01-09-2019 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, January 9, 2019
Regular Meeting Packet
Board Members:
Tom Gdowski - Chairman
Glen Murray – Vice Chairman
Sue Pirnie
Glenn Wilson
Krae Dutoit
4:00 PM
Community Meeting Room City Hall
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Call to Order
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for
Future Agenda Items form located at the Information Booth. If the issue can be handled administratively
without Council action, notification will be provided. If the item is scheduled for a meeting or study
session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve
time to speak. Please come forward, state your name and address, and the Agenda topic on which you will
be speaking.
DIRECTOR COMMUNICATION
This is an opportunity for the Director to comment on current events, activities, and issues of interest to
the commission.
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Community Redevelopment
Authority (CRA)
Wednesday, January 9, 2019
Regular Meeting
Item A1
Agenda
Staff Contact:
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COMMUNITY REDEVELOPMENT AUTHORITY
AGENDA MEMORANDUM
4 p.m. Wednesday, January 9, 2019
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 December 12, 2018, are submitted for approval. A MOTION is in
order.
3. APPROVAL OF FINANCIAL REPORTS. Financial reports for the period of
December 1 through 31, 2018 are submitted for approval. A MOTION is in order.
4. APPROVAL OF BILLS. Payment of bills in the amount of $43,916.46 is submitted
for approval. A MOTION is in order.
5. REVIEW OF COMMITTED PROJECTS AND CRA PROPERTIES.
6. RECOMMENDATION REDEVELOPMENT PLAN AMENDMENT CRA AREA 1
411 W 3rd STREET THE FIRST FLOOR OF THE OLD SEARS BUILIDING–
PARAMOUNT DEVELOPMENT LLC. Concerning an amendment to the
redevelopment plan for CRA Area No. 1 to allow for redevelopment 411 W. Third
(the 1st story at the west end of the Old Sears Building) to include one, one bedroom
first floor apartment and 6,500 square feet of commercial space. The developer is
requesting $199,000 of 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 292 is in order.
7. REDEVELOPMENT PLAN AMENDMENT CRA AREA 1 112 E 3rd STREET-
WING PROPERTIES Concerning an amendment to the redevelopment plan for CRA
Area No. 1 to allow for redevelopment 112 E. Third (the center section of the
Williamson Interior Building) to include one, second floor apartment and main level
commercial space. The developer is requesting $105,095 of 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 293 (forward to Regional Planning
Commission) and Resolution 294 (30-day intent notice to city council) is in order.
8. REDEVELOPMENT PLAN AMENDMENT CRA AREA 1 110 W 2nd STREET GI
MUSIC BUILDING–Rawr Holdings LLC. Concerning an amendment to the
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redevelopment plan for CRA Area No. 1 to allow for redevelopment 110 W. Second
(GI Music Building) to include two second floor apartments and main level
commercial space. The developer is requesting $75,031 of 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 295 (forward to Regional Planning
Commission) and Resolution 296 (30-day intent notice to city council) is in order.
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Community Redevelopment
Authority (CRA)
Wednesday, January 9, 2019
Regular Meeting
Item B1
Minutes 12-12-18
Staff Contact:
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OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
December 12, 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 December 12, 2018 at Bosselman Offices,
1607 S. Locust Street. Notice of the meeting was given in the December 5, 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, Krae Dutoit and Glenn Wilson. Also present
were: Director Chad Nabity, Planning Administrative Assistant Norma Hernandez,
Planner 1 Rashad Moxey, City Administrator Marlan Ferguson, Assistant City
Administrator Brent Clark, City Council President Vaughn Minton and Brian Schultz from
the Grand Island Finance Department.
2.APPROVAL OF MINUTES.
A motion for approval of the Minutes for the November 14, 2018 meeting was made by
Wilson and second by Dutoit. Upon roll call vote, all present voted aye.
Motion carried 4-0.
3.APPROVAL OF FINANCIAL REPORTS.
Brian Schultz reviewed the financials from November 1st, 2018 to November 30th, 2018.
A motion for approval of the financial reports was made by Murray and second by Wilson.
Upon roll call vote, all present voted aye. Motion carried 4-0.
4.APPROVAL OF BILLS.
The bills were reviewed by Brian Shultz. A motion was made by Dutoit and second by
Murray to approve the bills in the amount of $4,044.94. Upon roll call vote, all present
voted aye. Motion carried 4-0.
5.REVIEW OF COMMITTED PROJECTS & CRA PROPERTY.
The committed projects and CRA properties were reviewed by Nabity.
The Bosselman project and Take Flight project were added to the façade projects. There is
$500,000 of committed projects with a projected $400,000 to be paid out this year. The
Hedde Building includes $100,000 from next year’s budget if funding is available.
Mendez has not returned any messages. There is no policy in place before reallocating
funding. The Neilson project still not moving forward. It is possible that they may decide
not to move forward. The contract for the Old Sear’s project is moving forward the
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contract is included in the packet. We are anticipating getting bills and paid receipts for
Peaceful Root within the next two months. Take Flight received their occupancy permit
and should be submitting a request for payment on the life safety grant.
6.Redevelopment Plan Amendment for CRA Area #26 south of Capital Avenue and
east of the Central Nebraska Railroad line being platted as the Orchard Subdivision
– Orchard LLC/Hoppe Homes LP.
A.Consideration of Resolution 288 – Forward a Redevelopment Plan Amendment
to the Grand Island City Council for redevelopment of property located south of
Capital Avenue and east of the Central Nebraska Railroad line being platted as
the Orchard Subdivision – Orchard LLC/Hoppe Homes LP.
Nabity stated CRA sent this to the Planning Commission and found the plan use for
residential development is consistent with comprehensive plan. The resolution will
forward the plan to council. If the redevelopment plan is approved by council, that would
authorize the CRA to a redevelopment contract. This is proposed to go to City Council on
February 12, 2019. Nabity also stated the Grand Island Public school system did show up
at the Planning Commission Meeting and spoke on the attendance impact of Copper
Creek. Similar impacts are likely with this project.
A motion was made by Murry and second by Dutoit to approve Resolution 288. Upon roll
call vote all, voted aye. Motion carried 4-0.
7.Redevelopment Contract for Paramount Development LLC. authorizing the
use of Tax Increment Financing to aid in for redevelopment of property
located at 411 W. Third Street for residential purposes.
A.Consideration of Resolution 289-
Nabity explained this is the west end upper story of the Sears building,
development of four apartments with the exiting on the first floor. The City Council
did approve the Redevelopment plan. The contract would allow them to get started
on the project. This would allow $159,800 in TIF over the course of 15 years.
A motion was made by Dutoit and second by Wilson to approve Resolution 289 and
authorize the Chair to sign the redevelopment contract. Upon roll call vote all voted aye.
Motion carried 4-0.
8.Redevelopment Plan Amendment for CRA Area #1 for the main floor
commercial and residential development of the west side of the old Sears
building at 411 W. 3rd Street. This is the second phase of redevelopment for
the Sears Building. – Paramount Development LLC.
a.Consideration of Resolution 290 – Forward a Redevelopment Plan
Amendment to the Hall County Regional Planning Commission for
redevelopment of the main floor of the west side of the old Sears
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building at 411 W. 3rd Street for commercial and residential purposes –
Paramount Development LLC.
b.Consideration of Resolution 291 – Resolution of Intent to enter into a
Site Specific Redevelopment Contract and Approval of related actions
30-day notice to city council for redevelopment of the main floor of the
west side of the old Sears building at 411 W. 3rd Street for commercial
and resident purposes – Paramount Development LLC.
Paramount Development does have a contract to purchase 6500 sq. ft. space on the
main floor to develop as commercial or retail use with one 500 sq. ft. apartment
toward the back of the building that would be handicap assessable and would likely
be a short-term rental. They are requesting $199,000 in TIF.
A motion was made by Murray and second by Wilson to approve Resolution 290 and
Resolution 291. Upon roll call vote 3 voted aye with Gdowski abstaining.
Motion carried 3-1.
9.Façade Improvement Project Old City Hall
Nabity explained this is the next phase of the Old City Hall project. They will change the
banners above the doors, add hard board paneling and re-tuck pointing the entire
building. They are looking at some of the uplighting of the building. The original
request was for $157,000 but will move forward with the project with a grant of
$100,000.
A motion was made by Wilson and second by Dutoit to approve $100,000 of Façade
Improvement Project funds for Old City Hall. Upon roll call vote all voted aye. Motion
carried 4-0.
10. Life Safety Project 112 E. Third Street Wing Properties.
Nabity stated this is the next phase of the Williamson’s Furniture building. A single 3
bedroom upper story apartment. No reserved parking is available, off street parking is
available. They are requesting $20,000 to help with the Life Safety.
A motion was maybe by Dutoit second Murray by to approve $20,000 of Life Safety
Grant to Wing Properties, 112 E. Third Street. Upon roll call vote all voted aye. Motion
carried 4-0.
11. Life Safety Project Hedde Building Modifications 201 – 205 W. 3rd
Nabity explained this was an amendment that they requested. They did not move
forward with the historic tax credits. They are now proposing 18 one bedroom
apartments and 2 two bedroom apartments. They are requesting an additional $70,000 in
Life Safety funding. This will increase the life safety grant for this project to $310,000.
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A motion was made by Murry second by Dutoit to approve an additional $70,000 of Life
Safety Grant funding to Hedde Building 201-205 W. 3rd Street. Upon roll call vote all
voted aye. Motion carried 4-0.
12. Life Safety Project 110 W. 2nd Street Rawr Holdings
Nabity stated this building is the Grand Island old music building to the east of the Brown
Hotel. They are proposing on building 2 units. A small one bedroom unit and a 2
bedroom unit on the second floor. The first floor will be commercial use. No reserved
parking. They are requesting $35,000.
A motion was made by Wilson second by Murray to approve $35,000 of Life Safety
Grant to Rawr Holdings, 110 W. 2nd Street. Upon roll call vote all voted aye. Motion
carried 4-0.
13. Director’s Report
A TIF application for a request of about $360,000 will be coming forward next meeting
from Amur Financial. They purchased the Wells Fargo building and will be redoing the
inside and the outside.
A City Council study session is scheduled on January 15, 2019 for TIF. Council President
Vaughn Minton explained council members want more information to understand the
process and plan of TIF.
14. Adjournment
Gdowski adjourned the meeting at 4:55 p.m.
The next meeting is scheduled for 4 p.m., Wednesday, January 9, 2019.
