09-09-2015 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, September 9, 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, September 9, 2015
Regular Meeting
Item A1
Agenda
Staff Contact: Chad Nabity
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REGIONAL PLANNING COMMISSION
AGENDA AND NOTICE OF MEETING
Wednesday, September 2, 2015
6:00 p.m.
City Hall Council Chambers — Grand Island
1. Call to Order.
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 who would like to find out what those are
is welcome to read through them.
2. Minutes of August 12, 2015.
3.Request Time to Speak.
4.Public Hearing - Rezone - A request to rezone property from CD
Commercial Development Zone to Amended CD Commercial Development
Zone, located north of State Street and east of US Hwy 281, in Grand Island,
in Hall County, Nebraska. (C-24-2015GI)
5.Public Hearing - Concerning an amendment to the redevelopment plan for
CRA, Area 2, for a Site Specific Redevelopment Plan for 1607 S Locust St., in
Grand Island, Hall County, Nebraska. Resolution No. 2015-06. (C-25-2015GI)
Consent Agenda
6.Final Plat – Park-View 6th Subdivision – located south of Pioneer Blvd and
east of Blaine Street, in the City of Grand Island, in Hall County, consisting of
2 lots and 2.6234 acres.
7.Grand Island Mall Eighteenth Subdivision – located west of Webb Rd in
the City of Grand Island, in Hall County, consisting of 6 lots and 16.43 acres.
8.Next Meeting October 7, 2015
9. Adjourn
PLEASE NOTE: This meeting is open to the public, and a current agenda is
on file at the office of the Regional Planning Commission, located on the
second floor of City Hall in Grand Island, Nebraska.
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Community Redevelopment
Authority (CRA)
Wednesday, September 9, 2015
Regular Meeting
Item B1
Meeting Minutes
Staff Contact: Chad Nabity
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THE REGIONAL PLANNING COMMISSION OF HALL COUNTY, GRAND ISLAND,
WOOD RIVER AND THE VILLAGES OF ALDA, CAIRO, AND DONIPHAN,
NEBRASKA
Minutes
for
August 12, 2015
The meeting of the Regional Planning Commission was held Wednesday, August 12, 2015 in
the Council Chambers - City Hall – Grand Island, Nebraska. Notice of this meeting appeared
in the "Grand Island Independent" July 25, 2015.
Present: Pat O’Neill Carla Maurer
Karen Bredthauer Terry Connick
Les Ruge Greg Robb
Dean Sears
Absent: Richard Heckman, Julie Connelly, Dean Kjar, Mark Haskins, Jerry
Huismann,
Other:
Staff:Chad Nabity, Rose Rhoads
Press:
1.Call to order.
Chairman O’Neill called the meeting to order at 6:00 p.m.
O’Neill stated that this was a public meeting subject to the open meetings laws
of the State of Nebraska. He noted that the requirements for an open meeting
are posted on the wall in the room and easily accessible to anyone who may be
interested in reading them.
2. Minutes of July 1, 2015 meeting.
A motion was made by Bredthauer and seconded by Ruge to approve the
Minutes of the July 1, 2015 meeting.
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The motion carried with 7 members present and 7 voting in favor (O’Neill,
Ruge, Connick, Maurer, Robb, Bredthauer and Sears) and no member
abstaining.
3.Request Time to Speak.
Ray O’Connor 611 Fleetwood Rd, Grand Island, item 4; Ron Depue, 308 N
Locust St., Grand Island, item 4; Keith Marvin, 457 O Street, David City, item
4; Jeff Palik 201 E 2nd St., Grand Island, item 5.
4.Public Hearing – Proposed Blight Study Area 18 – located between Webb Road on
the west, Blaine Street and Custer Avenue on the east, U.S. Highway 30 on the north
and 2nd street on the South. Substandard and Blight Study as prepared by Marvin
Planning Consultants entitled “Grand Island NE, Blighted and Substandard Study Area
18”. This area as defined by the study will be referred to as Community
Redevelopment Authority (CRA) Area 18. The study as prepared and submitted
indicates that this property could be considered substandard and blighted. This only
includes property that is located within the municipal limits of Grand Island. The study
as presented shows that this property meets the criteria to be declared blighted and
substandard of its own accord.
O’Neill opened the Public Hearing.
Nabity reviewed the Blight Study.
The blighted and substandard criteria included more than half of the buildings in the
area being more than 40 years old and in deteriorating condition, a lack of sidewalks,
challenging lot sizes brought out primarily because of the Union Pacific Railroad line
that bisects the study area, a stagnant population, and lots of standing water and
drainage problems.
It was the drainage problems and shallow utilities that the commission really focused
on because they create challenges for any type of redevelopment or new development.
The land is very flat with little to no outlet for storm water.
“There are some complications here that ... if there’s any redevelopment done, it may
take some additional engineering to do, which is another potential reason why this area
could be looked at as being blighted and substandard,” said Keith Marvin of Marvin
Planning Consultants.
Depue said his client has a redevelopment intent, but it can’t be fully determined until a
blighted and substandard designation is made.
Grand Island developer Ray O’Connor, a member of the Grow Grand Island strategic
planning committee, spoke in favor of the blighted and substandard designation.“My
concern is the entrance to the community,” O’Connor told the commission. “I don’t
think we’ve given much consideration to this area.”
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While the city has developed the South Locust Street entrance and made improvements
from the airport and along east Highway 30, little has been done along the west
Highway 30 corridor, he said. “I want our community to look good and this would be
another avenue ... to put together a real plan to enhance the appearance of Highway 30,
old Highway 30, as we come in,” O’Connor said.
Ruge said he believed some type of public intervention was needed to help the
beautification of the Highway 30 area. His motion to support the blighted and
substandard designation passed, but generated a bigger discussion about the impact that
improper drainage has on an area.
Commission Chairman Pat O’Neill has raised questions about a water retention cell
near Nelson Furniture that has no outlet for storm water. Planning Director Chad
Nabity said the furniture store currently owns that water retention cell, but the city will
be taking it over in attempts to resolve more drainage issues in that area.
O’Neill closed the Public Hearing.
A motion was made by Ruge and seconded by Bredthauer to approve the proposed
Blight Study Area 18. The motion carried with 7 members voting in favor (Bredthauer,
Connick, O’Neill, Ruge, Maurer, Robb and Sears) and no member abstaining.
Consent Agenda
5.Preliminary Plat – Wildwood Business Park Subdivision – located north of
Wildwood Drive and west of Blaine Street, in the 2 mile jurisdiction of the City of
Grand Island, in Hall County, Nebraska, consisting of 276.016 acres and (34 Lots).
Final Plat – Wildwood Business Park Subdivision –
located north of Wildwood Drive and west of Blaine
Street, in the 2 mile jurisdiction of the City of Grand
Island, in Hall County, Nebraska, consisting of 30.796
acres and (10 Lots).
6.Final Plat – Bolanos Subdivision – located south of 4th Street and east of Plum Street,
in the City of Grand Island, in Hall County, Nebraska, consisting of 2.831 acres and (2
Lots).
7.Final Plat – Cottonwood Corner Subdivision – located north of White Cloud Rd and
east of 90th Road, in Hall County, Nebraska, consisting of 5.6484 acres and (2 Lots).
8.Final Plat – Codner Subdivision – located north of Rainforth Road and east of Bluff
Center Road, in Hall County, Nebraska, consisting of 4.6013 acres and (1 Lot).
9.Final Plat – C.A.A.P. East Railroad Second Subdivision – located north of Old
Potash Hwy and west of Alda Road, in Hall County, Nebraska, consisting of 4.6234
acres and (1 Lot).
10.Final Plat –Cargill Second Subdivision – located north of 1st Street and east of 150th
in the City of Wood River, in Hall County, Nebraska, consisting of 113.77 acres and (2
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Lots).
A motion was made by Haskins and seconded by Bredthauer to approve the
consent agenda. The motion carried with 10 members present and 10 voting in
favor (O’Neill, Ruge, Maurer, Robb, Kjar, Bredthauer, Huismann, Connick,
Haskins and Sears) and no member abstaining.
11.Next Meeting September 2, 2015
12.Adjourn
Chairman Pat O’Neill adjourned the meeting at 6:42 p.m.
___________________________________________
Leslie Ruge, Secretary
By Rose Rhoads
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Community Redevelopment
Authority (CRA)
Wednesday, September 9, 2015
Regular Meeting
Item C1
Financials
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, September 9, 2015
Regular Meeting
Item D1
Bills
Staff Contact: Chad Nabity
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9-Sep-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
Accounting
Officenet Inc.
Postage $ 31.86
Lawnscape 408 E 2nd St $ 70.00
Grand Island Independent $ 16.01
Waind Properties, LLC 2222 W 2nd St $ 92,608.00
Downtown GI Business Imp Dist 2224 W 3rd $ 10,000.00
J Elizabeth Façade $ 69,400.00
TIF Bond Payments
TIF Pass Thrus
Mayer, Burns, Koenig & Janulewicz Legal Services $ 180.00
Total:
$ 172,305.87
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Community Redevelopment
Authority (CRA)
Wednesday, September 9, 2015
Regular Meeting
Item E1
Committed Projects
Staff Contact: Chad Nabity
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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 BID $ 10,000.00 $ 10,000.00 2015
Tower 217 (Amos Investment
& Development)
$ 291,581.00 $ 99,482.00 $ 99,482.00 2017
$ -
Total Committed $ 618,119.00 $ 271,530.00 $ 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 $ 175,000.00
Land - Budget $ Remaining $ 119,984.95
Land Sales
($100,000.00)
subtotal $ 594,984.95
Less committed $ 271,530.00
Balance remaining $323,454.95
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
August 31, 2015
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Community Redevelopment
Authority (CRA)
Wednesday, September 9, 2015
Regular Meeting
Item F1
2311 S Locust St
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, September 9, 2015
Regular Meeting
Item F2
3021 S Locust St
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, September 9, 2015
Regular Meeting
Item F3
1607 S Locust St
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, September 9, 2015
Regular Meeting
Item F4
116 E 3rd St
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, September 9, 2015
Regular Meeting
Item F5
110-114 E 3rd St
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, September 9, 2015
Regular Meeting
Item F6
1201 S Locust St
Staff Contact: Chad Nabity
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CRA Façade Application – Fonner View Center Page 1 of 4
CRA Façade Improvement Program Application
August 14, 2015
Project Redeveloper Information
I. Applicant Name: Zoul Properties as agent for Three Circle Irrigation, Inc
Address: 404 S. Webb Road
Telephone No.: 308-382-4247
Contact: Zachary Z. Zoul; zacharyzoul@hospitalityadvisorsgroup.com
II. Legal Street Address of Project Site: 1201 South Locust Street. Fonner View Center
III. Zoning of Project Site: B2 – General Business. Arterial Commercial Overlay
IV. Current and Contemplated Use of Project: Fonner View Center –Retail Center
V. Present Ownership of Project Site: Three Circle Irrigation, Inc
VI. Proposed Project: Describe in detail; attach plans and specifications:
The Fonner View Center is located at one of the most prominent and heavily trafficked
areas in Grand Island and one of the primary intersections along the South Locust corridor. It is
adjacent to Fonner Park, the Nebraska State Fair, and the Island Oasis Water Park. As one of the
original remaining commercial structures on South Locust Street, it has long been a mainstay
commercial center with its landmark giant size Steer. The façade is aged, dated, and substandard.
