11-14-2018 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, November 14, 2018
Regular Meeting Packet
Board Members:
Tom Gdowski - Chairman
Glen Murray – Vice Chairman
Sue Pirnie
Glenn Wilson
Krae Dutoit
4:00 PM
City Hall
Grand Island Regular Meeting - 11/14/2018 Page 1 / 152
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, November 14, 2018
Regular Meeting
Item A1
Agenda
Staff Contact:
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Grand Island Regular Meeting - 11/14/2018 Page 5 / 152
COMMUNITY REDEVELOPMENT AUTHORITY
AGENDA MEMORANDUM
4 p.m. Wednesday, November 14, 2018
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 October 10, 2018 are submitted for approval. A MOTION is in
order.
3. APPROVAL OF FINANCIAL REPORTS. Financial reports for the period of
October 1 through October 31, 2018 are submitted for approval. A MOTION is in
order.
4. APPROVAL OF BILLS. Payment of bills in the amount of $602,843.60 is submitted
for approval. A MOTION is in order.
5. REVIEW OF COMMITTED PROJECTS AND CRA PROPERTIES.
6. REDEVELOPMENT CONTRACT FOR AREA 2 SOUTHWEST CORNER OF
LOCUST AND U.S. HIGHWAY 34–GRAND ISLAND HOTEL LLC. The Grand
Island City Council approved Resolution 2018-326 at its October 23, 2018 meeting
for an amendment to the redevelopment plan for Area #2. T Grand Island Hotels LLC
is requesting $1,824,179 in tax increment financing to aid in the development vacant
property southwest of Locust and U.S. Highway 34 for a 79 room hotel. This property
has been subject to at least one other TIF project 2 years ago that was not brought to
the final phases of approval. This corner has been vacant for more than 10 years and
is on one of the primary entrances to the community. A MOTION is in order. A
MOTION to approve the contract and Resolution 285 is in order.
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7. REDEVELOPMENT PLAN FOR CRA AREA 26 PROPERTY BEING PLATTED
AS THE ORCHARD SUBDIVSIION-ORCHARD LLC AND HOPPE HOME The
Concerning a redevelopment plan for CRA Area No. 26 to allow for residential
development on 23 acres located south of Capital Avenue and west of the Central
Nebraska Rail line in northeast Grand Island. The proposal is to develop 181 housing
units at a rate of approximately 20 units per year in 3 phases along with all of the
necessary street, storm sewer, water, sanitary sewer and other improvements needed
to support the development. The developer is proposing to sell houses within the area
at around $170,000 per unit. The developer is requesting $6,000,000 in tax increment
financing. The CRA may forward the plan to the Regional Planning Commission for
review and to the Grand Island City Council to give 30-day notice of a potential
development contract. A MOTION to approve Resolution 285 (forward to Regional
Planning Commission) and Resolution 286 (30-day intent notice to city council) is in
order.
8. APPROVAL OF SALE OF PROPERTY OWNED BY SUPER MARKET
DEVELOPERS (SUPER SAVER AT 5 POINTS AND THE ADJACENT
DEVELOPMENT GROUND) TO KEN-RAY L.L.C., A NEBRASKA
LIMITED LIABILITY COMPANY. Ken Ray L.L.C. is proposing to purchase
the property at Five Points from Super Market Developers including both the
Super Saver Store and the undeveloped property that was included in the
redevelopment plan. The Redevelopment Contract requires that the
Developer get authorization from the CRA prior to selling the property during
the term of the redevelopment contract. The CRA cannot unreasonably deny
the sale of the property. A MOTION is in order to approve the sale and
authorize the Chair to sign the Assignment and Assumption of Redevelopment
Contract agreement.
9. FAÇADE IMPROVEMENT GRANT VOGUE BUILDING 209 W 3RD STREET
The owners of the Vogue Building, Julie and Dana Wright are requesting a façade
improvement grant of $50,000 to complete the historic façade replacement on their
building at 209 W. 3rd Street. This is the final phase of the restoration project that
includes building 2 upper story residential units and rehabilitating the commercial
space on the main floor of the building. The total cost of the façade project is
estimated at $67,111. The entire building rehab project is expected to cost $330,000.
The Wrights have received a Life Safety Grant for $35,000. A CRA Façade
committee with Glen Wilson and Glen Murray and Marvin Webb reviewed this
application on November 7, 2018 and is recommending approval.
10. FAÇADE IMPROVEMENT GRANT BOSSELMAN OFFICE BUILDING 1607 S.
LOCUST STREET
Bosselman Real Estate LLC is requesting a façade improvement grant of $75,000 to
complete façade rehabilitation on the south end of the old Skagway/Kmart building at
1607 S. Locust Street. This is the final phase of the rehabilitation project on this
property. The total cost of the façade project is estimated at $187,835. Bosselman
Real Estate LLC did receive a $300,000 for the façade improvements on the north
Grand Island Regular Meeting - 11/14/2018 Page 7 / 152
end of the building that houses the corporate offices. A CRA Façade committee with
Glen Wilson and Glen Murray and Marvin Webb reviewed this application on
November 7, 2018 and is recommending approval of this grant in the amount of
$50,000.
11. DIRECTOR’S REPORT.
12. ADJOURNMENT.
Chad Nabity
Director
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Community Redevelopment
Authority (CRA)
Wednesday, November 14, 2018
Regular Meeting
Item B1
Minutes of October 10, 2018 Meeting
Staff Contact:
Grand Island Regular Meeting - 11/14/2018 Page 9 / 152
OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
October 10, 2018
Pursuant to due call and notice thereof, a Meeting of the Community Redevelopment
Authority of the City of Grand Island, Nebraska was conducted on October 10, 2018 at
City Hall, 100 E. First Street. Notice of the meeting was given in the October 3, 2018
Grand Island Independent.
1.CALL TO ORDER.
Chairman Tom Gdowski called the meeting to order at 4:00 p.m. The following
members were present: Tom Gdowski, Glen Murray, and Sue Pirnie. Also present
were: Director Chad Nabity, Planning Administrative Assistant Norma Hernandez,
Brian Schultz from the Grand Island Finance Department, Assistant Finance
Director William Clingman, and City Administrator Marlan Ferguson and City
Councilman Vaughn Minton.
2.APPROVAL OF MINUTES.
A motion for approval of the Minutes for the September 12, 2018 meeting was
made by Pirnie and seconded by Murray. Upon roll call vote, all present voted aye.
Motion carried 3-0.
3.APPROVAL OF FINANCIAL REPORTS.
Brian Schultz reviewed the financials from September 1st, 2018 to September 30th,
2018. A motion for approval of the financial reports was made by Murray and
seconded by Pirnie. Upon roll call vote, all present voted aye. Motion carried 3-0.
4.APPROVAL OF BILLS.
Brian explained that the BWJW Enterprise INC payment was for work being done
on the South Locust BID. Nabity stated the contractor is being paid directly.
Brian also mentioned Bosselman’s Pump & Pantry is to clear the bond off for the
TIF Project at 106 N. Webb Road. The funds were also received into the CRA
account directly from Bosselman’s.. A motion was made by Pirnie and seconded
by Murray to approve the bills in the amount of $982,906.54. Upon roll call vote,
all present voted aye. Motion carried 3-0.
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5.REVIEW OF COMMITTED PROJECTS & CRA PROPERTY.
The committed projects and CRA properties were reviewed by Nabity.
Nabity stated Amos has been up to the Building Department trying to get the plans
setup to work on the Hedde Building to move that forward. Nabity received an
email from Ken Fredrick last week over Vince Mendez. Nabity explained that the
bills are in just waiting for proof that they have been paid from Vince. The South
Locust Fonner Park BID project will come off since the payment was just
approved. Urban Island/Kinkaider is running a little behind. Neilson request
should be coming in within the next couple of months. The Old Sears Building
project is waiting to see where things go with the TIF application. The CRA
authorized $80,000 for upper story life safety ($55,000 of life safety funds and
$25,000 of other projects funds) from the 2018 budget for the Sears building
apartments. Nabity suggested if the board would like to assign that $25,000 to the
allocation for the 2019 Life Safety funds it could be done now. This would also
lower the amount of Life Safety available for this year to $175,000. The
advantage of doing that is the City matches those funds. Peaceful Root is
anticipated to be done soon. They are continuing to work on Take Flight. The
Ron’s Transmission property was sold and closed.
A motion was made by Murray and seconded by Pirnie to move $25,000 from
other projects to Life Safety. Upon roll call vote, all present voted aye. Motion
carried 3-0.
6.Redevelopment Plan Amendment for CRA Area #2 southwest corner of
South Locust Street and U.S. Highway 34 – Grand
A.Consideration of Resolution 283 – Approve and Forward a
Redevelopment Plan Amendment to the Grand Island City Council for
redevelopment of property located south and west of the intersection of
U.S. Highway 34 and Locust Street for a hotel – Grand Island Hotel LLC.
Nabity stated that the Regional Planning Commission held a public hearing and
did find it was consistent with the comprehensive plan and recommended approval
of it. The CRA board is being asked to forward it to the council for their
consideration.
A motion was made by Murry and seconded by Pirnie to approve Resolution 283.
Upon roll call vote all, voted aye. Motion carried 3-0.
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7.Redevelopment Plan Amendment for CRA Area # 1 for the upper
floor of the west side of the old Sears building at 411 W 3rd street for
residential purposes. – Paramount Development LLC.
CRA board member Wilson arrived.
A.Consideration of Resolution 284- Approve and Forward a
Redevelopment Plan Amendment to the Grand Island City Council
redevelopment of the upper floor of the west side of the old Sears
building at 411 W 3rd street for residential purposes – Paramount
Development LLC.
Nabity started off by explaining this is a downtown project that is entirely
eligible for $159,000 in TIF for over the course of 15 years. Mr. O’Neill
purchased a portion of the building through a condominium arrangement. The
master deed is for the upper floor and the first floor space necessary for
exiting. The Planning Commission did hold a public hearing and found that
it is in consistent with the comprehensive plan.
A motion was made by Murray and seconded by Pirnie to approve
Resolution 284. Upon roll call vote, three voted aye and Gdowski
abstained. Motion carried 3-1.
8.Discussion regarding 2019 Façade Improvement Grants
Nabity explained $200,000 was budgeted for 2019 commercial façade
improvement grants. The Planning Department started receiving
applications for the 2019 façade grant in November of last year. To
date over a million dollars’ worth of request have been received.
Nabity stated if the first come first serve process is used as in the past,
the first one would be the south end of the Bosselman office. They
have requested a grant for façade in the amount of $187,000. The
north end has already been done. The second one that came in was
Old City Hall. They are looking in to some upgrades and updates. A
grant for a $150,000 was done for them over 15 years ago. Family
Eyecare on 4th Street is looking in to some updates and upgrades.
Sherwin Williams on 3rd Street also turned in an application to close to
$200,000 but, have since turned in a revised application for less. Some
others that have turned in an application are Vogue building, Long
John Silvers and Pinnacle Bank. Board members went into discussion
on how to treat the current requests and possible options for each
applicant. The discussion went on to get ideas if there should be a
policy in place. Some of the suggestions were to divide amount
Grand Island Regular Meeting - 11/14/2018 Page 12 / 152
equally between all the applicants or change the criteria in terms of the
match. Nabity would reach out to each of the applicants and explain
$35,000 is available for their project. The board wants to make a
decision on the façade applications at the November meeting.
9.Director’s Report.
Gdowski mentioned he sent an email out to see if there was an interest in anyone
serving on the CRA/BID committee. Board members Murray and Wilson both
agreed on serving on the committee. Chad stated a meeting would be set up
within the next week.
10. Adjournment.
Gdowski adjourned the meeting at 5:07 p.m.
The next meeting is scheduled for 4 p.m., Wednesday, November 14th, 2018.
