09-20-2017 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, September 20, 2017
Regular Meeting Packet
Board Members:
Tom Gdowski - Chairman
Glen Murray – Vice Chairman
Sue Pirnie
Glenn Wilson
Krae Dutoit
4:00 PM
Grand Island City Hall - Community Meeting Room
Grand Island Regular Meeting - 9/20/2017 Page 1 / 197
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, September 20, 2017
Regular Meeting
Item A1
Community Redevelopment Authority Agenda 9-20-17
Staff Contact: Chad Nabity
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COMMUNITY REDEVELOPMENT AUTHORITY
AGENDA MEMORANDUM
4 p.m. September 20, 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 August 10, 2017, are submitted for approval. A MOTION is in
order.
3.APPROVAL OF FINANCIAL REPORTS. Financial reports for the period of August
1 through 31, 2017 are submitted for approval. A MOTION is in order.
4.APPROVAL OF BILLS. Payment of bills in the amount of $658,945.89 is submitted
for approval. A MOTION is in order.
5.REVIEW OF COMMITTED PROJECTS AND CRA PROPERTIES.
6.REDEVELOPMENT CONTRACT - PRATARIA VENTURES LLC. Prataria
Ventures LLC has requested $15.8 million of tax-increment financing assistance for a
three-phase development, which includes a hospital, medical office building and
hotel. The CRA passed Resolution 221 on July 27, 2016 notifying the city council of
its intent to enter into a redevelopment contract. The Regional Planning Commission
met on August 10, 2016 and passed Resolution 2016-07 finding that this plan
amendment is consistent with the comprehensive plan for the City of Grand Island.
The Grand Island City Council passed Resolution 2016-207 at its meeting on August
23, 2016. A MOTION to approve the redevelopment contract and Resolution 243 is
in order.
7.REDEVELOPMENT PLAN AMENDMENT – HUSKER HARVEST DAYS.
Concerning an amending to the redevelopment plan for CRA Area No. 25 for a Site
Specific Redevelopment Plan at a formerly used defense site for Husker Harvest Days
by Farm Progress Companies Inc. They have plans to make $7 million in upgrades to
the electrical distribution, drainage and paving to the show site. A proposed $2
million of public funds from Grand Island’s food and beverage occupation tax would
aid in the redevelopment. The CRA may forward the plan to the Regional Planning
Commission for review and to the Grand Island City Council for give 30-day notice
of a potential development contract. A MOTION to approve Resolution 244 (forward
to Regional Planning Commission) and Resolution 245 (30-day intent notice to city
council) is in order.
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8.REDEVELOPMENT PLAN AMENDMENT – O’NEILL WOOD RESOURCES.
Concerning an amending to the redevelopment plan for CRA Area No. 20 for a Site
Specific Redevelopment Plan at a formerly used defense site for 58 acres at 7100 W.
Old Potash Highway by O’Neill Wood Resources. The request is for $209,000 in tax-
increment financing to assist with site acquisition, grading, site preparation, utility
extensions and private roads for development of a construction and demolition
landfill and associated buildings. The CRA may forward the plan to the Regional
Planning Commission for review and to the Grand Island City Council for give 30-
day notice of a potential development contract. A MOTION to approve Resolution
246 (forward to Regional Planning Commission) and Resolution 247 (30-day intent
notice to city council) is in order.
9.REDEVELOPMENT PLAN AMENDMENT – MENDEZ ENTERPRISES.
Concerning an amending to the redevelopment plan for CRA Area No. 6 for a Site
Specific Redevelopment Plan in an area along Old Lincoln Highway between Carey
and Waldo avenues. The request from Mendez Enterprises is for $886,965 in tax-
increment financing to assist with the redevelopment of commercial lots. The CRA
may forward the plan to the Regional Planning Commission for review and to the
Grand Island City Council for give 30-day notice of a potential development contract.
A MOTION to approve Resolution 248 (forward to Regional Planning Commission)
and Resolution 249 (30-day intent notice to city council) is in order.
10.DEMOLITION GRANT REQUEST – HABITAT FOR HUMANITY.
Habitat for Humanity has an opportunity to purchase a deteriorated structure at 1812
W. 11th. In the event the purchase is made, Habitat is requesting a grant of up to
$14,000 to demolish a house and small sheds to prepare the lot for new construction.
A MOTION is in order.
11.RESOLUTION TO PURCHASE/SELL REAL ESTATE. Consideration of offer(s) to
sell 408 E. Second Street. The CRA bought the property in 2005 for $6,000 after a
fire damaged the home there. A proposed offer may be reviewed in closed session,
followed by action in open session.
12.DIRECTOR’S REPORT.
This is an opportunity for the director to communicate on going actions and activities
to the board and public.
13. ADJOURNMENT.
Chad Nabity
Director
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Community Redevelopment
Authority (CRA)
Wednesday, September 20, 2017
Regular Meeting
Item B1
Minutes 8-10-17
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 9/20/2017 Page 8 / 197
OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
August 10, 2017
Pursuant to due call and notice thereof, a Meeting of the Community Redevelopment
Authority of the City of Grand Island, Nebraska was conducted on August 10, 2017 at
City Hall 100 E. First Street. Notice of the meeting was given in the August 2, 2017
Grand Island Independent.
1.CALL TO ORDER. Glen Murray called the meeting to order at 4:01 p.m. The
following members were present: Murray, Glenn Wilson, Krae Dutoit and Sue
Pirnie. Also present were: Director Chad Nabity, Planning Administrative
Assistant Tracy Overstreet, Finance Director Renae Jimenez and Billy Clingman
and Brian Schultz from the Grand Island Finance Department.
Murray 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 the Minutes for the July
31, 2017 meeting was made by Dutoit and seconded by Wilson. Upon roll call
vote, all present voted aye. Motion carried 4-0.
3.APPROVAL OF FINANCIAL REPORTS. Clingman reviewed the financials from
July 1 to July 31. They include a payout for the Elk’s façade and TIF pass-through
payments. A motion for approval of the financial reports was made by Wilson and
seconded by Dutoit. Upon roll call vote, all present voted aye. Motion carried 4-0.
4.APPROVAL OF BILLS. The bills, which included a $68,132 façade grant payout
for Wing Properties and a $1,000 appraisal fee to the Nebraska Department of
Roads for land at the Highway 34 and South Locust Street, were reviewed by
Nabity. A motion was made by Pirnie and seconded by Dutoit to approve the bills
in the amount of $69,243.46. Upon roll call vote, all present voted aye. Motion
carried 4-0.
5.REVIEW OF COMMITTED PROJECTS & CRA PROPERTY. Nabity provided
an overview of the committed projects. He said most will need payout in the next
year. He expects payout for the Federation Labor Temple to occur before fiscal
year end as owner Tom Ziller has advertised leasing the apartments. Nabity said
commitments on the Hedde Building will not be this fiscal year and likely not in
the next year either due to the complexity of the project. Nabity said he received a
Grand Island Regular Meeting - 9/20/2017 Page 9 / 197
call about the former Ron’s Transmission lot on Third Street and about the Second
Street property from potential buyers.
6.REDEVELOPMENT CONTRACT WEINRICH DEVELOPMENTS. Nabity said
the Grand Island City Council approved the redevelopment plan for the four-plex
to be built at 523 E. Division/206 S. Plum. Weinrich Developments Inc. has
requested $52,768 of tax-increment financing. Nabity said the only question from
city council was in regards to the 2014 housing study that indicated 1,700 housing
units needed to be added in Grand Island by 2019. The question was when will the
study need to be redone and does Grand Island have the housing it now needs.
Nabity said the housing study will need to be redone in 2019 for Community
Development Block Grant and Housing and Urban Development guidelines. He
anticipates that Grand Island will still have a housing deficit when the next study is
done.
A motion was made by Pirnie and seconded by Wilson to approve both the
redevelopment contract and Resolution 242 for the bond note. Upon roll call vote,
all present voted aye. Motion carried 4-0.
7. FOLLOW-UP ON BUDGET DISCUSSION AND POSSIBLE ACTION. Nabity
said the CRA mill levy has been at 2.6. Last year, that raised $630,000, which
accounted for $430,000 for CRA activities and $200,000 for the Lincoln Pool
bond. Next year, at the same levy, about $757,000 would be raised, which would
be $570,000 for CRA activities and $200,000 for the Lincoln Pool bond. Given the
city’s budget position and the CRA’s cash position, Nabity suggested amending
the budget approved July 31 to lower the levy to 2.3. Each mill equates to about
$29,000 so the lowering would mean about $87,000 less in revenue. That would
help the city, but still allow the CRA to maintain its programming. Nabity also
suggested adding back in the $100,000 in land sales, given two recent inquiries for
possible purchases. Putting the line item back in would give the CRA the ability to
receive the money and also the authority to apply it toward CRA projects. Murray
said he thinks the levy lowering is a good idea to show support for the overall
budget of the community and that the CRA is doing its share to help. Dutoit
agreed.
A motion was made by Wilson and seconded by Dutoit to lower the levy to 2.3 and
add $100,000 back into land sales. Upon roll call vote, all present voted aye.
Motion carried 4-0.
8.APPROVE RESOLUTION TO PURCHASE/SELL REAL ESTATE. None.
9.DIRECTORS REPORT. Nabity said the $1,000 approved in the bills would be
sent to the Nebraska Department of Roads to begin the appraisal process for the
free right land at Highway 34 and South Locust Street. In the event the state would
sell that land, Nabity said the CRA has budgeted $200,000 in land purchases.
Nabity said the CRA will also see two redevelopment plans at the former
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Cornhusker Army Ammunition Plant next month. One plan is for Husker Harvest
Days and the other is for O’Neill Wood Resources. Nabity said the Nebraska State
Historical Society will be holding a hearing at 1 p.m. September 8 in Kearney
regarding downtown Grand Island being declared a historic district. That
declaration is required for the Hedde Building to be eligible for historic tax credits,
he said.
10. ADJOURNMENT. Murray adjourned the meeting at 4:21 p.m.
The next meeting is scheduled for 4 p.m., Wednesday, September 13, 2017.
Respectfully submitted
Chad Nabity
Director
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Community Redevelopment
Authority (CRA)
Wednesday, September 20, 2017
Regular Meeting
Item C1
Financials August 2017
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 9/20/2017 Page 12 / 197
MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET
August-17 YEAR TO DATE BUDGET BALANCE USED
CONSOLIDATED
Beginning Cash 1,004,657 843,818
REVENUE:
Property Taxes - CRA 10,724 411,472 566,972 137,169 72.57%
Property Taxes - Lincoln Pool 4,518 129,780 195,863 68,270 66.26%
Property Taxes -TIF's 82,288 863,992 1,809,856 979,716 47.74%
Loan Income (Poplar Street Water Line)- - 8,000 8,000 0.00%
Interest Income - CRA 28 221 300 79 73.58%
Interest Income - TIF'S 1 5,122 23,720 18,598 21.59%
Land Sales - - 250,000 250,000 0.00%
Other Revenue - CRA 1,100 8,455 130,000 121,545 6.50%
Other Revenue - TIF's - 10,082 - - #DIV/0!
TOTAL REVENUE 98,660 1,429,125 2,984,710 1,583,376 47.88%
TOTAL RESOURCES 1,103,317 1,429,125 3,828,529 1,583,376
EXPENSES
Auditing & Accounting - 4,475 5,000 525 89.50%
Legal Services - 613 3,000 2,387 20.43%
Consulting Services - - 5,000 5,000 0.00%
Contract Services 76 43,341 75,000 31,659 57.79%
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 - 59 200 141 29.47%
Life Safety - - 265,000 265,000 0.00%
Legal Notices 35 189 500 311 37.81%
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 - 3,798 50,000 46,203 7.60%
Bond Principal - Lincoln Pool - 175,000 175,000 - 100.00%
Bond Interest - 21,388 20,863 - 102.51%
Façade Improvement 1,000 1,000 200,000 199,000 0.50%
Building Improvement 68,132 200,303 835,148 634,845 23.98%
Other Projects - - 50,000 50,000 0.00%
Bond Principal-TIF's - 766,118 1,815,774 1,053,332 42.19%
Bond Interest-TIF's - 17,462 17,463 1 100.00%
Interest Expense - - - - #DIV/0!
TOTAL EXPENSES 69,243 1,238,870 3,537,498 2,302,829 35.02%
INCREASE(DECREASE) IN CASH 29,416 190,255 (552,788)
ENDING CASH 1,034,073 190,255 291,031 -
CRA CASH 710,326
Lincoln Pool Tax Income Balance 182,426
TIF CASH 141,321
Total Cash 1,034,073
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF AUGUST 2017
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MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET
August-17 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF AUGUST 2017
GENERAL OPERATIONS:
Property Taxes - CRA 10,724 411,472 548,641 137,169 75.00%
Property Taxes - Lincoln Pool 4,518 129,780 198,050 68,270 65.53%
Interest Income 28 221 300 79 73.58%
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 1,100 8,455 130,000 121,545 6.50%
TOTAL 16,371 549,928 1,134,991 585,063 48.45%
GENTLE DENTAL
Property Taxes 5,713 3,598 - 158.78%
Interest Income 1 404 403 0.36%
TOTAL - 5,714 4,002 403 142.79%
PROCON TIF
Property Taxes 27,243 15,601 - 174.63%
Interest Income 1 5 4,101 4,096 0.11%
TOTAL 1 27,248 19,702 4,096 138.30%
WALNUT HOUSING PROJECT
Property Taxes 57,918 55,257 - 104.82%
Interest Income 5,116 19,215 14,099 26.62%
Other Revenue 10,082 -
TOTAL - 73,116 74,472 14,099 98.18%
BRUNS PET GROOMING
Property Taxes 13,900 13,500 - 102.96%
TOTAL - 13,900 13,500 - 102.96%
GIRARD VET CLINIC
Property Taxes 5,509 14,500 8,991 37.99%
TOTAL - 5,509 14,500 8,991 37.99%
GEDDES ST APTS-PROCON
Property Taxes 14,519 30,000 15,481 48.40%
TOTAL - 14,519 30,000 15,481 48.40%
SOUTHEAST CROSSING
Property Taxes 13,826 18,000 4,174 76.81%
TOTAL - 13,826 18,000 4,174 76.81%
POPLAR STREET WATER
Property Taxes 430 7,916 8,000 84 98.95%
TOTAL 430 7,916 8,000 84 98.95%
CASEY'S @ FIVE POINTS
Property Taxes 7,315 10,000 2,685 73.15%
TOTAL - 7,315 10,000 2,685 73.15%
SOUTH POINTE HOTEL PROJECT
Property Taxes 40,117 83,682 90,000 6,318 92.98%
TOTAL 40,117 83,682 90,000 6,318 92.98%
Grand Island Regular Meeting - 9/20/2017 Page 14 / 197
MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET
August-17 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF AUGUST 2017
TODD ENCK PROJECT
Property Taxes 3,349 6,000 2,651 55.82%
TOTAL - 3,349 6,000 2,651 55.82%
JOHN SCHULTE CONSTRUCTION
Property Taxes 6,092 6,000 - 101.54%
TOTAL - 6,092 6,000 - 101.54%
PHARMACY PROPERTIES INC
Property Taxes 6,156 11,000 4,844 55.96%
TOTAL - 6,156 11,000 4,844 55.96%
KEN-RAY LLC
Property Taxes 23,622 85,000 61,378 27.79%
TOTAL - 23,622 85,000 61,378 27.79%
TOKEN PROPERTIES RUBY
Property Taxes 1,531 1,500 - 102.10%
TOTAL - 1,531 1,500 - 102.10%
GORDMAN GRAND ISLAND
Property Taxes 25,521 53,235 40,000 - 133.09%
TOTAL 25,521 53,235 40,000 - 133.09%
BAKER DEVELOPMENT INC
Property Taxes 3,491 3,000 - 116.37%
TOTAL - 3,491 3,000 - 116.37%
STRATFORD PLAZA INC
Property Taxes 15,809 32,978 35,000 2,022 94.22%
TOTAL 15,809 32,978 35,000 2,022 94.22%
COPPER CREEK 2013 HOUSES
Property Taxes 261 45,302 80,000 34,698 0.00%
TOTAL 261 45,302 80,000 34,698 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 18,844 40,000 21,156 47.11%
TOTAL - 18,844 40,000 21,156 0.00%
TOKEN PROPERTIES KIMBALL ST
Property Taxes 2,627 2,700 73 97.29%
TOTAL - 2,627 2,700 73 0.00%
GI HABITAT OF HUMANITY
Property Taxes 2,141 8,000 5,859 26.76%
TOTAL - 2,141 8,000 5,859 0.00%
Grand Island Regular Meeting - 9/20/2017 Page 15 / 197
MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET
August-17 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF AUGUST 2017
AUTO ONE INC
Property Taxes 6,178 11,000 4,822 56.16%
TOTAL - 6,178 11,000 4,822 0.00%
EIG GRAND ISLAND
Property Taxes 36,971 50,000 13,029 73.94%
TOTAL - 36,971 50,000 13,029 0.00%
TOKEN PROPERTIES CARY ST
Property Taxes 7,974 8,000 26 99.67%
TOTAL - 7,974 8,000 26 0.00%
WENN HOUSING PROJECT
Property Taxes 2,252 4,200 1,948 53.63%
TOTAL - 2,252 4,200 1,948 0.00%
COPPER CREEK 2014 HOUSES
Property Taxes 148 149,066 200,000 50,934 74.53%
TOTAL 148 149,066 200,000 50,934 0.00%
TC ENCK BUILDERS
Property Taxes 215 3,000 2,785 7.16%
TOTAL - 215 3,000 2,785 0.00%
SUPER MARKET DEVELOPERS
Property Taxes - 20,000 20,000 0.00%
TOTAL - - 20,000 20,000 0.00%
MAINSTAY SUITES
Property Taxes 45,159 25,000 (20,159) 180.64%
TOTAL - 45,159 25,000 (20,159) 0.00%
TOWER 217
Property Taxes 14,471 12,000 (2,471) 120.59%
TOTAL - 14,471 12,000 (2,471) 0.00%
COPPER CREEK 2015 HOUSES
Property Taxes 3 23,531 - (23,531)
TOTAL 3 23,531 - (23,531)
NORTHWEST COMMONS
Property Taxes 138,080 - (138,080)
TOTAL - 138,080 - (138,080)
HABITAT - 8TH & SUPERIOR
Property Taxes 2,296 (2,296)
TOTAL - 2,296 - (2,296)
KAUFMAN BUILDING
Property Taxes 888 (888)
TOTAL - 888 - (888)
TOTAL REVENUE 98,660 1,429,125 2,968,567 1,583,376 48.14%
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MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET
August-17 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF AUGUST 2017
EXPENSES -
CRA
GENERAL OPERATIONS:
Auditing & Accounting 4,475 5,000 525 89.50%
Legal Services 613 3,000 2,387 20.43%
Consulting Services - 5,000 5,000 0.00%
Contract Services 76 43,341 75,000 31,659 57.79%
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 59 200 141 29.47%
Lifesafety Grant - 265,000 265,000 0.00%
Legal Notices 35 189 500 311 37.81%
Travel & Training 100 1,000 900 10.02%
Office Supplies 72 1,000 928 7.17%
Supplies - 300 300 0.00%
Land 3,798 50,000 46,203 7.60%
Bond Principal - Lincoln Pool 175,000 175,000 - 100.00%
Bond Interest - Lincoln Pool 21,388 20,863 - 102.51%
PROJECTS
Façade Improvement 1,000 1,000 200,000 199,000 0.50%
Building Improvement 68,132 200,303 835,148 634,845 0.00%
Other Projects - 50,000 50,000 0.00%
TOTAL CRA EXPENSES 69,243 455,290 1,704,261 1,249,496 26.71%
GENTLE DENTAL
Bond Principal 3,917 3,917 0 99.99%
Bond Interest 285 285 - 100.14%
TOTAL GENTLE DENTAL - 4,202 4,202 0 100.00%
PROCON TIF
Bond Principal 16,416 16,416 - 100.00%
Bond Interest 2,746 2,747 1 99.95%
TOTAL PROCON TIF - 19,162 19,163 1 99.99%
WALNUT HOUSING PROJECT
Bond Principal 60,041 60,041 0 100.00%
Bond Interest 14,431 14,431 - 100.00%
TOTAL - 74,472 74,472 0 100.00%
BRUNS PET GROOMING
Bond Principal 13,900 13,500 - 102.96%
TOTAL - 13,900 13,500 - 102.96%
GIRARD VET CLINIC
Bond Principal 5,509 14,500 8,991 37.99%
TOTAL - 5,509 14,500 8,991 37.99%
GEDDES ST APTS - PROCON
Bond Principal 14,519 30,000 15,481 48.40%
TOTAL - 14,519 30,000 15,481 48.40%
Grand Island Regular Meeting - 9/20/2017 Page 17 / 197
MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET
August-17 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF AUGUST 2017
SOUTHEAST CROSSINGS
Bond Principal 13,826 18,000 4,174 76.81%
TOTAL - 13,826 18,000 4,174 76.81%
POPLAR STREET WATER
Bond Principal 7,057 8,000 943 88.22%
TOTAL - 7,057 8,000 943 88.22%
CASEY'S @ FIVE POINTS
Bond Principal 7,315 10,000 2,685 73.15%
TOTAL - 7,315 10,000 2,685 73.15%
SOUTH POINTE HOTEL PROJECT
Bond Principal 43,566 90,000 46,434 48.41%
TOTAL - 43,566 90,000 46,434 48.41%
TODD ENCK PROJECT
Bond Principal 3,349 6,000 2,651 55.82%
TOTAL - 3,349 6,000 2,651 55.82%
JOHN SCHULTE CONSTRUCTION
Bond Principal 6,092 6,000 - 101.54%
TOTAL - 6,092 6,000 - 101.54%
PHARMACY PROPERTIES INC
Bond Principal 6,156 11,000 4,844 55.96%
TOTAL - 6,156 11,000 4,844 55.96%
KEN-RAY LLC
Bond Principal 23,622 85,000 61,378 27.79%
TOTAL - 23,622 85,000 61,378 27.79%
TOKEN PROPERTIES RUBY
Bond Principal 1,531 1,500 (31) 102.10%
TOTAL - 1,531 1,500 (31) 102.10%
GORDMAN GRAND ISLAND
Bond Principal 27,715 40,000 12,285 69.29%
TOTAL - 27,715 40,000 12,285 69.29%
BAKER DEVELOPMENT INC
Bond Principal 3,491 3,000 (491) 116.37%
TOTAL - 3,491 3,000 (491) 116.37%
STRATFORD PLAZA LLC
Bond Principal 17,168 35,000 17,832 49.05%
TOTAL - 17,168 35,000 17,832 49.05%
COPPER CREEK 2013 HOUSES
Bond Principal 44,779 80,000 35,221 55.97%
TOTAL - 44,779 80,000 35,221 55.97%
Grand Island Regular Meeting - 9/20/2017 Page 18 / 197
MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET
August-17 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF AUGUST 2017
CHIEF INDUSTRIES AURORA COOP
Bond Principal 18,844 40,000 21,156 47.11%
TOTAL - 18,844 40,000 21,156 47.11%
TOKEN PROPERTIES KIMBALL STREET
Bond Principal 2,627 2,700 73 97.29%
TOTAL - 2,627 2,700 73 97.29%
GI HABITAT FOR HUMANITY
Bond Principal 2,141 8,000 5,859 26.76%
TOTAL - 2,141 8,000 5,859 26.76%
AUTO ONE INC
Bond Principal 6,178 11,000 4,822 56.16%
TOTAL - 6,178 11,000 4,822 56.16%
EIG GRAND ISLAND
Bond Principal 36,971 50,000 13,029 73.94%
TOTAL - 36,971 50,000 13,029 73.94%
TOKEN PROPERTIES CARY STREET
Bond Principal 7,974 8,000 26 99.67%
TOTAL - 7,974 8,000 26 99.67%
WENN HOUSING PROJECT
Bond Principal 2,252 4,200 1,948 53.63%
TOTAL - 2,252 4,200 1,948 53.63%
COPPER CREEK 2014 HOUSES
Bond Principal 145,027 200,000 54,973 72.51%
TOTAL - 145,027 200,000 54,973 72.51%
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 45,159 25,000 (20,159) 180.64%
TOTAL - 45,159 25,000 (20,159) 180.64%
TOWER 217
Bond Principal 14,186 12,000 (2,186) 118.22%
TOTAL - 14,186 12,000 (2,186) 118.22%
COPPER CREEK 2015 HOUSES
Bond Principal - 23,524 - (23,524)
TOTAL - 23,524 (23,524)
Grand Island Regular Meeting - 9/20/2017 Page 19 / 197
MONTH ENDED 2016-2017 2017 REMAINING % OF BUDGET
August-17 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF AUGUST 2017
NORTHWEST COMMONS
Bond Principal - 138,080 - (138,080)
TOTAL - 138,080 (138,080)
HABITAT - 8TH & SUPERIOR
Bond Principal - 2,296 - (2,296)
TOTAL - 2,296 (2,296)
KAUFMAN BUILDING
Bond Principal - 888 - (888)
TOTAL - 888 (888)
FUTURE TIF'S
Bond Principal - - 900,000 900,000 0.00%
TOTAL - - 900,000 900,000 0.00%
TOTAL EXPENSES 69,243 1,238,870 3,537,498 2,302,829 35.02%
Grand Island Regular Meeting - 9/20/2017 Page 20 / 197
09/13/2017 15:51 |CITY OF GRAND ISLAND |P 1
briansc |BALANCE SHEET FOR 2017 11 |glbalsht
NET CHANGE ACCOUNT
FUND: 900 COMMUNITY REDEVELOPMENT AUTHOR FOR PERIOD BALANCE__________________________________________________________________________________________________________
ASSETS
900 11110 OPERATING CASH 29,416.17 1,034,073.14
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 29,416.17 2,169,156.53_______________________________________
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 39107 BUDGETARY FUND BAL - UNRESERVD .00 552,787.93
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 39130 ESTIMATED REVENUES .00 2,984,710.07
900 39140 ESTIMATED EXPENSES .00 -3,537,498.00
900 39500 REVENUE CONTROL -98,659.63 -1,429,124.62
900 39600 EXPENDITURE CONTROL 69,243.46 1,238,869.96_______________________________________
TOTAL FUND BALANCE -29,416.17 -658,130.59_______________________________________
TOTAL LIABILITIES + FUND BALANCE -29,416.17 -2,169,156.53=======================================
** END OF REPORT - Generated by Brian Schultz **
Grand Island Regular Meeting - 9/20/2017 Page 21 / 197
Community Redevelopment
Authority (CRA)
Wednesday, September 20, 2017
Regular Meeting
Item D1
Bills
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 9/20/2017 Page 22 / 197
Sept. 20, 2017
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 July $ 3,255.19
Administration fees August $ 3,255.64
Grand Island Independent legal notices $ 17.49
Computer Concepts Printer repair $ 204.95
Lawnscape South Locust lot $ 325.00
408 E. 2nd $ 76.00
408 E. 2nd - May $ 114.00
Façade grant payout Bosselman corporate $300,000
TIF Pass Throughs Kaufmann Building $ 818.11
Habitat-8th Street $ 2,116.37
Northwest Commons $ 1,288.69
Copper Creek Phase 3 $ 16,646.64
Copper Creek Phase 2 $ 104,371.47
Copper Creek $ 29,541.04
Tower 217 $ 284.43
Wenn Housing-Huston Street $ 2,074.12
EIG $ 34,044.31
Habitat $ 1,971.60
Chief-Aurora Coop $ 17,352.38
Stratford Plaza $ 15,809.23
Baker Development $ 1,661.25
Gordman $ 25,520.61
Token Properties-Ruby $ 1,410.24
Ken-Ray $ 21,723.95
Pharmacy Properties $ 5,668.28
Enck-Darr Street $ 3,084.23
South Pointe Hotel $ 40,116.58
Casey's-Five Points $ 6,736.00
Poplar Street water line $ 4,563.51
Southeast Crossing $ 1,525.45
Geddes Street $ 13,369.13
Total:$ 658,945.89
Grand Island Regular Meeting - 9/20/2017 Page 23 / 197
Community Redevelopment
Authority (CRA)
Wednesday, September 20, 2017
Regular Meeting
Item E1
Committed Projects
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 9/20/2017 Page 24 / 197
COMMITTED PROJECTS REMAINING
GRANT
AMOUNT
2017 FISCAL YR 2018 FISCAL YR 2019 FISCAL YR ESTIMATED
COMP
Auto America-3036 S. Locust (4-12-17) $ 80,000.00 $ - $ 80,000.00 2018
Bosselman Real Estate 2603 S. Locust
(6-10-15)
$ - Paid 9/20/17
Federation of Labor - Ziller Residential
Grant (10/12/16)
$ 60,000.00 $ - $ 60,000.00 2018
Federation of Labor - Ziller Facade
Grant (10/12/16)
$ 53,200.00 $ - $ 53,200.00 2018
Othy's Place - 724 W. 3rd - Lindell
(10/12/16)
$ 26,961.00 $ - $ 26,961.00 2017 sign, 2018
façade
$34,899.18 paid
March 15, 2017
South Locust/Fonner Park BID (7/13/16) $ 30,000.00 $ - $ 30,000.00 2018
Wing Properties - 110-114 E 3rd St
(9/9/15)
$ 167,016.00 $ - $ 167,016.00 2018
Total Committed $ 337,177.00 $ - $ 337,177.00 $ -
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) $ 240,000.00 $ 240,000.00 2018
Federation of Labor - Tom Ziller
(5/13/15)
$ 115,000.00 $ - $ 115,000.00 2018
Peaceful Root - 112 W. 2nd St. (1/11/17) $ 50,000.00 $ 50,000.00 2018 - Q1
Total Committed F&L Safety Grant $ 405,000.00 $ - $ 405,000.00 $ -
Life Safety - Budget $ Remaining $ 265,000.00
Façade - Budget $ Remaining $ 199,000.00
Other Projects - Budget $ Remaining $ 684,844.97
Land - Budget $ Remaining $ 46,202.50
Land Sales - Budget $ Remaining ($250,000.00)
subtotal $ 945,047.47 $ -
Less committed $0.00 ($742,177.00)
Balance remaining $ 945,047.47 $ (742,177.00)
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
August 31, 2017
Grand Island Regular Meeting - 9/20/2017 Page 25 / 197
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 $ 245,394.18 $ (45,394.18)
Building Improvements $ 835,148.00 $ 835,148.00
Other Projects $ 50,000.00 $ (90,000.00) $ 140,000.00
Land $ 50,000.00 $ - $ 50,000.00
$ 1,400,148.00 $ 155,394.18 $ 1,244,753.82
Grand Island Regular Meeting - 9/20/2017 Page 26 / 197
Community Redevelopment
Authority (CRA)
Wednesday, September 20, 2017
Regular Meeting
Item G1
Habitat Demolition Grant request
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 9/20/2017 Page 27 / 197
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
August, 30, 2017
Community Redevelopment Authority
c/o Chad Nabity
100 E. 1st Street Grand Island, NE 68801
Dear CRA:
We will be bidding on a property at 1812 W. 11th Ave. that requires removal of deteriorated
structures to make way for new construction. Per a conversation with Chad Nabity, the proper-
ty is in a designated blighted area.
