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02-08-2017 Community Redevelopment Authority Regular Meeting Packet Community Redevelopment Authority (CRA) Wednesday, February 8, 2017 Regular Meeting Packet Board Members: Tom Gdowski - Chairman Glen Murray – Vice Chairman Sue Pirnie Glenn Wilson Krae Dutoit 4:00 PM City Hall Grand Island Regular Meeting - 2/8/2017 Page 1 / 50 Call to Order Roll Call A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS Individuals who have appropriate items for City Council consideration should complete the Request for Future Agenda Items form located at the Information Booth. If the issue can be handled administratively without Council action, notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given. B - RESERVE TIME TO SPEAK ON AGENDA ITEMS This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to speak. Please come forward, state your name and address, and the Agenda topic on which you will be speaking. DIRECTOR COMMUNICATION This is an opportunity for the Director to comment on current events, activities, and issues of interest to the commission. Grand Island Regular Meeting - 2/8/2017 Page 2 / 50 Community Redevelopment Authority (CRA) Wednesday, February 8, 2017 Regular Meeting Item -1 Blight Study Request at CHAAP Staff Contact: Chad Grand Island Regular Meeting - 2/8/2017 Page 3 / 50 February 2, 2017 From: Chad Nabity, AICP Director To:CRA Board Re: Planning Commission Recommendation on Blight and Substandard Study for the Cornhusker Army Ammunition Plant (CHAAP) Background: The State of Nebraska changed the Community Development Law in 2013 and gave the power to approve redevelopment plans for the use of Tax Increment Financing to cities of the first class on formerly used defense sites located in the same county as the city of the first class. Hall County has one formerly used defense site, CHAAP, and one city of the first class, Grand Island. At the January 4, meeting of the Hall County Regional Planning Commission a blighted and substandard study for Grand Island Redevelopment Area 20 was considered and recommended for approval. Area 20 is a 285 acre portion of the almost 20 square miles that encompass this formerly used defense site. A second study Area 22, another 280 acres, was considered and recommended for approval at the February 1, 2017 Planning Commission meeting. Concern was expressed by Planning Commissioners that these studies were coming in piecemeal. The question was asked about declaring all, or a large portion, of CHAAP blighted and substandard with a single study. The smaller studies were done at the request of the property owners and they paid for the studies, limiting those studies to areas that they had an interest in. The Planning Commission interest extends beyond the benefits to a single or small group of property owners and asked that an item be placed on the February meeting agenda to discuss, and possibly take action, on a wider view of the redevelopment of CHAAP. At the February meeting the Planning Commission took up the topic of how much of CHAAP should be included in blight studies. After a significant amount of discussion they recommended that a single study should be conducted for the balance of the plant property. The draft minutes from that portion of the meeting are attached. The CHAAP is located between Airport Road and Husker Highway on the north and south and 60th Road and Schauppsville Road on the east and west. There are four primary zoning districts as defined by the approved reuse plan for the ammunition plant. AG-SE-Special Agriculture/Events Zone (Husker Harvest Days) Intent This special use district is to allow for agricultural uses as well as special agricultural demonstration event, expositions and trade shows that require large land areas, in accordance with the Cornhusker Army Ammunition Plant (CAAP) Comprehensive Reuse Plan. Ranch and farm dwellings are not allowed due to Environmental Protection Agency issues with the CAAP site. Adult Establishments are permitted uses in this Zoning District, but are regulated to control the negative secondary effects of these uses, as set forth in Article 3, Section 3.29. Reference Resolution 15-067 Adopted, November 3, 2015 AG-SI-Special Agriculture/Industrial Zone (Old Load Lines) Grand Island Regular Meeting - 2/8/2017 Page 4 / 50 Intent This special use district is to allow for agricultural uses as well as manufacturing, processing, fabrication, research, warehousing, storage and wholesaling facilities in accordance with the Cornhusker Army Ammunition Plant (CAAP) Comprehensive Reuse Plan. Ranch and farm dwellings are not allowed due to the Environmental Protection Agency issues with the CAAP site. Adult