS DESCRIBED AS
FOLLOWS:
Property Description (the “Enhanced Employment Area”)
This property is located between State Street and Capital Avenue and between U.S.
Highway 281 and Webb Road in northwest Grand Island. The attached map identifies the
subject property and the surrounding land uses:
Legal Descriptions A tract of land comprising all of Lot Ten (10), Grand Island
Mall Eighth Subdivision and all of Lot Two (2), Grand Island Mall Fifteenth
Subdivision, all in the City of Grand Island, Hall County, Nebraska, and
containing 16.428 acres more or less.
EXCEPTING THEREFROM
A tract of land comprising a part of Lot Ten (10), Grand Island Mall Eighth Subdivision
and a part of Lot Two (2), Grand Island Mall Fifteenth Subdivision, all in the City of
Grand Island, Hall County, Nebraska, and more particularly described as follows:
Beginning at the northwest corner of said Lot Ten (10); thence running easterly on the
north line of said Lots Ten (10), on an Assumed Bearing of N8947’33”E, a distance of
Two Hundred Thirty Five (235.00) feet, to the Actual Point of Beginning; thence
continuing N8947’33”E, on the north line of said Lot Ten (10) and said Lot Two (2), a
distance of Two Hundred Fifty Three and Fifty Hundredths (253.50) feet; thence running
S0012’27”E, a distance of Two Hundred Six (206.00) feet; thence running
S8947’33”W, a distance of Two Hundred Fifty Three and Fifty Hundredths (253.50)
feet; thence running N0012’27”W, a distance of Two Hundred Six (206.00) feet, to the
Actual Point Of Beginning and containing 1.672 acres more or less. Net 14.756 acres
more or less.
Authorized work within the Enhanced Employment Area means the performance of
any one or more of the following purposes:
(a) The acquisition, construction, maintenance, and operation of public offstreet parking
facilities for the benefit of the Enhanced Employment Area;
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(b) Improvement of any public place or facility in the Enhanced Employment Area,
including landscaping, physical improvements for decoration or security purposes, and
plantings;
(c) Construction or installation of pedestrian shopping malls or plazas, sidewalks or
moving sidewalks, parks, meeting and display facilities, bus stop shelters, lighting,
benches or other seating furniture, sculptures, trash receptacles, shelters, fountains,
skywalks, and pedestrian and vehicular overpasses and underpasses, and any useful or
necessary public improvements;
(d) Leasing, acquiring, constructing, reconstructing, extending, maintaining, or repairing
parking lots or parking garages, both above and below ground, or other facilities for the
parking of vehicles, including the power to install such facilities in public areas, whether
such areas are owned in fee or by easement, in the Enhanced Employment Area;
(e) Creation and implementation of a plan for improving the general architectural design
of public areas in the Enhanced Employment Area;
(f) The development of any public activities and promotion of public events, including
the management, promotion, and advocacy of retail trade activities or other promotional
activities, in the Enhanced Employment Area;
(g) Maintenance, repair, and reconstruction of any improvements or facilities authorized
by the Community Development Law;
(h) Any other project or undertaking for the betterment of the public facilities in the
Enhanced Employment Area, whether the project is capital or noncapital in nature;
(i) Enforcement of parking regulations and the provision of security within the Enhanced
Employment Area; or
(j) Employing or contracting for personnel, including administrators for any improvement
program under the Community Development Law, and providing for any service as may
be necessary or proper to carry out the purposes of the Community Development Law.
Redevelopment Plan Amendment related to the Enhanced Employment Area
Complies with the Act:
The Act requires that in connection with the approval of any redevelopment plan which
includes the designation of an enhanced employment area, the governing body may
approve the redevelopment plan if it determines that any new investment within such
enhanced employment area will result in at least fifteen new employees and new
investment of one million dollars in counties with at least fifty thousand inhabitants but
fewer than one hundred thousand inhabitants.
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This Plan Amendment meets these enhanced employment area statutory qualifications
because (a) at project stabilization employment in the Enhanced Employment Area is
expected to increase by 275 employees including a mixture of part time, full time and
managerial positions, (b) the project in the Enhanced Employment Area includes new
private sector investment of $14,370,247, and (c) as of the 2010 census, Hall County’s
population comprised 58,607 inhabitants.
