01-11-2017 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, January 11, 2017
Regular Meeting Packet
Board Members:
Tom Gdowski - Chairman
Glen Murray – Vice Chairman
Sue Pirnie
Glenn Wilson
Krae Dutoit
4:00 PM
City Hall
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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, January 11, 2017
Regular Meeting
Item -1
Audit
Staff Contact: Chad Nabity
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COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
FINANCIAL STATEMENTS AND
SUPPLEMENTARY INFORMATION
September 30, 2016
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1
TABLE OF CONTENTS Page
INDEPENDENT AUDITOR’S REPORT 2
MANAGEMENT’S DISCUSSION AND ANALYSIS 5
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Position 11
Statement of Activities 12
Fund Financial Statements
Balance Sheet - Governmental Fund 13
Reconciliation of the Balance Sheet - Governmental Fund
to the Statement of Net Position 14
Statement of Revenues, Expenditures, and Changes in Fund Balance -
Governmental Fund 15
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balance - Governmental Fund to the
Statement of Activities 16
Notes to Financial Statements 17
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule 39
Note to Required Supplementary Information 40
SUPPLEMENTARY INFORMATION
Schedule of Expenditures - General Fund 41
Independent Auditor’s Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance With Government Auditing Standards 43
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3
no such opinion. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities and the major fund of the
Community Redevelopment Authority of Grand Island, Nebraska, as of September 30, 2016, and
the respective changes in financial position, thereof for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Other Matters
The financial statements present only the Community Redevelopment Authority of Grand Island,
Nebraska component unit and do not purport to, and do not, present fairly the financial position
of the City of Grand Island, Nebraska, as of September 30, 2016, and the change in its financial
position and cash flows for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and budgetary comparison information on pages 5–10 and
39–40 be presented to supplement the basic financial statements. Such information, although not
a part of the basic financial statements, is required by the Governmental Accounting Standards
Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have
applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Community Redevelopment Authority of Grand Island, Nebraska’s
basic financial statements. The schedule of expenditures for the General Fund is presented for
purposes of additional analysis and is not a required part of the basic financial statements. The
schedule of expenditures for the General Fund is the responsibility of management and was
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COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For The Year Ended September 30, 2016
5
MANAGEMENT’S DISCUSSION AND ANALYSIS
As management of the Community Redevelopment Authority of Grand Island, Nebraska, we
offer readers of the Community Redevelopment Authority of Grand Island, Nebraska financial
statements this narrative overview and analysis of the financial activities of the Community
Redevelopment Authority of Grand Island, Nebraska, for the fiscal year ended September 30,
2016.
Financial Highlights
• The assets of the Community Redevelopment Authority of Grand Island, Nebraska,
exceeded its liabilities at the close of the most recent fiscal year by $250,972 (net position).
Of this amount, there was a deficit balance of ($443,140) in unrestricted net position,
which may be used to meet the government’s ongoing obligations to citizens and creditors.
• At the end of the current fiscal year, unassigned fund balance for the General Fund was a
deficit balance of $(145,462).
Program Highlights
• The CRA will continue to emphasize the acquisition and demolition of substandard
properties. The CRA and City Council will continue to encourage developers to look for
areas of “Micro-Blight” that could be significantly improved by the acquisition, demolition
and construction of a new residential unit or units.
• The CRA will continue to direct attention toward business/industry developments that
result in economic development and the creation of new jobs. These efforts may include
tax increment financing (TIF), infrastructure development, land acquisition, or other types
of allowable assistance. The City of Grand Island and the CRA also approved the use of
TIF to support the development of several businesses in Grand Island, including an
expansion for Bosselman Corporation and Middleton Electric. The CRA worked on a
redevelopment plan and TIF application for a proposed hospital and associated
development in Redevelopment Area 17 at the southwest corner of U.S. Highway 281 and
Husker Highway. This proposed development is hoped to spur development toward
Interstate 80. Two large apartment developments were approved with 288 units north of
the South Walmart on Husker Highway (U.S. Highway 34) and 88 units in the final phase
of the Cherry Park Apartments on Stuhr Road north of Bismark Avenue.
• The CRA will continue to look for areas ripe for redevelopment and encourages private
individuals and developers to submit blighted and substandard studies to the Grand Island
City Council for consideration. During 2014, the CRA contracted to have a blighted and
substandard study conducted for the Veteran’s Home Property. The study was completed
and presented to the CRA in November of 2014. On December 1, 2015, Governor Pete
Ricketts announced plans to return the Veteran’s Home Property to the City of Grand
Island. A portion of that property has been deeded back to the City, with the remainder
committed for return after the closure of the Grand Island Veterans Home. The City will be
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COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
For The Year Ended September 30, 2016
6
moving forward with redevelopment plans. Those plans are likely to include declaration of
the area as blighted and substandard with TIF being used to redevelop the property. This
year the City Council also approved Redevelopment Area 19 north of Husker Highway and
east of Locust Street (Vanosdall ball fields). The first phase of the Talon apartments has
been built there.
• The CRA has developed strategies to limit the exposure of the CRA and the City when a
TIF project is approved. Primarily this is done with the TIF contract. The CRA issues a
TIF bond that the developer funds through a private investor or financial institution. The
bond is repaid from the TIF revenue generated from the project on its TIF-eligible
expenses. The bond is limited to no more than 15 years from the time it is issued or
amended. The bond amount is capped at either the TIF-eligible expenses or the amount of
TIF generated by the project over its life.
• The CRA will continue to work with housing providers, including Habitat for Humanity
and the Housing Development Corporation. The CRA actively seeks out opportunities to
partner with these types of organizations to provide quality and affordable housing in Grand
Island. The third phase of the Copper Creek subdivision included 69 new houses during
the 2016 year.
• The CRA continues to work with Downtown, and is supportive of continued efforts to
redevelop buildings, especially on the upper floors. During the 2016 year, the CRA
approved two grants of $220,000 under the upper-story Life Safety program. The Hedde
Building was awarded $200,000 and the west side of the Williamson Building was awarded
$20,000. The CRA also approved TIF for the redevelopment of Williamson Building and
the Federation of Labor Temple Building. The 2017 budget includes $265,000 ($100,000
each from the City and the CRA and $65,000 of carryover funds from 2016) for life safety
infrastructure grants in the downtown area for projects that include upper story residential
development. The CRA has made the final payment on the Life Safety grant awarded to
Tower 2017 (the Masonic Temple Building). The first through third floors of the building
are occupied and construction has started on the fourth and fifth floors.
• The CRA approved tax increment financing for a project along South Locust for the Talon
Apartments. Final build out is expected to be 288 units over a 4 to 8 year period. A project
was approved for additional 88 apartments at the final phase of the Cherry Park Apartments
on Stuhr Road north of Bismark Avenue.
• The redevelopment of the Skagway property at 5 Points is largely complete with a new
Super Saver Store open there. One lot for additional development remains east of the new
grocery store. The veterans’ housing project has been completed and opened in November
of 2016. Hatchery Holdings LLC has started construction of the hatchery approved at Platte
Valley Industrial Park East. It is to open in 2017.
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COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
For The Year Ended September 30, 2016
7
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Community
Redevelopment Authority of Grand Island, Nebraska’s basic financial statements. The
Community Redevelopment Authority of Grand Island, Nebraska’s basic financial statements
comprise three components: 1) government-wide financial statements, 2) fund financial
statements, and 3) notes to the financial statements. This report also contains required and
supplementary information in addition to the basic financial statements themselves.
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the Community Redevelopment Authority
of Grand Island, Nebraska’s finances in a manner similar to a private-sector business.
The statement of net position presents information on all of the Community Redevelopment
Authority of Grand Island, Nebraska’s assets and liabilities, with the difference between the two
reported as net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the Community Redevelopment Authority of Grand
Island, Nebraska, is improving or deteriorating.
The statement of activities presents information showing how the government’s net position
changed during the most recent fiscal year. All changes in net position are reported as soon as
the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will only
result in cash flows in future fiscal periods.
The government-wide financial statements include only the CRA itself (known as the primary
government).
The government-wide financial statements can be found on pages 11 and 12 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The
Community Redevelopment Authority of Grand Island, Nebraska, uses fund accounting to ensure
and demonstrate compliance with finance-related legal requirements.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However,
unlike the government-wide financial statements, governmental fund financial statements focus
on near-term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a
government’s near-term financing requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the government’s near-term
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COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
For The Year Ended September 30, 2016
8
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The Community Redevelopment Authority of Grand Island, Nebraska, maintains one individual
governmental fund, the General Fund.
The Community Redevelopment Authority of Grand Island, Nebraska, adopts an annual
appropriated budget for its governmental fund. A budgetary comparison statement has been
provided to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 13-16 of this report.
Notes to the financial statements. The notes provide additional information that is essential to
a full understanding of the data provided in the government-wide and fund financial statements.
The notes to the financial statements can be found on pages 17-38 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the Community
Redevelopment Authority of Grand Island, Nebraska’s budgetary comparison schedule.
Required supplementary information can be found on pages 39 and 40 of this report.
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government’s
financial position. In the case of the Community Redevelopment Authority of Grand Island,
Nebraska, assets exceeded liabilities by $250,972 at the close of the most recent fiscal year.
Increase
2016 2015 (Decrease)
Current and Other Assets 1,336,462$ 1,384,486$ (48,024)$
Capital Assets 575,369 575,369 -
Total Assets 1,911,831 1,959,855 (48,024)
Long-term Liabilities 1,303,701 1,561,669 (257,968)
Other Liabilities 357,158 324,731 32,427
Total Liabilities 1,660,859 1,886,400 (225,541)
Net Position:
Net investment in capital assets 575,369 575,369 -
Restricted 118,743 158,672 (39,929)
Unrestricted (443,140) (660,586) 217,446
Total Net Position 250,972$ 73,455$ 177,517$
Summary Statements of Net Position
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COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
For The Year Ended September 30, 2016
9
A significant portion of the Community Redevelopment Authority of Grand Island, Nebraska’s
net position ($575,369) reflects its investment in capital assets (land held for redevelopment).
These assets are not available for future spending.
Net position of $118,743 is restricted for redevelopers and for life safety grants. The remaining
balance of unrestricted net position is a deficit balance of ($443,140). Unrestricted net position
may be used to meet the government’s ongoing obligations to citizens and creditors.
Net position increased $177,517 for the year ended September 30, 2016.
Expenses and Program Revenues
Year Ended September 30, 2016 Year Ended September 30, 2015
Program Program Program Program
Revenues Expenses Revenues Expenses
General government $ - $ 71,972 $ - $ 77,524
Community development 706,427 1,162,173 1,242,099 1,494,177
Interest expense - 45,276 - 50,541
Total $ 706,427 $ 1,279,421 $ 1,242,099 $ 1,622,242
SOURCES OF REVENUE
Operating grants and contributions 706,427$ 48.49 %1,242,099$ 63.46 %
Property taxes 725,532 49.80 687,932 35.14
Interest 173 0.01 159 0.01
Other income 24,806 1.70 27,263 1.39
Total 1,456,938$ 100.00 %1,957,453$ 100.00 %
Year Ended September 30, 2016 Year Ended September 30, 2015
Revenues by Source
Financial Analysis of the Government’s Funds
As noted earlier, the Community Redevelopment Authority of Grand Island, Nebraska, used fund
accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Fund. The focus of the Community Redevelopment Authority of Grand Island,
Nebraska’s governmental fund is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the Community
Redevelopment Authority of Grand Island, Nebraska’s financing requirements. In particular,
unassigned fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the Community Redevelopment Authority of Grand
Island, Nebraska’s governmental fund reported an ending fund balance of $923,429. The
unassigned fund balance, which is available for spending at the government’s discretion, was a
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COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
MANAGEMENT’S DISCUSSION AND ANALYSIS, Continued
For The Year Ended September 30, 2016
10
deficit of ($145,462). The remainder of the fund balance is not available for new spending
because it has already been 1) committed for future grant projects ($950,148), 2) restricted for
developers ($18,743), or 3) restricted for life safety grants ($100,000).
The General Fund is the only fund of the Community Redevelopment Authority of Grand Island,
Nebraska. As a measure of the General Fund’s liquidity, it may be useful to compare total fund
balance to total fund expenditures. Total fund balance represents 63.5 percent of General Fund
expenditures.
The fund balance of the Community Redevelopment Authority of Grand Island, Nebraska’s
General Fund increased by $4,348 during the current fiscal year.
General Fund Budgetary Highlights
There was no difference between the original budget and the final adopted budget.
Capital Asset and Debt Administration Capital Assets. The Community Redevelopment Authority of Grand Island, Nebraska’s
investment in capital assets (land held for redevelopment) as of September 30, 2016, amounts to
$575,369.
Long-term debt. During the year ended September 30, 2013, the Community Redevelopment
Authority of Grand Island, Nebraska issued $1,800,000 of limited tax obligation bonds payable
to finance the Lincoln Pool project. Bond principal of $175,000 was paid during the year ended
September 30, 2016, leaving an outstanding balance of $1,280,000. At the end of the current
fiscal year, the Community Redevelopment Authority of Grand Island, Nebraska, had notes
payable of $279,075. The notes payable decreased by $77,767 (21.8 percent) during the current
fiscal year.
Economic Factors and Next Year’s Budget
• Grants of $950,148 are committed to be paid during the next 12 months, with an
additional $100,000 committed to be paid through 2018.
These factors were considered in preparing the Community Redevelopment Authority of Grand
Island, Nebraska’s budget for the year ending September 30, 2017.
Request for Information
This financial report is designed to provide a general overview of the Community
Redevelopment Authority of Grand Island, Nebraska’s finances for all those with an interest in
the government’s finances. Questions concerning any of the information provided in this report
or requests for additional financial information should be addressed to the Director, Community
Redevelopment Authority of Grand Island, Nebraska, P.O. Box 1968, Grand Island, NE 68802.
