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07-27-2016 Community Redevelopment Authority Regular Meeting Packet Community Redevelopment Authority (CRA) Wednesday, July 27, 2016 Regular Meeting Packet Board Members: Tom Gdowski - Chairman Glen Murray – Vice Chairman Sue Pirnie Glenn Wilson Krae Dutoit 4:00 PM Grand Island Regular Meeting - 7/27/2016 Page 1 / 44 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. Grand Island Regular Meeting - 7/27/2016 Page 2 / 44 Community Redevelopment Authority (CRA) Wednesday, July 27, 2016 Regular Meeting Item A1 Agenda Staff Contact: Chad Nabity Grand Island Regular Meeting - 7/27/2016 Page 3 / 44 AGENDA Wednesday, July 27, 2016 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 July 13, 2016 Meeting. 3.Consideration of a Resolution to forward a Redevelopment Plan Amendment to the Hall County Regional Planning Commission for Prataria Ventures, LLC, Grand Island, NE. 4.Consideration of a Resolution of intent to enter into a Site Specific Redevelopment Contract & Approval of related actions 30 day notice to City Council for Prataria Ventures, LLC, Grand Island, NE. 5.Budget 2016-2017. 6.Directors Report. 7.Adjournment Next Meeting August 10, 2016 The CRA may go into closed session for any agenda item as allowed by state law. Grand Island Regular Meeting - 7/27/2016 Page 4 / 44 Community Redevelopment Authority (CRA) Wednesday, July 27, 2016 Regular Meeting Item B1 Meeting Minutes Staff Contact: Chad Nabity Grand Island Regular Meeting - 7/27/2016 Page 5 / 44 OFFICIAL PROCEEDINGS MINUTES OF COMMUNITY REDEVELOPMENT AUTHORITY MEETING OF July 13, 2016 Pursuant to due call and notice thereof, a Regular Meeting of the Community Redevelopment Authority of the City of Grand Island, Nebraska was conducted on July 13, 2016 at City Hall 100 E First Street. Notice of the meeting was given in the July 6, 2016 Grand Island Independent. 1.CALL TO ORDER. Tom Gdowski called the meeting to order at 4:00 p.m. The following members were present: Sue Pirnie, Krae Dutoit, and Glen Murray. Also present were; Director, Chad Nabity; Admin Assistant, Rose Rhoads; City Administrator, Marlan Ferguson; Finance Director, Ranae Griffiths; Accountant, Brian Schultz; Council Liaison, Vaughn Minton; Bruce Shriner Mike Bacon, Tom Ziller, Dr. Ryan Crouch, Cindy Johnson, Tom Middleton, Ron Dupue and Mark Otto. Gdowski stated this was a public meeting subject to the open meeting laws of the State of Nebraska. He noted that the requirements for an open meeting were posted on the wall easily accessible to anyone who would like to read through them. 2.APPROVAL OF MINUTES. A motion for approval of Minutes for the June 8, 2016 meeting was made by Pirnie and seconded by Dutoit. 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 June 1, 2016 through June 30, 2016. A 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 Dutoit to approve the bills in the amount of $114,900.68. Upon roll call vote all present voted aye. Motion carried unanimously to approve the payment of bills totaling $114,900.68. 5.REVIEW OF COMMITTED PROJECTS & CRA PROPERTY. Nabity reviewed the Committed Projects. Removing the house demo for 211 Eddy for $15,000, there is no activity on Zoul Properties. Bosselman’s has started their façade on the former Skagway building. Chad also discussed the possibility of paying the third and final payment in December for Tower 217. 6. CONSIDERATION OF REDEVELOPMENT CONTRACT. Talon Apartments, (the “Developer”) has proposed to redevelop an area within the city limits of the City of Grand Island at the old Vanosdall ball fields. The CRA passed resolution 214 notifying Grand Island Regular Meeting - 7/27/2016 Page 6 / 44 City Council of their intent to enter into a redevelopment contract at their meeting on May 11, 2016. The Hall County Regional Planning Commission met on June 1, 2016 and passed Resolution 2016-04 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 2016-151 at their meeting on June 28, 2016. Mike Bacon noted there was one revision to the TIF contract. A motion was made by Pirnie to approve the revision of the TIF contract and was seconded by Dutoit. Upon roll call three members present (Murray, Dutoit, and Pirnie) voted aye and one member (Gdowski) abstained. Motion carried. A motion to approve Resolution 219 for Talon Apartments as amended was made by Dutoit and seconded by Murray. Upon roll call three members present (Murray, Dutoit, and Pirnie) voted aye and one member (Gdowski) abstained. Motion carried. 7. APPROVAL. Approval of Desert Rose documents to facilitate the Talon Apartment Development. A motion was made by Murray to approve the Desert Rose documents for the Talon Apartment Development and seconded by Pirnie. Upon roll call vote all present voted aye. Motion carried unanimously. 8. CONSIDERATION OF RESOLUTION 220. Gdowski pulled items 8 and 9. These were postponed and will be moved to a special meeting to be held July 27, 2016. Chief did a brief presentation of the proposed new area they are requesting TIF for. Consideration of a Resolution to forward a Site Specific redevelopment plan to the Hall County Regional Planning Commission for Prataria Ventures, LLC. The CRA received a TIF application and staff has prepared a Site Specific redevelopment plan (the “Plan”), for redevelopment of an area within city limits of the City of Grand Island, Hall County, NE. A motion was made by Pirnie and seconded by Dutoit to postpone action on Resolutions 220 and 221 until July 27, 2016. Upon roll call vote all present voted aye. Motion carried unanimously. 