08-19-2015 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, August 19, 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, August 19, 2015
Regular Meeting
Item A1
Agenda
Staff Contact: Chad Nabity
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AGENDA
Wednesday, August 12, 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 July 29, 2015 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 Bosselman Real Estate,
LLC, 1607 S Locust St., Grand Island, NE.
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 Bosselman Real Estate, LLC, 1607 S Locust St., Grand Island, NE.
8.Review Request for Development Proposals for 604-612 W 3rd.
9.Approve Resolution to Purchase/Sell Real Estate.
10.Directors Report.
11.Adjournment
Next Meeting September 9, 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, August 19, 2015
Regular Meeting
Item B1
Meeting Minutes
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 8/19/2015 Page 5 / 62
OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
July 29, 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 July 29, 2015 at City Hall 100 E First Street. Notice of the meeting was given
in the July 22, 2015 Grand Island Independent.
1.CALL TO ORDER. Chairman Sanstrom called the meeting to order at 7:45
a.m. The following members were present: Tom Gdowski, Sue Pirnie, Glen
Murray, and Glenn Wilson. Also present were; Director, Chad Nabity;
Planning Secretary, Rose Rhoads; Sr. Accountant, Billy Clingman.
Sandstrom stated this was a public meeting subject to the open meeting
laws of the State of Nebraska. He noted that the requirements for an open
meeting were posted on the wall easily accessible to anyone who would
like to read through them.
2.APPROVAL OF MINUTES. A motion for approval of Minutes for the July
8, 2015 meeting was made by Wilson and seconded by Pirnie. Upon roll
call vote all present voted aye. Motion carried unanimously.
3.BUDGET. Approval of budget for the 2015-2016 fiscal year. Nabity
reviewed the 2015-2016 CRA budget. Followed by some discussion. A
motion was made by Prinie and seconded by Murray to approve the CRA
2015-2016 budget resolution 200 as presented. Upon roll call vote all
present voted aye. Motion carried unanimously.
4.DIRECTORS REPORT. Nabity reviewed some upcoming projects that will
be brought forward at the August and September CRA meetings.
5.ADJOURNMENT. Sandstrom adjourned the meeting at 8:05 a.m.
The next meeting is scheduled for August 12, 2015.
Respectfully submitted
Chad Nabity
Director
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Community Redevelopment
Authority (CRA)
Wednesday, August 19, 2015
Regular Meeting
Item C1
Financial Reports
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, August 19, 2015
Regular Meeting
Item D1
Bills
Staff Contact: Chad Nabity
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12-Aug-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 $ 3,362.67
Accounting
Officenet Inc.
Postage $ 18.87
Lawnscape 408 E 2nd St $ 70.00
Grand Island Independent $ 35.27
Downtown GI BID Kaufmann Plaza Grant $ 50,000.00
TIF Bond Payments
TIF Pass Thrus
Mayer, Burns, Koenig & Janulewicz Legal Services $ 105.00
Total:
$ 53,591.81
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Community Redevelopment
Authority (CRA)
Wednesday, August 19, 2015
Regular Meeting
Item E1
Committed Projects
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 8/19/2015 Page 18 / 62
COMMITTED PROJECTS TOTAL AMOUNT 2015 FISCAL YR 2016 FISCAL YR 2017 FISCAL
YR
ESTIMATED
COMP
Gene McCloud - 2603 S
Locust
$94,490.00 $94,490.00 2016
Federation of Labor - Ziller $ 60,000.00 $ 60,000.00
2016
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 $ 658,119.00 $ 311,530.00 $ 253,972.00 $ -
FIRE & LIFE SAFETY GRANT TOTAL AMOUNT 2015 FISCAL YR 2016 FISCAL YR 2017 FISCAL
YR
ESTIMATED
COMP
Federation of Labor - Tom
Ziller
$115,000 $ 115,000.00 2016
Total Commited F&L Safety
Grant
$115,000 $ 115,000.00
Life Safety Budget $
Remaining
$ 200,000.00
Façade Budget $ Remaining $ 200,000.00
Other Projects $ 207,371.00
Land - Budget $ Remaining $ 119,984.95
Land Sales
($100,000.00)
subtotal $ 627,355.95
Less committed ($311,530.00)
Balance remaining $315,825.95
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
604-612 W 3rd $80,000 6/10/2015 Surplus
July 31, 2015
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Community Redevelopment
Authority (CRA)
Wednesday, August 19, 2015
Regular Meeting
Item H1
Tif Application
Staff Contact: Chad Nabity
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1607 S Locust St
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 201
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
Grand Island Regular Meeting - 8/19/2015 Page 42 / 62
1607 S Locust St
EXHIBIT 1
REDEVELOPMENT PLAN AMENDMENT
Grand Island Regular Meeting - 8/19/2015 Page 43 / 62
1607 S Locust St
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 202
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 Bosselman Real Estate 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 __________, 2015.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By ___________________________
Chairperson
ATTEST:
___________________
Secretary
Grand Island Regular Meeting - 8/19/2015 Page 44 / 62
1607 S Locust St
Exhibit 1
Attach a copy of the Redevelopment Contract
Grand Island Regular Meeting - 8/19/2015 Page 45 / 62
Redevelopment Plan Amendment
Grand Island CRA Area 2
July 2015
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area 2 within the city, pursuant to
the Nebraska Community Development Law (the “Act”) and provide for the
financing of a specific housing related project in Area 2.