It dates back almost 40 years.
The proposed Façade Improvement Project consists of a complete overhaul of the west and north
exterior elevations of the Center consisting of Two Phases. The “SketchUp” design drawing
shows the completion of both Phases I & II.
Phase I includes removing all the sloped wood roof shingles, replace with metal roof panels and
a metal front fascia with matching gutters. Also the columns will have a cultured stone base and
a “carpenter style” tapered column cover (HardiPanel) up to the underside of the existing
beam. The existing wainscot brick wall will be covered with the same cultured stone. This
Phase I will include raising the roof pediment 12”. This will include adding a stepped and
arched pediment at various locations along the roof edge with a new stucco finish. Some of the
existing large tenant signs will stay in place, like Texas T-Bone restaurant.
Phase II includes a new metal channel with a neon tube to provide color accent at the edge of
the raised roof pediment. The existing wall siding will be changed to the “HardiPanel”
horizontal siding. The existing soffit will be replaced with new “Rollex” aluminum soffit
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CRA Façade Application – Fonner View Center Page 2 of 4
material. These design upgrades will enhance the public façade of the Fonner View Center and
make an over improvement of the South Locust Business Neighborhood.
VII. Estimated Project Costs
Acquisition Costs:
A. Land $ 0
B. Building $ 300,000.00
Construction Costs:
A. Renovation or Building Costs Attributable
to Façade Improvements (attach detail): $ 100,000.00
B. Other Construction Costs: $ 200,000.00
VIII. Source of Financing:
A. Developer Equity $ 210,000.00
B. Commercial Bank Loan: $ 0
C. Historic Tax Credits $ 0
D. Tax Increment Financing $ 0
E. Other (Describe: Façade Improvement Grant) $ 90,000.00
IX. Name and Address of Architect, Engineer and General Contractor:
Architect:
Marvin Webb, AIA
Webb & Company Architects, Inc
387 North Walnut Street
Grand Island, Nebraska 68801
308-381-8013
wcaarch@hamilton.net
General Contractor:
Todd Enck
T.C. Enck Builders
Grand Island, Nebraska
308-380-1041 tenck@tcenck.com
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CRA Façade Application – Fonner View Center Page 3 of 4
X. Project Construction Schedule:
A. Construction Start Date: 10/15/15
B. Construction Completion Date: 12/31/15
Financing Request Information
I. Describe Amount and Purpose for which Façade Improvement Funds are requested:
The Fonner View Center is requesting grant funds in the amount of $100,000 to enable the
designed façade improvements to be undertaken.
II. Statement Identifying Financial Gap and Necessity for use of Façade Improvement
Program for Proposed Project:
The Fonner View Center is one of the oldest and largest retail commercial centers along the
South Locust Street corridor. Due to the age and condition of the building, the Owner has
reinvested significant funds in the Center in recent years including roof repair, HVAC
replacements in most of the units, new floor coverings, wall coverings, electrical upgrades, and
plumbing upgrades. The façade is a product of the original building design and its current
configuration and design dates back to 1980. This is one of the last large scale properties and
buildings along the South Locust Corridor which has not been rehabilitated. The age of the
building has required the Owner to focus on interior infrastructure improvements. This has not
allowed funding for façade improvements.
The appearance and overall condition of the façade gives the Center the appearance of being
substandard and blighted despite housing quality retail spaces. This has made it difficult to
attract two tenants. There are currently two vacant spaces in the Center each consisting of 4,000
square feet. Recent discussions with prospective tenants have resulted in an ability to lease the
spaces assuming an upgrade of the façade. Façade improvements are also integral to retaining
the existing tenants.
The Center has experienced rate and occupancy strains associated with the ongoing migration of
businesses, especially general merchandise and restaurants to the west Grand Island retail
corridor. The improvement of the Center’s façade is viewed as critical to retaining existing
businesses and attracting new tenants to the vacant spaces.
Of all of the buildings along the South Locust Corridor, the Fonner View Center is seen as
having the greatest need to an overhaul. Renovating the façade as proposed with reinvigorate the
Center and give it new life as an attractive and viable retail Center.
III. Application of Grand Funds:
$90,000 Grant to the Redeveloper; or
n/a Interest Rate Buy-down.
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CRA Façade Application – Fonner View Center Page 4 of 4
Fonner View Center Renovation Project
Construction Costs:
Interior units floor coverings $25,000
Interior units wall coverings $15,000
HVAC Replacements $50,000
Exterior Vestibule Construction $10,000
Parking Lot $50,000
Plumbing and Kitchen Renovations $50,000
Façade Improvements – Phase I $100,000
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Community Redevelopment
Authority (CRA)
Wednesday, September 9, 2015
Regular Meeting
Item H1
TIF Contract
Staff Contact: Chad Nabity
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Bosselman Real Estate, LLC
REDEVELOPMENT CONTRACT
THIS REDEVELOPMENT CONTRACT (the “Contract”) is entered into between the
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA, (“Authority”), and BOSSELMAN REAL ESTATE, LLC, a
Nebraska limited liability company and its successors and assigns (“Redeveloper”).
RECITALS
A.The City has undertaken a program for the redevelopment of blighted and
substandard areas in the City of Grand Island, Nebraska. As part of that program the City has
prepared and approved the City of Grand Island Redevelopment Plan Amendment for the Grand
Island CRA Area 2 (“Redevelopment Plan”), a copy of which is on file in the Office of the City
Clerk of the City (“City Clerk”). The Redevelopment Plan has been adopted in compliance with the
Nebraska Community Development Law codified at Neb. Rev. Stat §§18-2101 through 18-2154
(the “Act”).
B.The Redevelopment Plan calls for the Authority to support Redeveloper’s
acquisition and redevelopment efforts on real estate to be acquired by the Redeveloper which is
legally described on Exhibit “A” attached hereto and incorporated herein by this reference
(“Redeveloper Property”).
C.The Redevelopment Project area incorporates all of the Redeveloper Property as
shown on Exhibit “A” attached hereto and incorporated herein by this reference (“Project
Site”).
D.Neb. Rev. Stat. § 18-2103(12) (Reissue 2012) authorizes the
Authority to carry out plans for a program of acquisition, and rehabilitation of
buildings and other improvements in connection with redevelopment of the Project Site and
to pay for the same from TIF Proceeds (as defined herein). The Redeveloper intends to utilize
the TIF Proceeds from the Project Site to pay for the Project Site acquisition, planning,
rehabilitation and other Redevelopment Project Costs.
E.Neb. Rev. Stat. § 18-2107 (Reissue 2012) authorizes the Authority to enter into
contracts with redevelopers of property containing covenants and conditions regarding the use of
such property as the Authority may deem necessary to prevent the recurrence of substandard and
blighted areas.
F.Redeveloper is willing to enter into this Contract and implement a three phase
redevelopment of the Project Site. As part of the first phase, the Redeveloper intends to invest
approximately Nine Million Two Hundred Sixty Six Thousand Dollars ($9,266,000) in the
redevelopment of the Project site which includes. Phase one will result in the acquisition of the
Project Site, planning for redevelopment, utility extension and revision and rehabilitation of
structures in the construction of a multi-function building which will include corporate offices
as generally shown on the Site Plan attached hereto as Exhibit “B” (“Phase 1”). As part of
phase two of the redevelopment the Redeveloper intends to construct a hotel with convention
and meeting room areas with an additional investment of approximately Nine Million Two
Hundred Thirty Thousand Dollars ($9,230,000) (“Phase 2”). As part of phase three of the
redevelopment the Redeveloper intends to construct a commercial office building with an
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Bosselman Real Estate, LLC
additional investment of approximately One Million One Hundred Fifty Thousand Dollars
($1,150,000) (“Phase 3”). The acquisition and construction are sometimes referred to as the
“Private Improvements”.
G.In order to help remove blight and substandard conditions and improve conditions
in an economically underutilized area, the Authority is willing to enter into this Contract and to
utilize TIF Proceeds to fund the partial cost of Project Site acquisition in order to induce the
Redeveloper to undertake the Private Improvements as set forth in Paragraph 13 below
(“Private Improvements”).
H.The Private Improvements on the Project Site comprise the three phase
Redevelopment Project and are collectively known as the “Redevelopment Project
Improvements”. The costs of the Redevelopment Project Improvements are collectively known
as the “Redevelopment Project Costs” and are shown on the Sources and Uses of Funds in Exhibit
“C”, which is attached hereto and incorporated herein by this reference. The Authority and
Redeveloper agree that assistance with the cost of Project Site acquisition, planning and
rehabilitation is deemed essential to the rehabilitation of the Project Site for a multi-unit retail
development and related uses and the Redevelopment Project would not be economically
feasible without it.