Levy of General Business Occupation Tax and Levy:
A city may levy a general business occupation tax upon the businesses and users of space
within an enhanced employment area for the purpose of paying all or any part of the costs
and expenses of any redevelopment project within such enhanced employment area. Any
occupation tax imposed pursuant to the Act shall make a reasonable classification of
businesses, users of space, or kinds of transactions for purposes of imposing such tax.
The businesses and their classification in the Enhanced Employment Area are as follows:
BUSINESS CLASSIFICATION
1 .Apparel Clothing Retail 20,008sf
2. Hobby & Crafts Hobby & Craft Retail 14,040sf
3. Shoes Shoe Retail 8,960sf
4. Apparel Clothing Retail 6,420sf
5. Cosmetics Beauty Retail 5,777sf
6. Quick Serve Prepared Food Retail 3,424sf
7. Specialty Store Specialty Retail 3,210sf
8. Salon Service Retail 1,605sf
9.. Apparel Clothing Retail 6,060sf
10. Specialty Store Specialty Retail 3,232sf
11. Quick Serve Prepared Food Retail 3,030sf
12. Salon Service Retail 1,515sf
13.
14. Restaurant Prepared Food Retail Outlot A
15. Service/Fitness Service Retail Outlot B
16. Fast Food Prepared Food Retail Outlot C
No occupation tax shall be imposed on any business or transaction which is subject to tax
under section 53-160, 66-489, 66-489.02, 66-4,140, 66-4,145, 66-4,146, 77-2602, or 77-
4008 of the Act or which is exempt from tax under section 77-2704.24 of the Act. Any
such occupation tax agreed to by the Authority and the City shall remain in effect so long
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as the Authority has bonds outstanding which have been issued stating such occupation
tax as an available source for payment.
The collection of a tax imposed pursuant to the Act shall be made and enforced in such a
manner as the governing body shall by ordinance determine to produce the required
revenue. The governing body may provide that failure to pay the tax imposed pursuant to
this section shall constitute a violation of the ordinance and subject the violator to a fine
or other punishment as provided by ordinance.
Grand Island Special Meeting - 9/22/2014 Page 36 / 38
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO 183
A RESOLUTION FORWARDING A PROPOSED REDEVELOPMENT PLAN
AMENDMENT OF THE CITY OF GRAND ISLAND, NEBRASKA TO THE
HALL COUNTY REGIONAL PLANNING COMMISSION, ACTING AS THE
PLANNING COMMISSION OF THE CITY OF GRAND ISLAND, NEBRASKA
FOR REVIEW AND RECOMMENDATION PURSUANT TO THE COMMUNITY
DEVELOPMENT LAW
WHEREAS, the Mayor and City Council of the City of Grand Island, Nebraska (the “City”),
upon the recommendation of the Planning Commission of the City of Grand Island, Nebraska (the
“Planning Commission”), and in compliance with all public notice requirements imposed by the
Community Development Law, Chapter 18, Article 21, Reissue Revised Statutes of Nebraska, as
amended (the “Act”), duly declared the redevelopment area legally described in the Redevelopment Plan
Amendment, set forth hereafter to be blighted and substandard and in need of redevelopment; and
WHEREAS, pursuant to and in furtherance of the Act, a Redevelopment Plan Amendment (the
“Redevelopment Plan”), has been prepared by the Authority in the form attached hereto as Exhibit A,
for the purpose of redeveloping the Blighted and Substandard Area and includes a provision to divide
certain ad valorem taxes as provided in Section 18-2147 of the Act on that portion of the Blighted and
Substandard Area legally described in Exhibit A to assist in the redevelopment thereof; and
WHEREAS, pursuant to the §18-2112 of the Act the Authority is required to submit the
Redevelopment Plan to the Planning Commission of the City for its review and recommendation as to the
Redevelopment Plans conformity to the general plan for development of the City as a whole;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA AS FOLLOWS:
Section 1. The Authority hereby submits the Redevelopment Plan in the form attached hereto as
Exhibit A to the Hall County Regional Planning Commission, acting as the Planning Commission of the
City for its review and recommendation as to the Redevelopment Plans conformity to the general plan for
development of the City as a whole.
.
PASSED AND APPROVED this 22nd day of September, 2014.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, HALL COUNTY, NEBRASKA
ATTEST:By: ___________________________________
Chairman
By: ___________________________________
Secretary
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EXHIBIT A
FORM OF REDEVELOPMENT PLAN
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