02-13-2019 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, February 13, 2019
Regular Meeting Packet
Board Members:
Tom Gdowski - Chairman
Glen Murray – Vice Chairman
Sue Pirnie
Glenn Wilson
Krae Dutoit
4:00 PM
Grand Island Regular Meeting - 2/13/2019 Page 1 / 177
Call to Order
Roll Call
A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS
Individuals who have appropriate items for City Council consideration should complete the Request for
Future Agenda Items form located at the Information Booth. If the issue can be handled administratively
without Council action, notification will be provided. If the item is scheduled for a meeting or study
session, notification of the date will be given.
B - RESERVE TIME TO SPEAK ON AGENDA ITEMS
This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve
time to speak. Please come forward, state your name and address, and the Agenda topic on which you will
be speaking.
DIRECTOR COMMUNICATION
This is an opportunity for the Director to comment on current events, activities, and issues of interest to
the commission.
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Community Redevelopment
Authority (CRA)
Wednesday, February 13, 2019
Regular Meeting
Item A1
Agenda
Staff Contact:
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COMMUNITY REDEVELOPMENT AUTHORITY
AGENDA MEMORANDUM
4 p.m. Wednesday, February 13, 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 January 9, 2019, are submitted for approval. A MOTION is in
order.
3. APPROVAL OF FINANCIAL REPORTS. Financial reports for the period of
January 1 through 31, 2019 are submitted for approval. A MOTION is in order.
4. APPROVAL OF BILLS. Payment of bills in the amount of $187.663 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
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 Grand Island City
Council for consideration and approval prior to consideration of a redevelopment
contract. A MOTION to approve Resolution 297 is in order.
7. RECOMMENDATION REDEVELOPMENT PLAN AMENDMENT CRA AREA 1
110 W 2nd STREET GI MUSIC BUILDING–Rawr Holdings LLC. Concerning an
amendment to the 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. The CRA may forward the plan to the Grand Island
City Council for consideration and approval prior to consideration of a redevelopment
contract. A MOTION to approve Resolution 298 is in order.
8. REDEVELOPMENT CONTRACT – PARAMOUNT LLC (Old Sears 2)
The Grand Island City Council approved Resolution 2019-42 on January 22, 2019
authorizing issuance of a contract to Paramount LLC for up to $199,000 in tax-
Grand Island Regular Meeting - 2/13/2019 Page 6 / 177
increment financing to assist with site acquisition and renovation for the development
of one residential apartment and commercial space on the main floor of the west end
of the Old Sears Building at 411 W. 3rd Street in CRA Area No. 1 in Grand Island,
Hall County, Nebraska. A MOTION to approve Resolution 299 is in order.
9. GRANT REQUEST FOR FUNDING FOR LIFE SAFETY IMPROVEMENTS FOR
A MAIN FLOOR ACCESSIBLE APARTMENT AT 411 W 3rd STREET (THE OLD
SEARS BUILIDING)–PARAMOUNT DEVELOPMENT LLC. Paramount is
requesting funding for life safety improvements for the development of an ADA
accessible apartment on the first floor of the old Sears building. This request is
similar to the one made by and granted to the developers of the Kinkaider Building
for their main floor accessible unit. Regulations require that in most cases everytime
4 or more units of apartments are constructed within a building that at least 1 make
provisions for accessibility. The request is for $15,000 the maximum that we would
allow for an upper story residential unit. Funds are available in the other project line
item.
10. REDEVELOPMENT PLAN AMENDMENT CRA AREA 1 304 W 3rd STREET-
Amur Real Estate I, LLC Concerning an amendment to the redevelopment plan for
CRA Area No. 1 to allow for redevelopment 304 W. Third (Wells Fargo Building) to
renovate commercial/office space in the building. The developer is requesting
$360,000 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 300
(forward to Regional Planning Commission) and Resolution 301 (30-day intent notice
to city council) is in order.
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Community Redevelopment
Authority (CRA)
Wednesday, February 13, 2019
Regular Meeting
Item B1
Minutes
Staff Contact:
Grand Island Regular Meeting - 2/13/2019 Page 8 / 177
OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
January 9, 2019
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 City Hall, 100 E.
First Street. Notice of the meeting was given in the January 2, 2019 Grand Island Independent.
1. CALL TO ORDER.
Secretary Murray called the meeting to order at 4:00 p.m. The following members were
present: Glen Murray, Krae Dutoit and Glenn Wilson. Also present were: Director Chad
Nabity, Planning Administrative Assistant Norma Hernandez, 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 December 12, 2018 meeting was made by
Wilson and second by Dutoit. Upon roll call vote, all present voted aye.
Motion carried 3-0.
3. APPROVAL OF FINANCIAL REPORTS.
Brian Schultz reviewed the financials from December 1st, 2018 to December 31st, 2018.
A motion for approval of the financial reports was made by Dutoit and second by Wilson.
Upon roll call vote, all present voted aye. Motion carried 3-0.
4. APPROVAL OF BILLS.
The bills were reviewed by Brian Shultz. A motion was made by Wilson and second by
Dutoit to approve the bills in the amount of $43,916.46. Upon roll call vote, all present
voted aye. Motion carried 3-0.
5. REVIEW OF COMMITTED PROJECTS & CRA PROPERTY.
The committed projects and CRA properties were reviewed by Nabity.
Nabity mentioned the Old City Hall project was added to the list of façade projects. The
total commitment toward façade projects is now $600,000 with an expectation that
$500,000 would be paid off this year. The Hedde project will probably carry over.
Mendez has not responded to any calls. Funds will be held for now until further
discussion. An additional Life Safety Grant was added to the Hedde Building project. The
project is moving forward. Neilson’s are unsure where they’re at and are unsure if they
will be moving forward with the project. The Old Sears Building the four apartments are
moving forward on that and Paramount will be closing on the property soon. Rawr
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Holdings a has submitted an application for TIF project as has Wing Properties. Take
Flight was just paid with the approval of the bills and will be removed from the project
list.. There will be an expenditure on the Dessert Rose property. There is a broken
manhole on the property.
Sue Pirnie arrived at 4:06 p.m.
6. 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 292 – Forward a Redevelopment Plan Amendment
to the Grand Island City Council for redevelopment of the west side of the Old
Sears Building at 411 W. 3rd Street – Paramount Development LLC.
Nabity stated this is the first floor of the Old Sears property. They will be acquiring 6500
square foot on the first floor. Putting in one small apartment that will be handicap
accessible toward the back and developing the rest as commercial space. They are
requesting TIF. This was approved last month and sent to the Regional Planning
Commission. The Planning Commission found that it was consistent with comprehensive
plan.
A motion was made by Pirnie and second by Wilson to approve Resolution 292. Upon roll
call vote all, voted aye. Motion carried 4-0.
7. Redevelopment Plan Amendment for CRA Area #1 for the main floor
commercial and upper story residential development of the center portion of
the Williamson Interiors building at 1112 E 3rd Street. – Wing Properties.
A. Consideration of Resolution 293- Forward a Redevelopment Plan
Amendment to the Hall County Regional Planning Commission for
redevelopment of the main floor commercial and upper story residential
development of the center portion of the Williamson Interiors building at
112 E. 3rd street.
B. Consideration of Resolution 294 – 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
commercial and upper story residential development of the center portion
of the Williamson Interiors building at 112 E 3rd Street. – Wing
Properties.
Nabity explained the redevelopment plan is for the center portion of the Williamson
Interiors building including one apartment on the second floor and commercial
space on the first floor. They are requesting $105,000 in TIF for the rehabilitation of
the building. It is anticipated that it will generate that based on the assessor’s review
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of the plans and what they figure the building will access out for upon completion.
A letter was sent out to the school system indicating that there was a residential use involved
with this TIF application consistent with their request. This is consistent with the
comprehensive plan, consistent with the downtown plan to add additional residential.
A motion was made by Dutoit and second by Wilson to approve Resolutions 293 and 294. 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 upper story residential development of the GI Music building at 110 W 2nd
Street – Rawr Holdings LLC.
a. Consideration of Resolution 295 – Forward a Redevelopment Plan Amendment
to the Hall County Regional Planning Commission for redevelopment of the
main floor of the main floor commercial and upper story residential
development of the GI Music building at 110 W 2nd Street. – Rawr Holdings
LLC.
b. Consideration of Resolution 296 – 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 commercial and upper story
residential development of the GI Music building at 110 W. 2nd Street. – Rawr
Holdings LLC.
Nabity explained that this is immediately adjacent to the west of Old City Hall. They are
proposing two apartments on the second floor and redoing the main floor for commercial
space, 2100 square foot on the second floor and 5800 square foot on the main floor. They are
requesting TIF in the amount of $75,000 to offset the cost of rehabilitation and were awarded
a Life Safety Grant in the amount of $35,000 for the two apartments of the second floor.
The project is a mixed use project that involves both commercial and residential. The school
district was notified that residential was involved.
A motion was made by Pirnie and second by Wilson to approve Resolution 295 and Resolution 296.
Upon roll call all voted aye. Motion carried 4-0.
9. Director’s Report
Nabity stated that Amur Financial is holding off on the Wells Fargo building for a month. They are
looking into some upgrades into the façade. They have purchased the building. City Council did
approve parking district 3. Parking district 3 changes the way assessments are done on parking in the
downtown. Nabity also mentioned there will be a TIF study session will be on Tuesday, January 15th.
10. Adjournment
Murray adjourned the meeting at 4:27 p.m.
The next meeting is scheduled for 4 p.m., Wednesday, February 13, 2019.
Respectfully Submitted
Norma Hernandez
Administrative Assistant
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Community Redevelopment
Authority (CRA)
Wednesday, February 13, 2019
Regular Meeting
Item C1
Review of Financial Reports for January 2019
Staff Contact:
Grand Island Regular Meeting - 2/13/2019 Page 12 / 177
MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
January-19 YEAR TO DATE BUDGET BALANCE USED
CONSOLIDATED
Beginning Cash 259,977 675,752
REVENUE:
Property Taxes - CRA 22,061 62,055 489,000 426,945 12.69%
Property Taxes - Lincoln Pool 8,454 22,304 197,000 174,696 11.32%
Property Taxes -TIF's 190,847 296,363 3,149,000 2,885,669 9.41%
Loan Income (Poplar Street Water Line) - - 14,000 14,000 0.00%
Interest Income - CRA 553 3,614 300 - 1204.63%
Interest Income - TIF'S - 193 - -
Land Sales - - 100,000 100,000 0.00%
Other Revenue - CRA 437 953,311 430,000 - 221.70%
Other Revenue - TIF's - - - -
TOTAL REVENUE 222,352 1,337,841 4,379,300 3,601,310 30.55%
TOTAL RESOURCES 482,329 1,337,841 5,055,052 3,601,310
EXPENSES
Auditing & Accounting - - 3,000 3,000 0.00%
Legal Services - 525 3,000 2,475 17.50%
Consulting Services - - 5,000 5,000 0.00%
Contract Services 3,813 15,148 75,000 59,852 20.20%
Printing & Binding - - 1,000 1,000 0.00%
Other Professional Services 5,103 5,103 16,000 10,897 31.89%
General Liability Insurance - - 250 250 0.00%
Postage - - 200 200 0.00%
Life Safety - - 200,000 200,000 0.00%
Legal Notices - 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 35,000 338,677 926,000 587,323 36.57%
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 43,916 1,633,694 5,003,315 3,505,977 32.65%
INCREASE(DECREASE) IN CASH 178,435 (295,853) (624,015)
ENDING CASH 438,413 (295,853) 51,737 -
CRA CASH 202,945
Lincoln Pool Tax Income Balance 47,336
TIF CASH 188,132
Total Cash 438,413
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JANUARY 2019
Grand Island Regular Meeting - 2/13/2019 Page 13 / 177
MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
January-19 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JANUARY 2019
GENERAL OPERATIONS:
Property Taxes - CRA 22,061 62,055 489,000 426,945 12.69%
Property Taxes - Lincoln Pool 8,454 22,304 197,000 174,696 11.32%
Interest Income 553 3,614 300 - 1204.63%
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 437 953,311 430,000 - 221.70%
TOTAL 31,505 1,041,285 1,230,300 715,640 84.64%
WALNUT HOUSING PROJECT
Property Taxes - - -
Interest Income 193 - -
Other Revenue - - -
TOTAL - 193 - -
GIRARD VET CLINIC
Property Taxes 5,270 - -
TOTAL - 5,270 - -
GEDDES ST APTS-PROCON
Property Taxes - - -
TOTAL - - - -
SOUTHEAST CROSSING
Property Taxes 7,351 7,351 - -
TOTAL 7,351 7,351 - -
POPLAR STREET WATER
Property Taxes 260 4,196 - -
TOTAL 260 4,196 - -
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 - - - -
Grand Island Regular Meeting - 2/13/2019 Page 14 / 177
MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
January-19 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JANUARY 2019
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 4,025 6,184 - -
TOTAL 4,025 6,184 - -
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
January-19 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JANUARY 2019
COPPER CREEK 2014 HOUSES
Property Taxes 1,648 19,023 - (19,023)
TOTAL 1,648 19,023 - (19,023)
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 175,717 175,717 - (175,717)
TOTAL 175,717 175,717 - (175,717)
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)
THINK SMART
Property Taxes 1,845 1,845 (1,845)
TOTAL 1,845 1,845 - (1,845) #DIV/0!