Establishments are permitted uses in this Zoning District, but are regulated to control the negative secondary effects of these uses, as set forth in Article 3, Section 3.29. SRC-Special Recreation/Conservation Zone (Shooting Park) Intent This district use is to allow for special outdoor recreational shooting facilities, recreational vehicle campgrounds as well as low impact recreational uses associated with pedestrian and equestrian trails, in accordance with the Cornhusker Army Ammunition Plant (CAAP) Comprehensive Reuse Plan. AG-SC Special Agriculture/Conservation Zone (Burning Grounds and Wildlife Refuges) Intent This special use district is to maintain lands in a predominately agricultural use, yet allow for limited, low impact recreational uses associated with pedestrian and equestrian trails, in accordance with the Cornhusker Army Ammunition Plant (CAAP) Comprehensive Reuse Plan. Ranch and farm dwellings are not allowed due to Environmental Protection Agency issues with the CAAP site. Zoning at CHAAP Grand Island Regular Meeting - 2/8/2017 Page 5 / 50 The Planning Commission does not have a budget to hire a consultant to prepare a blight study. Blight studies have generally been conducted and paid for either by the Community Redevelopment Authority or a property owner or interested party. The Planning Commission with their motion directed planning staff to work with the CRA, Grand Island Area Economic Development, Southern Public Power, The Grand Island Chamber of Commerce and any other potential partners that can be identified to bring forward a single study for the area of the plant. The CRA could move forward with a study on their own or could take action to encourage partnerships with some or all of those other entities for completion of a study. If the CRA chooses to fund or partially fund the study they could look at recouping the cost of the study from projects that come forward in the area. At the time those projects are approved a line item could be added to the contract until such time as the cost of the study is repaid. All of the entities participating in the study could be repaid via this mechanism. Grand Island Regular Meeting - 2/8/2017 Page 6 / 50 Excerpted from the Minutes of the February 1 Planning Commission Meeting 9.Discussion and Possible Action of Overall Blight Study on the entire Cornhusker Army Ammunition Plant or on a substantial portion of the plant, not including those areas separately declared. Nabity said the Planning Commission had expressed interest in looking at a more comprehensive blight and substandard study for the 20-square mile former Cornhusker Army Ammunition Plant, after seeing two separate studies for 281 acres and 285 acres. Although the commission doesn’t have the funds to conduct a study, Nabity said there may be other entities that could cost share a study. He said those entities could include the Community Redevelopment Authority, the Grand Island Area Economic Development Corp., Hall County and Southern Public Power. Nabity said studying all 20 square miles may be a little excessive considering some of the uses are for wildlife conservation or for the city-owned Heartland Public Shooting Park. He felt that the land zoned AG-SI (Ag-Special Industrial) where the load lines, some rail and Southern Energy Park are located, as well as land zoned AG-SE (Ag-Special Events) where Husker Harvest Days is located is best suited for a blight study. O’Neill spoke in favor of adding in the shooting park area for study. Robb favored adding in the wildlife areas too. Ruge said he was leaning toward all the areas just so all the land could be reviewed at once, instead of having a piecemeal approach with studies coming in one at a time. Ruge said Game and Parks could maybe help with the study cost. O’Neill said the Husker Harvest Day site makes sense too because updates there have already been publicly requested. Hoggatt first made a motion for a blight and substandard study on the CHAAP land, except for the Game and Parks wildlife conservation area , but had no second and changed his motion to include all 20 square miles except for the two existing study areas (Proposed Areas 20 and 22). Commissioners hoped by including in the wildlife conservation areas, there could be some trail development there. O’Neill said he had some concerns about blighting cornfields and wondered if TIF requests would be made for irrigation pivots. Nabity said all the area qualifies for a review due to its former defense site status, regardless of the row crops there now. Hoggatt said the CRA would be the gatekeeper for any TIF request and he didn’t see pivots as qualifying. The motion by Hoggatt was seconded by Ruge to recommend a blight and