Respectfully submitted
Norma Hernandez
Administrative Assistant
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Community Redevelopment
Authority (CRA)
Wednesday, November 14, 2018
Regular Meeting
Item C1
Financial Reports for October 1 to October 31, 2018
Staff Contact:
Grand Island Regular Meeting - 11/14/2018 Page 14 / 152
MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
October-18 YEAR TO DATE BUDGET BALANCE USED
CONSOLIDATED
Beginning Cash 734,266 675,752
REVENUE:
Property Taxes - CRA 30,503 30,503 489,000 458,497 6.24%
Property Taxes - Lincoln Pool 10,678 10,678 197,000 186,322 5.42%
Property Taxes -TIF's 98,980 98,980 3,149,000 3,069,570 3.14%
Loan Income (Poplar Street Water Line) - - 14,000 14,000 0.00%
Interest Income - CRA 754 754 300 - 251.39%
Interest Income - TIF'S 54 54 - -
Land Sales - - 100,000 100,000 0.00%
Other Revenue - CRA 200,250 948,938 430,000 - 220.68%
Other Revenue - TIF's 748,688 - - -
TOTAL REVENUE 1,089,907 1,089,907 4,379,300 3,828,390 24.89%
TOTAL RESOURCES 1,824,173 1,089,907 5,055,052 3,828,390
EXPENSES
Auditing & Accounting - - 3,000 3,000 0.00%
Legal Services - - 3,000 3,000 0.00%
Consulting Services - - 5,000 5,000 0.00%
Contract Services 4,184 4,184 75,000 70,816 5.58%
Printing & Binding - - 1,000 1,000 0.00%
Other Professional Services - - 16,000 16,000 0.00%
General Liability Insurance - - 250 250 0.00%
Postage - - 200 200 0.00%
Life Safety - - 200,000 200,000 0.00%
Legal Notices 17 17 500 483 3.50%
Travel & Training - - 1,000 1,000 0.00%
Other Expenditures - - - -
Office Supplies - - 1,000 1,000 0.00%
Supplies - - 300 300 0.00%
Land - - - -
Bond Principal - Lincoln Pool - - 180,000 180,000 0.00%
Bond Interest - - 17,065 17,065 0.00%
Husker Harvest Days 200,000 200,000 200,000 - 100.00%
Façade Improvement - - 200,000 200,000 0.00%
Building Improvement 30,000 30,000 926,000 896,000 3.24%
Other Projects - 25,000 25,000 0.00%
Bond Principal-TIF's 748,688 748,688 3,149,000 2,400,312 23.78%
Bond Interest-TIF's - - - -
Interest Expense - - - -
TOTAL EXPENSES 982,889 982,889 5,003,315 4,020,426 19.64%
INCREASE(DECREASE) IN CASH 107,018 107,018 (624,015)
ENDING CASH 841,284 107,018 51,737 -
CRA CASH 489,585
Lincoln Pool Tax Income Balance 224,872
TIF CASH 126,827
Total Cash 841,284
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF OCTOBER 2018
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MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
October-18 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF OCTOBER 2018
GENERAL OPERATIONS:
Property Taxes - CRA 30,503 30,503 489,000 458,497 6.24%
Property Taxes - Lincoln Pool 10,678 10,678 197,000 186,322 5.42%
Interest Income 754 754 300 - 251.39%
Loan Income (Poplar Street Water Line) - 14,000 14,000 0.00%
Land Sales - 100,000 100,000 0.00%
Other Revenue & Motor Vehicle Tax 948,938 948,938 430,000 - 220.68%
TOTAL 990,872 990,872 1,230,300 758,820 80.54%
WALNUT HOUSING PROJECT
Property Taxes - - -
Interest Income 54 54 - -
Other Revenue - - -
TOTAL 54 54 - -
GIRARD VET CLINIC
Property Taxes 5,270 5,270 - -
TOTAL 5,270 5,270 - -
GEDDES ST APTS-PROCON
Property Taxes - - -
TOTAL - - - -
SOUTHEAST CROSSING
Property Taxes - - -
TOTAL - - - -
POPLAR STREET WATER
Property Taxes 3,936 3,936 - -
TOTAL 3,936 3,936 - -
CASEY'S @ FIVE POINTS
Property Taxes - - -
TOTAL - - - -
SOUTH POINTE HOTEL PROJECT
Property Taxes - - -
TOTAL - - - -
TODD ENCK PROJECT
Property Taxes 3,204 3,204 - -
TOTAL 3,204 3,204 - -
JOHN SCHULTE CONSTRUCTION
Property Taxes 3,516 3,516 - -
TOTAL 3,516 3,516 - -
PHARMACY PROPERTIES INC
Property Taxes - - -
TOTAL - - - -
KEN-RAY LLC
Property Taxes - - -
TOTAL - - - -
Grand Island Regular Meeting - 11/14/2018 Page 16 / 152
MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
October-18 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF OCTOBER 2018
TOKEN PROPERTIES RUBY
Property Taxes 1,465 1,465 - -
TOTAL 1,465 1,465 - -
GORDMAN GRAND ISLAND
Property Taxes - - -
TOTAL - - - -
BAKER DEVELOPMENT INC
Property Taxes - - -
TOTAL - - - -
STRATFORD PLAZA INC
Property Taxes - - -
TOTAL - - - -
COPPER CREEK 2013 HOUSES
Property Taxes 2,159 2,159 - -
TOTAL 2,159 2,159 - -
FUTURE TIF'S
Property Taxes - 3,149,000 3,149,000
TOTAL - - 3,149,000 3,149,000
CHIEF INDUSTRIES AURORA COOP
Property Taxes - - -
TOTAL - - - -
TOKEN PROPERTIES KIMBALL ST
Property Taxes 1,299 1,299 - (1,299)
TOTAL 1,299 1,299 - (1,299)
GI HABITAT OF HUMANITY
Property Taxes - - -
TOTAL - - - -
AUTO ONE INC
Property Taxes - - -
TOTAL - - - -
EIG GRAND ISLAND
Property Taxes - - -
TOTAL - - - -
TOKEN PROPERTIES CARY ST
Property Taxes 4,150 4,150 - (4,150)
TOTAL 4,150 4,150 - (4,150)
WENN HOUSING PROJECT
Property Taxes 2,155 2,155 - (2,155)
TOTAL 2,155 2,155 - (2,155)
Grand Island Regular Meeting - 11/14/2018 Page 17 / 152
MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
October-18 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF OCTOBER 2018
COPPER CREEK 2014 HOUSES
Property Taxes 15,727 15,727 - (15,727)
TOTAL 15,727 15,727 - (15,727)
TC ENCK BUILDERS
Property Taxes 1,849 1,849 - (1,849)
TOTAL 1,849 1,849 - (1,849)
SUPER MARKET DEVELOPERS
Property Taxes - - -
TOTAL - - - -
MAINSTAY SUITES
Property Taxes - - -
TOTAL - - - -
TOWER 217
Property Taxes - - -
TOTAL - - - -
COPPER CREEK 2015 HOUSES
Property Taxes 14,247 14,247 - (14,247)
TOTAL 14,247 14,247 - (14,247)
NORTHWEST COMMONS
Property Taxes - - -
TOTAL - - - -
HABITAT - 8TH & SUPERIOR
Property Taxes - -
TOTAL - - - -
KAUFMAN BUILDING
Property Taxes - -
TOTAL - - - -
TALON APARTMENTS
Property Taxes - -
TOTAL - - - -
VICTORY PLACE
Property Taxes 40,004 40,004 (40,004)
TOTAL 40,004 40,004 - (40,004)
TOTAL REVENUE 1,089,907 1,089,907 4,379,300 3,868,394 24.89%
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MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
October-18 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF OCTOBER 2018
EXPENSES -
CRA
GENERAL OPERATIONS:
Auditing & Accounting - 3,000 3,000 0.00%
Legal Services - 3,000 3,000 0.00%
Consulting Services - 5,000 5,000 0.00%
Contract Services 4,184 4,184 75,000 70,816 5.58%
Printing & Binding - 1,000 1,000 0.00%
Other Professional Services - 16,000 16,000 0.00%
General Liability Insurance - 250 250 0.00%
Postage - 200 200 0.00%
Lifesafety Grant - 200,000 200,000 0.00%
Legal Notices 17 17 500 483 3.50%
Travel & Training - 1,000 1,000 0.00%
Office Supplies - 1,000 1,000 0.00%
Supplies - 300 300 0.00%
Land - - -
Bond Principal - Lincoln Pool - 180,000 180,000 0.00%
Bond Interest - Lincoln Pool - 17,065 17,065 0.00%
PROJECTS
Husker Harvest Days 200,000 200,000 200,000 - 100.00%
Façade Improvement - 200,000 200,000 0.00%
Building Improvement 30,000 30,000 926,000 896,000 0.00%
Other Projects - 25,000 25,000 0.00%
TOTAL CRA EXPENSES 234,201 234,201 1,854,315 1,620,114 12.63%
WALNUT HOUSING PROJECT
Bond Principal - - -
Bond Interest - - -
TOTAL - - - -
GIRARD VET CLINIC
Bond Principal - - -
TOTAL - - - -
GEDDES ST APTS - PROCON
Bond Principal - - -
TOTAL - - - -
SOUTHEAST CROSSINGS
Bond Principal - - -
TOTAL - - - -
POPLAR STREET WATER
Bond Principal - - -
TOTAL - - - -
CASEY'S @ FIVE POINTS
Bond Principal - - -
TOTAL - - - -
Grand Island Regular Meeting - 11/14/2018 Page 19 / 152
MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
October-18 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF OCTOBER 2018
SOUTH POINTE HOTEL PROJECT
Bond Principal - - -
TOTAL - - - -
TODD ENCK PROJECT
Bond Principal - - -
TOTAL - - - -
JOHN SCHULTE CONSTRUCTION
Bond Principal - - -
TOTAL - - - -
PHARMACY PROPERTIES INC
Bond Principal - - -
TOTAL - - - -
KEN-RAY LLC
Bond Principal - - -
TOTAL - - - -
TOKEN PROPERTIES RUBY
Bond Principal - - -
TOTAL - - - -
GORDMAN GRAND ISLAND
Bond Principal - - -
TOTAL - - - -
BAKER DEVELOPMENT INC
Bond Principal - - -
TOTAL - - - -
STRATFORD PLAZA LLC
Bond Principal - - -
TOTAL - - - -
COPPER CREEK 2013 HOUSES
Bond Principal - - -
TOTAL - - - -
CHIEF INDUSTRIES AURORA COOP
Bond Principal - - -
TOTAL - - - -
TOKEN PROPERTIES KIMBALL STREET
Bond Principal - - -
TOTAL - - - -
GI HABITAT FOR HUMANITY
Bond Principal - - -
TOTAL - - - -
AUTO ONE INC
Bond Principal - - -
TOTAL - - - -
Grand Island Regular Meeting - 11/14/2018 Page 20 / 152
MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
October-18 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF OCTOBER 2018
EIG GRAND ISLAND
Bond Principal - - -
TOTAL - - - -
TOKEN PROPERTIES CARY STREET
Bond Principal - - -
TOTAL - - - -
WENN HOUSING PROJECT
Bond Principal - - -
TOTAL - - - -
COPPER CREEK 2014 HOUSES
Bond Principal - - -
TOTAL - - - -
TC ENCK BUILDERS
Bond Principal - - -
TOTAL - - - -
SUPER MARKET DEVELOPERS
Bond Principal - - -
TOTAL - - - -
MAINSTAY SUITES
Bond Principal - - -
TOTAL - - - -
TOWER 217
Bond Principal - - -
TOTAL - - - -
COPPER CREEK 2015 HOUSES
Bond Principal - - -
TOTAL - - -
NORTHWEST COMMONS
Bond Principal - - -
TOTAL - - -
HABITAT - 8TH & SUPERIOR
Bond Principal - - -
TOTAL - - -
KAUFMAN BUILDING
Bond Principal - - -
TOTAL - - -
TALON APARTMENTS
Bond Principal - - -
TOTAL - - -
Grand Island Regular Meeting - 11/14/2018 Page 21 / 152
MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
October-18 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF OCTOBER 2018
VICTORY PLACE
Bond Principal - - -
TOTAL - - -
FUTURE TIF'S
Bond Principal 748,688 748,688 3,149,000 2,400,312
TOTAL 748,688 748,688 3,149,000 2,400,312
TOTAL EXPENSES 982,889 982,889 5,003,315 4,020,426 19.64%
Grand Island Regular Meeting - 11/14/2018 Page 22 / 152
11/08/2018 17:08 |CITY OF GRAND ISLAND |P 1
briansc |BALANCE SHEET FOR 2019 1 |glbalsht
NET CHANGE ACCOUNT
FUND: 900 COMMUNITY REDEVELOPMENT AUTHOR FOR PERIOD BALANCE__________________________________________________________________________________________________________
ASSETS
900 11110 OPERATING CASH 107,017.97 841,284.17
900 11120 COUNTY TREASURER CASH .00 130,439.66
900 11305 PROPERTY TAXES RECEIVABLE .00 146,501.00
900 14100 NOTES RECEIVABLE .00 229,191.06
900 14700 LAND .00 575,369.33_______________________________________
TOTAL ASSETS 107,017.97 1,922,785.22_______________________________________
LIABILITIES
900 22100 LONG TERM DEBT .00 -198,779.00
900 22400 OTHER LONG TERM DEBT .00 -1,105,000.00
900 22900 ACCRUED INTEREST PAYABLE .00 -5,880.73
900 25100 ACCOUNTS PAYABLE .00 -63,511.37
900 25315 DEFERRED REVENUE-PROPERY TAX .00 -140,461.00_______________________________________
TOTAL LIABILITIES .00 -1,513,632.10_______________________________________
FUND BALANCE
900 39110 INVESTMENT IN FIXED ASSETS .00 -575,369.33
900 39112 FUND BALANCE-BONDS .00 1,074,587.94
900 39120 UNRESTRICTED FUND BALANCE .00 -801,353.76
900 39500 REVENUE CONTROL -1,089,907.02 -1,089,907.02
900 39600 EXPENDITURE CONTROL 982,889.05 982,889.05_______________________________________
TOTAL FUND BALANCE -107,017.97 -409,153.12_______________________________________
TOTAL LIABILITIES + FUND BALANCE -107,017.97 -1,922,785.22=======================================
** END OF REPORT - Generated by Brian Schultz **
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Community Redevelopment
Authority (CRA)
Wednesday, November 14, 2018
Regular Meeting
Item D1
Bills for November 2018
Staff Contact:
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Community Redevelopment
Authority (CRA)
Wednesday, November 14, 2018
Regular Meeting
Item E1
Committed Projects and Properties
Staff Contact:
Grand Island Regular Meeting - 11/14/2018 Page 26 / 152
COMMITTED PROJECTS REMAINING
GRANT
AMOUNT
2019 FISCAL YR 2020 FISCAL YR 2021 FISCAL YR ESTIMATED
COMP
Hedde Building 201-205 W. 3rd (10-18-
17)
$ 300,000.00 $ 200,000.00 $ 100,000.00 Spring 2020
Mendez - Personal Auto (12-13-17) $ 100,000.00 $ 100,000.00 Summer 2018
Urban Island/Kinkaider 320-322 N. Pine
(10-18-17) (façade)
$ 168,677.00 $ 168,677.00 Spring 2018
Urban Island/Kinkaider 320-322 N. Pine
(10-18-17) other LS
$ 15,000.00 $ 15,000.00 Summer 2018
Total Committed $ 583,677.00 $ 483,677.00 $ 100,000.00 $ -
FIRE & LIFE SAFETY GRANT TOTAL
AMOUNT
2019 FISCAL YR 2020 FISCAL YR 2021 FISCAL YR ESTIMATED
COMP
201-203 W. 3rd St. Anson (8/24/16) $ 240,000.00 $ 240,000.00 2018
Neilsen 207 W. 3rd (3/21/18) $ 20,000.00 $ 20,000.00 Fall 2018
Old Sears Building - 4 Aparts (8/8/18) $ 80,000.00 $ 80,000.00 Summer 2019
Peaceful Root - 112 W. 2nd St. (1/11/17) $ 50,000.00 $ 50,000.00 2018
Urban Island/Kinkaider 320-322 N. Pine
(10-18-17)
$ 90,000.00 $ 90,000.00 Summer 2018
Take Flight 209 W. 3rd (11-8-17) $ 35,000.00 $ 35,000.00 Fall 2018
Total Committed F&L Safety Grant $ 515,000.00 $ 515,000.00 $ - $ -
BUDGET COMMITTED LEFT
Life Safety Budgeted 2019 $ 200,000.00 $ 25,000.00 $ 175,000.00
Façade Budgeted 2019 $ 200,000.00 $ - $ 200,000.00
Other Projects 2019 Budgeted $ 25,000.00 $ - $ 25,000.00
Land - Budgeted 2019 $ - $ - $ -
Land Sales Budgeted 2019 $ (100,000.00) $ - $ (100,000.00)
subtotal $ 25,000.00 $ 300,000.00
Less committed ($998,677.00) ($100,000.00)
Balance remaining $ (973,677.00) $ 200,000.00
BUDGET PAID LEFT
Building Improvements * $ 926,000.00 $ 30,000.00 $ 896,000.00
*Includes Life Safety, Façade, Other grants made in previous fiscal years
CRA PROPERTIES
Address Purchase Price Purchase Date Demo Cost Status
3235 S Locust (Desert Rose) $450,000 4/2/2010 $39,764 Surplus
October 31, 2018
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Community Redevelopment
Authority (CRA)
Wednesday, November 14, 2018
Regular Meeting
Item F1
Facade Improvement Grant Vogue Building 209 W. 3 Street
Staff Contact:
Grand Island Regular Meeting - 11/14/2018 Page 28 / 152
Facade Improvement Program Application
Project Redeveloper Information
I. Applicant Name:
____________________________________________________________
Address: ___________________________________________________________________
Telephone No.: _____________________________________________________________
Contact: ___________________________________________________________________
II. Legal Street Address of Project Site:
__________________________________________
III. Zoning of Project Site: _______________________________________________________
IV. Current and Contemplated Use of Project:
_____________________________________
V. Present Ownership of Project Site: ____________________________________________
VI. Proposed Project: Describe in detail; attach plans and specifications:
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
Grand Island Regular Meeting - 11/14/2018 Page 29 / 152
VII. Estimated Project Costs
Acquisition Costs:
A. Land $ ______________
B. Building $ ______________
Construction Costs:
A. Renovation or Building Costs Attributable
to Façade Improvements (attach detail): $ ______________
B. Other Construction Costs: $ ______________
VIII. Source of Financing:
A. Developer Equity: $ ______________
B. Commercial Bank Loan: $ ______________
C. Historic Tax Credits: $ ______________
D. Tax Increment Assistance: $ ______________
E. Other (Describe________________________________) $ ______________
IX. Name & Address of Architect, Engineer and General Contractor:
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
X. Project Construction Schedule:
A. Construction Start Date: _________________________________________________
B. Construction Completion Date: ___________________________________________
Grand Island Regular Meeting - 11/14/2018 Page 30 / 152
Financing Request Information
I. Describe Amount and Purpose for Which Façade Improvement Program Funds are
Requested: _________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
II. Statement Identifying Financial Gap and Necessity for use of Façade
Improvement Program Funds or Proposed Project:
__________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
III. Application of Grant Funds:
_____________________________ Grant to Redeveloper; or
_____________________________ Interest Rate Buy-Down
Post Office Box 1968
Grand Island, Nebraska 68802-1968
Phone: 308 385-5240
Fax: 308 385-5423
Email: cnabity@grand-island.com
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Community Redevelopment
Authority (CRA)
Wednesday, November 14, 2018
Regular Meeting
Item F2
Facade Improvement Grant Bosselman Real Estate LLC 1607 S.