Respectfully Submitted
Norma Hernandez
Administrative Assistant
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Community Redevelopment
Authority (CRA)
Wednesday, January 9, 2019
Regular Meeting
Item C1
Review of Financial Reports for December 2018
Staff Contact:
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MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
December-18 YEAR TO DATE BUDGET BALANCE USED
CONSOLIDATED
Beginning Cash 256,284 675,752
REVENUE:
Property Taxes - CRA 3,483 39,994 489,000 449,006 8.18%
Property Taxes - Lincoln Pool 1,152 13,851 197,000 183,149 7.03%
Property Taxes -TIF's 1,648 105,516 3,149,000 3,063,035 3.35%
Loan Income (Poplar Street Water Line) - - 14,000 14,000 0.00%
Interest Income - CRA - 1,687 300 - 562.28%
Interest Income - TIF'S - 113 - -
Land Sales - - 100,000 100,000 0.00%
Other Revenue - CRA - 952,874 430,000 - 221.60%
Other Revenue - TIF's - - - -
TOTAL REVENUE 6,283 1,114,034 4,379,300 3,809,190 25.44%
TOTAL RESOURCES 262,568 1,114,034 5,055,052 3,809,190
EXPENSES
Auditing & Accounting - - 3,000 3,000 0.00%
Legal Services 525 525 3,000 2,475 17.50%
Consulting Services - - 5,000 5,000 0.00%
Contract Services 3,503 11,334 75,000 63,666 15.11%
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 34 500 466 6.90%
Travel & Training - - 1,000 1,000 0.00%
Other Expenditures - - - -
Office Supplies - - 1,000 1,000 0.00%
Supplies - - 300 300 0.00%
Land - 140 - -
Bond Principal - Lincoln Pool - 180,000 180,000 - 100.00%
Bond Interest - 9,163 17,065 7,903 53.69%
Husker Harvest Days - 200,000 200,000 - 100.00%
Façade Improvement - - 200,000 200,000 0.00%
Building Improvement - 303,677 926,000 622,323 32.79%
Other Projects - 25,000 25,000 0.00%
Bond Principal-TIF's - 881,379 3,149,000 2,400,312 27.99%
Bond Interest-TIF's - 3,526 - -
Interest Expense - - - -
TOTAL EXPENSES 4,045 1,589,778 5,003,315 3,549,894 31.77%
INCREASE(DECREASE) IN CASH 2,238 (475,743) (624,015)
ENDING CASH 258,523 (475,743) 51,737 -
CRA CASH 222,436
Lincoln Pool Tax Income Balance 38,882
TIF CASH (2,796)
Total Cash 258,523
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF DECEMBER 2018
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MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
December-18 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF DECEMBER 2018
GENERAL OPERATIONS:
Property Taxes - CRA 3,483 39,994 489,000 449,006 8.18%
Property Taxes - Lincoln Pool 1,152 13,851 197,000 183,149 7.03%
Interest Income 1,687 300 - 562.28%
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 952,874 430,000 - 221.60%
TOTAL 4,635 1,008,406 1,230,300 746,155 81.96%
WALNUT HOUSING PROJECT
Property Taxes - - -
Interest Income 113 - -
Other Revenue - - -
TOTAL - 113 - -
GIRARD VET CLINIC
Property Taxes 5,270 - -
TOTAL - 5,270 - -
GEDDES ST APTS-PROCON
Property Taxes - - -
TOTAL - - - -
SOUTHEAST CROSSING
Property Taxes - - -
TOTAL - - - -
POPLAR STREET WATER
Property Taxes 3,936 - -
TOTAL - 3,936 - -
CASEY'S @ FIVE POINTS
Property Taxes - - -
TOTAL - - - -
SOUTH POINTE HOTEL PROJECT
Property Taxes - - -
TOTAL - - - -
TODD ENCK PROJECT
Property Taxes 3,204 - -
TOTAL - 3,204 - -
JOHN SCHULTE CONSTRUCTION
Property Taxes 3,516 - -
TOTAL - 3,516 - -
PHARMACY PROPERTIES INC
Property Taxes - - -
TOTAL - - - -
KEN-RAY LLC
Property Taxes - - -
TOTAL - - - -
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MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
December-18 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF DECEMBER 2018
TOKEN PROPERTIES RUBY
Property Taxes 1,465 - -
TOTAL - 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 - -
TOTAL - 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)
TOTAL - 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)
TOTAL - 4,150 - (4,150)
WENN HOUSING PROJECT
Property Taxes 2,155 - (2,155)
TOTAL - 2,155 - (2,155)
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MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
December-18 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF DECEMBER 2018
COPPER CREEK 2014 HOUSES
Property Taxes 1,648 17,375 - (17,375)
TOTAL 1,648 17,375 - (17,375)
TC ENCK BUILDERS
Property Taxes 1,849 - (1,849)
TOTAL - 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 19,134 - (19,134)
TOTAL - 19,134 - (19,134)
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)
TOTAL - 40,004 - (40,004)
TOTAL REVENUE 6,283 1,114,034 4,379,300 3,849,194 25.44%
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MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
December-18 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF DECEMBER 2018
EXPENSES -
CRA
GENERAL OPERATIONS:
Auditing & Accounting - 3,000 3,000 0.00%
Legal Services 525 525 3,000 2,475 17.50%
Consulting Services - 5,000 5,000 0.00%
Contract Services 3,503 11,334 75,000 63,666 15.11%
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 34 500 466 6.90%
Travel & Training - 1,000 1,000 0.00%
Office Supplies - 1,000 1,000 0.00%
Supplies - 300 300 0.00%
Land 140 - -
Bond Principal - Lincoln Pool 180,000 180,000 - 100.00%
Bond Interest - Lincoln Pool 9,163 17,065 7,903 53.69%
PROJECTS
Husker Harvest Days 200,000 200,000 - 100.00%
Façade Improvement - 200,000 200,000 0.00%
Building Improvement 303,677 926,000 622,323 0.00%
Other Projects - 25,000 25,000 0.00%
TOTAL CRA EXPENSES 4,045 704,873 1,854,315 1,149,582 38.01%
WALNUT HOUSING PROJECT
Bond Principal 33,710 - -
Bond Interest 3,526 - -
TOTAL - 37,236 - -
GIRARD VET CLINIC
Bond Principal 5,270 - -
TOTAL - 5,270 - -
GEDDES ST APTS - PROCON
Bond Principal - - -
TOTAL - - - -
SOUTHEAST CROSSINGS
Bond Principal - - -
TOTAL - - - -
POPLAR STREET WATER
Bond Principal 3,936 - -
TOTAL - 3,936 - -
CASEY'S @ FIVE POINTS
Bond Principal - - -
TOTAL - - - -
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MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
December-18 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF DECEMBER 2018
SOUTH POINTE HOTEL PROJECT
Bond Principal - - -
TOTAL - - - -
TODD ENCK PROJECT
Bond Principal 3,204 - -
TOTAL - 3,204 - -
JOHN SCHULTE CONSTRUCTION
Bond Principal 3,516 - -
TOTAL - 3,516 - -
PHARMACY PROPERTIES INC
Bond Principal - - -
TOTAL - - - -
KEN-RAY LLC
Bond Principal - - -
TOTAL - - - -
TOKEN PROPERTIES RUBY
Bond Principal 1,465 - -
TOTAL - 1,465 - -
GORDMAN GRAND ISLAND
Bond Principal - - -
TOTAL - - - -
BAKER DEVELOPMENT INC
Bond Principal - - -
TOTAL - - - -
STRATFORD PLAZA LLC
Bond Principal - - -
TOTAL - - - -
COPPER CREEK 2013 HOUSES
Bond Principal 2,159 - -
TOTAL - 2,159 - -
CHIEF INDUSTRIES AURORA COOP
Bond Principal - - -
TOTAL - - - -
TOKEN PROPERTIES KIMBALL STREET
Bond Principal 1,299 - -
TOTAL - 1,299 - -
GI HABITAT FOR HUMANITY
Bond Principal - - -
TOTAL - - - -
AUTO ONE INC
Bond Principal - - -
TOTAL - - - -
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MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
December-18 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF DECEMBER 2018
EIG GRAND ISLAND
Bond Principal - - -
TOTAL - - - -
TOKEN PROPERTIES CARY STREET
Bond Principal 4,150 - -
TOTAL - 4,150 - -
WENN HOUSING PROJECT
Bond Principal 2,155 - -
TOTAL - 2,155 - -
COPPER CREEK 2014 HOUSES
Bond Principal 15,727 - -
TOTAL - 15,727 - -
TC ENCK BUILDERS
Bond Principal 1,849 - -
TOTAL - 1,849 - -
SUPER MARKET DEVELOPERS
Bond Principal - - -
TOTAL - - - -
MAINSTAY SUITES
Bond Principal - - -
TOTAL - - - -
TOWER 217
Bond Principal - - -
TOTAL - - - -
COPPER CREEK 2015 HOUSES
Bond Principal 14,247 - -
TOTAL - 14,247 -
NORTHWEST COMMONS
Bond Principal - - -
TOTAL - - -
HABITAT - 8TH & SUPERIOR
Bond Principal - - -
TOTAL - - -
KAUFMAN BUILDING
Bond Principal - - -
TOTAL - - -
TALON APARTMENTS
Bond Principal - - -
TOTAL - - -
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MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
December-18 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF DECEMBER 2018
VICTORY PLACE
Bond Principal 40,004 - -
TOTAL - 40,004 -
FUTURE TIF'S
Bond Principal 748,688 3,149,000 2,400,312
TOTAL - 748,688 3,149,000 2,400,312
TOTAL EXPENSES 4,045 1,589,778 5,003,315 3,549,894 31.77%
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01/02/2019 10:31 |CITY OF GRAND ISLAND |P 1
briansc |BALANCE SHEET FOR 2019 3 |glbalsht
NET CHANGE ACCOUNT
FUND: 900 COMMUNITY REDEVELOPMENT AUTHOR FOR PERIOD BALANCE__________________________________________________________________________________________________________
ASSETS
900 11110 OPERATING CASH 2,238.35 258,522.87
900 11120 COUNTY TREASURER CASH .00 140,410.38
900 11305 PROPERTY TAXES RECEIVABLE .00 213,070.00
900 11500 INTEREST RECEIVABLE .00 808.64
900 14100 NOTES RECEIVABLE .00 125,290.09
900 14700 LAND .00 490,485.75_______________________________________
TOTAL ASSETS 2,238.35 1,228,587.73_______________________________________
LIABILITIES
900 22100 LONG TERM DEBT .00 -105,250.00
900 22400 OTHER LONG TERM DEBT .00 -930,000.00
900 22900 ACCRUED INTEREST PAYABLE .00 -5,344.79
900 25100 ACCOUNTS PAYABLE .00 -65,572.06
900 25315 DEFERRED REVENUE-PROPERY TAX .00 -206,904.00_______________________________________
TOTAL LIABILITIES .00 -1,313,070.85_______________________________________
FUND BALANCE
900 39110 INVESTMENT IN FIXED ASSETS .00 -490,485.75
900 39112 FUND BALANCE-BONDS .00 909,959.91
900 39120 UNRESTRICTED FUND BALANCE .00 -810,734.37
900 39500 REVENUE CONTROL -6,283.29 -1,114,034.26
900 39600 EXPENDITURE CONTROL 4,044.94 1,589,777.59_______________________________________
TOTAL FUND BALANCE -2,238.35 84,483.12_______________________________________
TOTAL LIABILITIES + FUND BALANCE -2,238.35 -1,228,587.73=======================================
** END OF REPORT - Generated by Brian Schultz **
Grand Island Regular Meeting - 1/9/2019 Page 22 / 106
Community Redevelopment
Authority (CRA)
Wednesday, January 9, 2019
Regular Meeting
Item D1
Approval of Bills
Staff Contact:
Grand Island Regular Meeting - 1/9/2019 Page 23 / 106
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Community Redevelopment
Authority (CRA)
Wednesday, January 9, 2019
Regular Meeting
Item E1
Review of Committed Projects and CRA Properties
Staff Contact:
Grand Island Regular Meeting - 1/9/2019 Page 25 / 106
COMMITTED PROJECTS REMAINING
GRANT
AMOUNT
2019 FISCAL YR 2020 FISCAL YR 2021 FISCAL YR ESTIMATED
COMP
Bosselman-1607 S. Locust (11-14-18) $ 50,000.00 $ 50,000.00 Summer 2019
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
Old City Hall -208 N. Pine St (12-12-18) $ 100,000.00 $ 100,000.00 Summer 2019
Take Flight 209 W. 3rd (11-14-18) $ 50,000.00 $ 50,000.00 Summer 2019
Total Committed $ 600,000.00 $ 500,000.00 $ 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) $ 310,000.00 $ 310,000.00 Spring 2020
Neilsen 207 W. 3rd (3-21-18) $ 20,000.00 $ 20,000.00 Summer 2019
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 Spring 2019
Rawr Holdings 110 W 2nd (12-12-18) $ 35,000.00 $ 35,000.00 Winter 2019
Take Flight 209 W. 3rd (11-8-17) $ 35,000.00 $ 35,000.00
Wing Properties 112 E 3rd (12-12-18) $ 20,000.00 $ 20,000.00 Winter 2019
Total Committed F&L Safety Grant $ 550,000.00 $ 550,000.00 $ - $ -
BUDGET COMMITTED LEFT
Life Safety Budgeted 2019 $ 200,000.00 $ 150,000.00 $ 50,000.00
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 $ 350,000.00 $ (25,000.00)
Less committed ($1,050,000.00) ($100,000.00)
Balance remaining $ (700,000.00) $ (125,000.00)
BUDGET PAID LEFT
Building Improvements * $ 926,000.00 $ 303,677.00 $ 622,323.00
*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
December 31, 2018
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Community Redevelopment
Authority (CRA)
Wednesday, January 9, 2019