substandard study be done on the entire 20 square mile CHAAP plant, excluding those areas already under study or separately declared. Grand Island Regular Meeting - 2/8/2017 Page 7 / 50 The motion carried with 10 members voting in favor (Allan, O’Neill, Ruge, Maurer, Robb, Monter, Rubio, Sears, Hoggatt and Kjar.) No members voted no, Rainforth abstained. Grand Island Regular Meeting - 2/8/2017 Page 8 / 50 Community Redevelopment Authority (CRA) Wednesday, February 8, 2017 Regular Meeting Item A1 Agenda 2-8-17 Staff Contact: Chad Grand Island Regular Meeting - 2/8/2017 Page 9 / 50 Grand Island Regular Meeting - 2/8/2017 Page 10 / 50 COMMUNITY REDEVELOPMENT AUTHORITY AGENDA MEMORANDUM 4 p.m. February 8, 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 January 11, 2017, are submitted for approval. A MOTION is in order. 3.APPROVAL OF FINANCIAL REPORTS. Financial reports for the period of January 1, 2017 through January 31, 2017 are submitted for approval. A MOTION is in order. 4.APPROVAL OF BILLS. Payment of bills in the amount of $29,699 is submitted for approval. A MOTION is in order. 5.REVIEW OF COMMITTED PROJECTS AND CRA PROPERTIES. 6.HABITAT DEMOLITION GRANT REQUEST Consideration of a $15,000 demolition grant for 2403 W. North Front by the Grand Island Area Habitat for Humanity. This property is located in Redevelopment Area 6. This property is on the Problem Resolution Team list and is considered a problem property. It is the intent of Grand Island Area Habitat for Humanity to build on this lot during the current year. A MOTION is in order. 7.RESOLUTION 235 Consideration of a resolution to forward a Redevelopment Plan Amendment to the Grand Island City Council for a $1.2 million redevelopment of the former Brown Hotel at 112 W. Second Street into a parking garage, commercial space and upper-story apartments by Peaceful Root LLC. The developer is seeking $263,000 in tax-increment financing. The Regional Planning Commission met February 1 and returned its findings on 112 W. Second Street to the CRA. A MOTION is in order. 8. CHAAP BLIGHT STUDY Consideration of a blight and substandard study for the former Cornhusker Army Ammunition Plant west of Grand Island. Private developers have conducted blight and substandard studies on nearly 570 acres of the 20 square mile plant. The Regional Planning Commission met February 1 and requested consideration of a blight and substandard study on all 20 square miles excluding the areas already under study or declared. The commission wants to see a more comprehensive redevelopment of the former defense site. The CRA could choose to fund a study for the remainder of the property or try to find partners to help fund the project. Potential partners could include: the Grand Island Area Economic Grand Island Regular Meeting - 2/8/2017 Page 11 / 50 Development Corporation, Hall County, and Southern Public Power District. A MOTION is in order. 9. APPROVE RESOLUTION OR RESOLUTIONS TO PURCHASE OR SELL REAL ESTATE. None. 10. DIRECTOR’S REPORT. This is an opportunity for the director to communicate on going actions and activities to the board and public. 11. 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 - 2/8/2017 Page 12 / 50 Community Redevelopment Authority (CRA) Wednesday, February 8, 2017 Regular Meeting Item B1 Minutes 1-11-17 Staff Contact: Chad Grand Island Regular Meeting - 2/8/2017 Page 13 / 50 OFFICIAL PROCEEDINGS MINUTES OF COMMUNITY REDEVELOPMENT AUTHORITY MEETING OF January 11, 2017 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 January 11, 2017 at City Hall 100 E. First Street. Notice of the meeting was given in the January 4, 2017 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, Glen Murray and Krae Dutoit. Member Glenn Wilson was absent. Also present were: Director, Chad Nabity; Legal Counsel, Duane Burns; Planning Administrative Assistant Tracy Overstreet; William Clingman and Brian Schultz from the Grand Island Finance Department; Grand Island City Administrator Marlan Ferguson; Grand Island City Council President Vaughn Minton; developer John Anson; Terry Galloway of Almquist, Maltzahn, Galloway and Luth, CPAs; and Austin Koeller 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 December 14, 2016 meeting was made by Pirnie and seconded by Dutoit. Upon roll call vote, all present voted aye. Motion carried. 3. APPROVAL OF FINANCIAL REPORTS. Schultz reviewed the financial reports for the period of December 1, 2016 through December 31, 2016. A motion was made by Dutoit and seconded by Murray 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 Pirnie and seconded by Dutoit to approve the bills in the amount of $3,421.48. 