Locust (South End of Building)
Staff Contact:
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Grand Island Regular Meeting - 11/14/2018 Page 41 / 152
Community Redevelopment
Authority (CRA)
Wednesday, November 14, 2018
Regular Meeting
Item H1
Redevelopment Contract for Grand Island Hotels LLC
Staff Contact:
Grand Island Regular Meeting - 11/14/2018 Page 42 / 152
Grand Island Hotel
Grand Island Hotel, LLC
REDEVELOPMENT CONTRACT
This Redevelopment Contract is made and entered into as of the _______day of
___________, 2018, by and between the Community Redevelopment Authority of the City of
Grand Island, Nebraska ("Authority"), and Grand Island Hotel, 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 #2 August 2018" (the "Redevelopment Plan");
WHEREAS, Authority and Redeveloper desire to enter into this Redevelopment Contract
in order to implement the Redevelopment Plan and provide for the redevelopment of lots and
lands located in a blighted and substandard area;
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
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.
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Grand Island Hotel
"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.
"Holder(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 the Authority's Tax Increment Development Revenue Note (Grand
Island Hotel Project), Series 2018, to be issued in an amount not to exceed $1,824,179 in
substantially the form set forth on Exhibit C and purchased by the Redeveloper 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.
"Project" means the improvements to the Redevelopment Project Area, as further
described in Exhibit B attached hereto and incorporated herein by reference and, as used herein,
shall include the Redevelopment Project Property and additions and improvements thereto.
"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 (g), inclusive, including the providing for such costs by the
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 acquisition, planning, site preparation, utility extension,
lighting, permitting, engineering, all improvements related to Project public infrastructure costs,
costs of the Authority for legal and plan preparation, all as described in Section 3.04 of this
Redevelopment Contract.
"Redeveloper" means Grand Island Hotel, LLC, a Nebraska limited liability company.
"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 A 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.
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Grand Island Hotel
"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
A 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 B, 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 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
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.
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Grand Island Hotel
(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
(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.
(iii) the Authority has received documentation from the Redeveloper
that it is not economically feasible to undertake the project without tax-
increment financing provided pursuant to §18-2147 of the Act.
(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
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Grand Island Hotel
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 by-laws, 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
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.
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Grand Island Hotel
(e) The Project would not occur in the Redevelopment Project Area without the
use of tax-increment financing.
(f) The Redeveloper has not filed and does not intend to file an application with
the Department of Revenue to receive tax incentives under the Nebraska Advantage Act
related to a project in the redevelopment project area. In as much as no such application
has been filed, none has been approved.
(g) No application has been filed with the Department of Revenue requesting a
refund of any local option sales tax.
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 (the “Effective Date”), as described in Section 18-2147 (1) of the
Act, which Effective Date shall be the January 1, 2020. Said taxes shall be divided as follows:
(a) That portion of the ad valorem tax on the real estate located in the
Redevelopment Project Area 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 Redevelopment Project Area 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 Area in excess of such amount (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 "Note Fund") to pay the principal of, the
interest on, and any premium due in connection with the Indebtedness. When such
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 Phase shall be paid into the funds of the respective public bodies.
Section 3.02 Issuance of Indebtedness
The Authority shall authorize the issuance of the Indebtedness 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 stated face amount
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Grand Island Hotel
of 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.
Prior to March 1, 2019, the Authority shall issue one Tax Increment Development
Revenue Note, in one taxable series, in a maximum principal amount of One Million Eight
Hundred Twenty Four Thousand One Hundred Seventy Nine and no/100 Dollars ($1,824,179),
in substantially the form shown on the attached Exhibit C (“TIF Note”), for net funds available
to be purchased by Redeveloper (“TIF Note Purchaser”), in a written form acceptable to
Authority’s attorney, and receive Note proceeds 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 Note. 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 the Indebtedness and all the other
necessary details of the Indebtedness.
The Redeveloper 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 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
will be includable in gross income for federal income tax purposes and subject to Nebraska State
income taxation.
Section 3.03 Pledge of Revenues.
Under the terms of the Resolution, the Authority pledges 100% of the available annual
TIF Revenues derived from the Redevelopment Project Property as security for and to provide
payment of the Indebtedness as the same fall due (including payment of any mandatory
redemption amounts set for the Indebtedness in accordance with the terms of the Resolution).
Section 3.04 Purchase and Pledge of Indebtedness/Grant of Net Proceeds of Indebtedness.
The Redeveloper has agreed 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 the costs of site acquisition, demolition and
rehabilitation expenditures, all improvements related to Project public infrastructure costs, site
preparation costs, utility extensions and costs of the Authority for legal and plan preparation
including those items described on Exhibit D (the "Project Costs"), in the aggregate maximum
amount not to exceed $1,824,179. Notwithstanding the foregoing, the aggregate amount of the
Indebtedness and the grant shall not exceed the amount of Project Costs as certified pursuant to
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Grand Island Hotel
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:
(a) a special trust fund called the “Grand Island Hotel Redevelopment Project Note Fund” (the
“Note Fund”). All of the TIF Revenues shall be deposited into the Note Fund. The TIF Revenues
accumulated in the 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 Note to the extent of any
money then remaining the Note Fund on such Interest Payment Date. Money in the Note Fund shall
be used solely for the purposes described herein and in the Resolution. All Revenues received
through and including December 31, 2035 shall be used solely for the payments required herein and
by the Resolution; and
(b) a special trust fund called the “Grand Island Hotel Redevelopment Project Fund” (the
“Project Fund”) The Authority shall disburse any money on deposit in the 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
Project Fund at the time of the receipt by the Authority of such request, the Authority shall notify
the owner of the 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 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 Note.
ARTICLE IV
OBLIGATIONS OF REDEVELOPER
Section 4.01 Construction of Project; Note; Insurance.
(a) Redeveloper will acquire the Project, demolish and rehabilitate structures on the site,
prepare the site for redevelopment, install all required utilities and improvements in the public
right-of-way in accordance with the plans and specifications provided to the Authority.
Redeveloper will coordinate with the City for the City’s design and construction required for the
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installation of all public infrastructure improvements and right-of-way improvements. The
Redeveloper shall provide and pay for infrastructure installation.
Redeveloper shall pay for the costs of site acquisition, site preparation, demolition and
rehabilitation, utility extension, public infrastructure and costs of the Authority as set forth on
Exhibit D, from the grant provided in Section 3.04 hereof. Redeveloper shall be solely
responsible for obtaining all permits and approvals necessary to acquire, construct and equip the
Project. Until construction of the Project has been completed, Redeveloper shall 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.
(b) Any general contractor chosen by the Redeveloper shall be required 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 and a penal bond as required by the Act or
as is otherwise required by law. 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.
(c) Notwithstanding any provision herein to the contrary, in the event Redeveloper has
not acquired fee simple title to the Redevelopment Project Area on or before February 1, 2018,
this Redevelopment Contract shall be null and void and of no force or effect effective as of the
date of execution hereof, and neither party shall have any liability or obligation to the other party
with respect hereto.
(d) The Redeveloper shall provide a payment and performance bond from a bond company
doing business in the state of Nebraska in the total amount of all Redevelopment Project Costs or
such other amount as shall be approved by the Authority. The City and Authority shall be named
as beneficiaries under such bond.
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, (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.
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(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 Note of any amounts allocated to the Note.
(c) Upon notification from the Authority as described in Section 4.02(b), deposits to the
accounts in the Project Fund may be made from time to time from funds received by the Authority
from the owner of the 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 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.
At the option of the Redeveloper, if the Redeveloper is the owner of the 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 from Note proceeds
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 Note. The aggregate amount deposited into the Project Fund from
proceeds of the Note shall not exceed $1,824,179.
(d) Redeveloper shall retain copies of all supporting documents that are associated
with the redevelopment plan or redevelopment project and that are received or generated by the
Redeveloper for three years following the end of the last fiscal year in which ad valorem taxes
are divided and provide such copies to the city as needed to comply with the city’s retention
requirements under section 18-2117.04 of the Act. For purposes of this subsection, supporting
document includes any cost-benefit analysis conducted pursuant to section 18-2113 of the Act
and any invoice, receipt, claim, or contract received or generated by the redeveloper that
provides support for receipts or payments associated with the division of taxes.
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
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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.
Section 4.50 Payment of Authority Costs.
Redeveloper shall pay to the Authority the following sums upon execution hereof:
a. $3,500 for legal expenses of Authority.
b. $1,000 for City and Authority administrative accounting of incremental tax payments.
ARTICLE V
FINANCING REDEVELOPMENT PROJECT; ENCUMBRANCES
Section 5.01 Financing
Redeveloper shall pay all costs related to the redevelopment of the Redevelopment Project
Area and the Redevelopment Project Property which are in excess of the amounts paid from the
proceeds of the grant provided from the proceeds of the Indebtedness and granted to
Redeveloper. Redeveloper shall timely pay all costs, expenses, fees, charges and other amounts
associated with the Project.
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
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 and by complying with the obligations of all Redevelopment
Contract Amendments.
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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 commence the
construction of the improvements included in the Project Costs on or before June 1, 2019,
or shall abandon construction work related to the Project Costs, once commenced, for any
period of 180 days, excepting delays caused by inclement weather,
(b) the Redeveloper, shall fail to pay real estate taxes or assessments on the
Redevelopment Project Property owned by the Redeveloper or any part thereof when due;
and
(c) there is a violation of any other provision of this Redevelopment Contract,
and such failure or action by the Redeveloper has not been cured within 90 days following
written notice from Authority, then the Redeveloper shall be in default of this
Redevelopment Contract.
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.
Interest shall accrue on the Liquidated Damages Amount at the rate of nine percent (9%)
per annum and interest shall commence from 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). In
addition, the Redeveloper shall provide a penal bond with good and sufficient surety to be
approved by the Authority, conditioned that the Redeveloper shall at all times promptly make
payments of all amounts lawfully due to all persons supplying or furnishing to any contractor or
his or her subcontractors (for each contract entered into by Redeveloper related to Project Costs)
with labor or materials performed or used in the prosecution of the work provided for in such
contract, and will indemnify and save harmless the Authority to the extent of any payments in
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connection with the carrying out of such contracts which the Authority may be required to make
under the law.
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
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.
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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
activities of the Redeveloper or its agents during the construction of the public infrastructure or
public right of ways in the Project.
ARTICLE VII
MISCELLANEOUS
Section 7.01 Notice Recording.
This Redevelopment Contract or 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:
Grand Island Hotel, LLC
3436 South Locust Street
Grand Island, NE 68801
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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 2018, 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
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Grand Island Hotel, LLC
By:______________________
Manager
STATE OF NEBRASKA )
) SS
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of _____,2018, by
__________________________, Manager of Grand Island Hotel, LLC, on behalf of the limited
liability company.
________________________
Notary Public
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EXHIBIT A
DESCRIPTION OF REDEVELOPMENT AREA
Lot 1 of Kings Crossing Subdivision to the City of Grand Island, Hall County, Nebraska.
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EXHIBIT B
REDEVELOPMENT PLAN
[Attach copy of Redevelopment Plan Amendment]
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EXHIBIT C
(FORM OF 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
(GRAND ISLAND HOTEL REDEVELOPMENT PROJECT), SERIES 2018
No. R-1 Up to $1,824,179
(subject to reduction as described herein)
Date of Date of Rate of
Original Issue Maturity Interest
December 31, 2035 0.0%
REGISTERED OWNER: Grand Island Hotel, LLC
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.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA
[S E A L]
By: (manual signature)
Chairman
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Grand Island Hotel
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, 2021, 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 __________2018, 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
$1,824,179.
This Note is a special limited obligation of the Authority payable as to principal and
interest solely from and is secured solely by the Revenue (as defined in the Resolution) and certain
other money, funds and securities pledged under the Resolution, all on the terms and conditions set
forth in the Resolution. The Revenue represents that portion of ad valorem taxes levied by public
bodies of the State of Nebraska, including the City, on real property in the Project Area (as defined
in this 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 Project Area 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.
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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 Revenues and other
funds pledged under the Resolution, which 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 Revenue and other money and securities pledged to the payment of the 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
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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 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
GRAND ISLAND HOTEL REDEVELOPMENT PROJECT
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2018
Date
Principal
Amount
Advanced
Principal
Amount
Redeemed
Cumulative
Outstanding
Principal
Amount
Notation
Made
By
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Exhibit D
Project Costs
Redevelopment Project Costs
1. Site acquisition $ 656,000
2. Site preparation $ 171,000
3. Utility extensions $ 315,700
4. Planning & engineering $ 153,090
5. Paving public & private streets $ 432,119
6. Legal & financial $ 59,022
7. Permitting $ 37,248
Total $1,824,179
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Redevelopment Plan Amendment
Grand Island CRA Area 2
August 2018
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area 2 within the city, pursuant to
the Nebraska Community Development Law (the “Act”) and provide for the
financing of a specific housing related project in Area 2.
Executive Summary:
Project Description
THE ACQUISITION OF PROPERTY AT 3400 S LOCUST STREET AND THE
SUBSEQUENT SITE WORK, UTILITY IMPROVEMENTS, STREET
IMPROVEMENTS, ENGINEERING, LANDSCAPING AND PARKING
IMPROVEMENTS NECESSARY FOR DEVELOPMENT OF THIS PROPERTY INTO
FOUR COMMERCIAL LOTS INTENDED FOR A 79 ROOM COMFORT INN
SUITES AND THREE COMMERCIAL LOTS.
The use of Tax Increment Financing (TIF) to aid in the acquisition of property, necessary
site work and installation of public utilities and utility connections and street and
drainage improvements necessary to develop this site. The use of TIF makes it feasible to
complete the proposed project within the timeline presented. This project would not be
considered at this time and location without the use of TIF. Financing for the project is
contingent on TIF
The acquisition, 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, 2020 towards the allowable costs and associated financing for the acquisition
and site work.
TAX INCREMENT FINANCING TO PAY FOR THE ACQUISTION OF THE
PROPERTY AND RELATED SITE WORK WILL COME FROM THE
FOLLOWING REAL PROPERTY:
Property Description (the “Redevelopment Project Area”)
This property is located between Locust Street on the east and Tri Street on the west and
between Lake Street on the south and U.S. Highway 34 (Husker Highway) on the north
in southern Grand Island, the attached map identifies the subject property and the
surrounding land uses:
Legal Description Lot 1 of Kings Crossing Subdivision in the City of
Grand Island, Hall County Nebraska
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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 2020 through 2034
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 increase will come from the construction of new
commercial space on this property.
Statutory Pledge 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 identified from time to time by the Redeveloper (such Lot
or Lots being referred to herein as a "Phase") as identified in a written notice from the
Redeveloper to the Authority (each, a "Redevelopment Contract Amendment Notice") 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 Amendment Notice and
reflected in a Redevelopment Contract Amendment, 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.
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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 September 13, 1999.[§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 (26)
(a) and §18-2110]
Grand Island adopted a Comprehensive Plan on July 13, 2004. This redevelopment plan
amendment and project are consistent with the Comprehensive Plan, in that no changes in
the Comprehensive Plan elements are intended. This plan merely provides funding for
the developer to acquire the necessary property and provide the necessary site work,
utilities and street improvements needed for the construction of a permitted use on this
property. The Hall County Regional Planning Commission held a public hearing at their
meeting on October 3, 2018 and passed Resolution 2019-01 confirming that this project
is consistent with the Comprehensive Plan for the City of Grand Island.
3. The Redevelopment Plan must be sufficiently complete to address the following
items: [§18-2103(26) (b)]
a. Land Acquisition:
The Redevelopment Plan for Area 2 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. It is
further anticipated that the owner will sell a portions of this property to other entities for
further development..
b. Demolition and Removal of Structures:
The project to be implemented with this plan will not require demolition of any existing
structures. Structures on this site were demolished more than 10 years ago and the
property has been sitting undeveloped since that time.