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COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
STATEMENT OF NET POSITION
September 30, 2016
ASSETS
Current assets:
Cash 725,075$
County treasurer cash 114,460
Property taxes receivable 66,935
Current portion of TIF receivables 30,071
Total current assets 936,541
Noncurrent assets:
Restricted cash 118,743
Noncurrent portion of TIF receivables 281,178
Land held for redevelopment 575,369
Total noncurrent assets 975,290
Total assets 1,911,831
LIABILITIES
Current liabilities:
Accounts payable 34,474
Unavailable property taxes 61,021
Accrued interest payable 6,289
Current portion of notes payable 80,374
Current portion of bonds payable 175,000
Total current liabilities 357,158
Noncurrent liabilities:
Noncurrent portion of notes payable 198,701
Noncurrent portion of bonds payable 1,105,000
Total noncurrent liabilities 1,303,701
Total liabilities 1,660,859
NET POSITION
Net investment in capital assets 575,369
Restricted for developers 18,743
Restricted for life safety grants 100,000
Unrestricted (443,140)
Total net position 250,972$
See notes to financial statements.
11
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COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
STATEMENT OF ACTIVITIES
For the year ended September 30, 2016
Net (Expenses)
Revenues and
Changes
Operating Capital in Net Position
Charges for Grants and Grants and Governmental
Expenses Services Contributions Contributions Activities
FUNCTIONS/PROGRAMS
Governmental activities:
General government 71,972$ -$ -$ -$ (71,972)$
Community development 1,162,173 - 706,427 - (455,746)
Interest on long-term debt 45,276 - - - (45,276)
Total governmental activities 1,279,421$ -$ 706,427$ -$ (572,994)
General revenues:
Taxes:
Property taxes 725,532
Interest income 173
Other income 24,806
Total general revenues 750,511
Change in net position 177,517
Net position - beginning of year 73,455
Net position - end of year 250,972$
See notes to financial statements.
12
Program Revenues
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COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
BALANCE SHEET - GOVERNMENTAL FUND
September 30, 2016
ASSETS
Cash 843,818$
County treasurer cash 114,460
Property taxes receivable 66,935
Total assets 1,025,213$
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable 34,474$
Unavailable property taxes 61,021
Accrued interest payable 6,289
Total liabilities 101,784
Fund balance:
Restricted for developers 18,743
Restricted for life safety grant 100,000
Committed for projects 950,148
Unassigned (145,462)
Total fund balance 923,429
Total liabilities and fund balance 1,025,213$
See notes to financial statements.
13
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COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
RECONCILIATION OF THE BALANCE SHEET -
GOVERNMENTAL FUND TO THE
STATEMENT OF NET POSITION
September 30, 2016
Total fund balance - governmental funds 923,429$
Amounts reported for governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the fund statements.575,369
TIF receivables are noncurrent assets that are not available to
pay for current-period expenditures and therefore are not
reported in the fund statements.311,249
Long-term liabilities, including notes and bonds payable, are not
due and payable in the current period and therefore are not
reported in the fund statements.
Notes payable (279,075)$
Bonds payable (1,280,000) (1,559,075)
Total net position - governmental activities 250,972$
See notes to financial statements.
14
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COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - GOVERNMENTAL FUND
For the year ended September 30, 2016
REVENUES
Property taxes 725,532$
TIF receipts 708,258
Interest income 173
Other income 24,806
Total revenues 1,458,769
EXPENDITURES
Contract services 60,491
Matching grant funds 454,931
Professional services 10,093
Other 1,388
Conduit debt payments 632,069
Debt service:
Principal payments 250,173
Interest 44,751
Bond fees 525
Total expenditures 1,454,421
Net change in fund balance 4,348
Fund balance - September 30, 2015 919,081
Fund balance - September 30, 2016 923,429$
See notes to financial statements.
15
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COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUND
TO THE STATEMENT OF ACTIVITIES
For the year ended September 30, 2016
Total net change in fund balance - governmental funds 4,348$
Amounts reported for governmental activities in the statement of
activities are different because:
TIF proceeds were received, decreasing the TIF receivable
balance on the statement of net position. These proceeds are
recorded as revenue on the fund statement.(79,598)
Principal payments on long-term debt are recorded as
expenditures in the fund statement, but are recorded as a
reduction in liabilities on the statement of net position.
Notes payable 77,767$
Bonds payable 175,000 252,767
Change in net position of governmental activities 177,517$
See notes to financial statements.
16
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17
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS
INDEX
Page
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. Financial Reporting Entity 18
2. Basis of Presentation 19
3. Measurement Focus and Basis of Accounting 20
4. Assets, Liabilities, and Equity 21
5. Revenues, Expenditures, and Expenses 25
NOTE B – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
1. Deposit Laws and Regulations 26
2. Budgetary Data 26
NOTE C – DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS
1. Cash and Certificates of Deposit 28
2. TIF Receivables 29
3. Land Held for Redevelopment 30
4. Long-term Debt 30
NOTE D – OTHER NOTES
1. Risk Management 32
2. Commitments and Contingencies 34
3. Interlocal Agreement 34
4. Conduit Debt 35
5. Additional TIF Agreements 36
6. Related Party Transactions 38
7. Subsequent Events 38
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18
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS
September 30, 2016
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Community Redevelopment Authority of Grand Island, Nebraska
(Authority) are prepared in accordance with generally accepted accounting principles (GAAP).
The Authority’s reporting entity applies all relevant Governmental Accounting Standards Board
(GASB) pronouncements.
The accounting and reporting framework and the more significant accounting principles and
practices are discussed in subsequent sections of this Note.
1. Financial Reporting Entity
The Community Redevelopment Authority of Grand Island, Nebraska, was created by the Grand
Island City Council on June 27, 1994, pursuant to Nebraska State Statutes. The purpose of the
Authority is to prevent and eliminate blighted areas in the City of Grand Island, Nebraska. The
Authority is reported as a component unit of the City of Grand Island, Nebraska.
The Authority’s financial reporting entity comprises the following:
Primary Government: Community Redevelopment Authority of
Grand Island, Nebraska
In determining the financial reporting entity, the Authority complies with the provisions of
GASB Statement No. 61, and has addressed all potential component units (traditionally separate
reporting entities) for which the Authority may be financially accountable, and, as such, should
be included within the Authority’s financial statements. The Authority (the primary government)
is financially accountable if it appoints a voting majority of the organization’s governing board
and (1) it is able to impose its will on the organization or (2) there is a potential for the
organization to provide specific financial benefits to or impose specific financial burdens on the
Authority. Additionally, the primary government is required to consider other organizations for
which the nature and significance of their relationship with the primary government are such that
exclusion would cause the reporting entity’s financial statements to be misleading.
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19
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
1. Financial Reporting Entity, continued
Blended Component Units
Blended component units are separate legal entities that meet the component unit criteria
described above and whose governing body is the same or substantially the same as the Authority
Board or the component unit provides services entirely to the Authority. These component units’
funds are blended into those of the Authority by appropriate activity type to compose the primary
government presentation. Currently, the Authority has no blended component units.
Discretely Presented Component Units
Discretely presented component units are separate legal entities that meet the component unit
criteria described above but do not meet the criteria for blending. The Authority currently has no
discretely presented component units.
2. Basis of Presentation
Government-wide Financial Statements
The Statement of Net Position and Statement of Activities display information about the
reporting government as a whole. They include all funds of the reporting entity. Governmental
activities generally are financed through taxes, intergovernmental revenues, and other
nonexchange revenues.
Fund Financial Statements
Fund financial statements of the reporting entity are organized into funds, each of which is
considered to be a separate accounting entity. Each fund is accounted for by providing a separate
set of self-balancing accounts that constitute its assets, liabilities, fund equity, revenues, and
expenditures/expenses. An emphasis is placed on major funds. A fund is considered major if it
is the primary operating fund of the Authority or meets the following criteria:
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20
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
2. Basis of Presentation, continued
Fund Financial Statements, continued
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual
governmental fund are at least 10 percent of the corresponding total for all funds of
that category or type; and
b. Total assets, liabilities, revenues, or expenditures/expenses of the individual
governmental fund are at least 5 percent of the corresponding total for all
governmental funds combined.
The major fund of the financial reporting entity is described below:
Governmental Fund
General Fund
The General Fund is the primary operating fund of the Authority and is always classified as a
major fund. It is used to account for all activities except those legally or administratively
required to be accounted for in other funds.
3. Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe “which” transactions are recorded within the
various financial statements. Basis of accounting refers to “when” transactions are recorded
regardless of the measurement focus applied.
Measurement Focus
On the government-wide Statement of Net Position and the Statement of Activities, the
governmental activities are presented using the economic resources measurement focus. The
accounting objectives of this measurement focus are the determination of operating income,
changes in net position (or cost recovery), financial position, and cash flows. All assets and
liabilities (whether current or noncurrent) associated with their activities are reported.
Grand Island Regular Meeting - 1/11/2017 Page 29 / 119
21
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
3. Measurement Focus and Basis of Accounting, continued
Measurement Focus, continued
In the fund financial statements, the “current financial resources” measurement focus is used.
Only current financial assets and liabilities are generally included on their balance sheets. Their
operating statements present sources and uses of available spendable financial resources during a
given period. These funds use fund balance as their measure of available spendable financial
resources at the end of the period.
Basis of Accounting
In the government-wide Statement of Net Position and Statement of Activities, activities are
presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues
are recognized when earned and expenses are recorded when the liability is incurred or economic
asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and
exchange-like transactions are recognized when the exchange takes place.
In the fund financial statements, governmental funds are presented on the modified accrual basis
of accounting. Under the modified accrual basis of accounting, revenues are recognized when
“measurable and available.” Measurable means knowing or being able to reasonably estimate the
amount. Available means collectible within the current period or within 60 days after year end.
Expenditures (including capital outlay) are recorded when the related fund liability is incurred.
4. Assets, Liabilities, and Equity
Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates.
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22
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
4. Assets, Liabilities, and Equity, continued Cash and Certificates of Deposit
For the purpose of the Statement of Net Position, “cash” includes all demand accounts and
savings accounts. The County Treasurer’s cash represents revenues collected not yet remitted to
the Authority.
Certificates of deposit are carried at cost, which approximates fair market value. Additional cash
and certificate of deposit disclosures are presented in Notes B1, C1, and D1.
When both restricted and unrestricted resources are available for use, it is the Authority’s policy
to use restricted resources first, then unrestricted resources as they are needed.
Property Taxes Receivable and Unavailable Property Taxes
In both the government-wide statements and fund financial statements, property taxes receivable
represents levied but uncollected taxes. The unavailable property taxes represent the portion of
property taxes receivable expected to be collected more than 60 days after September 30, 2016.
TIF Receivables
In the government-wide statements, TIF receivables consist of all estimated future amounts to be
received under the TIF agreements. Estimated receivables are adjusted annually. There is no
allowance for uncollectible TIF receivables.
In the fund financial statements, the TIF receivables are not reported as assets. Revenue is
recognized as TIF payments are received by the CRA.
Land Held for Redevelopment
Land held for redevelopment is carried at historical cost in the government-wide statements. It is
not reported in the fund financial statements, which use the current financial resources
measurement focus.
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23
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
4. Assets, Liabilities, and Equity, continued
Bonds and Notes Payable
The accounting treatment of bonds and notes payable depends on whether the assets are reported
in the government-wide or fund financial statements.
Government-wide Statements
All long-term debt to be repaid from governmental resources is reported as liabilities in the
government-wide statements. The long-term debt consists of bonds and notes payable.
Fund Financial Statements
Bonds and notes payable for governmental funds are not reported as liabilities in the fund
financial statements. The payment of these liabilities is reported as an expenditure.
Equity Classifications
Government-wide Statements
Equity is classified as net position and displayed in three components:
a. Net investment in capital assets – Consists of capital assets, including restricted
capital assets, net of accumulated depreciation and reduced by the outstanding
balances of any bonds, mortgages, notes, or other borrowings that are attributable to
the acquisition, construction, or improvement of those assets. The land held for
redevelopment is included in this category of net position.
b. Restricted net position – Consists of net position with constraints placed on their use
either by (1) external groups such as creditors, grantors, contributors, or laws or
regulations of other governments; or (2) law through constitutional provisions or
enabling legislation.
c. Unrestricted net position – All other net position that does not meet the definition of
“restricted” or “net investment in capital assets.”
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24
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
4. Assets, Liabilities, and Equity, continued
Equity Classifications, continued
Fund Financial Statements
Governmental fund equity is classified as fund balance. Effective October 1, 2010, the CRA
adopted GASB Statement No. 54, which redefined how fund balances of the governmental funds
are presented in the financial statements.
Fund balances are classified as follows:
Nonspendable−Amounts that cannot be spent either because they are not in a spendable
form or because they are legally or contractually required to be maintained intact.
Restricted−Amounts that can be spent only for specific purposes because of the CRA
Charter, City Code, state or federal laws or externally imposed conditions by grantors or
creditors.
Committed−Amounts that can be used only for specific purposes determined by a formal
action by CRA Board ordinance or resolution.
Assigned−Amounts that are designated by the Executive Director for a specific purpose
but are not spendable until a budget ordinance is passed by the CRA Board.
Unassigned−All amounts not included in other spendable classifications.
The details of the fund balances are included in the Governmental Funds Balance Sheet (page
13). Restricted funds are used first as appropriate. Assigned Funds are reduced to the extent that
expenditure authority has been budgeted by the CRA Board or the Assignment has been changed
by the Executive Director. Decreases to fund balance first reduce Unassigned Fund balance; in
the event that Unassigned Fund Balance becomes zero, then Assigned and Committed Fund
Balances are used in that order.
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25
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
5. Revenues, Expenditures, and Expenses
Property Taxes
The Authority has the power to levy taxes through the City of Grand Island each year sufficient
to pay any judgment existing against the Authority, the interest on bonded debt, and the principal
on bonded debt, as well as taxes authorized by state law.
On or before August 1, the Authority submits a request for property taxes to the City of Grand
Island, who is responsible for levying such taxes for operational costs.
The tax levies for all political subdivisions in Hall County are certified by the County Board on
or before October 15. Real estate taxes are due on December 31 and attach as an enforceable lien
and become delinquent in two equal installments on May 1 and September 1. Personal property
taxes are due in the same manner as real estate taxes. Delinquent taxes bear 14 percent interest.