Demolition of a house and small sheds will need to take place so we can build. Due to this ex-
pense, we are requesting a reimbursement grant to cover demo and clean up costs.
Anticipated costs, based on previous projects:
Asbestos Inspection— $2,000
Asbestos Abatement— $4,000
Demolition and clean-up—$8,000
The anticipated total is up to $14,000. Because there is more than one building and the space
is narrow for equipment, 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.
The auction on the property is September 20. We apologize for the short notice, but just found
out about this opportunity.
If you have any questions, please feel free to contact me.
Sincerely,
Dana L. Jelinek
Executive Director
Grand Island Regular Meeting - 9/20/2017 Page 28 / 197
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 - 9/20/2017 Page 29 / 197
Community Redevelopment
Authority (CRA)
Wednesday, September 20, 2017
Regular Meeting
Item I1
Husker Harvest Days - Redevelopment Plan
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 9/20/2017 Page 30 / 197
Farm Progress Redevelopment Plan (Husker Harvest Days) Area Page 1
Husker Harvest Days Redevelopment Project
July 2017
Farm Progress Companies, Inc. (“Farm Progress”) and the City of Grand Island,
Nebraska (the “City”) intend to complete a transaction relating to the Husker
Harvest Days show (the “Show”).
Executive Summary:
Husker Harvest Days, the World’s Largest Totally Irrigated Working Farm Show, is
celebrating its 40th year in Grand Island, Nebraska. The Show features over 600
exhibitors demonstrating the latest technology, equipment, and supplies for today’s
agricultural producers. The Show draws visitors from over 30 states and several
countries.
The long-time partnership between Farm Progress and the City has been enormously
beneficial to Central Nebraska in many ways. Aside from the national and global acclaim
of the event, the Show injects millions of dollars into the local economy via support of
local retail and personal property tax base. During the span of 12 days, hotels,
restaurants, and retail outlets throughout the region are busy. Temporary laborers are
hired, and vendors purchase internet, landscaping, rental equipment, fuel and other
services.
Farm Progress, in cooperation with the Agricultural Institute of Nebraska, also makes
substantial contributions to local philanthropies. This support includes college
scholarships for students pursuing agricultural careers, contributions to the Hall County
Agricultural Society, the Heartland Events Center, the Nebraska State Fair, livestock
auctions at county fairs, and local law enforcement and emergency response groups.
Nonprofit groups such as Central Catholic High School and the Wood River Booster
Club host concession fundraisers at the Show. In 2015, Heartland United Way’s food
drive at the Show garnered more than 8,700 pounds of food.
Through this Redevelopment Project, the City and Farm Progress seek to deepen their
local partnership by investing in critical capital improvements to the Show. These
improvements will help preserve a valuable and constructive agricultural asset and
ensure its continued prosperity for many years to come.
Project Description
This Redevelopment Project is intended to advance the long-standing partnership
between Farm Progress and the City by installing and updating critical infrastructure on
the property where the Show is held, (“Show Land”) as more specifically defined below.
These updates and improvements will enhance the overall experience for guests of the
Show and is part of a strategic plan to evolve the Show to attract national and
international guests and vendors.
Grand Island Regular Meeting - 9/20/2017 Page 31 / 197
Farm Progress Redevelopment Plan (Husker Harvest Days) Area Page 2
The City has approved a study regarding whether the Show Land is located within a
blighted or substandard area (the “Blight Study”). This Redevelopment Project
contemplates the Show Land is located within a blighted or substandard area, thereby
enabling the City to undertake a redevelopment project pursuant to Neb. Rev. Stat.
§18-2123.01. In addition, Farm Progress has formed a Sanitary Improvement District
for the Show Land, in furtherance of this Redevelopment Project.
Funding sources for the improvements identified in this Redevelopment Project will
come from the three following sources.
1.The City shall contribute $2,000,000 for use by Farm Progress toward capital
improvements on the Show Land consistent with the Redevelopment Project (the
“City Contribution”). These funds will be generated by the City’s food and
beverage tax and held by the Community Redevelopment Authority of the City of
Grand Island (“CRA”) pending completion of the capital improvements. The City
is providing these funds to the CRA pursuant to Neb. Rev. Stat. §18-2138.
2.The City and Farm Progress will secure from the Grand Island Convention
Visitor’s Bureau (“CVB”) and the Chamber of Commerce (“Chamber”) $1,000,000
for use by Farm Progress toward certain capital improvements on the Show Land
consistent with the Redevelopment Project (the “CVB/Chamber Contribution”). A
portion of this funding has already been secured and utilized for capital
improvements on the Show Land. The City will ensure the remaining
CVB/Chamber Contribution is secured on or before final City Council approval of
the Redevelopment Project.
3.In addition, the City, Farm Progress, Chamber will work together to secure from
private industry constituents and non-profits $2,000,000 for use by Farm
Progress toward certain capital improvements on the Show Land consistent with
the Redevelopment Project (“Private Industry Contribution”). If the entire Private
Industry Contribution is not secured at the time of approval of this
Redevelopment Project, Farm Progress will be required to proceed with making
capital improvements to the Show Land consistent with this Redevelopment
Project notwithstanding the absence of such Private Industry Contribution;
provided that, as and when any amounts compromising the Private Industry
Contribution are secured, such amounts shall be paid directly to Farm Progress.
4.Farm Progress shall contribute at least $2,000,000 for use toward certain capital
improvements on the Show Land as determined by Farm Progress in its sole
discretion (the “Farm Progress Contribution”).
Farm Progress will retain ownership of the Show Land and has created a Sanitary and
Improvement District to make the Show Land eligible for the Redevelopment Project. The
Redevelopment Project will primarily include projects associated with electrical
distribution, drainage and paving. This will consist of establishing an underground primary
system, removing power poles, replacing power pedestals, establishing power feeds
between transformers and pedestals, establishing surface and subsurface drainage,
Grand Island Regular Meeting - 9/20/2017 Page 32 / 197
Farm Progress Redevelopment Plan (Husker Harvest Days) Area Page 3
paving, fencing, and any exterior improvements as more specifically detailed in Exhibit A,
which are anticipated to cost at least $7 million in the aggregate to implement. Third-party
vendors whose services shall be required to make capital improvements to the Show
Land shall be selected and managed by Farm Progress.
Upon approval of this Redevelopment Project and receipt of the CVB/Chamber
Contribution, Farm Progress shall begin making capital improvements to the Show Land
consistent with this Redevelopment Project. The CRA will use the City Contribution to
reimburse Farm Progress for up to $2,000,000 of such capital improvements and
related expenses incurred by Farm Progress (including with respect to architects,
engineers, general contractors, consultants and accounting, legal and other
professional advisors). Farm Progress will submit documentation evidencing such
capital improvements and/or related expenses for which Farm Progress desires
reimbursement to the CRA. The CRA shall then reimburse Farm Progress for such
capital improvements and/or related expenses as and when incurred by Farm Progress
up to the amount of the City Contribution. Farm Progress will have no obligation to
make any capital improvements or incur any related expenses beyond the first
$7,000,000 except as otherwise determined by Farm Progress in its sole discretion.
In exchange for the City Contribution, Farm Progress agrees to host the Show for at
least twenty years. If Farm Progress fails to host the Show, Farm Progress agrees to
pay the City a penalty equal to $100,000 per year for each year prior to 2037 that Farm
Progress does not host the Show for any reason other than due to inclement weather or
any force majeure cause.
REDEVELOPMENT PROJECT SHALL BE LIMITED TO THE FOLLOWING
GEOGRAPHIC AREA:
Property Description (the “Redevelopment Project Area”)
A tract of land comprising the west half of the Southwest Quarter (SW 1/4) of Section
Twenty Five (25), Township Eleven (11) North, Range Eleven (11) West of the 6th P.M.
and all of the Southeast Quarter (SE 1/4) of Section Twenty Six (26), Township Eleven
(11) North, Range Eleven (11) West of the 6th P.M., all being in Hall County, Nebraska
and depicted in the following aerial map:
Grand Island Regular Meeting - 9/20/2017 Page 33 / 197
Farm Progress Redevelopment Plan (Husker Harvest Days) Area Page 4
Grand Island Regular Meeting - 9/20/2017 Page 34 / 197
Farm Progress Redevelopment Plan (Husker Harvest Days) Area Page 5
Existing Land Use Map
Grand Island Regular Meeting - 9/20/2017 Page 35 / 197
Farm Progress Redevelopment Plan (Husker Harvest Days) Area Page 6
THE REDEVELOPMENT PROJECT 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 City Can Undertake this Redevelopment Project on real property
located outside the corporate limits of the City for the following reasons:
[Neb. Rev. Stat. §18-2123.01]:
(a)The real property located outside the corporate limits of the city is a formerly
used defense site;
The Show Land is located outside the corporate limits of the City and is a
formerly used defense site;
(b)The formerly used defense site is located within the same county as the city
approving such redevelopment project;
The Show Land and the City are both located in Hall County;
(c)The formerly used defense site is located within a sanitary and improvement
district;
Farm Progress has created SID Number 3, which was approved by the
District Court on July 19, 2017;
(d)The governing body of the city approving such redevelopment project passes an
ordinance stating such city's intent to annex the formerly used defense site in the
future; and
Ordinance #9645 stating the intent of the City to annex the Cornhusker
Army Ammunition Plant property in whole or part as it becomes eligible for
annexation was adopted by the Grand Island City Council on August 22,
2017;
(e)The redevelopment project has been consented to by any city exercising
extraterritorial jurisdiction over the formerly used defense site.
No city is exercising extraterritorial jurisdiction over the Show Land.
Grand Island Regular Meeting - 9/20/2017 Page 36 / 197
Farm Progress Redevelopment Plan (Husker Harvest Days) Area Page 7
2.Redevelopment Project Area 25 was declared to be declared blighted and
substandard by action of the Grand Island City Council.[§18-2109] with the
passage of Resolution #2017-206 on July 25, 2017. Such declaration was
made after a public hearing in full compliance with the public notice
requirements of §18-2115 of the Act.
The City has approved the Blight Study to include the Show Land, thereby enabling the
City to undertake a redevelopment project pursuant to Neb. Rev. Stat. §18-2123.01.
3.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. Hall County adopted a
Comprehensive Plan on April 20, 2004. This Redevelopment Project is consistent with
the Comprehensive Plans of both Grand Island and Hall County, in that no changes in
the Comprehensive Plan elements are intended and will only impact property located
outside of the City’s corporate limits. The plan is also consistent with the Cornhusker
Army Ammunition Reuse Plan as prepared for the Army Corps of Engineers by RKG
Associates, Inc and Black & Veatch in 1997.
4.The Redevelopment Plan must be sufficiently complete to address the
following items: [§18-2103(13) (b)]
(a)Land Acquisition:
The Redevelopment Plan does not provide for real property
acquisition.
(b) Demolition and Removal of Structures:
The projects to be implemented with this Redevelopment Plan do not
provide directly for the demolition of structures. Some internal or other
incidental demolition may be necessary for redevelopment but the primary
purpose of this plan is to install and update improvements to the Show Land.
(c)Future Land Use Plan:
The Show Land is intended to be used for the Show. The Show Land is
located outside of the corporate limits of the City and is intended to have
no impact on the 2004 Grand Island Comprehensive Plan. The Hall
County Comprehensive Plan has this property designated for special
events and agriculture per the CAAP Reuse Plan. The Show is consistent
with both plans. [§18-2103(b) and §18-2111].
(d)Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes:
Grand Island Regular Meeting - 9/20/2017 Page 37 / 197
Farm Progress Redevelopment Plan (Husker Harvest Days) Area Page 8
As the Show Land is located outside of the City’s corporate limits, no zoning
changes are anticipated with this project. The Show Land is with the Hall
County Zoning jurisdiction and zoned AG-SE Special Agriculture/Events
zone. 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 Show Land is zoned AG-SE Special Agriculture/Events zone and can
accommodate the improvements contemplated as part of this
Redevelopment Project. [§18-2103(b) and §18-2111]
(f)Additional Public Facilities or Utilities:
Electrical, sewer, and water are available to support the Show Land.
Sewer and water are provided privately. Potable water at the site is
provided through dedicated service wells on site which are tested annually
before the event and have been, in all prior years, found to be safe. The
Redevelopment Project will include projects associated with electrical
distribution, drainage and paving. No City utilities will be impacted by the
Redevelopment Project. [§18-2103(b) and §18-2111]
5.The Act requires a Redevelopment Plan provide for relocation of
individuals and families displaced as a result of plan implementation. [§18-
2103.02].
This Redevelopment Plan will not require the displacement of individuals or families.
6.No member of the Authority, nor any employee thereof holds any interest in
any property in this Redevelopment Project Area. [§18-2106]
The Show Land is wholly owned by Farm Progress. No members of the CRA of the City
hold an interest in property within the Redevelopment Project Area.
7.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.
Outside of the City Contribution, CVB/Chamber Contribution, and any
Private Industry Contribution, Farm Progress will provide and secure all
necessary financing.
(b)Statement of proposed method of financing the Redevelopment Project.
Outside of the City Contribution, CVB/Chamber Contribution, and any
Private Industry Contribution, Farm Progress will provide all necessary
Grand Island Regular Meeting - 9/20/2017 Page 38 / 197
Farm Progress Redevelopment Plan (Husker Harvest Days) Area Page 9
financing for the project. Farm Progress will submit documentation
evidencing expenditures for improvements outlined in Exhibit A for which
Farm Progress desires reimbursement to the CRA. The CRA shall then
reimburse Farm Progress for such expenditures as and when incurred by
Farm Progress up to the amount of the City Contribution.
(c)Statement of feasible method of relocating displaced families. No families
will be displaced as a result of this Redevelopment Plan.
8.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 CRA has considered these elements in proposing this Redevelopment Plan. This
Redevelopment Plan will have no impact negative on the Comprehensive Plans for
either the City of Grand Island or Hall County. The improvements contemplated under
this Redevelopment Plan will raise property values and provide a stimulus to keep
surrounding properties properly maintained and support additional commercial
development. This will have the intended result of preventing recurring elements of
blighting conditions.
9.Time Frame for Development
This Redevelopment Plan is to be following the 2017 Show and will continue until all
improvements are accomplished, which is currently anticipated to be in 2018, and in any
event before the end of 2019. The effectiveness of this Redevelopment Project will be
evaluated in November of each year beginning in November of 2017. It is anticipated that
this Redevelopment Plan and the money appropriated to support the Redevelopment
Plan will result in increased property values and economic stimulus to the City beginning
in 2017 and continuing thereafter for decades to come.
10.Justification of Project
Grand Island Regular Meeting - 9/20/2017 Page 39 / 197
Farm Progress Redevelopment Plan (Husker Harvest Days) Area Page 10
One of the keys to this Redevelopment Plan is to enhance the Show and the benefits of
the retail and personal services associated with the Show. We expect the
Redevelopment Project’s improvements to support the entire community, but
particularly the retail, dining, hospitality, and entertainment industries. This
Redevelopment Project does not propose to tear down any buildings with historic value.
11.Cost Benefit Analysis
This Redevelopment Plan does not permit the use of TIF. Any project using TIF will need
to be approved with a separate plan amendment that will include a cost benefit analysis.
(a) 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 Redevelopment
Project. The electric utility has sufficient capacity to support this
Redevelopment Project. It is not anticipated that this Redevelopment
Project will impact schools. Fire and police protection are available and
should not be impacted by this Redevelopment Project.
(b)Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
The Show injects millions of dollars into the local economy via support of
local retail and personal property tax base. During the span of 12 days,
hotels, restaurants, and retail outlets throughout the region are busy.
Temporary laborers are hired, and vendors purchase internet,
landscaping, rental equipment, fuel and other services. Farm Progress
also supports local philanthropies, and contributes to local law
enforcement and emergency response groups.
(c)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
(d)Any other impacts determined by the authority to be relevant to the consideration
of costs and benefits arising from the redevelopment project.
This Redevelopment Project will serve as an economic boost for numerous
industries in the Grand Island area. This Redevelopment Project will
increase Grand Island’s ability to compete for talented individuals.
Time Frame for Development
It is anticipated that all improvements associated with this Redevelopment Project will
commence on or shortly after approval of the Redevelopment Project by the City and
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Farm Progress Redevelopment Plan (Husker Harvest Days) Area Page 11
the CRA and be completed by the end of 2018, and in any event before the end of
2019.
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Farm Progress Redevelopment Plan (Husker Harvest Days) Area Page 12
Exhibit A
Husker Harvest Days
Item Description Quantity Units
PAVING & EXCAVATION
Excavation 75,000 CY
7" TH. Concrete Pavement 71,180 SY
7" TH. Crushed Concrete 6,750 TONS
WATER SERVICE
1"HDPE Water Pipe 935 LF
2"HDPE Water Pipe 775 LF
4" PVC Water Pipe 3,365 LF
6" PVC Water Pipe 2,765 LF
5 1/4" Pumper Hydrant, M.J.3 EA
Muller 3/4" Yard Hydrant 18 EA
6" Gate Valve, M.J.6 EA
STORM SEWER
12" HDPE Storm Sewer 4,550 LF
15" HDPE Storm Sewer 5,650 LF
18" HDPE Storm Sewer 6,120 LF
18" RCP Storm Sewer 1,000 LF
21" RCP Storm Sewer 215 LF
24" RCP Storm Sewer 560 LF
48" RCP Storm Sewer 380 LF
18" RCP Flared End Section 8 EA
21" RCP Flared End Section 2 EA
24" RCP Flared End Section 4 EA
48" RCP Flared End Section 6 EA
21" X 45 deg. Bend 1 EA
24" X 60 deg. Bend 1 EA
2' X 2' Inlets 77 EA
Trench Backfill 2,500 CY
SECURITY FENCING
Fence (6' Chain Link, Posts @ 10' CL)7,215 LF
2 X 16' Swinging Gates w/ Locking Mech.1 EA
2 X 17' Swinging Gates w/ Locking Mech.3 EA
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Farm Progress Redevelopment Plan (Husker Harvest Days) Area Page 13
25 currently purchased, 7 needs to be purchased, 32 installed
25 currently purchased, 7 needs to be purchased, 32 installed
5 extra for future needs
2 X 18' Swinging Gates w/ Locking Mech.1 EA
2 X 30' Swinging Gates W/ Wheel & Locking Mech.1 EA
1 X 10' Swinging Gates w/ Locking Mech.2 EA
2 X 16' Sliding Gates w/ Locking Mech.1 EA
2 X 17' Sliding Gates w/ Locking Mech.1 EA
Stop Bar 9 EA
ELECTRICAL
15KV Medium Voltage Switch 1 EA
15KV Medium Voltage Distribution Cable 7,180 LF
4" Conduit for 15KV Cable 7,180 LF
600V USE Direct Bury Cable 25,944 LF
Transformer Vaults 32 EA
600V Transformers 32 EA
600V Disconnects 30 EA
600V Distribution Panels 17 EA
600V Power Pedestals 116 EA
Grand Island Regular Meeting - 9/20/2017 Page 43 / 197
Husker Harvest Days – Farm Progress Companies, Inc.
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 244
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA, SUBMITTING A PROPOSED
REDEVELOPMENT CONTRACT TO THE HALL COUNTY REGIONAL PLANNING
COMMISSION FOR ITS RECOMMENDATION
WHEREAS, this Community Redevelopment Authority of the City of Grand
Island, Nebraska ("Authority"), pursuant to the Nebraska Community
Development Law (the "Act"), prepared a proposed redevelopment plan (the
"Plan") a copy of which is attached hereto as Exhibit 1, for redevelopment of an
area within the city limits of the City of Grand Island, Hall County, Nebraska; and
WHEREAS, the Authority is required by Section 18-2112 of the Act to submit
said to the planning board having jurisdiction of the area proposed for redevelopment
for review and recommendation as to its conformity with the general plan for the
development of the City of Grand Island, Hall County, Nebraska;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
The Authority submits to the Hall County Regional Planning Commission the
proposed Plan attached to this Resolution, for review and recommendation as to its
conformity with the general plan for the development of the City of Grand Island, Hall
County, Nebraska.
Passed and approved this 20th day of September, 2017
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By___________________________
Chairperson
ATTEST:
__________________________
Secretary
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Husker Harvest Days – Farm Progress Companies, Inc.
COMMUNITY REDEVELOPMENT AUTHORITY OF THE
CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 245
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA, PROVIDING NOTICE OF INTENT TO ENTER INTO A REDEVELOPMENT
CONTRACT AFTER THE PASSAGE OF 30 DAYS AND OTHER MATTERS
WHEREAS, this Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), has received a proposed redevelopment plan under the Nebraska
Community Development Law (the “Act”) on a project within Redevelopment Area 25, from Farm
Progress Companies, Inc. for Husker Harvest Days, (The "Developer") for redevelopment of an
area at a formerly used defense site within Hall County, as set forth in Exhibit 1 attached hereto
area; and
WHEREAS, this Community Redevelopment Authority of the City of Grand Island,
Nebraska ("Authority"), is proposing to use public funds on a project within Redevelopment
Area 25;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
Section 1. In compliance with section 18-2114 of the Act, the Authority hereby gives the
governing body of the City notice that it intends to enter into the Redevelopment Contract, attached
as Exhibit 1, with such changes as are deemed appropriate by the Authority, after approval of the
redevelopment plan amendment related to the redevelopment project described in the
Redevelopment Contract, and after the passage of 30 days from the date hereof.
Section 2. The Secretary of the Authority is directed to file a copy of this resolution with the
City Clerk of the City of Grand Island, forthwith.
Passed and approved this 20th day of September, 2017
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA.
By ___________________________
Chairperson
ATTEST:
___________________
Secretary
Grand Island Regular Meeting - 9/20/2017 Page 45 / 197
Community Redevelopment
Authority (CRA)
Wednesday, September 20, 2017
Regular Meeting
Item I2
O'Neill Wood Resources
Staff Contact: Chad Nabity
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2018 2019 2020
Income
Recycling / Landfill Tip Fees $200,000 $245,000 $300,000
Recyclable material Sales $50,000 $120,000 $160,000
Compost Sales $20,000 $25,000 $60,000
Gross Income $270,000 $390,000 $520,000
Expenses
Salary (incl. OH and payroll costs $60,000 $120,000 $200,000
Equipment Lease $20,000 $40,000 $60,000
Utilities $5,000 $5,000 $15,000
State and local taxes $10,000 $10,000 $20,000
training costs $30,000 $20,000 $20,000
Insurance $10,000 $10,000 $20,000
Construction Loan payments $36,000 $55,000 $130,000
Advertising $3,000 $6,000 $6,000
Profesional Fees $3,000 $3,000 $3,000
Repairs and Maintenance $5,000 $5,000 $10,000
Construction Contingency $50,000 $50,000 $0
Total Expenses $232,000 $324,000 $484,000
Net Profit (before Taxes)$38,000 $66,000 $36,000
O'Neill North Plant Project 3-Year P&L Proforma
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Purchase, planning, and studies
Engineering Study by OA $25,000
Legal services for DEQ application $2,000
Purchase Agreement with EDC $10,000
Blight Study by MPC $3,500
Legal Services for blight study $3,000
Tax Increment financing costs
Legal services for meetings $4,000
Filing Fees $2,400
Misc.$2,000
Landfill Design and Permitting Costs
Landfill filing fees for state and local $5,500
Legal Services for permitting process $25,000
Engineering services during permitting process $4,500
Landfill construction plans $20,000
Construction oversight $30,000
Purchase of property $405,000
Construction Costs
Landfill earthwork $300,000
build access roads $100,000
remove old utilities $25,000
Site fencing $50,000
Repair and upgrade industrial well $100,000
New water lines $10,000
Earthwork for Building Pad $45,000
Electrical and utilities $10,000
Construct New Building $1,250,000
Install C& D Equipment $75,000
Equipment Purchases
O'Neill Companies North Plant Project
Grand Island Regular Meeting - 9/20/2017 Page 54 / 197
C&D Recycling Equipment $450,000
New mobile Wood Grinder (date not firm)$750,000
Landfill Compactor $200,000
Excavator $200,000
Wheel Loader $200,000
Misc Equipment $150,000
Compost Equipment $150,000
Dozer $150,000
Grand Total $4,756,900
Costs By Scope
Planning, engineering, legal $106,900
Land Purchase $405,000
Earthwork and Utilties (self Performed)$615,000
Construction of building $1,380,000
Equipment Purchases $2,250,000
total $4,756,900
Capital Sources
Tax Increment Financing (NET)$200,000
GIEDC LB 850 $210,000
Cash from landfill and OTE / OWR $1,400,000
NDEQ Waste Grants $600,000
Loans $2,346,900
Grand Island Regular Meeting - 9/20/2017 Page 55 / 197
Site Specific Redevelopment Plan
Grand Island CRA Area 20 (CAAP)
May 2017
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area 20 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 20.