Regular Meeting
Item I1
Redevelopment Plan Amendment CRA #1 Paramount
Development LLC 411 W Third Sears 2
Staff Contact:
Grand Island Regular Meeting - 1/9/2019 Page 27 / 106
Paramount Development LLC (Old Sears Commercial and Residential 2nd Project)
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 292
A RESOLUTION RECOMMENDING APPROVAL OF A REDEVELOPMENT PLAN OF
THE CITY OF GRAND ISLAND, NEBRASKA; RECOMMENDING APPROVAL OF A
REDEVELOPMENT PROJECT OF THE CITY OF GRAND ISLAND, NEBRASKA;
APPROVING A COST BENEFIT ANALYSIS FOR SUCH PROJECT; AND APPROVAL OF
RELATED ACTIONS
WHEREAS, the Mayor and Council of the City of Grand Island, Nebraska (the “City”), upon
the recommendation of the Planning Commission of the City of Grand Island, Nebraska (the “Planning
Commission”), and in compliance with all public notice requirements imposed by the Community
Development Law, Chapter 18, Article 21, Reissue Revised Statutes of Nebraska, as amended (the
“Act”), duly declared the redevelopment area legally described on Exhibit A attached hereto (the
“Redevelopment Area”) to be blighted and substandard and in need of redevelopment; and
WHEREAS, pursuant to and in furtherance of the Act, a Redevelopment Plan (the
“Redevelopment Plan”), has been prepared by Community Redevelopment Authority of Grand Island,
Nebraska, (the “Authority”) pursuant to an application by Paramount Development LLC (the
“Redeveloper”), in the form attached hereto as Exhibit B, for the purpose of redeveloping
Redevelopment Area legally described on Exhibit A, referred to herein as the Project Area (the “Project
Area”); and
WHEREAS, pursuant to the Redevelopment Plan, the Authority would agree to incur
indebtedness and make a grant for the purposes specified in the Redevelopment Plan (the “Project”), in
accordance with and as permitted by the Act; and
WHEREAS, the Authority has conducted a cost benefit analysis of the Project (the “Cost
Benefit Analysis”) pursuant to Section 18-2113 of the Act, a which is included in the Redevelopment
Plan attached hereto as Exhibit B; and
WHEREAS, the Authority has made certain findings and pursuant thereto has determined that it
is in the best interests of the Authority and the City to approve the Redevelopment Plan and approve the
Redevelopment Project and to approve the transactions contemplated thereby.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA AS FOLLOWS:
Section 1. The Authority has determined that the proposed land uses and building requirements
in the Redevelopment Plan for the Project Area are designed with the general purposes of accomplishing,
and in conformance with the general plan of the City, a coordinated, adjusted, and harmonious
development of the City and its environs which will, in accordance with present and future needs,
promote health, safety, morals, order, convenience, prosperity and the general welfare, as well as
efficiency in economy in the process of development; including, among other things, adequate provision
for traffic, vehicular parking, the promotion of safety from fire, panic, and other dangers, adequate
provisions for light and air, the promotion of the healthful and convenient distribution of population, the
provision of adequate transportation, water, sewerage, and other public utilities, schools, parks,
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Paramount Development LLC (Old Sears Commercial and Residential 2nd Project)
recreational and communitive facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention of the recurrence of
unsanitary or unsafe dwelling accommodations, or conditions of blight.
Section 2. The Authority has conducted a Cost Benefit Analysis for the Project, included in the
Redevelopment Plan attached hereto as Exhibit B, in accordance with the Act, and has found and hereby
finds that the Project would not be economically feasible without the use of tax increment financing, the
Project would not occur in the Project Area without the use of tax increment financing and the costs and
benefits of the Project, including costs and benefits to other affected political subdivisions, the economy
of the community, and the demand for public and private services, have been analyzed and have been
found to be in the long term best interests of the community impacted by the Project.
Section 3. In compliance with section 18-2114 of the Act, the Authority finds and determines as
follows: (a) the Redevelopment Area constituting the Redevelopment Project will not be acquired by the
Authority and the Authority shall receive no proceeds from disposal to the Redeveloper; (b) the estimated
cost of project acquisition and the estimated cost of preparation for redevelopment including site work,
onsite utilities and related costs are described in detail in Exhibit B attached hereto; (c) the method of
acquisition of the real estate shall be by private contract by the Redeveloper and not by condemnation;
and (d) the method of financing the Redevelopment Project shall be by issuance of tax increment revenue
bond issued in the approximate amount of $199,000 which shall be granted to the Redeveloper and from
additional funds provided by the Redeveloper. No families will be displaced from the Redevelopment
Project Area as a result of the project.
Section 4. The Authority hereby recommends to the City approval of the Redevelopment Plan
and the Redevelopment Project described in the Redevelopment Plan.
Section 5. All prior resolutions of the Authority in conflict with the terms and provisions of this
resolution are hereby expressly repealed to the extent of such conflicts.
Section 6. This resolution shall be in full force and effect from and after its passage and
approval.
PASSED AND APPROVED this 9th day of January, 2019.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND NEBRASKA
ATTEST: By: ___________________________________
Chair
By: ___________________________________
Secretary
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Paramount Development LLC (Old Sears Commercial and Residential 2nd Project)
EXHIBIT A
LEGAL DESCRIPTION OF REDEVELOPMENT PROJECT AREA
The main floor of the building on the easterly 44 feet of Lot Three (3) in Block Sixty-Three
(63) in the Original Town, now City of Grand Island, Hall County, Nebraska.
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Paramount Development LLC (Old Sears Commercial and Residential 2nd Project)
* * * * *
EXHIBIT B
FORM OF REDEVELOPMENT PLAN
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Redevelopment Plan Amendment
Grand Island CRA Area 1
December 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 1.
Executive Summary:
Project Description
THE REDEVELOPMENT OF A PORTION OF THE OLD SEARS BUILDING
LOCATED AT 411 W. 3RD STREET FOR COMMERCIAL AND RESIDENTIAL
USES, INCLUDING ACQUISTION, FIRE/LIFE SAFETY IMPROVEMENTS AND
BUILDING REHABILITATION AND REMODELING.
The use of Tax Increment Financing to aid in rehabilitation expenses associated with
redevelopment of the first floor the west side of Old Sears located at 411 W. 3rd street for
6,500 square foot of commercial space and one 500 square foot luxury one bedroom
accessible apartment.This is the first of the anticipated additional TIF applications will
be proposed for commercial uses within the remainder of the building. The use of Tax
Increment Financing is an integral part of the development plan and necessary to make
this project profitable. The project will result in renovating a portion of this building into
a market rate residential unit and 6,500 square feet of first floor commercial space. This
project would not be feasible without the use of TIF.
Paramount Development LLC is the purchasing the rights to this section of the building
through a condominium arrangement. They are purchasing the property for $52,000. The
purchase price is included as an eligible TIF activity. The building is currently vacant.
The developer is responsible for and has provided evidence that they can secure adequate
debt financing to cover the costs associated with the remodeling and rehabilitation of this
building. The Grand Island Community Redevelopment Authority (CRA) intends to
pledge the ad valorem taxes generated over the 15 year period beginning January 1, 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”)
The second floor and necessary first floor exits and entrances at 411 W. 3rd Street in
Grand Island Nebraska. The actual legal will be provided with the master deed for the
condominium.
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Legal Descriptions: The first floor of the building on the easterly 44 feet of Lot Three
(3) in Block Sixty-Three (63) in the Original Town, now City of Grand Island, Hall
County, Nebraska.
Existing Land Use and Subject Property
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The tax increment will be captured for the tax years the payments for which become
delinquent in years 2020 through 2034 inclusive.
The real property ad valorem taxes on the current valuation will continue to be paid
to the normal taxing entities. The increase will come from rehabilitation of this
portion of the building for commercial and residential uses as permitted in the B3
Heavy Business Zoning District.
Statutory Pledge of Taxes.
In accordance with Section 18-2147 of the Act and the terms of the Resolution
providing for the issuance of the TIF Note, the Authority hereby provides that any ad
valorem tax on the Redevelopment Project Area for the benefit of any public body be
divided for a period of fifteen years after the effective date of this provision as set forth in
the Redevelopment Contract, consistent with this Redevelopment Plan. Said taxes shall
be divided as follows:
a. That portion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the redevelopment project valuation shall
be paid into the funds, of each such public body in the same proportion as all other taxes
collected by or for the bodies; and
b. That portion of the ad valorem tax on real property in the
redevelopment project in excess of such amount, if any, shall be allocated to and, when
collected, paid into a special fund of the Authority to pay the principal of; the interest on,
and any premiums due in connection with the bonds, loans, notes, or advances on money
to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise,such
Authority for financing or refinancing, in whole or in part, a redevelopment project.
When such bonds, loans, notes, advances of money, or indebtedness including interest
and premium due have been paid, the Authority shall so notify the County Assessor and
County Treasurer and all ad valorem taxes upon real property in such redevelopment
project shall be paid into the funds of the respective public bodies.
Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged
to the repayment of loans or advances of money, or the incurring of any indebtedness,
whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in
whole or in part, the redevelopment project, including the payment of the principal of,
premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness.
Redevelopment Plan Amendment Complies with the Act:
The Community Development Law requires that a Redevelopment Plan and Project
consider and comply with a number of requirements. This Plan Amendment meets the
statutory qualifications as set forth below.
1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on December 19, 2000.[§18-2109] Such
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declaration was made after a public hearing with full compliance with the public
notice requirements of §18-2115 of the Act.