Property taxes levied for 2015-2016 are recorded as revenue when levied by the County. The
CRA also records deferred revenue for property taxes expected to be received more than 60 days
after year end.
Expenditures/Expenses
In the government-wide financial statements, expenses are classified by character and function
for governmental activities.
In the fund financial statements, governmental funds report expenditures of financial resources,
classified by character and function.
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26
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE B – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
By its nature as a local government unit, the Authority is subject to various federal, state, and
local laws and contractual regulations. An analysis of the Authority’s compliance with
significant laws and regulations and demonstration of its stewardship over Authority resources
follows:
1. Deposit Laws and Regulations
Custodial credit risk is the risk that, in the event of a bank failure, a government’s deposits may
not be returned to it. The Authority’s deposit policy for custodial credit risk requires compliance
with the provisions of state law.
State law requires collateralization of all deposits with federal depository insurance or with U.S.
Treasury and U.S. agency securities having an aggregate value at least equal to the amount of the
deposits. The Authority’s cash deposits are insured up to $250,000 and certificates of
deposit/savings accounts are insured up to $250,000 by the Federal Deposit Insurance
Corporation (FDIC). Any cash deposits or certificates of deposit in excess of the FDIC limits
are insured by collateral held by the pledging institution in the Authority’s name.
2. Budgetary Data
The Authority is required by state laws to adopt annual budgets for all fund types. Each budget is
presented on the cash basis of accounting, which is consistent with the requirements of the state
budget act.
The Nebraska Budget Act provides the prescribed budget practices and procedures that
governing bodies are required to follow. The amounts that may be budgeted for certain specific
funds are subject to various expenditure and/or tax levy limitations.
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27
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE B – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY, continued
2. Budgetary Data, continued
The Authority follows these procedures in establishing the budgetary data reflected in the
accompanying financial statements.
a. On or before August 1, the Authority prepares a budget for the fiscal year
commencing October 1. The budget includes proposed expenditures and resources
available.
b. The budget is published with subsequent public hearings to obtain taxpayer
comments.
c. Prior to September 20, the Board adopts the budget, which is then filed with the
appropriate state and county officials.
d. Total expenditures may not legally exceed total appropriations. Appropriations lapse
at year end and any revisions require board approval.
e. The County Clerk certifies a preliminary property tax levy for each fund of the
Authority which levied property taxes in the county the previous year based on the
combined valuation and amount required for the Authority the prior year. The
preliminary levy becomes the final levy unless the governing board passes, by a
majority vote, a resolution setting the levy at a different amount.
f. The property tax requirements resulting from the budget process are utilized by the
County Assessor to establish the tax levy. Taxes are levied annually on or before
November 1. Real property taxes and personal property taxes are due December 31
with the first half delinquent May 1 and the second half delinquent September 1.
g. Appropriations lapse at the end of the fiscal year, except for capital improvement
appropriations and certain encumbrances against operating budgets.
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28
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE B – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY, continued
2. Budgetary Data, continued
h. The Community Redevelopment Authority of Grand Island, Nebraska, adopts a
budget by resolution for all funds.
NOTE C – DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS
The following notes present detailed information to support the amounts reported in the basic
financial statements for the Authority’s various assets, liabilities, equity, revenues, and
expenditures/expenses.
1. Cash and Certificates of Deposit
Deposits
The Authority’s policies regarding deposits of cash are discussed in Note A4. The table
presented below is designed to disclose how its deposits were insured or secured with collateral
at September 30, 2016. The categories of collateral are defined as follows:
Category 1 – Insured by FDIC or collateralized with securities held by the Authority (or
public trust) or by its agent in its name.
Category 2 – Uninsured but collateralized with securities held by the pledging financial
institution’s trust department or agent in the Authority’s name.
Category 3 – Uninsured and uncollateralized; or collateralized with securities held by the
pledging financial institution, or by its trust department or agent, but not in the
Authority’s name; or collateralized with no written or approved collateral agreement.
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29
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE C – DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS, continued
1. Cash and Certificates of Deposit, continued
Total
Total Bank Category Category Category Carrying
Types of Deposits Balance 1 2 3 Value
Demand deposits and
certificates of deposit $ 908,555 $ 250,000 $ 658,555 $ - $ 843,818
Reconciliation to Government-wide Statement of Net Position:
Primary Government –
Unrestricted cash $ 725,075
Restricted cash 118,743
$ 843,818
2. TIF Receivables
The Community Redevelopment Authority of Grand Island, Nebraska, has undertaken a program
for the redevelopment of blighted areas in the City. Under the program, various projects agree to
create a minimum taxable valuation for real estate tax assessment purposes. The CRA receives
the incremental real estate taxes paid by the projects and then uses the tax incremental financing
(TIF) funds to make debt service payments on the related notes payable. Estimated future
receivables under TIF agreements were as follows as of September 30, 2016:
Poplar Street $ 91,745
RSF Limited 5,616
PROCON Development Company, LLC 16,559
Walnut Housing, Ltd. 197,329
$ 311,249
Current portion of TIF receivables $ 30,071
Noncurrent portion of TIF receivables 281,178
$ 311,249
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30
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE C – DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS, continued
3. Land Held for Redevelopment
Capital asset activity for the year ended September 30, 2016, was as follows:
Balance at Balance at
October 1, 2015 Additions Disposals September 30, 2016
Governmental Activities:
Capital assets not being depreciated:
Land held for redevelopment $ 575,369 $ - $ - $ 575,369
4. Long-term Debt
The following is a summary of the changes to long-term debt for the year ended September 30,
2016:
Balance Balance Due Within
9/30/15 Additions Payments 9/30/16 One Year
Limited Tax Obligation Bonds $ 1,455,000 $ - $ (175,000) $ 1,280,000 $ 175,000
Note payable – Wells Fargo Bank 9,117 - ( 3,501) 5,616 3,917
Note payable – Home Federal
Savings & Loan 56,549 - ( 12,539) 44,010 16,416
Note payable – Lincoln Federal
Savings 291,176 - ( 61,727) 229,449 60,041
Total $ 1,811,842 $ - $ (252,767) $ 1,559,075 $ 255,374
Long-term debt at September 30, 2016, consists of the following:
a. The Authority issued $1,800,000 of limited tax obligation bonds on October 30, 2012.
The funds were used to finance the Lincoln Pool project. The bonds bear interest ranging
from 0.40 to 2.40 percent. Principal payments are due annually commencing December
15, 2013 through December 15, 2022. Interest payments are due semi-annually on June
15th and December 15th.
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31
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE C – DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS, continued
4. Long-term Debt, continued
b. The Authority borrowed $37,000 from Wells Fargo Bank on September 3, 2002. The
funds were used to finance the RSF Limited redevelopment project. The note is
collateralized by a promissory note from the redeveloper and a deed of trust on the real
estate included in the project. The incremental tax revenue increase by the redeveloped
property is pledged to be used for payment of the note. The note bears interest of 6.90
percent and payments are due semi-annually through December 15, 2017. The unpaid
principal balance at September 30, 2016, was $5,616.
c. The Authority borrowed $169,267 from Home Federal Savings and Loan on September 1,
2003. The funds were used to finance the PROCON Development Company, LLC,
redevelopment project. The note is collateralized by a promissory note from the
redeveloper and a deed of trust on the real estate included in the project. The incremental
tax revenue increase by the redeveloped property is pledged to be used for payment of the
note. The note bears interest of 7.0 percent and payments are due semi-annually beginning
June 15, 2005, through December 15, 2018. The unpaid principal balance at September
30, 2016, was $44,010.
d. The Authority borrowed $668,000 from Lincoln Federal Savings Bank on December 15,
2005. The funds were used to finance the Walnut Housing, Ltd., redevelopment project.
The note is collateralized by a promissory note from the redeveloper and a deed of trust on
the real estate included in the project. The incremental tax revenue increase by the
redeveloped property is pledged to be used for payment of the note. The note bears
interest of 6.74 percent and payments are due semi-annually beginning June 15, 2006,
through December 15, 2019. The unpaid principal balance at September 30, 2016, was
$229,449.
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32
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE C – DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS, continued
4. Long-term Debt, continued
Scheduled debt service payments are as follows:
Year Ended September 30, Principal Interest Total
2017 $ 255,374 $ 38,325 $ 293,699
2018 258,442 31,175 289,617
2019 258,566 23,304 281,870
2020 216,693 15,444 232,137
2021 185,000 10,805 195,805
2022-2026 385,000 9,158 394,158
$ 1,559,075 $ 128,211 $ 1,687,286
NOTE D – OTHER NOTES
1. Risk Management
The Authority is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural disasters. The
Authority has purchased commercial insurance to minimize the effect of possible exposure to
these risks. Settled claims have not significantly exceeded this commercial coverage in any of
the past three years.
Deposits and Investments Custodial Credit Risk. For an investment, custodial credit risk is the risk that, in the event of the
failure of the counterparty, the Authority will not be able to recover the value of its investment or
collateral securities that are in the possession of an outside party. The CRA did not have any
investments nor certificates of deposit held at banks in the name of the CRA at year end.
Grand Island Regular Meeting - 1/11/2017 Page 41 / 119
33
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE D – OTHER NOTES, continued
1. Risk Management, continued Deposits and Investments, continued
Interest Rate Risk. As a means of limiting its exposure to fair value losses arising from rising
interest rates, the Authority’s investment policy requires that market conditions and investment
securities be analyzed to determine the maximum yield to be obtained and to minimize the
impact of rising interest rates. There were no certificates of deposit at September 30, 2016.
Credit Risk. Credit risk is the risk that the issuer or other counterparty to an investment will not
fulfill its obligations. The Authority’s investments consist of certificates of deposit and money
market funds, minimizing credit risk associated with the Authority’s investment portfolio.
Concentration of Credit Risk. The Authority’s investment policy places no limit on the amount
that may be invested in any one issuer. At September 30, 2016, the Authority’s cash balances
consisted of the following:
Financial Institution Amount
Wells Fargo $ 843,818
Foreign Currency Risk. This risk relates to adverse effects on the fair value of an investment
from changes in exchange rates. The Authority’s investments had no exposure to foreign
currency risk and the Authority held no investments denominated in foreign currency at
September 30, 2016.
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34
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE D – OTHER NOTES, continued
2. Commitments and Contingencies
Grant Commitments
The Authority has made commitments to fund the following projects:
Committed Projects Amount Estimated Due Date
South Locust BID $ 30,000 2017
Federation of Labor – Ziller 60,000 2017
Wing Properties – 116 E Third St 68,132 2017
Wing Properties – 110-114 E Third St 167,016 2017
Bosselman Real Estate 300,000 2/3 2017 & 1/3 2018
Zoul Properties – 1201 S Locust 90,000 2017
Fire & Life Safety Grants:
Anson – 201-203 West Third St 200,000 2017
Federation of Labor – Ziller 115,000 2017
Wing Properties – 116 E Third St 20,000 2017
$ 1,050,148
3. Interlocal Agreement
The Authority is a participant in an Interlocal Agreement within the City of Grand Island. The
purpose of the Agreement is to provide for reimbursement by the Authority to the City for certain
services provided by whomever the City Administrator shall designate as Director of the
Authority. The Authority shall reimburse to the City approximately $2,100 per month to
reimburse 20 percent of the Director’s total annual salary and benefits and 20 percent of the
Planning Secretary’s total annual salary and benefits. The Agreement is in effect for the period
October 1, 2015, through September 30, 2016. Thereafter, it will automatically renew for
successive one-year terms until terminated.
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35
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE D – OTHER NOTES, continued
4. Conduit Debt
The Authority collects TIF proceeds and pays the proceeds to financial institutions under several
conduit debt arrangements. The Authority has no obligation to make principal and interest
payments on the conduit debt except to the extent of the TIF proceeds that are collected.
Remaining Estimated Amount
Redeveloper Life to be Remitted
Bruns Pet Grooming 4 $ 29,359
Girard Vet Clinic 4 42,754
PROCON - Geddes Street 6 187,516
Southeast Crossing 5 77,534
Casey’s 7 99,352
South Pointe 7 591,693
Todd Enck 6 14,100
Pharmacy Properties 8 57,414
John Schulte 8 33,148
Ken-Ray, LLC 7 144,654
Token Properties 10 29,714
Gordman of GI 11 591,505
Baker Development 11 36,345
Stratford Plaza 11 366,419
Copper Creek 13 944,957
Chief Industries 12 438,748
Token Properties-Kimball St 12 31,608
Habitat for Humanity 12 52,748
Auto One 12 139,610
EIG 11 819,471
Token Properties-Cary St 11 66,764
Wenn 11 41,055
Copper Creek II 14 3,752,044
T. C. Enck 15 6,252
Mainstay 14 466,039
Tower 217 14 195,172
Northwest Commons 15 2,078,722
Habitat (St. Paul Road) 15 62,313
$ 11,397,010
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36
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE D – OTHER NOTES, continued
5. Additional TIF Agreements
On July 16, 2013, the Authority entered into a redevelopment contract with The Guarantee
Group, LLC (Redeveloper). The Redeveloper intends to purchase and develop property for a
subdivision and install all of the necessary public infrastructure to build 200+ single family
dwellings in the first phase of the project over the course of approximately 10 years from the date
of the contract. The initial sales price of the houses is limited to between $139,900 and
$145,900. The sales price may be modified over the course of the contract to accommodate
changes in prices for materials and labor. A second phase of this project, subject to a second TIF
contract, is anticipated for the remainder of the property with approximately 300 additional
dwelling units. A $4,000,000 TIF bond bearing interest of 8.0 percent was issued by the
Authority with an expiration date of December 31, 2039. The developer is responsible for
providing to the Authority by July 1 of each year the legal description of all lots with new homes
and the sales price of each house to that a “Notice of Intent to Divide Tax for Development
Project” form can be filed on the improvements with the Hall County Assessors office by August
1 of each year. TIF financing will be made available and paid toward the bond until either the
bond is paid off, the bond expires, or the allowable tax increment is no longer available.
