05-13-2015 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, May 13, 2015
Regular Meeting Packet
Board Members:
Tom Gdowski
Glen Murray
Sue Pirnie
Barry Sandstrom
Glenn Wilson
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, May 13, 2015
Regular Meeting
Item A1
Agenda
Staff Contact: Chad Nabity
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AGENDA
Wednesday, May 13, 2015
4:00 p.m.
Grand Island City Hall
Open Meetings Notifications
1.Call to Order.Barry Sandstrom
This is a public meeting subject to the open meetings laws of the State of
Nebraska. The requirements for an open meeting are posted on the wall in
this room and anyone that wants to find out what those are is welcome to read
through them.
2.Approval of Minutes of April 8, 2015 Meeting.
3.Approval of Financial Reports.
4.Approval of Bills.
5.Review of Committed Projects and CRA Properties.
6.Consideration of Fire and Life Safety Grant application for 210 N Walnut
Street.
7.Consideration of a Resolution to forward a Redevelopment Plan Amendment
to the Hall County Regional Planning Commission for T & S Land
Development, LLC, 312 W 3rd St., Grand Island, NE.
8.Consideration of a Resolution of intent to enter into a Site Specific
Redevelopment Contract & Approval of related actions 30 day notice to City
Council for T & S Land Development, LLC, 312 W 3rd St., Grand Island, NE.
9.Approve Resolution or Resolutions to Purchase/Sell Real Estate.
10.Directors Report.
11.Adjournment
Next Meeting June 10, 2015
The CRA may go into closed session for any agenda item as allowed by state law.
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Community Redevelopment
Authority (CRA)
Wednesday, May 13, 2015
Regular Meeting
Item B1
Meeting Minutes
Staff Contact: Chad Nabity
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OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
April 8, 2015
Pursuant to due call and notice thereof, a Regular Meeting of the Community
Redevelopment Authority of the City of Grand Island, Nebraska was conducted
on April 8, 2015 at City Hall 100 E First Street. Notice of the meeting was given
in the April 1, 2015 Grand Island Independent.
1.CALL TO ORDER. Vice Chairman Tom Gdowski called the meeting to
order at 4:00 p.m. The following members were present: Sue Pirnie, Glen
Murray, and Glenn Wilson. Also present were; Director, Chad Nabity;
Planning Secretary, Rose Rhoads; City Administrator, Marlan Ferguson;
Sr. Accountant, Billy Clingman, Todd Enck, and Joel Riggs.
Gdowski stated this was a public meeting subject to the open meeting laws
of the State of Nebraska. He noted that the requirements for an open
meeting were posted on the wall easily accessible to anyone who would
like to read through them.
2.APPROVAL OF MINUTES. A motion for approval of Minutes for the
March 18, 2015 meeting was made by Murray and seconded by Wilson.
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 March 1, 2015 through March 31, 2015. Motion
was made by Wilson 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. A motion was made by
Pirnie and seconded by Murray to approve the bills in the amount of
$3805.79. Upon roll call vote all present voted aye. Motion carried
unanimously to approve the payment of bills totaling $3805.79.
5.REVIEW OF COMMITTED PROJECTS & CRA PROPERTY.
Nabity reviewed the Committed Projects. J. Elizabeth LLC is moving
forward with their façade. Ryan Waind should be nearing completion this
summer. Todd Enck stated Waind is also going to update the parking lot.
Downtown Kaufman-Cummings Plaza is delayed due to the Utility work on
3rd Street. Tower 217 has just signed a new tenant to their first floor.
6.CONSIDERATION OF RESOLUTION 191.
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T.C. Enck Builders, Inc., (the “Developer”) has proposed to redevelop an
area within the city limits of the City of Grand Island at 1616 S Eddy. The
CRA passed resolution 189 notifying City Council of their intent to enter
into a redevelopment contract at their meeting on February 11, 2015. The
Hall County Regional Planning Commission met on March 4, 2015, and
passed Resolution 2015-03 finding that this plan amendment is consistent
with the comprehensive development plan for the City of Grand Island. The
Grand Island City Council passed Resolution 2014-84 at their meeting on
March 24, 2015. A motion to approve Resolution 191 was made by Pirnie
and seconded by Wilson. Upon roll call all present voted aye. Motion
carried.
7. CONSIDERATION OF RESOLUTION 192.
Pridon LLC, (the “Developer”) has proposed to redevelop an area within
the city limits of the City of Grand Island at 2422 N Wheeler Ave. The CRA
passed resolution 160 notifying City Council of their intent to enter into a
redevelopment contract at their meeting on May 29th, 2013. The Hall
County Regional Planning Commission met on June 6, 2013, and passed
Resolution 2015-05 finding that this plan amendment is consistent with the
comprehensive development plan for the City of Grand Island. The Grand
Island City Council passed Resolution 2013-209 at their meeting on June
25, 2013. A motion to approve Resolution 192 was made by Murray and
seconded by Wilson. Upon roll call all present voted aye. Motion carried.