Executive Summary:
Project Description
THE ACQUISITION OF PROPERTY AT 1607 SOUTH LOCUST STREET AND THE
SUBSEQUENT SITE WORK, RENOVATIONS, UTILITY IMPROVEMENTS,
ENGINEERING, LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY
FOR REBUILDING CORPORATE OFFICE FOR BOSSELMAN COMPANIES
ALONG WITH A MOTEL AND SEPARATE PROFESSIONAL OFFICE SPACE AT
THIS LOCATION.
The use of Tax Increment Financing (TIF) to aid in the acquisition of property,
rehabilitation of the existing building, necessary site work and installation of public
utilities and utility connections necessary to develop this site. The use of TIF makes it
feasible to complete the proposed project within the timeline presented. This project
developer has stated that the project will not be completed at this location without the use
of TIF.
The acquisition, rehabilitation, site work and construction of all improvements 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) 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 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 east of Locust Street south of State Fair Boulevard and west of
Fonner Park in south central Grand Island, the attached map identifies the subject
property and the surrounding land uses:
Legal Description Lot 1 of Fonner Fourth Subdivision (It is anticipated
this property will be re-subdivided to accommodate phases 2 and 3 of this proposal.
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The tax increment will be captured for the tax years the payments for which become
delinquent in years 2018 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 the construction of new
commercial space on this property.
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.
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.
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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 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 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 2 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority. The applicant will be acquiring the property from the current owner.
b. Demolition and Removal of Structures:
The project to be implemented with this plan will not require demolition 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 commercial development within this arterial corridor allowing for maximum
exposure. Residential and hotel uses are also permitted in this area [§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 B2-AC General Business zone with an Arterial Commercial Overlay
District. 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 to remodel the existing retail building for a combination of
retail uses, office uses and residential dormitories. In addition there are future phases that
anticipate the development of a 100 room motel at the northwest corner of the site and
additional in-line professional office space along the southern property line. [§18-2103(b)
and §18-2111]
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. Connections for water and
sewer will have to be extended to serve the proposed future development.
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 amendment does not
provide for acquisition of any residences and therefore, no relocation is
contemplated. [§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 is proposing to purchase this property for redevelopment for $1,700,000
provided that TIF is available for the project as defined. The cost of property acquisition
is being included as a TIF eligible expense. Costs for site preparation, utility extensions,
building plans, and renovation of the existing building $6,591,600 and are included as
TIF eligible expenses for phase 1. Phase 2 eligible expenses include sitework/utility
extensions, architecture and legal fees of $315,000. Phase 3 eligible expenses include
architecture and legal fees of $120,000. The total amount of the TIF eligible expenses in
this request is over $8,700,000 It is estimated based on the proposed increased valuation
for Phase 1 of the project of $11,617,706 will result in $3,836,200 of increment generated
over a 15 year period. Phase 2 would generate an increase in value of $8,083,00 with
$1,491,229 generated over a 14 year period. Phase 3 would generate an increase of
$787,000 with $225,230 generated over a 13 year period. A total of $6,552,000 of TIF
would be available to cover $8,726,600 worth of TIF eligible expenses. It is anticipated
that the developer will spend almost $2,175,000 more on eligible expenses than will be
generated by the tax increment.