Executive Summary:
Project Description
THE REDEVELOPMENT OF THE PROPERTY (58 ACRES LOCATED IN PART OF
THE SOUTHEAST QUARTER (SE1/4) OF SECTION EIGHTEEN (18), TOWNSHIP
ELEVEN (11) NORTH, RANGE TEN (10) WEST OF THE 6TH P.M., HALL
COUNTY, NEBRASKA) NORTH OF THE CURRENT O’NEILL WOOD
RESOURCES FACILITY 7100 W. OLD POTASH HIGHWAY (NORTHWEST
CORNER OF ALDA ROAD AND OLD POTASH HIGHWAY) FOR INDUSTRIAL
USES, INCLUDING A CONSTRUCTION AND DEMOLITION LANDFILL.
The use of Tax Increment Financing to aid in rehabilitation expenses associated with
redevelopment of the property located at 7100 W. Old Potash Highway. The proposed
plans would include the development of a construction and demolition landfill and all
associated buildings. The use of Tax Increment Financing is an integral part of the
development plan and necessary to make this project affordable. The use of this property
of industrial non-residential uses is consistent with the Cornhusker Army Ammunition
Plant (CAAP) reuse plan as approved and adopted by the CAAP Reuse Committee and
the Hall County Board of Supervisors. This project would not be feasible without the use
of TIF.
O’Neill Wood Resources owns a portion of the property and has a contract to purchase
additional property contingent on the approval of Tax Increment Financing. O’Neill
Wood Resources has been located on the balance of this property since 2009. The
purchase price the additional property is a TIF eligible activity. The developer is
responsible for and has provided evidence that they can secure adequate debt financing to
cover the costs associated with this project. The Grand Island Community
Redevelopment Authority (CRA) intends to pledge the ad valorem taxes generated over
the 15-year period beginning January 1, 2019 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”)
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LEGAL DESCRIPTION
A TRACT OF LAND LOCATED IN PART OF THE SOUTHEAST QUARTER (SE1/4)
OF SECTION EIGHTEEN (18), TOWNSHIP ELEVEN (11) NORTH, RANGE TEN
(10) WEST OF THE 6TH P.M., HALL COUNTY, NEBRASKA, AND MORE
PARTICULARLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE SOUTHEAST CORNER OF SECTION 18; THENCE ON
AN ASSUMED BEARING OF N01°18'49"W, ALONG THE EAST LINE OF SAID
E1/2 OF SECTION 18, A DISTANCE OF 591.59 FEET; THENCE S88°41'11"W A
DISTANCE OF 4.22 FEET TO THE POINT OF BEGINNING; THENCE S89°02'09"W
A DISTANCE OF 2510.04 FEET; THENCE N00°59'37"W A DISTANCE OF 927.97
FEET; THENCE N89°02'52"E A DISTANCE OF 820.31 FEET TO A POINT ON THE
WEST LINE OF 86 FT. DRAINAGE EASEMENT; THENCE N01°11'12"W, ALONG
SAID WEST LINE OF DRAINAGE EASEMENT, A DISTANCE OF 76.55 FEET;
THENCE N89°24'56"E A DISTANCE OF 1639.82 FEET TO A POINT OF
CURVATURE; THENCE AROUND A CURVE IN A CLOCKWISE DIRECTION,
HAVING AN ANGLE OF 20°33'43", HAVING A RADIUS OF 722.17 FEET, AND
CHORD BEARING S11°30'01"E A CHORD DISTANCE OF 257.78 FEET; THENCE
S01°14'28"E A DISTANCE OF 740.06 FEET TO THE POINT OF BEGINNING.
SAID TRACT CONTAINS A CALCULATED AREA OF 2,442,827.01 SQUARE FEET
OR 56.080 ACRES MORE OR LESS, OF WHICH 1.02 ACRES ARE COUNTY ROAD
RIGHT-OF-WAY.
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Existing Land Use and Subject Property
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The tax increment will be captured for the tax years the payments for which become
delinquent in years 2020 through 2034 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 the construction of a
Construction and Demolition Recycling Center and the associated structures
necessary to facilitate operation of the landfill. This use requires separate
permitting by both Hall County and the Nebraska Department of Environmental
Quality.
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.
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1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on February 14, 2017.[§18-2109] Such
declaration was made after a public hearing with full compliance with the public
notice requirements of §18-2115 of the Act.
The City Can Undertake this Redevelopment Project on real property
located outside the corporate limits of the City for the following reasons:
[Neb. Rev. Stat. §18-2123.01]:
(a)The real property located outside the corporate limits of the city is a
formerly used defense site;
The Site is located outside the corporate limits of the City and is a
formerly used defense site;
(b)The formerly used defense site is located within the same county as the city
approving such redevelopment project;
The Site and the City are both located in Hall County;
(c)The formerly used defense site is located within a sanitary and
improvement district;
O'Neill Wood Resources, LLC and CAIP, LLC have created SID Number
4 in Hall County, which was approved by the District Court on September
20, 2017.
(d)The governing body of the city approving such redevelopment project
passes an ordinance stating such city's intent to annex the formerly used defense site in
the future; and
Ordinance #9645 stating the intent of the City to annex the Cornhusker
Army Ammunition Plant property in whole or part as it becomes eligible
for annexation was adopted by the Grand Island City Council on August
22, 2017;
(e)The redevelopment project has been consented to by any city exercising
extraterritorial jurisdiction over the formerly used defense site.
No city is exercising extraterritorial jurisdiction over the Site.
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 property is not
located within Grand Island or the 2 mile extraterritorial jurisdiction of Grand Island.
Hall County adopted their comprehensive plan including the CAAP redevelopment plan
on April 20, 2004. This redevelopment plan amendment and project are consistent with
Grand Island Regular Meeting - 9/20/2017 Page 60 / 197
the Hall County Comprehensive Plan and the CAAP Reuse Plan, in that no changes in the
Comprehensive Plan elements are intended. This plan merely provides funding for the
developer to develop property with permitted uses on this property as defined by the
current and effective zoning regulations. The Hall County Regional Planning
Commission reviewed this project at their meeting on March 1, 2017 as part of the
requirements for the Nebraska Local Siting Act and recommended approval of the local
siting permit as it is consistent with the zoning on the site. The Hall County Regional
Planning Commission held a public hearing at their meeting on October 11, 2017 and
passed resolution _______ confirming that this project is consistent with the
Comprehensive Plan for the Hall County.
3. The Redevelopment Plan must be sufficiently complete to address the following
items: [§18-2103(13) (b)]
a. Land Acquisition:
This Redevelopment Plan provides for real property acquisition and this plan amendment
does not prohibit such acquisition. There is no proposed acquisition by the authority. It
is anticipated that property acquisition will be the primary eligible activity for this
project.
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
Within the Hall County Comprehensive Plan as adopted and updated since 2004 this area
and all of the CAAP grounds are designated as CAAP Reuse Area. According to the
CAAP Reuse Plan this particular area is planned for Agriculture and Special Industrial
Uses. This property is in private ownership. [§18-2103(b) and §18-2111] The attached
map also is an accurate site plan of the area after redevelopment. [§18-2111(5)]
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Site plan for the area of the landfill after completion of the project
Grand Island Regular Meeting - 9/20/2017 Page 62 / 197
d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned AG/SI-Special Agriculture/Industrial 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 proposing to construct and operate a recycling center and landfill for
construction and demolition debris. The proposed development is within the site coverage
and intensity of use limits of the district. A conditional use permit from Hall County will
be required and is currently in process. [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Municipal sewer and water are not available to this development.
Electric utilities are sufficient for the proposed use of this building.
No other utilities would be impacted by the development.
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 has a purchase agreement for the purchase of this property pending
approval of Tax Increment Financing. The total estimated project cost is $4,750,000 with
at least $1,029,000 being TIF eligible expenses. No other CRA funding has been
approved for the project. The property will be acquired for $312,000. Planning related
expenses for Architectural and Engineering and legal services of $107,000 and are
included as a TIF eligible expense. The estimated costs for on-site improvements
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including grading, site preparation, utility extensions and private road ways total
$615,000. The total of eligible expenses for this project is $1,029,000. The projected tax
increment available and to be pledged for the project is $209,000.
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 $209,000 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, 2019 through December 2034.
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 encouraging appropriate industrial
development at the CAAP.
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8. Time Frame for Development
Development of this project is anticipated to be completed between September 2017 and
December of 2018. Excess valuation should be available for this project for 15 years
beginning with the 2019 tax year.
9. Justification of Project
The project has received approval from the Hall County Board in the form of a
conditional use permit. The Planning Commission recommended in favor of the project
in March of 2017 as it is consistent with the zoning in place at the site. This project will
provide a local site for recycling and landfilling construction and demolition materials in
a manner consistent with state and federal laws. The location of this site should result in
more competitive bids for demolition by reducing the cost of transportation of demolition
materials. This project will also result 12 to 15 additional full time employees at the site.
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 $209,000 in public funds from tax increment
financing provided by the Grand Island Community Redevelopment Authority will be
required to complete the project. This investment by the Authority will leverage
$4,789,000 in private sector financing; a private investment of $22.91 for every TIF and
grant dollar investment.
Use of Funds.
Description TIF Funds Private Funds Total
Site Acquisition $209,000 $103,000 $312,000
Legal and Plan*$34,000 $34,000
Engineering/Arch $73,000 $73,000
On-Site Improvements $615,000 $615,000
New Construction $1,375,000 $1,375,000
Equipment $2,250,000 $2,250,000
Financing $30,000 $30,000
Contingency $100,000 $100,000
TOTALS $209,000 $4,580,000 $4,789,000
Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2017,
valuation of approximately $199,650. Based on the 2016 levy this would result in a real
property tax of approximately $2,952. It is anticipated that the assessed value will
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increase by $941,343 upon full completion, as a result of the site redevelopment. This
development will result in an estimated tax increase of over $13,919 annually. The tax
increment gained from this Redevelopment Project Area would not be available for use
as city general tax revenues, for a period of 15 years, or such shorter time as may be
required to amortize the TIF bond, but would be used for eligible private redevelopment
costs to enable this project to be realized.
Estimated 2016 assessed value:$ 199,650
Estimated value after completion $ 1,140,993
Increment value $ 941,343
Annual TIF generated (estimated)$ 13,919
TIF bond issue $ 209,000
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $199,650.
The proposed redevelopment will create additional valuation of $941,343. No tax shifts
are anticipated from the project. This project will not have a direct negative impact on
local schools systems. The school system will gain an immediate bump in personal
property taxes from the new equipment purchases and a long-term benefit from the
additional tax base created on the property. No new roads will be created for this 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.
(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
This will create some additional employment in the area. Unemployment is low in
this area. The impacts on existing employers in the area will be minimal as there are not
many new employees.
(d) Impacts on other employers and employees within the city or village and the
immediate area that are located outside of the boundaries of the area of the
redevelopment project; and
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This project will not have a negative impact on other employers in any manner
different from any other expanding business within the Grand Island area.
(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 CAAP Reuse Plan and would be a step
forward in creating the industrial district envisioned with that redevelopment. These
types of uses that do not mix well with residential uses are ideal for property that is
highly restricted for residential development.
Time Frame for Development
Development of this project is anticipated to be completed during between September of
2017 and December 31 of 2018. The base tax year should be calculated on the value of
the property as of January 1, 2018 Excess valuation should be available for this project
for 15 years beginning in 2019 with taxes due in 2020. 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 $209,000 the
projected amount of increment based upon the anticipated value of the project and current
tax rate. Based on the estimates of the expenses presented including acquisition of
property the developer will spend at least $1,029,000 on TIF eligible activities. 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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O’Neill Wood Resources
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 246
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA, SUBMITTING A PROPOSED
REDEVELOPMENT CONTRACT TO THE HALL COUNTY REGIONAL PLANNING
COMMISSION FOR ITS RECOMMENDATION
WHEREAS, this Community Redevelopment Authority of the City of Grand
Island, Nebraska ("Authority"), pursuant to the Nebraska Community
Development Law (the "Act"), prepared a proposed redevelopment plan (the
"Plan") a copy of which is attached hereto as Exhibit 1, for redevelopment of an
area within a formerly used defense site in Hall County, Nebraska; and
WHEREAS, the Authority is required by Section 18-2112 of the Act to submit
said to the planning board having jurisdiction of the area proposed for redevelopment
for review and recommendation as to its conformity with the general plan for the
development of the City of Grand Island, Hall County, Nebraska;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
The Authority submits to the Hall County Regional Planning Commission the
proposed Plan attached to this Resolution, for review and recommendation as to its
conformity with the general plan for the development of the City of Grand Island, Hall
County, Nebraska.
Passed and approved this 20th day of September, 2017
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By___________________________
Chairperson
ATTEST:
__________________________
Secretary
Grand Island Regular Meeting - 9/20/2017 Page 68 / 197
O’Neill Wood Resources
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND,
NEBRASKA
RESOLUTION NO. 247
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA, PROVIDING NOTICE OF INTENT TO ENTER INTO A
REDEVELOPMENT CONTRACT AFTER THE PASSAGE OF 30 DAYS AND OTHER MATTERS
WHEREAS, this Community Redevelopment Authority of the City of Grand Island,
Nebraska ("Authority"), has received an Application for Tax Increment Financing under
the Nebraska Community Development Law (the “Act”) on a project within Redevelopment Area 20, from O’Neill Wood Resources for 58 acres at 7100 W. Old
Potash Highway, (The "Developer") for redevelopment of an area at a formerly used
defense site within Hall County as set forth in Exhibit 1 attached hereto area; and
WHEREAS, this Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), is proposing to use Tax Increment Financing on a project
within Redevelopment Area 20;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
Section 1. In compliance with section 18-2114 of the Act, the Authority hereby gives
the governing body of the City notice that it intends to enter into the Redevelopment Contract,
attached as Exhibit 1, with such changes as are deemed appropriate by the Authority, after
approval of the redevelopment plan amendment related to the redevelopment project
described in the Redevelopment Contract, and after the passage of 30 days from the date
hereof.
Section 2. The Secretary of the Authority is directed to file a copy of this resolution
with the City Clerk of the City of Grand Island, forthwith.
Passed and approved this 20th day of September, 2017.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA.
By ___________________________
Chairperson
ATTEST:
___________________
Secretary
Grand Island Regular Meeting - 9/20/2017 Page 69 / 197
Community Redevelopment
Authority (CRA)
Wednesday, September 20, 2017
Regular Meeting
Item I3
Mendez Enterprises - Redevelopment Plan
Staff Contact: Chad Nabity
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Redevelopment Plan Amendment
Grand Island CRA Area 6
September 2017
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area 6 within the city, pursuant to
the Nebraska Community Development Law (the “Act”) and provide for the
financing of a specific infrastructure related project in Area 6.
Executive Summary:
Project Description
THE REDEVELPMENT OF PROPERTY LOCATED ALONG OLD LINCOLN
HIGHWAY BETWEEN WALDO AVENUE AND CAREY AVENUE INCLUDING
ACQUISITION OF PROPERTY, RENOVATION OF EXISTING BUILDINGS FOR
COMMERCIAL AND EDUCATIONAL USES ALLOWED IN THE DISTRICT AND
CONSTRUCTION OF NEW BUILDINGS ON VACANT PROPERTY WITHIN THE
AREA BY THE DEVELOPER. ELIGIBLE REDEVELOPMENT COSTS ARE
ANTINCIPATED TO INCLUDE: ACQUISION OF PROPERTY, RENOVATION OF
EXISTING BUILDINGS, SITE PREPARATION, DEMOLITION, UTILITY
IMPROVEMENTS, AND PARKING IMPROVEMENTS.
The use of Tax Increment Financing (“TIF”) for this project is to aid in the acquisition of
property, demolition and renovation of existing structures, necessary site work and
installation of public utilities and street improvements necessary to redevelop this site.
The use of TIF makes it feasible to complete all of the phases of the proposed project
within the timeline presented. This project could not be completed without the use of
TIF.
The acquisition of property, renovation, demolition, site work and construction of all
improvements will be paid for by the developer. The developer is responsible for and has
provided evidence that they can secure adequate debt financing to cover the costs
associated with the acquisition, site work and remodeling. The Grand Island Community
Redevelopment Authority (CRA) intends to pledge the ad valorem taxes generated over
the 15 year period beginning January 1, 2019 towards the allowable costs and associated
financing for the acquisition, demolition, renovation and site work as outlined.
TAX INCREMENT FINANCING TO PAY FOR THE ACQUISTION OF THE
PROPERTY AND RELATED SITE WORK WILL COME FROM THE
FOLLOWING REAL PROPERTY:
Property Description (the “Redevelopment Project Area”)
This property is located at the north of the Union Pacific Railroad and south of George
Street between Waldo Avenue and Carey Avenue (Not all properties in this area are
included in the plan) in central Grand Island including the attached map identifies the
subject properties and the surrounding land uses:
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Legal Descriptions
PACKER & BARR'S SECOND ADDITION L0TS 4,5, 6 & 7 BLOCK 44, LOTS 8, 9, &10 BLOCK 39, LOTS 5, 9 & 10
BLOCK 38, LOTS 4,5, 6 & 7 BLOCK 45, WEST’S SECOND SUBDIVSION LOTS 1 & 2, WEST’S SUBDIVISION
FRACTIONAL LOT 8, BLOCK 1, LOTS 1,2, FRACTIONAL LOTS 3 & 8 BLOCK 2, VACATED CLARENCE STREET
ADJACENT TO LOTS ABOVE AND STREET RIGHT OF WAY FOR OLD LINCOLN HIGHWAY, WALDO AVENUE,
GRACE AVENUE, CAREY AVENUE AND GEORGE STREET WHERE THEY ABUT THE PROPERTIES ABOVE.
It is anticipated that the tax increment will be captured for the tax years the
payments for which become delinquent in years 2020 through 2034 inclusive.
Changes to these years may be approved within the TIF agreement.
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 the construction of new
commercial space on this property.
Statutory Pledge of Taxes.
Pursuant to Section 18-2147 of the Act, any ad valorem tax levied upon real property in
the Redevelopment Project Area shall be divided, for the period not to exceed 15 years
after the effective date of the provision, which effective date shall be January 1, 2019 or
such date as stated in an approved TIF agreement.
a. That portion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the redevelopment project valuation shall
be paid into the funds, of each such public body in the same proportion as all other taxes
collected by or for the bodies; and
b. That portion of the ad valorem tax on real property in the
redevelopment project in excess of such amount, if any, shall be allocated to and, when
collected, paid into a special fund of the Authority to pay the principal of; the interest on,
and any premiums due in connection with the bonds, loans, notes, or advances on money
to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such
Authority for financing or refinancing, in whole or in part, a redevelopment project.
When such bonds, loans, notes, advances of money, or indebtedness including interest
and premium due have been paid, the Authority shall so notify the County Assessor and
County Treasurer and all ad valorem taxes upon real property in such redevelopment
project shall be paid into the funds of the respective public bodies.
Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged
to the repayment of loans or advances of money, or the incurring of any indebtedness,
whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in
whole or in part, the redevelopment project, including the payment of the principal of,
premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness.
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Redevelopment Plan Amendment Complies with the Act:
The Community Development Law requires that a Redevelopment Plan and Project
consider and comply with a number of requirements. This Plan Amendment meets the
statutory qualifications as set forth below.
1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on October 9, 2007.[§18-2109] Such
declaration was made after a public hearing with full compliance with the public
notice requirements of §18-2115 of the Act.
2. Conformation to the General Plan for the Municipality as a whole. [§18-2103 (13)
(a) and §18-2110]
Grand Island adopted a Comprehensive Plan on July 13, 2004. This redevelopment plan
amendment and project are consistent with the Comprehensive Plan, in that no changes in
the Comprehensive Plan elements are intended. This plan merely provides funding for
the developer to acquire property, rehabilitate existing structures and provide for the
necessary site work and utilities for the construction of a permitted use on this property.
3. The Redevelopment Plan must be sufficiently complete to address the following
items: [§18-2103(13) (b)]
a. Land Acquisition:
The Redevelopment Plan for Area 6 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority. The applicant will be acquiring the property from the current owner.
b. Demolition and Removal of Structures:
The project to be implemented with this plan does allow for the demolition of stuctures
within the area to provide for new construction.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. The site is
planned for commercial development. [§18-2103(b) and §18-2111] The attached map
also is an accurate site plan of the area after redevelopment. [§18-2111(5)]
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City of Grand Island Future Land Use Map
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d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned M3- Mixed Use Manufacturing 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 proposing renovate several structures on the site, move utilities and
construct the Sky Zone trampoline center on the subject property in two phases. The
property is zoned M3 and could accommodate buildings covering of up to 65% of each
property [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. New water and sewer
services may be required for this building.
Electric lines will need to be relocated to facilitate this 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]
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4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation. This amendment does not
provide for acquisition of any residences and therefore, no relocation is
contemplated. [§18-2103.02]
5. No member of the Authority, nor any employee thereof holds any interest in any
property in this Redevelopment Project Area. [§18-2106]
6. Section 18-2114 of the Act requires that the Authority consider:
a. Method and cost of acquisition and preparation for redevelopment and estimated
proceeds from disposal to redevelopers.
The developer owns some of this property and is proposing to other portions (specifically
those owned by Woody’s Welding) for redevelopment for $662,479 in the next year
provided that TIF is available for the project as defined. The cost of property acquisition
is being included as a TIF eligible expense. Costs for site preparation, rehabilitation,
demolition, utility improvements and parking improvements are included as a TIF
eligible expenses. It is estimated based on the proposed increased valuation of $2,830,825
will result in $886,965 of increment generated over a 15 year period, substantially less
than the TIF allowable expenses.
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 $886,965 from the proceeds of the TIF
Indebtedness issued by the Authority. This indebtedness will be repaid from the Tax
Increment Revenues generated from the project. TIF revenues shall be made available to
repay the original debt and associated interest after January 1, 2022 through December
2034 or as agreed to in the TIF agreement.
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,
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promote health, safety, morals, order, convenience, prosperity, and the general welfare, as
well as efficiency and economy in the process of development, including, among other
things, adequate provision for traffic, vehicular parking, the promotion of safety from
fire, panic, and other dangers, adequate provision for light and air, the promotion of the
healthful and convenient distribution of population, the provision of adequate
transportation, water, sewerage, and other public utilities, schools, parks, recreational and
community facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention of the
recurrence of insanitary or unsafe dwelling accommodations or conditions of blight.
The Authority has considered these elements in proposing this Plan Amendment. This
amendment, in and of itself will promote consistency with the Comprehensive Plan, in
that it will allow for the utilization of and redevelopment of commercial lots. This will
not significantly impact at this location. New and renovated commercial development
will raise property values and provide a stimulus to keep surrounding properties properly
maintained. The proposed private education facility will provide opportunities for local
youth to enhance their career choices within the community. This will have the intended
result of preventing recurring elements of unsafe buildings and blighting conditions.
8. Time Frame for Development
Development of phase one of this project (including construction of the Sky Zone and
educational facility) is anticipated to be completed between November of 2017 and
December of 2018. Phase two of the project will begin in 2018 and be completed by the
end of 2019. Excess valuation should be available for this project for 15 years beginning
with the 2019 and 2020 tax years.
9. Justification of Project
This location along Old Lincoln Highway has been a manufacturing and mixed use
commercial center since the earliest days of the City of Grand Island. Several
transportation projects including closing the railroad crossing at the east edge of this
property and the construction of the Highway 30 overpass have impacted the property in
a negative manner cutting it off and blanketing it in shadow. The proposed changes will
bring more people into the area and highlight properties that are visible from above while
traveling on Highway 30. The cleanup, repairs and new investment in the area will
enhance and protect the property values and tax base in this central area of the
community.
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
Mendez Enterprises LLC Redevelopment Project, including:
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Project Sources and Uses. Approximately $1,887,000 in public funds from tax
increment financing and grant funds provided by the Grand Island Community
Redevelopment Authority will be required to complete the project. This investment by
the Authority will leverage $6,049,495 in private sector financing; a private investment of
$3.20 for every TIF and grant dollar investment by the CRA.
Use of Funds Phase 1.
Description TIF Funds Private Funds Total
Site Acquisition $1,285,000 $1,285,000
Site preparation $155,236 $587,704 $742,940
Legal and Plan $60,000 $79,300 $139,300
Building Costs $993,100 $993,100
Personal Property $892,347 $892,347
Soft Costs $487,044 $487,044
TOTALS $215,236 $4,324,495 $4,539,731
Use of Funds Phase 2
Description TIF Funds Private Funds Total
Site Acquisition $662,429 $662,429
Site preparation $239,400 $239,400
Legal and Plan $9,300 $9,300
Building Costs $474,000 $474,000
Personal Property $1,060,443 $1,060,443
Soft Costs $251,157 $251,157
TOTALS $671,729 $2,025,000 $2,696,729
Use of Funds Total
Description TIF Funds Private Funds Total
Phase 1 $215,236 $4,324,495 $4,539,731
Phase 2 $671,729 $2,025,000 $2,696,729
TOTALS $886,965 $6,349,495 $7,236,460
Tax Revenue. The property to be redeveloped in Phase 1 is anticipated to have a January 1,
2018, valuation of approximately $1,057,768. Based on the 2017 levy this would result in a real
property tax of approximately $21,897. It is anticipated that the assessed value will increase by
$2,215,400, upon full completion, as a result of the site redevelopment. This development will
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result in an estimated tax increase of over $46,300 annually, resulting in $694,514 of increment
over the 15 year period.
The property to be redeveloped in Phase 2 is anticipated to have a January 1, 2019, valuation of
approximately $507,936. Based on the 2017 levy this would result in a real property tax of
approximately $10,575.58. It is anticipated that the assessed value will increase by $615,425
upon full completion, as a result of the site redevelopment. This development will result in an
estimated tax increase of over $12,830 annually, resulting in $192,452 of increment over the 15
year period. The total increment expected across both phase 1 and 2 of the project is $886,955.
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 2018 assessed value both phases $ 1,565,704
Estimated value after completion $ 4,396,629
Increment value $ 2,830,825
Annual TIF generated (estimated)$ 59,131
TIF bond issue $ 886,965
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $1,565,704.
The proposed acquisition rehabilitation demolition, and site work at this location will
result in an additional $2,830,825 of taxable valuation based on an analysis by the Hall
County Assessor’s office. No tax shifts are anticipated from the project. The project
creates additional valuation that will support taxing entities long after the project is paid
off.
(b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
No additional public service needs have been identified. Existing water and waste
water facilities will not be impacted by this development. The electric utility has
sufficient capacity to support the development. It is not anticipated that this will impact
schools. Fire and police protection are available and should not be impacted by this
development.
(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
This project will protect and enhance the existing employment within the Project Area by
maintaining and expanding business opportunities at this location. The proposed
educational facility may result in additional skilled workers to fill positions within the
community. Temporary construction employment will increase during the construction.
The construction period is expected to exceed 12 months.
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(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 facility could draw employees from other similar facilities within the City. The
educational facilities if successful will provide additional skilled employees for the labor
market, benefiting other employers with an increased employee base.
(e) Any other impacts determined by the authority to be relevant to the
consideration of costs and benefits arising from the redevelopment project.
This will provide appropriate development at this location in Grand Island. This location
has struggled since the change in traffic patterns that resulted from the closing of the at-
grade crossing across the Union Pacific Railroad.
Personal property in the project is subject to current property tax rates. Personal property
for the Project is estimated at $1,900,000. Personal property tax is not subject to TIF and
will be paid to the normal taxing entities. There will additionally be more city sales taxes
paid to the city of Grand Island as a result of new taxable sales at the restaurant and Sky
Zone.
Time Frame for Development
Development of phase 1 of this project is anticipated to be completed between November
2017 and December of 2018. The base tax year should be calculated on the value of the
property as of January 1, 2018. Excess valuation should be available for this project for
15 years beginning with the 2019 tax year. 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 $886,965 the projected
amount of increment based upon the anticipated value of the project and current tax rate.
Based on the purchase price of the property and estimates of the expenses of renovation
activities and associated engineering fees, the developer will spend more than $1,500,000
on TIF eligible activities.