9. CONSIDERATION OF RESOLUTION 221. Gdowski pulled items 8 and 9. These were postponed and will be moved to a special meeting to be held July 27, 2016. Grand Island Regular Meeting - 7/27/2016 Page 7 / 44 Consideration of a Resolution of intent to enter into a Site Specific Redevelopment Contract & Approval of related actions 30 day notice to City Council for Prataria Ventures, LLC. 10. CONSIDERATION OF RESOLUTION 222. Consideration of a Resolution to forward a Site Specific redevelopment plan to the Hall County Regional Planning Commission for TW Ziller Properties LLC. The CRA received a TIF application and staff has prepared a Site Specific redevelopment plan (the “Plan”), for redevelopment of an area within city limits of the City of Grand Island, Hall County, NE. A motion was made by Murray and seconded by Pirnie to approve Resolution 222. Upon roll call vote all present voted aye. Motion carried unanimously. 11.CONSIDERATION OF RESOLUTION 223. Consideration of a Resolution of intent to enter into a Site Specific Redevelopment Contract & Approval of related actions 30 day notice to City Council for TW Ziller Properties, LLC. A motion was made by Murray and seconded by Dutoit to approve Resolution 223. Upon roll call vote all present voted aye. Motion carried unanimously. 12.CONSIDERATION OF RESOLUTION 224. Consideration of a Resolution to forward a Site Specific redevelopment plan to the Hall County Regional Planning Commission for Middleton Properties II, LLC. The CRA received a TIF application and staff has prepared a Site Specific redevelopment plan (the “Plan”), for redevelopment of an area within city limits of the City of Grand Island, Hall County, NE. A motion was made by Murray and seconded by Dutoit to approve Resolution 224. Upon roll call vote all present voted aye. Motion carried unanimously. 13.CONSIDERATION OF RESOLUTION 225. Consideration of a Resolution of intent to enter into a Site Specific Redevelopment Contract & Approval of related actions 30 day notice to City Council for Middleton Properties II, LLC. A motion was made by Murray and seconded by Pirnie to approve Resolution 225. Upon roll call vote all present voted aye. Motion carried unanimously. 14.GRANT REQUEST. Consideration of a grant request for South Locust/Fonner Park Business Improvement Districts in the amount of $30,000. The CRA received a letter from Cindy Johnson, President of the Chamber of Commerce requesting a grant to help facilitate the improvements of the landscaping along the South Locust corridor from US Hwy 34 to Grand Island Regular Meeting - 7/27/2016 Page 8 / 44 Fonner Park Road. This would be a grant to each of the BID’s in the amount of $15,000. This would be paid out in two fiscal years. A motion was made by Pirnie and seconded by Dutoit to approve the grant request in the amount of $30,000. Upon roll call vote all present voted aye. Motion carried unanimously. 15. DISCUSSION CONCERNING PURCHASE/SALE OF REAL ESTATE. No discussion. 16. APPROVE RESOLUTION OR RESOLUTIONS TO PURCHASE TO PRUCHASE/SELL REAL ESTATE. No resolutions. 17.DIRECTORS REPORT. Special meeting to be held July 27, 2016 at 4:00 p.m. This will include the 2017-2018 budget and the Prataria Ventures, LLC TIF. 18.ADJOURNMENT. Meeting was adjourned at 4:48 p.m. The next meeting is scheduled for July 27, 2016. Respectfully submitted Chad Nabity Director Grand Island Regular Meeting - 7/27/2016 Page 9 / 44 Community Redevelopment Authority (CRA) Wednesday, July 27, 2016 Regular Meeting Item H1 TIF Request Staff Contact: Chad Nabity Grand Island Regular Meeting - 7/27/2016 Page 10 / 44 Grand Island Regular Meeting - 7/27/2016 Page 11 / 44 Grand Island Regular Meeting - 7/27/2016 Page 12 / 44 Grand Island Regular Meeting - 7/27/2016 Page 13 / 44 Grand Island Regular Meeting - 7/27/2016 Page 14 / 44 Grand Island Regular Meeting - 7/27/2016 Page 15 / 44 Grand Island Regular Meeting - 7/27/2016 Page 16 / 44 Grand Island Regular Meeting - 7/27/2016 Page 17 / 44 Grand Island Regular Meeting - 7/27/2016 Page 18 / 44 Grand Island Regular Meeting - 7/27/2016 Page 19 / 44 Grand Island Regular Meeting - 7/27/2016 Page 20 / 44 Grand Island Regular Meeting - 7/27/2016 Page 21 / 44 Redevelopment Plan Amendment Grand Island CRA Area 17 June 2016 The Community Redevelopment Authority (CRA) of the City of Grand Island intends to amend the Redevelopment Plan for Area 17 within the city, pursuant to the Nebraska Community Development Law (the “Act”) and provide for the financing of a specific project in Area 17. Executive Summary: Project Description THE REDEVELOPMENT OF PROPERTY LOCATED SOUTH OF HUSKER HIGHWAY AND WEST OF U.S. HIGHWAY 281 (THE PROJECT SITE IS CURRENTLY PLATTED AS EWOLDT SUBDIVISION WHICH PLAT WILL BE VACATED AND A NEW PLAT RECORDED). THE PROJECT WILL CONSIST OF DEMOLITION OF EXISTING FARMS STRUCTURES, ALL SITE WORK AND GRADING TO