2. Conformation to the General Plan for the Municipality as a whole. [§18-2103 (13)
(a) and §18-2110]
Grand Island adopted a Comprehensive Plan on July 13, 2004. This redevelopment plan
amendment and project are consistent with the Comprehensive Plan, in that no changes in
the Comprehensive Plan elements are intended. This plan merely provides funding for
the developer to rehabilitate the building for permitted uses on this property as defined by
the current and effective zoning regulations. The Hall County Regional Planning
Commission held a public hearing at their meeting on January 2, 2019 and passed
Resolution 2019-0? 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 at the time it was
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:
The Redevelopment Plan for Area 1 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority.
b. Demolition and Removal of Structures:
The project to be implemented with this plan does not provide for the demolition and
removal any structures on this property. Demotion of internal structures to accommodate
the redevelopment is anticipated and permitted.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. All of the area
around the site in private ownership is planned for Downtown Commercial development;
this includes housing and commercial uses within the same structure. This property is in
private ownership. [§18-2103(b) and §18-2111] The attached map also is an accurate site
plan of the area after redevelopment. [§18-2111(5)]
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City of Grand Island Future Land Use Map
Grand Island Regular Meeting - 1/9/2019 Page 36 / 106
d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned B3-Heavy Business zone. No zoning changes are anticipated with this
project. No changes are anticipated in street layouts or grades. No changes are
anticipated in building codes or ordinances. Nor are any other planning changes
contemplated. [§18-2103(b) and §18-2111]
e. Site Coverage and Intensity of Use
The developer is rehabilitating the existing building. The developer is not proposing to
increase the size of the building and current building meets the applicable regulations
regarding site coverage and intensity of use. [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. .
Electric utilities are sufficient for the proposed use of this building.
No other utilities would be impacted by the development.
The developer will be responsible for replacing any sidewalks damaged during
construction of the project.
No other utilities would be impacted by the development. [§18-2103(b) and §18-2111]
4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation. This property 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. Tom Gdowski, is
President of Equitable bank and most likely will be part of the bank approval of a loan for
this project.
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 purchasing the rights to just this portion of the property through a
condominium arrangement for $52,000. The estimated costs of rehabilitation of this
Grand Island Regular Meeting - 1/9/2019 Page 37 / 106
property is $484,0000, planning related expenses for Architectural and Engineering
services of $8,000 and are included as a TIF eligible expense. Legal, Developer and
Audit Fees of $9,600 including a reimbursement to the City and the CRA of $5,600 are
included as TIF eligible expense. The total of eligible expenses for this project exceeds
$540,000.
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 $199,000 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 2034.
c. Statement of feasible method of relocating displaced families.
No families will be displaced as a result of this plan.
7. Section 18-2113 of the Act requires:
Prior to recommending a redevelopment plan to the governing body for approval, an
authority shall consider whether the proposed land uses and building requirements in the
redevelopment project area are designed with the general purpose of accomplishing, in
conformance with the general plan, a coordinated, adjusted, and harmonious development
of the city and its environs which will, in accordance with present and future needs,
promote health, safety, morals, order, convenience, prosperity, and the general welfare, as
well as efficiency and economy in the process of development, including, among other
things, adequate provision for traffic, vehicular parking, the promotion of safety from
fire, panic, and other dangers, adequate provision for light and air, the promotion of the
healthful and convenient distribution of population, the provision of adequate
transportation, water, sewerage, and other public utilities, schools, parks, recreational and
community facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention of the
recurrence of insanitary or unsafe dwelling accommodations or conditions of blight.
The Authority has considered these elements in proposing this Plan Amendment. This
amendment, in and of itself will promote consistency with the Comprehensive Plan. This
will have the intended result of preventing recurring elements of unsafe buildings and
blighting conditions. This will accomplish the goal of both the Downtown Business
Improvement District and the Grand Island City Council of increasing the number of
residential units available in the Downtown area and refurbish street level commercial
space that has been vacant for several years.
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8. Time Frame for Development
Development of this project is anticipated to be completed between February 2019 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 an historic building in downtown Grand Island that will be preserved with this
project. The addition of a new residential unit is consistent with goals to build 50 new
residential units in downtown Grand Island by 2019 and with the goals of the 2014 Grand
Island housing study and Grow Grand Island. The primary use of the street level space
for commercial development is consistent with the long term development plans for
Downtown.
10. Cost Benefit Analysis Section 18-2113 of the Act, further requires the Authority
conduct a cost benefit analysis of the plan amendment in the event that Tax Increment
Financing will be used. This analysis must address specific statutory issues.
As authorized in the Nebraska Community Development Law, §18-2147, Neb. Rev. Stat.
(2012), the City of Grand Island has analyzed the costs and benefits of the proposed
Redevelopment Project, including:
Project Sources and Uses. Approximately $199,000 in public funds from tax increment
financing provided by the Grand Island Community Redevelopment Authority will be
required to complete the project. This investment by the Authority will leverage
$393,600 in private sector financing; a private investment of $2.03 for every TIF dollar
invested.
Use of Funds Source of Funds.
Description TIF Funds Other
Grants Private Funds Total
Site Acquisition $52,000 _$0 $52,000
Legal and Plan* $9,600 $0 $9,600
Engineering/Arch $8,000 $0 $8,000
Renovation $129,400 $354,600 $484,000
Contingency $50,000 $50,000
TOTALS $199,000 $393,600 $603,600
Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2019,
valuation of approximately $52,000. Based on the 2017 levy this would result in a real
property tax of approximately $1,171. It is anticipated that the assessed value will
increase by $588,000 upon full completion, as a result of the site redevelopment. This
development will result in an estimated tax increase of over $13,245 annually. The tax
Grand Island Regular Meeting - 1/9/2019 Page 39 / 106
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 2019 assessed value: $ 52,000
Estimated value after completion $ 640,000
Increment value $ 588,000
Annual TIF generated (estimated) $ 13,245
TIF bond issue $ 199,000
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $52,000. The
proposed redevelopment will create additional valuation of $640,000. No tax shifts are
anticipated from the project. The project creates additional valuation that will support
taxing entities long after the project is paid off.
(b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
No additional public service needs have been identified. Existing water and waste
water facilities will not be impacted by this development. The electric utility has
sufficient capacity to support the development. It is not anticipated that this will impact
schools in any significant way. Fire and police protection are available and should not be
negatively impacted by this development. The addition of life safety elements to this
building including fire sprinklers and a second exit actually reduce the chances of
negative impacts to the fire department.
(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
This will provide additional housing and commercial space options in the downtown
area consistent with the planned development in Downtown Grand Island.
(d) Impacts on other employers and employees within the city or village and the
immediate area that are located outside of the boundaries of the area of the
redevelopment project; and
This project will not have a negative impact on other employers in any manner
different from any other expanding business within the Grand Island area. This will
provide housing options for employees of Downtown businesses that wish to live
Downtown and will refurbish Downtown commercial space.
(e) Impacts on student populations of school districts within the City or Village:
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This development will have a minimal impact on the Grand Island School
system as it will likely not result in any increased attendance. The unit to be
developed with this project is a one bedroom unit and unlikely to be a family unit,
especially for families with school age children.
The average number of persons per household in Grand Island for 2012 to 2016
according the American Community Survey is 2.65. One additional household in a one
bedroom unit would likely house a maximum of two 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 no additional school age children
generated by this development. 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. It is unlikely that there will be
any school age children associated with this project.
(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 Council, the Downtown BID, the CRA, and
Grow Grand Island to create additional housing units in downtown Grand Island.
Time Frame for Development
Development of this project is anticipated to be completed during between December of
2018 and December of 2019. The base tax year should be calculated on the value of the
property as of January 1, 2019. Excess valuation should be available for this project for
15 years 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 or an amount not to exceed $199,000 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 $603,000 on TIF eligible activities in excess of other grants given.
1 https://nces.ed.gov/ccd/districtsearch/district_detail.asp?ID2=3100016
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1522 S. Gunbarrel Rd, Grand Island, NE 68801
Paramount Development LLC
(308) 218-9497 (308) 381-1697
Sonja Weinrich - sonjaweinrich3140@gmail.com
Applicant is a newly formed real estate business, which has
mainly been focused on multi family and single family residential properties.
Gary and Sonja Weinrich currently own several residential rental properties
and are developing more multifamily housing units. Pat O'Neill is a demolition
and earthwork contractor with commercial and agricultural land.
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Grand Island Entrpreneirial Inc.- owned by
Ray O'Connor
The building will be split off with multiple condo agreements. Paramount
Development will purchase approximately 6500 sq ft of commercial space
office spaces. Common space would consist of men's and women's restroom
and hallways. Back portion of property will have a handicap accessible1 bed luxury
on main level. This project would mainly consist of development of commercial
apt with approx. 500 sq ft. New windows and doors added on 3rd St and Walnut St.
52,000
484,000
Grand Island Regular Meeting - 1/9/2019 Page 43 / 106
8,000
5,000
4,000
50,000
640,000
85,000
603,000
340000
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General Contractor is Paramount Development, 1522 S. Gunbarrel Rd,
Architect is Tobias Scott Gay 1470 31st Avenue, Columbus, NE 68601
402-562-6074
Engineer: Michael Spelenik 201 E. 2nd Street, Grand Island, NE 68801
308-384-8750
Grand Island, NE 68801 308-218-9497
Based on a market valuation of $100 per sq foot, we believe the completed
building will be worth approx $640,000. This should generate approximate
annual taxes of $14,000 for a 15 year total of $210,000.
Feb 1, 2019
July 1, 2019
NA NA
NA NA
210,000
TIF will generate
$178,000 of start up funding after bank interest.
Grand Island Regular Meeting - 1/9/2019 Page 45 / 106
We are requesting the maximum amount of TIF as permitted based upon
the assumed tax value after construction. We are requesting approximately
$210,000 in TIF to be allocated to allowable expenses including acquisition,
renovation expenses and new utilities.
A large financial gap exists on this project after
conventional financing is utilized. A combination of additional owner equity
and TIF funds will be needed to proceed with this project and make a
sufficient return.
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This is a newly formed LLC this year so there are no
financial statements available yet.
Gary and Sonja Weinrich own Weinrich Developments Inc and Pat O'Neill
owns O'Neill Wood Resources and O'Neill Transportation. Their companies
have all worked on numerous large projects. Weinrich Developments Inc.
just completed a TIF project at 206 S. Plum St. Gary & Sonja Weinrich and
Pat & Chris O'Neill are owners of Paramount Development LLC.