8. CONSIDERATION OF RESOLUTION 193.
Super Market Developers, Inc., (the “Developer”) has proposed to
redevelop an area within the city limits of the City of Grand Island at 620 W
State Street. The CRA passed resolution 179 notifying City Council of their
intent to enter into a redevelopment contract at their meeting on July 9,
2014. The Hall County Regional Planning Commission met on August 6,
2014, and passed Resolution 2014-08 finding that this plan amendment is
consistent with the comprehensive development plan for the City of Grand
Island. The Grand Island City Council passed Resolution 2014-253 at their
meeting on August 26, 2014. A motion to approve Resolution 193 was
made by Pirnie and seconded by Murray. Upon roll call all present voted
aye. Motion carried.
10. DISSCUSSION CONCERNING PURCHASE/SALE OF REAL ESTATE
None
11. APPROVE RESOLUTION OR RESOLUTIONS TO PURCHASE TO
PRUCHASE/SELL REAL ESTATE. A motion was made by Wilson and
seconded by Pirnie to enter into executive session at 4:20 pm. Upon roll call
all present voted aye. Motion carried. A motion was made by Pirnie to
leave executive session and seconded by Murray at 4:27 p.m. Upon roll call
all present voted aye.
Grand Island Regular Meeting - 5/13/2015 Page 7 / 56
12.DIRECTORS REPORT.
13.ADJOURNMENT. Gdowski adjourned the meeting at 4:37 p.m.
The next meeting is scheduled for May 13, 2015.
Respectfully submitted
Chad Nabity
Director
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Community Redevelopment
Authority (CRA)
Wednesday, May 13, 2015
Regular Meeting
Item C1
Financial Reports
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, May 13, 2015
Regular Meeting
Item D1
Bills
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 5/13/2015 Page 17 / 56
13-May-15
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 $ 3,380.03
Accounting
Officenet Inc.
Postage $ 95.22
Lawnscape $ 70.00
Grand Island Independent
TIF Bond Payments Interest $ 11,306.25
TIF Pass Thrus
Mayer, Burns, Koenig & Janulewicz Legal Services
Total:
$ 14,851.50
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Community Redevelopment
Authority (CRA)
Wednesday, May 13, 2015
Regular Meeting
Item E1
Committed Projects
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 5/13/2015 Page 19 / 56
COMMITTED PROJECTS TOTAL AMOUNT 2015 FISCAL YR 2016 FISCAL YR 2017 FISCAL
YR
ESTIMATED
COMP
J Elizabeth LLC $ 69,440.00 $ 69,440.00 2015
2222 W 2nd St - Ryan Waind $ 92,608.00 $ 92,608.00 2015
Downtown Kaufman -
Cummings Plaza
$ 50,000 $ 50,000.00 2015
Tower 217 (Amos Investment
& Development)
$ 291,581.00 $ 99,482.00 $ 99,482.00 2017
$ -
Total Committed $ 503,629.00 $ 311,530.00 $ 99,482.00 $ -
Façade Budget $ Remaining $ 200,000.00
Other Projects $ 207,371.00
Land - Budget $ Remaining $ 200,000.00
Land Sales ($100,000.00)
subtotal $ 507,371.00
Less committed ($311,530.00)
Balance remaining $ 195,841.00
CRA PROPERTIES
Address Purchase Price Purchase Date Demo Cost Status
408 E 2 nd St $4,869 11/11/2005 $7,500 Surplus
3235 S Locust $450,000 4/2/2010 $39,764 Surplus
April 30, 2015
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Community Redevelopment
Authority (CRA)
Wednesday, May 13, 2015
Regular Meeting
Item G1
Fire & Life Safety Grant
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, May 13, 2015
Regular Meeting
Item H1
TIF Application
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 5/13/2015 Page 37 / 56
BACKGROUND INFORMATION RELATIVE TO
TAX INCREMENT FINANCING REQUEST
Project Redeveloper Information
Business Name:
T & S Land Development LLC.
P.O. Box 2122
Grand Island, NE 68802
Telephone No.: 308-398-8501 Fax No.: 308-398-9501 Cell 308-380-0577
Contact:
Tom Pirnie
Brief Description of Applicant’s Business:
T & S Land Development LLC is owned by J Thomas (Tom) and Susan D Pirnie.