On October 30, 2014, the Authority entered into a redevelopment contract with Grand Island
Joint Ventures LLC. (Redeveloper). The Redeveloper intends to rehabilitate the Grand Island
Mall on Webb Road, and add additional outlets on both the Webb Road and 281 sides of the
building. The estimated value upon completion is $21,570,000. The Redeveloper shall pay all
project costs related to the construction of the improvements. Under the terms of the agreement,
the Authority will grant the Redeveloper $5,600,000 related to the TIF and $4,000,000 related to
enhance employment area bond.
On May 7, 2015, the Authority entered into a redevelopment contract with Pridon LLC.
(Redeveloper). The Redeveloper intends to extend utilities and build between 26 and 78
apartments for veterans on the Veteran’s Hospital Property at Capital Avenue and Broadwell
Street. The estimated value upon completion is $2,400,000. The Redeveloper shall pay all
project costs related to the construction of the improvements. Under the terms of the agreement,
the Authority will grant the Redeveloper $330,000.
Grand Island Regular Meeting - 1/11/2017 Page 45 / 119
37
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE D – OTHER NOTES, continued
5. Additional TIF Agreements, continued
On June 5, 2015, the Authority entered into a redevelopment contract with Super Market
Developers (Redeveloper). The Redeveloper intends to build a new grocery store and additional
strip retail at 720 State Street. The estimated value upon completion is $7,858,000. The
Redeveloper shall pay all project costs related to the construction of the improvements. Under
the terms of the agreement, the Authority will grant the Redeveloper $1,600,000.
In July of 2015 the Authority approved a redevelopment contract with T&S Development
(Redeveloper). The contract was executed on November 2, 2015. The Redeveloper intends to
finish office space on the second floor of their building at 312 W 3rd Street. The estimated value
upon completion is $1,136,841. The Redeveloper shall pay all project costs related to the
construction of the improvements. Under the terms of the agreement, the Authority will grant the
Redeveloper $272,788.
On September 29, 2015, the Authority entered into a redevelopment contract with Bosselman
Real Estate LLC. (Redeveloper). The Redeveloper intends to redevelop a commercial property at
1616 S. Locust as corporate office space, retail space and build a hotel on site. The estimated
value upon completion is $21,570,000. The Redeveloper shall pay all project costs related to the
construction of the improvements. Under the terms of the agreement, the Authority will grant the
Redeveloper $6,552,000.
During the year ended September 30, 2016, the Authority entered into a redevelopment contract
with Wing Properties, Inc. (Redeveloper). The Redeveloper intends to redevelop Lot 7, Block
54, Original Town of Grand Island. The estimated value upon completion is $382,266. The
Redeveloper shall pay all project costs related to the construction of the improvements. Under
the terms of the agreement, the Authority will grant the Redeveloper $110,485.
During the year ended September 30, 2016, the Authority entered into a redevelopment contract
with Middleton Properties II, LLC (Redeveloper). The Redeveloper intends to redevelop Lots 2
and 3 of Commercial Industrial Park Sixth Subdivision. The estimated value upon completion is
$936,667. The Redeveloper shall pay all project costs related to the construction of the
improvements. Under the terms of the agreement, the Authority will grant the Redeveloper
$247,561.
Grand Island Regular Meeting - 1/11/2017 Page 46 / 119
38
COMMUNITY REDEVELOPMENT AUTHORITY OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
NOTES TO FINANCIAL STATEMENTS, Continued
September 30, 2016
NOTE D – OTHER NOTES, continued
5. Additional TIF Agreements, continued
During the year ended September 30, 2016, the Authority entered into a redevelopment contract
with Talon Apartments, Inc. (Redeveloper). The Redeveloper intends to build apartments on Lot
3 of Vanosdal Second Subdivision. The estimated value upon completion is $19,484,580. The
Redeveloper shall pay all project costs related to the construction of the improvements. Under
the terms of the agreement, the Authority will grant the Redeveloper $4,473,120.
6. Related Party Transactions
T&S Development, one of the redevelopers the Authority has entered into a TIF agreement with,
is owned by a board member of the Authority.
7. Subsequent Events
Management has evaluated subsequent events through December 16, 2016, the date on which the
financial statements were available for issue.
On October 12, 2016, the Authority entered into a redevelopment contract with Cherry Park East,
LLC (Redeveloper) for phase 3 of Cherry Park redevelopment. The estimated value upon
completion is $7,500,000. The Redeveloper shall pay all projects costs related to the construction
of the improvements. Under terms of the agreement, the Authority will grant the Redeveloper
$1,495,000.
Grand Island Regular Meeting - 1/11/2017 Page 47 / 119
REQUIRED SUPPLEMENTARY INFORMATION
Grand Island Regular Meeting - 1/11/2017 Page 48 / 119
COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
BUDGETARY COMPARISON SCHEDULE
Year ended September 30, 2016
Variance -
Budget Actual
(Original Over (Under)
and Final)Actual Final Budget
RESOURCES (INFLOWS)
Property taxes 1,614,850$ 725,532$ (889,318)$
TIF receipts 1,159,092 708,258 (450,834)
Interest income 300 173 (127)
Land sales 100,000 - (100,000)
Other 130,000 24,806 (105,194)
Total resources 3,004,242 1,458,769 (1,545,473)
CHARGES TO APPROPRIATIONS
(OUTFLOWS)
Contract services 876,000 60,491 (815,509)
Capital outlay 568,972 - (568,972)
Matching grant funds 447,000 454,931 7,931
Professional services 24,000 10,093 (13,907)
Printing and publishing 3,000 - (3,000)
Travel and training 1,000 - (1,000)
Other 1,300 1,388 88
Conduit debt payments 1,059,458 606,820 (452,638)
Debt service:
Principal payments 62,564 250,173 187,609
Interest expense 31,070 44,751 13,681
Bond fees - 525 525
Total charges to appropriations 3,074,364 1,429,172 (1,645,192)
RESOURCES OVER (UNDER)
CHARGES TO
APPROPRIATIONS (70,122)$ 29,597$ 99,719$
39
Grand Island Regular Meeting - 1/11/2017 Page 49 / 119
COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
BUDGETARY COMPARISON SCHEDULE -
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
Year ended September 30, 2016
Note A - Explanation of Differences between Budgetary Inflows and Outflows and
Accrual Basis Revenue and Expenditures
General
Fund
Sources/inflows of resources:
Actual amounts of resources (budgetary basis)
from the budgetary comparison schedule 1,458,769$
Differences - budget to accrual:
Cash to accrual adjustments -
Total revenues as reported on the statement
of revenues, expenditures, and changes
in fund balance - governmental fund 1,458,769$
Uses/outflows of resources:
Actual amounts (budgetary basis) "total
charges to appropriations" from the
budgetary comparison schedule 1,429,172$
Differences - budget to accrual:
Cash to accrual adjustments 25,249
Total expenditures as reported on the statement
of revenues, expenditures, and changes
in fund balance - governmental fund 1,454,421$
40
Grand Island Regular Meeting - 1/11/2017 Page 50 / 119
SUPPLEMENTARY INFORMATION
Grand Island Regular Meeting - 1/11/2017 Page 51 / 119
Facade RSF
Improvement Walnut PROCON Limited Bruns Wile E.
General & Other Housing Debt Debt Pet Investment
Services Projects Project Service Service Grooming Properties, LLC
Legal/other professional
services 10,093$ -$ -$ -$ -$ -$ -$
Contract services 60,491 - - - - - -
Miscellaneous 1,388 - - - - - -
Grant funds - 454,931 - - - - -
Conduit debts payments - - - - - 20,302 9,808
Principal payments 175,000 - 56,188 15,325 3,660 - -
Interest expense 22,088 - 18,284 3,837 542 - -
Bond fees 525 - - - - - -
269,585$ 454,931$ 74,472$ 19,162$ 4,202$ 20,302$ 9,808$
COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
SCHEDULE OF EXPENDITURES - GENERAL FUND
For the Year Ended September 30, 2016
41
Grand Island Regular Meeting - 1/11/2017 Page 52 / 119
PROCON -
Geddes St Southeast South Pointe Todd Enck John Schulte Pharmacy
Apartments Crossing Casey's Hotel Project Construction Properties
-$ -$ -$ -$ -$ -$ -$
- - - - - - -
- - - - - - -
- - - - - - -
41,657 14,267 8,930 86,441 6,542 7,557 11,500
- - - - - - -
- - - - - - -
- - - - - - -
41,657$ 14,267$ 8,930$ 86,441$ 6,542$ 7,557$ 11,500$
41
Grand Island Regular Meeting - 1/11/2017 Page 53 / 119
Chief
County Baker Stratford Industries
Poplar Ken-Ray Fund Development,Plaza,Copper Aurora
Street Project #8598 Gordman Inc.LLC Creek Coop
Legal/other professional
services -$ -$ -$ -$ -$ -$ -$ -$
Contract services - - - - - - - -
Miscellaneous - - - - - - - -
Grant funds - - - - - - - -
Conduit debts payments 10,194 42,273 2,991 18,741 5,191 23,891 66,761 37,862
Principal payments - - - - - - - -
Interest expense - - - - - - - -
Bond fees - - - - - - - -
10,194$ 42,273$ 2,991$ 18,741$ 5,191$ 23,891$ 66,761$ 37,862$
COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
(A Component Unit of the City of Grand Island, Nebraska)
SCHEDULE OF EXPENDITURES - GENERAL FUND, Continued
For the Year Ended September 30, 2016
42
Grand Island Regular Meeting - 1/11/2017 Page 54 / 119
Token Token
Properties Habitat Auto EIG Properties Wenn
Kimball for One,Grand Cary Housing Copper Tower
Street Humanity Inc.Island Street Project Creek II Mainstay 217 Totals
-$ -$ -$ -$ -$ -$ -$ -$ -$ 10,093$
- - - - - - - - - 60,491
- - - - - - - - - 1,388
- - - - - - - - - 454,931
2,652 4,182 11,513 50,910 7,595 4,180 110,640 24,863 626 632,069
- - - - - - - - - 250,173
- - - - - - - - - 44,751
- - - - - - - - - 525
2,652$ 4,182$ 11,513$ 50,910$ 7,595$ 4,180$ 110,640$ 24,863$ 626$ 1,454,421$
42
Grand Island Regular Meeting - 1/11/2017 Page 55 / 119
Grand Island Regular Meeting - 1/11/2017 Page 56 / 119
Grand Island Regular Meeting - 1/11/2017 Page 57 / 119
Community Redevelopment
Authority (CRA)
Wednesday, January 11, 2017
Regular Meeting
Item A1
Agenda 1-11-17
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/11/2017 Page 58 / 119
AGENDA
Wednesday Jan. 11, 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 December 14, 2016 Meeting.
3.Approval of Financial Reports.
4.Approval of Bills.
5.Review of Committed Projects and CRA Properties.
6.Presentation of Annual CRA Audit – Terry Galloway
7.Consideration of Resolution 232 to forward a Redevelopment Plan Amendment
to the Grand Island City Council for 204 N. Carey, Think Smart Properties,
LLC.
8.Consideration of Resolution 233 to forward a Redevelopment Plan Amendment to the
Hall County Regional Planning Commission for 112 W. Second Street, Peaceful Root.
9.Consideration of Resolution 234 of Intent to Enter into a Site Specific Redevelopment
Contract & Approval of related actions 30-day notice to Grand Island City Council for
112 W. Second Street, Peaceful Root.
10.Consideration of Life Safety Grant Request for 112 W. Second Street, Peaceful Root.
11.Approve Resolution to Purchase/Sell Real Estate – None.
Grand Island Regular Meeting - 1/11/2017 Page 59 / 119
12.Directors Report.
13.Recess/Adjournment – Recess to tour of new apartment at 110 E. Third St.,
Wing Properties, adjourn from tour location.
Next Meeting, 4 p.m., February 8, 2017.
Grand Island Regular Meeting - 1/11/2017 Page 60 / 119
COMMUNITY REDEVELOPMENT AUTHORITY
AGENDA MEMORANDUM
4 p.m. January 11, 2017
1.CALL TO ORDER. The meeting will be called to order by Chairman Tom Gdowski.
This is a public meeting subject to the open meetings laws of the State of Nebraska.
The requirements for an open meeting are posted on the wall in this room and anyone
that wants to find out what those are is welcome to read through them.
2.APPROVAL OF MINUTES. The minutes of the Community Redevelopment
Authority meeting of December 14, 2016, are submitted for approval. A MOTION is
in order.
3.APPROVAL OF FINANCIAL REPORTS. Financial reports for the period of
December 1, 2016 through December 31, 2016 are submitted for approval. A
MOTION is in order.
4.APPROVAL OF BILLS. Payment of bills in the amount of $3,421.48 is submitted
for approval. A MOTION is in order.
5.REVIEW OF COMMITTED PROJECTS AND CRA PROPERTIES.
6.PRESENTATION OF CRA AUDIT. Terry Galloway of Almquist, Maltzahn,
Galloway & Luth will be presenting results of the CRA audit for the period ended
September 30, 2016.
7.RESOLUTION 232 Consideration of a resolution to forward a Redevelopment Plan
Amendment to the Grand Island City Council for a $350,000 four-plex at 204 N.
Carey by Think Smart Properties LLC. The developer is seeking $48,150 in tax-
increment financing. The Regional Planning Commission met January 4 and returned
its findings on 204 N. Carey to the CRA. A MOTION is in order.
8. RESOLUTION 233 Consideration of a resolution to forward a Redevelopment Plan
Amendment to the Hall County Regional Planning Commission for a parking
garage/apartment complex at 112 W. Second Street, in the former Brown Hotel. The
developer is Peaceful Root, LLC of Grand Island. A MOTION is in order.
9. RESOLUTION 234 Consideration of a resolution of intent to enter into a Site
Specific Redevelopment Contract and approval of related actions and 30-day notice
to City Council for 112 W. Second Street, Grand Island, NE. Peaceful Root LLC is
planning a $1.2 million project to construct a first-floor parking garage with second
floor apartments and a yoga studio. The developer is seeking $263,854 in tax-
increment financing. A MOTION is in order.