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 B2 General Business zone. No zoning changes are necessary though
the owners may wish to rezone this to a commercial development zone to facilitate the
development of the property. No changes are anticipated in street layouts or grades.
Lake Street will be paved at least as far as the intersection with Knott Avenue. 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 build a 79 room hotel one lot at the southwest corner of the
property. A three other lots with frontage onto U.S. Highway 34 and Locust Street will
also be created and made available for sale. The proposed development will be limited to
either the 50% building coverage allowed in the CD zone or 65% coverage allowed in the
B2 zoning district. [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. Connections for water and
sewer will have to be extended to serve these lots.
The developer will be responsible for replacing any sidewalks damaged during
construction of the project.
No other utilities would be impacted by the development. [§18-2103(b) and §18-2111]
4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation. This 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 is proposing to purchase this property for redevelopment for $656,000
provided that TIF is available for the project as defined. The cost of property acquisition
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is being included as a TIF eligible expense. Costs for site preparation including, grading
and fill is estimated at $171,000. Utility extensions, storm water, sewer electrical and
water are estimated at $315,700, Building plans and engineering are expected to cost
$153,090. The cost to pave Lake Street and the private drive from U.S. Highway 34 is
$432,119. An additional $59,022 of expenses for legal work, fees and financial tracking
of this project are also included as eligible expenses for a total maximum TIF request of
$1,824,179. It is estimated based on the proposed increased valuation to $6,097,813 will
result in $1,920,000 of increment generated over a 15 year period. This project should
pay off prior to the end of the 15 year bond period..
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 not less than $1,824,179 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. 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 according to the approved
contract. Based on current estimates this $1,824,179 of TIF will generate $1,281,538 to
be invested in the project.
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.
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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 vacant property at this location. This lot is
surrounded located at a major intersection is south east Grand Island. The property has
been within a blighted area for more than 20 years and has been vacant for more than 10
years without development. This will have the intended result of preventing recurring
elements of unsafe buildings and blighting conditions.
8. Time Frame for Development
Development of this project is anticipated to be completed between October of 2018 and
December of 2019. Excess valuation should be available for this project for 15 years
beginning with the 2020 tax year.
9. Justification of Project
This is infill development in an area with all city services available. It was anticipated by
many that this area of the community would flourish after the Locust Street interchange
from I-80 opened and Wal-Mart built at one corner of this intersection in 2004. Since
that that time there has been very little change in the area. Proposed projects like this one
and the housing project to the north and east area likely to spur the development that was
expected 12 years ago.
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 Wild
Bills Fun Center Project, including:
Project Sources and Uses. A minimum of $1,824,179 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
$6,236,000 in private sector financing and investment; a private investment of $3.41 for
every TIF dollar investment. It is estimated this will pay off in slightly less than 15
years.
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Use of Funds. Source of Funds
Description TIF Funds Private Funds Total
Site Acquisition $656,000 $656,000
Site preparation/Dirt Work $171,000 $171,000
Paving Lake Street and Private Drive $432,119 $432,119
Utilities, Storm, Sewer, Water, Parking Lot
Drive Lanes $315,700 $315,700
Permitting $37,248 $37,248
Financing Fees and Closing Cost SBA Loan $50,922 $174,079 $225,000
Legal and Plan $8,100 $8,100
Architecture/Engineering/Permitting $153,090 $153,090
Building Costs $5,011,995 $5,011,995
Franchise Fees $45,000 $45,000
Insurance During Development $35,000 $35,000
Personal Property $970,000 $970,000
TOTALS $1,824,179 $6,236,074 $8,060,252
Tax Revenue. The property to be redeveloped is has a January 1, 2018, valuation of
approximately $184,087. Based on the 2017 levy this would result in a real property tax of
approximately $3,985. It is anticipated that the assessed value will increase by $5,913,726 upon
full completion, as a result of the site redevelopment. This development will result in an
estimated tax increase of over $128,006 annually resulting in approximately $1,920,000 of
increment over the 15 year period. 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 2015 assessed value: $ 184,087
Estimated value after completion $ 6,097,813
Increment value $ 5,913,726
Annual TIF generated (estimated) $ 128,006
TIF bond issue $ 1,824,179
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $184,087.
The proposed extension improvements at this location will result in at least an additional
$5,913,726 of taxable valuation based on the Hall County Assessor’s office evaluation of
the project. 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. The project
will not add any tax burdens to taxing entities. Therefore no tax shifts will occur.
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(b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
No additional public service needs have been identified. Existing water and waste
water facilities will not be impacted by this development. The electric utility has
sufficient capacity to support the development. It is not anticipated that this will impact
schools. Fire and police protection are available and should not be impacted by this
development.
(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
The proposed uses at this site would compete for entry level and part time positions along
with similar travel and entertainment type businesses located in and locating in the City.
(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 is a new hotel along the entrance to Grand Island and the Nebraska State Fair
Grounds. This additional hotel will increase the number of rooms available in Grand
Island and may result in lower occupancy rates for older hotels in the region. The Grand
Island City Council and CRA have approved several TIF project that include building or
renovating hotels in the area including some hotels neighboring this property, Mainstay
Suites, Best Western and Borders Hotel to the north all received TIF to facilitate their
projects.. Two of the hotel projects that have been approved, one on Locust Street and
State Fair Boulevard and one at U.S. Highway 34 and U.S. Highway 281 have not been
built yet.
(e) Impacts on the student population of school districts within the city or village;
and
This project including a hotel for transient population and visitors to the region and 3
commercial lots for sale is unlikely to create any direct increase in cost for schools in the
the area.
(f) Any other impacts determined by the authority to be relevant to the
consideration of costs and benefits arising from the redevelopment project.
This project will utilize a piece of property in the Grand Island City Limits that has been
vacant for at least more than 10 years. This corner was included in one of the original
blight studies for the City of Grand Island because of the development that was located
here and because it is a highly visible entrance corner. These facilities will complement
Fonner Park, the State Fair Grounds, Heartland Event Center, Island Oasis, and similar
civic tourist draws.
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Time Frame for Development
Development of this project is anticipated to be completed during between March 2019
and February of 2020. The base tax year should be calculated on the value of the
property as of January 1, 2019. Partial excess valuation should be available for this
project for 15 years beginning with the 2020 tax year with the full valuation available for
the 2021 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. Based on the purchase price of the property and estimates of the expenses of
utilities, streets and site preparation activities and associated engineering/design fees, the
developer will spend upwards of $1,824,179 on TIF eligible activities. The full amount
of TIF generated over a 15 year period would be $1,920,000 so this request will pay off
slightly before the end of the 15 year period with no additional increases in valuation or
tax levies.
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Wing Properties
COMMUNITY REDEVELOPMENT AUTHORITY OF
THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 285
A RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF A
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA, TAX INCREMENT DEVELOPMENT REVENUE NOTE
OR OTHER OBLIGATION, IN A PRINCIPAL AMOUNT NOT TO EXCEED
$1,824,179 FOR THE PURPOSE OF (1) PAYING THE COSTS OF ACQUIRING,
DEMOLISHING, CONSTRUCTING, RECONSTRUCTING, IMPROVING,
EXTENDING, REHABILITATING, INSTALLING, EQUIPPING, FURNISHING
AND COMPLETING CERTAIN IMPROVEMENTS WITHIN THE
AUTHORITY’S GRAND ISLAND HOTEL, LLC, REDEVELOPMENT PROJECT
AREA, SPECIFICALLY INCLUDING SITE PURCHASE, PREPARATION,
DEMOLITION, REHABILITATION, UTILITY EXTENSION AND (2) PAYING
THE COSTS OF ISSUANCE THEREOF; PRESCRIBING THE FORM AND
CERTAIN DETAILS OF THE NOTE OR OTHER OBLIGATION; PLEDGING
CERTAIN TAX REVENUE AND OTHER REVENUE TO THE PAYMENT OF
THE PRINCIPAL OF AND INTEREST ON THE NOTE OR OTHER
OBLIGATION AS THE SAME BECOME DUE; LIMITING PAYMENT OF THE
NOTE OR OTHER OBLIGATION TO SUCH TAX REVENUES; CREATING AND
ESTABLISHING FUNDS AND ACCOUNTS; DELEGATING, AUTHORIZING
AND DIRECTING THE FINANCE DIRECTOR TO EXERCISE HIS OR HER
INDEPENDENT DISCRETION AND JUDGMENT IN DETERMINING AND
FINALIZING CERTAIN TERMS AND PROVISIONS OF THE NOTE OR OTHER
OBLIGATION NOT SPECIFIED HEREIN; APPROVING A REDEVELOPMENT
CONTRACT AND REDEVELOPMENT PLAN; TAKING OTHER ACTIONS AND
MAKING OTHER COVENANTS AND AGREEMENTS IN CONNECTION WITH
THE FOREGOING; AND RELATED MATTERS.
BE IT RESOLVED BY THE MEMBERS OF THE COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA:
ARTICLE I
FINDINGS AND DETERMINATIONS
Section 1.1. Findings and Determinations. The Members of the Community Redevelopment
Authority of the City of Grand Island, Nebraska (the “Authority”) hereby find and determine as follows:
(a) The City of Grand Island, Nebraska (the “City”), pursuant to the Plan Resolution
(hereinafter defined), approved the City of Grand Island Redevelopment Area #2 Plan Amendment August
2018 (the “Redevelopment Plan”) under and pursuant to which the Authority shall undertake from time to
time to redevelop and rehabilitate the Redevelopment Area (hereinafter defined).
(b) Pursuant to the Redevelopment Plan, the Authority has previously obligated itself and/or
will hereafter obligate itself to provide a portion of the financing to acquire, construct, reconstruct, improve,
extend, rehabilitate, install, equip, furnish and complete, at the cost and expense of the Redeveloper, a
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portion of the improvements (as defined in the Redevelopment Contract hereinafter identified) in the
Redevelopment Area (the “Project Costs”), including, without limitation) the cost of acquiring,
constructing, reconstructing, improving, extending, rehabilitating, installing, and completing the acquisition
of the Project Site (as defined in the Redevelopment Contract), (collectively, the “Project”), as more fully
described in the Redevelopment Contract (hereinafter defined).
(c) The Authority is authorized by the Redevelopment Law (hereinafter defined) to issue tax
allocation notes for the purpose of paying the costs and expenses of the Project, the principal of which is
payable from certain tax revenues as set forth in the Redevelopment Law.
(d) In order to provide funds to pay a portion of the costs of the Project, it is necessary,
desirable, advisable, and in the best interest of the Authority for the Authority to issue a Tax Increment
Development Revenue Note or other obligation in a principal amount not to exceed $1,824,179 (the
“Note”).
(e) All conditions, acts and things required to exist or to be done precedent to the issuance of
the Note do exist and have been done as required by law.
ARTICLE II
CERTAIN DEFINITIONS; COMPUTATIONS;
CERTIFICATES AND OPINIONS; ORDERS AND DIRECTIONS
Section 2.1. Definitions of Special Terms. Unless the context clearly indicates some other
meaning or may otherwise require, and in addition to those terms defined elsewhere herein, the terms
defined in this Section 2.1 shall, for all purposes of this Resolution, any Resolution or other instrument
amendatory hereof or supplemental hereto, instrument or document herein or therein mentioned, have the
meanings specified herein, with the following definitions to be equally applicable to both the singular and
plural forms of any terms defined herein:
“Authority” means the Community Redevelopment Authority of the City of Grand Island,
Nebraska.
City” means the City of Grand Island, Nebraska.
“Project Costs” means the redevelopment project costs (as defined in the Redevelopment
Contract) in the Redevelopment Area, the costs of which are eligible to be paid from the proceeds of the
Note.
“Assessor” means the Assessor of Hall County, Nebraska.
“Note” means the Grand Island Hotel, LLC, Redevelopment Project Tax Increment Development
Revenue Note of the Authority, in a principal amount not to exceed $1,824,179, issued pursuant to this
Resolution, and shall include any note, including refunding note, interim certificate, debenture, or other
obligation issued pursuant to the Redevelopment Law. At the option of the Owner of the Note, the titular
designation of such Note may be revised to state note, interim certificate, debenture, obligation, or such
other designation as is appropriate.
“Secretary” means the Secretary of the Authority.
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“Cumulative Outstanding Principal Amount” means the aggregate principal amount of the Note
issued and Outstanding from time to time in accordance with the provisions of this Resolution, as reflected
in the records maintained by the Registrar as provided in this Resolution.
“Date of Original Issue” means the date the Note is initially issued, which shall be the date of the
first allocation of principal on the Note as further described in Section 3.2.
“Debt Service” means, as of any particular date of computation, and with respect to any period, the
amount to be paid or set aside as of such date or such period for the payment of the principal on the Note.
“Escrow Obligations” means (a) Government Obligations, (b) certificates of deposit issued by a
bank or trust company which are (1) fully insured by the Federal Deposit Insurance Corporation or similar
corporation chartered by the United States or (2) secured by a pledge of any Government Obligations having
an aggregate market value, exclusive of accrued interest, equal at least to the principal amount of the
certificates so secured, which security is held in a custody account by a custodian satisfactory to the
Registrar, or (c)(1) evidences of a direct ownership in future interest or principal on Government
Obligations, which Government Obligations are held in a custody account by a custodian satisfactory to the
Registrar pursuant to the terms of a custody agreement in form and substance acceptable to the Registrar and
(2) obligations issued by any state of the United States or any political subdivision, public instrumentality or
public authority of any state, which obligations are fully secured by and payable solely from Government
Obligations, which Government Obligations are held pursuant to an agreement in form and substance
acceptable to the Registrar and, in any such case, maturing as to principal and interest in such amounts and
at such times as will insure the availability of sufficient money to make the payment secured thereby.
“Finance Director” means the Treasurer/Finance Director or Acting Treasurer/Finance Director, as
the case may be, of the City.
“Fiscal Year” means the twelve-month period established by the City or provided by law from
time to time as its fiscal year.
“Government Obligations” means direct obligations of, or obligations the principal of and interest
on which are unconditionally guaranteed by, the United States of America.
“Improvements” means the improvements to be constructed, reconstructed, acquired, improved,
extended, rehabilitated, installed, equipped, furnished and completed in the Project Area in accordance with
the Redevelopment Plan, including, but not limited to, the improvements constituting the Project (as defined
in the Redevelopment Contract).
“Payment Date” means June 30 and December 31 of each year any Note is outstanding,
commencing on the first Payment Date following the Date of Original Issue.
“Chairman” means the Chairman of the Authority.
“Outstanding” means when used with reference to any Note, as of a particular date, all Notes
theretofore authenticated and delivered under this Resolution except:
(a) Notes theretofore canceled by the Registrar or delivered to the Registrar for
cancellation;
(b) Notes which are deemed to have been paid in accordance with Section 10.1
hereof;
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(c) Notes alleged to have been mutilated, destroyed, lost or stolen which have been
paid as provided in Section 3.9 hereof; and
(d) Notes in exchange for or in lieu of which other Notes have been authenticated
and delivered pursuant to this Resolution.
“Owner” means the person(s) identified as the owner(s) of the Note from time to time, as indicated
on the books of registry maintained by the Registrar.
“Plan Resolution” means, Resolution No. ___________ of the City, together with any other
resolution providing for an amendment to the Redevelopment Plan.
“Project Area” means the area identified and referred to as the Project Site in the Redevelopment
Contract.
“Record Date” means, for each Payment Date, the 15th day immediately preceding such Payment
Date.
“Redeveloper” means the Redeveloper as defined in the Redevelopment Contract responsible for
constructing, reconstructing, acquiring, improving, extending, rehabilitating, installing, equipping,
furnishing and completing the Project.
“Redeveloper Note” means any Note that is owned by the Redeveloper according to the records of
the Registrar.