Tom & Sue also have the controlling interest in GIX Logistics Inc. GIX Logistics
is a brokerage company that arranges for truck transportation services for their
customers.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
______________________________________
Present Ownership Proposed Project Site:
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T & S Land Development LLC purchased the property December 1, 2014
Proposed Project: Building square footage, size of property, description of
buildings – materials, etc. Please attach site plan, if
available.
If the application is approved we intend to remodel the second floor to allow for
expansion of the brokerage business. The building has 8,712 sq ft on each floor.
If Property is to be Subdivided, Show Division Planned:
VI.Estimated Project Costs:
Acquisition Costs:
A. Land $ NA_
B. Building $ 307,500
Construction Costs:
A. Renovation or Building Costs:$770,500
B. On-Site Improvements:$ NA
Soft Costs:
A. Architectural & Engineering Fees:$73,000
B. Financing Fees: $ unknown
C. Legal/Developer/Audit Fees:$NA
D. Contingency Reserves:$unknown
E. Other (Please Specify)$
TOTAL $ 73,000
Total Estimated Market Value at Completion:$ 1,306,953
Source of Financing:
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A. Developer Equity:$
B. Commercial Bank Loan:$ 525,000
Tax Credits:
1. N.I.F.A.$
2. Historic Tax Credits $
D. Industrial Revenue Bonds:$
E. Tax Increment Assistance:$ 272,788
F. Other $
Name, Address, Phone & Fax Numbers of Architect, Engineer and General Contractor:
CANNON MOSS BRYGGER ARCHITECTS
208 N PINE STREET SUITE 301
GRAND ISLAND, NE 68801
PROJECT WILL BE PUT OUT FOR BID IF APPROVED
Estimated Real Estate Taxes on Project Site Upon Completion of Project:
(Please Show Calculations)
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
______________________________________________________
Project Construction Schedule:
Construction Start Date: OCT 2015
Construction Completion Date: July 2016
If Phased Project:
_______________________ Year _______________________ %
Complete
_______________________ Year _______________________ %
Complete
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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:
Successful completion of the remodeling of this building will allow GIX Logistics
to continue its aggressive growth plans and stay in this location with the eventual
goal of employing over 100 employees at this site.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
_____________________________________________
Statement Identifying Financial Gap and Necessity for use of Tax Increment Financing
for Proposed Project: TIF financing will make this site the best location for our
future growth plans. I think the good paying jobs that come with our growth will
be a big gain for Grand Island and more specifically downtown Grand Island.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________
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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:
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
________________________
IV.Please Attach Applicant’s Corporate/Business Annual Financial Statements for
the Last Three Years.
Post Office Box 1968
Grand Island, Nebraska 68802-1968
Phone: 308 385-5240
Fax: 308 385-5423
Email: cnabity@grand-island.com
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Redevelopment Plan Amendment
Grand Island CRA Area #1
May 2015
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 REDEVELOPMENT OF THE KUAFMAN BUILDING LOCATED AT 308-312
W. 3RD STREET FOR OFFICE USES ON THE FIRST AND SECOND FLOORS
INCLUDING FIRE/LIFE SAFETY IMPROVEMENTS AND BUILDING
REHABILITATION AND REMODELING.
The use of Tax Increment Financing to aid in rehabilitation expenses associated with
redevelopment of the Kaufman Building into office space for more than 100 employees
for GIX Logistics. The use of Tax Increment Finance is an integral part of the
development plan and necessary to make this project affordable. The project will result
in renovated commercial office space and an increased number of downtown employees
at an existing Grand Island company. This project would not be possible without the use
of TIF.
T & S Land Development LLC is the owner of the property. They purchased this
property in December of 2014. The purchase price is not included as an eligible TIF
activity. The first floor of the building is currently occupied by GIX Logistics and JEO
Consulting. The second floor of the building is currently vacant. The developer is
responsible for and has provided evidence that they can secure adequate debt financing to
cover the costs associated with the 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, 2017 towards the allowable costs
and associated financing for the acquisition and site work.
TAX INCREMENT FINANCING TO PAY FOR THE REHABILITATION OF THE
PROPERTY WILL COME FROM THE FOLLOWING REAL PROPERTY:
Property Description (the “Redevelopment Project Area”)
308-312 W 3rd Street in Grand Island Nebraska Kaufman Building
Legal Descriptions: Lot 7, Block 57, Original Town of Grand Island, Hall County,
Nebraska.
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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 2017 through 2031 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 this the
vacant portions of this historic building for commercial office space as permitted in
the B3 Heavy Business Zoning District.
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, 2017.
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 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.
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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 the building for permitted uses on this property as defined by
the current and effective zoning regulations.