10. LIFE SAFETY GRANT Consideration of a Life Safety Grant Request for 112 W.
Second Street, Peaceful Root. The CRA may grant up to $15,000 per one-bedroom
Grand Island Regular Meeting - 1/11/2017 Page 61 / 119
apartment and up to $20,000 for two- or more-bedroom units. Peaceful Root is
proposing two one-bedroom units and one two-bedroom unit for a possible grant of
up to $50,000. A MOTION is in order.
11. APPROVE RESOLUTION OR RESOLUTIONS TO PURCHASE OR SELL REAL
ESTATE.
None.
12. DIRECTOR’S REPORT.
This is an opportunity for the director to communicate on going actions and activities
to the board and public.
13. RECESS/ADJOURNMENT. Downtown property owner Dean Pegg has offered to
provide a tour of a second-story apartment he created at 110 E. Third. The apartment
received $20,000 in Life Safety Grant assistance, as well as the building receiving
$167,000 in façade assistance.
Chad Nabity
Director
Grand Island Regular Meeting - 1/11/2017 Page 62 / 119
Community Redevelopment
Authority (CRA)
Wednesday, January 11, 2017
Regular Meeting
Item B1
Minutes 12-14-16
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/11/2017 Page 63 / 119
OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
December 14, 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
December 2016 at City Hall 100 E. First Street. Notice of the meeting was given in the
December 7, 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: Gdowski, Sue Pirnie, Glenn Wilson and Krae
Dutoit. Also present were: Director, Chad Nabity; Legal Counsel, Duane Burns;
Planning Administrative Assistant Tracy Overstreet; William Clingman from the
Grand Island Finance Department; developer Heath Reinders, and Jeff Bahr of the
Grand Island Independent.
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
November 9, 2016 meeting was made by Wilson and seconded by Dutoit. Upon
roll call vote, all present voted aye. Motion carried.
3. APPROVAL OF FINANCIAL REPORTS. Clingman reviewed the financial
reports for the period of November 1, 2016 through November 30, 2016. A motion
was made by Pirnie and seconded by Dutoit to approve the financial reports. Upon
roll call vote, all present voted aye. Motion carried.
4. APPROVAL OF BILLS. The bills were reviewed. A motion was made by Dutoit
and seconded by Pirnie to approve the bills in the amount of $6,307.43. Upon roll
call vote, all present voted aye. Motion carried.
5.REVIEW OF COMMITTED PROJECTS & CRA PROPERTY.
Nabity provided a review of the committed projects. He noted that contractors for
the Bosselman project at the former Skagway South Locust are about ready to
close up the building. The Ziller residential project at the former Federation of
Labor building is continuing. Nabity said no work has been reported yet on either
Master Stylists or Othy’s Place Music Shoppe. Wing Properties is nearing
completion on the facades. The Fonner View project by Zoul Properties is still in
consideration for a possible sale with details likely to come in January. Nabity said
if the property is sold the $90,000 of façade dollars that was granted by the CRA
Grand Island Regular Meeting - 1/11/2017 Page 64 / 119
will be available for reallocation. Of the Fire and Life Safety grants, the $20,000
for Wing Properties may be requested at the first of the year as the owner is
nearing completion of the second-floor apartment and could have that apartment
rented before Christmas. The Fire and Life Safety grant for the Hedde Building at
201-203 W. Third isn’t expected to be requested until 2018 due to the owners
using Historic Tax Credits. Nabity also reported that incentives such as Historic
Tax Credits and Low Income Tax Credits may be targeted for elimination in the
upcoming state budget due to financial constraints. In response to questions from
Gdowski, Nabity also provided an update on the Highway 34/South Locust
intersection. The Nebraska Department of Roads has given tentative approval to
consider taking out the turning curve on the northeast corner, Nabity said, however
land appraisals need to be done. The CRA would need to purchase any land from
that curve that would become CRA property.
6/7. RESOLUTIONS 230 AND 231
Nabity reported that Heath Reinders of Think Smart LLC of Grand Island is
proposing to build a four-unit apartment complex at 204 N. Carey. The lot is
currently vacant. Each unit would have an attached garage, which provides a
different look than some other multi-family projects in Grand Island. Reinders is
requesting $48,150 in tax-increment financing assistance for the $450,000 project.
Nabity said the Grand Island Public Schools was notified of this project during
informal discussions a few weeks ago and expressed no concerns about the student
base that could be generated from the four units.
Dutoit moved to approve Resolution 230 to forward the Redevelopment Plan for
204 N. Carey to the Regional Planning Commission for review. Wilson seconded
the motion. Upon roll call vote, all present voted aye. Motion carried.
Dutoit moved to approve Resolution 231 of 30-day notice to the Grand Island City
Council of intent to enter into a Site Specific Redevelopment Contract regarding
204 N. Carey, Think Smart Properties LLC, Grand Island. Wilson seconded the
motion. Upon roll call vote, all present voted aye. Motion carried.
8. APPROVE RESOLUTION TO PURCHASE/SELL REAL ESTATE.
No resolutions.
9. DIRECTORS REPORT.
Nabity reported that the Nebraska Legislature made a change in 2013 regarding the
redevelopment of former defense sites. Tax-increment financing can be made
available to former defense sites if they are first declared blighted and substandard
by a first-class city that declares a future intent of annexation of the area. Pat
O’Neill has had a blight and substandard study completed on 285 acres at the
former Cornhusker Army Ammuntion Plant west of Grand Island. That study will
be before the Grand Island City Council December 20 to consider whether to
Grand Island Regular Meeting - 1/11/2017 Page 65 / 119
forward it to the Regional Planning Commission for review. A similar plan
regarding CAAP land owned by Hornady Manufacturing will be before the Grand
Island City Council at its December 27 meeting.
10. ADJOURNMENT. Meeting was adjourned at 4:30 p.m.
The next meeting is scheduled for January 11, 2016.
Respectfully submitted
Chad Nabity
Director
Grand Island Regular Meeting - 1/11/2017 Page 66 / 119
Community Redevelopment
Authority (CRA)
Wednesday, January 11, 2017
Regular Meeting
Item D1
Bills
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/11/2017 Page 67 / 119
11-Jan-17
TO: Community Redevelopment Authority Board Members
FROM: Chad Nabity, Planning Department Director
RE: Bills Submitted for Payment
The following bills have been submitted to the Community
Redevelopment Authority Treasurer for preparation of payment.
City of Grand Island
Administration Fees $ 3,214.88
Postage $ 12.59
Grand Island Independent $ 16.01
Mayer, Burns & Koenig $ 178.00
Total:$ 3,421.48
Grand Island Regular Meeting - 1/11/2017 Page 68 / 119
Community Redevelopment
Authority (CRA)
Wednesday, January 11, 2017
Regular Meeting
Item E1
Committed Projects
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/11/2017 Page 69 / 119
COMMITTED PROJECTS REMAINING
GRANT AMOUNT
2017 FISCAL YR 2018 FISCAL YR 2019 FISCAL
YR
ESTIMATED
COMP
South Locust/Fonner Park
BID (7-13-16)
$30,000.00 $15,000.00 $15,000.00 2017
Federation of Labor - Ziller
Residential Grant (10-12-16)
$ 60,000.00 $ 60,000.00
2017
Federation of Labor-Ziller Façade
Grant (10-12-16)
$53,200 $ 53,200.00 2017
Wing Properties - 116 E 3rd St
(9-9-15)
$ 68,132.00 $ 68,132.00 2017
Wing Properties - 110-114 E
3rd St (9-9-15)
$ 167,016.00 $ 167,016.00 2017
Master Stylists-114 W. 3rd-
Jeanene Campos (10-12-16)
$ 23,895.00 $ 23,895.00 2017
Bosselman Real Estate 2603
S. Locust (6-10-15)
$ 300,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 2018
Othy's Place-724 W. 3rd-
Lindell (10-12-16)
$ 61,860.18 $34,899.18 $ 26,961.00 2017 façade, 2018
sign
Zoul Properties - 1201 S
Locust Street
$ 90,000.00 $ 90,000.00 2017
$ -
Total Committed $854,103.18 $612,142.18 $141,961.00 $ 100,000.00
FIRE & LIFE SAFETY GRANT TOTAL AMOUNT 2017 FISCAL YR 2018 FISCAL YR 2019 FISCAL
YR
ESTIMATED
COMP201-203 W. 3rd St. - Anson (8-
24-16)
$ 200,000.00 $ 200,000.00 2018
Federation of Labor - Tom
Ziller (5-13-15)
$115,000 $ 115,000.00 2016
Wing Properties - 110 E 3rd St
(2-10-16)
$20,000 $ 20,000.00 2017
Total Commited F&L Safety
Grant
$ 335,000.00 $ 135,000.00 $ 200,000.00
Life Safety Budget $
Remaining
$ 285,000.00
Façade Budget $ Remaining $ 350,000.00
Other Projects $ 375,775.36
Land - Budget $ Remaining $ 200,000.00
Land Sales
($100,000.00)
subtotal $ 1,110,775.36
Less committed $ (576,522.00)$ 391,091.73
Balance remaining $583,153.36 $ 391,091.73
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
January 3, 2017
Grand Island Regular Meeting - 1/11/2017 Page 70 / 119
Community Redevelopment
Authority (CRA)
Wednesday, January 11, 2017
Regular Meeting
Item G1
Life Safety Grant Request - Peaceful Root
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/11/2017 Page 71 / 119
Fire and Life Safety Grant Program Application
Project Redeveloper Information
I. Applicant Name: Peaceful Root, LLC
Address: 1107 W 11th Street, Grand Island, NE 68801
Telephone No.: 308-227-2647
Contact: John Anson
II. Legal Street Address of Project Site: 114 West 2nd Street, Grand Island, NE 68801
III. Present Ownership of Project Site: Peaceful Root, LLC
IV. Proposed Project: Describe in detail; attach plans and specifications:
Proposed Number of Upper Story 1 Bedroom Units ___2___
Proposed Number of Upper Story 2+ Bedroom Units ___1___
Other Info:
Peaceful Root, LLC will be redeveloping the main and 2nd floor of 114 West 2nd Street. The
main floor will be renovated to accompany both a commercial business and a parking structure.
The 2nd floor will be renovated into a commercial space in the form of a yoga studio and two
residential spaces.
V. Building Details
A. Actual Purchase Price $180,000.00
B. Assessed Value of Property $205,086.00
C. When Acquired 2016
D. Number of Floors 2
E. Square Footage of Building 14,520 sq. ft.
F. Current Use of Building Unoccupied
Grand Island Regular Meeting - 1/11/2017 Page 72 / 119
VI. Construction Costs
A. Total Estimated Renovation or Building Costs $1,186,840
B. Estimated Cost of Life Safety Improvements:
Fire Sprinklers $43,560
Exiting $12,000
Electric Upgrades $60,000
Water Upgrades for Sprinklers $15,000
C. Other Construction Costs:
First Floor Renovation $300,000
Second Floor Renovation $886,840
Third Floor Renovation $
Fourth Floor Renovation $
Basement Renovation $
Roof $
Heating and AC $
Façade Improvements/Maintenance $
Other Construction Costs
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
VII. Source of Financing:
Developer Equity: $6,546
Commercial Bank Loan: $886,440
Historic Tax Credits: $
Tax Increment Financing: $263,864
Low Income Tax Credits $
Other (Describe: Life Safety grant__________) $ 50,000
VIII. Name & Address of Architect, Engineer and General Contractor:
General Contractor: Amos Anson, FAmos Construction Inc, PO Box 1665 Grand Island, NE 68802 308-390-2455
Grand Island Regular Meeting - 1/11/2017 Page 73 / 119
Structural Engineer: Mike Spilnek, Olsson Associates, 201 E 2nd Street, Grand Island, NE 68801 308-384-8750
Architect: Marvin Webb, ALA w/ Webb & Company Architects, 587 N Walnut Street, Grand Island, NE 68801
IX. Project Construction Schedule:
A. Construction Start Date: Q1 2017
B. Construction Completion Date: Q1 2018
Grant Notes:
The CRA may grant up to $20,000 per new upper story 2+bedroom unit and $15,000 per new upper
story 1 bedroom unit. The final amount will be determined upon approval of the grant and is at the
discretion of the CRA. Applications for this program may be submitted up to for the next fiscal year
(Beginning October 1) on or after July 1. Applications will be considered in the order received. Only
complete applications will be considered for approval. Applications must be submitted at least 30
days prior to the meeting during which they will be considered for approval.
Post Office Box 1968
Grand Island, Nebraska 68802-1968
Phone: 308 385-5240
Fax: 308 385-5423
Email: cnabity@grand-island.com
Grand Island Regular Meeting - 1/11/2017 Page 74 / 119
Community Redevelopment
Authority (CRA)
Wednesday, January 11, 2017
Regular Meeting
Item H1
TIF Request - Peaceful Root
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 1/11/2017 Page 75 / 119
BACKGROUND INFORMATION RELATIVE TO
TAX INCREMENT FINANCING REQUEST
Project Redeveloper Information
Business Name: Peaceful Root, LLC
Address: 1107 W 11th Street, Grand Island, NE 68801
Telephone No.: 308-227-2647
Fax No.: NA
Contact: John Anson
Brief Description of Applicant’s Business:
Peaceful Root, LLC. is a real estate developer and contractor specializing in downtown
properties.
Present Ownership Proposed Project Site: Peaceful Root, LLC.
Proposed Project: Building square footage, size of property, description of buildings – materials,
etc. Please attach site plan, if available.
Peaceful Root, LLC will be redeveloping the basement, main and 2nd floor of 114 West 2nd
Street. The basement will be renovated to accompany a new commercial business. The main
floor will be renovated to accompany both a commercial business and a parking structure. The
2nd floor will be renovated into a commercial space in the form of a yoga studio and three
residential spaces.
The current building is wood and brick and the new construction will be the same. See the
attached floor plans for more details.
If Property is to be Subdivided, Show Division Planned:
Grand Island Regular Meeting - 1/11/2017 Page 76 / 119
VI. Estimated Project Costs:
Acquisition Costs:
A. Land $
B. Building $180,000
Construction Costs:
A. Renovation or Building Costs: $884,400
B. On-Site Improvements: $
re-platting, demo, asbestos removal, tree removal, etc.