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 work is progressing on the Bosselman project on South Locust Street. Windows have been installed in the Temple Lofts at the former Federation of Labor building. Nabity said a sign permit has been issued for Othy’s Place Music Shoppe, but has seen no work yet on the façade for Master Stylists. Wing Properties has nearly completed the Grand Island Regular Meeting - 2/8/2017 Page 14 / 50 second-story apartment and a tour had been scheduled for the CRA following the meeting, however owner Dean Pegg was called out of state and would need to reschedule the tour. The Wing Properties projects will likely seek payout in February or March, Nabity said. He is still awaiting an update on the Fonner View project by Zoul Properties. Zoul is to know by the end of January whether the property will be sold, which would mean the return of $90,000 of façade grant money the CRA had awarded the property. 6. ANNUAL AUDIT. Terry Galloway of Almquist, Maltzahn, Galloway and Luth, CPAs presented the annual audit for the year ending September 30, 2016. A motion was made by Dutoit and seconded by Murray to accept the audit report. Upon roll call vote, all present voted aye. Motion carried. 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 recommended approval of 204 N. Carey to the CRA. A motion was made by Dutoit and seconded by Murray to approve Resolution 232. Upon roll call vote, all present voted aye. Motion carried. 8/9. RESOLUTION 233 AND 234 Nabity reported that John Anson of Peaceful Root LLC of Grand Island is proposing a redevelopment at 112 W. Second Street, which includes a parking garage and retail area on the first floor and three apartments and a yoga studio on the second floor. The property is the former Brown Hotel. The parking garage would serve both the apartment tenants and residential tenants from nearby Tower 217, which the Anson family also owns. Peaceful Root is requesting $263,854 in tax increment financing assistance for the $1.2 million project. Murray moved to approve Resolution 233 to forward the Redevelopment Plan for 112 W. Second Street to the Regional Planning Commission for review. Pirnie seconded the motion. Upon roll call vote, all present voted aye. Motion carried. Dutoit moved to approve Resolution 234 of 30-day notice to the Grand Island City Council of intent to enter into a Site Specific Redevelopment Contract regarding 112 W. Second Street, for Peaceful Root LLC of Grand Island. Pirnie seconded the motion. Upon roll call vote, all present voted aye. Motion carried. 10.LIFE SAFETY GRANT. Peaceful Root LLC of Grand Island requested $50,000 in Life Safety Grant funds ($15,000 each for two one-bedroom apartments and $20,000 for a one two-bedroom apartment) for the second-floor redevelopment of 112 W. Second Street. Grand Island Regular Meeting - 2/8/2017 Page 15 / 50 Pirnie moved to approve a $50,000 Life Safety grant for Peaceful Root. Dutoit 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 there has been interest in both the South Locust lot and the downtown lot that the CRA owns. The downtown lot sits just outside the downtown parking district, meaning that the development there will need to provide on-site parking unless the downtown changes its parking district boundaries. The downtown recently completed a parking utilization study, which found that usage district-wide is at 46 percent. The busiest lot had 90 percent usage. Statistics nationally consider no parking problems until usage exceeds 85 percent. Nabity said downtown parking overall is not at capacity. He also reported that national planning trends are discussing parking minimums and questioning whether parking development is the best use of construction and development dollars. 10. ADJOURNMENT. Meeting was adjourned at 4:35 p.m. The next meeting is scheduled for February 8, 2016. Respectfully submitted Chad Nabity Director Grand Island Regular Meeting - 2/8/2017 Page 16 / 50 Community Redevelopment Authority (CRA) Wednesday, February 8, 2017 Regular Meeting Item C1 Financials January Staff Contact: Chad Grand Island Regular Meeting - 2/8/2017 Page 17 / 50 MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET January-17 YEAR TO DATE BUDGET BALANCE USED CONSOLIDATED Beginning Cash 684,881 843,818 REVENUE: Property Taxes - CRA 43,829 80,854 566,972 467,787 14.26% Property Taxes - Lincoln Pool 16,074 29,627 195,863 168,423 15.13% Property Taxes -TIF's 166,194 236,985 1,809,856 1,572,871 13.09% Loan Income (Poplar Street Water Line)- - 8,000 8,000 0.00% Interest Income - CRA 16 67 300 233 22.23% Interest Income - TIF'S 1 5,118 23,720 18,602 21.58% Land Sales - - 250,000 250,000 0.00% Other Revenue - CRA 278 (524) 130,000 130,524 -0.40% Other Revenue - TIF's - - - - #DIV/0! TOTAL REVENUE 