I.The Authority is willing to support the above described redevelopment of the
Project Site in accordance with the Redevelopment Project; provided that, Redeveloper is
willing to agree to covenants and conditions regarding compulsory maintenance and upkeep of
the Private Improvements to prevent a recurrence of substandard and blighted conditions.
J.In accordance with §18-2147 of the Act and the terms of the Resolution
approving this Redevelopment Contract and providing for the issuance of the TIF Note
described herein, (the “Resolution”), the Authority hereby provides that any ad valorem tax on
the Project Site for the benefit of any public body be divided for a period of fifteen years after
the effective date of this provision, which shall be January 1, 2017. Said taxes shall be divided
as follows:
That portion of the ad valorem tax which is produced by the levy at
the rate fixed each year by or for each such public body upon the
Redevelopment Project valuation shall be paid into the funds of
each such public body in the same proportion as are all other taxes
collected by or for the body; and
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 be used solely to pay the principal of, the interest on,
and any premiums due in connection with the bonds of, loans,
notes, or advances of money to, or indebtedness incurred by,
whether funded, refunded, assumed, or otherwise, such authority
for financing or refinancing in whole or in part, the Redevelopment
Project. When such bonds, loans, notes, advances of money, or
indebtedness, including interest and premiums due, have been paid,
the authority shall so notify the County Assessor and County
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Treasurer and all ad valorem taxes upon taxable real property in
such Redevelopment Project shall be paid into the funds of the
respective public bodies.
Said provision is hereinafter referred to as the “Ad Valorem Tax Provision.”
K.Neb. Rev. Stat. §18-2107 and §18-2150 (Reissue 2012) authorize the Authority
to contract with private parties in order to accomplish acquisition and redevelopment of the
Project Site in accordance with the Redevelopment Plan. In order to fund said acquisition and
redevelopment of the Project Site, the Authority intends to issue tax increment financing
indebtedness instrument or instruments in taxable series (the “TIF Note/s”) to be repaid with the
tax increment revenues generated under the Ad Valorem Tax Provision (“TIF Tax Revenues”).
L.The Authority and Redeveloper desire to enter into this Contract to implement the
Redevelopment Project for the above purposes and in accordance with the Redevelopment Plan.
M.The Authority and Redeveloper mutually agree that the redevelopment of the
Project Site is in the vital and best interest of the City and is in furtherance of the health, safety,
and welfare of its residents, and is in accordance with the public purposes and provisions of
applicable laws and requirements under which the Redevelopment Plan has been undertaken.
NOW, THEREFORE, in consideration of the above recitals which are hereby made part
of this Contract and of the mutual covenants contained herein the parties do agree as follows:
1.Design Documents. Redeveloper will prepare a preliminary exterior Schematic
Concept Design Plan (hereinafter “Design Documents”) for the Project Site and the same shall be
submitted to and reviewed by the City. Redeveloper shall submit any material changes in the
Design Documents as approved to the City for review and approval.
2.Construction Documents. The Redeveloper shall prepare or cause to be prepared,
at Redeveloper’s expense, detailed final construction plans and specifications for the
Redevelopment Project Improvements on the Project Site (hereinafter “Construction Documents”).
Redeveloper shall submit such Construction Documents for the Private Improvements to the City
for review and approval; provided that review and approval shall be limited to the design and type
of materials to be used for the facade of the Private Improvements and to assure the Private
Improvements meet the City’s design standards. The City shall approve or reject the
Construction Documents for the Private Improvements within ten (10) days after receipt thereof.
3.Construction of Redevelopment Project Improvements; Construction of Private
Improvements. The Redeveloper shall at its own cost and expense, construct the Private
Improvements substantially in conformance with the Design Documents. Redeveloper agrees to
use commercially reasonable efforts to substantially complete construction of the Private
Improvements, as provided for in Paragraph 9 below and to pay in a timely manner
Redeveloper’s contractor, its subcontractors who performed labor or applied materials performed
or used in the prosecution of the Private Improvements as provided for in Paragraph 5 below.
Promptly after completion of the Private Improvements for each phase and promptly after the
Redeveloper provides the Authority the proper documentation that Redeveloper’s subcontractors
who performed labor or applied materials performed or used in the prosecution of such Private
Improvements have been properly paid in accordance with all the provisions of this Contract, the
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Authority shall, upon request by the Redeveloper, furnish a Certificate of Completion for the
applicable phase, the form of which is shown on Exhibit “D”, which is attached hereto and
incorporated herein by this reference (“Certificate of Completion”). Such certification by the
Authority shall be a conclusive determination of satisfaction of the requirements and covenants in
this Contract with respect to the obligations of Redeveloper to construct its Private Improvements
for the applicable phase. Each Certificate of Completion shall be recorded by the Authority in the
office of the Register of Deeds for Hall County, Nebraska. If the Authority shall refuse or fail to
provide the certification in accordance with the provisions of this paragraph after being requested to
do so by Redeveloper, the Authority shall, within fifteen (15) days after written request by
Redeveloper, provide Redeveloper with a written statement indicating in what respect Redeveloper
has failed to complete its Private Improvements subject to each such certification in accordance
with the provisions of this Contract and what measures or acts will be necessary, in the opinion of
the Authority, for Redeveloper to take or perform in order to obtain such certification. As used
herein, the term "completion" shall mean substantial completion of the Private Improvements or a
phase thereof, as applicable, so that they may be reasonably used for their intended purposes.
4.Cost Certification. The Redeveloper shall submit authentic documentation to the
Authority on approved forms or format for payment of any expenses related to site acquisition and
other Redevelopment Project Costs. The Redeveloper shall timely submit a copy of the signed
closing statement for the acquisition of the Project Site, or proof of payment for such site
concurrently with the request for payment of Site Acquisition costs. The parties acknowledge that
the site acquisition costs will exceed the TIF Proceeds of the TIF Note.
5.Penal Bond and Insurance. Pursuant to Neb. Rev. Stat. §18-2151, Redeveloper
shall furnish or cause to be furnished to the Authority, prior to commencement of construction of
the Redevelopment Project Improvements, a penal bond in an amount of Twenty Five Thousand
and No/100 Dollars ($25,000) with a corporate surety authorized to do business in the State of
Nebraska. Such penal bond shall be conditioned upon the Redeveloper at all times making
payment of all amounts lawfully due to all persons supplying or furnishing the Redeveloper, the
Redeveloper’s contractor, its subcontractors who performed labor or applied materials performed
or used in the prosecution of the Private Improvements. Proof of such penal bond shall be supplied
to the Authority prior to the start of construction of the Redevelopment Project Improvements.
Any general contractor chosen by the Redeveloper or the Redeveloper itself shall
be required to obtain and keep in force at all times until completion of construction, policies of
insurance including coverage for contractors' general liability and completed operations. The
City, the Authority and the Redeveloper shall be named as additional insured. Any contractor
chosen by the Redeveloper or the Redeveloper itself, as owner, shall be required to purchase and
maintain property insurance upon the Project to the full insurable value thereof. This insurance
shall insure against the perils of fire and extended coverage and shall include “All Risk"
insurance for physical loss or damage. The contractor with respect to any specific contract or the
Redeveloper shall also carry insurance on all stored materials. The contractor or the
Redeveloper, as the case may be, shall furnish the Authority with a Certificate of Insurance
evidencing policies as required above. Such certificates shall state that the insurance companies
shall give the Authority prior written notice in the event of cancellation of or material change in
any of the policies.
6.Indemnification. Redeveloper agrees to indemnify, defend and hold the City and
the Authority harmless from any and all sums, costs, expenses, damages, claims, judgments,
settlements, litigation costs, attorney and professional fees contracted, incurred or paid by the
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Authority, to the extent the same results from a failure of Redeveloper, its contractor or
subcontractors to make payments of all amounts lawfully due to all persons who performed labor
or applied materials performed or used in construction of the Redevelopment Project
Improvements.
7.Duty to Maintain Improvements. Redeveloper shall, following construction,
operate the Private Improvements in a safe and sanitary manner and shall take all action necessary
to maintain, in good order, condition and state of repair, all interior and exterior portions of all
buildings located upon the Redeveloper Property, including the routine preventive maintenance
of the building and its service facilities such as the wiring, plumbing, heating and air conditioning
systems, interior insect treatment, and all glass including plate glass, exterior doors and
automatic doors.
8.Construction Administration. Redeveloper shall be responsible for all
components of the Redevelopment Project Improvements, including construction management,
coordination of contractors and regulatory permitting and other requirements. The Redeveloper
will be solely responsible for payment of all construction costs attributable to the Redevelopment
Project Improvements regardless of any expectation for reimbursement hereunder.
9.Timing of Construction. Redeveloper will use commercially reasonable efforts
to complete Phase 1 of the Private Improvements within eighteen (18) months following the
Authority’s execution of this Contract, to complete Phase 2 of the Private Improvements within
twenty-four (24) months following the Authority’s execution of this Redevelopment Contract and
to complete Phase 3 of the Private Improvements within thirty-six (36) months following the
Authority’s execution of this Redevelopment Contract (each period subject to any excusable delay
permitted by Paragraph 25 hereof).
10.Payment of Funds. In order to support redevelopment of the Project Site and as
an inducement for the Redeveloper to construct the Redevelopment Project Improvements, the
Authority agrees, to the extent allowed by law and then only to the extent funds are lawfully
available from the issuance of the TIF Notes (“TIF Proceeds”) as shown in Exhibit “C”, to fund
the costs of the Private Improvements in the total amount of the TIF Proceeds less the
Authority’s costs identified in Paragraph 13. Redeveloper shall submit authentic and satisfactory
documentation to the Authority to verify the costs of the Project Site acquisition before any TIF
Proceeds will be expended.