Soft Costs:
A. Architectural & Engineering Fees: $22,000
B. Financing Fees: $
Closing costs, filing fees
C. Legal/Developer/Audit Fees/ TIF fees $12,000
D. Contingency Reserves: $88,440
E. Other (Please Specify) $
TOTAL $ 1,186,840
Total Estimated Market Value at Completion: $ 1,300,000
Source of Financing:
A. Developer Equity: $6,546
B. Commercial Bank Loan: $866,440
Tax Credits:
1. N.I.F.A. $
2. Historic Tax Credits $
D. Industrial Revenue Bonds: $
E. Tax Increment Assistance: $ 263,854
F. Other: Life safety $ 50,000
Grand Island Regular Meeting - 1/11/2017 Page 77 / 119
Name, Address, Phone & Fax Numbers of Architect, Engineer and General Contractor:
General Contractor: Amos Anson, FAmos Construction Inc, PO Box 1665 Grand Island, NE 68802 308-390-2455
Structural Engineer: Mike Spilnek, Olsson Associates, 201 E 2nd Street, Grand Island, NE 68801 308-384-8750
Architect: Marvin Webb, ALA w/ Webb & Company Architects, 587 N Walnut Street, Grand Island, NE 68801
Estimated Real Estate Taxes on Project Site Upon Completion of Project:
(Please Show Calculations)
Project Construction Schedule:
Construction Start Date: ASAP
Construction Completion Date:Q4 2017
If Phased Project:
Year ___ % Complete
___________________ Year ___% Complete
XII. Please Attach Construction Pro Forma
XIII. Please Attach Annual Income & Expense Pro Forma
(With Appropriate Schedules)
Grand Island Regular Meeting - 1/11/2017 Page 78 / 119
TAX INCREMENT FINANCING REQUEST INFORMATION
Describe Amount and Purpose for Which Tax Increment Financing is Requested:
Peaceful Root, LLCis requesting $263,854 in TIF. The TIF will allow the project to cash flow
and therefore be a success.
Statement Identifying Financial Gap and Necessity for use of Tax Increment Financing for
Proposed Project:
Without TIF assistance the project will not cash flow and therefore will not be a successful
business venture. See attached proforma
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:
Amos Anson, FAmos Construction/Empire Development, 308-390-2455
IV. Please Attach Applicant’s Corporate/Business Annual Financial Statements for the Last
Three Years. NA
Post Office Box 1968
Grand Island, Nebraska 68802-1968
Phone: 308 385-5240
Fax: 308 385-5423
Email: cnabity@grand-island.com
Grand Island Regular Meeting - 1/11/2017 Page 79 / 119
The Garage
Use of funds
Purchase of building
Construction
Contingency
A&E
Soft costs
Source of funds
Bank
TIF Loan (Owner carried)
Life safety grant
Owner Equity (Not including TIF carry)
$tt,t+g
511,146
$20,837
$45,466
$i2,936
$14,400
$25,288
Total
$lgo,ooo
$884,400
S88,440
S2z,ooo
Srz,ooo
$1,196,84o
$gee,++o
$263,854
$so,ooo
S6,546
$l,l86,840
$e2e
$e2e
$1,736
$:,szz
$:.,ozs
51,200
$2,191
Operatrng profr:rma
Annual rental income
1- Bed
L- Bed
2- Bed
2nd floor yoga
1st floor commercial
1-1 Parking stalls
Basement
$/s.f. s.f.
$l+
$rq
$14
$14
$l+
$r,eoo
$4
774
774
1_447
3319
924
o
6577
Gross lncome
Vacancy
Expenses
NOI
Debt service
Cashflow
$ 143,2 1B
$10,025
$33,ooo
$43,025
S100,193
$gz,Lzt
$17,972
Grand Island Regular Meeting - 1/11/2017 Page 80 / 119
Grand Island Regular Meeting - 1/11/2017 Page 81 / 119
Grand Island Regular Meeting - 1/11/2017 Page 82 / 119
Grand Island Regular Meeting - 1/11/2017 Page 83 / 119
fr*4 kK"ouNrY ASSESSoR'S oFFrcE
I t * - llilllllllllllllllllilllllllllllllllilllfllllllllllllllll RearProperty Record card
. :'-..1 THi*!t rr rilfe!5Le-.:;
.rr. -:rrrr . . . . . f. i: -r .,.rrrr: rr.r.rr.::;jr;r:r .
Parcel Number
'M_ap.. Number
Sit99
Legal
',rtrlt,j]lai..,:::. .lll:r::il::i;;:Ulrl
Land Value
llmpr. Value
:Outbuildings
Total Value
Exemptions
rTaxable Value
Date, ,"r -,1
Lt/L0/20t5
a8/23/2Aa5
:L8L,7 45
_- - 205,085
'
, ZOS, Oee
..rp6ok q e$_errr,rrrrrt*i1rrr,,,ri
20] 5-77 52 :
2oo5-8301-
DistricUTlF Fund :12
School Base
lintiiteo Coae
N-e1s-[ii;rho9j_
Gree_nb-e-!! Area
Greenbelt Loss
4O-OOO2 GRAND
105
Data Provided By: JANET L. PELLAND County Assessor. Printed on 1210912016 at 02:30:23P
Parcel tnformation Ownership lnJormation
4OO0057OO CurrentOwner PEACEFUL ROOT LLC
3315 - OO - O - 1o0ol-- 066 - OOl-O
r-12 w 2ND rAqq!:essoRrcrNAL rowN E 2/3 LT 6 & w 1/3 Lr CityS!.--Zin'7 BLK 66 Cadastral #
Current Valuation Assessment Data
1107 W 11TH ST
,GRAND ISLAND NE 58801-
,11111111111:,,rr'',,1,01.1.
L.3u
0r,,191'",,,,,,,,urrp;u*
claslifhatid-nii'f:,rrrrrrrtirurl
Status 01 lmprovedrsLA luse 03 Commercial
Zoning 03 Commercial-
Location 01 Urban
City Size
Lot Size
03 L2,001-l-00,000
01 <1-0, 000 sq. f t.
Sales History
,:::::,''::::::::: l,Ulii.,::ii,itr,,,ill.Giahtof,,:,lii
BARTENBACH REAL ESTATE, -L
FREDDA P BARTENBACH
so5,000.
Permit #
.,i r'r7r:1,rt,rrr irr,,i..Biritii .nU,llFei*iii 971,,,l,,tlr?:;l',1:,;iillii:lli... .r.,'ll
,li.' '...rr,rttttuuuiDate... ..t::::,:,.. . :':::. DesfiipiiOn ait,it.t. ,,,,;,1,;;AmO-unt
or/ot/2017 2ND FLOOR DEMO
oL / oL / 201-6: COMMERC]AL REVrE
01/or/20:-5 1O? MARKET UPDAT
01/AI/20A6 COMMERCIAL UPDAT i
:OA/OA/2005,COMMERCIAL UPDAT .
Boe Appeal History
1-62 .2006 BARTENBACH/FREDDA ]APPEAL RE.fEC
543 .2OOO FREDDA P BARTENBACH APPEAL-REJEC
Assessment Milestones" . ...:.:,year Description Class Ex Code Land lmpr. Outbldg. Total Taxable
iooi:rax nOr,r, 2oo0 : zt,z+t : 67,96'1 91,308' 91,308
2oo4 2oo4 crL ,zooo 3,337 :1,?11 7_7,L48: 77'L48
2oo3.2oo3 crl, :2ooo 23,337: ?r,?ii, 7_.7,L48: i7,t4s
2002:2002 CTL 2000 3,337: 53,8aa: 77,1-48. '7'7,]-48
2OOliTAxROLtr :2000 21-,780': | 50,220t 72!000 - 7?-:0.0.9
2O15,PEACEFUL ROOT LLC 23,34r: ]-87,745, 1 205,086 205,085. 4,303.26
2ol-4 BARTENBACH REAL ESTATE , 23,34]-. : 67,967: 91,308 91,308, 2,021.75
2013 BARTENBACH REAL ESTATE 23,34L. : el,g6l: 91,308, , 9]-,3A8l 1,967 '18
2012 BARTENBACH REAL ESTATE : zz ,l+t 67 ,967 91,308 ; : 91,308: 1,985 '46
201-1 BARTENBACH REAL ESTATE . 23,34L. 57,967: 91,308: , 91,308 l-,950'88
20IO,BARTENBACH REAL ESTATE ', 23,34t'. : 6'7,967: 91,308 91,308 1,884.04
2oog,BARTENBACH REAL ESTATE : 23,34:r t 67 ,967, 91,308. 9l-,308 L,865 .62
2oo8:BARTENBACH REAI, ESTATE 23,34L 57,967: 91,308: | 91,308, 1,841"30
2007 BARTENBACH REAL ESTATE 23,34L 67,967 91,308 91,308 1,839'58
2OoGIBARTENBACH REAL ESTATE 23,34L, 67,967', 91,308: 91,308 L,896'84
Grand Island Regular Meeting - 1/11/2017 Page 84 / 119
,.1.r, .,,ir,ii.r rilrrrrri il,rrl'rl'i 'ir,'.ii' .,ii...ii . pafCel lnfOfmatiOn
ParcetNumbel 400005?00
MapNumber 331-5-oo-0-10001-055-0010
c '-'r'f dir :-tu:),:.;:'L,2
Current Owner PEACEFUL ROOT LLC
HALL COUNTY ASSESSOR'S OFFICE
lfilllllllllilllllllllllllllllllillllllllllllllllll commerciar Property Record card
Data Provided By: JANET L. PELLAND County Assessor, Printed on 1210912016 at 02:30:29P
Situs 112 W 2ND
Legal roRrGrNAL TOI.^JN E 2/3 LT 6 & W l-/3 LT
7 BLK 55
Address
C- ity st. zip
Cadastral #
1107 W 11TH ST
GRAND ISLAND NE 58801-
00ol--0050-oo72A
Neighborhood
Lot Width
Lot Depth
Units Buildable
Value Method
tjtl
1.1 15t 353
@
2ND STY
1-2 'tSt 416
1101-3 tSr BETL UNF BSMT 1
a / 26U)
- DenotescommonwtslL
1 1 353 RETATL STORE ' 1911 C 200,, 20 7,260 352. I L4 434,366: 80t 85,873
a 2 406.WAREHOUSE, STORAGE 1911- C ZOO: 20 7,260 352 ! !4 232,90l- 80? 46,580
t- 3 512 RETATL trItFrN BSMT l-91-1 C : 2oo I 10 7,260 352 1 8 158,849-,...... 8.0.?, 31,770
825 , 716 :Vacancy -& Collection Loss
16 , 3 3 5Total Refinements :Effective lncome
TotalReplacementCostNew 826,aL6TotalExpenses 2s 0c? 4'o8+
ioialPhys..&Func.Deprec1a11on.(65o,893)Neioperatinglncome 13 .00?RCN Lesg Phys. & Func. 165 ,223 Capitalization Rate
s4,238-10? lncomeApproach 205,086Adu;d Economic depreciation t6 , s22 Fin;l Value Reconciliation
Additional Lump Sums
Land Value
Total Cost Value
Value Per Res Unit
Value Per Sq. Ft.
*DATA USED FOR COST CALCULATIONS
| 23,34L:
205 ,086
9 .42
suipifBo BY MARSHALL & SwrFT which hereby reserves aLl right here.in.
1,0 5
66
t32
i jr:'ll:i:iililriiir,iilllllll'
of Units
Value ,2 .68
23 ,34]-
Grand Island Regular Meeting - 1/11/2017 Page 85 / 119
HALL COI]NTY ASSESSORIS OFF]CE
COMMERCIAL DATA SHEET
t2/oe/20L6
InspecLion Date:
!t'/'X-U
Record:1 of:Date of Print:
Inspected By:
ParcelID# :999999980 t'tap #
ErYor
Error
B
o
Business Name
Situs
Legal
]NDOOR PARKING/RETAIL/YOGA
00112 WEST 2ND ST
WHAT IF FOR AMOS ANSON/112 W
2ND ST/OLD BROWN HOTEL BLDG
LOT INFORMATION
Neighborhood
Lor width
Lot DepLh
Topography
Street Access
Utilities
10s
66
t32
Factor :
Value Method
# of UniEs
unr_E. value
Adjustments
Lot Va]ue
SF
8"7 12
2 .68
23 ,34L
Amenities
LAND VALUE
Appraisal Zone :
COST APPROACH DATA - VAIUCS
2OOO Manual- Date : 06/L4
By Marshall & Swift
CosE Factor : 0.75
Tot.al Number of Buildings : 3 Totaf Number of SecEions : 5
ToLal Area.
Total Building Replacement, CosE New..
Total RefinemenE Repfacement Cost New..
Total Replacement Cost New..
Total- Aecrued Depreciation.. 322
Total Replacement Cost New Less Physical and Functional Depreciation..
Economic Depreciation for Neighborhood l-05
Total ReplacemenL Cost New Less Depreciation..
ToLal Lump Sums
Total- Land Value. . . .
FfNAL ESTIMATE OF VAIJUE USING THE COST APPROACH
Value per UniL
Value per Square FooL
22 ,986
$L,302 ,5L2
$l-55, 709
#1,459,22]-($458,024)
fr99l. , t97
#99L , a97
$o
$23,34].
$l-,014,538
$338, l-79.33
i44.L4
VALUATION SUMMARY
Estimat,e
Estimate
of
of
value (Usrng Cost Approach) $1, 014, 538
Value (using lncome APProach)
FINAI, ESTIMATE
Improvement Value
Land Value
FINAL ESTIMATE OF VALUE
$991 ,]-97
$23,34L
$1, 014 , 53 8
Current Tota1 Assessed Value for ParceL # 999999980 $o
DATA USED FOR CALCULATIONS SUppr,IED BY MARSHALL & SWIFT which hereby reserves all rights herin.
Grand Island Regular Meeting - 1/11/2017 Page 86 / 119
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Grand Island Regular Meeting - 1/11/2017 Page 88 / 119
HALL COUNTY ASSESSOR'S OFFICE
Ililillllllllllllllillllilllllllilllilllllllllllillllllll rerrascan sketch Form
t':S 'IN}'*rrL i€JtElt,adr -..i
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Basement Area
Garage Area
Porches/Other *,-----irigg:llqt-
Grand Island Regular Meeting - 1/11/2017 Page 89 / 119
Peaceful Root, LLC – 112 W. Second St.