TOTAL REVENUE 222,352 1,337,841 4,379,300 3,641,314 30.55%
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MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
January-19 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JANUARY 2019
EXPENSES -
CRA
GENERAL OPERATIONS:
Auditing & Accounting - 3,000 3,000 0.00%
Legal Services 525 3,000 2,475 17.50%
Consulting Services - 5,000 5,000 0.00%
Contract Services 3,813 15,148 75,000 59,852 20.20%
Printing & Binding - 1,000 1,000 0.00%
Other Professional Services 5,103 5,103 16,000 10,897 31.89%
General Liability Insurance - 250 250 0.00%
Postage - 200 200 0.00%
Lifesafety Grant - 200,000 200,000 0.00%
Legal Notices 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 35,000 338,677 926,000 587,323 0.00%
Other Projects - 25,000 25,000 0.00%
TOTAL CRA EXPENSES 43,916 748,790 1,854,315 1,105,665 40.38%
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 - - - -
Grand Island Regular Meeting - 2/13/2019 Page 17 / 177
MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
January-19 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JANUARY 2019
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 - - - -
Grand Island Regular Meeting - 2/13/2019 Page 18 / 177
MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
January-19 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JANUARY 2019
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 - - -
Grand Island Regular Meeting - 2/13/2019 Page 19 / 177
MONTH ENDED 2018-2019 2019 REMAINING % OF BUDGET
January-19 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JANUARY 2019
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 43,916 1,633,694 5,003,315 3,505,977 32.65%
Grand Island Regular Meeting - 2/13/2019 Page 20 / 177
02/08/2019 09:24 |CITY OF GRAND ISLAND |P 1
briansc |BALANCE SHEET FOR 2019 4 |glbalsht
NET CHANGE ACCOUNT
FUND: 900 COMMUNITY REDEVELOPMENT AUTHOR FOR PERIOD BALANCE__________________________________________________________________________________________________________
ASSETS
900 11110 OPERATING CASH 178,435.29 438,412.87
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 178,435.29 1,408,477.73_______________________________________
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 -222,351.75 -1,337,840.72
900 39600 EXPENDITURE CONTROL 43,916.46 1,633,694.05_______________________________________
TOTAL FUND BALANCE -178,435.29 -95,406.88_______________________________________
TOTAL LIABILITIES + FUND BALANCE -178,435.29 -1,408,477.73=======================================
** END OF REPORT - Generated by Brian Schultz **
Grand Island Regular Meeting - 2/13/2019 Page 21 / 177
Community Redevelopment
Authority (CRA)
Wednesday, February 13, 2019
Regular Meeting
Item D1
Approval of Bills
Staff Contact:
Grand Island Regular Meeting - 2/13/2019 Page 22 / 177
Grand Island Regular Meeting - 2/13/2019 Page 23 / 177
Community Redevelopment
Authority (CRA)
Wednesday, February 13, 2019
Regular Meeting
Item E1
Review of Committed Projects and CRA Properties
Staff Contact:
Grand Island Regular Meeting - 2/13/2019 Page 24 / 177
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
Total Committed $ 550,000.00 $ 450,000.00 $ 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
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
Wing Properties 112 E 3rd (12-12-18) $ 20,000.00 $ 20,000.00 Winter 2019
Total Committed F&L Safety Grant $ 515,000.00 $ 515,000.00 $ - $ -
BUDGET COMMITTED LEFT
Life Safety Budgeted 2019 $ 200,000.00 $ 150,000.00 $ 50,000.00
Façade Budgeted 2019 $ 200,000.00 $ 150,000.00 $ 50,000.00
Other Projects 2019 Budgeted $ 25,000.00 $ - $ 25,000.00
Land - Budgeted 2019 $ - $ - $ -
Land Sales Budgeted 2019 $ (100,000.00) $ - $ (100,000.00)
subtotal $ 300,000.00 $ 25,000.00
Less committed ($965,000.00) ($100,000.00)
Balance remaining $ (665,000.00) $ (75,000.00)
BUDGET PAID LEFT
Building Improvements * $ 926,000.00 $ 338,677.00 $ 587,323.00
*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
January 31, 2019
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Community Redevelopment
Authority (CRA)
Wednesday, February 13, 2019
Regular Meeting
Item G1
Fire and Life Safety Grant Request - 411 W. Third Street (First
Floor apartment)
Staff Contact:
Grand Island Regular Meeting - 2/13/2019 Page 26 / 177
Fire and Life Safety Grant Program Application Project Redeveloper Information I. Applicant Name:
____________________________________________________________
Address: ___________________________________________________________________
Telephone No.: _____________________________________________________________
Contact: ___________________________________________________________________
II. Legal Street Address of Project Site:
__________________________________________
III. Present Ownership of Project Site: ____________________________________________
IV. Proposed Project: Describe in detail; attach plans and specifications:
Proposed Number of Upper Story 1 Bedroom Units ______ Proposed Number of Upper Story 2+ Bedroom Units ______ Other Info: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
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V. Building Details A. Actual Purchase Price $ ______________
B. Assessed Value of Property $ ______________
C. When Acquired ______________
D. Number of Floors ______________
E. Square Footage of Building ______________
F. Current Use of Building
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
VI. Construction Costs A. Total Estimated Renovation or Building Costs $ ______________
B. Estimated Cost of Life Safety Improvements:
Fire Sprinklers $ ______________
Exiting $ ______________
Electric Upgrades $ ______________
Water Upgrades for Sprinklers $ ______________
C. Other Construction Costs:
First Floor Renovation $ ______________
Second Floor Renovation $ ______________
Third Floor Renovation $ ______________
Fourth Floor Renovation $ ______________
Basement Renovation $ ______________
Roof $ ______________
Heating and AC $ ______________
Façade Improvements/Maintenance $ ______________
Other Construction Costs
______________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
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VII. Source of Financing: Developer Equity: $ ______________
Commercial Bank Loan: $ ______________
Historic Tax Credits: $ ______________
Tax Increment Financing: $ ______________
Low Income Tax Credits $ ______________
Other (Describe________________________________) $ ______________
VIII. Name & Address of Architect, Engineer and General Contractor:
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
IX. Project Construction Schedule: A. Construction Start Date: _________________________________________________
B. Construction Completion Date: ___________________________________________
Grant Notes:
The CRA may grant up to $20,000 per new upper story 2+bedroom unit and $15,000 per
new upper story 1 bedroom unit. The final amount will be determined upon approval of
the grant and is at the discretion of the CRA. Applications for this program may be
submitted up to for the next fiscal year (Beginning October 1) on or after July 1.
Applications will be considered in the order received. Only complete applications will be
considered for approval. Applications must be submitted at least 30 days prior to the
meeting during which they will be considered for approval.
Post Office Box 1968
Grand Island, Nebraska 68802-1968
Phone: 308 385-5240
Fax: 308 385-5423
Email: cnabity@grand-island.com
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Community Redevelopment
Authority (CRA)
Wednesday, February 13, 2019
Regular Meeting
Item H1
Redevelopment Contract for Paramount Development LLC. - 411
W. Third Street
Staff Contact:
Grand Island Regular Meeting - 2/13/2019 Page 30 / 177
Paramount Development II
Paramount Development, LLC II
REDEVELOPMENT CONTRACT
This Redevelopment Contract is made and entered into as of the _______day of
___________, 2019, by and between the Community Redevelopment Authority of the City of
Grand Island, Nebraska ("Authority"), and Paramount Development, LLC, a Nebraska limited
liability company ("Redeveloper").
WITNESSETH:
WHEREAS, the City of Grand Island, Nebraska (the "City'), in furtherance of the
purposes and pursuant to the provisions of Section 12 of Article VIII of the Nebraska
Constitution and Sections 18-2101 through 18-2154, Reissue Revised Statutes of Nebraska,
2012, as amended (collectively the "Act"), has designated an area within the City as blighted and
substandard;
WHEREAS, the Authority has adopted, after approval by the Mayor and Council of the
City, that redevelopment plan amendment entitled "Redevelopment Plan Amendment
Grand Island CRA Area #1 December 2018" (the "Redevelopment Plan");
WHEREAS, Authority and Redeveloper desire to enter into this Redevelopment Contract
in order to implement the Redevelopment Plan and provide for the redevelopment of lots and
lands located in a blighted and substandard area;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein set
forth, Authority and Redeveloper do hereby covenant, agree and bind themselves as follows:
ARTICLE I
DEFINITIONS AND INTERPRETATION
Section 1.01 Terms Defined in this Redevelopment Contract.
Unless the context otherwise requires, the following terms shall have the following
meanings for all purposes of this Redevelopment Contract, such definitions to be equally
applicable to both the singular and plural forms and masculine, feminine and neuter gender of
any of the terms defined:
"Act" means Section 12 of Article VIII of the Nebraska Constitution, Sections 18-2101
through 18-2154, Reissue Revised Statutes of Nebraska, 2012, as amended, and acts amendatory
thereof and supplemental thereto.
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Paramount Development II
"Authority" means the Community Redevelopment Authority of the City of Grand Island,
Nebraska.
"City" means the City of Grand Island, Nebraska.
"Governing Body" means the Mayor and City Council of the City.
"Holder(s)" means the registered owner or owners of Indebtedness issued by the Authority
from time to time outstanding.
"Indebtedness" means any notes, loans, and advances of money or other indebtedness,
including interest and premium, if any, thereon, incurred by the Authority pursuant to the
Resolution and Article III hereof to provide financing for a portion of the Project Costs and
secured in whole or in part by TIF Revenues. The Indebtedness as initially issued by the
Authority shall consist of the Authority's Tax Increment Development Revenue Note (Paramount
Development Project II), Series 2019, to be issued in an amount not to exceed $199,000 in
substantially the form set forth on Exhibit C and purchased by the Redeveloper as set forth in
Section 3.04 of this Redevelopment Contract.
"Liquidated Damages Amount' means the amounts to be repaid to Authority by
Redeveloper pursuant to Section 6.02 of this Redevelopment Contract.
"Project" means the improvements to the Redevelopment Project Area, as further
described in Exhibit B attached hereto and incorporated herein by reference and, as used herein,
shall include the Redevelopment Project Property and additions and improvements thereto.
"Project Cost Certification" means a statement prepared and signed by the Redeveloper
verifying the Redeveloper has become legally obligated for, or has paid the Project Costs
identified on Exhibit D.
"Project Costs" means only costs or expenses incurred by Redeveloper for the purposes
set forth in §l8-2103(28)(a) through (g), inclusive, including the providing for such costs by the
exercise of the powers set forth in §18-2107(4) of the Act, all as identified on Exhibit D. Project
Costs shall include, but not be limited to acquisition, demolition and rehabilitation expenditures,
site preparation costs, utility extensions and costs of the Authority for legal and plan preparation,
all as described in Section 3.04 of this Redevelopment Contract.
"Redeveloper" means Paramount Development, LLC, a Nebraska limited liability
company.
"Redevelopment Project Area" means that certain real property situated in the City of
Grand Island, Hall County, Nebraska which has been declared blighted and substandard by the
City pursuant to the Act, and which is more particularly described on Exhibit A attached hereto
and incorporated herein by this reference. All such legal descriptions are subject to change based
upon any re-platting requested by the Redeveloper and approved by the City.
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Paramount Development II
"Redevelopment Project Property" means all of the Redevelopment Project Area which is
the site for the improvements constituting the Project, as more particularly described on Exhibit
A attached hereto and incorporated herein by this reference.
"Redevelopment Contract" means this redevelopment contract between the Authority and
Redeveloper with respect to the Project.
"Redevelopment Plan" means the Redevelopment Plan Amendment (also defined in the
recitals hereto) for the Redevelopment Project Area related to the Project, as attached hereto as
Exhibit B, prepared by the Authority, approved by the City and adopted by the Authority
pursuant to the Act.
"Resolution" means the Resolution of the Authority authorizing the issuance of the
Indebtedness, as supplemented from time to time, and also approving this Redevelopment
Contract.
"TIF Revenues" means incremental ad valorem taxes generated on the Redevelopment
Project Property by the Project which are to be allocated to and paid to the Authority pursuant to
the Act.
Section 1.02 Construction and Interpretation.
The provisions of this Redevelopment Contract shall be construed and interpreted in
accordance with the following provisions:
(a) Whenever in this Redevelopment Contract it is provided that any person may
do or perform any act or thing the word “may" shall be deemed permissive and not
mandatory and it shall be construed that such person shall have the right, but shall not be
obligated, to do and perform any such act or thing.
(b) The phrase "at any time" shall be construed as meaning at any time or from
time to time.
(c) The word "including" shall be construed as meaning "including, but not
limited to."
(d) The words "will" and "shall" shall each be construed as mandatory.
(e) The words "herein," "hereof," "hereunder", "hereinafter" and words of
similar import shall refer to the Redevelopment Contract as a whole rather than to any
particular paragraph, section or subsection, unless the context specifically refers thereto.
(f) Forms of words in the singular, plural, masculine, feminine or neuter shall be
construed to include the other forms as the context may require.
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Paramount Development II
(g) The captions to the sections of this Redevelopment Contract are for
convenience only and shall not be deemed part of the text of the respective sections and
shall not vary by implication or otherwise any of the provisions hereof.
ARTICLE II
FINDINGS AND REPRESENTATIONS
Section 2.01 Findings of Authority.
The Authority makes the following findings:
(a) The Authority is a duly organized and validly existing community
Redevelopment Authority under the Act.
(b) The Redevelopment Plan has been duly approved by the City and adopted by
the Authority pursuant to Sections 18-2109 through 18-2117 of the Act.
(c) The Authority deems it to be in the public interest and in furtherance of the
purposes of the Act to accept the proposal submitted by Redeveloper as specified herein.
(d) The Redevelopment Project is expected to achieve the public purposes of the
Act by among other things, increasing employment, improving public infrastructure,
increasing the tax base, and lessening blighted and substandard conditions in the
Redevelopment Project Area and other purposes set forth in the Act.
(e) (1) The Redevelopment Plan is feasible and in conformity with the general
plan for the development of the City as a whole and the Redevelopment Plan is in
conformity with the legislative declarations and determinations set forth in the Act, and
(2) Based on representations made by the Redeveloper and information
provided to the Authority:
(i) the Project would not be economically feasible without the use of
tax-increment financing, and
(ii) the Project would not occur in the Redevelopment Project Area
without the use of tax-increment financing.
(iii) the Authority has documented that the Project would not be
economically feasible without the use of funds provided by §18-2147 of the
Act by analyzing that the project without such funds would result in a
negative cash flow on an annual basis.
(f) The Authority has determined that the costs and benefits of the Project,
including costs and benefits to other affected political subdivisions, the economy of the
community, and the demand for public and private services have been analyzed by the
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Paramount Development II
Authority and have been found to be in the long-term best interest of the community
impacted by the Project.
(g) The Authority has determined that the proposed land uses and building
requirements in the Redevelopment Area are designed with the general purpose of
accomplishing, in conformance with the general plan, a coordinated, adjusted, and
harmonious development of the City and its environs which will, in accordance with
present and future needs, promote health, safety, morals, order, convenience, prosperity,
and the general welfare, as well as efficiency and economy in the process of development:
including, among other things, adequate provision for traffic, vehicular parking, the
promotion of safety from fire, panic, and other dangers, adequate provision for light and
air, the promotion of the healthful and convenient distribution of population, the provision
of adequate transportation, water, sewerage and other public utilities, schools, parks,
recreational and community facilities, and other public requirements, the promotion of
sound design and arrangement, the wise and efficient expenditure of public funds, and the
prevention of the recurrence of insanitary or unsafe dwelling accommodations, or
conditions of blight.
(h) The Authority has determined and documented that the location of the Project
is in vacant mall property and this Project is appropriate to prevent the spread of blight
and substandard conditions as vacant malls are no longer are attractive to be utilized for
their original use and repurposing a portion of the vacant structure increases utilization
and tax base.
Section 2.02 Representations of Redeveloper.
The Redeveloper makes the following representations:
(a) The Redeveloper is a Nebraska limited liability company having the power
to enter into this Redevelopment Contract and perform all obligations contained herein
and by proper action has been duly authorized to execute and deliver this Redevelopment
Contract. Prior to the execution and delivery of this Redevelopment Contract, the
Redeveloper has delivered to the Authority a certificate of good standing, a certified copy
of the Redeveloper's by-laws and a certified copy of the resolution or resolutions
authorizing the execution and delivery of this Redevelopment Contract.
(b) The execution and delivery of this Redevelopment Contract and the
consummation of the transactions herein contemplated will not conflict with or constitute
a breach of or default under any debenture, note or other evidence of indebtedness or any
contract, loan agreement or lease to which Redeveloper is a party or by which it is bound,
or result in the creation or imposition of any lien, charge or encumbrance of any nature
upon any of the property or assets of the Redeveloper contrary to the terms of any
instrument or agreement.
(c) There is no litigation pending or to the best of its knowledge threatened
against Redeveloper affecting its ability to carry out the acquisition, construction,
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Paramount Development II
equipping and furnishing of the Project or the carrying into effect of this Redevelopment
Contract or in any other matter materially affecting the ability to Redeveloper to perform
its obligations hereunder.
(d) The Project would not be economically feasible without the use of tax
increment financing.
(e) The Project would not occur in the Redevelopment Project Area without the
use of tax-increment financing.
(f) The Redeveloper has not filed and does not intend to file an application with
the Department of Revenue to receive tax incentives under the Nebraska Advantage Act
related to a project in the redevelopment project area. In as much as no such application
has been filed, none has been approved.
(g) No application has been filed with the Department of Revenue requesting a
refund of any local option sales tax.
ARTICLE III
OBLIGATIONS OF THE AUTHORITY
Section 3.01 Division of Taxes.
In accordance with Section 18-2147 of the Act and the terms of the Resolution, the
Authority hereby provides that any ad valorem tax on any Lot or Lots located in the
Redevelopment Project Area for the benefit of any public body be divided for a period of fifteen
years after the effective date (the “Effective Date”), as described in Section 18-2147 (1) of the
Act, which Effective Date shall be the January 1, 2020. Said taxes shall be divided as follows:
(a) That portion of the ad valorem tax on the real estate located in the
Redevelopment Project Area which is produced by levy at the rate fixed each year by or
for each public body upon the "redevelopment project valuation" (as defined in the Act)
of the Redevelopment Project Area shall be paid into the funds of each such public body
in the same proportion as all other taxes collected by or for the bodies; and
(b) That portion of the ad valorem tax on real property in the Redevelopment
Project Area in excess of such amount (the "Incremental Ad Valorem Tax"), if any, shall
be allocated to, is pledged to, and, when collected, paid into a special fund of the
Authority (designated in the Resolution as the "Note Fund") to pay the principal of, the
interest on, and any premium due in connection with the Indebtedness. When such
Indebtedness, including interest and premium due have been paid, the Authority shall so
notify the County Assessor and County Treasurer and all ad valorem taxes upon real
property in such Phase shall be paid into the funds of the respective public bodies.