See Attached Site Plan and Interior Renovation Plan
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Mendez Enterprises
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 248
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY
OF GRAND ISLAND, NEBRASKA, SUBMITTING A PROPOSED
REDEVELOPMENT PLAN TO THE HALL COUNTY REGIONAL PLANNING
COMMISSION FOR ITS RECOMMENDATION
WHEREAS, this Community Redevelopment Authority of the City of Grand
Island, Nebraska ("Authority"), pursuant to the Nebraska Community
Development Law (the "Act"), prepared a proposed redevelopment plan (the
"Plan") a copy of which is attached hereto as Exhibit 1, for redevelopment of an
area within the city limits of the City of Grand Island, Hall County, Nebraska; and
WHEREAS, the Authority is required by Section 18-2112 of the Act to submit
said to the planning board having jurisdiction of the area proposed for redevelopment
for review and recommendation as to its conformity with the general plan for the
development of the City of Grand Island, Hall County, Nebraska;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
The Authority submits to the Hall County Regional Planning Commission the
proposed Plan attached to this Resolution, for review and recommendation as to its
conformity with the general plan for the development of the City of Grand Island, Hall
County, Nebraska.
Passed and approved this 20th day of September, 2017
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By___________________________
Chairperson
ATTEST:
__________________________
Secretary
Grand Island Regular Meeting - 9/20/2017 Page 101 / 197
Mendez Enterprises
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA
RESOLUTION NO. 249
RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA, PROVIDING NOTICE OF INTENT TO ENTER INTO A REDEVELOPMENT
CONTRACT AFTER THE PASSAGE OF 30 DAYS AND OTHER MATTERS
WHEREAS, this Community Redevelopment Authority of the City of Grand Island,
Nebraska ("Authority"), has received an Application for Tax Increment Financing under the
Nebraska Community Development Law (the “Act”) on a project within Redevelopment Area 6,
from Mendez Enterprises for property located along Old Lincoln Highway between Waldo and Carey avenues, (The "Developer") for redevelopment of an area within the city limits of the City
of Grand Island as set forth in Exhibit 1 attached hereto area; and
WHEREAS, this Community Redevelopment Authority of the City of Grand Island,
Nebraska ("Authority"), is proposing to use Tax Increment Financing on a project within Redevelopment Area 6;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
Section 1. In compliance with section 18-2114 of the Act, the Authority hereby gives the
governing body of the City notice that it intends to enter into the Redevelopment Contract, attached
as Exhibit 1, with such changes as are deemed appropriate by the Authority, after approval of the
redevelopment plan amendment related to the redevelopment project described in the
Redevelopment Contract, and after the passage of 30 days from the date hereof.
Section 2. The Secretary of the Authority is directed to file a copy of this resolution with the
City Clerk of the City of Grand Island, forthwith.
Passed and approved this 20th day of September, 2017
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA.
By ___________________________
Chairperson
ATTEST:
___________________
Secretary
Grand Island Regular Meeting - 9/20/2017 Page 102 / 197
Community Redevelopment
Authority (CRA)
Wednesday, September 20, 2017
Regular Meeting
Item X1
Prataria - Redevelopment Contract
Staff Contact: Chad Nabity
Grand Island Regular Meeting - 9/20/2017 Page 103 / 197
Prataria
REDEVELOPMENT CONTRACT
This Redevelopment Contract is made and entered into as of the _______ day of
___________, 2017, by and between the Community Redevelopment Authority of the City of
Grand Island, Nebraska ("Authority"), and Prataria Ventures, LLC, a Nebraska limited liability
company ("Redeveloper").
WITNESSETH:
WHEREAS, the City of Grand Island, Nebraska (the "City'), in furtherance of the
purposes and pursuant to the provisions of Section 12 of Article VIII of the Nebraska
Constitution and Sections 18-2101 through 18-2154, Reissue Revised Statutes of Nebraska,
2012, as amended (collectively the "Act"), has designated an area within the City as blighted and
substandard;
WHEREAS, the Authority has adopted, after approval by the Mayor and Council of the
City, that redevelopment plan amendment entitled "Redevelopment Plan Amendment Grand
Island CRA Area #17 June 2016" (the "Redevelopment Plan") a copy of which is attached hereto
as Exhibit ”A”;
WHEREAS, the Redevelopment Plan calls for the Authority to support Redeveloper’s
acquisition and redevelopment efforts on real estate to be acquired or owned by the Redeveloper
which is legally described on Exhibit “B” attached hereto and incorporated herein by this
reference (“Redevelopment Project Area”);
WHEREAS, the Redevelopment Project Area incorporates all of the Redeveloper
Property as shown on Exhibit “B” attached hereto and incorporated herein by this reference
(“Project Site”);
WHEREAS, Section 18-2103(12) of the Act authorizes the Authority to carry
out plans for a program of acquisition, and improvements in connection with
redevelopment of the Project Site and to pay for the same from TIF Proceeds (as defined herein).
The Redeveloper intends to utilize the TIF Proceeds from the Project Site to pay for the Project
Site demolition, preparation, planning, infrastructure and other Redevelopment Project Costs as
defined herein;
WHEREAS, Section 18-2107 of the Act authorizes the Authority to enter into contracts
with redevelopers of property containing covenants and conditions regarding the use of such
property as the Authority may deem necessary to prevent the recurrence of substandard and
blighted areas;
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WHEREAS, Redeveloper is willing to enter into this Contract and invest approximately
One Hundred Ten Million Dollars ($110,000,000) on the Project Site redevelopment which
includes demolition and preparation of the Project Site, planning for redevelopment, utility
extension, public and private street installation, public parking and construction of a private
hospital, medical office building (MOB) and a hotel and convention center as generally shown
on the Site Plan attached hereto as Exhibit “C”;
WHEREAS, in order to help remove blight and substandard conditions and improve
conditions in an economically underutilized area, the Authority is willing to enter into this
Contract and to utilize TIF Proceeds to fund a portion of the Project Costs in order to induce the
Redeveloper to undertake the Private Improvements (“Private Improvements”) and Public
Improvements (“Public Improvements’) described below;
WHEREAS, the Private Improvements and Public Improvements on the Project Site
comprise the Redevelopment Project and are collectively known as the “Redevelopment Project
Improvements”. The costs of the Redevelopment Project Improvements are collectively known
as the “Redevelopment Project Costs” and are shown on the Sources and Uses of Funds in Exhibit
“D”, which is attached hereto and incorporated herein by this reference. The Authority and
Redeveloper agree that assistance with the Redevelopment Project Costs is deemed essential and
the Redevelopment Project would not be economically feasible without it;
WHEREAS, the proposed redevelopment project shall be constructed in three (3)
phases, with all phases constituting part of the single Redevelopment Project. The three phases
shall consist of the construction of the improvements on the three separate lots defined herein—
the Hospital Lot, the Hotel Lot, and the MOB Lot. Redeveloper intends to assign this
Redevelopment Contract to three (3) entities that will each act as the redeveloper for one phase
of the Project. Each assignee redeveloper shall assume the obligations under this
Redevelopment Contract with respect to the applicable lot and the public and private
improvements associated with said applicable lot;
WHEREAS, the Authority is willing to support the above described redevelopment of the
Project Site in accordance with the Redevelopment Plan; provided that, Redeveloper is willing
to agree to covenants and conditions regarding compulsory maintenance and upkeep of the Private
Improvements to prevent a recurrence of substandard and blighted conditions;
WHEREAS, Authority and Redeveloper desire to enter into this Redevelopment Contract
in order to implement the Redevelopment Plan and provide for the redevelopment of the Project
Site;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein set
forth, Authority and Redeveloper do hereby covenant, agree and bind themselves as follows:
ARTICLE I
DEFINITIONS AND INTERPRETATION
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Section 1.01 Terms Defined in this Redevelopment Contract.
Unless the context otherwise requires, the following terms shall have the following
meanings for all purposes of this Redevelopment Contract, such definitions to be equally
applicable to both the singular and plural forms and masculine, feminine and neuter gender of
any of the terms defined:
"Act" means Section 12 of Article VIII of the Nebraska Constitution, Sections 18-2101
through 18-2154, Reissue Revised Statutes of Nebraska, 2012, as amended, and acts amendatory
thereof and supplemental thereto.
"Authority" means the Community Redevelopment Authority of the City of Grand Island,
Nebraska.
"City" means the City of Grand Island, Nebraska.
"Governing Body" means the Mayor and City Council of the City.
“Hospital Lot” means Lot 1, Prairie Commons Subdivision, Grand Island, Hall County,
Nebraska.
“Hospital Note” means that part of the Indebtedness consisting of the Tax Increment
Development Revenue Note (Prataria Ventures, LLC Development Project), Series 2017 A in
substantially the form set forth on Exhibit “E”, purchased by the Redeveloper or Redeveloper’s
lender as set forth in Section 3.04 of this Redevelopment Contract, and in an amount not to exceed
$11,600,000.
“Hotel Lot” means Lot 3, Prairie Commons Subdivision, Grand Island, Hall County,
Nebraska.
“Hotel Note” means that part of the Indebtedness consisting of the Tax Increment
Development Revenue Note (Prataria Ventures, LLC Development Project), Series 2017 B in
substantially the form set forth on Exhibit “F”, purchased by the Redeveloper or Redeveloper’s
lender as set forth in Section 3.04 of this Redevelopment Contract, and in an amount not to exceed
$1,700,000.
“MOB Lot” means Lot 2, Prairie Commons Subdivision, Grand Island, Hall County,
Nebraska.
“MOB Note” means that part of the Indebtedness consisting of the Tax Increment
Development Revenue Note (Prataria Ventures, LLC Development Project), Series 2017 C in
substantially the form set forth on Exhibit “G”, purchased by the Redeveloper or Redeveloper’s
lender as set forth in Section 3.04 of this Redevelopment Contract, and in an amount not to exceed
$2,500,000.
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"Owner(s)" means the registered owner or owners of Indebtedness issued by the Authority
from time to time outstanding.
"Indebtedness" means any notes, loans, and advances of money or other indebtedness,
including interest and premium, if any, thereon, incurred by the Authority pursuant to the
Resolution and Article III hereof to provide financing for a portion of the Project Costs and
secured in whole or in part by TIF Revenues. The Indebtedness as initially issued by the
Authority shall consist of a Series A note in the form of the Hospital Note, a Series B note in the
form of the Hotel Note, and a Series C note in the form of the MOB Note, in an aggregate amount
not to exceed $15,800,000.00 and purchased by the Redeveloper or Redeveloper’s lender as set
forth in Section 3.04 of this Redevelopment Contract.
"Liquidated Damages Amount' means the amounts to be repaid to Authority by
Redeveloper pursuant to Section 6.02 of this Redevelopment Contract.
"Redevelopment Project" means the improvements to the Redevelopment Project Area, as
further described in Exhibit A attached hereto and incorporated herein by reference and, as used
herein, shall include the Redevelopment Project Property and additions and improvements
thereto. Without limitation, those improvements include the following public and private
improvements:
Private improvements (which shall be constructed in up to three separate phases):
Construction of an approximately 64 bed four story 172,000 square foot private
hospital on the Hospital Lot.
Construction of an approximately three story 66,000 square foot medical office
building on the MOB Lot.
Construction of an approximately 103 bed 81,000 square foot hotel and an
approximately 7,000 square foot conference center as part of the hotel on the
Hotel Lot.
Public improvements:
Public Streets as shown in the final plat of the Redevelopment Project Property.
Improvements to state highway required for access and traffic control.
Utilities to support the project including sanitary and storm sewer, and water.
Private streets with public access.
Public parking as shown in the site plan Exhibit “C”. Public parking shall consist
of a public parking license on a private parking lot in the form attached hereto as
Exhibit “H” and incorporated by this reference and shall be for the duration that
any TIF Indebtedness is outstanding.
"Project Cost Certification" means a statement prepared and signed by the Redeveloper
verifying the Redeveloper has become legally obligated for, or has paid the Project Costs
identified on Exhibit “D”.
"Project Costs" means only costs or expenses incurred by Redeveloper for the purposes
set forth in §l8-2103(12)(a) through (f), inclusive, including the providing for such costs by the
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exercise of the powers set forth in §18-2107(4) of the Act, all as identified on Exhibit “D”.
Project Costs shall include, but not be limited to demolition and site preparation expenditures,
public parking, public and private street installation, state highway improvements, all
improvements related to Project public infrastructure costs, utility extensions, project planning
and engineering and costs of the Authority all as described in Section 3.04 of this
Redevelopment Contract.
"Redeveloper" means Prataria Ventures, LLC, a Nebraska limited liability company, and
its successors and assigns.
"Redevelopment Project Area" means that certain real property situated in the City of
Grand Island, Hall County, Nebraska which has been declared blighted and substandard by the
City pursuant to the Act, and which is more particularly described on Exhibit “B” attached hereto
and incorporated herein by this reference. All such legal descriptions are subject to change based
upon any re-platting requested by the Redeveloper and approved by the City.
"Redevelopment Project Property" means all of the Redevelopment Project Area which is
the site for the improvements constituting the Project, as more particularly described on Exhibit
“B” attached hereto and incorporated herein by this reference.
"Redevelopment Contract" means this redevelopment contract between the Authority and
Redeveloper with respect to the Project.
"Redevelopment Plan" means the Redevelopment Plan Amendment (also defined in the
recitals hereto) for the Redevelopment Project Area related to the Project, as attached hereto as
Exhibit “A”, prepared by the Authority, approved by the City and adopted by the Authority
pursuant to the Act.
"Resolution" means the Resolution of the Authority authorizing the issuance of the
Indebtedness, as supplemented from time to time, and also approving this Redevelopment
Contract.
“TIF Proceeds” means the Note proceeds described in Section 3.02.
"TIF Revenues" means incremental ad valorem taxes generated on the Redevelopment
Project Property by the Project which are to be allocated to and paid to the Authority pursuant to
the Act.
Section 1.02 Construction and Interpretation.
The provisions of this Redevelopment Contract shall be construed and interpreted in
accordance with the following provisions:
(a)Whenever in this Redevelopment Contract it is provided that any person may
do or perform any act or thing the word “may" shall be deemed permissive and not
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mandatory and it shall be construed that such person shall have the right, but shall not be
obligated, to do and perform any such act or thing.
(b)The phrase "at any time" shall be construed as meaning at any time or from
time to time.
(c)The word "including" shall be construed as meaning "including, but not
limited to."
(d)The words "will" and "shall" shall each be construed as mandatory.
(e)The words "herein," "hereof," "hereunder", "hereinafter" and words of
similar import shall refer to the Redevelopment Contract as a whole rather than to any
particular paragraph, section or subsection, unless the context specifically refers thereto.
(f)Forms of words in the singular, plural, masculine, feminine or neuter shall be
construed to include the other forms as the context may require.
(g)The captions to the sections of this Redevelopment Contract are for
convenience only and shall not be deemed part of the text of the respective sections and
shall not vary by implication or otherwise any of the provisions hereof.
ARTICLE II
FINDINGS AND REPRESENTATIONS
Section 2.01 Findings of Authority.
The Authority makes the following findings:
(a)The Authority is a duly organized and validly existing community
Redevelopment Authority under the Act.
(b)The Redevelopment Plan has been duly approved by the City and adopted by
the Authority pursuant to Sections 18-2109 through 18-2117 of the Act.
(c)The Authority deems it to be in the public interest and in furtherance of the
purposes of the Act to accept the proposal submitted by Redeveloper as specified herein.
(d)The Redevelopment Project is expected to achieve the public purposes of the
Act by among other things, increasing employment, improving public infrastructure,
increasing the tax base, and lessening blighted and substandard conditions in the
Redevelopment Project Area and other purposes set forth in the Act.
(e)(1) The Redevelopment Plan is feasible and in conformity with the general
plan for the development of the City as a whole and the Redevelopment Plan is in
conformity with the legislative declarations and determinations set forth in the Act, and
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(2) Based on representations made by the Redeveloper and information
provided to the Authority:
(i)the Project would not be economically feasible without the use of
tax-increment financing, and
(ii)the Project would not occur in the Redevelopment Project Area
without the use of tax-increment financing.
(f) The Authority has determined that 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 by the
Authority and have been found to be in the long-term best interest of the community
impacted by the Project.
(g) The Authority has determined that the proposed land uses and building
requirements in the Redevelopment 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.
Section 2.02 Representations of Redeveloper.
The Redeveloper makes the following representations:
(a)The Redeveloper is a Nebraska limited liability company having the power
to enter into this Redevelopment Contract and perform all obligations contained herein
and by proper action has been duly authorized to execute and deliver this Redevelopment
Contract. Prior to the execution and delivery of this Redevelopment Contract, the
Redeveloper has delivered to the Authority a certificate of good standing, a certified copy
of the Redeveloper's operating agreement and a certified copy of the resolution or
resolutions authorizing the execution and delivery of this Redevelopment Contract.
(b)The execution and delivery of this Redevelopment Contract and the
consummation of the transactions herein contemplated will not conflict with or constitute
a breach of or default under any debenture, note or other evidence of indebtedness or any
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contract, loan agreement or lease to which Redeveloper is a party or by which it is bound,
or result in the creation or imposition of any lien, charge or encumbrance of any nature
upon any of the property or assets of the Redeveloper contrary to the terms of any
instrument or agreement.
(c)There is no litigation pending or to the best of its knowledge threatened
against Redeveloper affecting its ability to carry out the acquisition, construction,
equipping and furnishing of the Project or the carrying into effect of this Redevelopment
Contract or in any other matter materially affecting the ability to Redeveloper to perform
its obligations hereunder.
(d)The Project would not be economically feasible without the use of tax
increment financing.
(e)The Project would not occur in the Redevelopment Project Area without the
use of tax-increment financing.
ARTICLE III
OBLIGATIONS OF THE AUTHORITY
Section 3.01 Division of Taxes.
In accordance with Section 18-2147 of the Act and the terms of the Resolution, the
Authority hereby provides that any ad valorem tax on any Lot or Lots located in the
Redevelopment Project Area for the benefit of any public body be divided for a period of fifteen
years after the effective date of each phase, as described in Section 18-2147 (1) of the Act and as
more specifically defined below. The Private Improvements shall be constructed in three (3)
phases, with all phases constituting part of the Redevelopment Project. The three phases of the
Redevelopment Project shall consist of: Phase 1 construction of the Private Improvements on the
Hospital Lot; Phase 2 construction of the Private Improvements on the Hotel Lot; and Phase 3
construction of the Private Improvements on the MOB Lot. In order to optimize the Tax
Increment for the Project, each Lot may have a separate effective date for the division of ad
valorem taxes (each, an “Effective Date”). The Effective Date for the Hospital Lot shall be the
January 1, 2019. The Effective Date for the Hotel Lot shall be January 1, 2019. The Effective
Date for the MOB Lot is anticipated to be January 1, 2019 but shall be identified in a
Redevelopment Contract Amendment executed on behalf of the Redeveloper and delivered to the
Authority in the form attached hereto as Exhibit “I” and shall be determined based upon the
construction and development schedule of the MOB Lot. The Authority shall file with the Hall
County Assessor the “Notice to Divide Taxes” on or prior to August 1 in the calendar year of the
Effective Date for each Lot. Said taxes shall be divided as follows:
(a)That portion of the ad valorem tax on the real estate located within the
Hospital Lot which is produced by levy at the rate fixed each year by or for each public
body upon the "redevelopment project valuation" (as defined in the Act) of the Hospital
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Lot 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 within the Hospital Lot in
excess of such amount set forth in Section3.01(a) above (the "Incremental Ad Valorem
Tax"), if any, shall be allocated to, is pledged to, and, when collected, paid into a special
fund of the Authority (designated in the Resolution as the "Hospital Note Fund") to pay
the principal of, the interest on, and any premium due in connection with the Hospital
Note. When such Hospital Note, 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 within the Hospital Lot shall be paid into the funds of the
respective public bodies.
(c)That portion of the ad valorem tax on the real estate located within the Hotel
Lot which is produced by levy at the rate fixed each year by or for each public body upon
the "redevelopment project valuation" (as defined in the Act) of the Hotel Lot 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
(d)That portion of the ad valorem tax on real property within the Hotel Lot in
excess of such amount set forth in Section3.01(c) above (the "Incremental Ad Valorem
Tax"), if any, shall be allocated to, is pledged to, and, when collected, paid into a special
fund of the Authority (designated in the Resolution as the "Hotel Note Fund") to pay the
principal of, the interest on, and any premium due in connection with the Hotel Note.
When such Hotel Note, 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 within the Hotel Lot shall be paid into the funds of the respective public
bodies.
(e)That portion of the ad valorem tax on the real estate within the MOB Lot
which is produced by levy at the rate fixed each year by or for each public body upon the
"redevelopment project valuation" (as defined in the Act) of the MOB Lot 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
(f)That portion of the ad valorem tax on real property within the MOB Lot in
excess of such amount set forth in Section3.01(e) above (the "Incremental Ad Valorem
Tax"), if any, shall be allocated to, is pledged to, and, when collected, paid into a special
fund of the Authority (designated in the Resolution as the "MOB Note Fund") to pay the
principal of, the interest on, and any premium due in connection with the MOB Note.
When such MOB Note, 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 within the MOB Lot shall be paid into the funds of the respective public
bodies.
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With respect to the MOB Lot, Redeveloper shall execute and deliver to the Authority the
Redevelopment Contract Amendment by no later than July 1 of the year of the Effective Date
proposed in the Redevelopment Contract Amendment. The Effective Date for the MOB Lot
shall be the January 1 of the year in which the division of taxes occurs which shall be the
division date set forth in the Redevelopment Contract Amendment. In no event shall a
Redevelopment Contract Amendment be delivered after July 1, 2021.
Section 3.02 Issuance of Indebtedness
The Authority shall authorize the issuance of the Indebtedness in three taxable series
beginning with the Hospital Note. At such time as the full amount of the Hospital Note is
advanced, the Authority shall authorize the Hotel Note. At such time as the full amount of the
Hotel Note is advanced, the Authority shall authorize the MOB Note. The Hospital Note, Hotel
Note, and MOB Note (collectively referred to as the “TIF Notes”) shall be in the form and stated
principal amount and bearing interest and being subject to such terms and conditions as are
specified in the Resolution and this Redevelopment Contract; provided, at all times the
maximum amount of the Indebtedness shall be limited to the lesser of (i) the aggregate stated
face amount of the TIF Notes making up the Indebtedness, or (ii) the sum of all Project Costs
incurred by the Redeveloper as set forth on Exhibit D. No Indebtedness will be issued until
Redeveloper has acquired fee title to the Redevelopment Project Property and become obligated
for construction of the additions and improvements forming a part of the Project as described in
the Plan.
The Authority shall issue the Indebtedness in three taxable series in a maximum aggregate
principal amount of $15,800,000, and otherwise as described in this Section 3.02, for net funds
available to be purchased by Redeveloper or one or more lender identified by the Redeveloper
(each a “TIF Note Purchaser”), in a written form acceptable to Authority’s attorney, and shall
receive proceeds of such purchase from the TIF Note Purchaser in said amount. At the option of
the Authority, the Authority shall make a grant to Redeveloper in such amount, and such grant shall
offset TIF Note Purchaser’s obligation to purchase the TIF Notes. Subject to the terms of this
Agreement and the Resolution, the Authority’s Treasurer on behalf of the Authority shall have
the authority to determine the timing of issuing each series of the Indebtedness and all the other
necessary details of the Indebtedness.
The TIF Note Purchaser agrees to purchase the Indebtedness at a price equal to the
principal amount thereof, in a private placement satisfactory to the Authority as to its terms and
participants (including any pledgee thereof). Neither the Authority nor the City shall have any
obligation to provide for the sale of the Indebtedness. It is the sole responsibility of the
Redeveloper to effect the sale of the Indebtedness by purchasing the Indebtedness or to locate
one or more lenders to purchase the Indebtedness in accordance with the terms of this
Redevelopment Contract and the Resolution. Redeveloper acknowledges that it is its
understanding and the Authority's understanding that interest on the Indebtedness may be
includable in gross income for federal income tax purposes and subject to Nebraska State income
taxation.
Section 3.03 Pledge of Revenues.
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Under the terms of the Resolution, the Authority pledges 100% of the available annual
TIF Revenues derived from the Hospital Lot as security for and to provide payment of the
Hospital Note as the same fall due (including payment of any mandatory redemption amounts set
for the Indebtedness in accordance with the terms of the Resolution). Under the terms of the
Resolution, the Authority pledges 100% of the available annual TIF Revenues derived from the
Hotel Lot as security for and to provide payment of the Hotel Note as the same fall due
(including payment of any mandatory redemption amounts set for the Hotel Note in accordance
with the terms of the Resolution). Under the terms of the Resolution, the Authority pledges
100% of the available annual TIF Revenues derived from the MOB Lot as security for and to
provide payment of the MOB Note as the same fall due (including payment of any mandatory
redemption amounts set for the MOB Note in accordance with the terms of the Resolution). The
tax increment is to be derived from the increased valuation, determined in the manner provided
for in Article 8, Section 12 of the Constitution of the State of Nebraska and the Act which will be
attributable to the redevelopment contemplated under this Contract and within the Project Area.
The TIF Revenues which are to be used to pay debt service on the TIF Note will be derived from
the increased valuation from redeveloping the Redeveloper Property as provided in this Contract.
Redeveloper specifically acknowledges that any protest of the valuation of all or any portion of the
Project Area by any party, or a reduction in assessed valuation of all or any portion of the Project
Area shall reduce the TIF Revenues available for payment on TIF Note. The Redeveloper
specifically acknowledges, as the TIF Note Purchaser, that it bears the entire risk of any reduction
in assessed valuation.
Section 3.04 Purchase and Pledge of Indebtedness/Grant of Net Proceeds of Indebtedness.
The Redeveloper has agreed to purchase or locate a lender to purchase the Indebtedness
from the Authority for a price equal to the principal amount thereof, payable as provided in
Section 3.02 and this Section 3.04. The Redevelopment Plan provides for the Redeveloper to
receive a grant under this Redevelopment Contract. In accordance with the terms of the
Redevelopment Plan the Redeveloper is to receive a grant sufficient to pay for the Project Costs
as described on Exhibit D (the "Project Costs"), in the aggregate maximum amount not to exceed
$15,800,000. Notwithstanding the foregoing, the aggregate amount of the Indebtedness and the
grant shall not exceed the amount of Project Costs as certified pursuant to Section 4.02 of this
Redevelopment Contract. Such grant shall be made to the Redeveloper upon certification of
Project Costs as set forth herein and in the Resolution, and payment purchase of the Indebtedness
as provided in Section 3.02, unless Redeveloper elects to offset the payment of the purchase of
the Indebtedness with the grant proceeds as provided herein and in the Resolution. The
Authority shall have no obligation to provide grant funds from any source other than as set forth
in the Resolution and this Redevelopment Contract.
Section 3.05 Creation of Funds.
In the Resolution, the Authority has provided for the creation of the following funds and
accounts which funds shall be held by the Authority separate and apart from all other funds and
moneys of the Authority and the City:
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(a)a special trust fund called the “Prataria Ventures, LLC, Redevelopment Project Hospital
Note Fund” (the “Hospital Note Fund”). All of the TIF Revenues from the Hospital Lot shall be
deposited into the Hospital Note Fund. The TIF Revenues accumulated in the Hospital Note Fund
shall be used and applied on the Business Day prior to each Interest Payment Date (i) to make any
payments to the City or the Authority as may be required under the Redevelopment Contract and (ii)
to pay principal of or interest on the Hospital Note to the extent of any money then remaining in the
Hospital Note Fund on such Interest Payment Date. Money in the Hospital Note Fund shall be used
solely for the purposes described herein and in the Resolution. All Revenues received for the
applicable 15 year period of Phase 1 (including taxes that have accrued and are due and payable in
the fifteenth year but are actually paid in arrears in the sixteenth year pursuant to customary
Nebraska practices) shall be used solely for the payments required herein and by the Resolution; and
(b)a special trust fund called the “Prataria Ventures, LLC, Redevelopment Project Fund –
Hospital” (the “Hospital Project Fund”) The Authority shall disburse any money on deposit in the
Hospital Project Fund from time to time to pay or as reimbursement for payment made for the
Project Costs in each case within 5 Business Days after completion of the steps set forth herein and
in the Resolution. If a sufficient amount to pay a properly completed Disbursement Request (as
defined in Section 4.02) is not in the Hospital Project Fund at the time of the receipt by the
Authority of such request, the Authority shall notify the owner of the Hospital Note and such owner
may deposit an amount sufficient to pay such request with the Authority for such payment. As set
forth in the Resolution, if the Redeveloper is the owner of the Hospital Note and the Redeveloper so
elects, the Authority shall make a grant to Redeveloper in the amount of an approved Disbursement
Request; in such event, the approved Disbursement Request amount shall offset funding of the
Hospital Note.