Grand Island Regular Meeting - 1/9/2019 Page 47 / 106
W/O TIF With TIF
Gross Residential and Commercial Rent $92,400.00 $92,400.00
Vacancy 5%$4,620.00 $4,620.00
Revenue $87,780.00 $87,780.00
Total Operating Expenses $26,000.00 $26,000.00
Net Operating Income $61,780.00 $61,780.00
Debt Service (P & I) Equitable Bank $49,776.00 $28,068.00
Estimated Taxes $14,000.00 $14,000.00
Estimated Insurance $5,000.00 $5,000.00
$68,776.00 $47,068.00
-$6,996.00 $14,712.00
Estimated Operating Proforma
411 W. 3rd St
Sears Building Main Level
Estimated Net Cash Flow
Grand Island Regular Meeting - 1/9/2019 Page 48 / 106
DESCRIPTION QTY UNIT TOTAL
Acquision 6400 S.F $52,000.00
1 Bedroom Apartment
Buildout 500 S.F $17,000.00
Cabinets, countertops & Hardware $4,000.00
Sink, disposal & faucet $750.00
Appliances 4 piece $2,400.00
Handicap accessible shower $5,000.00
Bathroom Tile and Accessories $1,000.00
Flooring-Vinyl Plank $2,000.00
Light Fixtures & 2 ceiling fans $700.00
Doors, Frames and Accessories $800.00
Vanity, faucet, hardware and ADA toilet $1,200.00
Medicine cabinet $100.00
2 windows added $3,000.00
Paint and primer $600.00
Plumbing $5,000.00
Electrical $5,000.00
HVAC $5,000.00
APARTMENT ESTIMATED TOTAL $53,550.00
Commercial Space
Demolition $14,250.00
Buildout various office spaces 5900 S.F.$125,000.00
New windows $50,000.00
Drop Ceiling 6400 S.F.$15,000.00
Lighting $17,500.00
Restroom Renovations $30,000.00
Flooring & Install $27,000.00
Décor $3,000.00
Window Coverings $2,000.00
INTERIOR TOTAL $283,750.00
Break room
Coffee and snack vending machine $6,400.00
2 Tables and chairs $1,000.00
Sink, faucet and hardware $700.00
Cabinets and hardware $2,100.00
Refrigerator and microwave $1,500.00
BREAK ROOM TOTAL $11,700.00
HVAC $20,000.00
Electrical $30,000.00
Plumbing $10,000.00
Fire Sprinklers 6400 S.F.$23,000.00
TOTAL $83,000.00
TOTAL CONSTRUCTION COSTS $484,000.00
Old Sears Building Renovation Estimate
Grand Island Regular Meeting - 1/9/2019 Page 49 / 106
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Community Redevelopment
Authority (CRA)
Wednesday, January 9, 2019
Regular Meeting
Item I2
Redevelopment Plan Amendment CRA #1 Wing Properties 112 E
Third
Staff Contact:
Grand Island Regular Meeting - 1/9/2019 Page 51 / 106
Redevelopment Plan Amendment
Grand Island CRA Area 1
January 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 1.
Executive Summary:
Project Description
THE REDEVELOPMENT OF A PORTION OF THE OLD WILLIAMSON
INTERIORS BUILDING LOCATED AT 112 E. 3RD STREET FOR COMMERCIAL
AND RESIDENTIAL USES, INCLUDING ACQUISTION, FIRE/LIFE SAFETY
IMPROVEMENTS AND BUILDING REHABILITATION AND REMODELING.
The use of Tax Increment Financing to aid in rehabilitation expenses associated with
redevelopment of the first floor the center portion of the Old Williamson Interiors
building located at 112 E. 3rd street for 2,650 square foot of commercial space on the
main floor and one apartment on the second floor. The use of Tax Increment Financing
is an integral part of the development plan and necessary to make this project profitable.
The project will result in renovating the second floor into a upper story residential unit
consistent with the plans approved by the Downtown Business Improvement District and
the Grand Island City Council. The first floor will be renovated for street level
commercial space. This project would not be feasible without the use of TIF.
Wing Properties purchased this building in 2014 and has been renovating the building in
phases since that time. The proportional cost of this building was $90,000 at the time of
purchase. The purchase price is included as an eligible TIF activity. This portion building
is currently vacant. The developer is responsible for and has provided evidence that they
can secure adequate debt financing to cover the costs associated with the remodeling and
rehabilitation of this building. The Grand Island Community Redevelopment Authority
(CRA) intends to pledge the ad valorem taxes generated over the 15 year period
beginning January 1, 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: The west third of Lot Seven (7) in Block Fifty Four (54) in the
Original Town, now City of Grand Island, Hall County, Nebraska. (Hall County Assessor
Parcel Number 400004240)
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Existing Land Use and Subject Property
Grand Island Regular Meeting - 1/9/2019 Page 53 / 106
The tax increment will be captured for the tax years the payments for which become
delinquent in years 2020 through 2034 inclusive.
The real property ad valorem taxes on the current valuation will continue to be paid
to the normal taxing entities. The increase will come from rehabilitation of this
portion of the building for commercial and residential uses as permitted in the B3
Heavy Business Zoning District.
Statutory Pledge of Taxes.
In accordance with Section 18-2147 of the Act and the terms of the Resolution
providing for the issuance of the TIF Note, the Authority hereby provides that any ad
valorem tax on the Redevelopment Project Area for the benefit of any public body be
divided for a period of fifteen years after the effective date of this provision as set forth in
the Redevelopment Contract, consistent with this Redevelopment Plan. Said taxes shall
be divided as follows:
a. That portion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the redevelopment project valuation shall
be paid into the funds, of each such public body in the same proportion as all other taxes
collected by or for the bodies; and
b. That portion of the ad valorem tax on real property in the
redevelopment project in excess of such amount, if any, shall be allocated to and, when
collected, paid into a special fund of the Authority to pay the principal of; the interest on,
and any premiums due in connection with the bonds, loans, notes, or advances on money
to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise,such
Authority for financing or refinancing, in whole or in part, a redevelopment project.
When such bonds, loans, notes, advances of money, or indebtedness including interest
and premium due have been paid, the Authority shall so notify the County Assessor and
County Treasurer and all ad valorem taxes upon real property in such redevelopment
project shall be paid into the funds of the respective public bodies.
Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged
to the repayment of loans or advances of money, or the incurring of any indebtedness,
whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in
whole or in part, the redevelopment project, including the payment of the principal of,
premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness.
Redevelopment Plan Amendment Complies with the Act:
The Community Development Law requires that a Redevelopment Plan and Project
consider and comply with a number of requirements. This Plan Amendment meets the
statutory qualifications as set forth below.
1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on December 19, 2000.[§18-2109] Such
Grand Island Regular Meeting - 1/9/2019 Page 54 / 106
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 January 2, 2019 and passed
Resolution 2019-0? 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 at the time it was
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:
The Redevelopment Plan for Area 1 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority.
b. Demolition and Removal of Structures:
The project to be implemented with this plan does not provide for the demolition and
removal any structures on this property. Demotion of internal structures to accommodate
the redevelopment is anticipated and permitted.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. All of the area
around the site in private ownership is planned for Downtown Commercial development;
this includes housing and commercial uses within the same structure. This property is in
private ownership. [§18-2103(b) and §18-2111] The attached map also is an accurate site
plan of the area after redevelopment. [§18-2111(5)]
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City of Grand Island Future Land Use Map
Grand Island Regular Meeting - 1/9/2019 Page 56 / 106
d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned B3-Heavy Business zone. No zoning changes are anticipated with this
project. No changes are anticipated in street layouts or grades. No changes are
anticipated in building codes or ordinances. Nor are any other planning changes
contemplated. [§18-2103(b) and §18-2111]
e. Site Coverage and Intensity of Use
The developer is rehabilitating the existing building. The developer is not proposing to
increase the size of the building and current building meets the applicable regulations
regarding site coverage and intensity of use. [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. .
Electric utilities are sufficient for the proposed use of this building.
No other utilities would be impacted by the development.
The developer will be responsible for replacing any sidewalks damaged during
construction of the project.
No other utilities would be impacted by the development. [§18-2103(b) and §18-2111]
4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation. This property 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. Tom Gdowski, is
President of Equitable bank and most likely will be part of the bank approval of a loan for
this project.
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 purchased this property along with adjoining properties for $275,000 in
2014. The proportional cost for this portion that is eligible for TIF is $90,000. The
Grand Island Regular Meeting - 1/9/2019 Page 57 / 106
estimated costs of rehabilitation of this property is $349,790 planning related expenses
for Architectural and Engineering services of $15,000 and are included as a TIF eligible
expense. Legal, Developer and Audit Fees of $12,000 including a reimbursement to the
City and the CRA of $5,600 are included as TIF eligible expense. The total of eligible
expenses for this project exceeds $560,000.
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 $105,095 from the proceeds of the TIF. This
indebtedness will be repaid from the Tax Increment Revenues generated from the project.
It is anticipated that 80% of the total TIF amount ($84.076) will be available to the
developer at the beginning of this project. TIF revenues shall be made available to repay
the original debt and associated interest after January 1, 2021 through December 2034.
c. Statement of feasible method of relocating displaced families.
No families will be displaced as a result of this plan.
7. Section 18-2113 of the Act requires:
Prior to recommending a redevelopment plan to the governing body for approval, an
authority shall consider whether the proposed land uses and building requirements in the
redevelopment project area are designed with the general purpose of accomplishing, in
conformance with the general plan, a coordinated, adjusted, and harmonious development
of the city and its environs which will, in accordance with present and future needs,
promote health, safety, morals, order, convenience, prosperity, and the general welfare, as
well as efficiency and economy in the process of development, including, among other
things, adequate provision for traffic, vehicular parking, the promotion of safety from
fire, panic, and other dangers, adequate provision for light and air, the promotion of the
healthful and convenient distribution of population, the provision of adequate
transportation, water, sewerage, and other public utilities, schools, parks, recreational and
community facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention of the
recurrence of insanitary or unsafe dwelling accommodations or conditions of blight.
The Authority has considered these elements in proposing this Plan Amendment. This
amendment, in and of itself will promote consistency with the Comprehensive Plan. This
will have the intended result of preventing recurring elements of unsafe buildings and
blighting conditions. This will accomplish the goal of both the Downtown Business
Improvement District and the Grand Island City Council of increasing the number of
residential units available in the Downtown area and refurbish street level commercial
space that has been vacant for several years.
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8. Time Frame for Development
Development of this project is anticipated to be completed between March 2019 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 an historic building in downtown Grand Island that will be preserved with this
project. The addition of a new residential unit is consistent with goals to build 50 new
residential units in downtown Grand Island by 2019 and with the goals of the 2014 Grand
Island housing study and Grow Grand Island. The primary use of the street level space
for commercial development is consistent with the long term development plans for
Downtown.
10. Cost Benefit Analysis Section 18-2113 of the Act, further requires the Authority
conduct a cost benefit analysis of the plan amendment in the event that Tax Increment
Financing will be used. This analysis must address specific statutory issues.
As authorized in the Nebraska Community Development Law, §18-2147, Neb. Rev. Stat.
(2012), the City of Grand Island has analyzed the costs and benefits of the proposed
Redevelopment Project, including:
Project Sources and Uses. Approximately $105,095 in public funds from tax increment
financing provided by the Grand Island Community Redevelopment Authority will be
required to complete the project. The CRA has also approved a $20,000 life safety grant
for this property. This property represents 1/3 of the front of the building(s) that received
a façade improvement grant in the amount of $167,016 in 2015 at total of $55,062 was
invested by the CRA in the façade. The total CRA investment in this property including
TIF and grants is $180,757. This investment by the Authority will leverage $384,769 in
private sector financing; a private investment of $2.14 for every TIF and grant dollar
invested.
Grand Island Regular Meeting - 1/9/2019 Page 59 / 106
Use of Funds Source of Funds.
Description TIF Funds Other Grants Private Funds Total
Site Acquisition $90,000 _$0 $90,000
Legal and Plan* $5,600 $6,400 $12,000
Engineering/Arch $9,495 $5,505 $15,000
Financing $6,000 $6,000
Renovation $349,790 $349,790
Life Safety $20,000 $20,000
Façade $55,062 $55,062
Contingency $34,979 $34,979
TOTALS $105,095 $75,062 $384,769 $564,926
Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2019,
valuation of approximately $50,521. Based on the 2017 levy this would result in a real
property tax of approximately $1,138. It is anticipated that the assessed value will
increase by $311,000 upon full completion, as a result of the site redevelopment. This
development will result in an estimated tax increase of over $7,006 annually. The tax
increment gained from this Redevelopment Project Area would not be available for use
as city general tax revenues, for a period of 15 years, or such shorter time as may be
required to amortize the TIF bond, but would be used for eligible private redevelopment
costs to enable this project to be realized.
