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.
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Community Redevelopment
Authority (CRA)
Wednesday, February 8, 2017
Regular Meeting
Item -1
Blight Study Request at CHAAP
Staff Contact: Chad
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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)
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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
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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.
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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.
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Community Redevelopment
Authority (CRA)
Wednesday, February 8, 2017
Regular Meeting
Item A1
Agenda 2-8-17
Staff Contact: Chad
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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
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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
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Community Redevelopment
Authority (CRA)
Wednesday, February 8, 2017
Regular Meeting
Item B1
Minutes 1-11-17
Staff Contact: Chad
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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
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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.
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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
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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
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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
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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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