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Paramount Development II
Section 3.02 Issuance of Indebtedness
The Authority shall authorize the issuance of the Indebtedness in the form and stated
principal amount and bearing interest and being subject to such terms and conditions as are
specified in the Resolution and this Redevelopment Contract; provided, at all times the
maximum amount of the Indebtedness shall be limited to the lesser of (i) the stated face amount
of the Indebtedness, or (ii) the sum of all Project Costs incurred by the Redeveloper as set forth
on Exhibit D. No Indebtedness will be issued until Redeveloper has acquired fee title to the
Redevelopment Project Property and become obligated for construction of the additions and
improvements forming a part of the Project as described in the Plan.
Prior to March 1, 2019, the Authority shall issue one Tax Increment Development
Revenue Note, in one taxable series, in a maximum principal amount of One Hundred Ninety
Nine Thousand and no/100 Dollars ($199,000), in substantially the form shown on the attached
Exhibit C (“TIF Note”), for net funds available to be purchased by Redeveloper (“TIF Note
Purchaser”), in a written form acceptable to Authority’s attorney, and receive Note proceeds
from the TIF Note Purchaser in said amount. At the option of the Authority, the Authority shall
make a grant to Redeveloper in such amount, and such grant shall offset TIF Note Purchaser’s
obligation to purchase the TIF Note. Subject to the terms of this Agreement and the Resolution,
the Authority’s Treasurer on behalf of the Authority shall have the authority to determine the
timing of issuing the Indebtedness and all the other necessary details of the Indebtedness.
The Redeveloper agrees to purchase the Indebtedness at a price equal to the principal
amount thereof, in a private placement satisfactory to the Authority as to its terms and
participants (including any pledgee thereof). Neither the Authority nor the City shall have any
obligation to provide for the sale of the Indebtedness. It is the sole responsibility of the
Redeveloper to effect the sale of the Indebtedness by purchasing the Indebtedness in accordance
with the terms of this Redevelopment Contract and the Resolution. Redeveloper acknowledges
that it is its understanding and the Authority's understanding that interest on the Indebtedness
will be includable in gross income for federal income tax purposes and subject to Nebraska State
income taxation.
Section 3.03 Pledge of Revenues.
Under the terms of the Resolution, the Authority pledges 100% of the available annual
TIF Revenues derived from the Redevelopment Project Property as security for and to provide
payment of the Indebtedness as the same fall due (including payment of any mandatory
redemption amounts set for the Indebtedness in accordance with the terms of the Resolution).
Section 3.04 Purchase and Pledge of Indebtedness/Grant of Net Proceeds of Indebtedness.
The Redeveloper has agreed to purchase the Indebtedness from the Authority for a price
equal to the principal amount thereof, payable as provided in Section 3.02 and this Section 3.04.
The Redevelopment Plan provides for the Redeveloper to receive a grant under this
Redevelopment Contract. In accordance with the terms of the Redevelopment Plan the
Redeveloper is to receive a grant sufficient to pay the costs of site acquisition, demolition and
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Paramount Development II
rehabilitation expenditures, all improvements related to Project public infrastructure costs, site
preparation costs, utility extensions and costs of the Authority for legal and plan preparation
including those items described on Exhibit D (the "Project Costs"), in the aggregate maximum
amount not to exceed $199,000. Notwithstanding the foregoing, the aggregate amount of the
Indebtedness and the grant shall not exceed the amount of Project Costs as certified pursuant to
Section 4.02 of this Redevelopment Contract. Such grant shall be made to the Redeveloper upon
certification of Project Costs as set forth herein and in the Resolution, and payment purchase of
the Indebtedness as provided in Section 3.02, unless Redeveloper elects to offset the payment of
the purchase of the Indebtedness with the grant proceeds as provided herein and in the
Resolution. The Authority shall have no obligation to provide grant funds from any source other
than as set forth in the Resolution and this Redevelopment Contract.
Section 3.05 Creation of Funds.
In the Resolution, the Authority has provided for the creation of the following funds and
accounts which funds shall be held by the Authority separate and apart from all other funds and
moneys of the Authority and the City:
(a) a special trust fund called the “Paramount Development Redevelopment Project II Note
Fund” (the “Note Fund”). All of the TIF Revenues shall be deposited into the Note Fund. The TIF
Revenues accumulated in the Note Fund shall be used and applied on the Business Day prior to
each Interest Payment Date (i) to make any payments to the City or the Authority as may be
required under the Redevelopment Contract and (ii) to pay principal of or interest on the Note to the
extent of any money then remaining the Note Fund on such Interest Payment Date. Money in the
Note Fund shall be used solely for the purposes described herein and in the Resolution. All
Revenues received through and including December 31, 2034 shall be used solely for the payments
required herein and by the Resolution; and
(b) a special trust fund called the “Paramount Development Redevelopment Project II Fund”
(the “Project Fund”) The Authority shall disburse any money on deposit in the Project Fund from
time to time to pay or as reimbursement for payment made for the Project Costs in each case within
5 Business Days after completion of the steps set forth herein and in the Resolution. If a sufficient
amount to pay a properly completed Disbursement Request (as defined in Section 4.02) is not in the
Project Fund at the time of the receipt by the Authority of such request, the Authority shall notify
the owner of the Note and such owner may deposit an amount sufficient to pay such request with
the Authority for such payment. As set forth in the Resolution, if the Redeveloper is the owner of
the Note and the Redeveloper so elects, the Authority shall make a grant to Redeveloper in the
amount of an approved Disbursement Request; in such event, the approved Disbursement Request
amount shall offset funding of the Note.
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Paramount Development II
ARTICLE IV
OBLIGATIONS OF REDEVELOPER
Section 4.01 Construction of Project; Note; Insurance.
(a) Redeveloper will acquire the Project, demolish and rehabilitate structures on the site,
prepare the site for redevelopment, install all required utilities and improvements in the public
right-of-way in accordance with the plans and specifications provided to the Authority.
Redeveloper will coordinate with the City for the City’s design and construction required for the
installation of all public infrastructure improvements and right-of-way improvements. The
Redeveloper shall provide and pay for infrastructure installation.
Redeveloper shall pay for the costs of site acquisition, site preparation, demolition and
rehabilitation, utility extension, public infrastructure and costs of the Authority as set forth on
Exhibit D, from the grant provided in Section 3.04 hereof. Redeveloper shall be solely
responsible for obtaining all permits and approvals necessary to acquire, construct and equip the
Project. Until construction of the Project has been completed, Redeveloper shall make reports in
such detail and at such times as may be reasonably requested by the Authority as to the actual
progress of Redeveloper with respect to construction of the Project. Such reports shall include
actual expenditures incurred as described on Exhibit D.
(b) Any general contractor chosen by the Redeveloper shall be required to obtain and keep
in force at all times until completion of construction, policies of insurance including coverage for
contractors' general liability and completed operations and a penal bond as required by the Act or
as is otherwise required by law. The City, the Authority and the Redeveloper shall be named as
additional insureds. Any contractor chosen by the Redeveloper or the Redeveloper itself, as
owner, shall be required to purchase and maintain property insurance upon the Project to the full
insurable value thereof. This insurance shall insure against the perils of fire and extended
coverage and shall include 'All Risk" insurance for physical loss or damage. The contractor with
respect to any specific contract or the Redeveloper shall also carry insurance on all stored
materials. The contractor or the Redeveloper, as the case may be, shall furnish the Authority and
the City with a Certificate of Insurance evidencing policies as required above. Such certificates
shall state that the insurance companies shall give the Authority prior written notice in the event
of cancellation of or material change in any of any of the policies.
(c) Notwithstanding any provision herein to the contrary, in the event Redeveloper has
not acquired fee simple title to the Redevelopment Project Area on or before December 1, 2019,
this Redevelopment Contract shall be null and void and of no force or effect effective as of the
date of execution hereof, and neither party shall have any liability or obligation to the other party
with respect hereto.
(d) The Redeveloper shall provide a payment and performance bond from a bond company
doing business in the state of Nebraska in the total amount of $25,000, for purposes of providing
assurance that the Redeveloper will acquire title to the Redevelopment Project Area and pay all
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Paramount Development II
Redevelopment Project Costs. The City and Authority shall be named as beneficiaries under
such bond.
Section 4.02 Cost Certification & Disbursement of Note Proceeds.
Proceeds of the Note may be advanced and disbursed in the manner set forth below:
(a) There shall be submitted to the Authority a grant disbursement request (the
“Disbursement Request”), executed by the Director of the City’s Planning Department and an
authorized representative of the Redeveloper, (i) certifying that a portion of the Project has been
substantially completed and (ii) certifying the actual costs incurred by the Redeveloper in the
completion of such portion of the Project.
(b) If the costs requested for reimbursement under the Disbursement Request are
currently reimbursable under Exhibit D of this Redevelopment Contract and the Community
Redevelopment Law, the Authority shall evidence such allocation in writing and inform the owner
of the Note of any amounts allocated to the Note.
(c) Upon notification from the Authority as described in Section 4.02(b), deposits to the
accounts in the Project Fund may be made from time to time from funds received by the Authority
from the owner of the Note (if other than the Redeveloper) in the amounts necessary to pay amounts
requested in properly completed, signed and approved written Disbursement Requests as described
herein. Such amounts shall be proceeds of the Note and the Treasurer of the Authority shall inform
the Registrar (as defined in the Note Resolution) in writing of the date and amount of such deposits.
At the option of the Redeveloper, if the Redeveloper is the owner of the Note, the Authority shall
make a grant to Redeveloper in the amount of the approved Disbursement Request; in such event,
the approved Disbursement Request amount shall offset funding of the Note. The Registrar shall
keep and maintain a record of the amounts deposited into the Project Fund from Note proceeds
pursuant to the terms of this Resolution as “Principal Amount Advanced” and shall enter the
aggregate principal amount then Outstanding as the “Cumulative Outstanding Principal Amount” on
its records maintained for the Note. The aggregate amount deposited into the Project Fund from
proceeds of the Note shall not exceed $199,000.
(d) Redeveloper shall retain copies of all supporting documents that are associated
with the redevelopment plan or redevelopment project and that are received or generated by the
Redeveloper for three years following the end of the last fiscal year in which ad valorem taxes
are divided and provide such copies to the city as needed to comply with the city’s retention
requirements under section 18-2117.04 of the Act. For purposes of this subsection, supporting
document includes any cost-benefit analysis conducted pursuant to section 18-2113 of the Act
and any invoice, receipt, claim, or contract received or generated by the redeveloper that
provides support for receipts or payments associated with the division of taxes.
Section 4.03 No Discrimination.
Redeveloper agrees and covenants for itself its successors and assigns that it will not
discriminate against any person or group of persons on account of race, sex, color, religion,
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national origin, ancestry, disability, marital status or receipt of public assistance in connection
with the Project. Redeveloper, for itself and its successors and assigns, agrees that during the
construction of the Project, Redeveloper will not discriminate against any employee or applicant
for employment because of race, religion, sex, color, national origin, ancestry, disability, marital
status or receipt of public assistance. Redeveloper will comply with all applicable federal, state
and local laws related to the Project.
Section 4.04 Assignment or Conveyance.
This Redevelopment Contract shall not be assigned by the Redeveloper without the
written consent of the Authority. Such consent shall not be unreasonably withheld. Redeveloper
agrees that it shall not convey any Lot, Unit or any portion thereof or any structures thereon to
any person or entity that would be exempt from payment of real estate taxes, and that it will not
make application for any structure, or any portion thereof, to be taxed separately from the
underlying land of any Lot.
Section 4.50 Payment of Authority Costs.
Redeveloper shall pay to the Authority the following sums upon execution hereof:
a. $4,000 for legal expenses of Authority
b. $1,000 for City and Authority administrative accounting of incremental tax payments.
Section 4.6 Designation of Condominium Unit Number.
Prior to commencement of the Project, Redeveloper shall have filed with the office of the
Hall County, Nebraska, Register Deeds a master condominium deed and delivered to the
Authority documentary evidence that the Redeveloper has complied with all statutory
requirements of the Nebraska Condominium Act. In addition Redeveloper shall deliver a written
certification of the unit numbers subject to the division of taxes as described in section 3.01
hereof.
ARTICLE V
FINANCING REDEVELOPMENT PROJECT; ENCUMBRANCES
Section 5.01 Financing
Redeveloper shall pay all costs related to the redevelopment of the Redevelopment Project
Area and the Redevelopment Project Property which are in excess of the amounts paid from the
proceeds of the grant provided from the proceeds of the Indebtedness and granted to
Redeveloper. Redeveloper shall timely pay all costs, expenses, fees, charges and other amounts
associated with the Project.
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ARTICLE VI
DEFAULT, REMEDIES; INDEMNIFICATION
Section 6.01 General Remedies of Authority and Redeveloper.
Subject to the further provisions of this Article VI, in the event of any failure to perform
or breach of this Redevelopment Contract or any of its terms or conditions, by any party hereto
or any successor to such party, such party, or successor, shall, upon written notice from the other,
proceed immediately to commence such actions as may be reasonably designed to cure or
remedy such failure to perform or breach which cure or remedy shall be accomplished within a
reasonable time by the diligent pursuit of corrective action. In case such action is not taken, or
diligently pursued, or the failure to perform or breach shall not be cured or remedied within a
reasonable time, this Redevelopment Contract shall be in default and the aggrieved party may
institute such proceedings as may be necessary or desirable to enforce its rights under this
Redevelopment Contract, including, but not limited to, proceedings to compel specific
performance by the party failing to perform or in breach of its obligations. The Redeveloper
hereby acknowledges and agrees that the Authority shall have completed its required
performances and satisfied all of its obligations under this Redevelopment Contract upon the
issuance of the Indebtedness and the subsequent payment of grant amounts to the Redeveloper as
set forth in Article III hereof and by complying with the obligations of all Redevelopment
Contract Amendments.
Section 6.02 Additional Remedies of Authority
In the event that (each such event an "event of default"):
(a) the Redeveloper, or its successor in interest, shall fail to commence the
construction of the improvements included in the Project Costs on or before May 1, 2019,
or shall abandon construction work related to the Project Costs, once commenced, for any
period of 180 days, excepting delays caused by inclement weather,
(b) the Redeveloper, shall fail to pay real estate taxes or assessments on the
Redevelopment Project Property owned by the Redeveloper or any part thereof when due;
and
(c) there is a violation of any other provision of this Redevelopment Contract,
and such failure or action by the Redeveloper has not been cured within 90 days following
written notice from Authority, then the Redeveloper shall be in default of this
Redevelopment Contract.
In the event of such failure to perform, breach or default occurs and is not cured in the
period herein provided, the parties agree that the damages caused to the Authority would be
difficult to determine with certainty and that a reasonable estimation of the amount of damages
that could be incurred is the amount of the grant to Redeveloper pursuant to Section 3.04 of this
Redevelopment Contract, less any reductions in the principal amount of the Indebtedness, plus
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interest on such amounts as provided herein (the "Liquidated Damages Amount"). Upon the
occurrence of an event of default, the Liquidated Damages Amount shall be paid by Redeveloper
to Authority within 30 days of demand from Authority given to the Redeveloper.
Interest shall accrue on the Liquidated Damages Amount at the rate of three percent (3%)
per annum and interest shall commence from the date that the Authority gives notice to the
Redeveloper demanding payment.