Estimated 2018 assessed value: $ 50,521
Estimated value after completion $ 361,569
Increment value $ 311,048
Annual TIF generated (estimated) $ 7,006
TIF bond issue $ 105,095
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $50,521. The
proposed redevelopment will create additional valuation of $311,000. No tax shifts are
anticipated from the project. The project creates additional valuation that will support
taxing entities long after the project is paid off.
(b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
Grand Island Regular Meeting - 1/9/2019 Page 60 / 106
No additional public service needs have been identified. Existing water and waste
water facilities will not be impacted by this development. The electric utility has
sufficient capacity to support the development. It is not anticipated that this will impact
schools in any significant way. Fire and police protection are available and should not be
negatively impacted by this development. The addition of life safety elements to this
building including fire sprinklers and a second exit actually reduce the chances of
negative impacts to the fire department.
(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
This will provide additional housing and commercial space options in the downtown
area consistent with the planned development in Downtown Grand Island.
(d) Impacts on other employers and employees within the city or village and the
immediate area that are located outside of the boundaries of the area of the
redevelopment project; and
This project will not have a negative impact on other employers in any manner
different from any other expanding business within the Grand Island area. This will
provide housing options for employees of Downtown businesses that wish to live
Downtown and will refurbish Downtown commercial space.
(e) Impacts on student populations of school districts within the City or Village:
This development will have a minimal impact on the Grand Island School
system as it will likely not result in any increased attendance.
The average number of persons per household in Grand Island for 2012 to 2016
according the American Community Survey is 2.65. One additional household in this
unit would be unlike to house more than six 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 one additional school age children generated by
this development. It is highly unlikely that there would be more than four school age
children housed at this location. 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. This project is unlikely to have
a significant impact on the school age population within the district or within any specific
school in the district..
(f) Any other impacts determined by the authority to be relevant to the
consideration of costs and benefits arising from the redevelopment project.
1 https://nces.ed.gov/ccd/districtsearch/district_detail.asp?ID2=3100016
Grand Island Regular Meeting - 1/9/2019 Page 61 / 106
This project is consistent the goals of the Council, the Downtown BID, the CRA, and
Grow Grand Island to create additional housing units in downtown Grand Island.
Time Frame for Development
Development of this project is anticipated to be completed during between March of
2019 and December of 2019. The base tax year should be calculated on the value of the
property as of January 1, 2019. Excess valuation should be available for this project for
15 years 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 or an amount not to exceed $105,095 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 $540,000 on TIF eligible activities in excess of other grants given.
Grand Island Regular Meeting - 1/9/2019 Page 62 / 106
BACKGROUND INFORMATION RELATIVE TO
TAX INCREMENT FINANCING REQUEST
Project Redeveloper Information
Business Name: Wing Properties
Address: 120 East 3rd
Telephone No.: 308-398-2500
Fax No.:
Contact: Dean Pegg
Brief Description of Applicant’s Business:
Wing Properties is a real estate development company.
Present Ownership Proposed Project Site: Wing Properties.
Proposed Project: Building square footage, size of property, description of buildings –
materials, etc. Please attach site plan, if available.
2,659 s.f. main floor 2,659 s.f. second floor, wood framed two story mixed use
building, formerly part of Williamsons Interior.
If Property is to be Subdivided, Show Division Planned:
Grand Island Regular Meeting - 1/9/2019 Page 63 / 106
VI. Estimated Project Costs:
Acquisition Costs:
A. Land $ 0
B. Building $ 90,000
Construction Costs:
A. Renovation or Building Costs: $ 349,790
B. On-Site Improvements: $
re-platting, demo, asbestos removal, tree removal, etc.
Soft Costs:
A. Architectural & Engineering Fees: $15,000
B. Financing Fees: $ 6,000
Closing costs, filing fees
C. Legal/Developer/Audit Fees: $ 6,000
D. Contingency Reserves: $ 34,979
E. Other (Please Specify)
TIF fees $6,000
TOTAL $507,769
Total Estimated Market Value at Completion: $ 323,277
Source of Financing:
A. Developer Equity: $ 90,000
B. Commercial Bank Loan: $ 313,693
Tax Credits:
1. N.I.F.A. $
2. Historic Tax Credits $
D. Industrial Revenue Bonds: $
E. Tax Increment Assistance: $ 84,076
F. Other
Life Safety Grant $20,000
Grand Island Regular Meeting - 1/9/2019 Page 64 / 106
Name, Address, Phone & Fax Numbers of Architect, Engineer and General Contractor:
General Contractor: John Anson, Peaceful Root 217 N Locust ste. 5 Grand Island, NE 68801 308-227-2647
Structural Engineer: Mike Spilinek, Olsson Associates 201 E. Second Street Grand Island, NE 68801 308-384-8750
Architect: Toby Gay, Gay and Associates, 1470 31st ave. Columbus Ne 68601
Estimated Real Estate Taxes on Project Site Upon Completion of Project:
(Please Show Calculations)
See attached
Project Construction Schedule:
Construction Start Date: Q1 2019
Construction Completion Date: Q4 2019
If Phased Project:
Year 50 % Complete
Year 50% Complete
XII. Please Attach Construction Pro Forma
XIII. Please Attach Annual Income & Expense Pro Forma
(With Appropriate Schedules)
TAX INCREMENT FINANCING REQUEST INFORMATION
Describe Amount and Purpose for Which Tax Increment Financing is Requested:
Wing Properties is asking for $105,095 in TIF. The purpose for the request is to get a
loan against the TIF bond for construction. This will allow the project to cash flow and
therefore be a success.
Grand Island Regular Meeting - 1/9/2019 Page 65 / 106
Statement Identifying Financial Gap and Necessity for use of Tax Increment Financing
for Proposed Project: Without TIF assistance the project will not cash flow and
therefore will not be a successful business venture. See attached pro forma.
Municipal and Corporate References (if applicable). Please identify all other
Municipalities, and other Corporations the Applicant has been involved with, or
has completed developments in, within the last five (5) years, providing contact
person, telephone and fax numbers for each:
NA
Post Office Box 1968
Grand Island, Nebraska 68802-1968
Phone: 308 385-5240
Fax: 308 385-5423
Email: cnabity@grand-island.com
Grand Island Regular Meeting - 1/9/2019 Page 66 / 106
TIF Calculations
2017 Assessed Value Finished Value Increment
50,521$ 361,569$ 311,048$
Tax Entity Bond 2017 Levy 2017 Base Taxes Total Tax Entity Bond 2017 Levy 2017 Taxes
City Levy 0.349845 $177 City Levy 0.349845 $1,088
City Bond 0.025768 $13 $190 City Bond 0.025768 $80
CRA 0.02243 $11 $11 CRA 0.02243 $70
Hall County 0.390571 $197 $197 Hall County 0.390571 $1,215
Rural Fire $0 Rural Fire $0
Fire Bond* $0 $0 Fire Bond* $0
GIPS School 1.08 $546 GIPS School 1.08 $3,359
2nd Bond 0.06834 $35 2nd Bond 0.06834 $213
4th Bond 0.034813 $18 4th Bond 0.034813 $108
5th Bond 0.109327 $55 $652.97 5th Bond 0.109327 $340
ESU 10 0.012375 $6 $6 ESU 10 0.012375 $38
CCC 0.094302 $48 $48 CCC 0.094302 $293
CPNRD 0.03239 $16 $16 CPNRD 0.03239 $101
Ag Society 0.002828 $1 $1 Ag Society 0.002828 $9
Airport 0.009564 $5 Airport 0.009564 $30
Airport Bond 0.019938 $10 $15 Airport Bond 0.019938 $62
2.252491 $1,138 $1,138 2.252491 $7,006
Years 15 Total Incr $105,094.92
Total Combined Total Combined
Grand Island Regular Meeting - 1/9/2019 Page 67 / 106
PROFORMA WITH TIF PROFORMA WITHOUT TIF
USE OF FUNDS TOTAL USE OF FUNDS TOTAL
PURCHASE OF BUILDING $90,000 PURCHASE OF BUILDING $90,000
CONSTRUCTION $349,790 CONSTRUCTION $349,790
CONTINGENCY $34,979 CONTINGENCY $34,979
TENANT ALLOWANCE $0 TENANT ALLOWANCE $0
A&E $15,000 A&E $15,000
SOFT COSTS $18,000 SOFT COSTS $18,000
TOTAL $507,769 TOTAL $507,769
SOURCE OF FUNDS SOURCE OF FUNDS
BANK 2220 $313,693 BANK 2220 $397,769
TIF LOAN 1431 $84,076 TIF LOAN 1431 $0
FEDERAL HISTORIC TAX CREDITS 1421 $0 FEDERAL HISTORIC TAX CREDITS 1421 $0
STATE HISTORIC TAX CREDITS 1327 $0 STATE HISTORIC TAX CREDITS 1327 $0
LIFE SAFETY GRANT $20,000 LIFE SAFETY GRANT $20,000
OWNER EQUITY $90,000 OWNER EQUITY $90,000
TOTAL $507,769 TOTAL $507,769
OPERATING PROFORMA OPERATING PROFORMA
ANNUAL RENTAL INCOMEAVG/RENT 735 ANNUAL RENTAL INCOMEAVG/RENT
3 Bed Apt 0 $26,400 804 3 Bed Apt 0 $26,400
Commercial 0 $26,400 824 Commercial 0 $26,400
6399 $0 673 6399 $0
1431 $0 1431 $0
4968 $0 595 4968 $0
GROSS INCOME $52,800 GROSS INCOME $52,800
VACANCY $3,168 0.06 VACANCY $3,168 0.06
DSCR 1.20 EXPENSES $20,537 0.224 DSCR 0.94 EXPENSES $20,537 0.224
$23,705 $23,705
NET OPERATING INCOME $29,095 NET OPERATING INCOME $29,095
DEBT SERVICE $24,326 DEBT SERVICE $30,846
CASH FLOW $4,769 CASH FLOW ($1,751)
Grand Island Regular Meeting - 1/9/2019 Page 68 / 106
EXPENSES
Property Taxes $7,006
BID Taxes $133
Parking Taxes $202
Insurance $2,900
Utilities $3,960
Management $3,168
Maintnance $3,168
Total $20,537
Grand Island Regular Meeting - 1/9/2019 Page 69 / 106
CONSTRUCTION COSTS
Permit $2,817
Demo $16,000
Windows $8,800
Elevator Pit $0
Carpentry $17,230
Materials $77,777
Roof $7,500
Plumbing $21,600
HVAC $14,400
Electric $24,000
Insulation $5,401
DW Hang $9,309
DW finish $10,943
Paint $10,338
Trim Labor $8,615
Cabinets $2,000
Countertops $6,000
Flooring allowance $29,176
Lighting allowance $1,200
Electronics $0
Fire sprinklers $21,059
Fire service $0
Concrete $0
Deck $0
Millwork/Tin ceiling $0
Elevator $0
Stairs (outdoor)$0
Entry system $0
Camera's $0
Fire Alarm $0
Existing stairway rehab $2,000
Misc $5,000
Appliances $3,000
Sub Total $304,165
Overhead & Profit $45,625
Total $349,790
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Wing Properties 112 E 3rd Street
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 293
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 9th day of January, 2019
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By___________________________
Chairperson
ATTEST:
__________________________
Secretary
Grand Island Regular Meeting - 1/9/2019 Page 77 / 106
Wing Properties 112 E 3rd Street
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND,
NEBRASKA
RESOLUTION NO. 294
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 1, from
Wing Properties.., (The "Developer") for redevelopment of property located at 112 E. 3rd
Street, an area within the city limits of the City of Grand Island, as set forth in Exhibit 1
attached hereto area; and
WHEREAS, this Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), is proposing to use Tax Increment Financing on a project
within Redevelopment Area 1;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
Section 1. In compliance with section 18-2114 of the Act, the Authority hereby gives
the governing body of the City notice that it intends to enter into the Redevelopment Contract,
attached as Exhibit 1, with such changes as are deemed appropriate by the Authority, after
approval of the redevelopment plan amendment related to the redevelopment project
described in the Redevelopment Contract, and after the passage of 30 days from the date
hereof.