226,393 352,128 2,984,710 2,616,439 11.80% TOTAL RESOURCES 911,274 352,128 3,828,529 2,616,439 EXPENSES Auditing & Accounting - - 5,000 5,000 0.00% Legal Services 178 613 3,000 2,387 20.43% Consulting Services - - 5,000 5,000 0.00% Contract Services 3,215 17,436 75,000 57,564 23.25% Printing & Binding - - 1,000 1,000 0.00% Other Professional Services - 4,953 16,000 11,047 30.96% General Liability Insurance - - 250 250 0.00% Postage 13 53 200 147 26.39% Life Safety - - 265,000 265,000 0.00% Legal Notices 16 61 500 439 12.16% Travel & Training - 100 1,000 900 10.02% Other Expenditures - - - - #DIV/0! Office Supplies - 72 1,000 928 7.17% Supplies - - 300 300 0.00% Land - - 50,000 50,000 0.00% Bond Principal - Lincoln Pool - 175,000 175,000 - 100.00% Bond Interest - 11,306 20,863 9,557 54.19% Façade Improvement - - 200,000 200,000 0.00% Building Improvement - - 835,148 835,148 0.00% Other Projects - - 50,000 50,000 0.00% Bond Principal-TIF's - 69,097 1,815,774 1,746,677 3.81% Bond Interest-TIF's - 9,403 17,463 8,060 53.85% Interest Expense - - - - #DIV/0! TOTAL EXPENSES 3,421 288,094 3,537,498 3,249,404 8.14% INCREASE(DECREASE) IN CASH 222,971 64,034 (552,788) ENDING CASH 907,852 64,034 291,031 - CRA CASH 606,189 Lincoln Pool Tax Income Balance 92,354 TIF CASH 209,309 Total Cash 907,852 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JANUARY 2017 Grand Island Regular Meeting - 2/8/2017 Page 18 / 50 MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET January-17 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JANUARY 2017 CRA GENERAL OPERATIONS: Property Taxes - CRA 43,829 80,854 548,641 467,787 14.74% Property Taxes - Lincoln Pool 16,074 29,627 198,050 168,423 14.96% Interest Income 16 67 300 233 22.23% Loan Income (Poplar Street Water Line)- 8,000 8,000 0.00% Land Sales - 250,000 250,000 0.00% Other Revenue & Motor Vehicle Tax 278 (524) 130,000 130,524 -0.40% TOTAL 60,198 110,024 1,134,991 1,024,967 9.69% GENTLE DENTAL Property Taxes - 3,598 3,598 0.00% Interest Income 0 1 404 403 0.20% TOTAL 0 1 4,002 4,001 0.02% PROCON TIF Property Taxes 8,708 15,601 6,893 55.82% Interest Income 0 2 4,101 4,099 0.05% TOTAL 0 8,710 19,702 10,992 44.21% WALNUT HOUSING PROJECT Property Taxes 32,120 55,257 23,137 58.13% Interest Income 5,116 19,215 14,099 26.62% TOTAL - 37,236 74,472 37,236 50.00% BRUNS PET GROOMING Property Taxes 6,493 13,500 7,007 48.10% TOTAL - 6,493 13,500 7,007 48.10% GIRARD VET CLINIC Property Taxes - 14,500 14,500 0.00% TOTAL - - 14,500 14,500 0.00% GEDDES ST APTS-PROCON Property Taxes - 30,000 30,000 0.00% TOTAL - - 30,000 30,000 0.00% SOUTHEAST CROSSING Property Taxes 8,963 8,963 18,000 9,037 49.80% TOTAL 8,963 8,963 18,000 9,037 49.80% POPLAR STREET WATER Property Taxes 129 181 8,000 7,819 2.26% TOTAL 129 181 8,000 7,819 2.26% CASEY'S @ FIVE POINTS Property Taxes - 10,000 10,000 0.00% TOTAL - - 10,000 10,000 0.00% SOUTH POINTE HOTEL PROJECT Property Taxes - 90,000 90,000 0.00% TOTAL - - 90,000 90,000 0.00% Grand Island Regular Meeting - 2/8/2017 Page 19 / 50 MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET January-17 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JANUARY 2017 TODD ENCK PROJECT Property Taxes - 6,000 6,000 0.00% TOTAL - - 6,000 6,000 0.00% JOHN SCHULTE CONSTRUCTION Property Taxes 2,417 6,000 3,583 40.28% TOTAL - 2,417 6,000 3,583 40.28% PHARMACY PROPERTIES INC Property Taxes - 11,000 11,000 0.00% TOTAL - - 11,000 11,000 0.00% KEN-RAY LLC Property Taxes - 85,000 85,000 0.00% TOTAL - - 85,000 85,000 0.00% TOKEN PROPERTIES RUBY Property Taxes - 1,500 1,500 0.00% TOTAL - - 1,500 1,500 0.00% GORDMAN GRAND ISLAND Property Taxes - 40,000 40,000 0.00% TOTAL - - 40,000 40,000 0.00% BAKER DEVELOPMENT INC Property Taxes 1,687 3,000 1,313 56.23% TOTAL - 1,687 3,000 1,313 56.23% STRATFORD PLAZA INC Property Taxes - 35,000 35,000 0.00% TOTAL - - 35,000 35,000 0.00% COPPER CREEK 2013 HOUSES Property Taxes 1,602 80,000 78,398 0.00% TOTAL - 1,602 80,000 78,398 0.00% FUTURE TIF'S Property Taxes - 900,000 900,000 0.00% TOTAL - - 900,000 900,000 0.00% CHIEF INDUSTRIES AURORA COOP Property Taxes - 40,000 40,000 0.00% TOTAL - - 40,000 40,000 0.00% TOKEN PROPERTIES KIMBALL ST Property Taxes 1,269 2,700 1,431 47.01% TOTAL - 1,269 2,700 1,431 0.00% GI HABITAT OF HUMANITY Property Taxes - 8,000 8,000 0.00% TOTAL - - 8,000 8,000 0.00% AUTO ONE INC Property Taxes - 11,000 11,000 0.00% TOTAL - - 11,000 11,000 0.00% Grand Island Regular Meeting - 2/8/2017 Page 20 / 50 MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET January-17 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JANUARY 2017 EIG GRAND ISLAND Property Taxes - 50,000 50,000 0.00% TOTAL - - 50,000 50,000 0.00% TOKEN PROPERTIES CARY ST Property Taxes 3,636 8,000 4,364 