Payment of the Liquidated Damages Amount shall not relieve Redeveloper of its
obligation to pay real estate taxes or assessments with respect to the Redevelopment Project
Property and the Project.
Redeveloper, on or before contracting for work included within the Project Costs, shall
furnish to the Authority copies of labor and materials payment bonds and performance bonds for
each contract entered into by Redeveloper related to Project Costs. Each such bond shall show
the Authority and the City as well as the Redeveloper as beneficiary of any such bond, as and to
the extent commercially obtainable (as determined in the discretion of the Authority). In
addition, the Redeveloper shall provide a penal bond with good and sufficient surety to be
approved by the Authority, conditioned that the Redeveloper shall at all times promptly make
payments of all amounts lawfully due to all persons supplying or furnishing to any contractor or
his or her subcontractors (for each contract entered into by Redeveloper related to Project Costs)
with labor or materials performed or used in the prosecution of the work provided for in such
contract, and will indemnify and save harmless the Authority to the extent of any payments in
connection with the carrying out of such contracts which the Authority may be required to make
under the law.
Section 6.03 Remedies in the Event of Other Redeveloper Defaults.
In the event the Redeveloper fails to perform any other provisions of this Redevelopment
Contract (other than those specific provisions contained in Section 6.02), the Redeveloper shall
be in default. In such an instance, the Authority may seek to enforce the terms of this
Redevelopment Contract or exercise any other remedies that may be provided in this
Redevelopment Contract or by applicable law; provided, however, that any defaults covered by
this Section shall not give rise to a right or rescission on termination of this Redevelopment
Contract, and shall not be covered by the Liquidated Damages Amount.
Section 6.04 Forced Delay Beyond Party's Control.
For the purposes of any of the provisions of this Redevelopment Contract, neither the
Authority nor the Redeveloper, as the case may be, nor any successor in interest, shall be
considered in breach of or default in its obligations with respect to the conveyance or preparation
of the Redevelopment Area or any part thereof for redevelopment, or the beginning and
completion of construction of the Project, or progress in respect thereto, in the event of forced
delay in the performance of such obligations due to unforeseeable causes beyond its control and
without its fault or negligence, including, but not restricted to, acts of God, or of the public
enemy, acts of the Government, acts of the other party, fires, floods, epidemics, quarantine
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restrictions, strikes, freight embargoes, and unusually severe weather or delays in subcontractors
due to such causes; it being the purpose and intent of this provision that in the event of the
occurrence of any such forced delay, the time or times for performance of the obligations of the
Authority or of the Redeveloper with respect to construction of the Project, as the case may be,
shall be extended for the period of the forced delay: Provided, that the party seeking the benefit
of the provisions of this section shall, within thirty (30) days after the beginning of any such
forced delay, have first notified the other party thereto in writing, and of the cause or causes
thereof and requested an extension for the period of the forced delay.
Section 6.05 Limitations of Liability; Indemnification.
Notwithstanding anything in this Article VI or this Redevelopment Contract to the
contrary, neither the City, the Authority, nor their respective elected officials, officers, directors,
appointed officials, employees, attorneys, agents or their governing bodies shall have any
pecuniary obligation or monetary liability under this Redevelopment Contract. The sole
obligation of the Authority under this Redevelopment Contract shall be the issuance of the
Indebtedness and granting of a portion of the proceeds thereof to Redeveloper, and full
compliance with the terms specifically set forth Article III hereof and payment of TIF Revenues
pledged pursuant to the Resolution. The Redeveloper releases the City and Authority from,
agrees that neither the City nor Authority shall be liable for, and agrees to indemnify and hold
the City and Authority harmless from any liability for any loss or damage to property or any
injury to or death of any person that may be occasioned by any cause whatsoever pertaining to
the Project.
The Redeveloper will indemnify and hold each of the City and Authority and their
respective elected officials, directors, officers, appointed officials, attorneys, agents, employees
and members of their governing bodies free and harmless from any loss, claim, damage, demand,
tax, penalty, liability, disbursement, expense, excluding litigation expenses, attorneys' fees and
expenses, or court costs arising out of any damage or injury, actual or claimed, of whatsoever
kind or character, to property (including loss of use thereof) or persons, occurring or allegedly
occurring in, on or about that portion of the Project owned by the Redeveloper, during the term
of this Redevelopment Contract or arising out of any action or inaction of Redeveloper, related to
activities of the Redeveloper or its agents during the construction of the public infrastructure or
public right of ways in the Project.
ARTICLE VII
MISCELLANEOUS
Section 7.01 Notice Recording.
This Redevelopment Contract or a notice memorandum of this Redevelopment Contract
may be recorded in the office of the Register of Deeds of Hall County, Nebraska.
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Section 7.02 Governing Law.
This Redevelopment Contract shall be governed by the laws of the State of Nebraska,
including but not limited to the Act.
Section 7.03 Binding Effect: Amendment, Assignment.
This Redevelopment Contract shall be binding on the parties hereto and their respective
successors and assigns. The Redevelopment Contract shall not be amended except by a writing
signed by the party to be bound. The Redeveloper may assign its rights and obligations to a
controlled entity which shall be bound by all the terms hereof.
Section 7.04 Effective Date and Implementation of Redevelopment Contract.
This Agreement is in full force and effect from and after the date of execution hereof by
both the Redeveloper and the Authority.
Section 7.05 Notices to Parties.
Notices to Parties shall be mailed by U. S. Mail to the following addresses:
Redeveloper:
Paramount Development, LLC
P.O. Box 290 Alda, NE 68810
Authority and City:
Director
Grand Island Community Redevelopment Authority
Hall County Regional Planning Department
100 E 1st Street
P.O. Box 1968
Grand Island, NE 68802
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IN WITNESS WHEREOF, City and Redeveloper have signed this Redevelopment Contract as
of the date and year first above written.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
ATTEST: GRAND ISLAND, NEBRASKA
____________________________ By:________________________
Secretary Chairman
STATE OF NEBRASKA )
) SS
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of 2019, by
________________ and ________________, Chairman and Secretary, respectively, of the
Community Redevelopment Authority of the City of Grand Island, Nebraska, on behalf of the
Authority.
____________________________
Notary Public
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Paramount Development II
Paramount Development, LLC
By:______________________
Manager
STATE OF NEBRASKA )
) SS
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of _____,2019, by
__________________________, Manager of Paramount Development, LLC, on behalf of the
limited liability company.
________________________
Notary Public
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EXHIBIT A
DESCRIPTION OF REDEVELOPMENT AREA
Legal Descriptions: Condominium Unit Three (3) City Centre Condominiums in the City of
Grand Island, Hall County, Nebraska as shown in Declaration of City Centre Condominiums
filed as Document No. 201907839 and Amendment filed as Document No. 201907862.
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EXHIBIT B
REDEVELOPMENT PLAN
[Attach copy of Redevelopment Plan Amendment]
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EXHIBIT C
(FORM OF NOTE)
UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF HALL
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
TAX INCREMENT DEVELOPMENT REVENUE NOTE
(PARAMOUNT DEVELOPMENT REDEVELOPMENT PROJECT II), SERIES 2019
No. R-1 Up to $199,000
(subject to reduction as described herein)
Date of Date of Rate of
Original Issue Maturity Interest
December 31, 2034 0.0%
REGISTERED OWNER: Paramount Development, LLC
PRINCIPAL AMOUNT: SEE SCHEDULE 1 ATTACHED HERETO
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE
NOTE SET FORTH ON THE FOLLOWING PAGES, WHICH FURTHER PROVISIONS
SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT
THIS PLACE.
IN WITNESS WHEREOF, THE COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA has caused this Note to
be signed by the manual signature of the Chairman of the Authority, countersigned by the
manual signature of the Secretary of the Authority, and the City’s corporate seal imprinted
hereon.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA
[S E A L] By: (manual signature)
Chairman
By: (manual signature)
Secretary
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The COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA (the “Authority”) acknowledges itself indebted to, and for
value received hereby promises to pay, but solely from certain specified tax revenues and other
funds hereinafter specified, to the Registered Owner named above, or registered assigns, on the
Date of Maturity stated above (or earlier as hereinafter referred to), the Principal Amount on
Schedule 1 attached hereto upon presentation and surrender hereof at the office of the registrar
and paying agent herefor, the Treasurer of the City of Grand Island, Nebraska (the “Registrar”),
and in like manner to pay interest on the Cumulative Outstanding Principal Amount reflected in
Schedule 1 at the Rate of Interest stated above, calculated on the basis of a 360-day year
consisting of twelve, 30-day months, from the Date of Original Issue stated above, or the most
recent interest payment date to which interest has been paid or duly provided for, as specified
below, to maturity or earlier redemption, payable semiannually on June 1 and December 1 of
each year until payment in full of such Principal Amount, beginning June 1, 2021, by check or
draft mailed to the Registered Owner hereof as shown on the Note registration books maintained
by the Registrar on the 15th day of the month preceding the month in which the applicable
interest payment date occurs, at such Owner’s address as it appears on such Note registration
books. The principal of this Note and the interest hereon are payable in any coin or currency
which on the respective dates of payment thereof is legal tender for the payment of debts due the
United States of America.
This Note is issued by the Authority under the authority of and in full compliance with the
Constitution and statutes of the State of Nebraska, including particularly Article VIII, Section 12 of
the Nebraska Constitution, Sections 18-2101 to 18-2153, inclusive, Reissue Revised Statutes of
Nebraska, as amended, and under and pursuant to Resolution No. ________ duly passed and
adopted by the Authority on __________2019, as from time to time amended and supplemented
(the “Resolution”).
THE PRINCIPAL AMOUNT OF THIS NOTE IS SET FORTH IN SCHEDULE 1
ATTACHED HERETO. THE MAXIMUM PRINCIPAL AMOUNT OF THIS NOTE IS
$199,000.
This Note is a special limited obligation of the Authority payable as to principal and
interest solely from and is secured solely by the Revenue (as defined in the Resolution) and certain
other money, funds and securities pledged under the Resolution, all on the terms and conditions set
forth in the Resolution. The Revenue represents that portion of ad valorem taxes levied by public
bodies of the State of Nebraska, including the City, on real property in the Project Area (as defined
in this Resolution) which is in excess of that portion of such ad valorem taxes produced by the levy
at the rate fixed each year by or for each such public body upon the valuation of the Project Area as
of a certain date and as has been certified by the County Assessor of Hall County, Nebraska to the
City in accordance with law.
Reference is hereby made to the Resolution for the provisions, among others, with respect
to the collection and disposition of certain tax and other revenues, the special funds charged with
and pledged to the payment of the principal of and interest on this Note, the nature and extent of
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the security thereby created, the terms and conditions under which this Note has been issued, the
rights and remedies of the Registered Owner of this Note, and the rights, duties, immunities and
obligations of the City and the Authority. By the acceptance of this Note, the Registered Owner
assents to all of the provisions of the Resolution.
The principal of and interest hereon shall not be payable from the general funds of the City
nor the Authority nor shall this Note constitute a legal or equitable pledge, charge, lien, security
interest or encumbrance upon any of the property or upon any of the income, receipts, or money
and securities of the City or the Authority or of any other party other than those specifically
pledged under the Resolution. This Note is not a debt of the City or the Authority within the
meaning of any constitutional, statutory or charter limitation upon the creation of general
obligation indebtedness of the City or the Authority, and does not impose any general liability
upon the City or the Authority and neither the City nor the Authority shall be liable for the
payment hereof out of any funds of the City or the Authority other than the Revenues and other
funds pledged under the Resolution, which Revenues and other funds have been and hereby are
pledged to the punctual payment of the principal of and interest on this Note in accordance with the
provisions of this Resolution.
The Registered Owner may from time to time enter the respective amounts advanced
pursuant to the terms of the Resolution under the column headed “Principal Amount Advanced” on
Schedule 1 hereto (the “Table”) and may enter the aggregate principal amount of this Note then
outstanding under the column headed “Cumulative Outstanding Principal Amount” on the Table.
On each date upon which a portion of the Cumulative Outstanding Principal Amount is paid to the
Registered Owner pursuant to the redemption provisions of the Resolution, the Registered Owner
may enter the principal amount paid on this Note under the column headed “Principal Amount
Redeemed” on the Table and may enter the then outstanding principal amount of this Note under
the column headed “Cumulative Outstanding Principal Amount” on the Table. Notwithstanding
the foregoing, the records maintained by the Trustee as to the principal amount issued and principal
amounts paid on this Note shall be the official records of the Cumulative Outstanding Principal
Amount of this Note for all purposes.
Reference is hereby made to the Resolution, a copy of which is on file in the office of the
City Clerk, and to all of the provisions of which each Owner of this Note by its acceptance hereof
hereby assents, for definitions of terms; the description of and the nature and extent of the security
for this Note; the Revenue and other money and securities pledged to the payment of the principal
of and interest on this Note; the nature and extent and manner of enforcement of the pledge; the
conditions upon which the Resolution may be amended or supplemented with or without the
consent of the Owner of this Note; the rights, duties and obligations of the Authority and the
Registrar thereunder; the terms and provisions upon which the liens, pledges, charges, trusts and
covenants made therein may be discharged at or prior to the maturity or redemption of this Note,
and this Note thereafter no longer be secured by the Resolution or be deemed to be outstanding
thereunder, if money or certain specified securities shall have been deposited with the Registrar
sufficient and held in trust solely for the payment hereof; and for the other terms and provisions
thereof.
This Note is subject to redemption prior to maturity, at the option of the Authority, in
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whole or in part at any time at a redemption price equal to 100% of the principal amount being
redeemed, plus accrued interest on such principal amount to the date fixed for redemption.
Reference is hereby made to the Resolution for a description of the redemption procedures and the
notice requirements pertaining thereto.
In the event this Note is called for prior redemption, notice of such redemption shall be
given by first-class mail to the Registered Owner hereof at its address as shown on the registration
books maintained by the Registrar not less than 10 days prior to the date fixed for redemption,
unless waived by the Registered Owner hereof. If this Note, or any portion thereof, shall have
been duly called for redemption and notice of such redemption duly given as provided, then upon
such redemption date the portion of this Note so redeemed shall become due and payable and if
money for the payment of the portion of the Note so redeemed and the accrued interest thereon to
the date fixed for redemption shall be held for the purpose of such payment by the Registrar,
interest shall cease to accrue and become payable hereon from and after the redemption date.
This Note is transferable by the Registered Owner hereof in person or by its attorney or
legal representative duly authorized in writing at the principal office of the Registrar, but only in
the manner, subject to the limitations and upon payment of the charges provided in the Resolution,
and upon surrender and cancellation of this Note. Upon such transfer, a new Note of the same
series and maturity and for the same principal amount will be issued to the transferee in exchange
therefor. The Authority and the Registrar may deem and treat the Registered Owner hereof as the
absolute owner hereof for the purpose of receiving payment of or on account of principal of and
interest due hereon and for all other purposes.
This Note is being issued as a registered Note without coupons. This Note is subject to
exchange as provided in the Resolution.
It is hereby certified, recited and declared that all acts, conditions and things required to
have happened, to exist and to have been performed precedent to and in the issuance of this Note
have happened, do exist and have been performed in regular and due time, form and manner; that
this Note does not exceed any constitutional, statutory or charter limitation on indebtedness; and
that provision has been made for the payment of the principal of and interest on this Note as
provided in this Resolution.
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Paramount Development II
(FORM OF ASSIGNMENT)
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
___________________________________________________________________________
Print or Type Name, Address and Social Security Number
or other Taxpayer Identification Number of Transferee
the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
_______________ agent to transfer the within Note on the Note register kept by the Registrar for
the registration thereof, with full power of substitution in the premises.
Dated: _______________ ____________________________________
NOTICE: The signature to this Assignment
must correspond with the name of the
Registered Owner as it appears upon the
face of the within Note in every particular.