Section 2. The Secretary of the Authority is directed to file a copy of this resolution
with the City Clerk of the City of Grand Island, forthwith.
Passed and approved this 9th day of January, 2019.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA.
By ___________________________
Chairperson
ATTEST:
___________________
Secretary
Grand Island Regular Meeting - 1/9/2019 Page 78 / 106
Community Redevelopment
Authority (CRA)
Wednesday, January 9, 2019
Regular Meeting
Item I3
Redevelopment Plan Amendment CRA #1 Rawr Holdings LLC
112 W Second Street
Staff Contact:
Grand Island Regular Meeting - 1/9/2019 Page 79 / 106
Redevelopment Plan Amendment
Grand Island CRA Area 1
January 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 1.
Executive Summary:
Project Description
THE REDEVELOPMENT OF A PORTION OF THE GI MUSIC BUILDING
LOCATED AT 110 W. 2ND STREET FOR COMMERCIAL AND RESIDENTIAL
USES, INCLUDING ACQUISTION, FIRE/LIFE SAFETY IMPROVEMENTS AND
BUILDING REHABILITATION AND REMODELING.
The use of Tax Increment Financing to aid in rehabilitation expenses associated with
redevelopment of the first floor the center portion of the G.I. Music building located at
110 W. 2nd street for 5,808 square foot of commercial space on the main floor and two
apartments on the second floor. The use of Tax Increment Financing is an integral part of
the development plan and necessary to make this project profitable. The project will
result in renovating the second floor into two upper story residential units consistent with
the plans approved by the Downtown Business Improvement District and the Grand
Island City Council. The first floor will be renovated for street level commercial space.
This project would not be feasible without the use of TIF.
Rawr Holdings LLC purchased this building in 2018. The building was purchased for
$120,000 at the time of purchase. The purchase price is included as an eligible TIF
activity. This building is currently vacant. The developer is responsible for and has
provided evidence that they can secure adequate debt financing to cover the costs
associated with the remodeling and rehabilitation of this building. The Grand Island
Community Redevelopment Authority (CRA) intends to pledge the ad valorem taxes
generated over the 15 year period beginning January 1, 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: The east two thirds of Lot Seven (7) in Block Sixty Six (66) in
the Original Town, now City of Grand Island, Hall County, Nebraska. (Hall County
Assessor Parcel Number 400005719)
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Existing Land Use and Subject Property
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The tax increment will be captured for the tax years the payments for which become
delinquent in years 2020 through 2034 inclusive.
The real property ad valorem taxes on the current valuation will continue to be paid
to the normal taxing entities. The increase will come from rehabilitation of this
portion of the building for commercial and residential uses as permitted in the B3
Heavy Business Zoning District.
Statutory Pledge of Taxes.
In accordance with Section 18-2147 of the Act and the terms of the Resolution
providing for the issuance of the TIF Note, the Authority hereby provides that any ad
valorem tax on the Redevelopment Project Area for the benefit of any public body be
divided for a period of fifteen years after the effective date of this provision as set forth in
the Redevelopment Contract, consistent with this Redevelopment Plan. Said taxes shall
be divided as follows:
a. That portion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the redevelopment project valuation shall
be paid into the funds, of each such public body in the same proportion as all other taxes
collected by or for the bodies; and
b. That portion of the ad valorem tax on real property in the
redevelopment project in excess of such amount, if any, shall be allocated to and, when
collected, paid into a special fund of the Authority to pay the principal of; the interest on,
and any premiums due in connection with the bonds, loans, notes, or advances on money
to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise,such
Authority for financing or refinancing, in whole or in part, a redevelopment project.
When such bonds, loans, notes, advances of money, or indebtedness including interest
and premium due have been paid, the Authority shall so notify the County Assessor and
County Treasurer and all ad valorem taxes upon real property in such redevelopment
project shall be paid into the funds of the respective public bodies.
Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged
to the repayment of loans or advances of money, or the incurring of any indebtedness,
whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in
whole or in part, the redevelopment project, including the payment of the principal of,
premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness.
Redevelopment Plan Amendment Complies with the Act:
The Community Development Law requires that a Redevelopment Plan and Project
consider and comply with a number of requirements. This Plan Amendment meets the
statutory qualifications as set forth below.
1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on December 19, 2000.[§18-2109] Such
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declaration was made after a public hearing with full compliance with the public
notice requirements of §18-2115 of the Act.
2. Conformation to the General Plan for the Municipality as a whole. [§18-2103 (13)
(a) and §18-2110]
Grand Island adopted a Comprehensive Plan on July 13, 2004. This redevelopment plan
amendment and project are consistent with the Comprehensive Plan, in that no changes in
the Comprehensive Plan elements are intended. This plan merely provides funding for
the developer to rehabilitate the building for permitted uses on this property as defined by
the current and effective zoning regulations. The Hall County Regional Planning
Commission held a public hearing at their meeting on January 2, 2019 and passed
Resolution 2019-0? 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 at the time it was
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:
The Redevelopment Plan for Area 1 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority.
b. Demolition and Removal of Structures:
The project to be implemented with this plan does not provide for the demolition and
removal any structures on this property. Demotion of internal structures to accommodate
the redevelopment is anticipated and permitted.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. All of the area
around the site in private ownership is planned for Downtown Commercial development;
this includes housing and commercial uses within the same structure. This property is in
private ownership. [§18-2103(b) and §18-2111] The attached map also is an accurate site
plan of the area after redevelopment. [§18-2111(5)]
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City of Grand Island Future Land Use Map
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d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned B3-Heavy Business zone. No zoning changes are anticipated with this
project. No changes are anticipated in street layouts or grades. No changes are
anticipated in building codes or ordinances. Nor are any other planning changes
contemplated. [§18-2103(b) and §18-2111]
e. Site Coverage and Intensity of Use
The developer is rehabilitating the existing building. The developer is not proposing to
increase the size of the building and current building meets the applicable regulations
regarding site coverage and intensity of use. [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. .
Electric utilities are sufficient for the proposed use of this building.
No other utilities would be impacted by the development.
The developer will be responsible for replacing any sidewalks damaged during
construction of the project.
No other utilities would be impacted by the development. [§18-2103(b) and §18-2111]
4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation. This property 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 purchased this property for $120,000 in 2019. The estimated costs of
rehabilitation of this property is $437,604 planning related expenses for Architectural and
Engineering services of $15,000 and are included as a TIF eligible expense. Legal,
Developer and Audit Fees of $12,000 including a reimbursement to the City and the CRA
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of $5,600 are included as TIF eligible expense. The total of eligible expenses for this
project exceeds $584,000.
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 $75,031 from the proceeds of the TIF. This
indebtedness will be repaid from the Tax Increment Revenues generated from the project.
It is anticipated that 90% of the total TIF amount ($67,529) will be available to the
developer at the beginning of this project. TIF revenues shall be made available to repay
the original debt and associated interest after January 1, 2021 through December 2034.
c. Statement of feasible method of relocating displaced families.
No families will be displaced as a result of this plan.
7. Section 18-2113 of the Act requires:
Prior to recommending a redevelopment plan to the governing body for approval, an
authority shall consider whether the proposed land uses and building requirements in the
redevelopment project area are designed with the general purpose of accomplishing, in
conformance with the general plan, a coordinated, adjusted, and harmonious development
of the city and its environs which will, in accordance with present and future needs,
promote health, safety, morals, order, convenience, prosperity, and the general welfare, as
well as efficiency and economy in the process of development, including, among other
things, adequate provision for traffic, vehicular parking, the promotion of safety from
fire, panic, and other dangers, adequate provision for light and air, the promotion of the
healthful and convenient distribution of population, the provision of adequate
transportation, water, sewerage, and other public utilities, schools, parks, recreational and
community facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention of the
recurrence of insanitary or unsafe dwelling accommodations or conditions of blight.
The Authority has considered these elements in proposing this Plan Amendment. This
amendment, in and of itself will promote consistency with the Comprehensive Plan. This
will have the intended result of preventing recurring elements of unsafe buildings and
blighting conditions. This will accomplish the goal of both the Downtown Business
Improvement District and the Grand Island City Council of increasing the number of
residential units available in the Downtown area and refurbish street level commercial
space that has been vacant/underutilized for several years.
8. Time Frame for Development
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Development of this project is anticipated to be completed between March 2019 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 an historic building in downtown Grand Island that will be preserved with this
project. The addition of a new residential unit is consistent with goals to build 50 new
residential units in downtown Grand Island by 2019 and with the goals of the 2014 Grand
Island housing study and Grow Grand Island. The primary use of the street level space
for commercial development is consistent with the long term development plans for
Downtown.
10. Cost Benefit Analysis Section 18-2113 of the Act, further requires the Authority
conduct a cost benefit analysis of the plan amendment in the event that Tax Increment
Financing will be used. This analysis must address specific statutory issues.
As authorized in the Nebraska Community Development Law, §18-2147, Neb. Rev. Stat.
(2012), the City of Grand Island has analyzed the costs and benefits of the proposed
Redevelopment Project, including:
Project Sources and Uses. Approximately $75,031 in public funds from tax increment
financing provided by the Grand Island Community Redevelopment Authority will be
required to complete the project. The CRA has also approved a $35,000 life safety grant
for this property based on the plan to create two upper story residential units The total
CRA investment in this property including TIF and grants is $110,031. This investment
by the Authority will leverage $559,344 in private sector financing; a private investment
of $5.08 for every TIF dollar invested.
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Use of Funds Source of Funds.
Description TIF Funds Other Grants Private Funds Total
Site Acquisition $75,031 _$44,969 $120,000
Legal and Plan* $12,000 $12,000
Engineering/Arch $15,000 $15,000
Financing $6,000 $6,000
Renovation $437,604 $437,604
Life Safety $35,000 $35,000
Façade $0
Contingency $43,761 $43,761
TOTALS $75,031 $35,000 $599,344 $669,365
Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2019,
valuation of approximately $91,284. Based on the 2017 levy this would result in a real
property tax of approximately $2,056. It is anticipated that the assessed value will
increase by $222,071 upon full completion, as a result of the site redevelopment. This
development will result in an estimated tax increase of over $5,002 annually. The tax
increment gained from this Redevelopment Project Area would not be available for use
as city general tax revenues, for a period of 15 years, or such shorter time as may be
required to amortize the TIF bond, but would be used for eligible private redevelopment
costs to enable this project to be realized.
Estimated 2018 assessed value: $ 91,284
Estimated value after completion $ 313,355
Increment value $ 222,071
Annual TIF generated (estimated) $ 5,002
TIF bond issue $ 75,031
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $91,284. The
proposed redevelopment will create additional valuation of $222,000. No tax shifts are
anticipated from the project. The project creates additional valuation that will support
taxing entities long after the project is paid off.