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 233
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 11th day of January, 2017.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By___________________________
Chairperson
ATTEST:
__________________________
Secretary
Grand Island Regular Meeting - 1/11/2017 Page 90 / 119
Peaceful Root, LLC – 112 W. Second St.
EXHIBIT 1
REDEVELOPMENT PLAN AMENDMENT
Grand Island Regular Meeting - 1/11/2017 Page 91 / 119
Redevelopment Plan Amendment
Grand Island CRA Area 1
December 2016
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area 1 with in the city, pursuant to
the Nebraska Community Development Law (the “Act”) and provide for the
financing of a specific infrastructure related project in Area 1.
Executive Summary:
Project Description
THE REDEVELOPMENT OF THE BUILDING LOCATED AT 112 W 2nd STREET
FOR COMMERCIAL AND RESIDENTIAL USES, INCLUDING FIRE/LIFE SAFETY
IMPROVEMENTS AND BUILDING REHABILITATION AND REMODELING.
The use of Tax Increment Financing to aid in rehabilitation expenses associated with
redevelopment of the Former Brown Hotel Building located at 112 W. 2nd Street into a
mixed use building containing three apartments, two tenant spaces, indoor covered
parking and additional space in the basement. The use of Tax Increment Financing is an
integral part of the development plan and necessary to make this project affordable. The
project will result in renovating this historic building into a combination of commercial
space and market rate residential units along with providing dedicated parking stalls for
these and nearby residential units.. The addition of the residential units is consistent with
the downtown redevelopment plan and priorities to add 50 residential units downtown by
2019. This project would not be possible without the use of TIF.
Peaceful Root LLC is the owner of the property. Peaceful Root LLC purchased this
property in 2015. The purchase price is not included as an eligible TIF activity. The
building is currently vacant. The developer is responsible for and has provided evidence
that they can secure adequate debt financing to cover the costs associated with the
remodeling and rehabilitation of this building. The Grand Island Community
Redevelopment Authority (CRA) intends to pledge the ad valorem taxes generated over
the 15 year period beginning January 1, 2018 towards the allowable costs and associated
financing for the acquisition and site work.
TAX INCREMENT FINANCING TO PAY FOR THE REHABILITATION OF THE
PROPERTY WILL COME FROM THE FOLLOWING REAL PROPERTY:
Property Description (the “Redevelopment Project Area”)
112 W. 2nd Street in Grand Island Nebraska (Former Brown Hotel)
Legal Descriptions: Easterly Two - thirds of Lot Six (6) and the Westerly One -third of
Lot Seven (7), in Block Sixty -Six (66) in the Original Town, now City of Grand Island,
Hall County, Nebraska
Grand Island Regular Meeting - 1/11/2017 Page 92 / 119
Existing Land Use and Subject Property
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The tax increment will be captured for the tax years the payments for which become
delinquent in years 2019 through 2032 inclusive.
The real property ad valorem taxes on the current valuation will continue to be paid
to the normal taxing entities. The increase will come from rehabilitation of this
vacant historic building for commercial and residential uses as permitted in the B3
Heavy Business Zoning District.
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:
The Community Development Law requires that a Redevelopment Plan and Project
consider and comply with a number of requirements. This Plan Amendment meets the
statutory qualifications as set forth below.
1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on December 19, 2000.[§18-2109] Such
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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. The Hall County Regional Planning
Commission held a public hearing at their meeting on February 1, 2014 and passed
resolution _______ confirming that this project is consistent with the Comprehensive
Plan for the City of Grand Island.
3. The Redevelopment Plan must be sufficiently complete to address the following
items: [§18-2103(13) (b)]
a. Land Acquisition:
The Redevelopment Plan for Area 1 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority.
b. Demolition and Removal of Structures:
The project to be implemented with this plan does not provide for the demolition and
removal any structures on this property.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. All of the area
around the site in private ownership is planned for Downtown Commercial development;
this includes housing and commercial uses within the same structure. This property is in
private ownership. [§18-2103(b) and §18-2111] The attached map also is an accurate site
plan of the area after redevelopment. [§18-2111(5)]
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City of Grand Island Future Land Use Map
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d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned B3-Heavy Business zone. No zoning changes are anticipated with this
project. No changes are anticipated in street layouts or grades. No changes are
anticipated in building codes or ordinances. Nor are any other planning changes
contemplated. [§18-2103(b) and §18-2111]
e. Site Coverage and Intensity of Use
The developer is rehabilitating the existing building. The developer is not proposing to
increase the size of the building and current building meets the applicable regulations
regarding site coverage and intensity of use. [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. The developer will be
required to extend a water line capable of providing sufficient water for the sprinkler
system required to convert this building in a multifamily apartment building.
Electric utilities are sufficient for the proposed use of this building.
No other utilities would be impacted by the development.
The developer will be responsible for replacing any sidewalks damaged during
construction of the project.
No other utilities would be impacted by the development. [§18-2103(b) and §18-2111]
4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation. This property, owned by the
developer, is vacant and has been vacant for more than 1 year; no relocation is
contemplated or necessary. [§18-2103.02]
5. No member of the Authority, nor any employee thereof holds any interest in any
property in this Redevelopment Project Area. [§18-2106] No members of the
authority or staff of the CRA have 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 and acquisition is not part of the request for tax
increment financing. The estimated costs of rehabilitation of this property is $884,400
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planning related expenses for Architectural and Engineering services of $22,000 and are
included as a TIF eligible expense. Legal, Developer and Audit Fees including a
reimbursement to the City and the CRA of $12,000 are included as TIF eligible expense.
The total of eligible expenses for this project is $918,400. The CRA has been asked to
grant $50,000 to this project to offset the cost of life safety improvements. The total
eligible expenses for this project less other grant funds by the CRA is $868,400.
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 $263,000 from the proceeds of the TIF This
indebtedness will be repaid from the Tax Increment Revenues generated from the project.
TIF revenues shall be made available to repay the original debt and associated interest
after January 1, 2018 through December 2032.
c. Statement of feasible method of relocating displaced families.
No families will be displaced as a result of this plan.
7. Section 18-2113 of the Act requires:
Prior to recommending a redevelopment plan to the governing body for approval, an
authority shall consider whether the proposed land uses and building requirements in the
redevelopment project area are designed with the general purpose of accomplishing, in
conformance with the general plan, a coordinated, adjusted, and harmonious development
of the city and its environs which will, in accordance with present and future needs,
promote health, safety, morals, order, convenience, prosperity, and the general welfare, as
well as efficiency and economy in the process of development, including, among other
things, adequate provision for traffic, vehicular parking, the promotion of safety from
fire, panic, and other dangers, adequate provision for light and air, the promotion of the
healthful and convenient distribution of population, the provision of adequate
transportation, water, sewerage, and other public utilities, schools, parks, recreational and
community facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention of the
recurrence of insanitary or unsafe dwelling accommodations or conditions of blight.
The Authority has considered these elements in proposing this Plan Amendment. This
amendment, in and of itself will promote consistency with the Comprehensive Plan. This
will have the intended result of preventing recurring elements of unsafe buildings and
blighting conditions. This will accomplish the goal of both the Downtown Business
Improvement District and the Grand Island City Council of increasing the number of
residential units available in the Downtown area. This specific plan also increases the
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availability of parking by providing private reserved spaces for residents in this and
nearby buildings.
8. Time Frame for Development
Development of this project is anticipated to be completed between April 2017 and
December of 2017. Excess valuation should be available for this project for 15 years
beginning with the 2018 tax year.
9. Justification of Project
This is an historic building in downtown Grand Island that will be preserved with this
project. The addition of a new upper story residential unit is consistent with goals to
build 50 new residential units in downtown Grand Island by 2019 and with the goals of
the 2014 Grand Island housing study and Grow Grand Island. The main floor will be
used for both tenant space and indoor reserved parking.
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:
Project Sources and Uses. Approximately $263,000 in public funds from tax increment
financing provided by the Grand Island Community Redevelopment Authority will be
required to complete the project. This property has requested a life/safety grant of
$50,000. This investment by the Authority will leverage $873,840 in private sector
financing; a private investment of $2.79 for every TIF and grant dollar investment.
Use of Funds.
Description TIF Funds Other
Grants
Private Funds Total
Site Acquisition $180,000 $180,000
Legal and Plan*$12,000 $12,000
Engineering/Arch $22,000 $22,000
Renovation $263,000 $50,000 $571,400 $884,400
Financing Fees $$
Contingency $88,440 $88440
TOTALS $263,000 $50,000 $873840 $1,186,840
Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2017,
valuation of approximately $205,086. Based on the 2016 levy this would result in a real
property tax of approximately $4,457. It is anticipated that the assessed value will
increase by $809,452 upon full completion, as a result of the site redevelopment. This
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development will result in an estimated tax increase of over $17,590 annually. The tax
increment gained from this Redevelopment Project Area would not be available for use
as city general tax revenues, for a period of 15 years, or such shorter time as may be
required to amortize the TIF bond, but would be used for eligible private redevelopment
costs to enable this project to be realized.
Estimated 2016 assessed value:$ 205,086
Estimated value after completion $ 1,014,538
Increment value $ 809,452
Annual TIF generated (estimated)$ 17,590
TIF bond issue $ 263,000
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $205,086.
The proposed redevelopment will create additional valuation of $809,452. No tax shifts
are anticipated from the project. The project creates additional valuation that will support
taxing entities long after the project is paid off.
(b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
No additional public service needs have been identified. Existing water and waste
water facilities will not be impacted by this development. The electric utility has
sufficient capacity to support the development. It is not anticipated that this will impact
schools in any significant way. Fire and police protection are available and should not be
negatively impacted by this development. The addition of life safety elements to this
building including fire sprinklers and a second exit actually reduce the chances of
negative impacts to the fire department.
(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
This will provide additional housing options in the downtown area consistent with the
planned development in Downtown Grand Island.
(d) Impacts on other employers and employees within the city or village and the
immediate area that are located outside of the boundaries of the area of the
redevelopment project; and
This project will not have a negative impact on other employers in any manner
different from any other expanding business within the Grand Island area. This will
provide housing options for employees of Downtown businesses that wish to live
Downtown.
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(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 is consistent the goals of the Council, the Downtown BID, the CRA, and
Grow Grand Island to create additional housing units in downtown Grand Island.
Time Frame for Development
Development of this project is anticipated to be completed during between April of
2017 and December 31 of 2017. 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 2018 with taxes due in 2019. 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 $263,000 the
projected amount of increment based upon the anticipated value of the project and current
tax rate. Based on the estimates of the expenses of the rehabilitation the developer will
spend at least $918,400 on TIF eligible activities in excess of other grants given. The
CRA will reserve the right to issue additional debt for this project upon notification by
the developer of sufficient expenses and valuation to support such debt in the form of a
second or third bond issuance.
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Peaceful Root, LLC-112 W. Second St.
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 234
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA, PROVIDING NOTICE OF INTENT TO ENTER INTO
A REDEVELOPMENT AFTER THE PASSAGE OF 30 DAYS AND OTHER MATTERS
WHEREAS, this Community Redevelopment Authority of the City of Grand
Island, Nebraska ("Authority"), has received an Application for Tax Increment
Financing under the Nebraska Community Development Law (the “Act”) on a
project within Redevelopment Area 1, from Peaceful Root LLC, (The "Developer") for redevelopment of 112 W. Second St., an area within the city limits of the City of
Grand Island as set forth in Exhibit 1 attached hereto area; and
WHEREAS, this Community Redevelopment Authority of the City of Grand
Island, Nebraska ("Authority"), is proposing to use Tax Increment Financing on a project within Redevelopment Area 1;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
Section 1. In compliance with section 18-2114 of the Act, the Authority hereby
gives the governing body of the City notice that it intends to enter into the
Redevelopment Contract, attached as Exhibit 1, with such changes as are deemed
appropriate by the Authority, after approval of the redevelopment plan amendment
related to the redevelopment project described in the Redevelopment Contract, and
after the passage of 30 days from the date hereof.
Section 2. The Secretary of the Authority is directed to file a copy of this
resolution with the City Clerk of the City of Grand Island, forthwith.
Passed and approved this 11th day of January, 2017.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By ___________________________
Chairperson
ATTEST:
___________________
Secretary
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Community Redevelopment
Authority (CRA)
Wednesday, January 11, 2017
Regular Meeting
Item J1
Resolution 232 - Think Smart
Staff Contact: Chad Nabity
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Think Smart Properties LLC – 204 N. Carey
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 232
A RESOLUTION RECOMMENDING APPROVAL OF A REDEVELOPMENT
PLAN OF THE CITY OF GRAND ISLAND, NEBRASKA; RECOMMENDING
APPROVAL OF A REDEVELOPMENT PROJECT OF THE CITY OF GRAND
ISLAND, NEBRASKA; APPROVING A COST BENEFIT ANALYSIS FOR SUCH
PROJECT; AND APPROVAL OF RELATED ACTIONS
WHEREAS, the Mayor and Council of the City of Grand Island, Nebraska (the “City”), upon
the recommendation of the Planning Commission of the City of Grand Island, Nebraska (the “Planning
Commission”), and in compliance with all public notice requirements imposed by the Community
Development Law, Chapter 18, Article 21, Reissue Revised Statutes of Nebraska, as amended (the
“Act”), duly declared the redevelopment area legally described on Exhibit A attached hereto (the
“Redevelopment Area”) to be blighted and substandard and in need of redevelopment; and
WHEREAS, pursuant to and in furtherance of the Act, a Redevelopment Plan (the
“Redevelopment Plan”), has been prepared by Community Redevelopment Authority of Grand Island,
Nebraska, (the “Authority”) pursuant to an application by Think Smart Properties LLC, a Nebraska
Limited Liability Corp. (the “Redeveloper”), in the form attached hereto as Exhibit B, for the purpose
of redeveloping Redevelopment Area legally described on Exhibit A, referred to herein as the Project
Area (the “Project Area”); and
WHEREAS, pursuant to the Redevelopment Plan, the Authority would agree to incur
indebtedness and make a grant for the purposes specified in the Redevelopment Plan (the “Project”), in
accordance with and as permitted by the Act; and
WHEREAS, the Authority has conducted a cost benefit analysis of the Project (the “Cost
Benefit Analysis”) pursuant to Section 18-2113 of the Act, a which is included in the Redevelopment
Plan attached hereto as Exhibit B; and
WHEREAS, the Authority has made certain findings and pursuant thereto has determined that it
is in the best interests of the Authority and the City to approve the Redevelopment Plan and approve the
Redevelopment Project and to approve the transactions contemplated thereby.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA AS FOLLOWS:
Section 1. The Authority has determined that the proposed land uses and building requirements
in the Redevelopment Plan for the Project Area are designed with the general purposes of accomplishing,
and in conformance with the general plan of the City, 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 in 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
provisions 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 communitive 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
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Think Smart Properties LLC – 204 N. Carey
unsanitary or unsafe dwelling accommodations, or conditions of blight.