Signature Guaranteed By:
____________________________________
Name of Eligible Guarantor Institution as
defined by SEC Rule 17 Ad-15 (17 CFR
240.17 Ad-15)
By:________________________________
Title:_______________________________
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SCHEDULE 1
TABLE OF CUMULATIVE OUTSTANDING PRINCIPAL AMOUNT
COMMUNITY REDEVELOPMENT AUTHORITY OF
THE CITY OF GRAND ISLAND, NEBRASKA
PARAMOUNT DEVELOPMENT REDEVELOPMENT PROJECT II
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2019
Date
Principal
Amount
Advanced
Principal
Amount
Redeemed
Cumulative
Outstanding
Principal
Amount
Notation
Made
By
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Exhibit D
Project Costs
Redevelopment Project Costs
1. Renovation expenditures & contingency $534,000
2. Site acquisition $ 52,000
3. Legal and plan $ 9,600
4. Engineering and architecture $ 8,000
Total $603,600
Total costs subject to grant not to exceed $199,000
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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 2019-04 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. 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
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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
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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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Wing Properties
COMMUNITY REDEVELOPMENT AUTHORITY OF
THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 299
A RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF A
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA, TAX INCREMENT DEVELOPMENT REVENUE NOTE
OR OTHER OBLIGATION, IN A PRINCIPAL AMOUNT NOT TO EXCEED
$199,000 FOR THE PURPOSE OF (1) PAYING THE COSTS OF ACQUIRING,
DEMOLISHING, CONSTRUCTING, RECONSTRUCTING, IMPROVING,
EXTENDING, REHABILITATING, INSTALLING, EQUIPPING, FURNISHING
AND COMPLETING CERTAIN IMPROVEMENTS WITHIN THE
AUTHORITY’S PARAMOUNT DEVELOPMENT, LLC, REDEVELOPMENT
PROJECT AREA, SPECIFICALLY INCLUDING SITE PURCHASE,
PREPARATION, DEMOLITION, REHABILITATION, UTILITY EXTENSION
AND (2) PAYING THE COSTS OF ISSUANCE THEREOF; PRESCRIBING THE
FORM AND CERTAIN DETAILS OF THE NOTE OR OTHER OBLIGATION;
PLEDGING CERTAIN TAX REVENUE AND OTHER REVENUE TO THE
PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE NOTE OR
OTHER OBLIGATION AS THE SAME BECOME DUE; LIMITING PAYMENT
OF THE NOTE OR OTHER OBLIGATION TO SUCH TAX REVENUES;
CREATING AND ESTABLISHING FUNDS AND ACCOUNTS; DELEGATING,
AUTHORIZING AND DIRECTING THE FINANCE DIRECTOR TO EXERCISE
HIS OR HER INDEPENDENT DISCRETION AND JUDGMENT IN
DETERMINING AND FINALIZING CERTAIN TERMS AND PROVISIONS OF
THE NOTE OR OTHER OBLIGATION NOT SPECIFIED HEREIN; APPROVING
A REDEVELOPMENT CONTRACT AND REDEVELOPMENT PLAN; TAKING
OTHER ACTIONS AND MAKING OTHER COVENANTS AND AGREEMENTS
IN CONNECTION WITH THE FOREGOING; AND RELATED MATTERS.
BE IT RESOLVED BY THE MEMBERS OF THE COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA:
ARTICLE I
FINDINGS AND DETERMINATIONS
Section 1.1. Findings and Determinations. The Members of the Community Redevelopment
Authority of the City of Grand Island, Nebraska (the “Authority”) hereby find and determine as follows:
(a) The City of Grand Island, Nebraska (the “City”), pursuant to the Plan Resolution
(hereinafter defined), approved the City of Grand Island Redevelopment Area #1 Plan Amendment
December 2018 (the “Redevelopment Plan”) under and pursuant to which the Authority shall undertake
from time to time to redevelop and rehabilitate the Redevelopment Area (hereinafter defined).
(b) Pursuant to the Redevelopment Plan, the Authority has previously obligated itself and/or
will hereafter obligate itself to provide a portion of the financing to acquire, construct, reconstruct, improve,
extend, rehabilitate, install, equip, furnish and complete, at the cost and expense of the Redeveloper, a
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portion of the improvements (as defined in the Redevelopment Contract hereinafter identified) in the
Redevelopment Area (the “Project Costs”), including, without limitation) the cost of acquiring,
constructing, reconstructing, improving, extending, rehabilitating, installing, and completing the acquisition
of the Project Site (as defined in the Redevelopment Contract), (collectively, the “Project”), as more fully
described in the Redevelopment Contract (hereinafter defined).
(c) The Authority is authorized by the Redevelopment Law (hereinafter defined) to issue tax
allocation notes for the purpose of paying the costs and expenses of the Project, the principal of which is
payable from certain tax revenues as set forth in the Redevelopment Law.
(d) In order to provide funds to pay a portion of the costs of the Project, it is necessary,
desirable, advisable, and in the best interest of the Authority for the Authority to issue a Tax Increment
Development Revenue Note or other obligation in a principal amount not to exceed $199,000 (the “Note”).
(e) All conditions, acts and things required to exist or to be done precedent to the issuance of
the Note do exist and have been done as required by law.
ARTICLE II
CERTAIN DEFINITIONS; COMPUTATIONS;
CERTIFICATES AND OPINIONS; ORDERS AND DIRECTIONS
Section 2.1. Definitions of Special Terms. Unless the context clearly indicates some other
meaning or may otherwise require, and in addition to those terms defined elsewhere herein, the terms
defined in this Section 2.1 shall, for all purposes of this Resolution, any Resolution or other instrument
amendatory hereof or supplemental hereto, instrument or document herein or therein mentioned, have the
meanings specified herein, with the following definitions to be equally applicable to both the singular and
plural forms of any terms defined herein:
“Authority” means the Community Redevelopment Authority of the City of Grand Island,
Nebraska.
City” means the City of Grand Island, Nebraska.
“Project Costs” means the redevelopment project costs (as defined in the Redevelopment
Contract) in the Redevelopment Area, the costs of which are eligible to be paid from the proceeds of the
Note.
“Assessor” means the Assessor of Hall County, Nebraska.
“Note” means the Paramount Development, LLC, Redevelopment Project II Tax Increment
Development Revenue Note of the Authority, in a principal amount not to exceed $199,000, issued
pursuant to this Resolution, and shall include any note, including refunding note, interim certificate,
debenture, or other obligation issued pursuant to the Redevelopment Law. At the option of the Owner of
the Note, the titular designation of such Note may be revised to state note, interim certificate, debenture,
obligation, or such other designation as is appropriate.
“Secretary” means the Secretary of the Authority.
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“Cumulative Outstanding Principal Amount” means the aggregate principal amount of the Note
issued and Outstanding from time to time in accordance with the provisions of this Resolution, as reflected
in the records maintained by the Registrar as provided in this Resolution.
“Date of Original Issue” means the date the Note is initially issued, which shall be the date of the
first allocation of principal on the Note as further described in Section 3.2.
“Debt Service” means, as of any particular date of computation, and with respect to any period, the
amount to be paid or set aside as of such date or such period for the payment of the principal on the Note.
“Escrow Obligations” means (a) Government Obligations, (b) certificates of deposit issued by a
bank or trust company which are (1) fully insured by the Federal Deposit Insurance Corporation or similar
corporation chartered by the United States or (2) secured by a pledge of any Government Obligations having
an aggregate market value, exclusive of accrued interest, equal at least to the principal amount of the
certificates so secured, which security is held in a custody account by a custodian satisfactory to the
Registrar, or (c) (1) evidences of a direct ownership in future interest or principal on Government
Obligations, which Government Obligations are held in a custody account by a custodian satisfactory to the
Registrar pursuant to the terms of a custody agreement in form and substance acceptable to the Registrar and
(2) obligations issued by any state of the United States or any political subdivision, public instrumentality or
public authority of any state, which obligations are fully secured by and payable solely from Government
Obligations, which Government Obligations are held pursuant to an agreement in form and substance
acceptable to the Registrar and, in any such case, maturing as to principal and interest in such amounts and
at such times as will insure the availability of sufficient money to make the payment secured thereby.
“Finance Director” means the Treasurer/Finance Director or Acting Treasurer/Finance Director, as
the case may be, of the City.
“Fiscal Year” means the twelve-month period established by the City or provided by law from
time to time as its fiscal year.
“Government Obligations” means direct obligations of, or obligations the principal of and interest
on which are unconditionally guaranteed by, the United States of America.
“Improvements” means the improvements to be constructed, reconstructed, acquired, improved,
extended, rehabilitated, installed, equipped, furnished and completed in the Project Area in accordance with
the Redevelopment Plan, including, but not limited to, the improvements constituting the Project (as defined
in the Redevelopment Contract).
“Payment Date” means June 30 and December 31 of each year any Note is outstanding,
commencing on the first Payment Date following the Date of Original Issue.
“Chairman” means the Chairman of the Authority.
“Outstanding” means when used with reference to any Note, as of a particular date, all Notes
theretofore authenticated and delivered under this Resolution except:
(a) Notes theretofore canceled by the Registrar or delivered to the Registrar for
cancellation;
(b) Notes which are deemed to have been paid in accordance with Section 10.1
hereof;
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(c) Notes alleged to have been mutilated, destroyed, lost or stolen which have been
paid as provided in Section 3.9 hereof; and
(d) Notes in exchange for or in lieu of which other Notes have been authenticated
and delivered pursuant to this Resolution.
“Owner” means the person(s) identified as the owner(s) of the Note from time to time, as indicated
on the books of registry maintained by the Registrar.
“Plan Resolution” means, Resolution No. ___________ of the City, together with any other
resolution providing for an amendment to the Redevelopment Plan.
“Project Area” means the area identified and referred to as the Project Site in the Redevelopment
Contract.
“Record Date” means, for each Payment Date, the 15th day immediately preceding such Payment
Date.
“Redeveloper” means the Redeveloper as defined in the Redevelopment Contract responsible for
constructing, reconstructing, acquiring, improving, extending, rehabilitating, installing, equipping,
furnishing and completing the Project.
“Redeveloper Note” means any Note that is owned by the Redeveloper according to the records of
the Registrar.
“Redevelopment Contract” means the City of Grand Island Redevelopment Contract Paramount
Development, LLC, Redevelopment Project II, dated the date of its execution, between the Authority, and
Paramount Development, LLC, a Nebraska limited liability company, relating to the Project.
“Redevelopment Area” means the community redevelopment area described, defined or otherwise
identified or referred to in the Redevelopment Plan.
“Redevelopment Law” means Article VIII, Section 12 of the Constitution of the State and Chapter
18, Article 21, Reissue Revised Statutes of Nebraska, as amended.
“Redevelopment Plan” means the “City of Grand Island Redevelopment Plan Amendment for
Redevelopment Area #1 December 2018” passed, adopted and approved by the City pursuant to the Plan
Resolution, and shall include any amendment of such Redevelopment Plan heretofore or hereafter made
by the City pursuant to law.
“Refunding Notes” means the notes authorized to be issued pursuant to Article V.
“Registrar” means the Treasurer of the City of Grand Island, Nebraska, in its capacity as registrar
and paying agent for the Note.
“Resolution” means this Resolution as from time to time amended or supplemented.
“Revenue” means the Tax Revenue.
“Special Fund” means the fund by that name created in Section 7.1.
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“State” means the State of Nebraska.
“Tax Revenue” means, with respect to the Project Area, (a) those tax revenues referred to (1) in the
last sentence of the first paragraph of Article VIII, Section 12 of the Constitution of the State and (2) in
Section 18-2147, Reissue Revised Statutes of Nebraska, as amended, and (b) all payments made in lieu
thereof.
“Treasurer” means the Treasurer of Hall County, Nebraska.
Section 2.2. Definitions of General Terms. Unless the context clearly indicates otherwise or may
otherwise require, in this Resolution words importing persons include firms, partnerships, associations,
limited liability companies (public and private), public bodies and natural persons, and also include
executors, administrators, trustees, receivers or other representatives.
Unless the context clearly indicates otherwise or may otherwise require, in this Resolution the terms
“herein,” “hereunder,” “hereby,” “hereto,” “hereof” and any similar terms refer to this Resolution as a whole
and not to any particular section or subdivision thereof.
Unless the context clearly indicates otherwise or may otherwise require, in this Resolution: (a)
references to Articles, Sections and other subdivisions, whether by number or letter or otherwise, are to the
respective or corresponding Articles, Sections or subdivisions of this Resolution as such Articles, Sections,
or subdivisions may be amended or supplemented from time to time; and (b) the word “heretofore” means
before the time of passage of this Resolution, and the word “hereafter” means after the time of passage of
this Resolution.
Section 2.3. Computations. Unless the facts shall then be otherwise, all computations required for
the purposes of this Resolution shall be made on the assumption that the principal on the Note shall be paid
as and when the same become due.
Section 2.4. Certificates, Opinions and Reports. Except as otherwise specifically provided in
this Resolution, each certificate, opinion or report with respect to compliance with a condition or covenant
provided for in this Resolution shall include: (a) a statement that the person making such certificate, opinion
or report has read the pertinent provisions of this Resolution to which such covenant or condition relates; (b)
a brief statement as to the nature and scope of the examination or investigation upon which the statements or
opinions contained in such certificate, opinion or report are based; (c) a statement that, in the opinion of
such person, he has made such examination and investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been complied with; (d) a statement as
to whether or not, in the opinion of such person, such condition or covenant has been complied with; and (e)
an identification of any certificates, opinions or reports or other sources or assumptions relied on in such
certificate, opinion or report.
Section 2.5. Evidence of Action by the Authority. Except as otherwise specifically provided in
this Resolution, any request, direction, command, order, notice, certificate or other instrument of, by or from
the City or the Authority shall be effective and binding upon the Authority, respectively, for the purposes of
this Resolution if signed by the Chairman, the Vice Chairman, the Secretary, the Treasurer, the Finance
Director, the Planning Director or by any other person or persons authorized to execute the same by statute,
or by a resolution of the City or the Authority, respectively.
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ARTICLE III
AUTHORIZATION AND ISSUANCE OF THE NOTE;
GENERAL TERMS AND PROVISIONS
Section 3.1. Authorization of Note. Pursuant to and in full compliance with the Redevelopment
Law and this Resolution, and for the purpose of providing funds to pay (a) the cost of acquiring,
constructing, reconstructing, improving, extending, rehabilitating, installing, equipping, furnishing, and
completing the Project, and (b) the costs of issuing the Note, the Authority shall issue the Note in a principal
amount not to exceed $199,000. The Note shall be designated as “Community Redevelopment Authority of
the City of Grand Island, Nebraska, Paramount Development, LLC, Redevelopment Project II Tax
Increment Development Revenue Note,” shall have an appropriate series designation as determined by the
Finance Director, shall be dated the Date of Original Issue, shall mature, subject to right of prior
redemption, not later than the December 31, 2035, and shall bear interest at an annual rate of 0.00%. The
Note shall be issued as a single Note as further described in Section 3.2.
The Note is a special, limited obligation of the Authority payable solely from the Revenue and the
amounts on deposit in the funds and accounts established by this Resolution. The Note shall not in any
event be a debt of the Authority (except to the extent of the Revenue and other money pledged under this
Resolution), the State, nor any of its political subdivisions, and neither the Authority (except to the extent of
the Revenue and other money pledged under this Resolution), the City, the State nor any of its political
subdivisions is liable in respect thereof, nor in any event shall the principal of or interest on the Note be
payable from any source other than the Revenue and other money pledged under this Resolution. The Note
does not constitute a debt within the meaning of any constitutional, statutory, or charter limitation upon the
creation of general obligation indebtedness of the Authority and does not impose any general liability upon
the Authority. Neither any official of the Authority nor any person executing the Note shall be liable
personally on the Note by reason of its issuance. The validity of the Note is not and shall not be dependent
upon the completion of the Project or upon the performance of any obligation relative to the Project.