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 Downtown Commercial development;
this includes housing and commercial uses within the same structure. 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
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d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned B3-Heavy Business 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 rehabilitating the existing building. The developer is not proposing to
increase the size of the building and current building meets the applicable regulations
regarding site coverage and intensity of use. [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. No new services are
anticipated with this development.
Electric utilities are sufficient for the proposed use of this building.
No other utilities would be impacted by the development.
The developer will be responsible for replacing any sidewalks damaged during
construction of the project.
No other utilities would be impacted by the development. [§18-2103(b) and §18-2111]
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 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] Sue Pirnie is a member of
the Authority and has disclosed this appropriately. As such she will not take part in any
discussions or decisions regarding this application.
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 owns this property and acquisition is not part of the request for tax
increment financing. The estimated cost of rehabilitation of this property is $770,500.
Planning related expenses for Architectural and Engineering services of $73,000 and are
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included as a TIF eligible expense. Legal, Developer and Audit Fees including a
reimbursement to the City and the CRA of $6,600 are included as TIF eligible expense.
The total of eligible expenses for this project is $850,600.
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 $272,788 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, 2017 through December
2032.
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. This
will have the intended result of preventing recurring elements of unsafe buildings and
blighting conditions.
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8. Time Frame for Development
Development of this project is anticipated to be completed between September 2015 and
December of 2016. Excess valuation should be available for this project for 15 years
beginning with the 2017 tax year.
9. Justification of Project
This is an historic building in downtown Grand Island that will be preserved with this
project. This project will provide more base employment within the downtown.
Additional downtown employees will support additional housing and retail services in the
downtown 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 $273,000 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
$886,000 in private sector financing; a private investment of $3.25 for every TIF dollar
investment.1
Use of Funds.
Description TIF Funds Private Funds Total
Site Acquisition $307,500 $307,500
Site preparation
Legal and Plan*$81,000 $81,000
Building Costs
Renovation $272,788 $497,212 $770,000
Personal Property
Soft Costs
TOTALS $272,788 $885,712 $1,158,500
Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2016,
valuation of approximately $310,720. Based on the 2013 levy this would result in a real
property tax of approximately $6,840. It is anticipated that the assessed value will
increase by $826,121 upon full completion, as a result of the site redevelopment. This
development will result in an estimated tax increase of over $18,186 annually. The tax
1 This does not include any investment in personal property at this time.
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increment gained from this Redevelopment Project Area would not be available for use
as city general tax revenues, for a period of 15 years, or such shorter time as may be
required to amortize the TIF bond, but would be used for eligible private redevelopment
costs to enable this project to be realized.
Estimated 2016 assessed value:$ 310,720
Estimated value after completion $ 1,136,841
Increment value $ 826,121
Annual TIF generated (estimated)$ 18,186
TIF bond issue $ 272,788
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $310,720.
The proposed redevelopment will create additional valuation of $826,121. 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 negatively impacted
by this development. The addition of life safety elements to this building including fire
sprinklers and a second exit actually reduce the chances of negative impacts to the fire
department.
(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 in any manner
different from any other expanding business within the Grand Island area. The Grand
Island labor market is tight but this will create additional full time jobs in the regions.
This will allow a local company to expand in our community.
Grand Island Regular Meeting - 5/13/2015 Page 51 / 56
(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 number of available positions within the city and
strength and expand a locally owned company. This will also result in a larger employee
base located in the Grand Island Downtown.
Time Frame for Development
Development of this project is anticipated to be completed during between August of
2015 and December 31 of 2016. The base tax year should be calculated on the value of
the property as of January 1, 2016. Excess valuation should be available for this project
for 15 years beginning in 2017 with taxes due in 2018. 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 $272,788 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 rehabilitation the developer will
spend at least $770,000 on TIF eligible activities. The CRA will reserve the right to issue
additional debt for this project upon notification by the developer of sufficient expenses
and valuation to support such debt in the form of a second or third bond issuance.
Grand Island Regular Meeting - 5/13/2015 Page 52 / 56
312 W 3rd
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 194
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 ___________, 2015.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By___________________________
Chairperson
ATTEST:
__________________________
Secretary
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312 W 3rd
EXHIBIT 1
REDEVELOPMENT PLAN AMENDMENT
Grand Island Regular Meeting - 5/13/2015 Page 54 / 56
312 W 3rd St
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 195
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 T & S Land Development, 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 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 __________, 2015.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By ___________________________
Chairperson
ATTEST:
___________________
Secretary
Grand Island Regular Meeting - 5/13/2015 Page 55 / 56
312 W 3rd St
Exhibit 1
Attach a copy of the Redevelopment Contract
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