11-18-2015 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, November 18, 2015
Regular Meeting Packet
Board Members:
Tom Gdowski
Glen Murray
Sue Pirnie
Barry Sandstrom
Glenn Wilson
4:00 PM
Grand Island Regular Meeting - 11/18/2015 Page 1 / 26
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, November 18, 2015
Regular Meeting
Item A1
Agenda
Staff Contact: Chad Nabity
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AGENDA
Wednesday, November 18, 2015
4:00 p.m.
Grand Island City Hall
Open Meetings Notifications
1.Call to Order.Barry Sandstrom
This is a public meeting subject to the open meetings laws of the State of
Nebraska. The requirements for an open meeting are posted on the wall in
this room and anyone that wants to find out what those are is welcome to read
through them.
The CRA may vote to go into Closed Session on any Agenda Item as allowed by
State Law.
2.Approval of Minutes of October 14, 2015 Meeting.
3.Approval of Financial Reports.
4.Approval of Bills.
5.Review of Committed Projects and CRA Properties.
6.Transfer and transition of the Victory Village project.
7.Approve Resolution to Purchase/Sell Real Estate.
8.Directors Report.
9.Adjournment
Next Meeting December 9, 2015
The CRA may go into closed session for any agenda item as allowed by state law.
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Community Redevelopment
Authority (CRA)
Wednesday, November 18, 2015
Regular Meeting
Item B1
Meeting Minutes
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 11/18/2015 Page 5 / 26
OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
October 14, 2015
Pursuant to due call and notice thereof, a Regular Meeting of the Community
Redevelopment Authority of the City of Grand Island, Nebraska was conducted on
October 14, 2015 at City Hall 100 E First Street. Notice of the meeting was given in the
October 7, 2015 Grand Island Independent.
1.CALL TO ORDER. Chairman Sandstrom called the meeting to order at 4:00 p.m.
The following members were present: Tom Gdowski, Glen Murray, and Sue
Pirnie. Also present were; Director, Chad Nabity; Secretary Rose Rhoads;
Accountant, Brian Schultz; City Administrator, Marlan Ferguson; Legal Counsel,
Duane Burns; Council Liaison, Vaughn Minton and Dave Taylor.
Sandstrom stated this was a public meeting subject to the open meeting laws of the
State of Nebraska. He noted that the requirements for an open meeting were
posted on the wall easily accessible to anyone who would like to read through
them.
2.APPROVAL OF MINUTES. A motion for approval of Minutes for the
September 9, 2015 meeting was made by Gdowski and seconded by Murray.
Upon roll call vote all present voted aye. Motion carried unanimously.
3. APPROVAL OF FINANCIAL REPORTS. Schultz reviewed the financial reports
for the period of September 1, 2015 through September 30, 2015. Motion was
made by Murray and seconded by Pirnie to approve the financial reports. Upon
roll call vote all present voted aye. Motion carried unanimously.
4. APPROVAL OF BILLS. The bills were reviewed. A motion was made by Pirnie
and seconded by Gdowski to approve the bills in the amount of $121,660.08.
Upon roll call vote all present voted aye. Motion carried unanimously to approve
the payment of bills totaling $121,660.08.
5.REVIEW OF COMMITTED PROJECTS & CRA PROPERTY.
Nabity reviewed the Committed Projects.
6.CONSIDERATION OF REDEVELOPMENT CONTRACT. Hatchery Holdings,
LLC, (the “Developer”) has proposed to redevelop an area within the city limits of
the City of Grand Island the Southwest corner of Schimmer Road and Blaine
Street. The CRA passed resolution 205 notifying City Council of their intent to
enter into a redevelopment contract at their meeting on September 9, 2015. The
Hall County Regional Planning Commission met on October 7, 2015, and passed
Grand Island Regular Meeting - 11/18/2015 Page 6 / 26
Resolution 2016-01 finding that this plan amendment is consistent with the
comprehensive development plan for the City of Grand Island. The Grand Island
City Council passed Resolution 2015-282 at their meeting on October 13, 2015. A
motion to approve resolution 206 was made by Gdowski and seconded by Pirnie.
Upon roll call vote all present voted aye. Motion carried unanimously.
7.CONSIDERATION OF BOND RESOLUTION 207. Nabity explained to the
board this would be the approval of the bond resolution for Bosselman Real Estate,
LLC. A motion was made by Murray and seconded by Pirnie to approve
resolution 207. Upon roll call vote all present voted aye. Motion carried
unanimously.
8.DISCUSSION CONCERNING PURCHASE/SALE OF REAL ESTATE.
A motion was made by Gdowski and seconded by Murray at 4:28 to enter into
executive session. Upon roll call vote all present voted aye. Motion carried
unanimously. A motion was made by Gdowski at 5:06 and seconded by Murray at
5:06 to leave executive session. Upon roll call vote all present voted aye. Motion
carried unanimously.
9. REVIEW REQUEST FOR DEVELOPMENT PROPOSALS.
10.DIRECTORS REPORT.
11.ADJOURNMENT. Sandstrom adjourned the meeting at 5:07 p.m.