11.Issuance of Redeveloper Purchased TIF Note. The Authority shall issue a series
of TIF Notes, from time to time, in a taxable series, the total principal amount of such taxable
series of TIF Notes not to exceed Six Million Five Hundred Fifty Two Thousand and no/100
Dollars ($6,552,000). The form of each TIF Note shall be in substantially the form shown on
attached Exhibit “E”, for net funds available (“TIF Note”) to be purchased by Redeveloper (“TIF
Note Purchaser”), in a written form acceptable to Authority’s attorney, and receive Note Proceeds
from the TIF Note Purchaser in said amount. The Authority and Redeveloper agree that the
purchase price of the TIF Note and Grant provided in Paragraph 12 may, at the election of the
Authority may be offset. The Authority shall have the complete authority to determine the
timing of issuing the TIF Note and all the other necessary details of the TIF Note. Redeveloper
may assign the TIF Note to a licensed banking institution, but Redeveloper may not sell, transfer,
assign or otherwise hypothecate the TIF Note without express written consent of the Authority.
Such consent shall not be unreasonably withheld. This restriction shall survive closing and
delivery of the said notes. In any event, no assignment shall be approved without prior receipt of
an investor letter from the transferee in a form acceptable to legal counsel for the Authority.
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No TIF Note shall be issued until the Redeveloper has entered into a binding contract for the
acquisition of the Project Site and has entered into a construction contract for commencement of
construction of the Private Improvements.
Proceeds of the Notes may be advanced and disbursed in the manner set forth below:
(a)There shall be submitted to the Authority a grant disbursement request (the
“Disbursement Request”), executed by the City Planning Director and an authorized representative
of the Redeveloper, (i) certifying that a portion of the Project has been substantially completed and
(ii) certifying the actual costs incurred by the Redeveloper in the completion of such portion of the
Project.
(b)If the costs requested for reimbursement under the Disbursement Request are
currently reimbursable under Exhibit C of this Redevelopment Contract and the Act, the Authority
shall evidence such allocation in writing and inform the owner of the Notes of any amounts
allocated to the Notes.
(c)Upon notification from the Authority as described above, the Authority shall make a
grant to Redeveloper in the amount of the approved Disbursement Request; in such event, the
approved Disbursement Request amount shall offset funding of the Notes. The Registrar shall keep
and maintain a record of the amounts deposited into the Project Fund from Notes proceeds pursuant
to the terms of this Resolution as “Principal Amount Advanced” and shall enter the aggregate
principal amount then Outstanding as the “Cumulative Outstanding Principal Amount” on its
records maintained for the Notes. The aggregate amount deposited into the Project Fund from
proceeds of the Notes shall not exceed $6,552,000.00.
12.Use of TIF Proceeds. The TIF Proceeds from TIF Note shall be granted to the
Redeveloper and be used to fund the costs of set forth on Exhibit “C”.
13.Valuation of Property Within the Redevelopment Project Site. The Authority
intends to use the Ad Valorem Tax Provision to generate tax increment financing funds which
shall be used to finance the payment of debt service on the TIF Note to fund the Private
Improvements in accordance with this Redevelopment Contract. The tax increment is to be
derived from the increased valuation, determined in the manner provided for in Article 8, Section
12 of the Constitution of the State of Nebraska and the Act which will be attributable to the
redevelopment contemplated under this Contract and within the Project Area. The TIF Tax
Revenues which are to be used to pay debt service on the TIF Note will be derived from the
increased valuation from redeveloping the Redeveloper Property as provided in this Contract.
Redeveloper specifically acknowledges that any protest of the valuation of all or any portion of the
Project Area by any party, or a reduction in assessed valuation of all or any portion of the Project
Area shall reduce the TIF Tax Revenues available for payment on TIF Note. The Redeveloper
specifically acknowledges, as the TIF Note Purchaser, that it bears the entire risk of any reduction
in assessed valuation.
14.Debt Service for TIF Notes. The Authority shall, to the extent allowed by law,
and then only to the extent funds are lawfully available from TIF Tax Revenues generated by the
Project Site pay the TIF Note Purchaser the principal and interest of the TIF Notes. Any debt
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service on the TIF Notes to be paid from TIF Tax Revenues shall not constitute a general
obligation or debt of the City or Authority. Neither the City or Authority shall be liable or be
required to reimburse Redeveloper for any costs incurred by Redeveloper in the event this Contract
is not approved for any reason, including for reasons alleged to be the fault of the City or
Authority. Any excess TIF Tax Revenues resulting from the Ad Valorem Tax Provision on the
Project Site not needed or required to pay the TIF Note Purchaser shall be expended by the
Authority or returned to the applicable taxing authorities as provided in the Community
Development Law. Any shortfall in anticipated TIF funds from the Ad Valorem Tax Provision
for any reason whatsoever, specifically including a decline in taxable valuation of the Project Site,
shall be borne entirely by the Redeveloper without recourse of any kind against the Authority or
the City. The Authority hereby irrevocably pledges the TIF Tax Revenues generated by the
Project Site to the payment of the TIF Notes. The Authority shall create a special fund to collect
and hold the TIF Tax Revenues. Such special fund shall be used for no purpose other than to pay
the principal and interest price of the respective TIF Notes. Real Property taxes for the year
2031 on the Project Site shall be paid by the Redeveloper on or before December 31, 2031 and
such payment shall be considered TIF Tax Revenues (less any administrative cost authorized to
be withheld by the Hall County Treasurer) and shall be used for payment on the TIF Note.
15. Payment of Authority Costs. The Redeveloper shall pay the sum of $35,000 to
the Authority or their Attorney for reimbursement of legal fees incurred by the Authority related
to the redevelopment project and issuance of the TIF Notes. The Redeveloper acknowledges the
attorney for the Authority is not providing legal representation to the Redeveloper. The
Redeveloper shall also pay the sum of $1,000 to the Authority for reimbursement of costs
associated the City of Grand Island making payments and accounting for the TIF Notes issued
with this contract.
16. Restriction on Transfer. Redeveloper will not, for a period of fifteen (15) years
after the effective date hereof or so long as any TIF Note remains outstanding whichever period of
time is shorter (the “Tax Increment Period”), convey the Redeveloper Property or any portion
thereof to any entity which will result in such property being exempt from ad valorem taxes levied
by the State of Nebraska or any of its subdivisions, unless required to do so by applicable law,
including, without limitation, in connection with a condemnation.
17. Financing Creating Encumbrances Restricted. Prior to completion of Phase 1 or
Phase 2 , as applicable, of the Private Improvements, neither Redeveloper, nor any successors in
interest with respect to the applicable portion of the Redeveloper Property, shall engage in any
financing or any other transaction creating any mortgage upon the uncompleted phase of the
Redeveloper Property, whether by express contract or operation of law, or suffer any encumbrance
or lien to be made on or attached to any of such uncompleted phase of the Redeveloper Property,
except for the purposes of obtaining funds only to the extent necessary to acquire such property, or
design, construct, maintain, repair, replace and insure the Private Improvements, or to refinance said
amounts. Redeveloper, or any successor in interest shall notify the Authority in advance of any
financing secured by mortgage that it proposes to enter into with respect to Redeveloper Property,
and shall promptly notify the Authority of any mortgage that has been created on or attached to
the Redeveloper Property whether by voluntary act of Redeveloper or otherwise. Notwithstanding
the above, if any involuntary encumbrance or lien is made on or attached to any of the Redeveloper
Property and which is contested by Redeveloper, then Redeveloper may defend against such
encumbrance or lien, provided that a sufficient Note or security is posted with the Authority, to
permit Redeveloper to avoid or prevent foreclosure of such encumbrance or lien. In addition,
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Redeveloper agrees that prior to completion of a phase of the Private Improvements; any loan
proceeds secured by any interest in the applicable Redeveloper Property for such uncompleted
phase shall be used solely for the payment of costs and expenses related to the development of the
Private Improvements for that phase.
a. In the event that any foreclosure of any mortgage, deed of trust or other
encumbrance should occur prior to the furnishing of a Certificate of Completion for a
particular phase or at any time when any casualty damage to the Private Improvements
has occurred and has not been fully restored, any party who obtains title to any portion of
the Redeveloper Property from or through Redeveloper or the holder of any mortgage or
any other purchaser at foreclosure sale shall be obligated to commence construction or
reconstruction within three (3) months from the date of acquisition of title by said party
and to complete construction or restoration within twenty-four (24) months from the date
of such acquisition or, in lieu thereof, the holder of any mortgage or any other purchaser at
foreclose sale shall pay to the Authority the amount necessary to fully retire the TIF Note
within three (3) months from the date of acquisition of title.
b. Whenever the Authority shall deliver any notice or demand to Redeveloper
with respect to any breach or default by Redeveloper of its obligations or covenants in
this Contract, the Authority shall at the same time forward a copy of such notice or demand
to each holder of any mortgage at the last address of such holder as shown in the records of
the Register of Deeds of Hall County.
c. If thirty (30) days after any notice or demand with respect to any breach or
default, such breach or default remains uncured, each such holder shall have the right, at
its option, to cure or remedy such breach or default and to add the cost thereof to the
mortgage debt and the lien of its mortgage.
d.The rights and obligations of this Contract relating to mortgages of any portion of
the Redeveloper Property shall apply to any other type of encumbrance on any of the
Redeveloper Property, and any of the stated rights, obligations and remedies of any party
relating to mortgage foreclosures shall be applicable to procedures under any deed of trust
or similar method of encumbrance.
18.Damage or Destruction of Private Improvements. During the construction period
and prior to issuance of the Certificate of Completion, Redeveloper agrees to keep its
construction areas, including completed operations areas, insured against loss or damage by fire,
and such other risks, casualties, and hazards as are customarily covered by builders’ risk or
extended coverage policies in an amount not less than the replacement value but allowing for
reasonable coinsurance clauses and deductibles. In the event of any insured damage or
destruction, Redeveloper agrees to restore the Private Improvements to their prior condition within
twelve (12) months from the date of the damage or destruction, and shall diligently pursue the
same to completion. In the event Redeveloper fails to restore the same for any reason, Redeveloper
shall pay to the Authority the amount of TIF Tax Revenues received by the City in the preceding
year times the number of years remaining in the Tax Increment Period. During the Tax Increment
Period, Redeveloper shall include by restrictive covenant an enforceable obligation on the
Redeveloper or other owner or tenant in possession to maintain property insurance on an extended
coverage all-risk basis in an amount not less than the replacement value, allowing for reasonable
coinsurance clauses and deductibles and also subject to the Redeveloper or other owner or
tenant’s obligation to restore their respective Private Improvements to their prior condition within
twelve (12) months from the date of the damage or destruction, diligently pursuing the same to
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completion.