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 $6,552,000 for the project 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 after January 1, 2018 through December 2032.
c. Statement of feasible method of relocating displaced families.
No families will be displaced as a result of this plan.
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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 the existing building and development of additional
commercial facilities at this location. This lot is surrounded by similar commercial uses.
This will not increase traffic in the area. 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.
8. Time Frame for Development
Development of Phase 1 of this project is anticipated to be completed between January of
2016 and December of 2016. Excess valuation should be available for this project for 15
years beginning with the 2017 tax year. It is anticipated that Phases 2 and 3 will be
completed within 5 years of the beginning of the project depending on market conditions.
9. Justification of Project
The property is located at the entrance to the Fonner Park and the Nebraska State Fair
Grounds. These facilities are enjoyed and visited by hundreds of thousands of people
each year. This commercial property was vacated in May of 2015 and this is an excellent
chance to redevelop the property as the corporate headquarters for a Grand Island based
company that does business all over the United States. The proposed project will be
highly visible and complement the image of both the Community and the Bosselman
Companies. The potential addition of a hotel at this location increases the synergy
between Fonner Park and the Bosselman Conference center and South Locust. This will
provide hotel rooms within close walking distance to these facilities. This project does
not propose to tear down or substantially alter any buildings with historic value.
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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
AWG-Skagway North Redevelopment Project, including:
Project Sources and Uses. Approximately $6,552,000 in public funds from tax
increment financing provided by the Grand Island Community Redevelopment Authority
will be required to complete the project. This project has $8,726,600 worth of TIF
eligible expenses. The developer will be responsible for funding the additional
$2,174,600 as private investment. The total private investment on this project is the total
of the costs not eligible for TIF $11,215,000 plus the $2,174,600 of TIF eligible costs that
will not be covered by the Tax Increment for a total private investment of $13,389,600.
This $6,552,000 investment by the Authority and the people of Grand Island will
leverage $13,389,600 in private sector financing; a private investment of $2.04 for every
TIF dollar investment.
Use of Funds. Phase 1
Description Eligible for TIF Funds Private Funds Total
Site Acquisition $1,700,000 $1,700,000
Utilities/On Site
Improvements
$500,000 $500,000
Legal Private $5,000 $5,000
Legal CRA Cost1 $35,000 $35,000
Fees1 $1,600 $1,600
Architecture $60,000 $60,000
Building
Rehabilitation Costs
$6,000,000 $6,000,000
Soft Costs $215,000 $215,000
Personal Property $750,000 $750,000
TOTALS $8,301,600 $965,000 $9,266,600
1 Not included on application but shown as an eligible expense to be paid by the developer.
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Use of Funds. Phase 2
Description Eligible for TIF Funds Private Funds Total
Site Acquisition $0 $0
Utilities/On Site
Improvements
$0 $0
Legal Private $5,000 $$5,000
Fees $$
Architecture $60,000 $$60,000
Building Costs $9,000,000 $9,000,000
Soft Costs $205,000 $205,000
Personal Property $$
TOTALS $315,000 $9,215,000 $9,530,000
Use of Funds. Phase 3
Description Eligible for TIF Funds Private Funds Total
Site Acquisition 0 0
Utilities/On Site
Improvements
$100,000 $100,000
Legal Private $5,000 $5,000
Fees $0 $0
Architecture $15,000 $15,000
Building Costs $1,000,000 $1,000,000
Soft Costs $30,000 $30,000
Personal Property $$
TOTALS $120,000 $1,030,000 $1,150,000
Tax Revenue. The property to be redeveloped is has a January 1, 2015, valuation of
approximately $2,290,814. Based on the 2014 levy this would result in a real property tax of
approximately $50,292. It is anticipated that the assessed value will increase by almost
$20,500,000 upon full completion, as a result of the site redevelopment. This development will
result in an estimated tax increase of over $451,000 annually resulting in $6,552,000 of increment
over the 15 year period. The tax increment gained from this Redevelopment Project Area would
not be available for use as city general tax revenues, for a period of 15 years, or such shorter time
as may be required to amortize the TIF bond, but would be used for eligible private
redevelopment costs to enable this project to be realized.