The next meeting is scheduled for November 18, 2015.
Respectfully submitted
Chad Nabity
Director
Grand Island Regular Meeting - 11/18/2015 Page 7 / 26
Community Redevelopment
Authority (CRA)
Wednesday, November 18, 2015
Regular Meeting
Item C1
Financial Reports
Staff Contact: Chad Nabity
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Community Redevelopment
Authority (CRA)
Wednesday, November 18, 2015
Regular Meeting
Item C2
Balance Sheet
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 11/18/2015 Page 16 / 26
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Community Redevelopment
Authority (CRA)
Wednesday, November 18, 2015
Regular Meeting
Item D1
Bills
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 11/18/2015 Page 18 / 26
18-Nov-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 $ 3,450.34
Officenet Inc.
Postage
Lawnscape 408 E 2nd St
Nuance software paid on Planning Credit card $ 69.99
Grand Island Independent $ 32.02
Regional Planning my Sidewalk software $ 800.00
TIF Pass Thrus
Wells Fargo Lincoln Pool Bond $186,306.25
Bacon & Vinton LLC T & S Land TIF $5,000.00
Mayer, Burns, Koenig & Janulewicz Legal Services $ 150.00
Total:
$ 195,808.60
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Community Redevelopment
Authority (CRA)
Wednesday, November 18, 2015
Regular Meeting
Item E1
Committed Projects
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 11/18/2015 Page 20 / 26
COMMITTED PROJECTS TOTAL AMOUNT 2016 FISCAL YR 2017 FISCAL YR 2018 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
MMY Hospitality, LLC - 2311 S
Locust St
$ 56,900.00 $ 56,900.00 2016
RIGI Hospitality, LLC - 3021 S
Locust St
$ 107,000.00 $ 107,000.00 2016
Wing Properties - 116 E 3rd St $ 68,132.00 $ 68,132.00 2016
Wing Properties - 110-114 E
3rd St
$ 167,016.00 $ 167,016.00 2017
Bosselman Real Estate $ 300,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 2018
Zoul Properties - 1201 S
Locust Street
$ 90,000.00 $ 90,000.00 2016
Tower 217 (Amos Investment
& Development)$ 198,964.00 $ 99,482.00 $ 99,482.00 2017
$ -
Total Committed $1,142,502.00 $ 676,004.00 $ 366,498.00 $ 100,000.00
FIRE & LIFE SAFETY GRANT TOTAL AMOUNT 2016 FISCAL YR 2017 FISCAL YR 2018 FISCAL
YR
ESTIMATED
COMP
Federation of Labor - Tom
Ziller
$115,000 $ 115,000.00 2016
Total Commited F&L Safety
Grant
$230,000 $ 115,000.00 $ 115,000.00
Life Safety Budget $
Remaining
$ 285,000.00
Façade Budget $ Remaining $ 350,000.00
Other Projects $ 818,972.00
Land - Budget $ Remaining $ 200,000.00
Land Sales
($100,000.00)
subtotal $ 1,553,972.00
Less committed $ (676,004.00)$ (366,498.00)
Balance remaining $877,968.00 $ (366,498.00)
CRA PROPERTIES
Address Purchase Price Purchase Date Demo Cost Status
408 E 2 nd St $4,869 11/11/2005 $7,500 Surplus
3235 S Locust $450,000 4/2/2010 $39,764 Surplus
604-612 W 3rd $80,000 6/10/2015 Surplus
October 31, 2015
Grand Island Regular Meeting - 11/18/2015 Page 21 / 26
Community Redevelopment
Authority (CRA)
Wednesday, November 18, 2015
Regular Meeting
Item H1
Agreement for Replacement of Developer & Owner
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 11/18/2015 Page 22 / 26
AGREEMENT FOR REPLACEMENT OF DEVELOPER AND OWNER
LOW INCOME HOUSING TAX CREDIT PROJECT
THIS AGREEMENT FOR REPLACEMENT OF DEVELOPER AND OWNER is entered into this
12th day of November 2015 by and among Pridon/Grand Island LLC (Developer and Owner);
Pioneer Group, Inc. (Replacement Developer); Victory Place, LLC (Replacement Owner) and
Nebraska Investment Finance Authority (NIFA).
Whereas Developer and Owner submitted an application for Low Income Housing Tax Credits
(LIHTCs) to NIFA for a certain housing project located at 2325 North Broadwell Avenue, Grand
Island, Nebraska 68803 (Housing Project); and
Whereas, NIFA has allocated $412,065 of LIHTC to the Owner for the Housing Project in
February 2015; and
Whereas, Developer and Owner desire to be removed as the owner and developer of the
Housing Project and desire for NIFA to approve their replacement with the Replacement
Developer and Replacement Owner; and
Whereas, Replacement Developer and Replacement Owner desire to serve as the developer
and owner for the Housing Project; and
Whereas, Developer and Owner and Replacement Developer and Replacement Owner desire to
identify and agree to those development expenses that the Replacement Developer and
Replacement Owner will pay; and
Whereas, Developer and Owner desire to transfer site control to Replacement Developer and
Replacement Owner; and
Whereas, Replacement Developer and Replacement Owner desire to be approved by NIFA prior
to its approval of a 2015 Carryover Allocation Agreement for the LIHTC awarded to the Housing
Project; and
Whereas Replacement Developer and Replacement Owner desire that NIFA approve a 2015
Carryover Allocation Agreement for the LIHTC and to issue the Carryover Allocation Agreement
to the Replacement Owner.