(c)a special trust fund called the “Prataria Ventures, LLC, Redevelopment Project Hotel Note
Fund” (the “Hotel Note Fund”). All of the TIF Revenues from the Hotel Lot shall be deposited into
the Hotel Note Fund. The TIF Revenues accumulated in the Hotel Note Fund shall be used and
applied on the Business Day prior to each Interest Payment Date (i) to make any payments to the
City or the Authority as may be required under the Redevelopment Contract and (ii) to pay principal
of or interest on the Hotel Note to the extent of any money then remaining in the Hotel Note Fund
on such Interest Payment Date. Money in the Hotel Note Fund shall be used solely for the purposes
described herein and in the Resolution. All Revenues received for the applicable 15 year period of
Phase 2 (including taxes that have accrued and are due and payable in the fifteenth year but are
actually paid in arrears in the sixteenth year pursuant to customary Nebraska practices) shall be used
solely for the payments required herein and by the Resolution; and
(d)a special trust fund called the “Prataria Ventures, LLC, Redevelopment Project Fund –
Hotel” (the “Hotel Project Fund”) The Authority shall disburse any money on deposit in the Hotel
Project Fund from time to time to pay or as reimbursement for payment made for the Project Costs
in each case within 5 Business Days after completion of the steps set forth herein and in the
Resolution. If a sufficient amount to pay a properly completed Disbursement Request (as defined in
Section 4.02) is not in the Hotel Project Fund at the time of the receipt by the Authority of such
request, the Authority shall notify the owner of the Hotel Note and such owner may deposit an
amount sufficient to pay such request with the Authority for such payment. As set forth in the
Resolution, if the Redeveloper is the owner of the Hotel Note and the Redeveloper so elects, the
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Authority shall make a grant to Redeveloper in the amount of an approved Disbursement Request;
in such event, the approved Disbursement Request amount shall offset funding of the Hotel Note.
(e)a special trust fund called the “Prataria Ventures, LLC, Redevelopment Project MOB Note
Fund” (the “MOB Note Fund”). All of the TIF Revenues from the MOB Lot shall be deposited into
the MOB Note Fund. The TIF Revenues accumulated in the MOB Note Fund shall be used and
applied on the Business Day prior to each Interest Payment Date (i) to make any payments to the
City or the Authority as may be required under the Redevelopment Contract and (ii) to pay principal
of or interest on the MOB Note to the extent of any money then remaining in the MOB Note Fund
on such Interest Payment Date. Money in the MOB Note Fund shall be used solely for the purposes
described herein and in the Resolution. All Revenues received for the applicable 15 year period of
Phase 3 (including taxes that have accrued and are due and payable in the fifteenth year but are
actually paid in arrears in the sixteenth year pursuant to customary Nebraska practices) shall be used
solely for the payments required herein and by the Resolution; and
(f)a special trust fund called the “Prataria Ventures, LLC, Redevelopment Project Fund –
MOB” (the “MOB Project Fund”) The Authority shall disburse any money on deposit in the MOB
Project Fund from time to time to pay or as reimbursement for payment made for the Project Costs
in each case within 5 Business Days after completion of the steps set forth herein and in the
Resolution. If a sufficient amount to pay a properly completed Disbursement Request (as defined in
Section 4.02) is not in the MOB Project Fund at the time of the receipt by the Authority of such
request, the Authority shall notify the owner of the MOB Note and such owner may deposit an
amount sufficient to pay such request with the Authority for such payment. As set forth in the
Resolution, if the Redeveloper is the owner of the MOB Note and the Redeveloper so elects, the
Authority shall make a grant to Redeveloper in the amount of an approved Disbursement Request;
in such event, the approved Disbursement Request amount shall offset funding of the MOB Note.
ARTICLE IV
OBLIGATIONS OF REDEVELOPER
Section 4.01 Construction of Project;
Redeveloper shall:
(a)Pave the public and private streets in accordance with plans and specifications
approved by the City's Director of Public Works, and subject to the City's inspection.
Redeveloper shall design, construct and install a public water main, public sanitary
sewer, conduits for public electrical lines, and sidewalks in accordance with plans and
specifications approved by the Director of Public Works, and subject to the City's
inspection. All final engineering plans and specifications for public improvements
shall bear the signature and seal of a professional engineer registered in the State of
Nebraska and shall be furnished by Redeveloper to the Department of Public Works
for approval prior to contracting for construction of any improvements. Inspections of
improvements under construction shall be performed under the supervision of a
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professional registered engineer and upon completion shall be subject to inspection
and approval by the Department of Public Works prior to acceptance by the City of
Grand Island. An "as built" set of plans and specifications including required test
results bearing the seal and signature of a registered professional engineer shall be
filed with the Director of Public Works by Redeveloper prior to acceptance of these
improvements by the City.
(b)Redeveloper has provided a copy of the approved preliminary plat to the Authority. If
the construction of any Public Improvements is significantly altered from the
preliminary plat, Redeveloper shall submit revised plans to the Authority.
(c)Construct all Private Improvements in compliance with all applicable local, state, and
federal building and construction laws and codes. Redeveloper agrees to secure and
maintain all permits and licenses necessary for its use of the Redevelopment Project
including, but not limited to, necessary building permits and inspections.
(d) Redeveloper agrees to use commercially reasonable efforts to complete construction
of the Public Improvements and the Private Improvements located on the Hospital Lot
and Hotel Lot on or before December 31, 2019, as provided in this Agreement.
Redeveloper agrees to use commercially reasonable efforts to complete construction of
the Private Improvements located on the MOB Lot within a reasonable schedule to be
determined by the Redeveloper and approved by the Authority. Redeveloper further
agrees to pay, or cause to be paid, in a timely manner all persons, firms, or
organizations that performed labor or furnished materials, equipment or supplies used
in the prosecution of the Public and Private Improvements. Such payment
shall be made promptly after completion of the Private Improvements and in
accordance with all the provisions of this Agreement relating to the obligations of
Redeveloper to construct said improvements. The Redeveloper shall provide and pay
for the Public Improvements.
(e)Grant the public the a license to use the areas labeled “Public Parking as shown on
attached Exhibit “C” pursuant to the public parking license agreement in the form
attached hereto as Exhibit “H”. Members of the public shall be entitled to utilize such
parking subject to the terms of the parking license for and during the period that any
TIF Indebtedness remains outstanding. In addition the Redeveloper and its successors
and transferees shall maintain said Public Parking area in a commercially reasonable
manner and timely provide snow removal, without charge or reimbursement from the
City.
(f)Pay a minimum annual assessment to the Authority, without demand, in the following
amounts and at the indicated times:
1)As to the Hospital Lot an amount equal to the sum of $1,143,600 less the
annual TIF Revenue as to said Hospital Lot for each tax year beginning in
2020 through and including 2033. Said amount is designated as the
“Shortfall”. One-half of the shortfall shall be paid prior to May 1 and one-half
prior to September 1 in the year following the receipt of the real property tax
statement for the Hospital Lot.
2)As to the MOB Lot an amount equal to the sum of $246,700 less the annual
TIF Revenue as to said MOB Lot for each tax year beginning in the first tax
year following the tax year of the Effective Date through and including the
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fifteenth tax year following the tax year of the Effective Date. Said amount is
designated as the “Shortfall”. One-half of the shortfall shall be paid prior to
May 1 and one-half prior to September 1 in the year following the receipt of
the real property tax statement for the Hotel Lot.
3)As to the Hotel Lot an amount equal to the sum of $171,200 less the annual
TIF Revenue as to said Hotel Lot for each tax year beginning in 2020 through
and including 2033. Said amount is designated as the “Shortfall”. One-half of
the shortfall shall be paid prior to May 1 and one-half prior to September 1 in
the year following the receipt of the real property tax statement for the MOB
Lot.
(g)If requested by the Authority, provide a payment and performance bond from a bond
company doing business in the state of Nebraska in the total amount of all the Public
Improvements to be construction in the public right of way. The City and Authority
shall be named as beneficiaries under such bond. The required amount of said bond
shall be reduced as Public Improvements in the right of way are completed as long as
the amount of the bond is at all times equal to or greater than the unfinished Public
Improvements to be completed in the public right of way
(h)Until construction of the Project has been completed, make reports in such detail and
at such times as may be reasonably requested by the Authority as to the actual
progress of Redeveloper with respect to construction of the Project. Such reports shall
include actual expenditures incurred as described on Exhibit D.
(i)Require any general contractor chosen by the Redeveloper to obtain and keep in force
at all times until completion of construction, policies of insurance including coverage
for contractors' general liability and completed operations. The City, the Authority and
the Redeveloper shall be named as additional insureds. Any contractor chosen by the
Redeveloper or the Redeveloper itself, as owner, shall be required to purchase and
maintain property insurance upon the Project to the full insurable value thereof. This
insurance shall insure against the perils of fire and extended coverage and shall
include “All Risk" insurance for physical loss or damage. The contractor with respect
to any specific contract or the Redeveloper shall also carry insurance on all stored
materials. The contractor or the Redeveloper, as the case may be, shall furnish the
Authority and the City with a Certificate of Insurance evidencing policies as required
above. Such certificates shall state that the insurance companies shall give the
Authority prior written notice in the event of cancellation of or material change in any
of any of the policies.
(j) So long as the TIF Note is outstanding, not discriminate against any person or group of
persons on account of race, religion, sex, color, national origin, ancestry, disability,
marital status or receipt of public assistance in connection with the Redevelopment
Project. Redeveloper, its successors and transferees, agrees that during the construction
of the Redevelopment Project, Redeveloper will not discriminate against any employee
or applicant for employment because of race, religion, sex, color, national origin,
ancestry, disability, marital status or receipt of public assistance, and further agrees to
require that its contractor and subcontractors shall agree to conform to said
requirements. Redeveloper will comply with all applicable federal, state and local laws
related to the Redevelopment Project. For purposes of this paragraph, discrimination
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shall mean discrimination as defined by the laws of the United States and the State of
Nebraska.
Section 4.02 Cost Certification & Disbursement of Note Proceeds.
Proceeds of the Note may be advanced and disbursed in the manner set forth below:
(a)There shall be submitted to the Authority a grant disbursement request (the
“Disbursement Request”), executed by the Director of the City’s Planning Department and an
authorized representative of the Redeveloper or applicable successor or assign with respect to each
phase, (i) certifying that a portion of the Project has been substantially completed and (ii) certifying
the actual costs incurred by the Redeveloper in the completion of such portion of the Project.
(b)If the costs requested for reimbursement under the Disbursement Request are
currently reimbursable under Exhibit “D” of this Redevelopment Contract and the Community
Redevelopment Law, the Authority shall evidence such allocation in writing and inform the owner
of the TIF Notes of any amounts allocated to the TIF Notes.
(c)Upon notification from the Authority as described in Section 4.02(b), deposits to the
accounts in the Hospital Project Fund may be made from time to time from funds received by the
Authority from the owner of the Hospital Note (if other than the Redeveloper) in the amounts
necessary to pay amounts requested in properly completed, signed and approved written
Disbursement Requests as described herein. Upon notification from the Authority as described in
Section 4.02(b), deposits to the accounts in the Hotel Project Fund may be made from time to time
from funds received by the Authority from the owner of the Hotel Note (if other than the
Redeveloper) in the amounts necessary to pay amounts requested in properly completed, signed and
approved written Disbursement Requests as described herein.. Upon notification from the
Authority as described in Section 4.02(b), deposits to the accounts in the MOB Project Fund may be
made from time to time from funds received by the Authority from the owner of the MOB Note (if
other than the Redeveloper) in the amounts necessary to pay amounts requested in properly
completed, signed and approved written Disbursement Requests as described herein. Such
amounts shall be proceeds of the respective TIF Note and the Treasurer of the Authority shall
inform the Registrar (as defined in the Note Resolution) in writing of the date and amount of such
deposits. When feasible, the Authority shall use the Note Proceeds to directly pay invoices for
public improvements set forth in any Disbursement Request. At the option of the Redeveloper, if
the Redeveloper is the owner of the TIF Note, the Authority shall make a grant to Redeveloper in
the amount of the approved Disbursement Request; in such event, the approved Disbursement
Request amount shall offset funding of the Note. The Registrar shall keep and maintain a record of
the amounts deposited into the Project Fund for each respective phase from TIF proceeds of the
corresponding TIF Note pursuant to the terms of this Resolution as “Principal Amount Advanced”
and shall enter the aggregate principal amount then Outstanding as the “Cumulative Outstanding
Principal Amount” on its records maintained for the TIF Note. The aggregate amount deposited
into the Hospital Project Fund, Hotel Project Fund, and MOB Project Fund from proceeds of all of
the Notes shall not exceed $15,800,000.
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The Authority shall, to the extent allowed by law, and then only to the extent funds are lawfully
available from TIF Revenues generated by the Hospital Lot pay the TIF Note Purchaser the
principal and interest of the Hospital Notes. The Authority shall, to the extent allowed by law,
and then only to the extent funds are lawfully available from TIF Revenues generated by the
Hotel Lot pay the TIF Note Purchaser the principal and interest of the Hotel Note. The Authority
shall, to the extent allowed by law, and then only to the extent funds are lawfully available from
TIF Revenues generated by the MOB Lot pay the TIF Note Purchaser the principal and interest
of the MOB Note. Any debt service on the TIF Notes to be paid from TIF Revenues shall not
constitute a general obligation or debt of the City or Authority. Neither the City or Authority shall
be liable or be required to reimburse Redeveloper for any costs incurred by Redeveloper in the
event this Contract is not approved for any reason, including for reasons alleged to be the fault of
the City or Authority. Any excess TIF Revenues resulting from the Project Site not needed or
required to pay the TIF Note Purchaser shall be expended by the Authority or returned to the
applicable taxing authorities as provided in the Community Development Law. Any shortfall in
anticipated TIF funds from the TIF Revenues for any reason whatsoever, specifically including a
decline in taxable valuation of the Project Site, shall be borne entirely by the Redeveloper and/or
TIF Note Purchaser without recourse of any kind against the Authority or the City.
Section 4.03 No Discrimination.
Redeveloper agrees and covenants for itself its successors and assigns that it will not
discriminate against any person or group of persons on account of race, sex, color, religion,
national origin, ancestry, disability, marital status or receipt of public assistance in connection
with the Project. Redeveloper, for itself and its successors and assigns, agrees that during the
construction of the Project, Redeveloper will not discriminate against any employee or applicant
for employment because of race, religion, sex, color, national origin, ancestry, disability, marital
status or receipt of public assistance. Redeveloper will comply with all applicable federal, state
and local laws related to the Project.
Section 4.04 Assignment or Conveyance.
This Redevelopment Contract shall not be assigned by the Redeveloper without the
written consent of the Authority. Such consent shall not be unreasonably withheld. Redeveloper
agrees that it shall not convey any Lot or any portion thereof or any structures thereon to any
person or entity that would be exempt from payment of real estate taxes, and that it will not make
application for any structure, or any portion thereof, to be taxed separately from the underlying
land of any Lot. Any successor in interest or transferee of any real estate in the Redevelopment
Project shall be bound by and have the same obligations hereunder as the Redeveloper. The
Authority shall be entitled to require, as conditions to any required approval, that:
a. Any proposed transferee shall have the qualifications and financial responsibility, as
reasonably determined by the Authority, necessary and adequate to fulfill the obligations
undertaken in this Contract by Redeveloper relating to the applicable Lot being
transferred; and
b. Any proposed transferee, by instrument satisfactory to the Authority
and in form recordable in the Office of the Register of Deeds, shall for itself and its
successors and assigns and for the benefit of the Authority, have expressly assumed all of
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the obligations of Redeveloper under this Contract with respect to the applicable Lot
being transferred; and
c. Copies of the documents addressing items (a) and (b) shall be submitted to the
Authority for review, not less than ten (10) days prior a regularly scheduled meeting of
the Authority and not less than less than ten (10) days prior to the proposed transfer. If
the transfer or any of the documentation in connection therewith is disapproved by the
Authority, its disapproval and reasons therefore shall be indicated to Redeveloper in
writing.
The Authority acknowledges and understands that it is the intent of Redeveloper to assign the
obligations under this Redevelopment Contract relating to each phase of the Redevelopment
Project to separate and distinct third parties, such that there shall be one successor redeveloper
for the Hospital Lot, one successor redeveloper for the Hotel Lot, and one successor redeveloper
for the MOB Lot. The Authority acknowledges that, subject to the conditions set forth above, it
shall assign the rights and obligations hereunder separately with respect to the Hospital Lot, the
Hotel Lot, and the MOB Lot. Each successor redeveloper shall only assume the obligations
hereunder with respect to the assumed Lot and shall not have any obligation or liability relating
to the other Lots in the Redevelopment Project Area. Upon an assignment of this
Redevelopment Contract with respect to one Lot or less than the entire Redevelopment Project
Area, this Redevelopment Contract shall be reasonably interpreted by the parties to apply solely
to said applicable Lot unless otherwise expressly provided in the applicable assignment and
assumption agreement between Redeveloper and the successor redeveloper. Upon the approved
assignment of the Redevelopment Contract to the three successor redevelopers, Prataria Ventures
shall have no further obligations hereunder with respect to the Hospital Lot, the Hotel Lot, and
the MOB Lot, but shall not be relieved of the obligations hereunder with respect to the public
improvements to be constructed in the public right of way.
Section 4.05 Payment of Authority Costs.
Redeveloper shall pay to the Authority the following sums upon execution hereof:
a. Legal expenses of Authority for representation related to this Redevelopment Contract
and the issuance of the TIF Note and other matters.
b. $_________ for City and Authority administrative accounting of incremental tax
payments.
Section 4.06. Obligation to Restore.
In the event of any damage or destruction to the Private Improvements during the Tax
Increment Period, Redeveloper agrees to use good faith efforts to commence restoration of the
Private Improvements to its prior condition within twelve (12) months from the date of the
damage or destruction, and shall pursue the same to completion.
ARTICLE V
FINANCING REDEVELOPMENT PROJECT; ENCUMBRANCES
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Section 5.01 Financing Creating Encumbrances Restricted. Prior to completion of the Public and
Private Improvements, neither Redeveloper, nor any successors in interest with respect to the
applicable portion of the Redeveloper Property, shall engage in any financing or any other
transaction creating any mortgage upon the uncompleted phase of the Redeveloper Property,
whether by express contract or operation of law, or suffer any encumbrance or lien to be made on or
attached to any of such uncompleted phase of the Redeveloper Property, except for the purposes of
obtaining funds only to the extent necessary to acquire such property, or design, construct, maintain,
repair, replace and insure the Private Improvements, or to refinance said amounts. Notwithstanding
the above, if any involuntary encumbrance or lien is made on or attached to any of the Redeveloper
Property and which is contested by Redeveloper, then Redeveloper may defend against such
encumbrance or lien, provided that a sufficient Note or security is posted with the Authority, to
permit Redeveloper to avoid or prevent foreclosure of such encumbrance or lien.
a.Whenever the Authority shall deliver any notice or demand to Redeveloper with
respect to any breach or default by Redeveloper of its obligations or covenants in this
Contract, the Authority shall at the same time forward a copy of such notice or demand to
each holder of any mortgage at the last address of such holder as shown in the records of
the Register of Deeds of Hall County.
b. If thirty (30) days after any notice or demand with respect to any breach or
default, such breach or default remains uncured, each such holder shall have the right, at
its option, to cure or remedy such breach or default and to add the cost thereof to the
mortgage debt and the lien of its mortgage.
d.The rights and obligations of this Redevelopment Contract relating to mortgages
of any portion of the Redeveloper Property shall apply to any other type of encumbrance
on any of the Redeveloper Property, and any of the stated rights, obligations and remedies
of any party relating to mortgage foreclosures shall be applicable to procedures under any
deed of trust or similar method of encumbrance.
ARTICLE VI
DEFAULT, REMEDIES; INDEMNIFICATION
Section 6.01 General Remedies of Authority and Redeveloper.
Subject to the further provisions of this Article VI, in the event of any failure to perform
or breach of this Redevelopment Contract or any of its terms or conditions, by any party hereto
or any successor to such party, such party, or successor, shall, upon written notice from the other,
proceed immediately to commence such actions as may be reasonably designed to cure or
remedy such failure to perform or breach which cure or remedy shall be accomplished within a
reasonable time by the diligent pursuit of corrective action. In case such action is not taken, or
diligently pursued, or the failure to perform or breach shall not be cured or remedied within a
reasonable time, this Redevelopment Contract shall be in default and the aggrieved party may
institute such proceedings as may be necessary or desirable to enforce its rights under this
Redevelopment Contract, including, but not limited to, proceedings to compel specific
performance by the party failing to perform or in breach of its obligations. The Redeveloper
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hereby acknowledges and agrees that the Authority shall have completed its required
performances and satisfied all of its obligations under this Redevelopment Contract upon the
issuance of the Indebtedness and the subsequent payment of grant amounts to the Redeveloper as
set forth in Article III hereof.
Section 6.02 Additional Remedies of Authority
In the event that (each such event an "event of default"):
(a)the Redeveloper, or its successor in interest, shall fail to substantially
complete the construction of the improvements included in the Project Costs on or before
the applicable Effective Date, excepting delays caused by inclement weather or any
delays set forth in section 6.04.
In the event of such failure to perform, breach or default occurs and is not cured in the
period herein provided, the parties agree that the damages caused to the Authority would be
difficult to determine with certainty and that a reasonable estimation of the amount of damages
that could be incurred is the amount of the grant to Redeveloper pursuant to Section 3.04 of this
Redevelopment Contract, less any reductions in the principal amount of the Indebtedness, plus
interest on such amounts as provided herein (the "Liquidated Damages Amount"). Upon the
occurrence of an event of default, the Liquidated Damages Amount shall be paid by Redeveloper
to Authority within 30 days of demand from Authority given to the Redeveloper and the
Authority shall use said Liquidated Damages Amount to immediately pay off and retire the
outstanding TIF Note. In no case whatsoever shall the Liquidated Damages Amount exceed the
amount necessary for the authority to pay off the TIF Note.
Interest shall accrue on the Liquidated Damages Amount at the rate of three percent (3%)
per annum and interest shall commence thirty (30) days after the date that the Authority gives
notice to the Redeveloper demanding payment.
Payment of the Liquidated Damages Amount shall not relieve Redeveloper of its
obligation to pay real estate taxes or assessments with respect to the Redevelopment Project
Property and the Project.
Redeveloper, on or before contracting for work included within the Project Costs, shall
furnish to the Authority copies of labor and materials payment bonds and performance bonds for
each contract entered into by Redeveloper related to Project Costs. Each such bond shall show
the Authority and the City as well as the Redeveloper as beneficiary of any such bond, as and to
the extent commercially obtainable (as determined in the discretion of the Authority).
Section 6.03 Remedies in the Event of Other Redeveloper Defaults.
In the event the Redeveloper fails to perform any other provisions of this Redevelopment
Contract (other than those specific provisions contained in Section 6.02), the Redeveloper shall
be in default. In such an instance, the Authority may seek to enforce the terms of this
Redevelopment Contract or exercise any other remedies that may be provided in this
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Redevelopment Contract or by applicable law; provided, however, that any defaults covered by
this Section shall not give rise to a right or rescission on termination of this Redevelopment
Contract, and shall not be covered by the Liquidated Damages Amount.
Section 6.04 Forced Delay Beyond Party's Control.
For the purposes of any of the provisions of this Redevelopment Contract, neither the
Authority nor the Redeveloper, as the case may be, nor any successor in interest, shall be
considered in breach of or default in its obligations with respect to the conveyance or preparation
of the Redevelopment Area or any part thereof for redevelopment, or the beginning and
completion of construction of the Project, or progress in respect thereto, in the event of forced
delay in the performance of such obligations due to unforeseeable causes beyond its control and
without its fault or negligence, including, but not restricted to, acts of God, or of the public
enemy, acts of the Government, acts of the other party, fires, floods, epidemics, quarantine
restrictions, strikes, freight embargoes, and unusually severe weather or delays in subcontractors
due to such causes; it being the purpose and intent of this provision that in the event of the
occurrence of any such forced delay, the time or times for performance of the obligations of the
Authority or of the Redeveloper with respect to construction of the Project, as the case may be,
shall be extended for the period of the forced delay: Provided, that the party seeking the benefit
of the provisions of this section shall, within thirty (30) days after the beginning of any such
forced delay, have first notified the other party thereto in writing, and of the cause or causes
thereof and requested an extension for the period of the forced delay.
Section 6.05 Limitations of Liability; Indemnification.
Notwithstanding anything in this Article VI or this Redevelopment Contract to the
contrary, neither the City, the Authority, nor their respective elected officials, officers, directors,
appointed officials, employees, attorneys, agents or their governing bodies shall have any
pecuniary obligation or monetary liability under this Redevelopment Contract. The sole
obligation of the Authority under this Redevelopment Contract shall be the issuance of the
Indebtedness and granting of a portion of the proceeds thereof to Redeveloper, and full
compliance with the terms specifically set forth Article III hereof and payment of TIF Revenues
pledged pursuant to the Resolution. The Redeveloper releases the City and Authority from,
agrees that neither the City nor Authority shall be liable for, and agrees to indemnify and hold
the City and Authority harmless from any liability for any loss or damage to property or any
injury to or death of any person that may be occasioned by any cause whatsoever pertaining to
the Project.
The Redeveloper will indemnify and hold each of the City and Authority and their
respective elected officials, directors, officers, appointed officials, attorneys, agents, employees
and members of their governing bodies free and harmless from any loss, claim, damage, demand,
tax, penalty, liability, disbursement, expense, excluding litigation expenses, attorneys' fees and
expenses, or court costs arising out of any damage or injury, actual or claimed, of whatsoever
kind or character, to property (including loss of use thereof) or persons, occurring or allegedly
occurring in, on or about that portion of the Project owned by the Redeveloper, during the term
of this Redevelopment Contract or arising out of any action or inaction of Redeveloper, related to
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activities of the Redeveloper or its agents during the construction of the public infrastructure or
public right of ways in the Project.
Section 6.06 Indemnification for Relocation Expenses.
The Redeveloper agrees to indemnify and hold the City and the Authority harmless from
any and all liability to the extent resulting from the Redeveloper’s failure to make payments of all
amounts lawfully due to all persons, firms, or organizations under any city, state or federal
relocation laws or regulation in connection with the Project Site. The terms of this section shall
survive any termination of this Contract.
ARTICLE VII
MISCELLANEOUS
Section 7.01 Notice Recording.
A notice memorandum of this Redevelopment Contract may be recorded in the office of
the Register of Deeds of Hall County, Nebraska.
Section 7.02 Governing Law.
This Redevelopment Contract shall be governed by the laws of the State of Nebraska,
including but not limited to the Act.
Section 7.03 Binding Effect: Amendment, Assignment.
This Redevelopment Contract shall be binding on the parties hereto and their respective
successors and assigns. The Redevelopment Contract shall not be amended except by a writing
signed by the party to be bound. The Redeveloper may assign its rights and obligations to a
controlled entity which shall be bound by all the terms hereof.
Section 7.04 Effective Date and Implementation of Redevelopment Contract.
This Agreement is in full force and effect from and after the date of execution hereof by
both the Redeveloper and the Authority.
Section 7.05 Notices to Parties.
Notices to Parties shall be mailed by U. S. Mail to the following addresses:
Redeveloper:
Prataria Ventures, LLC
Attn: Executive Office
3942 West Old Highway 30
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P.O. Box 2078
Grand Island, NE 68802
Authority and City:
Director
Grand Island Community Redevelopment Authority
Hall County Regional Planning Department
100 E 1st Street
P.O. Box 1968
Grand Island, NE 68802
IN WITNESS WHEREOF, City and Redeveloper have signed this Redevelopment Contract as
of the date and year first above written.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
ATTEST:GRAND ISLAND, NEBRASKA
____________________________ By:________________________
Secretary Chairman
STATE OF NEBRASKA )
) SS
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of 2017, by
________________ and ________________, Chairman and Secretary, respectively, of the
Community Redevelopment Authority of the City of Grand Island, Nebraska, on behalf of the
Authority.