19.Condemnation. If during the Tax Increment Period, all or any portion of the
Redeveloper Property is condemned by a condemning authority other than the City, and the
condemning authority or its successor in interest would not be obligated to pay real estate taxes
upon that portion condemned, the Authority shall be entitled to claim against the condemner an
interest in the property equal to the present value of the pro rata share of tax increment
indebtedness outstanding as of the date of taking.
20. Representations. Redeveloper represents and agrees that its undertakings, pursuant
to this Contract, have been, are, and will be, for the purpose of redevelopment of Redeveloper
Property and not for speculation in land holding.
21. Restrictions on Assignments of Rights or Obligations. Redeveloper represents and
agrees that prior to completion of the Private Improvements for a phase there shall be no sale or
transfer of the Redeveloper Property for that phase or assignment of Redeveloper’s rights or
obligations under this Contract with respect to such phase to any party without the prior written
approval of the Authority (which shall not be unreasonably withheld, conditioned, or delayed),
other than leases, mortgages and involuntary transfers by reason of death, insolvency, or
incompetence. The Authority shall be entitled to require, as conditions to any required approval,
that:
a. Any proposed transferee shall have the qualifications and financial responsibility, as
determined by the Authority, necessary and adequate to fulfill the obligations undertaken
in this Contract by Redeveloper; and
b. Any proposed transferee, by instrument satisfactory to the Authority
and in form recordable in the Office of the Register of Deeds, shall for itself and its
successors and assigns and for the benefit of the Authority, have expressly assumed all of
the obligations of Redeveloper under this Contract; and
c. Copies of the documents addressing items (a) and (b) shall be submitted to the
Authority for review, not less than ten (10) days prior a regularly scheduled meeting of
the Authority and not less than less than ten (10) days prior to the proposed transfer. If
the transfer or any of the documentation in connection therewith is disapproved by the
Authority, its disapproval and reasons therefore shall be indicated to Redeveloper in
writing.
22. Representations and Warranties of Parties.
a.Redeveloper represents and warrants to Authority as follows:
i. Organization; Power; Good Standing. Redeveloper is a limited liability
company duly organized and validly existing in good standing under the laws of
Nebraska. Redeveloper is qualified to do business in the State of Nebraska and
has all requisite power and authority to own and operate its properties and carry on
its business as now being conducted and to enter into this Contract and perform the
obligations hereunder.
ii.Authority Relative to Contract. This Contract has been duly executed
and delivered by Redeveloper and constitutes a legal, valid and binding obligation
of Redeveloper, enforceable in accordance with its terms, except as the same may
be limited by bankruptcy, insolvency, reorganization, or other laws affecting the
enforcement of creditor's rights generally, or by judicial discretion in connection
with the application of equitable remedies.
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iii.Effect of Contract. The execution, delivery and performance of this
Contract by Redeveloper has been duly authorized by all necessary action by
Redeveloper and except as provided in this Contract will not require the consent,
waiver, approval, license or authorization of any person or public authority, and
will not violate any provision of law applicable to Redeveloper, and will not violate
any instrument, contract, order, judgment, decree, statute, regulation, or any other
restriction of any kind to which Redeveloper is a party.
b.Authority represents and warrants to Redeveloper as follows:
i.Authority Relative to Contract. This Contract has been duly executed
and delivered by the Authority and constitutes a legal, valid and binding
obligation of the Authority, enforceable in accordance with its terms, except as
the same may be limited by bankruptcy, insolvency, reorganization, or other laws
affecting the enforcement of creditor’s rights generally, or by judicial discretion in
connection with the application of equitable remedies.
ii.Effect of Contract. The execution, delivery and performance of this
Contract by Authority have been duly authorized by all necessary action by the
Authority and except as provided in this Contract will not require the consent,
waiver, approval, license or authorization of any person or public authority, and
will not violate any provision of law applicable to the Authority, and will not
violate any instrument, contract, order, judgment, decree, statute, regulation, or
any other restriction of any kind to which the Authority is a party.
23.Remedies. Except as otherwise provided in this Contract, in the event of any
default in performance of this Contract by the Authority or Redeveloper, the party in default shall,
upon written notice from the other, proceed immediately to cure or remedy such default within
thirty (30) days after receipt of notice. However, if the default cannot, in the exercise of
reasonable diligence, be cured within thirty (30) days, then the defaulting party shall commence
efforts to cure and shall diligently continue to cure the default. If the default is not cured, the
non-defaulting parties may institute any proceedings which may be necessary to cure and remedy
the default.
24.Waiver. The parties shall have the right to institute actions or proceedings as they
may deem necessary to enforce this Contract. Any delay in instituting any action or otherwise
asserting rights under this Contract shall not operate as a waiver of rights or limit rights in any
way.
25.Delay in Performance For Causes Beyond Control of Party. The parties or their
successors or assigns shall not be in default of their obligations for delay in performance due to
causes beyond their reasonable control and without their fault, including but not limited to acts of
God, acts of the public enemy, acts of the federal or state government or subdivisions thereof,
fires, floods, epidemics, quarantine restrictions, strikes, freight embargoes, shortages of labor or
materials, or delays of contractors, or subcontractors due to such causes. As it relates to Phase 1,
this paragraph shall not apply to any delay in performance due to economic downturn or any
other condition or cause that is primarily of a financial nature. Provided, however, as this
paragraph relates to Phase 2, the parties shall not be deemed in default due to adverse market
conditions, the Redeveloper’s inability to secure reasonably acceptable financing or tenants for
the development of Phase 2 despite the Redeveloper’s commercially reasonable efforts. The
purpose and intent of this section is that in the event of the occurrence of any such delay, the
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time for performance of the obligations of either party with respect to construction of
improvements shall be extended for the period of delay. However, in order to obtain the benefit
of the provisions of this section, the party seeking the benefit shall within twenty (20) days after
the beginning of the delay of performance notify the other party in writing of the cause and the
reasonably expected length of delay.
26.Contract to Pay Taxes. Redeveloper agrees to pay all real property taxes levied
upon the Redeveloper Property and Private Improvements prior to the time the taxes become
delinquent. The contractual obligation by Redeveloper to pay such taxes prior to delinquency shall
cease upon expiration of the Tax Increment Period, but the Authority in no way waives the
statutory obligation to continue to pay real estate taxes. This provision shall not be deemed a
waiver of the right to protest or contest the valuation of the lots or improvements for tax
purposes, except as such right is otherwise restricted by this Contract.
27.Rights and Remedies Cumulative. The rights and remedies of the parties to this
Contract shall be cumulative and the exercise by either party of anyone or more remedies shall
not preclude the exercise by it of any other remedies for any other default or breach by the other
party. A waiver of any right of either party conferred by this Contract shall be effective only if in
writing and only to the extent specified in writing.
28.Authority Representatives Not Individually Liable. No official or employee of
the Authority shall be personally liable to Redeveloper or any successors in interest due to any
default or breach by the Authority under the terms of this Contract.
29.Notices and Demands. A notice under this Contract by a party to the other party
shall be deemed delivered on the date it is postmarked, sent postage prepaid, certified or registered
mail, or delivered personally to Bosselman Real Estate, LLC, at 3123 West Stolley Park Road,
PO Box 4905, Grand Island, NE 68802-4905; and to the Authority at Community
Redevelopment Authority of Grand Island P.O. Box 1968, Grand Island, NE, 68802-1968,
Attention: Regional Planning Director , with a copy to Michael L. Bacon, Bacon and Vinton, LLP,
Post Office Box 208, Gothenburg, NE 69138, or at such other address with respect to either party
as that party may from time to time designate in writing and notify the other as provided in this
section.
30. Access to Project Site. During construction of the Private Improvements,
Redeveloper shall permit the representatives of the Authority to enter all areas of the Redeveloper
Property and at any and all reasonable times, as the Authority may deem necessary for the purposes
of inspection of work being performed in connection with the construction of the facility.
31.Provisions Run With the Land. This Contract shall run with the Redeveloper
Property and shall inure to and bind the parties and their successors in interest. This
Redevelopment Contract or a Memorandum hereof shall be recorded, by the Authority, with the
Register of Deeds of Hall County, Nebraska, against the Redeveloper Property at the Redeveloper’s
expense.
32.Headings. Headings of the sections of this Contract are inserted for convenience
only and shall be disregarded in interpreting any of its provisions.
33.Severance and Governing Law. Invalidation of any provision of this Contract by
judgment or court order shall not affect any other provisions which shall remain in full force and
effect. This Contract shall be construed and governed by the laws of Nebraska.
34.Expiration of Contract. Unless otherwise stated herein, this Contract shall expire
upon expiration of the Tax Increment Period, or retirement in full of the TIF Notes, whichever first
occurs; provided the Authority and Redeveloper agree to execute any release necessary to be filed
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Bosselman Real Estate, LLC
of record to evidence such expiration or termination, unless otherwise stated herein.
35.Interpretations. Any uncertainty or ambiguity existing herein shall not be
interpreted against either party because such party prepared any portion of this Contract, but
shall be interpreted according to the application of rules of interpretation of contracts generally.
36.Counterparts. This Contract may be executed in one or more counterparts which,
when assembled, shall constitute an executed original hereof.
37.Nondiscrimination. Redeveloper, its successors and transferees agree that, as long
as the TIF Note is outstanding, it will not discriminate against any person or group of persons on
account of race, religion, sex, color, national origin, ancestry, disability, marital status or receipt of
public assistance in connection with the Redevelopment Project. Redeveloper, its successors and
transferees, agrees that during the construction of the Redevelopment Project, Redeveloper will not
discriminate against any employee or applicant for employment because of race, religion, sex,
color, national origin, ancestry, disability, marital status or receipt of public assistance, and further
agrees to require that its contractor and subcontractors shall agree to conform to said requirements.