“Redevelopment Contract” means the City of Grand Island Redevelopment Contract Grand
Island Hotel, LLC, Redevelopment Project, dated the date of its execution, between the Authority, and
Grand Island Hotel, LLC, a Nebraska limited liability company, relating to the Project.
“Redevelopment Area” means the community redevelopment area described, defined or otherwise
identified or referred to in the Redevelopment Plan.
“Redevelopment Law” means Article VIII, Section 12 of the Constitution of the State and Chapter
18, Article 21, Reissue Revised Statutes of Nebraska, as amended.
“Redevelopment Plan” means the “City of Grand Island Redevelopment Plan Amendment for
Redevelopment Area #2 August 2018” passed, adopted and approved by the City pursuant to the Plan
Resolution, and shall include any amendment of such Redevelopment Plan heretofore or hereafter made
by the City pursuant to law.
“Refunding Notes” means the notes authorized to be issued pursuant to Article V.
“Registrar” means the Treasurer of the City of Grand Island, Nebraska, in its capacity as registrar
and paying agent for the Note.
“Resolution” means this Resolution as from time to time amended or supplemented.
“Revenue” means the Tax Revenue.
“Special Fund” means the fund by that name created in Section 7.1.
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“State” means the State of Nebraska.
“Tax Revenue” means, with respect to the Project Area, (a) those tax revenues referred to (1) in the
last sentence of the first paragraph of Article VIII, Section 12 of the Constitution of the State and (2) in
Section 18-2147, Reissue Revised Statutes of Nebraska, as amended, and (b) all payments made in lieu
thereof.
“Treasurer” means the Treasurer of Hall County, Nebraska.
Section 2.2. Definitions of General Terms. Unless the context clearly indicates otherwise or may
otherwise require, in this Resolution words importing persons include firms, partnerships, associations,
limited liability companies (public and private), public bodies and natural persons, and also include
executors, administrators, trustees, receivers or other representatives.
Unless the context clearly indicates otherwise or may otherwise require, in this Resolution the terms
“herein,” “hereunder,” “hereby,” “hereto,” “hereof” and any similar terms refer to this Resolution as a whole
and not to any particular section or subdivision thereof.
Unless the context clearly indicates otherwise or may otherwise require, in this Resolution: (a)
references to Articles, Sections and other subdivisions, whether by number or letter or otherwise, are to the
respective or corresponding Articles, Sections or subdivisions of this Resolution as such Articles, Sections,
or subdivisions may be amended or supplemented from time to time; and (b) the word “heretofore” means
before the time of passage of this Resolution, and the word “hereafter” means after the time of passage of
this Resolution.
Section 2.3. Computations. Unless the facts shall then be otherwise, all computations required for
the purposes of this Resolution shall be made on the assumption that the principal on the Note shall be paid
as and when the same become due.
Section 2.4. Certificates, Opinions and Reports. Except as otherwise specifically provided in
this Resolution, each certificate, opinion or report with respect to compliance with a condition or covenant
provided for in this Resolution shall include: (a) a statement that the person making such certificate, opinion
or report has read the pertinent provisions of this Resolution to which such covenant or condition relates; (b)
a brief statement as to the nature and scope of the examination or investigation upon which the statements or
opinions contained in such certificate, opinion or report are based; (c) a statement that, in the opinion of
such person, he has made such examination and investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been complied with; (d) a statement as
to whether or not, in the opinion of such person, such condition or covenant has been complied with; and (e)
an identification of any certificates, opinions or reports or other sources or assumptions relied on in such
certificate, opinion or report.
Section 2.5. Evidence of Action by the Authority. Except as otherwise specifically provided in
this Resolution, any request, direction, command, order, notice, certificate or other instrument of, by or from
the City or the Authority shall be effective and binding upon the Authority, respectively, for the purposes of
this Resolution if signed by the Chairman, the Vice Chairman, the Secretary, the Treasurer, the Finance
Director, the Planning Director or by any other person or persons authorized to execute the same by statute,
or by a resolution of the City or the Authority, respectively.
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ARTICLE III
AUTHORIZATION AND ISSUANCE OF THE NOTE;
GENERAL TERMS AND PROVISIONS
Section 3.1. Authorization of Note. Pursuant to and in full compliance with the Redevelopment
Law and this Resolution, and for the purpose of providing funds to pay (a) the cost of acquiring,
constructing, reconstructing, improving, extending, rehabilitating, installing, equipping, furnishing, and
completing the Project, and (b) the costs of issuing the Note, the Authority shall issue the Note in a principal
amount not to exceed $1,824,179. The Note shall be designated as “Community Redevelopment Authority
of the City of Grand Island, Nebraska, Grand Island Hotel, LLC, Redevelopment Project Tax Increment
Development Revenue Note,” shall have an appropriate series designation as determined by the Finance
Director, shall be dated the Date of Original Issue, shall mature, subject to right of prior redemption, not
later than the December 31, 2035, and shall bear interest at an annual rate of 0.00%. The Note shall be
issued as a single Note as further described in Section 3.2.
The Note is a special, limited obligation of the Authority payable solely from the Revenue and the
amounts on deposit in the funds and accounts established by this Resolution. The Note shall not in any
event be a debt of the Authority (except to the extent of the Revenue and other money pledged under this
Resolution), the State, nor any of its political subdivisions, and neither the Authority (except to the extent of
the Revenue and other money pledged under this Resolution), the City, the State nor any of its political
subdivisions is liable in respect thereof, nor in any event shall the principal of or interest on the Note be
payable from any source other than the Revenue and other money pledged under this Resolution. The Note
does not constitute a debt within the meaning of any constitutional, statutory, or charter limitation upon the
creation of general obligation indebtedness of the Authority and does not impose any general liability upon
the Authority. Neither any official of the Authority nor any person executing the Note shall be liable
personally on the Note by reason of its issuance. The validity of the Note is not and shall not be dependent
upon the completion of the Project or upon the performance of any obligation relative to the Project.
The Revenue and the amounts on deposit in the funds and accounts established by this Resolution
are hereby pledged and assigned for the payment of the Note, and shall be used for no other purpose than to
pay the principal of or interest on the Note, except as may be otherwise expressly authorized in this
Resolution. The Note shall not constitute a debt of the Authority or the City within the meaning of any
constitutional, statutory, or charter limitation upon the creation of general obligation indebtedness of the
Authority, and neither the Authority nor the City shall not be liable for the payment thereof out of any
money of the Authority or the City other than the Tax Revenue and the other funds referred to herein.
Nothing in this Resolution shall preclude the payment of the Note from (a) the proceeds of future
notes issued pursuant to law or (b) any other legally available funds. Nothing in this Resolution shall
prevent the City or the Authority from making advances of its own funds howsoever derived to any of the
uses and purposes mentioned in this Resolution.
Section 3.2. Details of Note; Authority of Finance Director.
(a) The Note shall be dated the Date of Original Issue and shall be issued to the purchaser
thereof, as the Owner, in installments. The Note shall be delivered on the earlier of allocation of the
maximum principal amount of the Note or upon the issuance of a certificate of occupancy of the building
constituting the Project. The Note shall be issued as a single Note.
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(b) Proceeds of the Note may be advanced and disbursed in the manner set forth below:
(1) There shall be submitted to the Finance Director a disbursement request in a form
acceptable to the Finance Director (the “Disbursement Request”), executed by the City’s
Planning Director and an authorized representative of the Redeveloper, (A) certifying that a
portion of the Project has been substantially completed and (B) certifying the actual costs
incurred by the Redeveloper in the completion of such portion of the Project.
(2) The Finance Director shall evidence such allocation in writing and inform the
Owner of the Note of any amounts allocated to the Note.
(3) Such amounts shall be deemed proceeds of the Note and the Finance Director
shall inform the Registrar in writing of the date and amount of such allocation. The Registrar
shall keep and maintain a record of the amounts allocated to the 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 the Note and its records
maintained for the Note. The aggregate amount endorsed as the Principal amount Advanced on the
Note shall not exceed $1,824,179.
The Authority shall have no obligation to pay any Disbursement Request unless such request has
been properly approved as described above, and proceeds of the Note have been deposited by the Owner of
the Note (if other than the Redeveloper) into the Project Fund.
The records maintained by the Registrar as to principal amount advanced and principal amounts
paid on the Note shall be the official records of the Cumulative Outstanding Principal Amount for all
purposes.
(c) The Note shall be dated the Date of Original Issue, which shall be the initial date of a
allocation of the Note.
(d) As of the Date of Original Issue of the Note, there shall be delivered to the Registrar the
following:
(1) A signed investor’s letter in a form acceptable to the Finance Director and Note
Counsel; and
(2) Such additional certificates and other documents as the special counsel for the
Authority may require.
(e) The note shall bear zero percent interest on the Cumulative Outstanding Principal Amount
of the Note from the Date of Original Issue.
(f) The principal of the Note shall be payable in any coin or currency of the United States of
America from all funds held by the which on the respective dates of payment thereof is legal tender for the
payment of public and private debts. Payments on the Note due prior to maturity or earlier redemption and
payment of any principal upon redemption price to maturity shall be made by check mailed by the Registrar
on each Interest Payment Date to the Owners, at the Owners’ address as it appears on the books of registry
maintained by the Registrar on the Record Date. The principal of the Note due at maturity or upon earlier
redemption shall be payable upon presentation and surrender of the Note to the Registrar. When any portion
of the Note shall have been duly called for redemption and payment thereof duly made or provided for,
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interest thereon shall cease on the principal amount of such Note so redeemed from and after the date of
redemption thereof.
(g) The Note shall be executed by the manual signatures of the Chairman and Secretary of
the Authority. In case any officer whose signature shall appear on any Note shall cease to be such officer
before the delivery of such Note, such signature shall nevertheless be valid and sufficient for all purposes,
the same as if s/he had remained in office until such delivery, and the Note may be signed by such
persons as at the actual time of the execution of such Note shall be the proper officers to sign such Note
although at the date of such Note such persons may not have been such officers.
(i) The Finance Director is hereby authorized to hereafter, from time to time, specify, set,
designate, determine, establish and appoint, as the case may be, and in each case in accordance with and
subject to the provisions of this Resolution, (1) the Date of Original Issue, the principal amount of the Note
in accordance with Section 3.2(a), (2) the maturity date of the Note, which shall be not later than December
31, 2035, (3) the initial Payment Date and (4) any other term of the Note not otherwise specifically fixed by
the provisions of this Resolution.
(j) Any Note issued upon transfer or exchange of any other Note shall be dated as of the Date
of Original Issue.
(k) The Note shall be issued to such Owner as shall be mutually agreed between the
Redeveloper and the Finance Director for a price equal to 100% of the principal amount thereof. No Note
shall be delivered to any Owner unless the Authority shall have received from the Owner thereof such
documents as may be required by the Finance Director to demonstrate compliance with all applicable laws,
including without limitation compliance with Section 3.6 hereof. The Authority may impose such
restrictions on the transfer of any Note as may be required to ensure compliance with all requirements
relating to any such transfer.
Section 3.3. Form of Note Generally. The Note shall be issued in registered form. The Note
shall be in substantially the form set forth in Article IX, with such appropriate variations, omissions and
insertions as are permitted or required by this Resolution and with such additional changes as the Finance
Director may deem necessary or appropriate. The Note may have endorsed thereon such legends or text
as may be necessary or appropriate to conform to any applicable rules and regulations of any
governmental authority or any usage or requirement of law with respect thereto.
Section 3.4. Appointment of Registrar. The Finance Director is hereby appointed the registrar
and paying agent for the Note. The Registrar shall specify its acceptance of the duties, obligations and
trusts imposed upon it by the provisions of this Resolution by a written instrument deposited with the
Authority prior to the Date of Original Issue of the initial Note. The Authority reserves the right to
remove the Registrar upon 30 days’ notice and upon the appointment of a successor Registrar, in which
event the predecessor Registrar shall deliver all cash and the Note in its possession to the successor
Registrar and shall deliver the note register to the successor Registrar. The Registrar shall have only such
duties and obligations as are expressly stated in this Resolution and no other duties or obligations shall be
required of the Registrar.
Section 3.5. Exchange of Note. Any Note, upon surrender thereof at the principal office of the
Registrar, together with an assignment duly executed by the Owner or its attorney or legal representative in
such form as shall be satisfactory to the Registrar, may, at the option of the Owner thereof, be exchanged for
another Note in a principal amount equal to the principal amount of the Note surrendered or exchanged, of
the same series and maturity and bearing interest at the same rate. The Authority shall make provision for
the exchange of the Note at the principal office of the Registrar.
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Section 3.6. Negotiability, Registration and Transfer of Note. The Registrar shall keep books
for the registration and registration of transfer of the Note as provided in this Resolution. The transfer of the
Note may be registered only upon the books kept for the registration and registration of transfer of the Note
upon (a) surrender thereof to the Registrar, together with an assignment duly executed by the Owner or its
attorney or legal representative in such form as shall be satisfactory to the Registrar and (b) evidence
acceptable to the Authority that the assignee is a bank or a qualified institutional buyer as defined in Rule
144A promulgated by the Securities and Exchange Commission. Prior to any transfer and assignment,
the Owner will obtain and provide to the Authority, an investor’s letter in form and substance satisfactory
to the Authority evidencing compliance with the provisions of all federal and state securities laws, and
will deposit with the Authority an amount to cover all reasonable costs incurred by the Authority,
including legal fees, of accomplishing such transfer. A transfer of any Note may be prohibited by the
Authority if (1) a default then exists under the Redevelopment Contract, (2) the assessed valuation of the
Redeveloper Property (as defined in the Redevelopment Contract) is less than $600,000, or (3) a protest of
the valuation of the Redeveloper Property is ongoing. Upon any such registration of transfer the Authority
shall execute and deliver in exchange for such Note a new Note, registered in the name of the transferee, in a
principal amount equal to the principal amount of the Note surrendered or exchanged, of the same series and
maturity and bearing interest at the same rate.
In all cases in which any Note shall be exchanged or a transfer of a Note shall be registered
hereunder, the Authority shall execute at the earliest practicable time execute and deliver a Note in
accordance with the provisions of this Resolution. The Note surrendered in any such exchange or
registration of transfer shall forthwith be canceled by the Registrar. Neither the Authority nor the Registrar
shall make a charge for the first such exchange or registration of transfer of any Note by any Owner. The
Authority or the Registrar, or both, may make a charge for shipping, printing and out-of-pocket costs for
every subsequent exchange or registration of transfer of such Note sufficient to reimburse it or them for any
and all costs required to be paid with respect to such exchange or registration of transfer. Neither the
Authority nor the Registrar shall be required to make any such exchange or registration of transfer of any
Note during the period between a Record Date and the corresponding Interest Payment Date.
Section 3.7. Ownership of Note. As to any Note, the person in whose name the same shall be
registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or
on account of the principal of or interest on such Note shall be made only to or upon the order of the Owner
thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge
the liability upon such Note, including the interest thereon, to the extent of the sum or sums so paid.
Section 3.8. Disposition and Destruction of Note. The Note, upon surrender to the Registrar for
final payment, whether at maturity or upon earlier redemption, shall be canceled upon such payment by the
Registrar and, upon written request of the Finance Director, be destroyed.
Section 3.9. Mutilated, Lost, Stolen or Destroyed Note. If any Note becomes mutilated or is
lost, stolen or destroyed, the Authority shall execute and deliver a new Note of like date and tenor as the
Note mutilated, lost, stolen or destroyed; provided that, in the case of any mutilated Note, such mutilated
Note shall first be surrendered to the Authority. In the case of any lost, stolen or destroyed Note, there
first shall be furnished to the Authority evidence of such loss, theft or destruction satisfactory to the
Authority, together with indemnity to the Authority satisfactory to the Authority. If any such Note has
matured, is about to mature or has been called for redemption, instead of delivering a substitute Note, the
Authority may pay the same without surrender thereof. Upon the issuance of any substitute Note, the
Authority may require the payment of an amount by the Owner sufficient to reimburse the Authority for
any tax or other governmental charge that may be imposed in relation thereto and any other reasonable
fees and expenses incurred in connection therewith.