The Revenue and the amounts on deposit in the funds and accounts established by this Resolution
are hereby pledged and assigned for the payment of the Note, and shall be used for no other purpose than to
pay the principal of or interest on the Note, except as may be otherwise expressly authorized in this
Resolution. The Note shall not constitute a debt of the Authority or the City within the meaning of any
constitutional, statutory, or charter limitation upon the creation of general obligation indebtedness of the
Authority, and neither the Authority nor the City shall not be liable for the payment thereof out of any
money of the Authority or the City other than the Tax Revenue and the other funds referred to herein.
Nothing in this Resolution shall preclude the payment of the Note from (a) the proceeds of future
notes issued pursuant to law or (b) any other legally available funds. Nothing in this Resolution shall
prevent the City or the Authority from making advances of its own funds howsoever derived to any of the
uses and purposes mentioned in this Resolution.
Section 3.2. Details of Note; Authority of Finance Director.
(a) The Note shall be dated the Date of Original Issue and shall be issued to the purchaser
thereof, as the Owner, in installments. The Note shall be delivered on the earlier of allocation of the
maximum principal amount of the Note or upon the issuance of a certificate of occupancy of the building
constituting the Project. The Note shall be issued as a single Note.
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(b) Proceeds of the Note may be advanced and disbursed in the manner set forth below:
(1) There shall be submitted to the Finance Director a disbursement request in a form
acceptable to the Finance Director (the “Disbursement Request”), executed by the City’s
Planning Director and an authorized representative of the Redeveloper, (A) certifying that a
portion of the Project has been substantially completed and (B) certifying the actual costs
incurred by the Redeveloper in the completion of such portion of the Project.
(2) The Finance Director shall evidence such allocation in writing and inform the
Owner of the Note of any amounts allocated to the Note.
(3) Such amounts shall be deemed proceeds of the Note and the Finance Director
shall inform the Registrar in writing of the date and amount of such allocation. The Registrar
shall keep and maintain a record of the amounts allocated to the note pursuant to the terms of this
Resolution as “Principal Amount Advanced” and shall enter the aggregate principal amount then
Outstanding as the “Cumulative Outstanding Principal Amount” on the Note and its records
maintained for the Note. The aggregate amount endorsed as the Principal amount Advanced on the
Note shall not exceed $199,000.
The Authority shall have no obligation to pay any Disbursement Request unless such request has
been properly approved as described above, and proceeds of the Note have been deposited by the Owner of
the Note (if other than the Redeveloper) into the Project Fund.
The records maintained by the Registrar as to principal amount advanced and principal amounts
paid on the Note shall be the official records of the Cumulative Outstanding Principal Amount for all
purposes.
(c) The Note shall be dated the Date of Original Issue, which shall be the initial date of a
allocation of the Note.
(d) As of the Date of Original Issue of the Note, there shall be delivered to the Registrar the
following:
(1) A signed investor’s letter in a form acceptable to the Finance Director and Note
Counsel; and
(2) Such additional certificates and other documents as the special counsel for the
Authority may require.
(e) The note shall bear zero percent interest on the Cumulative Outstanding Principal Amount
of the Note from the Date of Original Issue.
(f) The principal of the Note shall be payable in any coin or currency of the United States of
America from all funds held by the which on the respective dates of payment thereof is legal tender for the
payment of public and private debts. Payments on the Note due prior to maturity or earlier redemption and
payment of any principal upon redemption price to maturity shall be made by check mailed by the Registrar
on each Interest Payment Date to the Owners, at the Owners’ address as it appears on the books of registry
maintained by the Registrar on the Record Date. The principal of the Note due at maturity or upon earlier
redemption shall be payable upon presentation and surrender of the Note to the Registrar. When any portion
of the Note shall have been duly called for redemption and payment thereof duly made or provided for,
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interest thereon shall cease on the principal amount of such Note so redeemed from and after the date of
redemption thereof.
(g) The Note shall be executed by the manual signatures of the Chairman and Secretary of
the Authority. In case any officer whose signature shall appear on any Note shall cease to be such officer
before the delivery of such Note, such signature shall nevertheless be valid and sufficient for all purposes,
the same as if s/he had remained in office until such delivery, and the Note may be signed by such
persons as at the actual time of the execution of such Note shall be the proper officers to sign such Note
although at the date of such Note such persons may not have been such officers.
(i) The Finance Director is hereby authorized to hereafter, from time to time, specify, set,
designate, determine, establish and appoint, as the case may be, and in each case in accordance with and
subject to the provisions of this Resolution, (1) the Date of Original Issue, the principal amount of the Note
in accordance with Section 3.2(a), (2) the maturity date of the Note, which shall be not later than December
31, 2035, (3) the initial Payment Date and (4) any other term of the Note not otherwise specifically fixed by
the provisions of this Resolution.
(j) Any Note issued upon transfer or exchange of any other Note shall be dated as of the Date
of Original Issue.
(k) The Note shall be issued to such Owner as shall be mutually agreed between the
Redeveloper and the Finance Director for a price equal to 100% of the principal amount thereof. No Note
shall be delivered to any Owner unless the Authority shall have received from the Owner thereof such
documents as may be required by the Finance Director to demonstrate compliance with all applicable laws,
including without limitation compliance with Section 3.6 hereof. The Authority may impose such
restrictions on the transfer of any Note as may be required to ensure compliance with all requirements
relating to any such transfer.
Section 3.3. Form of Note Generally. The Note shall be issued in registered form. The Note
shall be in substantially the form set forth in Article IX, with such appropriate variations, omissions and
insertions as are permitted or required by this Resolution and with such additional changes as the Finance
Director may deem necessary or appropriate. The Note may have endorsed thereon such legends or text
as may be necessary or appropriate to conform to any applicable rules and regulations of any
governmental authority or any usage or requirement of law with respect thereto.
Section 3.4. Appointment of Registrar. The Finance Director is hereby appointed the registrar
and paying agent for the Note. The Registrar shall specify its acceptance of the duties, obligations and
trusts imposed upon it by the provisions of this Resolution by a written instrument deposited with the
Authority prior to the Date of Original Issue of the initial Note. The Authority reserves the right to
remove the Registrar upon 30 days’ notice and upon the appointment of a successor Registrar, in which
event the predecessor Registrar shall deliver all cash and the Note in its possession to the successor
Registrar and shall deliver the note register to the successor Registrar. The Registrar shall have only such
duties and obligations as are expressly stated in this Resolution and no other duties or obligations shall be
required of the Registrar.
Section 3.5. Exchange of Note. Any Note, upon surrender thereof at the principal office of the
Registrar, together with an assignment duly executed by the Owner or its attorney or legal representative in
such form as shall be satisfactory to the Registrar, may, at the option of the Owner thereof, be exchanged for
another Note in a principal amount equal to the principal amount of the Note surrendered or exchanged, of
the same series and maturity and bearing interest at the same rate. The Authority shall make provision for
the exchange of the Note at the principal office of the Registrar.
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Section 3.6. Negotiability, Registration and Transfer of Note. The Registrar shall keep books
for the registration and registration of transfer of the Note as provided in this Resolution. The transfer of the
Note may be registered only upon the books kept for the registration and registration of transfer of the Note
upon (a) surrender thereof to the Registrar, together with an assignment duly executed by the Owner or its
attorney or legal representative in such form as shall be satisfactory to the Registrar and (b) evidence
acceptable to the Authority that the assignee is a bank or a qualified institutional buyer as defined in Rule
144A promulgated by the Securities and Exchange Commission. Prior to any transfer and assignment,
the Owner will obtain and provide to the Authority, an investor’s letter in form and substance satisfactory
to the Authority evidencing compliance with the provisions of all federal and state securities laws, and
will deposit with the Authority an amount to cover all reasonable costs incurred by the Authority,
including legal fees, of accomplishing such transfer. A transfer of any Note may be prohibited by the
Authority if (1) a default then exists under the Redevelopment Contract, (2) the assessed valuation of the
Redeveloper Property (as defined in the Redevelopment Contract) is less than $600,000, or (3) a protest of
the valuation of the Redeveloper Property is ongoing. Upon any such registration of transfer the Authority
shall execute and deliver in exchange for such Note a new Note, registered in the name of the transferee, in a
principal amount equal to the principal amount of the Note surrendered or exchanged, of the same series and
maturity and bearing interest at the same rate.
In all cases in which any Note shall be exchanged or a transfer of a Note shall be registered
hereunder, the Authority shall execute at the earliest practicable time execute and deliver a Note in
accordance with the provisions of this Resolution. The Note surrendered in any such exchange or
registration of transfer shall forthwith be canceled by the Registrar. Neither the Authority nor the Registrar
shall make a charge for the first such exchange or registration of transfer of any Note by any Owner. The
Authority or the Registrar, or both, may make a charge for shipping, printing and out-of-pocket costs for
every subsequent exchange or registration of transfer of such Note sufficient to reimburse it or them for any
and all costs required to be paid with respect to such exchange or registration of transfer. Neither the
Authority nor the Registrar shall be required to make any such exchange or registration of transfer of any
Note during the period between a Record Date and the corresponding Interest Payment Date.
Section 3.7. Ownership of Note. As to any Note, the person in whose name the same shall be
registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or
on account of the principal of or interest on such Note shall be made only to or upon the order of the Owner
thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge
the liability upon such Note, including the interest thereon, to the extent of the sum or sums so paid.
Section 3.8. Disposition and Destruction of Note. The Note, upon surrender to the Registrar for
final payment, whether at maturity or upon earlier redemption, shall be canceled upon such payment by the
Registrar and, upon written request of the Finance Director, be destroyed.
Section 3.9. Mutilated, Lost, Stolen or Destroyed Note. If any Note becomes mutilated or is
lost, stolen or destroyed, the Authority shall execute and deliver a new Note of like date and tenor as the
Note mutilated, lost, stolen or destroyed; provided that, in the case of any mutilated Note, such mutilated
Note shall first be surrendered to the Authority. In the case of any lost, stolen or destroyed Note, there
first shall be furnished to the Authority evidence of such loss, theft or destruction satisfactory to the
Authority, together with indemnity to the Authority satisfactory to the Authority. If any such Note has
matured, is about to mature or has been called for redemption, instead of delivering a substitute Note, the
Authority may pay the same without surrender thereof. Upon the issuance of any substitute Note, the
Authority may require the payment of an amount by the Owner sufficient to reimburse the Authority for
any tax or other governmental charge that may be imposed in relation thereto and any other reasonable
fees and expenses incurred in connection therewith.
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Section 3.10. Non-presentment of Note. If any Note is not presented for payment when the
principal thereof becomes due and payable as therein and herein provided, whether at the stated maturity
thereof or call for optional or mandatory redemption or otherwise, if funds sufficient to pay such Note
have been made available to the Registrar all liability of the Authority to the Owner thereof for the
payment of such Note shall forthwith cease, determine and be completely discharged, and thereupon it
shall be the duty of the Registrar to hold such funds, without liability for interest thereon, for the benefit
of the Owner of such Note, who shall thereafter be restricted exclusively to such funds for any claim of
whatever nature on their part under this Resolution or on, or with respect to, said Note. If any Note is not
presented for payment within five years following the date when such Note becomes due, the Registrar
shall repay to the Authority the funds theretofore held by it for payment of such Note, and such Note
shall, subject to the defense of any applicable statute of limitation, thereafter be an unsecured obligation
of the Authority, and the Registered Owner thereof shall be entitled to look only to the Authority for
payment, and then only to the extent of the amount so repaid to it by the Registrar, and the Authority shall
not be liable for any interest thereon and shall not be regarded as a trustee of such money.
ARTICLE IV
REDEMPTION OF NOTE
Section 4.1. Redemption of Note. The Note is subject to redemption at the option of the
Authority prior to the maturity thereof at any time as a whole or in part from time to time in such
principal amount as the Authority shall determine, at a redemption price equal to 100% of the principal
amount then being redeemed plus accrued interest thereon to the date fixed for redemption.
Section 4.2. Redemption Procedures. The Finance Director is hereby authorized, without further
action of the Council, to call all or any portion of the principal of the Note for payment and redemption prior
to maturity on such date as the Finance Director shall determine, and shall deposit sufficient funds in the
Debt Service Account from the Surplus Account to pay the principal being redeemed plus the accrued
interest thereon to the date fixed for redemption. The Finance Director may effect partial redemptions of
any Note without notice to the Owner and without presentation and surrender of such Note, but total
redemption of any Note may only be effected with notice to the Owner and upon presentation and surrender
of such Note to the Registrar. Notice of a total redemption of any Note shall be sent by the Registrar by
first-class mail not less than five days prior to the date fixed for redemption to the Owner’s address
appearing on the books of registry maintained by the Registrar and indicate (a) the title and designation of
the Note, (b) the redemption date, and (c) a recitation that the entire principal balance of such Note plus all
accrued interest thereon is being called for redemption on the applicable redemption date.
Section 4.3. Determination of Outstanding Principal Amount of Note. Notwithstanding the
amount indicated on the face of any Note, the principal amount of such Note actually Outstanding from time
to time shall be determined and maintained by the Registrar. The Registrar shall make a notation in the
books of registry maintained for each Note indicating the original principal advance of such Note as
determined in accordance with Section 3.2 and make such additional notations as are required to reflect any
additional principal advances or redemptions of such Note from time to time, including on the Table of
Cumulative Outstanding Principal Amount attached to each Note if it is presented to the Registrar for that
purpose. Any Owner may examine the books of registry maintained by the Registrar upon request, and the
Registrar shall grant such request as soon as reasonably practicable. Any failure of the Registrar to record a
principal advance or a redemption on the Table of Cumulative Outstanding Principal Amount shall not
affect the Cumulative Outstanding Principal Amount shown on the records of the Registrar.
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ARTICLE V
REFUNDING NOTES
Section 5.1. Refunding Notes. Refunding Notes may be issued at any time at the direction of the
Finance Director for the purpose of refunding (including by purchase) any Note or any portion thereof,
including amounts to pay principal to the date of maturity or redemption (or purchase) and the expenses of
issuing the Refunding Notes and of effecting such refunding; provided that the Debt Service on all notes to
be outstanding after the issuance of the Refunding Notes shall not be greater in any Fiscal Year than would
have been the Debt Service in such Fiscal Year were such refunding not to occur.
ARTICLE VI
EFFECTIVE DATE OF PROJECT;
PLEDGE OF REVENUE
Section 6.1. Effective Date of Project. For purposes of Section 18-2147, Reissue Revised
Statutes of Nebraska, as amended, the effective date of the Project shall be determined as set forth in the
Redevelopment Contract. The Planning Director is hereby directed to notify the Assessor of the effective
date of the Project on the form prescribed by the Property Tax Administrator.
Section 6.2. Collection of Revenue; Pledge of Revenue. As provided for in the Redevelopment
Plan, and pursuant to the provisions of the Redevelopment Law, for the period contemplated thereby, the
Tax Revenue collected in the Project Area shall be allocated to and, when collected, paid into the Special
Fund under the terms of this Resolution to pay the principal on the Note. When the Note has been paid in
accordance with this Resolution, the Redevelopment Plan and the Redevelopment Contract, the Tax
Revenue shall be applied as provided for in the Redevelopment Law.
The Revenue is hereby allocated and pledged in its entirety to the payment of the principal on the
Note and to the payment of the Project Costs (including the Project), until the principal on the Note has been
paid (or until money for that purpose has been irrevocably set aside), and the Revenue shall be applied
solely to the payment of the principal on the Note. Such allocation and pledge is and shall be for the sole
and exclusive benefit of the Owner and shall be irrevocable.
Section 6.3. Potential Insufficiency of Revenue. Neither the Authority nor the City makes any
representations, covenants, or warranties to the Owner that the Revenue will be sufficient to pay the
principal of or interest on the Note. Payment of the principal of and interest on the Note is limited solely
and exclusively to the Revenue pledged under the terms of this Resolution, and is not payable from any
other source whatsoever.