Redeveloper will comply with all applicable federal, state and local laws related to the
Redevelopment Project. For purposes of this paragraph, discrimination shall mean discrimination
as defined by the laws of the United States and the State of Nebraska.
38.Audit and Review. Redeveloper shall be subject to audit by the Authority and shall
make available to the Authority or its designee copies of all financial and performance related
records and materials germane to this Contract. The Authority shall cooperate and make available
to the Redeveloper or its agent copies of all financial and performance related records and
materials germane to the Project Account and the TIF Proceeds.
39.Evidence of Financial Ability of Redeveloper. The Authority acknowledges that
the Redeveloper has previously provided to the Authority, on a confidential and privileged basis,
evidence of availability of the specific amount of finances necessary for purposes of carrying out
the commitment of the Redeveloper in connection with the Project Site.
40.Effective Date. For purposes of determining the effective date as stated in Neb. Rev.
Stat.§18-2147, the effective date of this Contract shall be January 1, 2017. The parties acknowledge
that the rehabilitation contemplated hereby will extend substantially into the 2017 calendar year.
For all other purposes, this Contract shall be effective on the date the last party hereto executes this
Contract.
41.Immigration Requirement. The Redeveloper agrees that any contractor for the
Project shall be required to agree to use a federal immigration verification system (as defined in
Nebraska Revised Statute §4-114) to determine the work eligibility status of new employees
physically performing services on the Project and to comply with all applicable requirements of
Nebraska Revised Statute §4-114.
42.Relocation Expenses. The Redeveloper agrees to indemnify and hold the City and
the Authority harmless from any and all liability to the extent resulting from the Redeveloper’s
failure to make payments of all amounts lawfully due to all persons, firms, or organizations under
any city, state or federal relocation laws or regulation in connection with the Project Site. The terms
of this section shall survive any termination of this Contract.
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Bosselman Real Estate, LLC
Executed by Authority this ___day of September, 2015.
COMMUNITY
REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND
ISLAND, NEBRASKA
____________________________
Chair or Vice Chair
ATTEST:
_________________________
Secretary
STATE OF NEBRASKA )
) ss.
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this_____day of _________,
2015, by _______________________ Chair (or Vice Chair) of the Community Redevelopment
Authority of the City of Grand Island, Nebraska.
_______________________________
Notary Public
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Bosselman Real Estate, LLC
Executed by Redeveloper this______day of ___________________, 2015
BOSSELMAN REAL ESTATE, LLC, a
Nebraska limited liability company
By:_________________________________
Manager
STATE OF ______________)
) ss.
COUNTY OF ____________)
The foregoing instrument was acknowledged before me this ____day of ___________,
2015, by ___________________, the Manager of Bosselman Real Estate, LLC, a Nebraska
limited liability company, on behalf of the limited liability company.
Notary Public
_____________________________
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Bosselman Real Estate, LLC
Exhibit “A”
REDEVELOPER PROPERTY
Lot One of Fonner Fourth Subdivision to the City of Grand Island, Hall County, Nebraska.
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Bosselman Real Estate, LLC
Exhibit “B”
PROJECT SITE PLAN
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Bosselman Real Estate, LLC
Exhibit “C”
USES AND SOURCES OF FUNDS
PUBLIC IMPROVEMENTS AND ELIGIBLE PRIVATE IMPROVEMENTS
- USES OF FUNDS-
Project Sources and Uses.
Use of Funds.
[Insert from Redevelopment Plan]
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Bosselman Real Estate, LLC
Exhibit “D”
CERTIFICATE OF COMPLETION OF
PRIVATE IMPROVEMENTS
KNOW ALL PEOPLE BY THESE PRESENTS: That the Community Redevelopment
Authority of the City of Grand Island, Nebraska, hereinafter called "Authority", hereby makes the
conclusive determination and certification that, with regard to the following real property situated in
the City of Grand Island, Hall County, Nebraska, to wit ("Redeveloper Property"):
Lot One of Fonner Fourth Subdivision to the City of Grand Island, Hall County, Nebraska.
all the improvements required to be constructed upon the above-described Redeveloper Property
have been satisfactorily completed in accordance with the requirements of the REDEVELOPMENT
CONTRACT with Bosselman Real Estate, LLC, dated __________ ("Contract") by and between
the COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA, , and Bosselman Real Estate, LLC, a Nebraska limited liability company
(“Redeveloper”), said Contract with an effective date of January 1, 2017, and recorded as
Instrument No.____________________, in the office of the Register of Deeds for Hall County,
Nebraska.
The Authority further makes the conclusive determination that the Private Improvements (as
defined in the Contract) to the above-described Redeveloper Property are presently in conformance
with the Contract.
IN WITNESS WHEREOF, the Authority and Redeveloper have executed this instrument
this ______ day of ______________________, 201_.
COMMUNITY
REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND
ISLAND, NEBRASKA
ATTEST:
_________________________________By: _____________________________
Secretary Chair
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Bosselman Real Estate, LLC
STATE OF NEBRASKA )
) ss.
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this_____day of ________,
201_, ____________________, Chair of the Redevelopment Authority of the City of Grand
Island, Nebraska, on behalf of the Authority.
___________________________
“Redeveloper”
Bosselman Real Estate, LLC, a Nebraska
limited liability company qualified to do
business in the state of Nebraska
By:_________________________________
Manager
STATE OF ______________ )
) ss.
COUNTY OF ___________)
The foregoing instrument was acknowledged before me this ____day of _________,
201__, by ______________________, the Manager of Bosselman Real Estate, LLC, a
Nebraska limited liability company, on behalf of the limited liability company.
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Bosselman Real Estate, LLC
Exhibit “E”
(FORM OF NOTE)
UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF HALL
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
TAX INCREMENT DEVELOPMENT REVENUE NOTE
(BOSSELMAN REAL ESTATE PROJECT), SERIES 2015
Series No. R-1 Total of Series of Notes not to exceed $6,552,000.00
(subject to reduction as described herein)
Date of Date of Rate of
Original Issue Maturity Interest
December 31, 2031 0.0%
REGISTERED OWNER: BOSSELMAN REAL ESTATE, LLC
PRINCIPAL AMOUNT: SEE SCHEDULE 1 ATTACHED HERETO
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE
NOTE SET FORTH ON THE FOLLOWING PAGES, WHICH FURTHER PROVISIONS
SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT
THIS PLACE.
IN WITNESS WHEREOF, THE COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA has caused this Note to
be signed by the manual signature of the Chairman of the Authority, countersigned by the
manual signature of the Secretary of the Authority, and the City’s corporate seal imprinted
hereon.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA
[S E A L]
By:
Chairman
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Bosselman Real Estate, LLC
By:
Secretary
The COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA (the “Authority”) acknowledges itself indebted to, and for
value received hereby promises to pay, but solely from certain specified tax revenues and other
funds hereinafter specified, to the Registered Owner named above, or registered assigns, on the
Date of Maturity stated above (or earlier as hereinafter referred to), the Principal Amount on
Schedule 1 attached hereto upon presentation and surrender hereof at the office of the registrar
and paying agent herefor, the Treasurer of the City of Grand Island, Nebraska (the “Registrar”),
and in like manner to pay interest on the Cumulative Outstanding Principal Amount reflected in
Schedule 1 at the Rate of Interest stated above, calculated on the basis of a 360-day year
consisting of twelve, 30-day months, from the Date of Original Issue stated above, or the most
recent interest payment date to which interest has been paid or duly provided for, as specified
below, to maturity or earlier redemption, payable semiannually on June 1 and December 1 of
each year until payment in full of such Principal Amount, beginning June 1, 2018, by check or
draft mailed to the Registered Owner hereof as shown on the Note registration books maintained
by the Registrar on the 15th day of the month preceding the month in which the applicable
interest payment date occurs, at such Owner’s address as it appears on such Note registration
books. The principal of this Note and the interest hereon are payable in any coin or currency
which on the respective dates of payment thereof is legal tender for the payment of debts due the
United States of America.
This Note is issued by the Authority under the authority of and in full compliance with the
Constitution and statutes of the State of Nebraska, including particularly Article VIII, Section 12 of
the Nebraska Constitution, Sections 18-2101 to 18-2153, inclusive, Reissue Revised Statutes of
Nebraska, as amended, and under and pursuant to Resolution No. ________ duly passed and
adopted by the Authority on __________2015, as from time to time amended and supplemented
(the “Resolution”).
THE PRINCIPAL AMOUNT OF THIS NOTE IS SET FORTH IN SCHEDULE 1
ATTACHED HERETO. [THE MAXIMUM PRINCIPAL AMOUNT OF THIS SERIES OF
NOTES IS $6,552,000.]
This Note is a special limited obligation of the Authority payable as to principal and
interest solely from and is secured solely by the Revenue (as defined in the Resolution) and certain
other money, funds and securities pledged under the Resolution, all on the terms and conditions set
forth in the Resolution. The Revenue represents that portion of ad valorem taxes levied by public
bodies of the State of Nebraska, including the City, on real property in the Project Area (as defined
in this Resolution) which is in excess of that portion of such ad valorem taxes produced by the levy
at the rate fixed each year by or for each such public body upon the valuation of the Project Area as
of a certain date and as has been certified by the County Assessor of Hall County, Nebraska to the
City in accordance with law.
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Bosselman Real Estate, LLC
Reference is hereby made to the Resolution for the provisions, among others, with respect
to the collection and disposition of certain tax and other revenues, the special funds charged with
and pledged to the payment of the principal of and interest on this Note, the nature and extent of
the security thereby created, the terms and conditions under which this Note has been issued, the
rights and remedies of the Registered Owner of this Note, and the rights, duties, immunities and
obligations of the City and the Authority. By the acceptance of this Note, the Registered Owner
assents to all of the provisions of the Resolution.