PROMOTE AND ENHANCE DRAINAGE ACROSS THE SITE, INTALLATION OF ROADS, SEWER, WATER AND OTHER UTILITY INFRASTRUCTURE TO SUPPORT DEVELOPMENT OF THE SITE. THE PROJECT SHALL ALSO INCLUDE INFRASTRUCTURE IMPROVEMENTS AND MODIFICATIONS WITHIN THE PUBLIC RIGHT-OF-WAY OF HUSKER HIGHWAY (U.S. HIGHWAY 34) AND U.S. HIGHWAY 281 TO FACILITATE THE TRAFFIC THE PROJECT WILL GENERATE. THE INTIAL PHASE OF THIS DEVELOPMENT WILL CONSIST OF THE CONSTRUCTION OF A 4 STORY 64 BED HOSPITAL, A 66,000 SQUARE FOOT MEDICAL OFFICE BUILDING AND A 103 BED HOTEL WITH 7000 SQUARE FEET OF CONFERENCE/MEETING SPACE. The use of Tax Increment Financing to aid in demolition, site clearance, and necessary infrastructure and grading improvements to redevelop the southwest corner of Husker Highway and U.S. Highway 281 currently platted as Ewoldt Sub in the City of Grand Island. The use of Tax Increment Financing is an integral part of the development plan and necessary to make this project economically feasible. The project will result in the development of lots along this section of U.S. 281 toward U.S. Interstate 80. The proposed anchors for the first phase of this development location include a private hospital, medical office building and hotel with conference space. Subsequent phases of the remainder of the site include housing, office space and retail development. The developer has indicated that this development would not be considered nor financially feasible for at this location without the use of TIF. Prataria Ventures L.L.C., a wholly owned subsidiary of Chief Industries, Inc., owns the subject property. Chief Industries was founded in 1954 and is headquartered in Grand Island. The developer is responsible for and has provided evidence that they can secure adequate debt financing to cover the costs associated with the site work and remodeling. The Grand Island Community Redevelopment Authority (CRA) intends to pledge the ad Grand Island Regular Meeting - 7/27/2016 Page 22 / 44 valorem taxes generated over the 15 year period beginning January 1, 2018 towards the allowable costs. TAX INCREMENT FINANCING TO PAY FOR THE REHABILITATION OF THE PROPERTY WILL COME FROM THE FOLLOWING REAL PROPERTY: Property Description (the “Redevelopment Project Area”) Legal Descriptions: All of Ewoldt Subdivision in Grand Island, Hall County, Nebraska and the adjacent rights-of-way for Husker Highway/U.S. Highway 34, U.S. Highway 281 and Rae Road. Grand Island Regular Meeting - 7/27/2016 Page 23 / 44 Existing Land Use and Subject Property Grand Island Regular Meeting - 7/27/2016 Page 24 / 44 This plan amendment provides for the issuance TIF Notes, the proceeds of which will be granted to the Redeveloper. The tax increment will be captured for up to 15 tax years the payments for which become delinquent in years 2018 through 2032 inclusive or as otherwise dictated by the contract. The real property ad valorem taxes on the current valuation will continue to be paid to the normal taxing entities. The incremental value for the first phase will be created by the construction of a 64 bed private hospital, medical office building and hotel/conference center. This area is planned for commercial development with the Grand Island Comprehensive Plan and will need to be rezoned to either a B2 General Commercial or CD Commercial Development zone to accommodate the planned development. In addition, the current subdivision will be vacated and a new subdivision created to create the buildable lots of record for the first phase of redevelopment. Statutory Pledge of Taxes. In accordance with Section 18-2147 of the Act and the terms of the Resolution providing for the issuance of the TIF Note, the Authority hereby provides that any ad valorem tax on the Redevelopment Project Area for the benefit of any public body be divided for a period of fifteen years after the effective date of this provision as set forth in the Redevelopment Contract, consistent with this Redevelopment Plan. Said taxes shall be divided as follows: a. That portion of the ad valorem tax which is produced by levy at the rate fixed each year by or for each public body upon the redevelopment project valuation shall be paid into the funds, of each such public body in the same proportion as all other taxes collected by or for the bodies; and b. That portion of the ad valorem tax on real property in the redevelopment project in excess of such amount, if any, shall be allocated to and, when collected, paid into a special fund of the Authority to pay the principal of; the interest on, and any premiums due in connection with the bonds, loans, notes, or advances on money to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such Authority for financing or refinancing, in whole or in part, a redevelopment project. When such bonds, loans, notes, advances of money, or indebtedness including interest and premium due have been paid, the Authority shall so notify the County Assessor and County Treasurer and all ad valorem taxes upon real property in such redevelopment project shall be paid into the funds of the respective public bodies. Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged to the repayment of loans or advances of money, or the incurring of any indebtedness, whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in whole or in part, the redevelopment project, including the payment of the principal of, premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness. Redevelopment Plan Amendment Complies with the Act: Grand Island Regular Meeting - 7/27/2016 Page 25 / 44 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 June 9, 2015.[§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 rehabilitate the building for permitted uses on this property as defined by the current and effective zoning regulations. 3. The Redevelopment Plan must be sufficiently complete to address the following items: [§18-2103(13) (b)] a. Land Acquisition: This Redevelopment Plan for Area 17 does not anticipate real property acquisition by the developer. There is no proposed acquisition by the authority. b. Demolition and Removal of Structures: The project to be implemented with this plan provides for the demolition and removal of the existing abandoned farm buildings on the property. c. Future Land Use Plan See the attached map from the 2004 Grand Island Comprehensive Plan. This property is in private ownership and is planned for commercial uses [§18-2103(b) and §18-2111]. A site plan of the area after the proposed redevelopment is also attached. [§18-2111(5)] Grand Island Regular Meeting - 7/27/2016 Page 26 / 44 City of Grand Island Future Land Use Map Grand Island Regular Meeting - 7/27/2016 Page 27 / 44 Proposed Site Plan as developed. Grand Island Regular Meeting - 7/27/2016 Page 28 / 44 d. Changes to zoning, street layouts and grades or building codes or ordinances or other Planning changes. The property is currently platted as Ewoldt Subdivision. The existing Ewoldt Subdivision and all easements on the property will be vacated. The property will be replatted with a new street and lot configuration. Necessary easements will be dedicated with the new subdivision plat. The area is zoned TA Transitional Agriculture. It is anticipated that the area for the first phase of redevelopment will be rezoned to accommodate the development to a B2 General Commercial or CD Commercial Development Zone. These zoning districts at this location are consistent with the Grand Island Comprehensive Development Plan. The westerly portions of the property may be rezoned to an RO Residential Office zone that allows apartments and office buildings and which would provide a buffer between anticipated lakefront residential development to the west. Internal streets will be platted to connect James Road on the north with the intersection of James Road (Prairie View Road) and Rae Road on the south. All properties will be graded to drain appropriately and streets will be designed based on final lot elevations. Streets, utility infrastructure and grading will be completed for the whole development during the first phase of this project. No changes are anticipated in building codes or ordinances. However, the CRA intends to require enhancements to building facades as part of a public space requirement of the redevelopment project. No other planning changes contemplated. [§18-2103(b) and §18-2111] e. Site Coverage and Intensity of Use The developer is proposing to build on the site within the constraints allowed by the proposed zoning districts. The CD zoning district allows for up to 50% of the CD zone to be covered with buildings. The B2 zone would allow coverage of up to 100% of the lot less required landscaping and the RO zoning district would allow up to 75% coverage. Final zoning on the project site will have to be approved by the Grand Island City Council prior to construction. [§18-2103(b) and §18-2111] f. Additional Public Facilities or Utilities Sewer and water are available to support this development. Sufficient capacity exists within these systems to support this development at completion. Sewer, water will be extended throughout the site. The developer will be responsible for engineering and installation of all required utilities. Said utilities are expected to become part of the city infrastructure and will be accepted into the city systems after construction and inspection. Electric infrastructure will be extended throughout the site according to typical commercial installation requirements. Natural gas and communications infrastructure will be installed according to the agreements formed with the private companies that provide those services. The City of Grand Island will secure all necessary easements for utility infrastructure with the platting and development processes. Public façade easements will be acquired in all buildings constructed as part of the project. The Grand Island Regular Meeting - 7/27/2016 Page 29 / 44 Redeveloper will be required to enhance the building exteriors and façades as provided in the redevelopment contract as a part of the public space development in the project over and above Commercial Development Zone building requirements. The façade improvements are required to ensure long-term durability of the buildings to prevent the recurrence of blighted conditions, with such façade improvements protected with a grant of an easement to the City by the Redeveloper. [§18-2103(b) and §18-2111] 4. The Act requires a Redevelopment Plan provide for relocation of individuals and families displaced as a result of plan implementation. No individuals or businesses will be relocated due to this development. [§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] No members of the authority or staff of the CRA has any interest in this property. 