Estimated 2014 assessed value:$ 2,290,814
Estimated value after completion $ 22,778,988
Increment value $ 20,488,175
Annual TIF generated (estimated)$ 451,017
TIF bond issue $ 6,552,000
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(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $2,290,814.
The proposed redevelopment and commercial construction at this location will result in
an additional $20,488,175 of taxable valuation based on valuations of similar properties.
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. The project will not add
any tax burdens to taxing entities. Therefore no tax shifts will occur.
(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;
This project will not negatively impact employers or employees in the area directly.
Bosselman Companies will be able to continue employing people within the City of
Grand Island.
(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
No impacts are anticipated outside of the city or immediate area to total employment
from this project other than the incremental increase due to the construction.
(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 utilize a piece of property in the Grand Island City Limits that is at the
entrance to the Fonner Park and the Nebraska State Fair grounds. This property has been
the home of Skagway South for more than 20 years. Skagway closed this past May
leaving the building mostly vacant. This project will change this entrance in to the
fairgrounds in a positive way, rehabilitate and reutilize the existing building and provide
hotel rooms within walking distance of the fairgrounds.
Time Frame for Development
Development of this project is anticipated to be completed during between October 2015
and December of 2018, depending on the market demand for the buildings in phases 2
Grand Island Regular Meeting - 8/19/2015 Page 56 / 62
and 3. 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 with
the 2017 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 $6,552,000 the projected amount of the eligible
expenses for this project. Based on the purchase price of the property and estimates of
the expenses of renovation activities and associated engineering fees, the developer will
spend more than $8,700,000 on TIF eligible activities.
See Attached Site Plan
Grand Island Regular Meeting - 8/19/2015 Page 57 / 62
Community Redevelopment
Authority (CRA)
Wednesday, August 19, 2015
Regular Meeting
Item X1
Request for Development Proposals
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 8/19/2015 Page 58 / 62
Request for Development Proposals CRA Property
604 and 612 W 3rd Street Grand Island, NE
The Grand Island Community Redevelopment Authority (CRA) is seeking development
proposals on property located at 604 and 612 W. 3rd Street (former Ron’s Transmission). A legal
description for the property is included in attachment A. This property is located within the
CRA Area 1 in the City of Grand Island. CRA Area 1 has been designated as Blighted and
Substandard by the City of Grand Island and the CRA.
The CRA owns the property. This property has been cleared and is ready for redevelopment.
Public sewer and water as well as electric and gas utilities are available to the property. The
property is zoned B3 Heavy Business Zone. Redevelopment efforts on this property may be
eligible for tax increment financing.
The CRA will consider all proposals for uses consistent with the B3 Heavy Business Zone. This
property is within the Downtown Business Improvement District and the Downtown Parking
District. The CRA is specifically looking for building designs that are complementary in size,
scale and construction materials with other buildings in Downtown Grand Island.
Proposals must include:
Description of intended use of the property,
Site plan for development including building location, and any proposed landscaping and
parking,
Elevation plan showing the proposed building, and
Bid for the property
Proposals will be evaluated based on the completeness of the application using the following
point scale: 25 points for intended use, 20 points for site plan, 20 points for scale of building, 20
points for building materials, and 15 points for bid. Proposals will be evaluated by a committee
consisting of 2 CRA Board Members, the CRA Director, the Downtown BID Director and two
members of the Downtown BID Board. Proposals that do not receive a minimum of 70 points
from the committee will not be forwarded to the CRA for approval. Developers may resubmit
with changes after committee review.
The CRA reserves the right to reject all proposals.
Complete proposals may be submitted at any time and will be reviewed by the CRA upon receipt
and considered for approval at a regularly scheduled CRA Meeting.
Grand Island Regular Meeting - 8/19/2015 Page 59 / 62
Attachment A
Legal Description 604 and 612 W 3rd Street in Grand Island, Nebraska
Lots Seven (7) and Eight (8), Block Sixty (60) Grand Island Original Town, two 66 x 132 foot
lots in the City of Grand Island, Hall County, Nebraska
Grand Island Regular Meeting - 8/19/2015 Page 60 / 62
Grand Island Regular Meeting - 8/19/2015 Page 61 / 62
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604 & 612 W 3rd St.Redevelopment Area
Grand Island Regular Meeting - 8/19/2015 Page 62 / 62