____________________________
Notary Public
Prataria Ventures, LLC
By:______________________
David Ostdiek, Manager
STATE OF NEBRASKA )
) SS
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of _____, 2017, by
David Ostdiek, Manager of Prataria Ventures, LLC, on behalf of the limited liability company.
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________________________
Notary Public
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EXHIBIT A
REDEVELOPMENT PLAN
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EXHIBIT B
DESCRIPTION OF REDEVELOPMENT PROJECT AREA
Lots 1, 2 and 3, Prairie Commons Subdivision, Grand Island, Hall County, Nebraska
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EXHIBIT C
SITE PLAN
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EXHIBIT D
SOURCES AND USES
1.TIF Sources
Assumptions Tax Levy 2.0835461
Interest Rate 4.75%
Number of TIF years per phase – 14 (only a partial valuation
anticipated in the first year after the Effective Date)
Property Value Assumptions
Hospital Lot Assessed Value Taxes
Base Year $110,000 $2,292
Completed Project $55,000,000 $1,145,950
Increment $54,890,000 $1,143,658
Estimated TIF Indebtedness for Hospital Lot - $11,600,000
MOB Lot Assessed Value Taxes
Base Year $38,000 $792
Completed Project $11,880,000 $247,525
Increment $11,842,000 $246,734
Estimated TIF Indebtedness for MOB Lot - $2,500,000
Hotel Lot Assessed Value Taxes
Base Year $21,000 $438
Completed Project $8,240,000 $171,684
Increment $8,219,000 $171,247
Estimated TIF Indebtedness for Hotel Lot - $1,700,000
Total Project Valuation Increment $74,951,000
Total Project Tax Increment $1,561,638
Estimated TIF Indebtedness Amount $15,800,000
The Projected Tax Increment is based on assumed values and levy rates; actual amounts and
rates will vary from those assumptions, and it is understood that the actual tax shift may vary
materially from the projected amount. There has been no accounting for incremental growth or
change in the tax levy over the 15 year TIF period. Additionally, the Indebtedness could
increase or decreased based upon the interest rate actually approved by a lender purchasing one
or more of the TIF Notes. Each of the phases of the project (Hospital, MOB, and Hotel) may
have one or more TIF Notes and such Indebtedness shall be allocated based upon these aggregate
projections.
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2.TIF Uses
A.Project Site Preparation Expenses
1.Grading/Stormwater Detention:$4,479,000
Total:$4,479,000
B.Public Improvements
1.Public Streets; Public Utilities:$6,402,000
(Sanitary/Storm sewer, water, public streets, grading)
2.Private Street; Parking Lots:$4,351,000
3.Bike Trail $594,000
Total:$11,347,000
Total Expenses:$15,826,000
The projected costs are estimates and the final amounts may vary. The Authority agrees that
individual line items that are eligible costs may be adjusted up or down based on final costs,
provided that the total TIF Uses shall equal or exceed the amount of Indebtedness issues. The
Authority acknowledges and agrees that there are additional eligible TIF Uses associated with
this Project in excess of the Indebtedness amount which shall be paid by the Redeveloper, but
shall be considered eligible TIF Uses for the Project.
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EXHIBIT E
(FORM OF HOSPITAL NOTE)
UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF HALL
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
TAX INCREMENT DEVELOPMENT REVENUE NOTE
(PRATARIA VENTURES, LLC REDEVELOPMENT PROJECT), SERIES 2017 A
(“Hospital Note”)
No. R-1 Up to $11,600,000
(subject to reduction as described herein)
Date of Date of Rate of
Original Issue Maturity Interest
December 31, 20__4.75%
REGISTERED OWNER: _______________________
PRINCIPAL AMOUNT: SEE SCHEDULE 1 ATTACHED HERETO
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE
NOTE SET FORTH ON THE FOLLOWING PAGES, WHICH FURTHER PROVISIONS
SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT
THIS PLACE.
IN WITNESS WHEREOF, THE COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA has caused this Note to
be signed by the manual signature of the Chairman of the Authority, countersigned by the
manual signature of the Secretary of the Authority, and the City’s corporate seal imprinted
hereon.
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COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA
[S E A L]
By: (manual signature)
Chairman
By: (manual signature)
Secretary
The COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA (the “Authority”) acknowledges itself indebted to, and for
value received hereby promises to pay, but solely from certain specified tax revenues and other
funds hereinafter specified, to the Registered Owner named above, or registered assigns, on the
Date of Maturity stated above (or earlier as hereinafter referred to), the Principal Amount on
Schedule 1 attached hereto upon presentation and surrender hereof at the office of the registrar
and paying agent herefor, the Treasurer of the City of Grand Island, Nebraska (the “Registrar”),
and in like manner to pay interest on the Cumulative Outstanding Principal Amount reflected in
Schedule 1 at the Rate of Interest stated above, calculated on the basis of a 360-day year
consisting of twelve, 30-day months, from the Date of Original Issue stated above, or the most
recent interest payment date to which interest has been paid or duly provided for, as specified
below, to maturity or earlier redemption, payable semiannually on June 1 and December 1 of
each year until payment in full of such Principal Amount, beginning June 1, 20__, by check or
draft mailed to the Registered Owner hereof as shown on the Note registration books maintained
by the Registrar on the 15th day of the month preceding the month in which the applicable
interest payment date occurs, at such Owner’s address as it appears on such Note registration
books. The principal of this Note and the interest hereon are payable in any coin or currency
which on the respective dates of payment thereof is legal tender for the payment of debts due the
United States of America.
This Note is issued by the Authority under the authority of and in full compliance with the
Constitution and statutes of the State of Nebraska, including particularly Article VIII, Section 12 of
the Nebraska Constitution, Sections 18-2101 to 18-2153, inclusive, Reissue Revised Statutes of
Nebraska, as amended, and under and pursuant to Resolution No. ________ duly passed and
adopted by the Authority on __________2017, as from time to time amended and supplemented
(the “Resolution”).
THE PRINCIPAL AMOUNT OF THIS NOTE IS SET FORTH IN SCHEDULE 1
ATTACHED HERETO. THE MAXIMUM PRINCIPAL AMOUNT OF THIS NOTE IS
$11,600,000.
This Note is a special limited obligation of the Authority payable as to principal and
interest solely from and is secured solely by the Hospital Revenue (as defined in the Resolution)
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and certain other money, funds and securities pledged under the Resolution, all on the terms and
conditions set forth in the Resolution. The Hospital Revenue represents that portion of ad valorem
taxes levied by public bodies of the State of Nebraska, including the City, on real property within
the Hospital Lot(as defined in the Resolution) which is in excess of that portion of such ad valorem
taxes produced by the levy at the rate fixed each year by or for each such public body upon the
valuation of the Hospital Lotas of a certain date and as has been certified by the County Assessor
of Hall County, Nebraska to the City in accordance with law.
Reference is hereby made to the Resolution for the provisions, among others, with respect
to the collection and disposition of certain tax and other revenues, the special funds charged with
and pledged to the payment of the principal of and interest on this Note, the nature and extent of
the security thereby created, the terms and conditions under which this Note has been issued, the
rights and remedies of the Registered Owner of this Note, and the rights, duties, immunities and
obligations of the City and the Authority. By the acceptance of this Note, the Registered Owner
assents to all of the provisions of the Resolution.
The principal of and interest hereon shall not be payable from the general funds of the City
nor the Authority nor shall this Note constitute a legal or equitable pledge, charge, lien, security
interest or encumbrance upon any of the property or upon any of the income, receipts, or money
and securities of the City or the Authority or of any other party other than those specifically
pledged under the Resolution. This Note is not a debt of the City or the Authority within the
meaning of any constitutional, statutory or charter limitation upon the creation of general
obligation indebtedness of the City or the Authority, and does not impose any general liability
upon the City or the Authority and neither the City nor the Authority shall be liable for the
payment hereof out of any funds of the City or the Authority other than the Hospital Revenues and
other funds pledged under the Resolution, which Hospital Revenues and other funds have been and
hereby are pledged to the punctual payment of the principal of and interest on this Note in
accordance with the provisions of this Resolution.
The Registered Owner may from time to time enter the respective amounts advanced
pursuant to the terms of the Resolution under the column headed “Principal Amount Advanced” on
Schedule 1 hereto (the “Table”) and may enter the aggregate principal amount of this Note then
outstanding under the column headed “Cumulative Outstanding Principal Amount” on the Table.
On each date upon which a portion of the Cumulative Outstanding Principal Amount is paid to the
Registered Owner pursuant to the redemption provisions of the Resolution, the Registered Owner
may enter the principal amount paid on this Note under the column headed “Principal Amount
Redeemed” on the Table and may enter the then outstanding principal amount of this Note under
the column headed “Cumulative Outstanding Principal Amount” on the Table. Notwithstanding
the foregoing, the records maintained by the Trustee as to the principal amount issued and principal
amounts paid on this Note shall be the official records of the Cumulative Outstanding Principal
Amount of this Note for all purposes.
Reference is hereby made to the Resolution, a copy of which is on file in the office of the
City Clerk, and to all of the provisions of which each Owner of this Note by its acceptance hereof
hereby assents, for definitions of terms; the description of and the nature and extent of the security
for this Note; the Hospital Revenue and other money and securities pledged to the payment of the
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principal of and interest on this Note; the nature and extent and manner of enforcement of the
pledge; the conditions upon which the Resolution may be amended or supplemented with or
without the consent of the Owner of this Note; the rights, duties and obligations of the Authority
and the Registrar thereunder; the terms and provisions upon which the liens, pledges, charges,
trusts and covenants made therein may be discharged at or prior to the maturity or redemption of
this Note, and this Note thereafter no longer be secured by the Resolution or be deemed to be
outstanding thereunder, if money or certain specified securities shall have been deposited with the
Registrar sufficient and held in trust solely for the payment hereof; and for the other terms and
provisions thereof.
This Note is subject to redemption prior to maturity, at the option of the Authority, in
whole or in part at any time at a redemption price equal to 100% of the principal amount being
redeemed, plus accrued interest on such principal amount to the date fixed for redemption.
Reference is hereby made to the Resolution for a description of the redemption procedures and the
notice requirements pertaining thereto.
In the event this Note is called for prior redemption, notice of such redemption shall be
given by first-class mail to the Registered Owner hereof at its address as shown on the registration
books maintained by the Registrar not less than 10 days prior to the date fixed for redemption,
unless waived by the Registered Owner hereof. If this Note, or any portion thereof, shall have
been duly called for redemption and notice of such redemption duly given as provided, then upon
such redemption date the portion of this Note so redeemed shall become due and payable and if
money for the payment of the portion of the Note so redeemed and the accrued interest thereon to
the date fixed for redemption shall be held for the purpose of such payment by the Registrar,
interest shall cease to accrue and become payable hereon from and after the redemption date.
This Note is transferable by the Registered Owner hereof in person or by its attorney or
legal representative duly authorized in writing at the principal office of the Registrar, but only in
the manner, subject to the limitations and upon payment of the charges provided in the Resolution,
and upon surrender and cancellation of this Note. Upon such transfer, a new Note of the same
series and maturity and for the same principal amount will be issued to the transferee in exchange
therefor. The Authority and the Registrar may deem and treat the Registered Owner hereof as the
absolute owner hereof for the purpose of receiving payment of or on account of principal of and
interest due hereon and for all other purposes.
This Note is being issued as fully a registered Note without coupons. This Note is subject
to exchange as provided in the Resolution.
It is hereby certified, recited and declared that all acts, conditions and things required to
have happened, to exist and to have been performed precedent to and in the issuance of this Note
have happened, do exist and have been performed in regular and due time, form and manner; that
this Note does not exceed any constitutional, statutory or charter limitation on indebtedness; and
that provision has been made for the payment of the principal of and interest on this Note as
provided in this Resolution.
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(FORM OF ASSIGNMENT)
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
___________________________________________________________________________
Print or Type Name, Address and Social Security Number
or other Taxpayer Identification Number of Transferee
the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
_______________ agent to transfer the within Note on the Note register kept by the Registrar for
the registration thereof, with full power of substitution in the premises.
Dated: ___________________________________________________
NOTICE: The signature to this Assignment
must correspond with the name of the
Registered Owner as it appears upon the
face of the within Note in every particular.
Signature Guaranteed By:
____________________________________
Name of Eligible Guarantor Institution as
defined by SEC Rule 17 Ad-15 (17 CFR
240.17 Ad-15)
By:________________________________
Title:_______________________________
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SCHEDULE 1
TABLE OF CUMULATIVE OUTSTANDING PRINCIPAL AMOUNT
COMMUNITY REDEVELOPMENT AUTHORITY OF
THE CITY OF GRAND ISLAND, NEBRASKA
PRATARIA VENTURES, LLC REDEVELOPMENT PROJECT
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2017 A
(“Hospital Note”)
Date
Principal
Amount
Advanced
Principal
Amount
Redeemed
Cumulative
Outstanding
Principal
Amount
Notation
Made
By
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EXHIBIT F
(FORM OF HOTEL NOTE)
UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF HALL
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
TAX INCREMENT DEVELOPMENT REVENUE NOTE
(PRATARIA VENTURES, LLC REDEVELOPMENT PROJECT), SERIES 2017
B
(“HOTEL NOTE”)
No. R-1 Up to $1,700,000
(subject to reduction as described herein)
Date of Date of Rate of
Original Issue Maturity Interest
December 31, 20__4.75%
REGISTERED OWNER: _______________________
PRINCIPAL AMOUNT: SEE SCHEDULE 1 ATTACHED HERETO
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE
NOTE SET FORTH ON THE FOLLOWING PAGES, WHICH FURTHER PROVISIONS
SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT
THIS PLACE.
IN WITNESS WHEREOF, THE COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA has caused this Note to
be signed by the manual signature of the Chairman of the Authority, countersigned by the
manual signature of the Secretary of the Authority, and the City’s corporate seal imprinted
hereon.
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COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA
[S E A L]
By: (manual signature)
Chairman
By: (manual signature)
Secretary
The COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA (the “Authority”) acknowledges itself indebted to, and for
value received hereby promises to pay, but solely from certain specified tax revenues and other
funds hereinafter specified, to the Registered Owner named above, or registered assigns, on the
Date of Maturity stated above (or earlier as hereinafter referred to), the Principal Amount on
Schedule 1 attached hereto upon presentation and surrender hereof at the office of the registrar
and paying agent herefor, the Treasurer of the City of Grand Island, Nebraska (the “Registrar”),
and in like manner to pay interest on the Cumulative Outstanding Principal Amount reflected in
Schedule 1 at the Rate of Interest stated above, calculated on the basis of a 360-day year
consisting of twelve, 30-day months, from the Date of Original Issue stated above, or the most
recent interest payment date to which interest has been paid or duly provided for, as specified
below, to maturity or earlier redemption, payable semiannually on June 1 and December 1 of
each year until payment in full of such Principal Amount, beginning June 1, 20__, by check or
draft mailed to the Registered Owner hereof as shown on the Note registration books maintained
by the Registrar on the 15th day of the month preceding the month in which the applicable
interest payment date occurs, at such Owner’s address as it appears on such Note registration
books. The principal of this Note and the interest hereon are payable in any coin or currency
which on the respective dates of payment thereof is legal tender for the payment of debts due the
United States of America.
This Note is issued by the Authority under the authority of and in full compliance with the
Constitution and statutes of the State of Nebraska, including particularly Article VIII, Section 12 of
the Nebraska Constitution, Sections 18-2101 to 18-2153, inclusive, Reissue Revised Statutes of
Nebraska, as amended, and under and pursuant to Resolution No. ________ duly passed and
adopted by the Authority on __________2017, as from time to time amended and supplemented
(the “Resolution”).
THE PRINCIPAL AMOUNT OF THIS NOTE IS SET FORTH IN SCHEDULE 1
ATTACHED HERETO. THE MAXIMUM PRINCIPAL AMOUNT OF THIS NOTE IS
$1,700,000.
This Note is a special limited obligation of the Authority payable as to principal and
interest solely from and is secured solely by the Hotel Revenue (as defined in the Resolution) and
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Prataria Ventures, LLC
certain other money, funds and securities pledged under the Resolution, all on the terms and
conditions set forth in the Resolution. The Hotel Revenue represents that portion of ad valorem
taxes levied by public bodies of the State of Nebraska, including the City, on real property within
the Hotel Lot (as defined in the Resolution) which is in excess of that portion of such ad valorem
taxes produced by the levy at the rate fixed each year by or for each such public body upon the
valuation of the Hotel Lot as of a certain date and as has been certified by the County Assessor of
Hall County, Nebraska to the City in accordance with law.
Reference is hereby made to the Resolution for the provisions, among others, with respect
to the collection and disposition of certain tax and other revenues, the special funds charged with
and pledged to the payment of the principal of and interest on this Note, the nature and extent of
the security thereby created, the terms and conditions under which this Note has been issued, the
rights and remedies of the Registered Owner of this Note, and the rights, duties, immunities and
obligations of the City and the Authority. By the acceptance of this Note, the Registered Owner
assents to all of the provisions of the Resolution.
The principal of and interest hereon shall not be payable from the general funds of the City
nor the Authority nor shall this Note constitute a legal or equitable pledge, charge, lien, security
interest or encumbrance upon any of the property or upon any of the income, receipts, or money
and securities of the City or the Authority or of any other party other than those specifically
pledged under the Resolution. This Note is not a debt of the City or the Authority within the
meaning of any constitutional, statutory or charter limitation upon the creation of general
obligation indebtedness of the City or the Authority, and does not impose any general liability
upon the City or the Authority and neither the City nor the Authority shall be liable for the
payment hereof out of any funds of the City or the Authority other than the Hotel Revenues and
other funds pledged under the Resolution, which Hotel Revenues and other funds have been and
hereby are pledged to the punctual payment of the principal of and interest on this Note in
accordance with the provisions of this Resolution.
The Registered Owner may from time to time enter the respective amounts advanced
pursuant to the terms of the Resolution under the column headed “Principal Amount Advanced” on
Schedule 1 hereto (the “Table”) and may enter the aggregate principal amount of this Note then
outstanding under the column headed “Cumulative Outstanding Principal Amount” on the Table.
On each date upon which a portion of the Cumulative Outstanding Principal Amount is paid to the
Registered Owner pursuant to the redemption provisions of the Resolution, the Registered Owner
may enter the principal amount paid on this Note under the column headed “Principal Amount
Redeemed” on the Table and may enter the then outstanding principal amount of this Note under
the column headed “Cumulative Outstanding Principal Amount” on the Table. Notwithstanding
the foregoing, the records maintained by the Trustee as to the principal amount issued and principal
amounts paid on this Note shall be the official records of the Cumulative Outstanding Principal
Amount of this Note for all purposes.
Reference is hereby made to the Resolution, a copy of which is on file in the office of the
City Clerk, and to all of the provisions of which each Owner of this Note by its acceptance hereof
hereby assents, for definitions of terms; the description of and the nature and extent of the security
for this Note; the Hotel Revenue and other money and securities pledged to the payment of the
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Prataria Ventures, LLC
principal of and interest on this Note; the nature and extent and manner of enforcement of the
pledge; the conditions upon which the Resolution may be amended or supplemented with or
without the consent of the Owner of this Note; the rights, duties and obligations of the Authority
and the Registrar thereunder; the terms and provisions upon which the liens, pledges, charges,
trusts and covenants made therein may be discharged at or prior to the maturity or redemption of
this Note, and this Note thereafter no longer be secured by the Resolution or be deemed to be
outstanding thereunder, if money or certain specified securities shall have been deposited with the
Registrar sufficient and held in trust solely for the payment hereof; and for the other terms and
provisions thereof.
This Note is subject to redemption prior to maturity, at the option of the Authority, in
whole or in part at any time at a redemption price equal to 100% of the principal amount being
redeemed, plus accrued interest on such principal amount to the date fixed for redemption.
Reference is hereby made to the Resolution for a description of the redemption procedures and the
notice requirements pertaining thereto.
In the event this Note is called for prior redemption, notice of such redemption shall be
given by first-class mail to the Registered Owner hereof at its address as shown on the registration
books maintained by the Registrar not less than 10 days prior to the date fixed for redemption,
unless waived by the Registered Owner hereof. If this Note, or any portion thereof, shall have
been duly called for redemption and notice of such redemption duly given as provided, then upon
such redemption date the portion of this Note so redeemed shall become due and payable and if
money for the payment of the portion of the Note so redeemed and the accrued interest thereon to
the date fixed for redemption shall be held for the purpose of such payment by the Registrar,
interest shall cease to accrue and become payable hereon from and after the redemption date.
This Note is transferable by the Registered Owner hereof in person or by its attorney or
legal representative duly authorized in writing at the principal office of the Registrar, but only in
the manner, subject to the limitations and upon payment of the charges provided in the Resolution,
and upon surrender and cancellation of this Note. Upon such transfer, a new Note of the same
series and maturity and for the same principal amount will be issued to the transferee in exchange
therefor. The Authority and the Registrar may deem and treat the Registered Owner hereof as the
absolute owner hereof for the purpose of receiving payment of or on account of principal of and
interest due hereon and for all other purposes.
This Note is being issued as fully a registered Note without coupons. This Note is subject
to exchange as provided in the Resolution.
It is hereby certified, recited and declared that all acts, conditions and things required to
have happened, to exist and to have been performed precedent to and in the issuance of this Note
have happened, do exist and have been performed in regular and due time, form and manner; that
this Note does not exceed any constitutional, statutory or charter limitation on indebtedness; and
that provision has been made for the payment of the principal of and interest on this Note as
provided in this Resolution.
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Prataria Ventures, LLC
(FORM OF ASSIGNMENT)
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
___________________________________________________________________________
Print or Type Name, Address and Social Security Number
or other Taxpayer Identification Number of Transferee
the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
_______________ agent to transfer the within Note on the Note register kept by the Registrar for
the registration thereof, with full power of substitution in the premises.
Dated: ___________________________________________________
NOTICE: The signature to this Assignment
must correspond with the name of the
Registered Owner as it appears upon the
face of the within Note in every particular.
Signature Guaranteed By:
____________________________________
Name of Eligible Guarantor Institution as
defined by SEC Rule 17 Ad-15 (17 CFR
240.17 Ad-15)
By:________________________________
Title:_______________________________
[The remainder of this page intentionally left blank]
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Prataria Ventures, LLC
SCHEDULE 1
TABLE OF CUMULATIVE OUTSTANDING PRINCIPAL AMOUNT
COMMUNITY REDEVELOPMENT AUTHORITY OF
THE CITY OF GRAND ISLAND, NEBRASKA
PRATARIA VENTURES, LLC REDEVELOPMENT PROJECT
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2017 B
(“Hotel Note”)
Date
Principal
Amount
Advanced
Principal
Amount
Redeemed
Cumulative
Outstanding
Principal
Amount
Notation
Made
By
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EXHIBIT G
(FORM OF MOB NOTE)
UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF HALL
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
TAX INCREMENT DEVELOPMENT REVENUE NOTE
(PRATARIA VENTURES, LLC REDEVELOPMENT PROJECT), SERIES 2017
C
(“MOB NOTE”)
No. R-1 Up to $2,500,000
(subject to reduction as described herein)
Date of Date of Rate of
Original Issue Maturity Interest
December 31, 20__4.75%
REGISTERED OWNER: _______________________
PRINCIPAL AMOUNT: SEE SCHEDULE 1 ATTACHED HERETO
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE
NOTE SET FORTH ON THE FOLLOWING PAGES, WHICH FURTHER PROVISIONS
SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT
THIS PLACE.
IN WITNESS WHEREOF, THE COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA has caused this Note to
be signed by the manual signature of the Chairman of the Authority, countersigned by the
manual signature of the Secretary of the Authority, and the City’s corporate seal imprinted
hereon.
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Prataria Ventures, LLC
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA
[S E A L]
By: (manual signature)
Chairman
By: (manual signature)
Secretary
The COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA (the “Authority”) acknowledges itself indebted to, and for
value received hereby promises to pay, but solely from certain specified tax revenues and other
funds hereinafter specified, to the Registered Owner named above, or registered assigns, on the
Date of Maturity stated above (or earlier as hereinafter referred to), the Principal Amount on
Schedule 1 attached hereto upon presentation and surrender hereof at the office of the registrar
and paying agent herefor, the Treasurer of the City of Grand Island, Nebraska (the “Registrar”),
and in like manner to pay interest on the Cumulative Outstanding Principal Amount reflected in
Schedule 1 at the Rate of Interest stated above, calculated on the basis of a 360-day year
consisting of twelve, 30-day months, from the Date of Original Issue stated above, or the most
recent interest payment date to which interest has been paid or duly provided for, as specified
below, to maturity or earlier redemption, payable semiannually on June 1 and December 1 of
each year until payment in full of such Principal Amount, beginning June 1, 20__, by check or
draft mailed to the Registered Owner hereof as shown on the Note registration books maintained
by the Registrar on the 15th day of the month preceding the month in which the applicable
interest payment date occurs, at such Owner’s address as it appears on such Note registration
books. The principal of this Note and the interest hereon are payable in any coin or currency
which on the respective dates of payment thereof is legal tender for the payment of debts due the
United States of America.
This Note is issued by the Authority under the authority of and in full compliance with the
Constitution and statutes of the State of Nebraska, including particularly Article VIII, Section 12 of
the Nebraska Constitution, Sections 18-2101 to 18-2153, inclusive, Reissue Revised Statutes of
Nebraska, as amended, and under and pursuant to Resolution No. ________ duly passed and
adopted by the Authority on __________2017, as from time to time amended and supplemented
(the “Resolution”).
THE PRINCIPAL AMOUNT OF THIS NOTE IS SET FORTH IN SCHEDULE 1
ATTACHED HERETO. THE MAXIMUM PRINCIPAL AMOUNT OF THIS NOTE IS
$2,500,000.
This Note is a special limited obligation of the Authority payable as to principal and
interest solely from and is secured solely by the MOB Revenue (as defined in the Resolution) and
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Prataria Ventures, LLC
certain other money, funds and securities pledged under the Resolution, all on the terms and
conditions set forth in the Resolution. The MOB Revenue represents that portion of ad valorem
taxes levied by public bodies of the State of Nebraska, including the City, on real property within
the MOB Lot (as defined in the Resolution) which is in excess of that portion of such ad valorem
taxes produced by the levy at the rate fixed each year by or for each such public body upon the
valuation of the MOB Lot as of a certain date and as has been certified by the County Assessor of
Hall County, Nebraska to the City in accordance with law.
Reference is hereby made to the Resolution for the provisions, among others, with respect
to the collection and disposition of certain tax and other revenues, the special funds charged with
and pledged to the payment of the principal of and interest on this Note, the nature and extent of
the security thereby created, the terms and conditions under which this Note has been issued, the
rights and remedies of the Registered Owner of this Note, and the rights, duties, immunities and
obligations of the City and the Authority. By the acceptance of this Note, the Registered Owner
assents to all of the provisions of the Resolution.
The principal of and interest hereon shall not be payable from the general funds of the City
nor the Authority nor shall this Note constitute a legal or equitable pledge, charge, lien, security
interest or encumbrance upon any of the property or upon any of the income, receipts, or money
and securities of the City or the Authority or of any other party other than those specifically
pledged under the Resolution. This Note is not a debt of the City or the Authority within the
meaning of any constitutional, statutory or charter limitation upon the creation of general
obligation indebtedness of the City or the Authority, and does not impose any general liability
upon the City or the Authority and neither the City nor the Authority shall be liable for the
payment hereof out of any funds of the City or the Authority other than the MOB Revenues and
other funds pledged under the Resolution, which MOB Revenues and other funds have been and
hereby are pledged to the punctual payment of the principal of and interest on this Note in
accordance with the provisions of this Resolution.
The Registered Owner may from time to time enter the respective amounts advanced
pursuant to the terms of the Resolution under the column headed “Principal Amount Advanced” on
Schedule 1 hereto (the “Table”) and may enter the aggregate principal amount of this Note then
outstanding under the column headed “Cumulative Outstanding Principal Amount” on the Table.