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ARTICLE VII
CREATION OF FUNDS AND ACCOUNTS;
PAYMENTS THEREFROM
Section 7.1. Creation of Funds and Account. There is hereby created and established by the
Authority the following funds and accounts which funds shall be held by the Finance Director of the City
separate and apart from all other funds and moneys of the Authority and the City under her control
a special trust fund called the “Paramount Development, LLC, Redevelopment Project II Tax Increment
Special Fund” (the “Special Fund”).
So long as the Note remains unpaid, the money in the foregoing fund and accounts shall be used for
no purpose other than those required or permitted by this Resolution, any Resolution supplemental to or
amendatory of this Resolution and the Redevelopment Law.
Section 7.2. Special Fund. All of the Revenue shall be deposited into the Special Fund. The
Revenue accumulated in the Special Fund shall be used and applied on the Business Day prior to each
Payment Date (a) to make any payments to the Authority as may be required under the Redevelopment
Contract and (b) to pay principal on the Note to the extent of any money then remaining the Special Fund on
such Payment Date. Money in the Special Fund shall be used solely for the purposes described in this
Section 7.2. All Revenues received through and including December 31, 2035 shall be used solely for the
payments required by this Section 7.2.
ARTICLE VIII
COVENANTS OF THE AUTHORITY
So long as the Note is outstanding and unpaid, the Authority will (through its proper officers, agents
or employees) faithfully perform and abide by all of the covenants, undertakings and provisions contained in
this Resolution or in the Note, including the following covenants and agreements for the benefit of the
Owner which are necessary, convenient and desirable to secure the Note and will tend to make them more
marketable; provided, however, that such covenants do not require either the City or the Authority to expend
any money other than the Revenue nor violate the provisions of State law with respect to tax revenue
allocation.
Section 8.1. No Priority. The Authority covenants and agrees that it will not issue any obligations
the principal of or interest on which is payable from the Revenue which have, or purport to have, any lien
upon the Revenue prior or superior to or in parity with the lien of the Note; provided, however, that nothing
in this Resolution shall prevent the Authority from issuing and selling notes or other obligations which have,
or purport to have, any lien upon the Revenue which is junior to the Note and the Debt Service thereon, or
from issuing and selling notes or other obligations which are payable in whole or in part from sources other
than the Revenue.
Section 8.2. To Pay Principal of the Note. The Authority will duly and punctually pay or cause
to be paid solely from the Revenue the principal of the Note on the dates and at the places and in the manner
provided in the Note according to the true intent and meaning thereof and hereof, and will faithfully do and
perform and fully observe and keep any and all covenants, undertakings, stipulations and provisions
contained in the Note and in this Resolution.
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Section 8.4. Books of Account; Financial Statements. The Authority covenants and agrees that
it will at all times keep, or cause to be kept, proper and current books of account (separate from all other
records and accounts) in which complete and accurate entries shall be made of all transactions relating to the
Project, the Revenue and other funds relating to the Project.
Section 8.5. Eminent Domain Proceeds. The Authority covenants and agrees that should all or
any part of the Project be taken by eminent domain or other proceedings authorized by law for any public or
other use under which the property will be exempt from ad valorem taxation, the net proceeds realized by
the Authority therefrom shall constitute Project Revenue and shall be deposited into the Special Fund and
used for the purposes and in the manner described in Section 7.2.
Section 8.6. Protection of Security. The Authority is duly authorized under all applicable laws to
create and issue the Note and to adopt this Resolution and to pledge the Revenue in the manner and to the
extent provided in this Resolution. The Revenue so pledged is and will be free and clear of any pledge, lien,
charge, security interest or encumbrance thereon or with respect thereto prior to, or of equal rank with, the
pledge created by this Resolution, except as otherwise expressly provided herein, and all corporate action on
the part of the Authority to that end has been duly and validly taken. The Note is and will be a valid
obligation of the Authority in accordance with its terms and the terms of this Resolution. The Authority
shall at all times, to the extent permitted by law, defend, preserve and protect the pledge of and security
interest granted with respect to the Revenue pledged under this Resolution and all the rights of the Owner
under this Resolution against all claims and demands of all persons whomsoever.
ARTICLE IX
FORM OF NOTE
Section 9.1. Form of Note. The Note shall be in substantially the following form:
(FORM OF NOTE)
THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS, AND THIS NOTE MAY NOT BE
TRANSFERRED UNLESS THE PROPOSED ASSIGNEE IS A BANK OR A QUALIFIED
INSTITUTIONAL BUYER AS DEFINED IN RULE 144A PROMULGATED BY THE
SECURITIES AND EXCHANGE COMMISSION AND THE OWNER HAS OBTAINED AND
PROVIDED TO THE AUTHORITY, PRIOR TO SUCH TRANSFER AND ASSIGNMENT, AN
INVESTOR’S LETTER IN FORM AND SUBSTANCE SATISFACTORY TO THE AUTHORITY
EVIDENCING THE COMPLIANCE WITH THE PROVISIONS OF ALL FEDERAL AND STATE
SECURITIES LAWS AND CONTAINING SUCH OTHER REPRESENTATIONS AS THE
AUTHORITY MAY REQUIRE.
THIS NOTE MAY BE TRANSFERRED ONLY IN THE MANNER AND ON THE TERMS AND
CONDITIONS AND SUBJECT TO THE RESTRICTIONS STATED IN SECTION 3.6 OF
RESOLUTION NO. ____________ OF THE COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA.
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UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF HALL
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
PARAMOUNT DEVELOPMENT, LLC, REDEVELOPMENT PROJECT II
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2019
No. R-1 Up to $199,000
(subject to reduction as described herein)
Date of Date of Rate of
Original Issue Maturity Interest
December 31, 2035 0.00%
REGISTERED OWNER: Paramount Development, LLC
PRINCIPAL AMOUNT: SEE SCHEDULE 1 ATTACHED HERETO
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THE NOTE
SET FORTH ON THE FOLLOWING PAGES, WHICH FURTHER PROVISIONS SHALL FOR
ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE.
IN WITNESS WHEREOF, THE COMMUNITY REDEVELOPMENT AUTHORITY OF
THE CITY OF GRAND ISLAND, NEBRASKA has caused this Note to be signed by the manual
signature of the Chairman of the Authority, countersigned by the manual signature of the Secretary of the
Authority.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA
[S E A L]
By: (manual signature)
Chairman
By: (manual signature)
Secretary
The COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA (the “Authority”) acknowledges itself indebted to, and for value received
hereby promises to pay, but solely from certain specified tax revenues to the Registered Owner named
above, or registered assigns, on the Date of Maturity stated above (or earlier as hereinafter referred to),
the Principal Amount on Schedule 1 attached hereto upon presentation and surrender hereof at the office
of the registrar and paying agent herefor, the Treasurer of the City of Grand Island, Nebraska (the
“Registrar”), payable semiannually on June 30 and December 31 of each year until payment in full of
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such Principal Amount, beginning June 30, 2022, by check or draft mailed to the Registered Owner
hereof as shown on the note registration books maintained by the Registrar on the 15th day of the month
preceding the month in which the applicable payment date occurs, at such Owner’s address as it appears
on such note registration books. The principal of this Note is payable in any coin or currency which on
the respective dates of payment thereof is legal tender for the payment of debts due the United States of
America.
This Note is issued by the Authority under the authority of and in full compliance with the
Constitution and statutes of the State of Nebraska, including particularly Article VIII, Section 12 of the
Nebraska Constitution, Sections 18-2101 to 18-2153, inclusive, Reissue Revised Statutes of Nebraska, as
amended, and under and pursuant to Resolution No. ________ duly passed and adopted by the Authority on
______________, 2019, as from time to time amended and supplemented (the “Resolution”).
THE PRINCIPAL AMOUNT OF THIS NOTE IS SET FORTH IN SCHEDULE 1
ATTACHED HERETO. THE MAXIMUM PRINCIPAL AMOUNT OF THIS NOTE IS $199,000.
This Note has been issued by the Authority for the purpose of financing the costs of constructing,
reconstructing, improving, extending, rehabilitating, installing, equipping, furnishing and completing certain
improvements within the area identified and referred to as the City of Grand Island Redevelopment Plan
Amendment for Redevelopment Area #1 December 2018, (Paramount Development, LLC, Project) which is
more specifically described in the Resolution, and to carry out the Authority’s corporate purposes and
powers in connection therewith.
Reference is hereby made to the Resolution for the provisions, among others, with respect to the
collection and disposition of certain tax and other revenues, the special funds charged with and pledged to
the payment of the principal of and interest on this Note, the nature and extent of the security thereby
created, the terms and conditions under which this Note has been issued, the rights and remedies of the
Registered Owner of this Note, and the rights, duties, immunities and obligations of the City and the
Authority. By the acceptance of this Note, the Registered Owner assents to all of the provisions of the
Resolution.
This Note is a special limited obligation of the Authority payable as to principal solely from and is
secured solely by the Tax Revenue (as defined in the Resolution) pledged under the Resolution, all on the
terms and conditions set forth in the Resolution. The Tax Revenue represents that portion of ad valorem
taxes levied by public bodies of the State of Nebraska, including the City, on real property in the Project
Area (as defined in this Resolution) which is in excess of that portion of such ad valorem taxes produced by
the levy at the rate fixed each year by or for each such public body upon the valuation of the Project Area as
of a certain date and as has been certified by the County Assessor of Hall County, Nebraska to the City in
accordance with law.
The principal hereon shall not be payable from the general funds of the City nor the Authority nor
shall this Note constitute a legal or equitable pledge, charge, lien, security interest or encumbrance upon any
of the property or upon any of the income, receipts, or money and securities of the City or the Authority or
of any other party other than those specifically pledged under the Resolution. This Note is not a debt of the
City or the Authority within the meaning of any constitutional, statutory or charter limitation upon the
creation of general obligation indebtedness of the City or the Authority, and does not impose any general
liability upon the City or the Authority and neither the City nor the Authority shall be liable for the payment
hereof out of any funds of the City or the Authority other than the Tax Revenues and other funds pledged
under the Resolution, which Tax Revenues and other funds have been and hereby are pledged to the
punctual payment of the principal of and interest on this Note in accordance with the provisions of this
Resolution.
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The Registrar may from time to time enter the respective amounts advanced pursuant to the terms of
the Resolution under the column headed “Principal Amount Advanced” on Schedule 1 hereto (the “Table”)
and may enter the aggregate principal amount of this Note then outstanding under the column headed
“Cumulative Outstanding Principal Amount” on the Table. On each date upon which a portion of the
Cumulative Outstanding Principal Amount is paid to the Registered Owner pursuant to the redemption
provisions of the Resolution, the Registered Owner may enter the principal amount paid on this Note under
the column headed “Principal Amount Redeemed” on the Table and may enter the then outstanding
principal amount of this Note under the column headed “Cumulative Outstanding Principal Amount” on the
Table. Notwithstanding the foregoing, the records maintained by the Registrar as to the principal amount
issued and principal amounts paid on this Note shall be the official records of the Cumulative Outstanding
Principal Amount of this Note for all purposes.
Reference is hereby made to the Resolution, a copy of which is on file in the office of the City
Clerk, and to all of the provisions of which each Owner of this Note by its acceptance hereof hereby assents,
for definitions of terms; the description of and the nature and extent of the security for this Note; the Tax
Revenue pledged to the payment of the principal on this Note; the nature and extent and manner of
enforcement of the pledge; the conditions upon which the Resolution may be amended or supplemented
with or without the consent of the Owner of this Note; the rights, duties and obligations of the Authority and
the Registrar thereunder; the terms and provisions upon which the liens, pledges, charges, trusts and
covenants made therein may be discharged at or prior to the maturity or redemption of this Note, and this
Note thereafter no longer be secured by the Resolution or be deemed to be outstanding thereunder, if money
or certain specified securities shall have been deposited with the Registrar sufficient and held in trust solely
for the payment hereof; and for the other terms and provisions thereof.
This Note is subject to redemption prior to maturity, at the option of the Authority, in whole or in
part at any time at a redemption price equal to 100% of the principal amount being redeemed, plus accrued
interest on such principal amount to the date fixed for redemption. Reference is hereby made to the
Resolution for a description of the redemption procedures and the notice requirements pertaining thereto.
In the event this Note is called for prior redemption, notice of such redemption shall be given by
first-class mail to the Registered Owner hereof at its address as shown on the registration books maintained
by the Registrar not less than 10 days prior to the date fixed for redemption, unless waived by the Registered
Owner hereof. If this Note, or any portion thereof, shall have been duly called for redemption and notice of
such redemption duly given as provided, then upon such redemption date the portion of this Note so
redeemed shall become due and payable and if money for the payment of the portion of the Note so
redeemed shall be held for the purpose of such payment by the Registrar.
This Note is transferable by the Registered Owner hereof in person or by its attorney or legal
representative duly authorized in writing at the principal office of the Registrar, but only in the manner,
subject to the limitations and upon payment of the charges provided in the Resolution, and upon surrender
and cancellation of this Note. Upon such transfer, a new Note of the same series and maturity and for the
same principal amount will be issued to the transferee in exchange therefor. The Authority and the
Registrar may deem and treat the Registered Owner hereof as the absolute owner hereof for the purpose of
receiving payment of or on account of principal of and interest due hereon and for all other purposes.
This note is being issued as a registered note without coupons. This note is subject to exchange as
provided in the Resolution.
It is hereby certified, recited and declared that all acts, conditions and things required to have
happened, to exist and to have been performed precedent to and in the issuance of this Note have happened,
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do exist and have been performed in regular and due time, form and manner; that this Note does not exceed
any constitutional, statutory or charter limitation on indebtedness; and that provision has been made for the
payment of the principal of and interest on this Note as provided in this Resolution.
[The remainder of this page intentionally left blank]
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(FORM OF ASSIGNMENT)
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
___________________________________________________________________________
Print or Type Name, Address and Social Security Number
or other Taxpayer Identification Number of Transferee
the within note and all rights thereunder, and hereby irrevocably constitutes and appoints
_______________ agent to transfer the within Note on the note register kept by the Registrar for the
registration thereof, with full power of substitution in the premises.
Dated: _______________ _______________________________________
NOTICE: The signature to this Assignment
must correspond with the name of the Registered
Owner as it appears upon the face of the within
note in every particular.
Signature Guaranteed By:
_______________________________________
Name of Eligible Guarantor Institution as
defined by SEC Rule 17 Ad-15 (17 CFR 240.17
Ad-15)
By: ________________________________
Title: ________________________________
[The remainder of this page intentionally left blank]
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SCHEDULE 1
TABLE OF CUMULATIVE OUTSTANDING PRINCIPAL AMOUNT
COMMUNITY REDEVELOPMENT AUTHORITY OF
THE CITY OF GRAND ISLAND, NEBRASKA
PARAMOUNT DEVELOPMENT, LLC, REDEVELOPMENT PROJECT II
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2019
Date
Principal Amount
Advanced
Principal Amount
Redeemed
Cumulative
Outstanding
Principal
Amount
Notation
Made
By
ARTICLE X
DEFEASANCE; MONEY HELD FOR PAYMENT OF
DEFEASED NOTE
Section 10.1. Discharge of Liens and Pledges; Note No Longer Outstanding Hereunder. The
obligations of the Authority under this Resolution, including any Resolutions, resolutions or other
proceedings supplemental hereto, and the liens, pledges, charges, trusts, assignments, covenants and
agreements of the Authority herein or therein made or provided for, shall be fully discharged and satisfied as
to the Note or any portion thereof, and the Note or any portion thereof shall no longer be deemed to be
outstanding hereunder and thereunder,
(a) when the any Note or portion thereof shall have been canceled, or shall have
been surrendered for cancellation or is subject to cancellation, or shall have been purchased from
money in any of the funds held under this Resolution, or
(b) if the Note or portion thereof is not canceled or surrendered for cancellation or
subject to cancellation or so purchased, when payment of the principal of the Note or any portion
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thereof, plus interest on such principal to the due date thereof, either (1) shall have been made or
caused to be made in accordance with the terms thereof, or (2) shall have been provided by
irrevocably depositing with the Registrar for the Note, in trust and irrevocably set aside exclusively
for such payment, (A) money sufficient to make such payment or (B) Escrow Obligations maturing
as to principal in such amount and at such times as will insure the availability of sufficient money to
make such payment.