6. Section 18-2114 of the Act requires that the Authority consider: a. Method and cost of acquisition and preparation for redevelopment and estimated proceeds from disposal to redevelopers. The developer owns this property. The developer has identified the following expenses shown as exhibit B as potentially eligible for TIF based on the costs for the first phase development and site preparation/grading, streets and utility infrastructure for the full 96 acre site at $28,910,839. Additional TIF may be generated and used for complete development of the remainder of the site for site acquisition, planning, architecture, legal and other eligible activities. Grand Island Regular Meeting - 7/27/2016 Page 30 / 44 No property will be transferred to redevelopers by the Authority. The developer will provide and secure all necessary financing. b. Statement of proposed method of financing the redevelopment project. The developer will provide all necessary financing for the project. The Authority will assist the project by granting the sum of $28,708,000 from the proceeds of the TIF Indebtedness issued by the Authority. This indebtedness will be repaid from the Tax Increment Revenues generated from the project. TIF revenues shall be made available to Grand Island Regular Meeting - 7/27/2016 Page 31 / 44 Comment [CN]: We do need to decide which year the project begins 2017 or 2018? This will impact the amount of increment based on what improvements have been completed. repay the original debt and associated interest after January 1, 2017 through December 2031. The developer will use the TIF Note to secure debt financing in an amount not to exceed $28,708,000 to be paid to the note holder during the term of the financing. c. Statement of feasible method of relocating displaced families. No families will be displaced as a result of this plan. 7. Section 18-2113 of the Act requires: Prior to recommending a redevelopment plan to the governing body for approval, an authority shall consider whether the proposed land uses and building requirements in the redevelopment project area are designed with the general purpose of accomplishing, in conformance with the general plan, a coordinated, adjusted, and harmonious development of the city and its environs which will, in accordance with present and future needs, promote health, safety, morals, order, convenience, prosperity, and the general welfare, as well as efficiency and economy in the process of development, including, among other things, adequate provision for traffic, vehicular parking, the promotion of safety from fire, panic, and other dangers, adequate provision for light and air, the promotion of the healthful and convenient distribution of population, the provision of adequate transportation, water, sewerage, and other public utilities, schools, parks, recreational and community facilities, and other public requirements, the promotion of sound design and arrangement, the wise and efficient expenditure of public funds, and the prevention of the recurrence of insanitary or unsafe dwelling accommodations or conditions of blight. The Authority has considered these elements in proposing this Plan Amendment. This amendment, in and of itself will promote consistency with the Comprehensive Plan. This will have the intended result of preventing recurring elements of blighted and substandard conditions within the area. 8. Time Frame for Development Development of this project is anticipated to be completed between September of 2016 and December of 2018. Excess valuation should be available for this project for 15 years beginning with the 2017 tax year. Additional projects may be brought forward for separate consideration on parcels located outside of this initial phase. 9. Justification of Project Demolition, extension of utilities, substantial site grading and installation of streets are necessary to facilitate redevelopment of this site. The redevelopment of this property by Prataria Ventures, LLC, will result in increased employment opportunities in the medical sector within Grand Island as well as expanded medical choices. This is a first step in extending development south along U.S. Highway 281 toward U.S. Interstate 80. The Grand Island City Council has made it clear with previous decisions that they support development toward the I-80/281 interchange. Grand Island Regular Meeting - 7/27/2016 Page 32 / 44 Comment [CN]: Again we need to confirm the start date for the contract.10. Cost Benefit Analysis The CRA will engage consultants to prepare a cost benefit analysis. The results of the analysis will be included as an appendix to this plan amendment. Time Frame for Development Development of this project is anticipated to be completed between September of 2016 and December of 2018. The base tax year should be calculated on the value of the property as of January 1, 2017. Excess valuation should be available for this project for 15 years beginning in 2017 with taxes due in 2018. Excess valuation will be used to pay the TIF Indebtedness issued by the CRA per the contract between the CRA and the developer for a period not to exceed 15 years or an amount not to exceed $28,708,000 the projected amount of increment based upon the anticipated value of the project and current tax rate. Grand Island Regular Meeting - 7/27/2016 Page 33 / 44 Prataria Ventures, LLC COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA RESOLUTION NO. 220 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 ___________, 2016. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA. By___________________________ Chairperson ATTEST: __________________________ Secretary Grand Island Regular Meeting - 7/27/2016 Page 34 / 44 Prataria Ventures, LLC COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA RESOLUTION NO. 221 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 17, from Prataria Ventures, 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 17; 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 __________, 2016. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA. By ___________________________ Chairperson ATTEST: ___________________ Secretary Grand Island Regular Meeting - 7/27/2016 Page 35 / 44 Community Redevelopment Authority (CRA) Wednesday, July 27, 2016 Regular Meeting Item K1 Budget Staff Contact: Chad Nabity Grand Island Regular Meeting - 7/27/2016 Page 36 / 44 July 20, 2016 From: Chad Nabity, AICP Director To:CRA Board Re: 2016-2017 Budget Enclosed you will find a draft of the 2016-2017 CRA Budget. The 2016-2017 CRA Budget is presented with projected revenue from taxes of $746,000 the levy from last year is being retained and includes about $548,000 for CRA purposes including grants, façade improvements, committed projects and staffing as well as $198,000 for Lincoln Park Pool. This budget does project $100,000 of revenue for property sales during the upcoming year but has enough flexibility to accomplish all of budgeted activities without this occurrence. The budget includes $200,000 for façade improvement. I am anticipating some significant requests on a couple of different projects. I am suggesting we budget $80,000 for property acquisitions. This budget also includes $200,000 for downtown life safety improvements along with a carryover of $65,000 of funds that have not yet been designated for this year. (We have an application for $200,000 of grant funds for the Hedde Building that will be considered for the August CRA meeting.) This program was intended to run for 5 years with $100,000 contributed annually from both the CRA and the City. I am suggesting that we put $100,000 in the other projects line. This money could be shifted to property purchase, grants or façade improvements depending on the need. Budgeting money in other projects makes it possible for the CRA to consider purchases like heating the sheep barn at Fonner Park or helping pay for the demolition of the Aurora Coop buildings. The CRA made substantial commitments to façade projects at the end of the 2015 fiscal year and the budget for this fiscal year reflects those commitments and fully funds the payout of those obligations. We did change the line item for Building Improvement to Committed Projects Carryover to more accurately describe what this line contains. I am anticipating that we will payout $475,000 of committed projects during this fiscal year and $935,000 during the next year. Please let me know if you have any additional feedback on the budget as presented. Grand Island Regular Meeting - 7/27/2016 Page 37 / 44 As of 6/30/16 2015-2016 2016 REMAINING EXPECTED 2017 YEAR TO DATE BUDGET BALANCE YEAR END BUDGET CONSOLIDATED Beginning Cash 841,354 841,354 841,354 841,354 901,546 REVENUE: Property Taxes - CRA 383,509 534,000 150,491 534,000 548,641 Property Taxes - Lincoln Pool 124,262 198,050 73,788 198,050 198,050 Property Taxes -TIF's 439,377 2,041,892 1,680,042 770,556 1,809,856 Loan Income (Poplar Street Water Line)640 - - 7,500 8,000 Interest Income - CRA 121 300 179 300 300 Interest Income - TIF'S 8 - - 23,720 23,720 Land Sales - 100,000 100,000 - 250,000 Other Revenue - CRA 17,316 130,000 112,684 130,000 130,000 Other Revenue - TIF's - - - - - TOTAL REVENUE 965,235 3,004,242 2,117,183 1,664,126 2,968,567 TOTAL RESOURCES 1,806,589 3,845,596 2,958,537 2,505,480 3,870,113 EXPENSES Auditing & Accounting - 5,000 5,000 5,000 5,000 Legal Services 1,005 3,000 1,995 2,000 3,000 Consulting Services - 5,000 5,000 - 5,000 Contract Services 51,478 65,000 13,522 75,000 75,000 Printing & Binding - 1,000 1,000 - 1,000 Other Professional Services 8,698 16,000 7,302 9,000 16,000 General Liability Insurance - 250 250 - 250 Postage 71 350 279 100 200 Life Safety - 285,000 285,000 - 265,000 Legal Notices 144 2,000 1,856 1,500 500 Licenses & Fees 53 - - - - Travel & Training - 1,000 1,000 - 1,000 Other Expenditures - - - - - Office Supplies 926 400 - 1,100 1,000 Supplies - 300 300 50 300 Land - 200,000 200,000 - 50,000 Bond Principal - Lincoln Pool 175,000 - - 175,000 175,000 Bond Interest 22,088 - - 22,088 20,863 Façade Improvement - 350,000 350,000 - 200,000 Building Improvement 350,855 368,972 18,117 475,000 835,148 Other Projects 525 450,000 449,476 15,525 50,000 Bond Principal-TIF's 339,755 1,290,022 1,006,141 777,245 1,815,774 Bond Interest-TIF's 22,663 31,070 8,949 45,326 17,463 Interest Expense - - - - - TOTAL EXPENSES 973,259 3,074,364 2,355,187 1,603,934 3,537,497 INCREASE(DECREASE) IN CASH (8,024) (70,122) (238,004) 60,192 (568,930) ENDING CASH 833,330 771,232 603,350 901,546 332,615 CRA CASH 534,449 634,140 62,683 Lincoln Pool Tax Income Balance 176,208 249,996 252,183 TIF CASH 122,673 17,410 17,749 Total Cash 833,330 901,546 332,615 COMMUNITY REDEVELOPMENT AUTHORITY 16-17 BUDGET Grand Island Regular Meeting - 7/27/2016 Page 38 / 44 As of 6/30/16 2015-2016 2016 REMAINING EXPECTED 2017 YEAR TO DATE BUDGET BALANCE YEAR END BUDGET COMMUNITY REDEVELOPMENT AUTHORITY 16-17 BUDGET CRA GENERAL OPERATIONS: Property Taxes - CRA 383,509 534,000 150,491 534,000 548,641 Property Taxes - Lincoln Pool 124,262 198,050 73,788 198,050 198,050 Interest Income 121 300 179 300 300 Loan Income (Poplar Street Water Line)640 - - 7,500 8,000 Land Sales - 100,000 100,000 - 250,000 Other Revenue & Motor Vehicle Tax 17,316 130,000 112,684 130,000 130,000 - TOTAL 525,850 962,350 437,141 869,850 1,134,991 GENTLE DENTAL Property Taxes 5,084 - - 3,598 3,598 Interest Income 1 - - 404 404 TOTAL 5,085 - - 4,002 4,002 PROCON TIF Property Taxes 28,188 19,162 - 15,601 15,601 Interest Income 3 - - 4,101 4,101 TOTAL 28,191 19,162 - 19,702 19,702 WALNUT HOUSING PROJECT Property Taxes 34,977 74,472 39,495 55,257 55,257 Interest Income 4 - 19,215 19,215 TOTAL 34,981 74,472 39,495 74,472 74,472 BRUNS PET GROOMING Property Taxes 13,809 13,500 - 13,500 13,500 TOTAL 13,809 13,500 - 13,500 13,500 GIRARD VET CLINIC Property Taxes 5,113 14,500 9,387 14,500 14,500 TOTAL 5,113 14,500 9,387 14,500 14,500 GEDDES ST APTS-PROCON Property Taxes 28,334 30,000 1,667 30,000 30,000 TOTAL 28,334 30,000 1,667 30,000 30,000 SOUTHEAST CROSSING Property Taxes 9,754 15,000 5,246 15,000 18,000 TOTAL 9,754 15,000 5,246 15,000 18,000 POPLAR STREET WATER Property Taxes 5,751 6,000 249 7,500 8,000 TOTAL 5,751 6,000 249 7,500 8,000 CASEY'S @ FIVE POINTS Property Taxes 4,655 10,000 5,345 10,000 10,000 TOTAL 4,655 10,000 5,345 10,000 10,000 Grand Island Regular Meeting - 7/27/2016 Page 39 / 44 As of 6/30/16 2015-2016 2016 REMAINING EXPECTED 2017 YEAR TO DATE BUDGET BALANCE YEAR END BUDGET COMMUNITY REDEVELOPMENT AUTHORITY 16-17 BUDGET SOUTH POINTE HOTEL PROJECT Property Taxes 45,061 90,000 44,939 90,000 90,000 TOTAL 45,061 90,000 44,939 90,000 90,000 TODD ENCK PROJECT Property Taxes 3,410 6,000 2,590 6,000 6,000 TOTAL 3,410 6,000 2,590 6,000 6,000 JOHN SCHULTE CONSTRUCTION Property Taxes 2,632 6,000 3,368 6,000 6,000 TOTAL 2,632 6,000 3,368 6,000 6,000 PHARMACY PROPERTIES INC Property Taxes 5,995 11,000 5,005 11,000 11,000 TOTAL 5,995 11,000 5,005 11,000 11,000 KEN-RAY LLC Property Taxes 42,273 34,000 - 85,000 85,000 TOTAL 42,273 34,000 - 85,000 85,000 TOKEN PROPERTIES RUBY Property Taxes 1,559 1,458 - 1,500 1,500 TOTAL 1,559 1,458 - 1,500 1,500 GORDMAN GRAND ISLAND Property Taxes 9,770 40,000 30,230 40,000 40,000 TOTAL 9,770 40,000 30,230 40,000 40,000 BAKER DEVELOPMENT INC Property Taxes 3,504 3,000 - 3,000 3,000 TOTAL 3,504 3,000 - 3,000 3,000 STRATFORD PLAZA INC Property Taxes 12,454 35,000 22,546 35,000 35,000 TOTAL 12,454 35,000 22,546 35,000 35,000 COPPER CREEK 2013 Houses Property Taxes 40,644 - - 80,000 80,000 TOTAL 40,644 - - 80,000 80,000 FUTURE TIF'S Property Taxes - 882,800 882,800 - 900,000 TOTAL - 882,800 882,800 - 900,000 CHIEF INDUSTRIES AURORA COOP Property Taxes 19,737 - (19,737) 40,000 40,000 TOTAL 19,737 - (19,737) 40,000 40,000 Grand Island Regular Meeting - 7/27/2016 Page 40 / 44 As of 6/30/16 2015-2016 2016 REMAINING EXPECTED 2017 YEAR TO DATE BUDGET BALANCE YEAR END BUDGET COMMUNITY REDEVELOPMENT AUTHORITY 16-17 BUDGET TOKEN PROPERTIES KIMBALL ST Property Taxes 1,382 - (1,382) 2,700 2,700 TOTAL 1,382 - (1,382) 2,700 2,700 GI HABITAT OF HUMANITY Property Taxes 2,180 - (2,180) 4,200 8,000 TOTAL 2,180 - (2,180) 4,200 8,000 AUTO ONE INC Property Taxes 6,002 - (6,002) 11,000 11,000 TOTAL 6,002 - (6,002) 11,000 11,000 EIG GRAND ISLAND Property Taxes 26,539 - (26,539) 50,000 50,000 TOTAL 26,539 - (26,539) 50,000 50,000 TOKEN PROPERTIES CARY ST Property Taxes 3,959 - (3,959) 8,000 8,000 TOTAL 3,959 - (3,959) 8,000 8,000 WENN HOUSING PROJECT Property Taxes 2,179 - (2,179) 4,200 4,200 TOTAL 2,179 - (2,179) 4,200 4,200 COPPER CREEK 2014 Houses Property Taxes 60,846 - (60,846) 100,000 200,000 TOTAL 60,846 - (60,846) 100,000 200,000 TC ENCK BUILDERS Property Taxes - - - 3,000 TOTAL - - - 3,000 SUPER MARKET DEVELOPERS Property Taxes - - - 20,000 TOTAL - - - 20,000 MAINSTAY SUITES Property Taxes 12,961 (12,961) 25,000 25,000 TOTAL 12,961 - (12,961) 25,000 25,000 TOWER 217 Property Taxes 626 (626) 3,000 12,000 TOTAL 626 - (626) 3,000 12,000 TOTAL REVENUE 965,235 3,004,242 1,664,126 2,968,567 Grand Island Regular Meeting - 7/27/2016 Page 41 / 44 As of 6/30/16 2015-2016 2016 REMAINING EXPECTED 2017 YEAR TO DATE BUDGET BALANCE YEAR END BUDGET COMMUNITY REDEVELOPMENT AUTHORITY 16-17 BUDGET EXPENSES - - - - CRA GENERAL OPERATIONS: Auditing & Accounting - 5,000 5,000 5,000 5,000 Legal Services 1,005 3,000 1,995 2,000 3,000 Consulting Services - 5,000 5,000 - 5,000 Contract Services 51,478 65,000 13,522 75,000 75,000 Printing & Binding - 1,000 1,000 - 1,000 Other Professional Services 8,698 16,000 7,302 9,000 16,000 General Liability Insurance - 250 250 - 250 Postage 71 350 279 100 200 Lifesafety Grant - 285,000 285,000 265,000 Legal Notices 144 2,000 1,856 1,500 500 Travel & Training - 1,000 1,000 - 1,000 Office Supplies 926 400 - 1,100 1,000 Supplies - 300 300 50 300 Land - 200,000 200,000 - 50,000 Bond Principal - Lincoln Pool 175,000 - - 175,000 175,000 Bond Interest - Lincoln Pool 22,088 - - 22,088 20,863 PROJECTS Façade Improvement - 350,000 350,000 200,000 Building Improvement 350,855 368,972 18,117 475,000 835,148 Other Projects 525 450,000 449,476 15,525 50,000 TOTAL CRA EXPENSES 610,841 1,753,272 1,340,097 781,363 1,704,261 GENTLE DENTAL Bond Principal 3,660 - 7,319 3,917 Bond Interest 542 - 1,085 285 TOTAL GENTLE DENTAL 4,202 - - 8,404 4,202 PROCON TIF Bond Principal 15,325 13,355 - 30,649 16,416 Bond Interest 3,837 5,807 1,970 7,675 2,747 TOTAL PROCON TIF 19,162 19,162 1,970 38,324 19,163 WALNUT HOUSING PROJECT Bond Principal 56,188 49,209 - 112,376 60,041 Bond Interest 18,284 25,263 6,979 36,567 14,431 TOTAL WALNUT HOUSING 74,472 74,472 6,979 148,944 74,472 BRUNS PET GROOMING Bond Principal 7,315 13,500 6,185 13,000 13,500 TOTAL BRUNS PET GROOMING 7,315 13,500 6,185 13,000 13,500 GIRARD VET CLINIC Bond Principal 418 14,500 14,082 10,000 14,500 TOTAL GIRARD VET CLINIC 418 14,500 14,082 10,000 14,500 GEDDES ST APTS - PROCON Bond Principal 28,334 30,000 1,667 30,000 30,000 TOTAL GEDDES ST APTS - PROCON 28,334 30,000 1,667 30,000 30,000 Grand Island Regular Meeting - 7/27/2016 Page 42 / 44 As of 6/30/16 2015-2016 2016 REMAINING EXPECTED 2017 YEAR TO DATE BUDGET BALANCE YEAR END BUDGET COMMUNITY REDEVELOPMENT AUTHORITY 16-17 BUDGET SOUTHEAST CROSSINGS Bond Principal 8,451 15,000 6,549 18,000 18,000 TOTAL SOUTHEAST CROSSINGS 8,451 15,000 6,549 18,000 18,000 POPLAR STREET WATER Bond Principal 2,124 6,000 3,876 10,000 8,000 TOTAL POPLAR STREET WATER 2,124 6,000 3,876 10,000 8,000 CASEY'S @ FIVE POINTS Bond Principal 380 10,000 9,620 8,600 10,000 TOTAL CASEY'S @ FIVE POINTS 380 10,000 9,620 8,600 10,000 SOUTH POINTE HOTEL PROJECT Bond Principal 45,061 90,000 44,939 88,000 90,000 TOTAL SOUTH POINTE HOTEL PROJECT 45,061 90,000 44,939 88,000 90,000 TODD ENCK PROJECT Bond Principal 279 6,000 5,721 8,800 6,000 TOTAL TODD ENCK PROJECT 279 6,000 5,721 8,800 6,000 JOHN SCHULTE CONSTRUCTION Bond Principal 2,723 6,000 3,277 6,000 6,000 TOTAL JOHN SCHULTE CONSTRUCITON 2,723 6,000 3,277 6,000 6,000 PHARMACY PROPERTIES INC Bond Principal 5,995 11,000 5,005 11,500 11,000 TOTAL PHARMACH PROPERTIES INC 5,995 11,000 5,005 11,500 11,000 KEN-RAY LLC Bond Principal 42,273 34,000 - 45,000 85,000 TOTAL KEN-RAY LLC 42,273 34,000 - 45,000 85,000 TOKEN PROPERTIES RUBY Bond Principal 127 1,458 1,331 1,500 1,500 TOTAL COUNTY FUND #8598 127 1,458 1,331 1,500 1,500 GORDMAN GRAND ISLAND Bond Principal 9,770 40,000 30,230 40,000 40,000 TOTAL GORDMAN GRAND ISLAND 9,770 40,000 30,230 40,000 40,000 BAKER DEVELOPMENT INC Bond Principal 1,817 3,000 1,183 3,400 3,000 TOTAL BAKER DEVELOPMENT INC 1,817 3,000 1,183 3,400 3,000 STRATFORD PLAZA LLC Bond Principal 12,454 35,000 22,546 35,000 35,000 TOTAL STRATFORD PLAZA LLC 12,454 35,000 22,546 35,000 35,000 COPPER CREEK 2013 Houses Bond Principal 34,993 - - 80,000 80,000 TOTAL COPPER CREEK 34,993 - - 80,000 80,000 Grand Island Regular Meeting - 7/27/2016 Page 43 / 44 As of 6/30/16 2015-2016 2016 REMAINING EXPECTED 2017 YEAR TO DATE BUDGET BALANCE YEAR END BUDGET COMMUNITY REDEVELOPMENT AUTHORITY 16-17 BUDGET CHIEF INDUSTRIES AURORA COOP Bond Principal 1,612 (1,612) 36,500 40,000 TOTAL CHIEF IND AURORA COOP 1,612 (1,612) 36,500 40,000 TOKEN PROPERTIES KIMBALL STREET Bond Principal 1,382 (1,382) 2,600 2,700 TOTAL TOKEN PROPERTIES KIMBALL ST 1,382 (1,382) 2,600 2,700 GI HABITAT FOR HUMANITY Bond Principal 178 (178) 4,000 8,000 TOTAL BLANK 178 (178) 4,000 8,000 AUTO ONE INC Bond Principal 490 (490) 11,000 11,000 TOTAL AUTO ONE INC 490 (490) 11,000 11,000 EIG GRAND ISLAND Bond Principal 2,168 (2,168) 26,000 50,000 TOTAL BLANK 2,168 (2,168) 26,000 50,000 TOKEN PROPERTIES CARY STREET Bond Principal 3,959 (3,959) 7,600 8,000 TOTAL TOKEN PROPERTIES CARY ST 3,959 (3,959) 7,600 8,000 WENN HOUSING PROJECT Bond Principal 2,179 (2,179) 4,200 4,200 TOTAL WENN HOUSING PROJECT 2,179 (2,179) 4,200 4,200 COPPER CREEK 2014 Homes Bond Principal 48,992 (48,992) 100,000 200,000 TOTAL COPPER CREEK 2014 Homes 48,992 (48,992) 100,000 200,000 TC ENCK BUILDERS Bond Principal - - 3,000 TOTAL TC ENCK BUILDERS - - 3,000 SUPER MARKET DEVELOPERS Bond Principal - - 20,000 TOTAL SUPER MARKET DEVELOPERS - - 20,000 MAINSTAY SUITES Bond Principal 1,059 (1,059) 25,000 25,000 TOTAL MAINSTAY SUITES 1,059 (1,059) 25,000 25,000 TOWER 217 Bond Principal 51 (51) 1,200 12,000 TOTAL TOWER 217 51 (51) 1,200 12,000 FUTURE TIF'S Bond Principal - 162,000 162,000 900,000 TOTAL FUTURE TIF'S - 162,000 162,000 900,000 TOTAL EXPENSES 973,259 3,074,364 1,603,934 3,537,497 Grand Island Regular Meeting - 7/27/2016 Page 44 / 44