On each date upon which a portion of the Cumulative Outstanding Principal Amount is paid to the
Registered Owner pursuant to the redemption provisions of the Resolution, the Registered Owner
may enter the principal amount paid on this Note under the column headed “Principal Amount
Redeemed” on the Table and may enter the then outstanding principal amount of this Note under
the column headed “Cumulative Outstanding Principal Amount” on the Table. Notwithstanding
the foregoing, the records maintained by the Trustee as to the principal amount issued and principal
amounts paid on this Note shall be the official records of the Cumulative Outstanding Principal
Amount of this Note for all purposes.
Reference is hereby made to the Resolution, a copy of which is on file in the office of the
City Clerk, and to all of the provisions of which each Owner of this Note by its acceptance hereof
hereby assents, for definitions of terms; the description of and the nature and extent of the security
for this Note; the MOB Revenue and other money and securities pledged to the payment of the
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Prataria Ventures, LLC
principal of and interest on this Note; the nature and extent and manner of enforcement of the
pledge; the conditions upon which the Resolution may be amended or supplemented with or
without the consent of the Owner of this Note; the rights, duties and obligations of the Authority
and the Registrar thereunder; the terms and provisions upon which the liens, pledges, charges,
trusts and covenants made therein may be discharged at or prior to the maturity or redemption of
this Note, and this Note thereafter no longer be secured by the Resolution or be deemed to be
outstanding thereunder, if money or certain specified securities shall have been deposited with the
Registrar sufficient and held in trust solely for the payment hereof; and for the other terms and
provisions thereof.
This Note is subject to redemption prior to maturity, at the option of the Authority, in
whole or in part at any time at a redemption price equal to 100% of the principal amount being
redeemed, plus accrued interest on such principal amount to the date fixed for redemption.
Reference is hereby made to the Resolution for a description of the redemption procedures and the
notice requirements pertaining thereto.
In the event this Note is called for prior redemption, notice of such redemption shall be
given by first-class mail to the Registered Owner hereof at its address as shown on the registration
books maintained by the Registrar not less than 10 days prior to the date fixed for redemption,
unless waived by the Registered Owner hereof. If this Note, or any portion thereof, shall have
been duly called for redemption and notice of such redemption duly given as provided, then upon
such redemption date the portion of this Note so redeemed shall become due and payable and if
money for the payment of the portion of the Note so redeemed and the accrued interest thereon to
the date fixed for redemption shall be held for the purpose of such payment by the Registrar,
interest shall cease to accrue and become payable hereon from and after the redemption date.
This Note is transferable by the Registered Owner hereof in person or by its attorney or
legal representative duly authorized in writing at the principal office of the Registrar, but only in
the manner, subject to the limitations and upon payment of the charges provided in the Resolution,
and upon surrender and cancellation of this Note. Upon such transfer, a new Note of the same
series and maturity and for the same principal amount will be issued to the transferee in exchange
therefor. The Authority and the Registrar may deem and treat the Registered Owner hereof as the
absolute owner hereof for the purpose of receiving payment of or on account of principal of and
interest due hereon and for all other purposes.
This Note is being issued as fully a registered Note without coupons. This Note is subject
to exchange as provided in the Resolution.
It is hereby certified, recited and declared that all acts, conditions and things required to
have happened, to exist and to have been performed precedent to and in the issuance of this Note
have happened, do exist and have been performed in regular and due time, form and manner; that
this Note does not exceed any constitutional, statutory or charter limitation on indebtedness; and
that provision has been made for the payment of the principal of and interest on this Note as
provided in this Resolution.
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[The remainder of this page intentionally left blank]
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(FORM OF ASSIGNMENT)
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
___________________________________________________________________________
Print or Type Name, Address and Social Security Number
or other Taxpayer Identification Number of Transferee
the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
_______________ agent to transfer the within Note on the Note register kept by the Registrar for
the registration thereof, with full power of substitution in the premises.
Dated: ___________________________________________________
NOTICE: The signature to this Assignment
must correspond with the name of the
Registered Owner as it appears upon the
face of the within Note in every particular.
Signature Guaranteed By:
____________________________________
Name of Eligible Guarantor Institution as
defined by SEC Rule 17 Ad-15 (17 CFR
240.17 Ad-15)
By:________________________________
Title:_______________________________
[The remainder of this page intentionally left blank]
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SCHEDULE 1
TABLE OF CUMULATIVE OUTSTANDING PRINCIPAL AMOUNT
COMMUNITY REDEVELOPMENT AUTHORITY OF
THE CITY OF GRAND ISLAND, NEBRASKA
PRATARIA VENTURES, LLC REDEVELOPMENT PROJECT
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2017 C
(“MOB Note”)
Date
Principal
Amount
Advanced
Principal
Amount
Redeemed
Cumulative
Outstanding
Principal
Amount
Notation
Made
By
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Prataria Ventures, LLC
EXHIBIT F
PUBLIC PARKING LICENSE AGREEMENT
THIS PARKING LOT LICENSE AGREEMENT (the “Agreement”) is made this ____
day of _______________, 2017 by and between Prataria Ventures, LLC, a Nebraska limited
liability company (“Licensor”), and the Community Redevelopment Authority of the City of
Grand Island, Nebraska (“Licensee”).
RECITALS
A.Licensor owns certain real estate located in Grand Island, Nebraska legally described as:
Lots 1, 2 and 3, Prairie Commons Subdivision, Grand Island, Hall County,
Nebraska
(the “Property”).
B.Licensor entered into a Redevelopment Contract (the “Redevelopment Contract”) with
Licensee for the construction of a hospital, medical office building, hotel and related
improvements located on the Property.
C.Pursuant to the Redevelopment Agreement, and to ameliorate the blighted and
substandard conditions of the Property, Licensor agrees to grant a nonexclusive limited
license to the public to use the portions of the parking lot located on the Property that are
designated as “public parking” as generally shown on the site plan attached hereto as
Exhibit “1” (the “Parking Lot”). The proposed site plan and designated Parking Lot may
be amended and updated during the construction of the Project, provided that the public
parking actually provided is substantially the same in scope.
D.Under the Redevelopment Agreement, Licensor is receiving financial assistance from the
Licensee to improve the Parking Lot provided that the public is granted certain rights to
use the Parking Lot.
E.This Agreement sets forth the parties’ rights and obligations with respect to the license on
the Parking Lot.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and
agreements set forth herein and in the Redevelopment Agreement, Licensor and Licensee do now
hereby agree as follows:
1.Parking Lot License. Licensor hereby grants to Licensee, for the benefit of the public, a
nonexclusive limited license for non-commercial vehicular parking in the Parking Lot daily from
7:00 a.m. to 12:00 a.m. (“Permitted Hours”), in accordance with the following conditions:
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Prataria Ventures, LLC
a.This Agreement shall grant the public rights solely for the parking of non-
commercial vehicles and vehicular ingress and egress from the public street to the
Parking Lot.
b.Nothing in this Agreement is intended to permit any of the following enumerated
or similar activities by the public in the Parking Lot: loitering, partying, demonstrating,
picketing, soliciting, commerce of any kind, begging, littering, sunbathing, consuming
alcoholic beverages, carrying firearms, erecting signs or displays, pick-up/drop-off
location for mass transport to a remote location or event, engaging in any illegal,
offensive, indecent, obscene, vulgar, lewd or disorderly speech, dress or conduct, or
otherwise disturbing the peace.
c.Licensor shall have the right to deny access to the Parking Lot to persons who are
disorderly or intoxicated or engaging in any of the activities identified in subsection b.
above.
d.Licensor shall have the right to deny public access to the Parking Lot and remove
unauthorized vehicles in the Parking Lot during any time outside of the Permitted Hours.
f.Licensor shall have the right to post and enforce any reasonable requirements
regarding the use of the parking lot, including but not limited to reservation of certain
stalls for handicapped or other designated users, time limits per parking session, and any
other requirements it deems appropriate.
2.Authorized Use. Licensee shall be entitled to use the Parking Lot solely for the
limited uses specified in this Agreement during the permitted hours specified in the Agreement
and for no other purposes whatsoever.
3.Private Property. The Parking Lot shall at all times remain the private property of
the Licensor and nothing in this Agreement or the granting of this License shall be deemed to
create or constitute a public forum, limited or otherwise.
4.Maintenance and Upkeep. Licensor shall perform all ordinary and/or necessary
maintenance and repairs on the Parking Lot. Licensee shall have no responsibility to provide or
pay for any security, upkeep, maintenance services or repairs related to use of the Parking Lot.
5.Indemnification. Licensor shall defend, indemnify and hold Licensee harmless
from and against any liability, claims, suits, demands, judgments (including costs, expenses and
attorneys’ fees), resulting from actions or claims by third parties or defaults under this
Agreement by Licensor arising out of the license on the Parking Lot.
6.Term. This Agreement shall be for a term of fifteen (15) years. Provided,
however, this Agreement shall terminate at any earlier date that the Redevelopment Agreement is
terminated and is no longer in effect.
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7.Insurance. Licensor, at its expense, shall (i) keep the Parking Lot insured under a
standard form of insurance policy against loss or damage resulting from fire or other perils
normally insured under uniform standard extended coverage endorsement; and (ii) carry and
maintain comprehensive public liability insurance.
8.Binding Effect. This Agreement shall be appurtenant to and run with the
property. The grant of this easement shall be binding upon the heirs, executors, administrators,
successors and assigns of Licensor.
(Signature page follows)
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Prataria Ventures, LLC
IN WITNESS WHEREOF, the parties execute this Parking Lot License Agreement
effective as of the date first written above.
“LICENSOR”
Prataria Ventures, LLC, a Nebraska limited
liability company
By:
David Ostdiek, Manager
STATE OF NEBRASKA )
) ss.
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ___ day of __________,
2017, by David Ostdiek, Manager of Prataria Ventures, LLC, a Nebraska limited liability
company, on behalf of the limited liability company.
Notary Public
“LICENSEE”
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA
Chairman
STATE OF NEBRASKA )
) ss.
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ____ day of _________,
2017, by _________, Chairman of the Community Redevelopment Authority of the City of
Grand Island, Nebraska, on behalf of the Agency.
Notary Public
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Prataria Ventures, LLC
EXHIBIT G
AMENDMENT TO REDEVELOPMENT CONTRACT
Amendment No. ____
This Amendment to Redevelopment Contract (this "Amendment") is made and entered
into as of the _______ day of ___________, 20___, by and between the Community
Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), and
__________________, a Nebraska limited liability company ("Redeveloper").
RECITALS
WHEREAS, Authority and Prataria Ventures, LLC, a Nebraska limited liability company
(“Prataira”) entered into a Redevelopment Contract, dated as of September ___, 2017 (the
"Agreement");
WHEREAS, the Agreement intended to implement the redevelopment plan entitled
Redevelopment Plan Amendment Grand Island CRA Area #17 ___________ 2016 to provide for
the redevelopment of lots and lands located in a blighted and substandard area of the City of
Grand Island, Nebraska (the “City”);
WHEREAS, with respect to Lot 2, Prairie Commons Subdivision, Grand Island, Hall
County, Nebraska (“MOB Lot”), Prataria assigned all rights and obligations under the
Agreement to Redeveloper.
WHEREAS, in order to assist in the financing of the Redevelopment Project described in
the Redevelopment Plan, the Agreement provides for periodic amendments thereto; and
WHEREAS, pursuant to Section 3.01 of the Agreement the parties desire to amend the
Agreement on the terms set forth herein and this Amendment shall constitute a "Redevelopment
Contract Amendment" as defined in the Agreement.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
set forth, Authority and Redeveloper do hereby agree to amend the Agreement as follows:
1.Definitions. All capitalized terms used in this Amendment and not otherwise
defined herein shall have the meanings ascribed to such terms in the Agreement.
2.Amendment – MOB Lot. This Amendment applies solely to the MOB Lot.
3.Effective Date. The effective date of the Amendment shall be January 1, 20___.
4.Division Date. The Division Date (the “Division Date”) shall mean the effective
date for purposes of dividing taxes pursuant to Section 18-2147 of the Nebraska Community
Development Law. The Division Date for the applicable Phase shall be January 1, 20___; and a
proposed form of the "Notice to Divide Tax for Community Redevelopment Project" applicable
to such Phase is attached hereto as Exhibit “A” and incorporated herein by this reference. For
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purposes of the Notice to Divide Tax for Community Redevelopment Project, the calendar year
in which the division of real property tax becomes effective shall be the year of the Division
Date.
5.Base Value Year. The base value year for such Phase shall be 20___.
6.Requirement to File Notice to Divide Tax for Community Redevelopment
Project. The Authority shall execute and file with the Hall County Assessor and Treasurer a
signed original of Exhibit “A”, attached hereto, being the Notice to Divide Tax for Community
Redevelopment Project, prior to August 1, of the year of the Division Date
7. Miscellaneous Provisions.
(a)Effectiveness. This Amendment shall become effective when and only
when counterparts of this Amendment have been duly executed by both Authority and
Redeveloper.
(b)Ratification of Agreement. Except as amended by this Amendment, the
Agreement shall remain in full force and effect and is hereby ratified and confirmed in all
respects. Each party acknowledges and agrees to all terms of the Agreement, as the same
are amended by this Amendment, and makes and restates each representation and
warranty set forth therein as if made on the date of this Amendment.
[Signature and notary page follows]
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IN WITNESS WHEREOF, Authority and Redeveloper have signed this Amendment as
of the date and year first above written.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
ATTEST:GRAND ISLAND, NEBRASKA
____________________________ By:________________________
Secretary Chairman
STATE OF NEBRASKA )
) SS
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of 20__, by
________________ and ________________, Chairman and Secretary, respectively, of the
Community Redevelopment Authority of the City of Grand Island, Nebraska, on behalf of the
Authority.
____________________________
Notary Public
“Redeveloper”
_____________________, LLC
By:______________________
Name: ______________________
Title: _______________________
STATE OF NEBRASKA )
) SS
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of _____, 2017, by
_____________, manager of _____________, LLC, on behalf of the limited liability company.
________________________
Notary Public
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Prataria Ventures, LLC
EXHIBIT “A” to Amendment to Redevelopment Contract
Notice to Divide Tax for Community Redevelopment Project
[TO BE ATTACHED]
4842-4797-9599, v. 2
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Redevelopment Plan Amendment
Grand Island CRA Area 17
June 2016
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area 17 within the city, pursuant to
the Nebraska Community Development Law (the “Act”) and provide for the
financing of a specific project in Area 17.
Executive Summary:
Project Description
THE REDEVELOPMENT OF PROPERTY LOCATED SOUTH OF HUSKER
HIGHWAY AND WEST OF U.S. HIGHWAY 281 (THE PROJECT SITE IS
CURRENTLY PLATTED AS EWOLDT SUBDIVISION WHICH PLAT WILL BE
VACATED AND A NEW PLAT RECORDED). THE PROJECT WILL CONSIST OF
DEMOLITION OF EXISTING FARMS STRUCTURES, ALL SITE WORK AND
GRADING TO PROMOTE AND ENHANCE DRAINAGE ACROSS THE SITE,
INTALLATION OF ROADS, SEWER, WATER AND OTHER UTILITY
INFRASTRUCTURE TO SUPPORT DEVELOPMENT OF THE SITE. THE PROJECT
SHALL ALSO INCLUDE INFRASTRUCTURE IMPROVEMENTS AND
MODIFICATIONS WITHIN THE PUBLIC RIGHT-OF-WAY OF HUSKER
HIGHWAY (U.S. HIGHWAY 34) AND U.S. HIGHWAY 281 TO FACILITATE THE
TRAFFIC THE PROJECT WILL GENERATE. THE INTIAL PHASE OF THIS
DEVELOPMENT WILL CONSIST OF THE CONSTRUCTION OF A 4 STORY 64
BED HOSPITAL, A 66,000 SQUARE FOOT MEDICAL OFFICE BUILDING AND A
103 BED HOTEL WITH 7000 SQUARE FEET OF CONFERENCE/MEETING SPACE.
The use of Tax Increment Financing to aid in demolition, site clearance, and necessary
infrastructure and grading improvements to redevelop the southwest corner of Husker
Highway and U.S. Highway 281 currently platted as Ewoldt Sub in the City of Grand
Island. The use of Tax Increment Financing is an integral part of the development plan
and necessary to make this project economically feasible. The project will result in the
development of lots along this section of U.S. 281 toward U.S. Interstate 80. The
proposed anchors for the first phase of this development location include a private
hospital, medical office building and hotel with conference space. Subsequent phases of
the remainder of the site include housing, office space and retail development. The
developer has indicated that this development would not be considered nor financially
feasible for at this location without the use of TIF.
Prataria Ventures L.L.C., a wholly owned subsidiary of Chief Industries, Inc., owns the
subject property. Chief Industries was founded in 1954 and is headquartered in Grand
Island. The developer is responsible for and has provided evidence that they can secure
adequate debt financing to cover the costs associated with the site work and remodeling.
The Grand Island Community Redevelopment Authority (CRA) intends to pledge the ad
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valorem taxes generated over the 15 year period beginning January 1, 2018 towards the
allowable costs.
TAX INCREMENT FINANCING TO PAY FOR THE REHABILITATION OF THE
PROPERTY WILL COME FROM THE FOLLOWING REAL PROPERTY:
Property Description (the “Redevelopment Project Area”)
Legal Descriptions: All of Ewoldt Subdivision in Grand Island, Hall County, Nebraska
and the adjacent rights-of-way for Husker Highway/U.S. Highway 34, U.S. Highway 281
and Rae Road.
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Existing Land Use and Subject Property
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This plan amendment provides for the issuance TIF Notes, the proceeds of which
will be granted to the Redeveloper. The tax increment will be captured for up to 15
tax years the payments for which become delinquent in years 2018 through 2032
inclusive or as otherwise dictated by the contract.
The real property ad valorem taxes on the current valuation will continue to be paid
to the normal taxing entities. The incremental value for the first phase will be
created by the construction of a 64 bed private hospital, medical office building and
hotel/conference center. This area is planned for commercial development with the
Grand Island Comprehensive Plan and will need to be rezoned to either a B2
General Commercial or CD Commercial Development zone to accommodate the
planned development. In addition, the current subdivision will be vacated and a
new subdivision created to create the buildable lots of record for the first phase of
redevelopment.
Statutory Pledge of Taxes.
In accordance with Section 18-2147 of the Act and the terms of the Resolution
providing for the issuance of the TIF Note, the Authority hereby provides that any ad
valorem tax on the Redevelopment Project Area for the benefit of any public body be
divided for a period of fifteen years after the effective date of this provision as set forth in
the Redevelopment Contract, consistent with this Redevelopment Plan. Said taxes shall
be divided as follows:
a. That portion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the redevelopment project valuation shall
be paid into the funds, of each such public body in the same proportion as all other taxes
collected by or for the bodies; and
b. That portion of the ad valorem tax on real property in the
redevelopment project in excess of such amount, if any, shall be allocated to and, when
collected, paid into a special fund of the Authority to pay the principal of; the interest on,
and any premiums due in connection with the bonds, loans, notes, or advances on money
to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such
Authority for financing or refinancing, in whole or in part, a redevelopment project.
When such bonds, loans, notes, advances of money, or indebtedness including interest
and premium due have been paid, the Authority shall so notify the County Assessor and
County Treasurer and all ad valorem taxes upon real property in such redevelopment
project shall be paid into the funds of the respective public bodies.
Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged
to the repayment of loans or advances of money, or the incurring of any indebtedness,
whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in
whole or in part, the redevelopment project, including the payment of the principal of,
premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness.
Redevelopment Plan Amendment Complies with the Act:
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The Community Development Law requires that a Redevelopment Plan and Project
consider and comply with a number of requirements. This Plan Amendment meets the
statutory qualifications as set forth below.
1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on June 9, 2015.[§18-2109] Such
declaration was made after a public hearing with full compliance with the public
notice requirements of §18-2115 of the Act.
2. Conformation to the General Plan for the Municipality as a whole. [§18-2103 (13)
(a) and §18-2110]
Grand Island adopted a Comprehensive Plan on July 13, 2004. This redevelopment plan
amendment and project are consistent with the Comprehensive Plan, in that no changes in
the Comprehensive Plan elements are intended. This plan merely provides funding for
the developer to rehabilitate the building for permitted uses on this property as defined by
the current and effective zoning regulations.
3. The Redevelopment Plan must be sufficiently complete to address the following
items: [§18-2103(13) (b)]
a. Land Acquisition:
This Redevelopment Plan for Area 17 does not anticipate real property acquisition by the
developer. There is no proposed acquisition by the authority.
b. Demolition and Removal of Structures:
The project to be implemented with this plan provides for the demolition and removal of
the existing abandoned farm buildings on the property.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. This property is
in private ownership and is planned for commercial uses [§18-2103(b) and §18-2111]. A
site plan of the area after the proposed redevelopment is also attached. [§18-2111(5)]
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City of Grand Island Future Land Use Map
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Proposed Site Plan as developed.
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d. Changes to zoning, street layouts and grades or building codes or ordinances or other
Planning changes.
The property is currently platted as Ewoldt Subdivision. The existing Ewoldt
Subdivision and all easements on the property will be vacated. The property will be
replatted with a new street and lot configuration. Necessary easements will be dedicated
with the new subdivision plat.
The area is zoned TA Transitional Agriculture. It is anticipated that the area for the first
phase of redevelopment will be rezoned to accommodate the development to a B2
General Commercial or CD Commercial Development Zone. These zoning districts at
this location are consistent with the Grand Island Comprehensive Development Plan. The
westerly portions of the property may be rezoned to an RO Residential Office zone that
allows apartments and office buildings and which would provide a buffer between
anticipated lakefront residential development to the west. Internal streets will be platted
to connect James Road on the north with the intersection of James Road (Prairie View
Road) and Rae Road on the south. All properties will be graded to drain appropriately
and streets will be designed based on final lot elevations. Streets, utility infrastructure
and grading will be completed for the whole development during the first phase of this
project. No changes are anticipated in building codes or ordinances. However, the CRA
intends to require enhancements to building facades as part of a public space requirement
of the redevelopment project. No other planning changes contemplated. [§18-2103(b) and
§18-2111]
e. Site Coverage and Intensity of Use
The developer is proposing to build on the site within the constraints allowed by the
proposed zoning districts. The CD zoning district allows for up to 50% of the CD zone
to be covered with buildings. The B2 zone would allow coverage of up to 100% of the
lot less required landscaping and the RO zoning district would allow up to 75% coverage.
Final zoning on the project site will have to be approved by the Grand Island City
Council prior to construction. [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. Sufficient capacity exists
within these systems to support this development at completion. Sewer, water will be
extended throughout the site. The developer will be responsible for engineering and
installation of all required utilities. Said utilities are expected to become part of the city
infrastructure and will be accepted into the city systems after construction and inspection.
Electric infrastructure will be extended throughout the site according to typical
commercial installation requirements. Natural gas and communications infrastructure
will be installed according to the agreements formed with the private companies that
provide those services. The City of Grand Island will secure all necessary easements for
utility infrastructure with the platting and development processes. Public façade
easements will be acquired in all buildings constructed as part of the project. The
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Redeveloper will be required to enhance the building exteriors and façades as provided in
the redevelopment contract as a part of the public space development in the project over
and above Commercial Development Zone building requirements. The façade
improvements are required to ensure long-term durability of the buildings to prevent the
recurrence of blighted conditions, with such façade improvements protected with a grant
of an easement to the City by the Redeveloper.
[§18-2103(b) and §18-2111]
4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation. No individuals or businesses
will be relocated due to this development. [§18-2103.02]
5. No member of the Authority, nor any employee thereof holds any interest in any
property in this Redevelopment Project Area. [§18-2106] No members of the
authority or staff of the CRA has any interest in this property.
6. Section 18-2114 of the Act requires that the Authority consider:
a. Method and cost of acquisition and preparation for redevelopment and estimated
proceeds from disposal to redevelopers.
The developer owns this property. The developer has identified the following expenses
shown as exhibit B as potentially eligible for TIF based on the costs for the first phase
development and site preparation/grading, streets and utility infrastructure for the full 96
acre site at $28,910,839. Additional TIF may be generated and used for complete
development of the remainder of the site for site acquisition, planning, architecture, legal
and other eligible activities.
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No property will be transferred to redevelopers by the Authority. The developer will
provide and secure all necessary financing.
b. Statement of proposed method of financing the redevelopment project.
The developer will provide all necessary financing for the project. The Authority will
assist the project by granting the sum of $28,708,000 from the proceeds of the TIF
Indebtedness issued by the Authority. This indebtedness will be repaid from the Tax
Increment Revenues generated from the project. TIF revenues shall be made available to
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repay the original debt and associated interest after January 1, 2017 through December
2031. The developer will use the TIF Note to secure debt financing in an amount not to
exceed $28,708,000 to be paid to the note holder during the term of the financing.
c. Statement of feasible method of relocating displaced families.
No families will be displaced as a result of this plan.
7. Section 18-2113 of the Act requires:
Prior to recommending a redevelopment plan to the governing body for approval, an
authority shall consider whether the proposed land uses and building requirements in the
redevelopment project area are designed with the general purpose of accomplishing, in
conformance with the general plan, a coordinated, adjusted, and harmonious development
of the city and its environs which will, in accordance with present and future needs,
promote health, safety, morals, order, convenience, prosperity, and the general welfare, as
well as efficiency and economy in the process of development, including, among other
things, adequate provision for traffic, vehicular parking, the promotion of safety from
fire, panic, and other dangers, adequate provision for light and air, the promotion of the
healthful and convenient distribution of population, the provision of adequate
transportation, water, sewerage, and other public utilities, schools, parks, recreational and
community facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention of the
recurrence of insanitary or unsafe dwelling accommodations or conditions of blight.
The Authority has considered these elements in proposing this Plan Amendment. This
amendment, in and of itself will promote consistency with the Comprehensive Plan. This
will have the intended result of preventing recurring elements of blighted and substandard
conditions within the area.
8. Time Frame for Development
Development of this project is anticipated to be completed between September of 2016
and December of 2018. Excess valuation should be available for this project for 15 years
beginning with the 2017 tax year. Additional projects may be brought forward for
separate consideration on parcels located outside of this initial phase.
9. Justification of Project
Demolition, extension of utilities, substantial site grading and installation of streets are
necessary to facilitate redevelopment of this site. The redevelopment of this property by
Prataria Ventures, LLC, will result in increased employment opportunities in the medical
sector within Grand Island as well as expanded medical choices. This is a first step in
extending development south along U.S. Highway 281 toward U.S. Interstate 80. The
Grand Island City Council has made it clear with previous decisions that they support
development toward the I-80/281 interchange.
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10. Cost Benefit Analysis The CRA will engage consultants to prepare a cost benefit
analysis. The results of the analysis will be included as an appendix to this plan
amendment.
Time Frame for Development
Development of this project is anticipated to be completed between September of 2016
and December of 2018. The base tax year should be calculated on the value of the
property as of January 1, 2017. Excess valuation should be available for this project for
15 years beginning in 2017 with taxes due in 2018. Excess valuation will be used to pay
the TIF Indebtedness issued by the CRA per the contract between the CRA and the
developer for a period not to exceed 15 years or an amount not to exceed $28,708,000 the
projected amount of increment based upon the anticipated value of the project and current
tax rate.
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Appendix
Cost-Benefit Analysis
August 16, 2016
Report prepared by:
Ron Konecny, PhD
Professor of Management
University of Nebraska Kearney
Email: konecnyr@unk.edu
Allan Jenkins, PhD
Professor of Economics
University of Nebraska Kearney
Email: jenkinsa@unk.edu
DISCLAIMER
The results expressed in this report do not reflect the position of the University of Nebraska
Kearney or the University of Nebraska System.
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Cost/Benefit Analysis Summary Statement:
This appendix provides a cost/benefit analysis for the proposed Prataria Ventures
Redevelopment Project in Grand Island, Nebraska. The report addresses all requirements for
cost-benefit set forth in the Neb. Rev. Stat. §§18-2101 through 18-2150.