45.45% TOTAL - 3,636 8,000 4,364 0.00% WENN HOUSING PROJECT Property Taxes - 4,200 4,200 0.00% TOTAL - - 4,200 4,200 0.00% COPPER CREEK 2014 HOUSES Property Taxes 11,244 11,573 200,000 188,427 5.79% TOTAL 11,244 11,573 200,000 188,427 0.00% TC ENCK BUILDERS Property Taxes - 3,000 3,000 0.00% TOTAL - - 3,000 3,000 0.00% SUPER MARKET DEVELOPERS Property Taxes - 20,000 20,000 0.00% TOTAL - - 20,000 20,000 0.00% MAINSTAY SUITES Property Taxes 11,902 25,000 13,098 47.61% TOTAL - 11,902 25,000 13,098 0.00% TOWER 217 Property Taxes 13,326 13,902 12,000 (1,902) 115.85% TOTAL 13,326 13,902 12,000 (1,902) 0.00% COPPER CREEK 2015 HOUSES Property Taxes 1,485 1,485 - (1,485) TOTAL 1,485 1,485 - (1,485) NORTHWEST COMMONS Property Taxes 131,047 131,047 - (131,047) TOTAL 131,047 131,047 - (131,047) TOTAL REVENUE 226,393 352,128 2,968,567 2,616,439 11.86% Grand Island Regular Meeting - 2/8/2017 Page 21 / 50 MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET January-17 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JANUARY 2017 EXPENSES CRA GENERAL OPERATIONS: Auditing & Accounting - 5,000 5,000 0.00% Legal Services 178 613 3,000 2,387 20.43% Consulting Services - 5,000 5,000 0.00% Contract Services 3,215 17,436 75,000 57,564 23.25% Printing & Binding - 1,000 1,000 0.00% Other Professional Services 4,953 16,000 11,047 30.96% General Liability Insurance - 250 250 0.00% Postage 13 53 200 147 26.39% Lifesafety Grant - 265,000 265,000 0.00% Legal Notices 16 61 500 439 12.16% Travel & Training 100 1,000 900 10.02% Office Supplies 72 1,000 928 7.17% Supplies - 300 300 0.00% Land - 50,000 50,000 0.00% Bond Principal - Lincoln Pool 175,000 175,000 - 100.00% Bond Interest - Lincoln Pool 11,306 20,863 9,557 54.19% PROJECTS Façade Improvement - 200,000 200,000 0.00% Building Improvement - 835,148 835,148 0.00% Other Projects - 50,000 50,000 0.00% TOTAL CRA EXPENSES 3,421 209,594 1,704,261 1,494,667 12.30% GENTLE DENTAL Bond Principal 1,925 3,917 1,992 49.15% Bond Interest 176 285 109 61.72% TOTAL GENTLE DENTAL - 2,101 4,202 2,101 50.00% PROCON TIF Bond Principal 8,067 16,416 8,349 49.14% Bond Interest 1,514 2,747 1,233 55.12% TOTAL PROCON TIF - 9,581 19,163 9,582 50.00% WALNUT HOUSING PROJECT Bond Principal 29,523 60,041 30,518 49.17% Bond Interest 7,713 14,431 6,718 53.45% TOTAL - 37,236 74,472 37,236 50.00% BRUNS PET GROOMING Bond Principal 6,493 13,500 7,007 48.10% TOTAL - 6,493 13,500 7,007 48.10% GIRARD VET CLINIC Bond Principal - 14,500 14,500 0.00% TOTAL - - 14,500 14,500 0.00% GEDDES ST APTS - PROCON Bond Principal - 30,000 30,000 0.00% TOTAL - - 30,000 30,000 0.00% Grand Island Regular Meeting - 2/8/2017 Page 22 / 50 MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET January-17 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JANUARY 2017 SOUTHEAST CROSSINGS Bond Principal - 18,000 18,000 0.00% TOTAL - - 18,000 18,000 0.00% POPLAR STREET WATER Bond Principal - 8,000 8,000 0.00% TOTAL - - 8,000 8,000 0.00% CASEY'S @ FIVE POINTS Bond Principal - 10,000 10,000 0.00% TOTAL - - 10,000 10,000 0.00% SOUTH POINTE HOTEL PROJECT Bond Principal - 90,000 90,000 0.00% TOTAL - - 90,000 90,000 0.00% TODD ENCK PROJECT Bond Principal - 6,000 6,000 0.00% TOTAL - - 6,000 6,000 0.00% JOHN SCHULTE CONSTRUCTION Bond Principal 2,417 6,000 3,583 40.28% TOTAL - 2,417 6,000 3,583 40.28% PHARMACY PROPERTIES INC Bond Principal - 11,000 11,000 0.00% TOTAL - - 11,000 11,000 0.00% KEN-RAY LLC Bond Principal - 85,000 85,000 0.00% TOTAL - - 85,000 85,000 0.00% TOKEN PROPERTIES RUBY Bond Principal - 1,500 1,500 0.00% TOTAL - - 1,500 1,500 0.00% GORDMAN GRAND ISLAND Bond Principal - 40,000 40,000 0.00% TOTAL - - 40,000 40,000 0.00% BAKER DEVELOPMENT INC Bond Principal 1,687 3,000 1,313 56.23% TOTAL - 1,687 3,000 1,313 56.23% STRATFORD PLAZA LLC Bond Principal - 35,000 35,000 0.00% TOTAL - - 35,000 35,000 0.00% COPPER CREEK 2013 HOUSES Bond Principal 1,602 80,000 78,398 2.00% TOTAL - 1,602 80,000 78,398 2.00% Grand Island Regular Meeting - 2/8/2017 Page 23 / 50 MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET January-17 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JANUARY 2017 CHIEF INDUSTRIES AURORA COOP Bond Principal - 40,000 40,000 0.00% TOTAL - - 40,000 40,000 0.00% TOKEN PROPERTIES KIMBALL STREET Bond Principal 1,269 2,700 1,431 47.01% TOTAL - 1,269 2,700 1,431 47.01% GI HABITAT FOR HUMANITY Bond Principal - 8,000 8,000 0.00% TOTAL - - 8,000 8,000 0.00% AUTO ONE INC Bond Principal - 11,000 11,000 0.00% TOTAL - - 11,000 11,000 0.00% EIG GRAND ISLAND Bond Principal - 50,000 50,000 0.00% TOTAL - - 50,000 50,000 0.00% TOKEN PROPERTIES CARY STREET Bond Principal 3,636 8,000 4,364 45.45% TOTAL - 3,636 8,000 4,364 45.45% WENN HOUSING PROJECT Bond Principal - 4,200 4,200 