The principal of and interest hereon shall not be payable from the general funds of the City
nor the Authority nor shall this Note constitute a legal or equitable pledge, charge, lien, security
interest or encumbrance upon any of the property or upon any of the income, receipts, or money
and securities of the City or the Authority or of any other party other than those specifically
pledged under the Resolution. This Note is not a debt of the City or the Authority within the
meaning of any constitutional, statutory or charter limitation upon the creation of general
obligation indebtedness of the City or the Authority, and does not impose any general liability
upon the City or the Authority and neither the City nor the Authority shall be liable for the
payment hereof out of any funds of the City or the Authority other than the Revenues and other
funds pledged under the Resolution, which Revenues and other funds have been and hereby are
pledged to the punctual payment of the principal of and interest on this Note in accordance with the
provisions of this Resolution.
The Registered Owner may from time to time enter the respective amounts advanced
pursuant to the terms of the Resolution under the column headed “Principal Amount Advanced” on
Schedule 1 hereto (the “Table”) and may enter the aggregate principal amount of this Note then
outstanding under the column headed “Cumulative Outstanding Principal Amount” on the Table.
On each date upon which a portion of the Cumulative Outstanding Principal Amount is paid to the
Registered Owner pursuant to the redemption provisions of the Resolution, the Registered Owner
may enter the principal amount paid on this Note under the column headed “Principal Amount
Redeemed” on the Table and may enter the then outstanding principal amount of this Note under
the column headed “Cumulative Outstanding Principal Amount” on the Table. Notwithstanding
the foregoing, the records maintained by the Trustee as to the principal amount issued and principal
amounts paid on this Note shall be the official records of the Cumulative Outstanding Principal
Amount of this Note for all purposes.
Reference is hereby made to the Resolution, a copy of which is on file in the office of the
City Clerk, and to all of the provisions of which each Owner of this Note by its acceptance hereof
hereby assents, for definitions of terms; the description of and the nature and extent of the security
for this Note; the Revenue and other money and securities pledged to the payment of the principal
of and interest on this Note; the nature and extent and manner of enforcement of the pledge; the
conditions upon which the Resolution may be amended or supplemented with or without the
consent of the Owner of this Note; the rights, duties and obligations of the Authority and the
Registrar thereunder; the terms and provisions upon which the liens, pledges, charges, trusts and
covenants made therein may be discharged at or prior to the maturity or redemption of this Note,
and this Note thereafter no longer be secured by the Resolution or be deemed to be outstanding
thereunder, if money or certain specified securities shall have been deposited with the Registrar
sufficient and held in trust solely for the payment hereof; and for the other terms and provisions
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Bosselman Real Estate, LLC
thereof.
This Note is subject to redemption prior to maturity, at the option of the Authority, in
whole or in part at any time at a redemption price equal to 100% of the principal amount being
redeemed, plus accrued interest on such principal amount to the date fixed for redemption.
Reference is hereby made to the Resolution for a description of the redemption procedures and the
notice requirements pertaining thereto.
In the event this Note is called for prior redemption, notice of such redemption shall be
given by first-class mail to the Registered Owner hereof at its address as shown on the registration
books maintained by the Registrar not less than 10 days prior to the date fixed for redemption,
unless waived by the Registered Owner hereof. If this Note, or any portion thereof, shall have
been duly called for redemption and notice of such redemption duly given as provided, then upon
such redemption date the portion of this Note so redeemed shall become due and payable and if
money for the payment of the portion of the Note so redeemed and the accrued interest thereon to
the date fixed for redemption shall be held for the purpose of such payment by the Registrar,
interest shall cease to accrue and become payable hereon from and after the redemption date.
This Note is transferable by the Registered Owner hereof in person or by its attorney or
legal representative duly authorized in writing at the principal office of the Registrar, but only in
the manner, subject to the limitations and upon payment of the charges provided in the Resolution,
and upon surrender and cancellation of this Note. Upon such transfer, a new Note of the same
series and maturity and for the same principal amount will be issued to the transferee in exchange
therefor. The Authority and the Registrar may deem and treat the Registered Owner hereof as the
absolute owner hereof for the purpose of receiving payment of or on account of principal of and
interest due hereon and for all other purposes.
This Note is being issued as fully a registered Note without coupons. This Note is subject
to exchange as provided in the Resolution.
It is hereby certified, recited and declared that all acts, conditions and things required to
have happened, to exist and to have been performed precedent to and in the issuance of this Note
have happened, do exist and have been performed in regular and due time, form and manner; that
this Note does not exceed any constitutional, statutory or charter limitation on indebtedness; and
that provision has been made for the payment of the principal of and interest on this Note as
provided in this Resolution.
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Bosselman Real Estate, LLC
(FORM OF ASSIGNMENT)
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
___________________________________________________________________________
Print or Type Name, Address and Social Security Number
or other Taxpayer Identification Number of Transferee
the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
_______________ agent to transfer the within Note on the Note register kept by the Registrar for
the registration thereof, with full power of substitution in the premises.
Dated: ___________________________________________________
NOTICE: The signature to this Assignment
must correspond with the name of the
Registered Owner as it appears upon the
face of the within Note in every particular.
Signature Guaranteed By:
____________________________________
Name of Eligible Guarantor Institution as
defined by SEC Rule 17 Ad-15 (17 CFR
240.17 Ad-15)
By:________________________________
Title:_______________________________
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Bosselman Real Estate, LLC
SCHEDULE 1
TABLE OF CUMULATIVE OUTSTANDING PRINCIPAL AMOUNT
COMMUNITY REDEVELOPMENT AUTHORITY OF
THE CITY OF GRAND ISLAND, NEBRASKA
FAMOS REDEVELOPMENT PROJECT
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES R-1 2015
Date
Principal
Amount
Advanced
Principal
Amount
Redeemed
Cumulative
Outstanding
Principal
Amount
Notation
Made
By
Grand Island Regular Meeting - 9/9/2015 Page 125 / 147
Community Redevelopment
Authority (CRA)
Wednesday, September 9, 2015
Regular Meeting
Item H2
TIF Request
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 9/9/2015 Page 126 / 147
BACKGROUND INFORMATION RELATIVE TO
TAX INCREMENT FINANCING REQUEST
Project Redeveloper Information
Business Name: Hatchery Holdings, LLC
Operational Site Address: SW Corner of Blaine and Schimmer Drive, Grand
Island, NE 68801
Contact: Peter Mumm
Managing Director
Hendrix-ISA, LLC
5953 Frase Court
Fall Creek, WI, 54742
Cell: 937-935-6713
Business/Admin Office Address:
5800 Merle Hay Road, Suite 14
PO Box 394
Johnston, IA 50131
Contact: Todd Carlson – Phone: (515)253-0943 Ext 136, Fax No: (515)253-0942
Brief Description of Applicant’s Business:
Development, Construction and Operation of a Hatchery facility that will produce
approx. 24,000,000 day old chicks per year. The chicks will be sold to egg
producing layer operations regionally, including sales in the states of Nebraska,
Iowa, Missouri, South Dakota, Colorado and Minnesota. There will be 6-8 related
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breeder operations in the Grand Island area to support the hatchery operations.
The operation will include a vaccination department/area to vaccinate the chicks
with the appropriate governmental/industry approved vaccinations. There will be
approximately 50 employees at the hatchery location.
Present Ownership Proposed Project Site: Owned by Grand Island Economic
Development Corporation
Approximately 20 acres in the NE ¼ of Section 5 Township 10 N Range 9 W of
the 6th PM in Hall County Nebraska.
Proposed Project:
20 acre site
60,000 sq/ft building including 5,400 sq/ft of office/support space
Slab on grade construction with steel frame, bar joist for roof support, exterior
interlocking insulated foam panels with Kynar finish
Approx 8,000 S.Y. of roadway/parking access, 6,000 S.Y. of concrete at dock
areas & 240’x420’ of asphalt parking area
If Property is to be Subdivided, Show Division Planned:
Sub-division/Platting in process. Will forward upon receipt.
VI.Estimated Project Costs:
Acquisition Costs:
A. Land $ 1,600,000
B. Building $ 0
Construction Costs:
A. Renovation or Building Costs:$ 10,034,177
B. On-Site Improvements:
1.Utilities to Building $ 136,313
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2.Grading $ 174,000
3.Site Preparation $ 84,000
4.On Site Drainage Facilities $ 25,000
5.Parking Lots $ 314,687
6.Signage $ 5,000
7.Parking Lot Lighting $ 20,000
8.Landscaping $ 20,000
9.Tap Fees $ 25,000
C. Hatchery Equipment $ 6,000,000
Soft Costs:
A. Architectural & Engineering Fees:$ 350,000
B. Financing Fees: $ 540,000
C. Legal/Developer/Audit Fees:$ 280,000
D. Contingency Reserves:$ 360,000
E. Other (Please Specify)$ 0
TOTAL $19,998,177
Total Estimated Market Value at Completion:$ 21,000,000
Source of Financing:
A. Developer Equity:$ 4,875,647
B. Commercial Bank Loan:$ 12,243,217
Tax Credits:
1. N.I.F.A.$ 0
2. Historic Tax Credits $ 0
D. Industrial Revenue Bonds:$ 0
E. Tax Increment Assistance – Site Funding:$ 2,674,313
F. Nebraska Sites Building Development Fund $ 125,000
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Name, Address, Phone & Fax Numbers of Architect, Engineer and General Contractor:
Architect:
TBD
Engineer:
Civil – TBD
Mechanical - TBD
General Contractor:
Henning Companies, LLC
5800 Merle Hay Road, Suite 14
Johnston, IA 50131
Phone: (515) 253-0943
Fax: (515) 253-0942
Estimated Real Estate Taxes on Project Site Upon Completion of Project:
Dave – please insert calculation here based on details above.
Current Valuation $220,000 Current Taxes $4805
Expected Valuation $11,600,000 Expected Taxes $253,330
Annual Taxes $253,330 Less Base $4805 Expected Increment $248,525
Project Construction Schedule:
Construction Start Date: October 15, 2015
Construction Completion Date: September 15, 2016
XII.Please Attach Construction Pro Forma
In process, will forward upon completion
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XIII. Please Attach Annual Income & Expense Pro Forma
New entity, currently under development by Hatchery operating entity
TAX INCREMENT FINANCING REQUEST INFORMATION
Describe Amount and Purpose for Which Tax Increment Financing is Requested:
Requesting a 15 year deferral of taxes on the property – based on the current
assessed value of the property vs the improved value of the property.