Now therefore in consideration for the mutual promises contained herein and other valuable
consideration the Parties agree to the following:
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1. Replacement of Developer and Owner.
Developer and Owner hereby agree to be removed as developer and owner of the Housing
Project. Further Developer and Owner understand and agree that they shall have no duty,
power or authority, right or responsibilities for the Housing Project or the allocation of LIHTC by
NIFA.
Replacement Developer and Replacement Owner hereby agree to serve as developer and
owner of the Housing Project. Further Replacement Developer and Replacement Owner
understand and agree that they shall assume all duty, power, authority, rights or
responsibilities for the Housing Project and the allocation of LIHTC by NIFA.
2. Agreement for development expenses that will be assigned to and be paid by the
Replacement Developer and Replacement Owner.
Replacement Developer and Replacement Owner hereby agree to accept the assignment by
Developer and Owner of the development expenses set forth on Exhibit A attached hereto and
incorporated herein. Additionally attached as Exhibits B-1 through B-32 are copies of the
invoices or other evidence of the development expenses for each of the development expenses
listed on Exhibit A. The development expenses listed on Exhibit A shall be paid as part of the
Housing Project. Those development expenses listed on Exhibit A which have been previously
paid by Developer Owner will be reimbursed to Developer Owner at financial closing. Those
Exhibit A development expenses that have not been paid by Developer Owner will be paid
directly to vendor by Replacement Owner and Replacement Developer. Replacement
Developer and Replacement Owner shall not be responsible for payment of any development
or other expenses incurred by Developer and Owner that are not identified on Exhibit A.
3. Transfer of Site Control.
Developer and Owner hereby agree to relinquish any rights to and further agree to assign,
transfer and convey any rights they have in a certain Enhanced Use Lease granted by the
Department of Veterans Affairs (VA) relating to the Grand Island VA Community Based
Outpatient Clinic. Further Replacement Developer and Replacement Owner hereby agree to
accept the assignment of the Enhanced Use Lease and will directly negotiate with the VA on the
terms and conditions to be contained in any amended and restated Enhanced Use Lease.
4. Approval of Replacement Developer and Replacement Owner by NIFA
NIFA hereby approves the removal of the Developer and Owner and further approves their
replacement with the Replacement Developer and Replacement Owner. Further NIFA agrees
that the approval of the Replacement Developer and Replacement Owner shall be made prior
Grand Island Regular Meeting - 11/18/2015 Page 24 / 26
to its approval of a 2015 Carryover Allocation Agreement for the LIHTC awarded to the Housing
Project; and
5. Approval of 2015 Carryover Allocation Agreement for the LIHTC to the Replacement
Owner
Upon receipt by NIFA of all documentation they require to issue the Carryover Allocation
Agreement, NIFA agrees to issue a 2015 Carryover Allocation Agreement for the LIHTC to the
Replacement Owner. Replacement Developer and Replacement Owner agree to be responsible
for paying for the extension fee charged by NIFA for issuance of the Carryover Allocation
Agreement after the November 1st deadline.
6. Approval of Assignment/Reissuance of Redevelopment Contract with the
Community Redevelopment Authority of the City of Grand Island, Nebraska
The Developer and Owner hereby agrees to the assignment/reissuance of the Redevelopment
Contract by and between the Community Redevelopment Authority of the City of Grand Island,
Nebraska (the “Authority”), and Pridon-Grand Island, LLC dated May 2, 2015 relating to certain
TIF Proceeds (the “Redevelopment Contract”) to the Replacement Owner. Further, the
Replacement Owner hereby agrees to acceptance of the assignment/reissuance of the
Redevelopment Agreement by the Authority. It is further understood and agreed that the
Developer and Owner hereby agrees to assign and transfer the tax increment finance
promissory note issued by the Authority (the “TIF Note”) to the Replacement Owner and the
Replacement Owner hereby agrees to accept the transfer and assignment of the TIF Note from
the Owner and be bound by all terms therein.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
SIGNATURE PAGE FOLLOWS
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IN WITNESS WHEREOF the Parties hereto have affixed their signatures effective as of
the date and year above written.
Developer and Owner
Pridon/Grand Island LLC
By: _________________________________
Dane E. Whitworth, President
Replacement Developer
Pioneer Group, Inc.
By: _________________________________
Ross R. Freeman, President
Replacement Owner
Victory Place, LLC
By: Pioneer Investment Victory Place, LLC
Its Managing Member
By: _________________________________
Ross R. Freeman, Designated Member
NIFA
Nebraska Investment Finance Authority
By: _________________________________
Timothy R. Kenny, Executive Director
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