(b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
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No additional public service needs have been identified. Existing water and waste
water facilities will not be impacted by this development. The electric utility has
sufficient capacity to support the development. It is not anticipated that this will impact
schools in any significant way. Fire and police protection are available and should not be
negatively impacted by this development. The addition of life safety elements to this
building including fire sprinklers and a second exit actually reduce the chances of
negative impacts to the fire department.
(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
This will provide additional housing and commercial space options in the downtown
area consistent with the planned development in Downtown Grand Island.
(d) Impacts on other employers and employees within the city or village and the
immediate area that are located outside of the boundaries of the area of the
redevelopment project; and
This project will not have a negative impact on other employers in any manner
different from any other expanding business within the Grand Island area. This will
provide housing options for employees of Downtown businesses that wish to live
Downtown and will refurbish Downtown commercial space.
(e) Impacts on student populations of school districts within the City or Village:
This development will have a minimal impact on the Grand Island School
system as it will likely not result in any increased attendance.
The average number of persons per household in Grand Island for 2012 to 2016
according the American Community Survey is 2.65. Two additional households in these
units would be unlike to house more than six 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 one additional school age children
generated by this development. It is highly unlikely that there would be more than three
school age children housed at this location. 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. This project is
unlikely to have a significant impact on the school age population within the district or
within any specific school in the district..
(f) Any other impacts determined by the authority to be relevant to the
consideration of costs and benefits arising from the redevelopment project.
1 https://nces.ed.gov/ccd/districtsearch/district_detail.asp?ID2=3100016
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This project is consistent the goals of the Council, the Downtown BID, the CRA, and
Grow Grand Island to create additional housing units in downtown Grand Island.
Time Frame for Development
Development of this project is anticipated to be completed during between March of
2019 and December of 2019. The base tax year should be calculated on the value of the
property as of January 1, 2019. Excess valuation should be available for this project for
15 years 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 or an amount not to exceed $75,031 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 $555,000 on TIF eligible activities in excess of other grants given.
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BACKGROUND INFORMATION RELATIVE TO
TAX INCREMENT FINANCING REQUEST
Project Redeveloper Information
Business Name: Rawr Holdings LLC
Address: 110 West 2nd
Telephone No.: 308-379-0354
Fax No.:
Contact: Travis Spiehs
Brief Description of Applicant’s Business:
Rawr Holdings is a real estate development company.
Present Ownership Proposed Project Site: Rawr Holdings LLC.
Proposed Project: Building square footage, size of property, description of buildings –
materials, etc. Please attach site plan, if available.
5,808 s.f. main floor 2,156 s.f. second floor, wood framed/ brick two story mixed
use building, formerly the G.I. Music building.
If Property is to be Subdivided, Show Division Planned:
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VI. Estimated Project Costs:
Acquisition Costs:
A. Land $ 0
B. Building $ 120,000
Construction Costs:
A. Renovation or Building Costs: $437,604
B. On-Site Improvements: $
re-platting, demo, asbestos removal, tree removal, etc.
Soft Costs:
A. Architectural & Engineering Fees: $15,000
B. Financing Fees: $ 6,000
Closing costs, filing fees
C. Legal/Developer/Audit Fees: $ 6,000
D. Contingency Reserves: $ 43,761
E. Other (Please Specify)
TIF fees $6,000
TOTAL $634,365
Total Estimated Market Value at Completion: $ 372,186
Source of Financing:
A. Developer Equity: $ 165,000
B. Commercial Bank Loan: $ 344,956
Tax Credits:
1. N.I.F.A. $ 0
2. Historic Tax Credits $ 0
D. Industrial Revenue Bonds: $ 0
E. Tax Increment Assistance: $ 67,529
F. Other
Life Safety Grant $35,000
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Name, Address, Phone & Fax Numbers of Architect, Engineer and General Contractor:
General Contractor: John Anson, Peaceful Root 217 N Locust ste. 5 Grand Island, NE 68801 308-227-2647
Structural Engineer: Mike Spilinek, Olsson Associates 201 E. Second Street Grand Island, NE 68801 308-384-8750
Architect: Toby Gay, Gay and Associates, 1470 31st ave. Columbus Ne 68601
Estimated Real Estate Taxes on Project Site Upon Completion of Project:
(Please Show Calculations)
See attached
Project Construction Schedule:
Construction Start Date: Q1 2019
Construction Completion Date: Q4 2019
If Phased Project:
Year 50 % Complete
Year 50% Complete
XII. Please Attach Construction Pro Forma
XIII. Please Attach Annual Income & Expense Pro Forma
(With Appropriate Schedules)
TAX INCREMENT FINANCING REQUEST INFORMATION
Describe Amount and Purpose for Which Tax Increment Financing is Requested:
Rawr Holdings LLC is asking for $75,031 in TIF. The purpose for the request is to get a
loan against the TIF bond for construction. This will allow the project to cash flow and
therefore be a success.
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Statement Identifying Financial Gap and Necessity for use of Tax Increment Financing
for Proposed Project: Without TIF assistance the project will not cash flow and
therefore will not be a successful business venture. See attached pro forma.
Municipal and Corporate References (if applicable). Please identify all other
Municipalities, and other Corporations the Applicant has been involved with, or
has completed developments in, within the last five (5) years, providing contact
person, telephone and fax numbers for each:
NA
Post Office Box 1968
Grand Island, Nebraska 68802-1968
Phone: 308 385-5240
Fax: 308 385-5423
Email: cnabity@grand-island.com
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2017 Assessed Value Finished Value Increment
91,284$ 313,355$ 222,071$
Tax Entity Bond 2017 Levy 2017 Base Taxes Total Tax Entity Bond 2017 Levy 2017 Taxes
City Levy 0.349845 $319 City Levy 0.349845 $777
City Bond 0.025768 $24 $343 City Bond 0.025768 $57
CRA 0.02243 $20 $20 CRA 0.02243 $50
Hall County 0.390571 $357 $357 Hall County 0.390571 $867
Rural Fire $0 Rural Fire $0
Fire Bond*$0 $0 Fire Bond*$0
GIPS School 1.08 $986 GIPS School 1.08 $2,398
2nd Bond 0.06834 $62 2nd Bond 0.06834 $152
4th Bond 0.034813 $32 4th Bond 0.034813 $77
5th Bond 0.109327 $100 $1,179.83 5th Bond 0.109327 $243
ESU 10 0.012375 $11 $11 ESU 10 0.012375 $27
CCC 0.094302 $86 $86 CCC 0.094302 $209
CPNRD 0.03239 $30 $30 CPNRD 0.03239 $72
Ag Society 0.002828 $3 $3 Ag Society 0.002828 $6
Airport 0.009564 $9 Airport 0.009564 $21
Airport Bond 0.019938 $18 $27 Airport Bond 0.019938 $44
2.252491 $2,056 $2,056 2.252491 $5,002
Years 15 Total Incr $75,031.94
Total Combined Total Combined
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CONSTRUCTION COSTS
Permit $3,325
Demo $0
Windows $4,000
Elevator Pit $0
Carpentry $17,670
Materials $75,838
Roof $38,000
Plumbing $28,600
HVAC $26,400
Electric $27,000
Insulation $10,472
DW Hang $7,886
DW finish $9,961
Paint $12,689
Trim Labor $9,790
Cabinets $7,253
Countertops $2,000
Flooring allowance $23,550
Lighting allowance $1,200
Electronics $0
Fire sprinklers $21,141
Fire service $15,000
Concrete $20,000
Deck $0
Millwork/Tin ceiling $0
Elevator $0
Stairs (outdoor)$0
Entry system $5,000
Camera's $2,000
Fire Alarm $0
Existing stairway rehab $0
Misc $8,000
Appliances $3,750
Sub Total $380,525
Overhead & Profit $57,079
Total $437,603
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PROFORMA WITH TIF PROFORMA WITHOUT TIF
USE OF FUNDS TOTAL USE OF FUNDS TOTAL
PURCHASE OF BUILDING $120,000 PURCHASE OF BUILDING $120,000
CONSTRUCTION $437,604 CONSTRUCTION $437,604
CONTINGENCY $21,881 CONTINGENCY $21,881
TENANT ALLOWANCE $0 TENANT ALLOWANCE $0
A&E $15,000 A&E $15,000
SOFT COSTS $18,000 SOFT COSTS $18,000
TOTAL $612,485 TOTAL $612,485
SOURCE OF FUNDS SOURCE OF FUNDS
BANK 2220 $344,956 BANK 2220 $412,485
TIF LOAN 1431 $67,529 TIF LOAN 1431 $0
FEDERAL HISTORIC TAX CREDITS 1421 $0 FEDERAL HISTORIC TAX CREDITS 1421 $0
STATE HISTORIC TAX CREDITS 1327 $0 STATE HISTORIC TAX CREDITS 1327 $0
LIFE SAFETY GRANT $35,000 LIFE SAFETY GRANT $35,000
OWNER EQUITY $165,000 OWNER EQUITY $165,000
TOTAL $612,485 TOTAL $612,485
OPERATING PROFORMA OPERATING PROFORMA
ANNUAL RENTAL INCOME 735 ANNUAL RENTAL INCOME
2 Bed Apt 0 $18,000 804 2 Bed Apt 0 $18,000
1 Bed Apt 0 $5,400 824 1 Bed Apt 0 $5,400
Commercial 6399 $21,600 673 Commercial 6399 $21,600
1431 $0 1431 $0
4968 $0 595 4968 $0
GROSS INCOME $45,000 GROSS INCOME $45,000
VACANCY $2,700 0.06 VACANCY $2,700 0.06
DSCR 1.14 EXPENSES $11,749 0.224 DSCR 0.96 EXPENSES $11,749 0.224
$14,449 $14,449
NET OPERATING INCOME $30,551 NET OPERATING INCOME $30,551
DEBT SERVICE $26,750 DEBT SERVICE $31,987
CASH FLOW $3,800 CASH FLOW ($1,436)
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EXPENSES
Property Taxes $5,002
BID Taxes $243
Parking Taxes $304
Insurance $2,900
Utilities $600
Management $1,350
Maintnance $1,350
Total $11,749
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Rawr Holdings LLC 110 W 2nd
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 295
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 9th day of January, 2019
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By___________________________
Chairperson
ATTEST:
__________________________
Secretary
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Rawr Holdings LLC 110 W 2nd
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND,
NEBRASKA
RESOLUTION NO. 296
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 1, from
Rawr Holdings LLC ., (The "Developer") for redevelopment of property located at 112 W. 2nd
Street, an area within the city limits of the City of Grand Island, as set forth in Exhibit 1
attached hereto area; and
WHEREAS, this Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), is proposing to use Tax Increment Financing on a project
within Redevelopment Area 1;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
Section 1. In compliance with section 18-2114 of the Act, the Authority hereby gives
the governing body of the City notice that it intends to enter into the Redevelopment Contract,
attached as Exhibit 1, with such changes as are deemed appropriate by the Authority, after
approval of the redevelopment plan amendment related to the redevelopment project
described in the Redevelopment Contract, and after the passage of 30 days from the date
hereof.
Section 2. The Secretary of the Authority is directed to file a copy of this resolution
with the City Clerk of the City of Grand Island, forthwith.
Passed and approved this 9th day of January, 2019.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA.
By ___________________________
Chairperson
ATTEST:
___________________
Secretary
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