Summary of the Project
1. Hospital: 4 story, 64 patient rooms, approximately 172,000 square feet
2. Office Building: 3 story facility, approximately 66,000 square feet
3. Hotel: 110 guest rooms, approximately 81,500 square feet including 7,000 square feet of
conference space
Any Cost-Benefit model used by the authority shall consider and analyze the following factors:
a) Tax shifts resulting from the approval of the use of funds pursuant to Section 18-2147
There are no tax shifts resulting from this TIF project. The base valuation is taxed at the same
rate as other comparable property. Only the incremental taxes created by the Redevelopment
project will be divided and captured to pay project eligible expenses for a period not to
exceed 15 years.
b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
Existing Public infrastructure has sufficient capacity to meet project needs. The project will
have little impact on the number of students in Grand Island Public School District and will
have no appreciable impact on school funding in the short run. At the end of the TIF period,
the increased valuation will have a positive impact on school funding and other government
funding. The City and Developer will negotiate an appropriate cost sharing for the new
traffic signal and turning lane on Highway 281 at the south edge of the property. The GI Fire
Department has indicated it will need to purchase $18,000 in new equipment if the project is
developed. Increased economic activity stemming from the project will increase GI sales tax
revenue by $250,000 per year.
c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
There are no other firms locating or expanding within the redevelopment area.
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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
The projected increase in Grand Island’s population will provide the labor force necessary
for low-skill employees at the hotel and hospital. The new medical facilities will help in the
recruitment of additional healthcare providers into the MSA, which is currently underserved.
There is now substantial out-migration for medical services, so the new facility should
recapture some of those patients. The aging of the population will increase the demand for
medical services. Hospital related employment will soften the impact of the closing of the
Grand Island Veterans’ Home.
Increased travel on Interstate – 80 will increase the demand for hotel rooms.
e) Any other impacts determined by the authority to be relevant to the consideration of
costs and benefits arising from the redevelopment project.
IMPLAN modeling estimates that the construction phase of the project will create $153
million in economic activity in Hall County and generate $260,000 in local sales tax during
the construction phase. The on-going operation of the new facilities will add an additional
$145 million in economic activity and $250,000 in local sales tax annually.
Researchers examined the statewide trends in TIF utilization to provide additional
information for city authorities. Developers and local governments are continuing to use TIF
financing, with 89 new projects in 2015. Use of TIF has varied yearly in response to changes
in the national business cycle.
Each of these summary points are explained in more detail in the following sections.
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Economic Impact Estimation: IMPLAN Modeling
An input/output model using IMPLAN software was used to analyze the economic impact of the
Prataria Ventures project. IMPLAN, originally developed by the University of Minnesota and
the USDA Forest Service in 1979, is widely used today in regional planning and impact
analysis. IMPLAN provides a consistent economic framework for analysis at the regional, state,
and/or county level. The model captures the cumulative impact on the economy as an initial
expenditure in one industry ripples through the regional economy, creating the well-known
multiplier effect in income and employment. For example, to produce more automobiles requires
more steel, which requires more iron ore, which requires transportation and ore mining. Building
more automobiles will increase employment and income in all industries that produce inputs for
automobiles.
IMPLAN captures data down to the Zip code level, but the smaller the area of analysis the
greater the economic leakage from the study area. This study uses Hall County level data. The
economic characteristics of Hall County, as identified by IMPLAN, are presented in the
following graphic. This IMPLAN screen identifies fundamental characteristics like the top ten
industries by employment, average household income, the total number of industries in the
county, and gross regional product. Behind this gateway screen is a dataset of 526 industry
sectors. A change in expenditure in on sector is traced then by IMPLAN through the entire
matrix for the study area.
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The researchers used the latest available IMPLAN data set for Hall County to determine direct,
indirect, and induced impacts created by the estimated employment and expenditure patterns of
the proposed project.
Direct effect: Represents the impacts (e.g. change in employment) for the expenditures
and/or production values specified as direct final demand changes.
Indirect effect: Represents the impacts (e.g. change in employment) caused by the
iteration of industries purchasing from industries resulting from direct final demand
changes.
Induced effect: Represents the impacts (e.g. change in employment) on all local
industries caused by the expenditures of new household income generated by the direct
and indirect effects of direct final demand changes.
Each economic activity creates a different ripple effect through the county economy. The
hospital construction phase will have significant impacts on wholesale trade, employment
services, full-service restaurants, and trucking services. To build the $60.8 million hospital,
employment in the construction trades will obviously increase. As this employment increases,
workers will spend their additional earnings on a wide variety of goods and services, thus
creating more demand for consumer goods. Likewise, multiple vendors will supply inputs into
the construction project, thus increasing their revenue and resulting economic activity.
Hospital Construction – Total Effects
The construction phase creates a one-time injection of additional spending into the county while
normal operation creates an annual stream of activity. The ongoing operation of the hospital will
have a different impact than the construction phase. The following graphic lists the ten
industries most affected as the hospital engages in its normal business. These identified impacts
will change over time as technology and innovation alter the structural relationships between
different industries.
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Hospital Operation – Total Effects
IMPLAN has sufficient detail to capture the differences between somewhat similar activities.
For example, the infrastructure matrix recognizes that paving a road uses different inputs than
building a hospital.
TIF Infrastructure Construction – Total Effects
Researchers modeled seven different impact scenarios. Unless noted otherwise, the modeling
was based upon the amount of expenditure that was contained in project documents. This
expenditure then created the unique impact tables like those just discussed. The following tables
summarize the impacts. One reason that TIF is a popular development tool is that it fosters the
leveraging of public and private resources.
TIF funds are combined with $85.5 million in private construction spending for this project. The
direct and multiplier impacts are presented in the following tables. Construction and operation
impacts are evaluated and presented separately because construction creates a one-time injection
of funding into the community while operation involves a multi-year stream. Thus, this particular
project will generate seven distinct impact models, as presented in the following table. Because
the model results are intended to reflect the impact on Hall County, the professional fees that are
included in total TIF expenditures are not included in the analysis. Including these fees would
overstate the impact on Hall County because it is likely that most of those professional fees are
paid to companies outside the county. The annual revenues for the hotel and hospital are not
known, but are estimated based upon the number of projected employees. According to
IMPLAN, a hospital in Hall County with 296 employees (from company planning documents)
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would produce $45.5 million in annual revenue and a hotel with 45 workers would produce $3.8
million in revenue annually.
Hall County Direct Impacts
Activity Amount FTE Explanation Time
Frame
TIF Infrastructure $19,400,000 114 Professional fees not included One-time
Hotel Construction $11,900,000 94 One-time
Hotel Operation $3,800,000 45 Ongoing
MOB Construction $12,800,000 79 One-time
MOB Operation $40,800,000 250 IMPLAN modeling with 250 employees
calculates $40.8 million. Ongoing
Hospital Construction $60,800,000 374 One-time
Hospital Operation $45,500,000 296 IMPLAN modeling with 296 employees
calculates $45.5 million. Ongoing
Hall County Indirect Impacts
Activity Amount Employment
TIF $5,400,000 38 One-time impact
Hotel Construction $2,300,000 15 One-time impact
Hotel Operation $1,300,000 11 Ongoing, each year
MOB Construction $3,100,000 23 One-time impact
MOB Operation $8,400,000 70 Ongoing, each year
Hospital Construction $14,900,000 107 One-time impact
Hospital Operation $12,900,000 106 Ongoing, each year
Hall County Induced Impacts
Activity Amount Employment
TIF $4,100,000 33 One-time impact
Hotel Construction $2,800,000 23 One-time impact
Hotel Operation $800,000 6 Ongoing, each year
MOB Construction $2,700,000 22 One-time impact
MOB Operation $18,600,000 151 Ongoing, each year
Hospital Construction $12,700,000 103 One-time impact
Hospital Operation $14,600,000 119 Ongoing, each year
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To summarize, Direct, Indirect, and Induced Impacts are totaled. The construction activities will
add more than $150 million in economic activity to Hall County, and will support 1,023 jobs.
The jobs number does not mean that total county employment will increase by 1,023 because
some of the supported jobs are “retained” rather than new. Annual operations of the three
facilities will add $147 million per year to the Hall County economy and will support 1,054 jobs.
Hall County Total Impacts
Construction
Activity Amount Employment
TIF Infrastructure $28,900,000 185
Hotel Construction $17,000,000 131
MOB Construction $18,600,000 123
Hospital Construction $88,400,000 584
Total $152,900,000 1,023
Hall County Total Impacts
Annual Operations
Activity Amount Employment
Hotel Operation 5,900,000 62
MOB Operation $67,800,000 471
Hospital Operation $73,000,000 521
Total $146,700,000 1,054
Modeled Tax Receipts Impact
The increased economic activity stemming from the construction and operation of the proposed
project will increase retail sales which in turn will increase sales tax receipts. The construction
phase will add an estimated $259,000 in Grand-Island sales tax receipts. The ongoing operations
of the hotel, medical office building, and hospital will add approximately $276,000 per year in
city sales tax receipts.
Construction Tax Receipts: One-time
TIF Infrastructure, Hotel, MOB, and Hospital
Tax Receipts
Tax on Production and Imports: Sales Tax $1,209,000
Nebraska State Sales Tax (5.5% rate) $950,000
Grand Island Sales Tax (1.5) $259,000
Personal Tax: Property Taxes(households) $20,000
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Operation Tax Receipts: Annually
Hotel, MOB, and Hospital Operation
Tax Receipts
Tax on Production and Imports: Sales Tax $1,288,000
Nebraska State Sales Tax (5.5% rate) $1,012,000
Grand Island Sales Tax (1.5) $276,000
Personal Tax: Property Taxes(households) $30,000
While the use of TIF influences the property tax receipts from the development, the increase in
overall economic activity does increase sales tax. Further, though the property tax receipts from
the development project are restrained by TIF in the short-term, some workers will upgrade to
higher-value homes which means local government will see an increase in total property tax
receipts.
Project Property Tax Revenue
The development site is currently assessed as farm land with a valuation of $332,525. Before the
project is undertaken the property will be reclassified as commercial property, which will
increase its valuation to approximately $1.9 million. At this time, which of these two numbers
will provide the base valuation for the 15 year TIF period is unknown. After completion the
assessed value is estimated by the developer to rise to $90 million. At the conclusion of the 15
year TIF, the valuation will generate substantially more tax revenue than is currently paid on the
property.
Estimated 2016 assessed value $332,525
Estimated value after completion $90,000,000
Incremental value $89,667,475
Levy rate 2.209761
Annual TIF generated (estimated) $1,981,437
TIF bond issue $28,708,000
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Supporting Evidence Regarding Statutory Report Requirements
a) Tax shifts resulting from the approval of the use of funds pursuant to section 18-
2147;
Prataria Ventures LLC, the developer for the project, is responsible for all onsite development
costs. Infrastructure improvements directly benefiting the project are included in the TIF. Only
the incremental taxes created by the Redevelopment project will be divided and captured to pay
project eligible expenses for a period not to exceed 15 years. No direct project costs, or
associated tax burdens, are shifted to local or state tax payers.
b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
Potential Impact on the School District
Researches spoke with Mr. Virgil Harden, Executive Director of Business of the Grand Island
Public Schools District, on August 8, 2016. Mr. Harden concurred with the researchers that the
proposed project will have minimal impact on the total number of students in the district. He
commented that the school district is currently engaged in a set of building and remodeling
projects which will insure sufficient capacity for any project-related growth in student numbers.
The proposed project will have a minor impact on local population and thus will have little
impact on the number of school-age children. The Grand Island Public School District is the 6th
largest school district in Nebraska, with 9,698 students in the 2015-2016 school year. Some of
the project employees may live outside the Grand Island Public School District boundaries, or
may choose to send their children to a private school. The following graph illustrates enrollment
trends for the entire county. Hall County Public Schools have added an average of 172 students
per year for the last fifteen years. Enrollment growth from year to year has shown little
variability. Any project related school enrollment would entail a fractional increase in the total
number of Hall County students.
y = 171.79x + 9481.8
8000
8500
9000
9500
10000
10500
11000
11500
12000
12500
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15
Hall County Public School Enrollment
Average of 172 new students per year
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The distribution of students by grade is illustrated by the following graph. The student
enrollment by grade indicates that there is an existing variability in the school age cohort moving
through the school system. We estimate that the children associated with the development
should not increase the current variation. It is impossible to predict the exact distribution of new
students across grades and by specific school. The impact on public school districts is further
moderated by the availability of private school options in Grand Island.
Source: Nebraska Department of Education
Using data from the Nebraska Department of Education, Grand Island Public Schools
enrollment characteristics are compared with other similar sized districts. Staffing is an
important cost factor for school districts. Grand Island Public Schools teacher Full Time
Equivalent (FTE) and Pupil/Teacher ratios (PT) are close to other similarly sized districts and to
the state averages. The existing PT ratios indicate that there is adequate staff to accommodate a
minor increase in the total number of students.
Rank PK-6 7-8 9-12 Total Elem Sec Elem Sec
Papillion-La Vista Public Schools 4 6,315 1,763 3,436 11,514 430 331 14.7 15.7
Bellevue Public Schools 5 5,411 1,496 3,175 10,082 371 314 14.6 14.9
Grand Island Public Schools 6 5,850 1,477 2,371 9,698 533 139 13.7 17.1
Elkhorn Public Schools 7 4,770 1,216 2,093 8,079 389 126 15.4 16.6
Westside Community Schools 8 3,187 961 1,975 6,123 227 204 14.0 14.4
Kearney Public Schools 9 3,307 750 1,441 5,498 268 85 15.1 17.0
Staff FTE Pupil Teacher
Source: Nebraska Department of Education, STATISTICS AND FACTS ABOUT NEBRASKA SCHOOLS 2015-2016
Given the existing staffing pattern and PT ratios, the Grand Island Public Schools, combined
with the various private school options, are capable of absorbing the anticipated minimal
increase in new students. Comparing Grand Island Public Schools with similarly sized districts
provides evidence that GIPS is operating at an efficient scale. Average Daily Attendance (ADA)
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and Average Daily Membership (ADM) both show GIPS cost per student similar to other like-
sized districts.
Source: Nebraska Department of Education
Potential Impact on Fire and EMS Services
In Grand Island, the ambulance services are operated by the Fire Department. According to Russ
Blackburn, there is an expected new equipment expense of $18,000 if the second hospital is
built.
Additional EMS Project Related Expenses
New equipment expenses $18,000
Additional training expenses $0
Net additional EMS transportation services expenses $0
Source: Russ Blackburn, Division Chief of Emergency Medical Services
Grand Island Fire Department
Potential Impact on Water
Grand Island relies on groundwater for its municipal supply. The city has adequate current
capacity to accommodate any increase in demand from the proposed project.
Source: http://www.grand-island.com/your-government/utilities/water-division/supply-information
District Name By ADA By ADM
Papillion-La Vista Public Schools 10,155 9,707
Bellevue Public Schools 10,790 10,244
Grand Island Public Schools 11,015 10,398
Elkhorn Public Schools 10,275 9,902
Westside Community Schools 12,430 11,921
Kearney Public Schools 10,650 10,144
Number of wells at well field 21
Number of high pressure wells within city 6
Average depth of wells 120 feet
Capacity of water plant 43,800,000 gallons/day
Average consumption 12,900,000 gallons/day
Peak consumption 26,300,000 gallons/day
Storage capacity 9,700,000 gallons/day
Hardness (ppm)255 (average)
Treated Chlorinated only
Water Statistics
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The existing capacity will meet any additional water demand stemming from the proposed
project. No additional costs are shifted onto existing consumers as a result of the project.
Potential Impact on Sanitation/Wastewater
Upgrades to the Waste Water Treatment Plant beginning in 2003 give the plant capacity to deal
with wastewater typically seen in a community of up to 100,000 people. The existing capacity
will meet any additional wastewater stemming from the proposed project. No additional costs
are shifted onto existing consumers as a result of the project.
Potential Impact on Natural Gas
NorthWestern Energy, the retail supplier of natural gas in Grand Island, is a regional diversified
utility services company with approximately 400,000 electric customers in South Dakota and
Montana, and 269,600 natural gas customers in South Dakota, Nebraska and
Montana. NorthWestern Energy has the capacity to respond to large volume users through
customized services tailored to specific projects. The existing network includes seven
compressor stations capable of moving more than 335,000 dekatherms per day. Maximum
aggregate daily gas deliverability is 195,000 dekatherms per day
(northwesternenergy.com). Thus, the existing capacity will meet any additional natural gas
demand stemming from the proposed project. The developer is responsible for all on-site utility
infrastructure costs. No additional costs are shifted onto existing consumers as a result of the
project.
Potential Impact on Electric Services
The Grand Island Utilities Department generates and distributes electricity and water to homes,
businesses, and industries in and near Grand Island Nebraska. Within the boundaries of it's
service area the Utilities Department supplies 22,600 customers with electrical service. The
Utilities Department is owned by the customers it serves and is governed by the Grand Island
City Council as a financially self-supporting entity of the City of Grand Island. No taxes are used
for the operation of the Utilities Department as all departmental operations are financed through
electric and water revenue.
The Platte Generating Station has the capacity to produce 100 megawatts of electrical power.
Generally, this provides sufficient power to satisfy consumer demand in Grand Island. During
peak demand periods additional power is generated at the Burdick Power Station or purchased
from other power producers. The existing electric grid has sufficient capacity to meet any
increase in demand stemming from the proposed project.
Potential Impact on Transportation
The project site is located at the southwest corner of Highway 281 and Highway 34,
approximately 4.5 miles north of Exit 312 on I-80. The existing roads have sufficient capacity to
meet traffic flows into the development. The city planner anticipates the installation of a new
traffic signal at the intersection of Highway 281 and the access road on the south side of the
development. This installed traffic signal is compatible with the city’s existing development
plan for this area, will improve public safety, and by creating smoother access, will improve the
economic viability of the project. At this time, the city and developer are working on a cost-
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sharing proposal for the new traffic signal. Because this improvement is tied to the development
of the area, not just the proposed project, it is reasonable that the city cover some of the
cost. Thus, no project costs are pushed on to the wider community.
Statutory Report Requirements
c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
There are no other firms located or expanding in the boundaries of the redevelopment district.
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;
There are two existing healthcare facilities that may be impacted by the new hospital, CHI St.
Francis Medical Center and the Grand Island Veterans’ Hospital. There are approximately 50
medical clinics of various types and twelve nursing homes that may be impacted. There will
likely be some migration of workers from existing facilities. Opening the new facility may
provide needed employment for the 350 workers displaced by the closure of the Grand Island
Veterans’ Home. There are four existing hotels at the US 281 – Interstate 80 exchange and 18
other motels in Grand Island that may be impacted by the new hotel.
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According to information provided by Blue Cross Blue Shield of Nebraska, approximately 50%
of Hall County healthcare inpatient dollars are now being spend outside the county. Further,
evidence indicates that it is the more complex cases that are going to Lincoln, Omaha, or Denver.
This conclusion stems from the recognition that 35% of hospital admissions occur outside the
county but 50% of the inpatient dollars are spent elsewhere.
The proposed project will create employment in both the healthcare and hospitality
sectors. According to the Nebraska Department of Labor, the Grand Island MSA (Hall,
Hamilton, Howard, and Merrick Counties) had an unemployment rate of 3.4% in June 2016. This
was above the state unemployment rate of 3.0%. Further, the Grand Island MSA has seen
considerable variation in the unemployment rate.
Demographics and Labor Force
The demographic and labor force characteristics of the Grand Island MSA will mitigate the
project impact on existing businesses. Between 1984 and 2015, the MSA population increased
by 14.3%. The MSA population is aging -- from 2000-2013, the population aged 45-64 increased
by 25.4%, while the population in 44 or under age groups increased by 3% or less. These two
trends have important consequences for the local economy. The increasing population will
provide the low-skilled workers needed for many of the hotel and hospital auxiliary functions
like housekeeping. The growing population of older residents will increase the demand for
medical services, which will spur growth in the healthcare sector and increase demand for
healthcare workers.
The Grand Island MSA has a low rate of postsecondary education compared to state and national
residents. MSA residents were 3-7 percentage points less likely than Nebraska and US residents
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to possess bachelor’s or graduate degrees. As the healthcare sector grows, pulling in better
educated workers, it will also pull better-educated trailing spouses into the local economy.
In 2014, the Grand Island MSA’s labor force was approximately 45,200. Since 2010, the MSA’s
unemployment rate has declined from 4.5% to 3.7%. At 71.8%, the MSA’s labor force
participation rate (population 16 years and over in the labor force) was slightly higher than the
statewide rate of 70.6%. The low unemployment rate makes it likely that many of the permanent
workers at the hotel and hospital will migrate from an existing job. This will create some upward
pressure on wages for workers with in-demand skills.
Each work day, thousands of people commute in or out of Grand Island. Ten thousand commute
outside the MSA and 11,100 commute into the city. Project related employment should reduce
the out migration of workers currently living in the MSA. According to the Nebraska
Department of Labor, Grand Island should see substantial increased employment in the
immediate future.
2012-2022 Long-Term Occupational Projections
Source: Nebraska Department of Labor
New hospital facilities will attract providers to Grand Island, which will benefit the entire labor
market. As shown by the two following tables, healthcare workers tend to the well paid. Further,
there is a wide range of occupations associated with the healthcare sector
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16
Nebraska Healthcare Occupations and Wages - 2015
Code Occupation title Employ Median
hourly
wage
Mean
hourly
wage
Annual
mean wage
Percent of
Health
Care Total
29-0000 Healthcare Practitioners and
Technical Occupations
57,130 $26.66 $32.60 $67,800 100.0%
29-1031 Dietitians and Nutritionists 520 $25.59 $25.59 $53,220 0.9%
29-1051 Pharmacists 2,240 $52.67 $48.43 $100,740 3.9%
29-1061 Anesthesiologists 150 >$90.00 >$90.00 > $187,200 0.3%
29-1062 Family and General Practitioners 1,100 >$90.00 $103.94 $216,200 1.9%
29-1063 Internists, General 140 >$90.00 $100.07 $208,150 0.2%
29-1064 Obstetricians and Gynecologists 180 >$90.00 $121.47 $252,660 0.3%
29-1065 Pediatricians, General 180 >$90.00 $101.44 $211,000 0.3%
29-1067 Surgeons 270 >$90.00 $135.01 $280,830 0.5%
29-1069 Physicians and Surgeons, All Other 1,630 $64.16 $77.42 $161,040 2.9%
29-1071 Physician Assistants 780 $44.41 $45.84 $95,340 1.4%
29-1123 Physical Therapists 1,540 $35.36 $35.79 $74,440 2.7%
29-1124 Radiation Therapists 120 $36.11 $40.99 $85,260 0.2%
29-1126 Respiratory Therapists 1,010 $24.25 $24.66 $51,300 1.8%
29-1141 Registered Nurses 20,600 $27.87 $28.35 $58,970 36.1%
29-1151 Nurse Anesthetists 240 $76.38 $74.59 $155,140 0.4%
29-1171 Nurse Practitioners 1,070 $43.46 $43.80 $91,100 1.9%
29-2011 Med and Clinical Lab Technologists 1,360 $26.46 $26.78 $55,700 2.4%
29-2012 Med and Clinical Lab Technicians 1,310 $18.33 $18.61 $38,710 2.3%
29-2031 Cardiovascular Technologists and
Technicians
570 $24.36 $24.64 $51,240 1.0%
29-2032 Diagnostic Medical Sonographers 460 $30.51 $30.95 $64,380 0.8%
29-2033 Nuclear Medicine Technologists 120 $32.02 $31.99 $66,540 0.2%
29-2034 Radiologic Technologists 1,570 $25.25 $25.25 $52,520 2.7%
29-2035 Magnetic Resonance Imaging
Technologists
120 $29.82 $30.45 $63,340 0.2%
29-2051 Dietetic Technicians 150 $14.15 $15.05 $31,310 0.3%
29-2052 Pharmacy Technicians 2,320 $13.77 $14.17 $29,480 4.1%
29-2055 Surgical Technologists 790 $19.71 $20.13 $41,860 1.4%
29-2061 Licensed Practical and Licensed
Vocational Nurses
5,300 $18.77 $19.09 $39,710 9.3%
29-2071 Medical Records and Health Info
Technicians
1,590 $17.87 $18.86 $39,230 2.8%
31-0000 Healthcare Support Occupations 24,790 $12.68 $13.59 $28,270 100.0%
31-1014 Nursing Assistants 13,020 $11.60 $12.18 $25,330 52.5%
31-1015 Orderlies 150 $11.22 $11.66 $24,260 0.6%
31-2021 Physical Therapist Assistants 630 $23.99 $23.92 $49,750 2.5%
31-2022 Physical Therapist Aides 610 $10.69 $11.03 $22,950 2.5%
31-9093 Medical Equipment Preparers 350 $15.98 $16.10 $33,480 1.4%
31-9094 Medical Transcriptionists 640 $16.65 $17.00 $35,350 2.6%
31-9095 Pharmacy Aides 140 $11.43 $12.16 $25,290 0.6%
31-9097 Phlebotomists 600 $13.83 $14.66 $30,500 2.4%
Source: Bureau of Labor Statistics, United States Department of Labor, Occupational Employment and Wages, May 2015
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17
Grand Island MSA Healthcare Occupations and Wages - 2015
Code Occupation title Employ Median
hourly
wage
Mean
hourly
wage
Annual
mean wage
29-0000 Healthcare Practitioners and
Technical Occupations
n/a n/a n/a n/a
29-1062 Family and General Practitioners 50 >$90.00 $120.83 $251,330
29-1069 Physicians and Surgeons, All Other n/a >$90.00 $116.51 $242,350
29-1123 Physical Therapists 80 $34.80 $35.12 $73,050
29-1126 Respiratory Therapists 30 $23.93 $23.93 $49,760
29-1141 Registered Nurses 780 $26.89 $27.49 $57,170
29-1171 Nurse Practitioners 40 $33.65 $35.59 $74,020
29-2011 Medical and Clinical Laboratory
Technologists
60 $25.87 $26.01 $54,110
29-2012 Medical and Clinical Laboratory
Technicians
30 $16.49 $16.60 $34,530
29-2034 Radiologic Technologists 70 $22.86 $23.16 $48,180
29-2052 Pharmacy Technicians 120 $13.80 $14.80 $30,790
29-2061 Licensed Practical and Licensed
Vocational Nurses
310 $18.06 $18.36 $38,190
29-2071 Medical Records and Health
Information Technicians
90 $14.89 $16.55 $34,410
31-0000 Healthcare Support Occupations 1,330 $11.95 $13.01 $27,050
31-1014 Nursing Assistants 740 $11.35 $11.84 $24,620
31-2021 Physical Therapist Assistants 60 $24.15 $23.95 $49,820
31-2022 Physical Therapist Aides 80 $9.56 $10.33 $21,490
Source: Bureau of Labor Statistics, United States Department of Labor, Occupational Employment and Wages, May 2015
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18
Statutory Report Requirements
e) Any other impacts determined by the authority to be relevant to the consideration
of costs and benefits arising from the redevelopment project;
Nebraska cities, like cities nationwide, are using TIF financing with increasing frequency. Each
year the Nebraska Department of Revenue produces a report to submit to the Unicameral. This
report finds a general increase in TIF activity over time. Some cities and counties have been
more active in TIF than others, with most activity occurring along the I-80 corridor
Cumulative Number of TIF Projects by County, 2008- 2015
(excluding Douglas and Lancaster Counties)
Data Source: Nebraska Department of Revenue, PAT Annual TIF Reports , map by authors
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19
Data Source: Nebraska Department of Revenue, PAT Annual TIF Reports
Projects are influenced by local, regional, and national economic circumstances, as reflected by
the cyclical pattern of new TIF projects by year. The following gragh shows the number of new
TIF projects by year in Nebraska on the left axis and the total number of active TIF projects by
year on the right axis.
New and Active TIF Projects
Source: Nebraska Department of Revenue, PAT Annual TIF Reports
0
10
20
30
40
50
60
70
2008 2009 2010 2011 2012 2013 2014 2015Millions of DollarsNew Excess Taxes
From New TIF Projects
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Prataria Ventures, LLC
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 243
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 Prataria Ventures, 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
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Prataria Ventures, LLC
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 $28.9 million, 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 20th day of September, 2017.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND NEBRASKA
ATTEST:By: ___________________________________
Chair
By: ___________________________________
Secretary
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Prataria Ventures, LLC
EXHIBIT A
LEGAL DESCRIPTION OF REDEVELOPMENT PROJECT AREA
* * * * *
EXHIBIT B
FORM OF REDEVELOPMENT PLAN
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