Statement Identifying Financial Gap and Necessity for use of Tax Increment Financing
for Proposed Project:
The support of the Nebraska Sites and Building Development Fund will bridge
the current financing/equity gap to get the project started yet this fall. We are
requesting a $175,000 award to allow us to start the project per the sources/uses
gap that exists at this point. $125,000 of this will be available for building and
$50,000 will be available for training.
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:
o Mr. Rand Fisher, President
Iowa Area Development Group
2700 Westtown Parkway, Suite 425
West Des Moines, IA 50256
rfisher@iadg.com, (515)223-4743
o Mr. Rob Cleveland, Director Economic Development
Indiana Michigan Power
recleveland@aep.com
(260)408-3453
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o Ms. Kathy Bantz, Mayor
City of Montpelier Indiana
300 West Huntington Street
Montpelier, IN 47359
mayorbantz@montpeliercity.net
(765)728-6500
IV.Please Attach Applicant’s Corporate/Business Annual Financial Statements for
the Last Three Years.
* Not applicable, new entity.
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 7
September 2015
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area 7 within the city, pursuant to
the Nebraska Community Development Law (the “Act”) and provide for the
financing of an industrial project in Area 7.
Executive Summary:
Project Description
THE ACQUISITION OF PROPERTY AT THE SOUTHWEST CORNER OF
SCHIMMER ROAD AND BLAINE STREET (APPROXIMATELY 20 ACRES) AND
THE SUBSEQUENT SITE WORK, GRADING, DRAINAGE IMPROVEMENTS,
UTILITY IMPROVEMENTS, ENGINEERING, LANDSCAPING AND PARKING
IMPROVEMENTS NECESSARY FOR CONSTRUCTING A COMMERCIAL
BUILDING TO BE USED AS A COMMERCIAL CHICKEN HATCHERY AT THIS
LOCATION.
The use of Tax Increment Financing (TIF) to aid in the acquisition of property, necessary
site work including drainage, and installation of public utilities and utility connections
necessary to develop this site. The use of TIF for this project was proposed by the Grand
Island Area Economic Development Corporation (GIAEDC) in their proposal to bring
this project to Grand Island. This project developer is willing to locate this business in
Grand Island provided TIF is available to support the project.
The acquisition, site work and construction of all improvements will be paid for by the
developer based on their agreements with GIAEDC. 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 other necessary expenditures. 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 west of Blaine Street south of Schimmer Drive in southern Grand
Island, the attached map identifies the subject property and the surrounding land uses:
Legal Description Exact description to be provided later but 20 acres more
or less consisting generally of either the N ½ or E ½ of NE ¼ of the NE ¼ of
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Section 5, Township 10 North, Range 9 west of the 6th P.M. in Grand Island, Hall
County, Nebraska.
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Based on the proposal 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 set with the signed
contract estimated now to 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.
Grand Island Regular Meeting - 9/9/2015 Page 135 / 147
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 August 28, 2007.[§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:
This Redevelopment Plan for Area 7 provides for real property 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 manufacturing development [§18-2103(b) and §18-2111]. The attached map
also is an accurate site plan of the area after redevelopment. [§18-2111(5)]
Grand Island Regular Meeting - 9/9/2015 Page 136 / 147
City of Grand Island Future Land Use Map
Grand Island Regular Meeting - 9/9/2015 Page 137 / 147
d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned M2 Heavy Manufacturing 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 acquire property and build a 60,000 square foot building to
be used as a chicken hatchery to supply chickens for egg production in the surrounding
agricultural zoning districts in Hall County and the surrounding counties. [§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.
Adequate electric utility infrastructure is available to support this development.
No other utilities would be impacted by the development.
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 $1,600,000
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, grading and
drainage structures, utility extensions and connection fees, of $444,313 and planning and
legal costs of $630,000 are included as TIF eligible expenses. It is estimated based on the
proposed increased valuation of the project of $11,600,000 will result in $3,728,000 of
increment generated over a 15 year period.
No property will be transferred to redevelopers by the Authority. The developer and
GIAEDC will provide and secure all necessary financing.
b. Statement of proposed method of financing the redevelopment project.
The developer and GIAEDC will provide all necessary financing for the project. The
Authority will assist the project by granting the sum of $2,674,313 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. It is expected that
TIF revenues shall be made available to repay the original debt after January 1, 2018
through December 2032 depending on the final building schedule and contract date.
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,
Grand Island Regular Meeting - 9/9/2015 Page 139 / 147
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
development, in and of itself will promote consistency with the Comprehensive Plan, in
that it will allow for the utilization of the property for manufacturing purposes consistent
with the intent of the Comprehensive Plan. This property was purchased by the GIAEDC
in 2006 for the purpose of encouraging industrial development. The City and the
GIAEDC have invested substantial funds in extending infrastructure to serve this
property for manufacturing purposes. New manufacturing development will raise
property values and encourage further development of this property.
8. Time Frame for Development
Development of this project is anticipated to be completed between October of 2015 and
September of 2016. Excess valuation should be available for this project for 15 years
beginning with the 2017 tax year.
9. Justification of Project
The property is located at the northeast corner of the property referred to variously as
Platte Valley Industrial Park East (PVIP East) and more recently as Wildwood Business
Park south of Schimmer Drive and west of Blaine Street. A community development
block grant of $935,000 from the Nebraska Department of Economic Development was
used to pay for a portion of the paving of Blaine Street and the installation of sanitary
sewer and water lines adjacent to the site. The use of those funds obligates the City and
the GIAEDC to recruit businesses that will create at least 37 jobs 51% of which are to be
“held by” or “made available to” people that are currently considered low to moderate
income. This project as proposed would fulfill the job creation requirements of that
grant.
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
Redevelopment Project, including:
Grand Island Regular Meeting - 9/9/2015 Page 140 / 147
Project Sources and Uses. Approximately $2,674,300 in public funds from tax
increment financing provided by the Grand Island Community Redevelopment Authority
will be required to complete the project. The total private investment on this project is
the total of the costs not eligible for is TIF $17,003,687. This $2,674,300 investment by
the Authority and the people of Grand Island will leverage $17,003,687 in private sector
financing and investment; a private investment of $6.35 for every TIF dollar investment.
Use of Funds. Phase 1
Description Eligible for TIF Funds Private Funds Total
Site Acquisition $1,600,000 $1,600,000
Utilities/On Site
Improvements $444,313 359,687 $804,000
Legal Private $250,000 $250,000
Legal CRA Cost $30,000 $30,000
Fees1 $1,600 $1,600
Architecture $350,000 $350,000
Building Construction
Costs $10,034,000 $10,034,000
Soft Costs $610,000 $610,000
Personal Property $6,000,000 $6,000,000
TOTALS $2,675,913 $17,003,687 $19,679,600
Tax Revenue. The property to be redeveloped has a January 1, 2015, valuation of
approximately $220,000 according to the Hall County Assessor’s Office. Based on the 2014 levy
this would result in a real property tax of approximately $4,804. It is anticipated that the assessed
value will increase by almost $11,400,000 upon full completion, as a result of the site
redevelopment. This development will result in an estimated tax increase of over $248,525
annually resulting in $3,728,000 of increment over the 15 year period. The tax increment gained
from this Redevelopment Project Area would not be available for use as city general tax
revenues, for a period of 15 years, or such shorter time as may be required to amortize the TIF
bond, but would be used for eligible private redevelopment costs to enable this project to be
realized.
Estimated 2015 assessed value:$ 220,000
Estimated value after completion $ 11,600,000
Increment value $ 11,380,000
Annual TIF generated (estimated)$ 248,525
TIF bond issue $ 2,674,313
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $220,000.
The proposed redevelopment and commercial construction at this location will result in
an additional $11,380,000 of taxable valuation based on valuations of similar properties.
No tax shifts are anticipated from the project. The project creates additional valuation
Grand Island Regular Meeting - 9/9/2015 Page 141 / 147
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. It is
anticipated that this project will create 50 additional jobs more than half of which will be
available to people currently considered low to moderate income meeting the job creation
component of the Community Development Block Grant that was used to extend utilities
to the property and pave Blaine Street. The increase in available jobs may result in
further tightening of the job market.
(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 major impacts are anticipated outside of the city or immediate area to total
employment from this project. The satellite farming operations that will be raising
chickens for egg production will stabilize and diversify the ag sector. There may be an
increase in employment in the construction sector during construction of this project and
the outlying facilities that will support this plant.
(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 serve as a catalyst project developing a 20 acre parcel within the Platte
Valley Industrial Park East. This project will meet the obligations the City and the
GIAEDC have for job creation as part of the CDBG grant that was used to install utilities
across the property and pave Blaine Street. This project will diversify the ag employment
sector into new production that is not currently found in central Nebraska, specifically
egg and chicken production.
Time Frame for Development
Development of this project is anticipated to be completed during between October 2015
and September of 2016. The date of TIF will be established with the approved contract
Grand Island Regular Meeting - 9/9/2015 Page 142 / 147
but it is anticipated that he 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 $2,674,313 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 $2,674,313 on TIF eligible activities.
See Attached Site Plan
Grand Island Regular Meeting - 9/9/2015 Page 143 / 147
Hatchery Holdings, LLC
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 204
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 7, from Hatchery Holdings, 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 7;
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 - 9/9/2015 Page 144 / 147
Hatchery Holdings, LLC
Exhibit 1
Attach a copy of the Redevelopment Contract
Grand Island Regular Meeting - 9/9/2015 Page 145 / 147
Hatchery Holdings, LLC
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 205
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 - 9/9/2015 Page 146 / 147
Hatchery Holdings, LLC
EXHIBIT 1
REDEVELOPMENT PLAN AMENDMENT
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