0.00% TOTAL - - 4,200 4,200 0.00% COPPER CREEK 2014 HOUSES Bond Principal - 200,000 200,000 0.00% TOTAL - - 200,000 200,000 0.00% TC ENCK BUILDERS Bond Principal - 3,000 3,000 0.00% TOTAL - - 3,000 3,000 0.00% SUPER MARKET DEVELOPERS Bond Principal - 20,000 20,000 0.00% TOTAL - - 20,000 20,000 0.00% MAINSTAY SUITES Bond Principal 11,902 25,000 13,098 47.61% TOTAL - 11,902 25,000 13,098 47.61% TOWER 217 Bond Principal 576 12,000 11,424 4.80% TOTAL - 576 12,000 11,424 4.80% COPPER CREEK 2015 HOUSES Bond Principal - - - - TOTAL - - - Grand Island Regular Meeting - 2/8/2017 Page 24 / 50 MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET January-17 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JANUARY 2017 NORTHWEST COMMONS Bond Principal - - - - TOTAL - - - FUTURE TIF'S Bond Principal - - 900,000 900,000 0.00% TOTAL - - 900,000 900,000 0.00% TOTAL EXPENSES 3,421 288,094 3,537,498 3,249,404 8.14% Grand Island Regular Meeting - 2/8/2017 Page 25 / 50 02/02/2017 08:09 |CITY OF GRAND ISLAND |P 1 briansc |BALANCE SHEET FOR 2017 4 |glbalsht NET CHANGE ACCOUNT FUND: 900 COMMUNITY REDEVELOPMENT AUTHOR FOR PERIOD BALANCE__________________________________________________________________________________________________________ ASSETS 900 11110 OPERATING CASH 222,971.25 907,852.15 900 11120 COUNTY TREASURER CASH .00 114,460.48 900 11305 PROPERTY TAXES RECEIVABLE .00 80,176.00 900 14100 NOTES RECEIVABLE .00 365,077.58 900 14700 LAND .00 575,369.33_______________________________________ TOTAL ASSETS 222,971.25 2,042,935.54_______________________________________ LIABILITIES 900 22100 LONG TERM DEBT .00 -281,669.00 900 22200 ACCOUNTS PAYABLE .00 -2,500.00 900 22400 OTHER LONG TERM DEBT .00 -1,280,000.00 900 22900 ACCRUED INTEREST PAYABLE .00 -6,289.06 900 25100 ACCOUNTS PAYABLE .00 -2,587.06 900 25315 DEFERRED REVENUE-PROPERY TAX .00 -5,914.00 900 25316 DEFERRED REVENUE-YR END ADJ .00 67,933.18_______________________________________ TOTAL LIABILITIES .00 -1,511,025.94_______________________________________ FUND BALANCE 900 39110 INVESTMENT IN FIXED ASSETS .00 -575,369.33 900 39112 FUND BALANCE-BONDS .00 1,250,994.94 900 39120 UNRESTRICTED FUND BALANCE .00 -1,143,501.54 900 39500 REVENUE CONTROL -226,392.73 -352,127.74 900 39600 EXPENDITURE CONTROL 3,421.48 288,094.07_______________________________________ TOTAL FUND BALANCE -222,971.25 -531,909.60_______________________________________ TOTAL LIABILITIES + FUND BALANCE -222,971.25 -2,042,935.54======================================= ** END OF REPORT - Generated by Brian Schultz ** Grand Island Regular Meeting - 2/8/2017 Page 26 / 50 Community Redevelopment Authority (CRA) Wednesday, February 8, 2017 Regular Meeting Item D1 Bills Staff Contact: Chad Grand Island Regular Meeting - 2/8/2017 Page 27 / 50 8-Feb-16 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 $ 4,751.83 Accounting $ 450.00 Officenet Inc. Postage $ 6.16 Grand Island Independent $ 16.01 Lawnscape Mowing 408 E. 2nd Life Safety Grant Wing Properties $ 20,000.00 Almquist Maltzahn Annual audit $ 4,475.00 Mayer, Burns & Koenig Total:$ 29,699.00 Grand Island Regular Meeting - 2/8/2017 Page 28 / 50 Community Redevelopment Authority (CRA) Wednesday, February 8, 2017 Regular Meeting Item E1 Committed Projects Staff Contact: Chad Grand Island Regular Meeting - 2/8/2017 Page 29 / 50 COMMITTED PROJECTS REMAINING GRANT AMOUNT 2017 FISCAL YR 2018 FISCAL YR 2019 FISCAL YR ESTIMATED COMP Bosselman Real Estate $ 300,000.00 $ 100,000.00 $ 100,000.00 $ 100,000.00 2019 Federation of Labor - Ziller Residential Grant (10/12/16) $ 60,000.00 $ 60,000.00 2017 Federation of Labor - Ziller Facade Grant (10/12/16) $ 53,200.00 $ 53,200.00 2017 Master Stylists - 114 W. 3rd - Jeanene Campos (10/12/16) $ 23,895.00 $ 23,895.00 2017 Othy's Place - 724 W. 3rd - Lindell (10/12/16) $ 61,860.18 $ 34,899.18 $ 26,961.00 2017 façade, 2018 sign South Locust/Fonner Park BID (7/13/16) $ 30,000.00 $ 15,000.00 $ 15,000.00 2018 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 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 COMP 201-203 W. 3rd St. Anson (8/24/16)$200,000 $ 200,000.00 2018 Federation of Labor - Tom Ziller (5/13/15) $115,000 $ 115,000.00 2017 Peaceful Root - 112 W. 2nd St. (1/11/17)$50,000 $ 50,000.00 2018 - Q1 Wing Properties - 110 E 3rd St (2/10/16)$20,000 $ 20,000.00 2017 Total Committed F&L Safety Grant $385,000 $ 135,000.00 $ 250,000.00 $ - Life Safety - Budget $ Remaining $ 265,000.00 Façade - Budget $ Remaining $ 200,000.00 Other Projects - Budget $ Remaining $ 885,148.00 Land - Budget $ Remaining $ 50,000.00 Land Sales - Budget $ Remaining ($250,000.00) subtotal $ 1,150,148.00 $ - Less committed ($747,142.18)($391,961.00) Balance remaining $ 403,005.82 $ (391,961.00) CRA PROPERTIES Address Purchase Price Purchase Date Demo Cost Status 408 E 2nd 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 31, 2017 Grand Island Regular Meeting - 2/8/2017 Page 30 / 50 2017 BUDGET AVAILABLE TO COMMIT EXPENSES 2017 AVAILABLE TO COMMIT COMMITTED AVAILABLE TO COMMIT Life Safety $ 265,000.00 $ 265,000.00 Façade $ 200,000.00 $ 111,994.18 $ 88,005.82 Building Improvements $ 835,148.00 $ 835,148.00 Other Projects $ 50,000.00 $ 50,000.00 Land $ 50,000.00 $ - $ 50,000.00 $ 1,400,148.00 $ 111,994.18 $ 1,288,153.82 Grand Island Regular Meeting - 2/8/2017 Page 31 / 50 Community Redevelopment Authority (CRA) Wednesday, February 8, 2017 Regular Meeting Item G1 Habitat Demolition Request Staff Contact: Chad Grand Island Regular Meeting - 2/8/2017 Page 32 / 50 We build strength, stability and self-reliance through shelter. 502 W. 2nd St., PO Box 1001, Grand Island, NE 68802 • 308-385-5510 • www.gihabitat.org January 11, 2017 Community Redevelopment Authority c/o Chad Nabity 100 E. 1st Street Grand Island, NE 68801 Dear CRA: We are negotiating for a property at 2403 W. North Front. Per a conversation with Chad Nabi- ty, the property is in a designated blighted area. Because there are deteriorated structures on the property, demolition would be needed to make way for a new Habitat home. Due to this expense, we are requesting a reimbursement grant to cover clean up costs. Anticipated costs, based on previous projects: Asbestos Inspection—$2,000 Asbestos Abatement— $4,000 Tree Removal—$2,000 Demolition and clean-up—$7,000 The anticipated total is $15,000. Because there is more than one building, we are estimating on the higher end. There would be no assistance from the Fire Department with a controlled burn due to the proximity to neighboring structures. Our property purchase is contingent on CRA grant approval. The option to purchase is only open until the first week in March, therefore, we hope that our request may be addressed at the February CRA meeting. If you have any questions, please feel free to contact me. Sincerely, Dana L. Jelinek Executive Director Grand Island Regular Meeting - 2/8/2017 Page 33 / 50 The Garney Team at Work Project Site Before and After Habitat bought a problem property, then demolished the existing structures to make way for a new home. The home was purchased by the Mora family though a Habitat home loan. Grand Island Regular Meeting - 2/8/2017 Page 34 / 50 Community Redevelopment Authority (CRA) Wednesday, February 8, 2017 Regular Meeting Item I1 Redevelopment Plan 112 W. Second Staff Contact: Chad Grand Island Regular Meeting - 2/8/2017 Page 35 / 50 Peaceful Root – 112 W. Second St. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA RESOLUTION NO. 235 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 Peaceful Root, a Nebraska LLC (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 Grand Island Regular Meeting - 2/8/2017 Page 36 / 50 Peaceful Root – 112 W. Second St. 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 $263,000, 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 8th day of February, 2017. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND NEBRASKA ATTEST:By: ___________________________________ Chair By: ___________________________________ Secretary Grand Island Regular Meeting - 2/8/2017 Page 37 / 50 Peaceful Root – 112 W. Second St. EXHIBIT A LEGAL DESCRIPTION OF REDEVELOPMENT PROJECT AREA * * * * * EXHIBIT B FORM OF REDEVELOPMENT PLAN Grand Island Regular Meeting - 2/8/2017 Page 38 / 50 Grand Island Regular Meeting - 2/8/2017 Page 39 / 50 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 - 2/8/2017 Page 40 / 50 Existing Land Use and Subject Property Grand Island Regular Meeting - 2/8/2017 Page 41 / 50 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 Grand Island Regular Meeting - 2/8/2017 Page 42 / 50 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, 2017 and passed Resolution 2017-06 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)] Grand Island Regular Meeting - 2/8/2017 Page 43 / 50 City of Grand Island Future Land Use Map Grand Island Regular Meeting - 2/8/2017 Page 44 / 50 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 Grand Island Regular Meeting - 2/8/2017 Page 45 / 50 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 Grand Island Regular Meeting - 2/8/2017 Page 46 / 50 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 Grand Island Regular Meeting - 2/8/2017 Page 47 / 50 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. Grand Island Regular Meeting - 2/8/2017 Page 48 / 50 (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. Grand Island Regular Meeting - 2/8/2017 Page 49 / 50 Grand Island Regular Meeting - 2/8/2017 Page 50 / 50