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Section 3.10. Non-presentment of Note. If any Note is not presented for payment when the
principal thereof becomes due and payable as therein and herein provided, whether at the stated maturity
thereof or call for optional or mandatory redemption or otherwise, if funds sufficient to pay such Note
have been made available to the Registrar all liability of the Authority to the Owner thereof for the
payment of such Note shall forthwith cease, determine and be completely discharged, and thereupon it
shall be the duty of the Registrar to hold such funds, without liability for interest thereon, for the benefit
of the Owner of such Note, who shall thereafter be restricted exclusively to such funds for any claim of
whatever nature on their part under this Resolution or on, or with respect to, said Note. If any Note is not
presented for payment within five years following the date when such Note becomes due, the Registrar
shall repay to the Authority the funds theretofore held by it for payment of such Note, and such Note
shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation
of the Authority, and the Registered Owner thereof shall be entitled to look only to the Authority for
payment, and then only to the extent of the amount so repaid to it by the Registrar, and the Authority shall
not be liable for any interest thereon and shall not be regarded as a trustee of such money.
ARTICLE IV
REDEMPTION OF NOTE
Section 4.1. Redemption of Note. The Note is subject to redemption at the option of the
Authority prior to the maturity thereof at any time as a whole or in part from time to time in such
principal amount as the Authority shall determine, at a redemption price equal to 100% of the principal
amount then being redeemed plus accrued interest thereon to the date fixed for redemption.
Section 4.2. Redemption Procedures. The Finance Director is hereby authorized, without further
action of the Council, to call all or any portion of the principal of the Note for payment and redemption prior
to maturity on such date as the Finance Director shall determine, and shall deposit sufficient funds in the
Debt Service Account from the Surplus Account to pay the principal being redeemed plus the accrued
interest thereon to the date fixed for redemption. The Finance Director may effect partial redemptions of
any Note without notice to the Owner and without presentation and surrender of such Note, but total
redemption of any Note may only be effected with notice to the Owner and upon presentation and surrender
of such Note to the Registrar. Notice of a total redemption of any Note shall be sent by the Registrar by
first-class mail not less than five days prior to the date fixed for redemption to the Owner’s address
appearing on the books of registry maintained by the Registrar and indicate (a) the title and designation of
the Note, (b) the redemption date, and (c) a recitation that the entire principal balance of such Note plus all
accrued interest thereon is being called for redemption on the applicable redemption date.
Section 4.3. Determination of Outstanding Principal Amount of Note. Notwithstanding the
amount indicated on the face of any Note, the principal amount of such Note actually Outstanding from time
to time shall be determined and maintained by the Registrar. The Registrar shall make a notation in the
books of registry maintained for each Note indicating the original principal advance of such Note as
determined in accordance with Section 3.2 and make such additional notations as are required to reflect any
additional principal advances or redemptions of such Note from time to time, including on the Table of
Cumulative Outstanding Principal Amount attached to each Note if it is presented to the Registrar for that
purpose. Any Owner may examine the books of registry maintained by the Registrar upon request, and the
Registrar shall grant such request as soon as reasonably practicable. Any failure of the Registrar to record a
principal advance or a redemption on the Table of Cumulative Outstanding Principal Amount shall not
affect the Cumulative Outstanding Principal Amount shown on the records of the Registrar.
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ARTICLE V
REFUNDING NOTES
Section 5.1. Refunding Notes. Refunding Notes may be issued at any time at the direction of the
Finance Director for the purpose of refunding (including by purchase) any Note or any portion thereof,
including amounts to pay principal to the date of maturity or redemption (or purchase) and the expenses of
issuing the Refunding Notes and of effecting such refunding; provided that the Debt Service on all notes to
be outstanding after the issuance of the Refunding Notes shall not be greater in any Fiscal Year than would
have been the Debt Service in such Fiscal Year were such refunding not to occur.
ARTICLE VI
EFFECTIVE DATE OF PROJECT;
PLEDGE OF REVENUE
Section 6.1. Effective Date of Project. For purposes of Section 18-2147, Reissue Revised
Statutes of Nebraska, as amended, the effective date of the Project shall be determined as set forth in the
Redevelopment Contract. The Planning Director is hereby directed to notify the Assessor of the effective
date of the Project on the form prescribed by the Property Tax Administrator.
Section 6.2. Collection of Revenue; Pledge of Revenue. As provided for in the Redevelopment
Plan, and pursuant to the provisions of the Redevelopment Law, for the period contemplated thereby, the
Tax Revenue collected in the Project Area shall be allocated to and, when collected, paid into the Special
Fund under the terms of this Resolution to pay the principal on the Note. When the Note has been paid in
accordance with this Resolution, the Redevelopment Plan and the Redevelopment Contract, the Tax
Revenue shall be applied as provided for in the Redevelopment Law.
The Revenue is hereby allocated and pledged in its entirety to the payment of the principal on the
Note and to the payment of the Project Costs (including the Project), until the principal on the Note has been
paid (or until money for that purpose has been irrevocably set aside), and the Revenue shall be applied
solely to the payment of the principal on the Note. Such allocation and pledge is and shall be for the sole
and exclusive benefit of the Owner and shall be irrevocable.
Section 6.3. Potential Insufficiency of Revenue. Neither the Authority nor the City makes any
representations, covenants, or warranties to the Owner that the Revenue will be sufficient to pay the
principal of or interest on the Note. Payment of the principal of and interest on the Note is limited solely
and exclusively to the Revenue pledged under the terms of this Resolution, and is not payable from any
other source whatsoever.
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ARTICLE VII
CREATION OF FUNDS AND ACCOUNTS;
PAYMENTS THEREFROM
Section 7.1. Creation of Funds and Account. There is hereby created and established by the
Authority the following funds and accounts which funds shall be held by the Finance Director of the City
separate and apart from all other funds and moneys of the Authority and the City under her control
a special trust fund called the “Grand Island Hotel, LLC, Redevelopment Project Tax Increment Special
Fund” (the “Special Fund”).
So long as the Note remains unpaid, the money in the foregoing fund and accounts shall be used for
no purpose other than those required or permitted by this Resolution, any Resolution supplemental to or
amendatory of this Resolution and the Redevelopment Law.
Section 7.2. Special Fund. All of the Revenue shall be deposited into the Special Fund. The
Revenue accumulated in the Special Fund shall be used and applied on the Business Day prior to each
Payment Date (a) to make any payments to the Authority as may be required under the Redevelopment
Contract and (b) to pay principal on the Note to the extent of any money then remaining the Special Fund on
such Payment Date. Money in the Special Fund shall be used solely for the purposes described in this
Section 7.2. All Revenues received through and including December 31, 2035 shall be used solely for the
payments required by this Section 7.2.
ARTICLE VIII
COVENANTS OF THE AUTHORITY
So long as the Note is outstanding and unpaid, the Authority will (through its proper officers, agents
or employees) faithfully perform and abide by all of the covenants, undertakings and provisions contained in
this Resolution or in the Note, including the following covenants and agreements for the benefit of the
Owner which are necessary, convenient and desirable to secure the Note and will tend to make them more
marketable; provided, however, that such covenants do not require either the City or the Authority to expend
any money other than the Revenue nor violate the provisions of State law with respect to tax revenue
allocation.
Section 8.1. No Priority. The Authority covenants and agrees that it will not issue any obligations
the principal of or interest on which is payable from the Revenue which have, or purport to have, any lien
upon the Revenue prior or superior to or in parity with the lien of the Note; provided, however, that nothing
in this Resolution shall prevent the Authority from issuing and selling notes or other obligations which have,
or purport to have, any lien upon the Revenue which is junior to the Note and the Debt Service thereon, or
from issuing and selling notes or other obligations which are payable in whole or in part from sources other
than the Revenue.
Section 8.2. To Pay Principal of the Note. The Authority will duly and punctually pay or cause
to be paid solely from the Revenue the principal of the Note on the dates and at the places and in the manner
provided in the Note according to the true intent and meaning thereof and hereof, and will faithfully do and
perform and fully observe and keep any and all covenants, undertakings, stipulations and provisions
contained in the Note and in this Resolution.
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Section 8.4. Books of Account; Financial Statements. The Authority covenants and agrees that
it will at all times keep, or cause to be kept, proper and current books of account (separate from all other
records and accounts) in which complete and accurate entries shall be made of all transactions relating to the
Project, the Revenue and other funds relating to the Project.
Section 8.5. Eminent Domain Proceeds. The Authority covenants and agrees that should all or
any part of the Project be taken by eminent domain or other proceedings authorized by law for any public or
other use under which the property will be exempt from ad valorem taxation, the net proceeds realized by
the Authority therefrom shall constitute Project Revenue and shall be deposited into the Special Fund and
used for the purposes and in the manner described in Section 7.2.
Section 8.6. Protection of Security. The Authority is duly authorized under all applicable laws to
create and issue the Note and to adopt this Resolution and to pledge the Revenue in the manner and to the
extent provided in this Resolution. The Revenue so pledged is and will be free and clear of any pledge, lien,
charge, security interest or encumbrance thereon or with respect thereto prior to, or of equal rank with, the
pledge created by this Resolution, except as otherwise expressly provided herein, and all corporate action on
the part of the Authority to that end has been duly and validly taken. The Note is and will be a valid
obligation of the Authority in accordance with its terms and the terms of this Resolution. The Authority
shall at all times, to the extent permitted by law, defend, preserve and protect the pledge of and security
interest granted with respect to the Revenue pledged under this Resolution and all the rights of the Owner
under this Resolution against all claims and demands of all persons whomsoever.
ARTICLE IX
FORM OF NOTE
Section 9.1. Form of Note. The Note shall be in substantially the following form:
(FORM OF NOTE)
THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS, AND THIS NOTE MAY NOT BE
TRANSFERRED UNLESS THE PROPOSED ASSIGNEE IS A BANK OR A QUALIFIED
INSTITUTIONAL BUYER AS DEFINED IN RULE 144A PROMULGATED BY THE
SECURITIES AND EXCHANGE COMMISSION AND THE OWNER HAS OBTAINED AND
PROVIDED TO THE AUTHORITY, PRIOR TO SUCH TRANSFER AND ASSIGNMENT, AN
INVESTOR’S LETTER IN FORM AND SUBSTANCE SATISFACTORY TO THE AUTHORITY
EVIDENCING THE COMPLIANCE WITH THE PROVISIONS OF ALL FEDERAL AND STATE
SECURITIES LAWS AND CONTAINING SUCH OTHER REPRESENTATIONS AS THE
AUTHORITY MAY REQUIRE.
THIS NOTE MAY BE TRANSFERRED ONLY IN THE MANNER AND ON THE TERMS AND
CONDITIONS AND SUBJECT TO THE RESTRICTIONS STATED IN SECTION 3.6 OF
RESOLUTION NO. ____________ OF THE COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA.
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UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF HALL
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
GRAND ISLAND HOTEL, LLC, REDEVELOPMENT PROJECT
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2018
No. R-1 Up to $1,824,179
(subject to reduction as described herein)
Date of Date of Rate of
Original Issue Maturity Interest
December 31, 2035 0.00%
REGISTERED OWNER: Grand Island Hotel, LLC
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.
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 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”), payable semiannually on June 30 and December 31 of each year until payment in full of
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such Principal Amount, beginning June 30, 2021, 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 payment date occurs, at such Owner’s address as it appears
on such note registration books. The principal of this Note is 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
______________, 2018, 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 $1,824,179.
This Note has been issued by the Authority for the purpose of financing the costs of constructing,
reconstructing, improving, extending, rehabilitating, installing, equipping, furnishing and completing certain
improvements within the area identified and referred to as the City of Grand Island Redevelopment Plan
Amendment for Redevelopment Area #2 August 2018, (Grand Island Hotel, LLC, Project) which is more
specifically described in the Resolution, and to carry out the Authority’s corporate purposes and powers in
connection therewith.
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.
This Note is a special limited obligation of the Authority payable as to principal solely from and is
secured solely by the Tax Revenue (as defined in the Resolution) pledged under the Resolution, all on the
terms and conditions set forth in the Resolution. The Tax Revenue represents that portion of ad valorem
taxes levied by public bodies of the State of Nebraska, including the City, on real property in the Project
Area (as defined in this 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 Project Area 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.
The principal 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 Tax Revenues and other funds pledged
under the Resolution, which Tax 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.
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The Registrar 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 Registrar 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 Tax
Revenue pledged to the payment of the principal 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 shall be held for the purpose of such payment by the Registrar.
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 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,
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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.
[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
GRAND ISLAND HOTEL, LLC, REDEVELOPMENT PROJECT
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2018
Date
Principal Amount
Advanced
Principal Amount
Redeemed
Cumulative
Outstanding
Principal
Amount
Notation
Made
By
ARTICLE X
DEFEASANCE; MONEY HELD FOR PAYMENT OF
DEFEASED NOTE
Section 10.1. Discharge of Liens and Pledges; Note No Longer Outstanding Hereunder. The
obligations of the Authority under this Resolution, including any Resolutions, resolutions or other
proceedings supplemental hereto, and the liens, pledges, charges, trusts, assignments, covenants and
agreements of the Authority herein or therein made or provided for, shall be fully discharged and satisfied as
to the Note or any portion thereof, and the Note or any portion thereof shall no longer be deemed to be
outstanding hereunder and thereunder,
(a) when the any Note or portion thereof shall have been canceled, or shall have
been surrendered for cancellation or is subject to cancellation, or shall have been purchased from
money in any of the funds held under this Resolution, or
(b) if the Note or portion thereof is not canceled or surrendered for cancellation or
subject to cancellation or so purchased, when payment of the principal of the Note or any portion
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thereof, plus interest on such principal to the due date thereof, either (1) shall have been made or
caused to be made in accordance with the terms thereof, or (2) shall have been provided by
irrevocably depositing with the Registrar for the Note, in trust and irrevocably set aside exclusively
for such payment, (A) money sufficient to make such payment or (B) Escrow Obligations maturing
as to principal in such amount and at such times as will insure the availability of sufficient money to
make such payment.
Provided that, with respect to any total redemption of any Note, notice of redemption shall have
been duly given or provision satisfactory to the Registrar shall have been made therefor, or waiver of such
notice, satisfactory in form, shall have been filed with the Registrar.
At such time as any Note or portion thereof shall no longer be outstanding hereunder, and, except
for the purposes of any such payment from such money or such Escrow Obligations, such Note or portion
thereof shall no longer be secured by or entitled to the benefits of this Resolution.
Any such money so deposited with the Registrar for any Note or portion thereof as provided in this
Section 10.1 may at the direction of the Finance Director also be invested and reinvested in Escrow
Obligations, maturing in the amounts and times as hereinbefore set forth. All income from all Escrow
Obligations in the hands of the Registrar which is not required for the payment of such Note or portion
thereof with respect to which such money shall have been so deposited, shall be paid to the Authority and
deposited in the Special Fund as and when realized and collected for use and application as is other money
deposited in that fund.
Anything in this Resolution to the contrary notwithstanding, if money or Escrow Obligations have
been deposited or set aside with the Registrar pursuant to this Section 10.1 for the payment of any Note and
such Note shall not have in fact been actually paid in full, no amendment to the provisions of this Section
10.1 shall be valid as to or binding upon the Owner thereof without the consent of such Owner.
Section 10.2. Certain Limitations After Due Date. If sufficient money or Escrow Obligations
shall have been deposited in accordance with the terms hereof with the Registrar in trust for the purpose of
paying the Notes or any portion thereof when the same becomes due, whether at maturity or upon earlier
redemption, all liability of the Authority for such payment shall forthwith cease, determine and be
completely discharged, and thereupon it shall be the duty of the Registrar to hold such money or Escrow
Obligations, without liability to the Owners, in trust for the benefit of the Owners, who thereafter shall be
restricted exclusively to such money or Escrow Obligations for any claim for such payment of whatsoever
nature on his part.