Section 2. The Authority has conducted a Cost Benefit Analysis for the Project, included in the
the Redevelopment Plan attached hereto as Exhibit B, in accordance with the Act, and has found and
hereby finds that the Project would not be economically feasible without the use of tax increment
financing, the Project would not occur in the Project Area without the use of tax increment financing and
the costs and benefits of the Project, including costs and benefits to other affected political subdivisions,
the economy of the community, and the demand for public and private services, have been analyzed and
have been found to be in the long term best interests of the community impacted by the Project.
Section 3. In compliance with section 18-2114 of the Act, the Authority finds and determines as
follows: (a) the Redevelopment Area constituting the Redevelopment Project will not be acquired by the
Authority and the Authority shall receive no proceeds from disposal to the Redeveloper; (b) the estimated
cost of project acquisition and the estimated cost of preparation for redevelopment including site work,
onsite utilities and related costs are described in detail in Exhibit B attached hereto; (c) the method of
acquisition of the real estate shall be by private contract by the Redeveloper and not by condemnation;
and (d) the method of financing the Redevelopment Project shall be by issuance of tax increment revenue
bond issued in the approximate amount of $48,150, which shall be granted to the Redeveloper and from
additional funds provided by the Redeveloper. No families will be displaced from the Redevelopment
Project Area as a result of the project.
Section 4. The Authority hereby recommends to the City approval of the Redevelopment Plan
and the Redevelopment Project described in the Redevelopment Plan.
Section 5. All prior resolutions of the Authority in conflict with the terms and provisions of this
resolution are hereby expressly repealed to the extent of such conflicts.
Section 6. This resolution shall be in full force and effect from and after its passage and
approval.
PASSED AND APPROVED this 11th day of January, 2017.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND NEBRASKA
ATTEST:By: ___________________________________
Chair
By: ___________________________________
Secretary
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Think Smart Properties LLC – 204 N. Carey
EXHIBIT A
LEGAL DESCRIPTION OF REDEVELOPMENT PROJECT AREA
Lot One (1), in Block Twenty-Nine (29), in Packer & Barr’s Second Addition to the City of Grand Island,
Hall County, Nebraska, commonly known as 204. N. Carey.
* * * * *
EXHIBIT B
FORM OF REDEVELOPMENT PLAN
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Redevelopment Plan Amendment
Grand Island CRA Area #6
December 2016
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area #6 with in the city, pursuant to
the Nebraska Community Development Law (the “Act”) and provide for the
financing of a specific infrastructure related project in Area #6.
Executive Summary:
Project Description
THE ACQUISITION PROPERTY AT 204 N CAREY AND THE SUBSEQUENT SITE
WORK, UTILITY IMPROVEMENTS, ENGINEERING, LANDSCAPING AND
PARKING IMPROVEMENTS NECESSARY FOR BUILDING A FOUR UNIT
APARTMENT BUILDING AT THIS LOCATION.
The use of Tax Increment Financing (TIF) to aid in acquisition of this site and costs
associated with redevelopment of this site for a four unit apartment building. The use of
TIF makes it affordable to provide additional housing in Grand Island at this location at a
contract rent that is consistent with the neighborhood. This project would not be possible
in an affordable manner without the use of TIF.
The site is will be acquired for by the developer if TIF is approved. All site work, fee,
engineering cost and utility extensions or services will be paid for by the developer. The
developer is responsible for and has provided evidence that they can secure adequate debt
financing to cover the costs associated with the acquisition, site work and remodeling.
The Grand Island Community Redevelopment Authority (CRA) intends to pledge the ad
valorem taxes generated over the 15 year period beginning January 1, 2018 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 at the northeast corner of 204 N Carey in north central Grand
Island. The attached map identifies the subject property and the surrounding land uses:
Legal Descriptions Lot 1 Block 29 of Packer and Barr’s Second Addition
to the City of Grand Island.
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The tax increment will be captured for the tax years with payments due beginning
in 2018 and ending no later than 2032.
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 development of a four-
plex apartment at this location.
Statutory Pledge of Taxes.
Pursuant to Section 18-2147 of the Act, any ad valorem tax levied upon real property in
the Redevelopment Project Area shall be divided, for the period not to exceed 15 years
after the effective date of the provision, which effective date shall be January 1, 2018.
a. That portion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the redevelopment project valuation shall
be paid into the funds, of each such public body in the same proportion as all other taxes
collected by or for the bodies; and
b. That portion of the ad valorem tax on real property in the
redevelopment project in excess of such amount, if any, shall be allocated to and, when
collected, paid into a special fund of the Authority to pay the principal of; the interest on,
and any premiums due in connection with the bonds, loans, notes, or advances on money
to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such
Authority for financing or refinancing, in whole or in part, a redevelopment project.
When such bonds, loans, notes, advances of money, or indebtedness including interest
and premium due have been paid, the Authority shall so notify the County Assessor and
County Treasurer and all ad valorem taxes upon real property in such redevelopment
project shall be paid into the funds of the respective public bodies.
Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged
to the repayment of loans or advances of money, or the incurring of any indebtedness,
whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in
whole or in part, the redevelopment project, including the payment of the principal of,
premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness.
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Redevelopment Plan Amendment Complies with the Act:
The Community Development Law requires that a Redevelopment Plan and Project
consider and comply with a number of requirements. This Plan Amendment meets the
statutory qualifications as set forth below.
1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on October 9, 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:
The Redevelopment Plan for Area #6 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority.
b. Demolition and Removal of Structures:
The project to be implemented with this plan does not require the demolition and removal
of an existing structure.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. All of the area
around the site in private ownership is planned for medium density residential to office
use development, this includes housing at densities substantially higher than presented in
this application. This property is in private ownership. [§18-2103(b) and §18-2111] The
attached map also is an accurate site plan of the area after redevelopment. [§18-2111(5)]
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City of Grand Island Future Land Use Map
Grand Island Regular Meeting - 1/11/2017 Page 112 / 119
d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned R4-High Density Residential zone. No zoning changes are anticipated
with this project. No changes are anticipated in street layouts or grades. No changes are
anticipated in building codes or ordinances. Nor are any other planning changes
contemplated. [§18-2103(b) and §18-2111]
e. Site Coverage and Intensity of Use
The R4 zoning district allows 1 dwelling unit per 1,000 square feet of property. The lots
contains 6,720 square feet of property; enough to legally accommodate up to six housing
units. The property is zoned R4 and could accommodate a building of up to 60% of the
property area; allowable coverage would be about 4,032 square feet. The proposed units
including the attached garages will cover about 3,600 square feet, well within the
allowable coverage. [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. New water and sewer
services may be required for this building.
No other utilities would be impacted by the development.
The developer will be responsible for replacing any sidewalks damaged during
construction of the project.
No other utilities would be impacted by the development. [§18-2103(b) and §18-2111]
4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation. This property, owned by the
developer is currently vacant, no relocation is contemplated or necessary. [§18-
2103.02]
5. No member of the Authority, nor any employee thereof holds any interest in any
property in this Redevelopment Project Area. [§18-2106]
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 has a contract to purchase the property contingent on TIF availability. The
$28,000 cost of property acquisition is included as a TIF eligible expense. Costs for site
preparation and flat concrete of $9,650 are included as a TIF eligible expense.
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Engineering and design fees are estimated at $1,000 and are included as a TIF eligible
expense. Fees and reimbursement to the City and the CRA of $5,700 are included as a
TIF eligible expense. Developer planning costs including legal and design fees of $4,800
are included as a TIF eligible expense. The total of eligible expenses for this project is
$48,150.
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 $48,150 from the proceeds of the TIF
Indebtedness issued by the Authority. This indebtedness will be repaid from the Tax
Increment Revenues generated from the project. TIF revenues shall be made available to
repay the original debt and associated interest after January 1, 2018 through December
2032.
c. Statement of feasible method of relocating displaced families.
No families will be displaced as a result of this plan. There is no structure on the
property and the property is unoccupied.
7. Section 18-2113 of the Act requires:
Prior to recommending a redevelopment plan to the governing body for approval, an
authority shall consider whether the proposed land uses and building requirements in the
redevelopment project area are designed with the general purpose of accomplishing, in
conformance with the general plan, a coordinated, adjusted, and harmonious development
of the city and its environs which will, in accordance with present and future needs,
promote health, safety, morals, order, convenience, prosperity, and the general welfare, as
well as efficiency and economy in the process of development, including, among other
things, adequate provision for traffic, vehicular parking, the promotion of safety from
fire, panic, and other dangers, adequate provision for light and air, the promotion of the
healthful and convenient distribution of population, the provision of adequate
transportation, water, sewerage, and other public utilities, schools, parks, recreational and
community facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention of the
recurrence of insanitary or unsafe dwelling accommodations or conditions of blight.
The Authority has considered these elements in proposing this Plan Amendment. This
amendment, in and of itself will promote consistency with the Comprehensive Plan, in
that it will allow for the utilization of and redevelopment residential lots. New residential
development will raise property values and provide a stimulus to keep surrounding
properties properly maintained. This will have the intended result of preventing recurring
elements of unsafe buildings and blighting conditions.
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8. Time Frame for Development
Development of this project (including demolition, site preparation and new construction)
is anticipated to be completed between February and December of 2017. Excess
valuation should be available for this project for 15 years beginning with the 2018 tax
year.
9. Justification of Project
This is a residential neighborhood characterized by a combination of small apartment
buildings and single family dwellings on smaller lots. The lot has been vacant and
undeveloped for at least 26 years. The residential property to the north is a metal
building that is essentially a large garage with a dwelling unit inside. That building is
more industrial in nature than residential. The properties to the west are multi-family
buildings similar in nature to the proposed building. The City of Grand Island is in need
of additional housing units and this development will provide 4 brand new units. This is
infill development in an area with all city services available. This project does not
propose to tear down any buildings with historic value.
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:
Project Sources and Uses. Approximately $48,150 in public funds from tax increment
financing provided by the Grand Island Community Redevelopment Authority will be
required to complete the project. This investment by the Authority will leverage
$451,850 in private sector financing; a private investment of $9.38 for every TIF dollar
invested.
Use of Funds.
Description TIF Funds Private Funds Total
Site Acquisition $28,000 $28,000
Site preparation $3,000 $3,000
Legal and Plan $10,500 $10,500
Building Costs $447,883 $447,883
Flat Concrete $6,650 $3,967 $10,617
TOTALS $48,150 $451,850 $500,000
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Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2018,
valuation of approximately $519,140. Based on the 2015 levy, this would result in a real
property tax of approximately $11,007. It is anticipated that the assessed value will
increase by $510,740 upon full completion, as a result of the site redevelopment. This
development will result in an estimated tax increase of over $10,800 annually. The tax
increment gained from this Redevelopment Project Area would not be available for use
as city or other taxing entity general tax revenues, for a period of 8 years, or such shorter
time as may be required to amortize the TIF bond, but would be used for eligible private
redevelopment costs to enable this project to be realized.
Estimated 2017 assessed value:$ 8,400
Estimated value after completion $ 519,140
Increment value $ 510,740
Annual TIF generated (estimated)$ 10,800
TIF bond issue $ 48,150
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $8,400. The
proposed redevelopment and subsequent construction of a four-unit apartment building at
this location will result in an additional $510,740 of taxable valuation based on an
analysis by the Hall County Assessor’s office. No tax shifts are anticipated from the
project. The project creates additional valuation that will support taxing entities long
after the project is paid off.
(b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
No additional public service needs have been identified. Existing water and waste
water facilities will not be impacted by this development. The electric utility has
sufficient capacity to support the development. It is not anticipated that this will impact
schools. Fire and police protection are available and should not be 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;
The proposed facility will provide jobs for persons employed with the construction
company that will be building this structure. It will have no impact on other firms
locating or expanding in the area.
(d) Impacts on other employers and employees within the city or village and the
immediate area that are located outside of the boundaries of the area of the
redevelopment project; and
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This project will not have a negative impact on other employers and will result in
additional housing choices for employees within the city.
(e) Any other impacts determined by the authority to be relevant to the
consideration of costs and benefits arising from the redevelopment project.
This project will increase the available quality housing in Grand Island by a net of
four (4) units. These types of smaller projects spread throughout the city will have a less
drastic impact on neighborhoods and schools than a centralized larger housing project.
The Grand Island Public School District has submitted a formal request to the Grand
Island CRA to notify the District any time a TIF project involving more than xx units is
proposed within District. Projects involving less than xx units, such as this one do not
present an issue for the District.
This neighborhood has not had a great deal of new development in many years. Projects
like this are starting to create a positive impact in the neighborhood. The location of this
lot with commercial uses to the south and residential uses that look like commercial uses
to the north make it a difficult property to redevelop without assistance.
Time Frame for Development
Development of this project is anticipated to be completed between February 2017 and
December of 2017. 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 2018 with taxes due in 2019. 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 8 years or an amount not to exceed $48,150 the projected amount
of increment based upon the anticipated value of the project and current tax rate. Based
on the estimates of the expenses of the cost of acquisition, site preparation, engineering,
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expenses and fees reimbursed to the City and CRA, and financing fees the developer will
spend at least $48,150 on TIF eligible activities.
See Attached Building Plans
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