Notwithstanding the provisions of the preceding paragraph of this Section 10.2, money or Escrow
Obligations held by the Registrar in trust for the payment and discharge of the principal of on any Note
which remain unclaimed for five years after the date on which such payment shall have become due and
payable, either because the Notes shall have reached their maturity date or because the entire principal
balance of the Notes shall have been called for redemption, if such money was held by the Registrar or such
paying agent at such date, or for five years after the date of deposit of such money, if deposited with the
Registrar after the date when such Note became due and payable, shall, at the written request of the
Authority be repaid by the Registrar to the Authority as the Authority’s property and free from the trust
created by this Resolution, and the Registrar shall thereupon be released and discharged with respect thereto,
and the Owner thereof shall look only to the Authority for the payment thereof.
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ARTICLE XI
AMENDING AND SUPPLEMENTING OF RESOLUTION
Section 11.1. Amending and Supplementing of Resolution Without Consent of Owner. The
Authority may at any time without the consent or concurrence of the Owner of the Note adopt a resolution
amendatory hereof or supplemental hereto if the provisions of such supplemental Resolution do not
materially adversely affect the rights of the Owner of the Note, for any one or more of the following
purposes:
(a) To make any changes or corrections in this Resolution as to which the Authority shall
have been advised by counsel that the same are verbal corrections or changes or are required for the
purpose of curing or correcting any ambiguity or defective or inconsistent provision or omission or
mistake or manifest error contained in this Resolution, or to insert in this Resolution such provisions
clarifying matters or questions arising under this Resolution as are necessary or desirable;
(b) To add additional covenants and agreements of the Authority for the purpose of further
securing payment of the Note;
(c) To surrender any right, power or privilege reserved to or conferred upon the Authority by
the terms of this Resolution;
(d) To confirm as further assurance any lien, pledge or charge, or the subjection to any lien,
pledge or charge, created or to be created by the provisions of this Resolution; and
(e) To grant to or confer upon the Owner of the Note any additional rights, remedies, powers,
authority or security that lawfully may be granted to or conferred upon them.
The Authority shall not adopt any supplemental Resolution authorized by the foregoing
provisions of this Section 11.1 unless in the opinion of counsel the adoption of such supplemental
Resolution is permitted by the foregoing provisions of this Section 11.1 and the provisions of such
supplemental Resolution do not materially and adversely affect the rights of the Owner of the Note.
Section 11.2. Amending and Supplementing of Resolution with Consent of Owner. With the
consent of the Owners of the Note, the Authority from time to time and at any time may adopt a
resolution amendatory hereof or supplemental hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Resolution, or modifying or
amending the rights and obligations of the Authority under this Resolution, or modifying or amending in
any manner the rights of the Owner of the Note; provided, however, that, without the specific consent of
the Owner of the Note, no supplemental Resolution amending or supplementing the provisions hereof
shall: (a) change the fixed maturity date for the payment or the terms of the redemption thereof, or reduce
the principal amount of the Note or the rate of interest thereon or the Redemption Price payable upon the
redemption or prepayment thereof; (b) authorize the creation of any pledge of the Tax Revenues and other
money and securities pledged hereunder, prior, superior or equal to the pledge of and lien and charge
thereon created herein for the payment of the Note except to the extent provided in Articles III and V; or
(c) deprive the Owner of the Note in any material respect of the security afforded by this Resolution.
Nothing in this paragraph contained, however, shall be construed as making necessary the approval of the
Owner\ of the Note of the adoption of any supplemental Resolution authorized by the provisions of
Section 11.1.
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It shall not be necessary that the consents of the Owner of the Note approve the particular form of
wording of the proposed amendment or supplement or of the proposed supplemental Resolution effecting
such amendment or supplement, but it shall be sufficient if such consents approve the substance of the
proposed amendment or supplement. After the Owner of the Note shall have filed its consent to the
amending or supplementing hereof pursuant to this Section, the Authority may adopt such supplemental
Resolution.
Section 11.3. Effectiveness of Supplemental Resolution. Upon the adoption (pursuant to this
Article XI and applicable law) by the Authority of any supplemental Resolution amending or
supplementing the provisions of this Resolution or upon such later date as may be specified in such
supplemental Resolution, (a) this Resolution and the Note shall be modified and amended in accordance
with such supplemental Resolution, (b) the respective rights, limitations of rights, obligations, duties and
immunities under this Resolution and the Owner of the Note shall thereafter be determined, exercised and
enforced under this Resolution subject in all respects to such modifications and amendments, and (c) all
of the terms and conditions of any such supplemental Resolution shall be a part of the terms and
conditions of the Note and of this Resolution for any and all purposes.
ARTICLE XII
MISCELLANEOUS
Section 12.1. General and Specific Authorizations; Ratification of Prior Actions. Without in
any way limiting the power, authority or discretion elsewhere herein granted or delegated, the Authority
hereby (a) authorizes and directs the Chairman, Finance Director, Secretary, Planning Director and all other
officers, officials, employees and agents of the City to carry out or cause to be carried out, and to perform
such obligations of the Authority and such other actions as they, or any of them, in consultation with Special
Counsel, the Owner and its counsel shall consider necessary, advisable, desirable or appropriate in
connection with this Resolution, including without limitation the execution and delivery of all related
documents, instruments, certifications and opinions, and (b) delegates, authorizes and directs the Finance
Director the right, power and authority to exercise his independent judgment and absolute discretion in (1)
determining and finalizing all terms and provisions to be carried by the Note not specifically set forth in this
Resolution and (2) the taking of all actions and the making of all arrangements necessary, proper,
appropriate, advisable or desirable in order to effectuate the issuance, sale and delivery of the Note. The
execution and delivery by the Finance Director or by any such other officers, officials, employees or agents
of the City of any such documents, instruments, certifications and opinions, or the doing by them of any act
in connection with any of the matters which are the subject of this Resolution, shall constitute conclusive
evidence of both the Authority’s and their approval of the terms, provisions and contents thereof and of all
changes, modifications, amendments, revisions and alterations made therein and shall conclusively establish
their absolute, unconditional and irrevocable authority with respect thereto from the Authority and the
authorization, approval and ratification by the Authority of the documents, instruments, certifications and
opinions so executed and the actions so taken.
All actions heretofore taken by the Finance Director and all other officers, officials, employees and
agents of the Authority, including without limitation the expenditure of funds and the selection, appointment
and employment of Special Counsel and financial advisors and agents, in connection with issuance and sale
of the Note, together with all other actions taken in connection with any of the matters which are the subject
hereof, be and the same is hereby in all respects authorized, adopted, specified, accepted, ratified, approved
and confirmed.
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Section 12.2. Proceedings Constitute Contract; Enforcement Thereof. The provisions of this
Resolution shall constitute a contract between the Authority and the Owner and the provisions thereof shall
be enforceable by the Owner by mandamus, accounting, mandatory injunction or any other suit, action or
proceeding at law or in equity that is presently or may hereafter be authorized under the laws of the State in
any court of competent jurisdiction. Such contract is made under and is to be construed in accordance with
the laws of the State.
After the issuance and delivery of any Note, this Resolution and any supplemental Resolution shall
not be repealable, but shall be subject to modification or amendment to the extent and in the manner
provided in this Resolution, but to no greater extent and in no other manner.
Section 12.3. Benefits of Resolution Limited to the Authority and the Owner. With the
exception of rights or benefits herein expressly conferred, nothing expressed or mentioned in or to be
implied from this Resolution or the Note is intended or should be construed to confer upon or give to any
person other than the Authority and the Owner of the Note any legal or equitable right, remedy or claim
under or by reason of or in respect to this Resolution or any covenant, condition, stipulation, promise,
agreement or provision herein contained. The Resolution and all of the covenants, conditions, stipulations,
promises, agreements and provisions hereof are intended to be and shall be for and inure to the sole and
exclusive benefit of the City, the Authority and the Owner from time to time of the Note as herein and
therein provided.
Section 12.4. No Personal Liability. No officer or employee of the Authority shall be
individually or personally liable for the payment of the principal of or interest on the Note. Nothing herein
contained shall, however, relieve any such officer or employee from the performance of any duty provided
or required by law.
Section 12.5. Effect of Saturdays, Sundays and Legal Holidays. Whenever this Resolution
requires any action to be taken on a Saturday, Sunday or legal holiday, such action shall be taken on the first
business day occurring thereafter. Whenever in this Resolution the time within which any action is required
to be taken or within which any right will lapse or expire shall terminate on a Saturday, Sunday or legal
holiday, such time shall continue to run until midnight on the next succeeding business day.
Section 12.6. Partial Invalidity. If any one or more of the covenants or agreements or portions
thereof provided in this Resolution on the part of the City, the Authority or the Registrar to be performed
should be determined by a court of competent jurisdiction to be contrary to law, then such covenant or
covenants, or such agreement or agreements, or such portions thereof, shall be deemed severable from the
remaining covenants and agreements or portions thereof provided in this Resolution and the invalidity
thereof shall in no way affect the validity of the other provisions of this Resolution or of the Note, but the
Owner of the Note shall retain all the rights and benefits accorded to them hereunder and under any
applicable provisions of law.
If any provisions of this Resolution shall be held or deemed to be or shall, in fact, be inoperative or
unenforceable or invalid as applied in any particular case in any jurisdiction or jurisdictions or in all
jurisdictions, or in all cases because it conflicts with any constitution or statute or rule of public policy, or
for any other reason, such circumstances shall not have the effect of rendering the provision in question
inoperative or unenforceable or invalid in any other case or circumstance, or of rendering any other
provision or provisions herein contained inoperative or unenforceable or invalid to any extent whatever.
Section 12.7. Law and Place of Enforcement of this Resolution. The Resolution shall be
construed and interpreted in accordance with the laws of the State. All suits and actions arising out of this
Resolution shall be instituted in a court of competent jurisdiction in the State except to the extent necessary
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for enforcement, by any trustee or receiver appointed by or pursuant to the provisions of this Resolution, or
remedies under this Resolution.
Section 12.8. Effect of Article and Section Headings and Table of Contents. The headings or
titles of the several Articles and Sections hereof, and any table of contents appended hereto or to copies
hereof, shall be solely for convenience of reference and shall not affect the meaning, construction,
interpretation or effect of this Resolution.
Section 12.9. Repeal of Inconsistent Resolution. Any Resolution of the City, or the Authority
and any part of any resolution, inconsistent with this Resolution is hereby repealed to the extent of such
inconsistency.
Section 12.10. Publication and Effectiveness of this Resolution. This Resolution shall take
effect and be in full force from and after its passage by the Community Redevelopment Authority of the
City.
Section 12.11 Authority to Execute Redevelopment Contract and Approve Plan. The
Chairman and Secretary are authorized and directed to execute the Redevelopment Contract, in the form
presented with such changes as the Chairman, in his discretion deems proper. The Plan is approved and
adopted.
PASSED AND ADOPTED: ______________________, 2018.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA
(SEAL) By:
Chairman
ATTEST:
By:
Secretary
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Community Redevelopment
Authority (CRA)
Wednesday, November 14, 2018
Regular Meeting
Item I1
Redevelopment Plan for CRA Area 26 The Orchard Subdivision-
Orchard LLC/Hoppe Homes LP
Staff Contact:
Grand Island Regular Meeting - 11/14/2018 Page 103 / 152
Redevelopment Plan Amendment
Grand Island CRA Area 26
November 2018
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area 1 with in the city, pursuant to
the Nebraska Community Development Law (the “Act”) and provide for the
financing of a specific infrastructure related project in Area 26.
Executive Summary:
Project Description
THE REDEVELOPMENT APPROXIMATELY 23 ACRES OF PROPERTY
LOCATED BETWEEN CAPITAL AVENUE AND 12TH STREET WEST OF THE
CENTRAL NEBRASKA RAIL ROAD TRACKS IN NORTHEAST GRAND ISLAND
FOR THE DEVELOPMENT OF 180 LOTS FOR SINGLE FAMILY DETACHED AND
ATTACHED HOUSING UNITS.
The use of Tax Increment Financing to aid in redevelopment expenses associated with
platting and installing the necessary infrastructure (streets, sanitary sewer, water, and
storm sewer) for the development of 180 residential lots being platted as The Orchard
Subdivision in northeast Grand Island. The use of Tax Increment Financing is an integral
part of the development plan and necessary to make this project affordable. The project
will result in 180 housing units with an average 2019 sale price $170,000. The 2014
Housing Study for the City of Grand Island identified a need of 1735 new housing units
within the City by 2019. Between January 2014 and August 2018 at total of 1034 new
units were permitted, leaving a deficit of over 700 units. This project and selling the
houses for the cost of construction would not be feasible without the use of TIF.
Orchard LLC – Hoppe Homes, LP owns the property being platted as The Orchard
Subdivision. This is vacant property that has been surrounded by developed and
developing property for more than 100 years. The developer is responsible for and has
provided evidence that they can secure adequate debt financing to cover the costs
associated with the remodeling and rehabilitation of this building. The Grand Island
Community Redevelopment Authority (CRA) intends to pledge the ad valorem taxes
generated over multiple 15 year periods beginning January 1, 2020 towards the allowable
costs and associated financing for rehabilitation.
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: Property being platted as The Orchard Subdivision in the City of
Grand Island, Hall County, Nebraska.
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Existing Land Use and Subject Property
Grand Island Regular Meeting - 11/14/2018 Page 105 / 152
The tax increment will be captured for the tax years the payments for which become
delinquent in years 2020 through 2043 inclusive. The TIF contract will be
structured so it can be amended each year for up to nine years to add the housing
units to be completed during that year. No single property will be eligible for TIF
for a period of more than 15 years.
The real property ad valorem taxes on the current valuation will continue to be paid
to the normal taxing entities. The increase will come from development of the
property for residential uses and the construction of houses in the project area as
permitted in the R-3SL Medium Density Residential Small Lot Zoning District.
Statutory Pledge of Taxes.
In accordance with Section 18-2147 of the Act and the terms of the Resolution
providing for the issuance of the TIF Note, the Authority hereby provides that any ad
valorem tax on the Redevelopment Project Area for the benefit of any public body be
divided for a period of fifteen years after the effective date of this provision as set forth in
the Redevelopment Contract, consistent with this Redevelopment Plan. The plan
anticipates that each phase of the development will constitute new effective date for the
purposes of determining the period of fifteen years. Said taxes shall be divided as
follows:
a. That portion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the redevelopment project valuation shall
be paid into the funds, of each such public body in the same proportion as all other taxes
collected by or for the bodies; and
b. That portion of the ad valorem tax on real property in the
redevelopment project in excess of such amount, if any, shall be allocated to and, when
collected, paid into a special fund of the Authority to pay the principal of; the interest on,
and any premiums due in connection with the bonds, loans, notes, or advances on money
to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise,such
Authority for financing or refinancing, in whole or in part, a redevelopment project.
When such bonds, loans, notes, advances of money, or indebtedness including interest
and premium due have been paid, the Authority shall so notify the County Assessor and
County Treasurer and all ad valorem taxes upon real property in such redevelopment
project shall be paid into the funds of the respective public bodies.
Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged
to the repayment of loans or advances of money, or the incurring of any indebtedness,
whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in
whole or in part, the redevelopment project, including the payment of the principal of,
premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness.
Redevelopment Plan Amendment Complies with the Act:
Grand Island Regular Meeting - 11/14/2018 Page 106 / 152
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 May 22, 2018.[§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. The Hall County Regional Planning
Commission held a public hearing at their meeting on October 3, 2018 and passed
Resolution 2019-011 confirming that this project is consistent with the Comprehensive
Plan for the City of Grand Island. The Grand Island Public School District has submitted
a formal request to the Grand Island CRA to notify the District any time a TIF project
involving a housing subdivision and/or apartment complex is proposed within the
District. The school district was notified of this plan amendment prior to it being
submitted to the CRA for initial consideration.
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 26 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority.
b. Demolition and Removal of Structures:
The project to be implemented with this plan does not provide for the demolition and
removal any structures on this property.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. All of the area
around the site in private ownership is planned for low to medium density residential
development. This property is in private ownership. [§18-2103(b) and §18-2111] The
attached map also is an accurate site plan of the area after redevelopment. [§18-2111(5)]
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City of Grand Island Future Land Use Map
Grand Island Regular Meeting - 11/14/2018 Page 108 / 152
d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned R-3SL Medium Density Small Lot Residential zone. No zoning
changes are anticipated with this project. New streets are anticipated and needed to
support this project and it is anticipated that TIF revenues will offset the costs of those
improvements. No changes are anticipated in building codes or ordinances. No other
planning changes contemplated. [§18-2103(b) and §18-2111]
e. Site Coverage and Intensity of Use
The property is zoned R-3SL This zoning district allows for up to 50% of the property to
be covered with buildings and lot sizes ranging from 2100 square feet for Row houses to
a minimum of 3000 square feet for single family detached homes. The proposed
development meets those coverage and intensity of use requirements. [§18-2103(b) and
§18-2111]
f. Additional Public Facilities or Utilities
Sanitary sewer and water are available to support this development. Both sanitary sewer
and water will need to be extended throughout the site. TIF revenues will be used to
offset the cost of these public utility improvements.
Electric utilities are sufficient for the proposed use of this property. Electric line will
need to be extended throughout the propert.
No other publicly owned 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 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 is estimated a purchase value of $2,000,000 as an eligible expense. The
estimated costs of grading, streets, sanitary sewer, water and storm sewer is $4,000,000
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The total of the eligible expenses for this project is estimated by the developer at
$6,000,000.
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 $6,000,000 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, 2021 through December 2043.
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. 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 increasing the number of residential units
within the City of Grand Island and encouraging infill development.
8. Time Frame for Development
Development of this project is anticipated to begin in the 2019 year. The subdivision will
likely be built in three phases with approximately 60 lots per phase. The developer is
anticipating construction of 20 units per year though this may be adjusted for market
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demand. It is anticipated that the final homes in this development will be built in 2027
with the tax increment on those homes extending to 2042. Excess valuation should be
available for the first homes built with this project for 15 years beginning with the 2021
tax year.
9. Justification of Project
The 2014 housing study for the City of Grand Island projected that by 2019 we would
need an additional 1734 new housing units. Between January 1 of 2014 and August of
2018 permits for 1028 new housing units had bee issued. The current housing market, a
combination of the cost of producing housing and the prevailing wages, has not created a
situation that gives the markets sufficient incentive to build the number housing units
required to meet community needs. This lack of housing options impacts a variety of
other areas within the community including work force development, overcrowding,
maintenance of residential units and rents. This project will create new housing options
in one of the oldest areas of the City. These new housing options include row houses
along with townhomes and single family houses on smaller lots. All of this should lower
the cost of construction and the overall sales price of the homes, making them more
affordable.
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.
(2019), the City of Grand Island has analyzed the costs and benefits of the proposed
Redevelopment Project, including:
Project Sources and Uses. Approximately $6,000,0000 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
$6,000,000 in private sector financing; a private investment of $5.25 for every TIF and
grant dollar investment.
Use of Funds Source of Funds.
Description TIF Funds Private Funds Total
Site Acquisition $2,000,000 $ $2,000,000
Legal and Plan* $80,000 $80,000
Financing Fees $20,000 $20,000
Engineering/Arch $50,000 $50,000
New Construction $31,000,000 $31,000,000
On Site Improvements $4,000,000 $4,000,000
Contingency $6,000,000 $350,000 $350,000
TOTALS $6,000,000 $31,500,000 $37,500,00
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Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2019,
valuation of approximately $203,000. Based on the 2017 levy this would result in a real
property tax of approximately $4,573. It is anticipated that the assessed value will
increase by $39,800,000 upon full completion, as a result of the site redevelopment. This
development will result in an estimated tax increase of over $890,000 annually. The tax
increment gained from this Redevelopment Project Area would not be available for use
as city general tax revenues, for the period of the bonds, but would be used for eligible
private redevelopment costs to enable this project to be realized.
Estimated 2019 assessed value: $ 203,000
Estimated value after completion $ 40,000,000
Increment value $ 39,797,000
Annual TIF generated (estimated) $ 890,000
TIF bond issue $ 6,000,000
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $203,000.
The proposed redevelopment will create additional valuation of $39,800,000 over the
course of the next nine years. The project creates additional valuation that will support
taxing entities long after the project is paid off along with providing 181 additional
housing units that can be built and sold for less than $200,000.
(b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
Existing water and waste water facilities will not be negatively impacted by this
development. The electric utility has sufficient capacity to support the development.
This is infill development with services connecting to existing line with capacity. This
development is likely to result in a larger number of students in the Lincoln Elementary
School service area. Fire and police protection are available and should not be negatively
impacted by this development though there will be some increased need for officers and
fire fighters as the City continues to grow whether from this project or others.
Housing of the type proposed is likely to attract families to the neighborhood.
Lincoln Elementary school is currently near or at capacity and this will likely cause some
issues. The project is proposed for development at about 20 units per year so the impact
will not be immediate.
(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
This will provide additional housing options for the residents of Grand Island. The
National Homebuilders Association estimates that each new single family home is the
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equivalent of 2.5 full time equivalent jobs so this development at 20 houses per year
would represent an additional 50 FTE’s within the city for the next nine years.
(d) Impacts on other employers and employees within the city or village and the
immediate area that are located outside of the boundaries of the area of the
redevelopment project; and
This project will not have a negative impact on other employers different from any
other expanding business within the Grand Island area. Grand Island does have tight
labor market and part of that is due to the availability and cost of housing. This
development may help alleviate some of those pressures.
(e) Impacts on student populations of school districts within the City or Village:
This development will have an impact on the Grand Island School system and
will likely result in additional students at both the elementary and secondary school
levels.
The average number of persons per household in Grand Island for 2012 to 2016
according the American Community Survey is 2.65. 181 additional households would
house 480 people. According to the 2010 census 19.2% of the population of Grand Island
was between the ages of 5 and 18. If the averages hold it would be expected that there
would be an additional 92 school age children generated by this development. If this
develops at a rate of 20 houses per year for 9 years approximately 10 children would be
added to the school age population every year with this development. These 10 children
will likely be spread over the full school age population from elementary to secondary
school. According to the National Center for Educational Statistics1 the 2015-16
enrollment for GIPS was 9,698 students and the cost per student in 2013-14 was $12,343
of that $5,546 is generated locally. The Grand Island Public School System was notified
on October 16, 2018 that the CRA would be considering this application at their
November 14, 2018 meeting.
(f) 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 2014 Housing Study for the City of Grand
Island to create more than 1700 new dwelling units by 2019. It appears that the City of
Grand Island will have added more than 1000 units by 2019 but that still leaves a deficit
of the projected need of 700 units. The local housing market is not capable of producing
the number of units needed at market rate given the costs of building and development.
Time Frame for Development
Development of this project is anticipated to be completed during between Spring of
2019 and the end of 2028. The base tax year should be calculated on the value of the
1 https://nces.ed.gov/ccd/districtsearch/district_detail.asp?ID2=3100016
Grand Island Regular Meeting - 11/14/2018 Page 113 / 152
property as of January 1, 2019 for the first phase with each phase based on the preceeding
year’s valuation of the property included in the amendment for that year. Excess
valuation should be available for this project beginning in 2020 with taxes due in 2021.
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 on each
property or an amount not to exceed $6,000,000 the projected amount of increment based
upon the anticipated value of the project and current tax rate. Based on the estimates of
the expenses of the rehabilitation the developer will spend at least $6,000,000 on TIF
eligible activities.
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Orchard LLC
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 286
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 14th day of November, 2018
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By___________________________
Chairperson
ATTEST:
__________________________
Secretary
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Orchard LLC
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND,
NEBRASKA
RESOLUTION NO. 287
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 26, from
Orchard LLC- Hoppe Homes LP.., (The "Developer") for redevelopment of property located in
Northeast Grand Island, south of Capital Avenue and west of the Central Nebraska Rail Road
Line proposed for platting as The Orchard Subdivision, 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 2;
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 14th day of November, 2018.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA.
By ___________________________
Chairperson
ATTEST:
___________________
Secretary
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Community Redevelopment
Authority (CRA)
Wednesday, November 14, 2018
Regular Meeting
Item X1
Request from Super Market Developers to Allow Sale of 5 Points
Project to Ken-Ray LLC
Staff Contact:
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November 6, 2018
From: Chad Nabity, AICP Director
To: CRA Board
Re: Super Market Developers (SMD) Five Points Project Change of
Ownership Request
Overview
Enclosed you will an Assignment and Assumption of Redevelopment Contract
document that requests the CRA grant permission to allow SMD the original
developer of the Five Points Super Saver Project to sell all of the property
covered by the redevelopment plan and agreement for that project. Ken-Ray
L.L.C. represented by Raymond J. O’Connor of Grand Island, Nebraska is the
proposed buyer of the project.
SMD is making this request because of the terms of the redevelopment contract
specifically section21 cited below. The first phase of this project has been
completed with the construction of the Super Saver Store but the later phases
were dependent on market conditions and have not been completed.
21. Restrictions on Assignments of Rights or Obligations. Redeveloper
represents and agrees that prior to completion of the Private Improvements there shall be
no sale or transfer of the Redeveloper Property or assignment of Redeveloper’s rights or
obligations under this Contract to any party without the prior written approval of the
Authority (which shall not be unreasonably withheld, conditioned, or delayed), other than
leases, mortgages and involuntary transfers by reason of death, insolvency, or
incompetence. 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 determined by the Authority, necessary and adequate to fulfill
the obligations undertaken in this Contract by Redeveloper; and
b. Any proposed transferee, (lessees excepted) 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 the obligations of Redeveloper under this Contract; and
c. There shall be submitted to the Authority for review, not less than
ten (10) days prior to the proposed execution thereof, all instruments and other legal
documents involved in the transfer or described in this Contract; and if disapproved by the
Authority, its disapproval and reasons therefore shall be indicated to Redeveloper in
writing.
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The creation of the master deed and condominium association would be done for
the purpose of allowing ownership rights to units within the development to be
sold. This should not create any issues with regard to Tax Increment Financing
or redevelopment of this site.
Recommendation
Staff is recommending that the CRA move to approve the Assignment and
Assumption Agreement and Authorize the Chair to sign on behalf of the CRA.
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640449v 1
1
ASSIGNMENT AND ASSUMPTION OF REDEVELOPMENT CONTRACT
THIS ASSIGNMENT AND ASSUMPTION OF REDEVELOPMENT CONTRACT
("Assignment") is made and entered into and effective as of ________________, 2018, between
SUPER MARKET DEVELOPERS, INC., a Missouri corporation ("Assignor"), KEN-RAY, L.L.C.,
a Nebraska limited liability company ("Assignee"),and the COMMUNITY REDEVELOPMENT
AUTHORITY OF GRAND ISLAND, NEBRASKA (the "Authority").
RECITALS:
The following Recitals are a material part of this Assignment.
A. The Authority and Assignor entered into that certain Redevelopment Contract
dated June 5, 2015 (the "Agreement"), with respect to the redevelopment of certain property
located in Grand Island, Hall County, Nebraska, as more fully described in the Agreement (the
"Property").
B. Assignor now desires to transfer the Property and assign all of its right, title and
interest in and to the Agreement to Assignee.
C. Assignee desires to accept the transfer and the assignment from Assignor and to
assume all obligations of Assignor as redeveloper under the Agreement.
D. Assignor and Assignee desire to obtain the requisite written consent of the
Authority prior to transferring the Property and assigning the Redevelopment Contract.
E. The Authority is willing to grant its written consent to the transfer of the Property
and the assignment of the Redevelopment Contract from Assignor to Assignee.
NOW, THEREFORE, in consideration of the above Recitals, all of which are hereby
incorporated into the terms of this Assignment, and in further consideration of the mutual
covenants and agreements contained in this Assignment, the receipt, adequacy and sufficiency of
which are hereby acknowledged, the parties to this Assignment hereby mutually covenant and
agree as follows:
1. Assignor does hereby sell, assign, transfer and convey to Assignee, all of
Assignor's right, title and interest in and to the Agreement. Notwithstanding the foregoing or
anything else to the contrary, Assignor retains all right, title and interest in and to the TIF Note (as
defined in the Agreement) and all rights to payments thereunder.
2. Assignee does hereby accept the assignment to it of all of Assignor's right, title and
interest in and to the Agreement and does hereby expressly assume all of the obligations of the
redeveloper under the Agreement as to all such obligations arising or accruing from and after the
effective date of this Assignment, and does hereby covenant and agree to fully and faithfully
perform, observe and comply with all of the covenants, agreements and conditions and other
terms and provisions stated in the Agreement, which under the terms of the Agreement are to be
performed, observed and complied with by the redeveloper thereunder from and after the
effective date of the Assignment.
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640449v 1
2
3. Assignor does hereby agree to indemnify, protect and save harmless Assignee
from and against any and all costs, expenses, claims, losses or damages (including attorney's
fees and costs of defense) arising by reason of Assignor's breach of any of the terms or conditions
of the Agreement prior to the effective date of this Assignment. Assignee does hereby agree to
indemnify, protect and save harmless Assignor from and against any and all costs, expenses,
claims, losses or damages (including attorney's fees and costs of defense) arising by reason of
Assignee's breach of any of the terms or conditions of the Agreement after the effective date of
this Assignment.
4. The Authority does hereby consent to the transfer of the Property from Assignor to
Assignee and to the above and foregoing Assignment on the conditions herein contained, and
does hereby represent and warrant with and to Assignor and Assignee as follows:
(a) The Agreement has not been amended or otherwise modified and is in full
force and effect.
(b) All of the covenants, agreements, conditions and other terms and
provisions stated in the Agreement, which were or are to be performed, observed and
complied with by Assignor or the Authority have been fully and faithfully performed,
observed and complied with to the effective date hereof and the Agreement is free and
clear of any breach, violation or default thereunder.
5. In consideration of the assumption by Assignee hereunder, the Authority hereby
releases Assignor from any future liability and obligations which arise or accrue under the
Agreement from and after the effective date of this Assignment.
6. Assignee directs, and the Authority acknowledges and agrees, that from and after
the effective date hereof notices to be given to the redeveloper under the Agreement shall be
delivered to Ken-Ray, L.L.C., 2502 A North Webb Road, Grand Island, Nebraska 68803, Attn:
Raymond J. O’Connor and the Assignor
7. The parties each hereby acknowledge that this Assignment may be executed in
one or more counterparts, all of which together shall constitute one and the same instrument, may
be exchanged by facsimile or electronic transmission and that the facsimile or electronic copies of
each party's respective signature shall be binding as if the same were an original signature.
[SIGNATURE PAGE FOLLOWS]
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640449v 1
3
IN WITNESS WHEREOF, this Assignment is executed by the parties effective as of the
day and year first written above.
ASSIGNOR:
SUPER MARKET DEVELOPERS, INC.,
a Missouri corporation
By:
Name:
Title:
ASSIGNEE:
KEN-RAY, L.L.C.,
a Nebraska limited liability company
By:
Raymond J. O’Connor, Managing Member
THE AUTHORITY:
COMMUNITY REDEVELOPMENT AUTHORITY
OF GRAND ISLAND, NEBRASKA
By:
Chair or Vice Chair
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