Provided that, with respect to any total redemption of any Note, notice of redemption shall have
been duly given or provision satisfactory to the Registrar shall have been made therefor, or waiver of such
notice, satisfactory in form, shall have been filed with the Registrar.
At such time as any Note or portion thereof shall no longer be outstanding hereunder, and, except
for the purposes of any such payment from such money or such Escrow Obligations, such Note or portion
thereof shall no longer be secured by or entitled to the benefits of this Resolution.
Any such money so deposited with the Registrar for any Note or portion thereof as provided in this
Section 10.1 may at the direction of the Finance Director also be invested and reinvested in Escrow
Obligations, maturing in the amounts and times as hereinbefore set forth. All income from all Escrow
Obligations in the hands of the Registrar which is not required for the payment of such Note or portion
thereof with respect to which such money shall have been so deposited, shall be paid to the Authority and
deposited in the Special Fund as and when realized and collected for use and application as is other money
deposited in that fund.
Anything in this Resolution to the contrary notwithstanding, if money or Escrow Obligations have
been deposited or set aside with the Registrar pursuant to this Section 10.1 for the payment of any Note and
such Note shall not have in fact been actually paid in full, no amendment to the provisions of this Section
10.1 shall be valid as to or binding upon the Owner thereof without the consent of such Owner.
Section 10.2. Certain Limitations After Due Date. If sufficient money or Escrow Obligations
shall have been deposited in accordance with the terms hereof with the Registrar in trust for the purpose of
paying the Notes or any portion thereof when the same becomes due, whether at maturity or upon earlier
redemption, all liability of the Authority for such payment shall forthwith cease, determine and be
completely discharged, and thereupon it shall be the duty of the Registrar to hold such money or Escrow
Obligations, without liability to the Owners, in trust for the benefit of the Owners, who thereafter shall be
restricted exclusively to such money or Escrow Obligations for any claim for such payment of whatsoever
nature on his part.
Notwithstanding the provisions of the preceding paragraph of this Section 10.2, money or Escrow
Obligations held by the Registrar in trust for the payment and discharge of the principal of on any Note
which remain unclaimed for five years after the date on which such payment shall have become due and
payable, either because the Notes shall have reached their maturity date or because the entire principal
balance of the Notes shall have been called for redemption, if such money was held by the Registrar or such
paying agent at such date, or for five years after the date of deposit of such money, if deposited with the
Registrar after the date when such Note became due and payable, shall, at the written request of the
Authority be repaid by the Registrar to the Authority as the Authority’s property and free from the trust
created by this Resolution, and the Registrar shall thereupon be released and discharged with respect thereto,
and the Owner thereof shall look only to the Authority for the payment thereof.
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ARTICLE XI
AMENDING AND SUPPLEMENTING OF RESOLUTION
Section 11.1. Amending and Supplementing of Resolution Without Consent of Owner. The
Authority may at any time without the consent or concurrence of the Owner of the Note adopt a resolution
amendatory hereof or supplemental hereto if the provisions of such supplemental Resolution do not
materially adversely affect the rights of the Owner of the Note, for any one or more of the following
purposes:
(a) To make any changes or corrections in this Resolution as to which the Authority shall
have been advised by counsel that the same are verbal corrections or changes or are required for the
purpose of curing or correcting any ambiguity or defective or inconsistent provision or omission or
mistake or manifest error contained in this Resolution, or to insert in this Resolution such provisions
clarifying matters or questions arising under this Resolution as are necessary or desirable;
(b) To add additional covenants and agreements of the Authority for the purpose of further
securing payment of the Note;
(c) To surrender any right, power or privilege reserved to or conferred upon the Authority by
the terms of this Resolution;
(d) To confirm as further assurance any lien, pledge or charge, or the subjection to any lien,
pledge or charge, created or to be created by the provisions of this Resolution; and
(e) To grant to or confer upon the Owner of the Note any additional rights, remedies, powers,
authority or security that lawfully may be granted to or conferred upon them.
The Authority shall not adopt any supplemental Resolution authorized by the foregoing
provisions of this Section 11.1 unless in the opinion of counsel the adoption of such supplemental
Resolution is permitted by the foregoing provisions of this Section 11.1 and the provisions of such
supplemental Resolution do not materially and adversely affect the rights of the Owner of the Note.
Section 11.2. Amending and Supplementing of Resolution with Consent of Owner. With the
consent of the Owners of the Note, the Authority from time to time and at any time may adopt a
resolution amendatory hereof or supplemental hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Resolution, or modifying or
amending the rights and obligations of the Authority under this Resolution, or modifying or amending in
any manner the rights of the Owner of the Note; provided, however, that, without the specific consent of
the Owner of the Note, no supplemental Resolution amending or supplementing the provisions hereof
shall: (a) change the fixed maturity date for the payment or the terms of the redemption thereof, or reduce
the principal amount of the Note or the rate of interest thereon or the Redemption Price payable upon the
redemption or prepayment thereof; (b) authorize the creation of any pledge of the Tax Revenues and other
money and securities pledged hereunder, prior, superior or equal to the pledge of and lien and charge
thereon created herein for the payment of the Note except to the extent provided in Articles III and V; or
(c) deprive the Owner of the Note in any material respect of the security afforded by this Resolution.
Nothing in this paragraph contained, however, shall be construed as making necessary the approval of the
Owner\ of the Note of the adoption of any supplemental Resolution authorized by the provisions of
Section 11.1.
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It shall not be necessary that the consents of the Owner of the Note approve the particular form of
wording of the proposed amendment or supplement or of the proposed supplemental Resolution effecting
such amendment or supplement, but it shall be sufficient if such consents approve the substance of the
proposed amendment or supplement. After the Owner of the Note shall have filed its consent to the
amending or supplementing hereof pursuant to this Section, the Authority may adopt such supplemental
Resolution.
Section 11.3. Effectiveness of Supplemental Resolution. Upon the adoption (pursuant to this
Article XI and applicable law) by the Authority of any supplemental Resolution amending or
supplementing the provisions of this Resolution or upon such later date as may be specified in such
supplemental Resolution, (a) this Resolution and the Note shall be modified and amended in accordance
with such supplemental Resolution, (b) the respective rights, limitations of rights, obligations, duties and
immunities under this Resolution and the Owner of the Note shall thereafter be determined, exercised and
enforced under this Resolution subject in all respects to such modifications and amendments, and (c) all
of the terms and conditions of any such supplemental Resolution shall be a part of the terms and
conditions of the Note and of this Resolution for any and all purposes.
ARTICLE XII
MISCELLANEOUS
Section 12.1. General and Specific Authorizations; Ratification of Prior Actions. Without in
any way limiting the power, authority or discretion elsewhere herein granted or delegated, the Authority
hereby (a) authorizes and directs the Chairman, Finance Director, Secretary, Planning Director and all other
officers, officials, employees and agents of the City to carry out or cause to be carried out, and to perform
such obligations of the Authority and such other actions as they, or any of them, in consultation with Special
Counsel, the Owner and its counsel shall consider necessary, advisable, desirable or appropriate in
connection with this Resolution, including without limitation the execution and delivery of all related
documents, instruments, certifications and opinions, and (b) delegates, authorizes and directs the Finance
Director the right, power and authority to exercise his independent judgment and absolute discretion in (1)
determining and finalizing all terms and provisions to be carried by the Note not specifically set forth in this
Resolution and (2) the taking of all actions and the making of all arrangements necessary, proper,
appropriate, advisable or desirable in order to effectuate the issuance, sale and delivery of the Note. The
execution and delivery by the Finance Director or by any such other officers, officials, employees or agents
of the City of any such documents, instruments, certifications and opinions, or the doing by them of any act
in connection with any of the matters which are the subject of this Resolution, shall constitute conclusive
evidence of both the Authority’s and their approval of the terms, provisions and contents thereof and of all
changes, modifications, amendments, revisions and alterations made therein and shall conclusively establish
their absolute, unconditional and irrevocable authority with respect thereto from the Authority and the
authorization, approval and ratification by the Authority of the documents, instruments, certifications and
opinions so executed and the actions so taken.
All actions heretofore taken by the Finance Director and all other officers, officials, employees and
agents of the Authority, including without limitation the expenditure of funds and the selection, appointment
and employment of Special Counsel and financial advisors and agents, in connection with issuance and sale
of the Note, together with all other actions taken in connection with any of the matters which are the subject
hereof, be and the same is hereby in all respects authorized, adopted, specified, accepted, ratified, approved
and confirmed.
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Section 12.2. Proceedings Constitute Contract; Enforcement Thereof. The provisions of this
Resolution shall constitute a contract between the Authority and the Owner and the provisions thereof shall
be enforceable by the Owner by mandamus, accounting, mandatory injunction or any other suit, action or
proceeding at law or in equity that is presently or may hereafter be authorized under the laws of the State in
any court of competent jurisdiction. Such contract is made under and is to be construed in accordance with
the laws of the State.
After the issuance and delivery of any Note, this Resolution and any supplemental Resolution shall
not be repealable, but shall be subject to modification or amendment to the extent and in the manner
provided in this Resolution, but to no greater extent and in no other manner.
Section 12.3. Benefits of Resolution Limited to the Authority and the Owner. With the
exception of rights or benefits herein expressly conferred, nothing expressed or mentioned in or to be
implied from this Resolution or the Note is intended or should be construed to confer upon or give to any
person other than the Authority and the Owner of the Note any legal or equitable right, remedy or claim
under or by reason of or in respect to this Resolution or any covenant, condition, stipulation, promise,
agreement or provision herein contained. The Resolution and all of the covenants, conditions, stipulations,
promises, agreements and provisions hereof are intended to be and shall be for and inure to the sole and
exclusive benefit of the City, the Authority and the Owner from time to time of the Note as herein and
therein provided.
Section 12.4. No Personal Liability. No officer or employee of the Authority shall be
individually or personally liable for the payment of the principal of or interest on the Note. Nothing herein
contained shall, however, relieve any such officer or employee from the performance of any duty provided
or required by law.
Section 12.5. Effect of Saturdays, Sundays and Legal Holidays. Whenever this Resolution
requires any action to be taken on a Saturday, Sunday or legal holiday, such action shall be taken on the first
business day occurring thereafter. Whenever in this Resolution the time within which any action is required
to be taken or within which any right will lapse or expire shall terminate on a Saturday, Sunday or legal
holiday, such time shall continue to run until midnight on the next succeeding business day.
Section 12.6. Partial Invalidity. If any one or more of the covenants or agreements or portions
thereof provided in this Resolution on the part of the City, the Authority or the Registrar to be performed
should be determined by a court of competent jurisdiction to be contrary to law, then such covenant or
covenants, or such agreement or agreements, or such portions thereof, shall be deemed severable from the
remaining covenants and agreements or portions thereof provided in this Resolution and the invalidity
thereof shall in no way affect the validity of the other provisions of this Resolution or of the Note, but the
Owner of the Note shall retain all the rights and benefits accorded to them hereunder and under any
applicable provisions of law.
If any provisions of this Resolution shall be held or deemed to be or shall, in fact, be inoperative or
unenforceable or invalid as applied in any particular case in any jurisdiction or jurisdictions or in all
jurisdictions, or in all cases because it conflicts with any constitution or statute or rule of public policy, or
for any other reason, such circumstances shall not have the effect of rendering the provision in question
inoperative or unenforceable or invalid in any other case or circumstance, or of rendering any other
provision or provisions herein contained inoperative or unenforceable or invalid to any extent whatever.
Section 12.7. Law and Place of Enforcement of this Resolution. The Resolution shall be
construed and interpreted in accordance with the laws of the State. All suits and actions arising out of this
Resolution shall be instituted in a court of competent jurisdiction in the State except to the extent necessary
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for enforcement, by any trustee or receiver appointed by or pursuant to the provisions of this Resolution, or
remedies under this Resolution.
Section 12.8. Effect of Article and Section Headings and Table of Contents. The headings or
titles of the several Articles and Sections hereof, and any table of contents appended hereto or to copies
hereof, shall be solely for convenience of reference and shall not affect the meaning, construction,
interpretation or effect of this Resolution.
Section 12.9. Repeal of Inconsistent Resolution. Any Resolution of the City, or the Authority
and any part of any resolution, inconsistent with this Resolution is hereby repealed to the extent of such
inconsistency.
Section 12.10. Publication and Effectiveness of this Resolution. This Resolution shall take
effect and be in full force from and after its passage by the Community Redevelopment Authority of the
City.
Section 12.11 Authority to Execute Redevelopment Contract and Approve Plan. The
Chairman and Secretary are authorized and directed to execute the Redevelopment Contract, in the form
presented with such changes as the Chairman, in his discretion deems proper. The Plan is approved and
adopted.
PASSED AND ADOPTED: ______________________, 2019.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA
(SEAL) By:
Chairman
ATTEST:
By:
Secretary
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Community Redevelopment
Authority (CRA)
Wednesday, February 13, 2019
Regular Meeting
Item I1
Redevelopment Plan Amendment for CRA Area #1 - Williamson
Interiors building 112 E 3rd Street - Wing Properties
Staff Contact:
Grand Island Regular Meeting - 2/13/2019 Page 91 / 177
Wing Properties Inc 112 E 3rd
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 297
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 Wing Properties Inc. (the “Redeveloper”), in
the form attached hereto as Exhibit B, for the purpose of redeveloping Redevelopment Area legally
described on Exhibit A, referred to herein as the Project Area (the “Project Area”); and
WHEREAS, pursuant to the Redevelopment Plan, the Authority would agree to incur
indebtedness and make a grant for the purposes specified in the Redevelopment Plan (the “Project”), in
accordance with and as permitted by the Act; and
WHEREAS, the Authority has conducted a cost benefit analysis of the Project (the “Cost
Benefit Analysis”) pursuant to Section 18-2113 of the Act, a which is included in the Redevelopment
Plan attached hereto as Exhibit B; and
WHEREAS, the Authority has made certain findings and pursuant thereto has determined that it
is in the best interests of the Authority and the City to approve the Redevelopment Plan and approve the
Redevelopment Project and to approve the transactions contemplated thereby.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA AS FOLLOWS:
Section 1. The Authority has determined that the proposed land uses and building requirements
in the Redevelopment Plan for the Project Area are designed with the general purposes of accomplishing,
and in conformance with the general plan of the City, a coordinated, adjusted, and harmonious
development of the City and its environs which will, in accordance with present and future needs,
promote health, safety, morals, order, convenience, prosperity and the general welfare, as well as
efficiency in economy in the process of development; including, among other things, adequate provision
for traffic, vehicular parking, the promotion of safety from fire, panic, and other dangers, adequate
provisions for light and air, the promotion of the healthful and convenient distribution of population, the
provision of adequate transportation, water, sewerage, and other public utilities, schools, parks,
recreational and communitive facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention of the recurrence of
unsanitary or unsafe dwelling accommodations, or conditions of blight.
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Wing Properties Inc 112 E 3rd
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 $105,000 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 13th day of February, 2019.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND NEBRASKA
ATTEST: By: ___________________________________
Chair
By: ___________________________________
Secretary
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Wing Properties Inc 112 E 3rd
EXHIBIT A
LEGAL DESCRIPTION OF REDEVELOPMENT PROJECT AREA
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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Wing Properties Inc 112 E 3rd
* * * * *
EXHIBIT B
FORM OF REDEVELOPMENT PLAN
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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
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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 February 6, 2019 and passed
Resolution 2019-05 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)]
Grand Island Regular Meeting - 2/13/2019 Page 99 / 177
City of Grand Island Future Land Use Map
Grand Island Regular Meeting - 2/13/2019 Page 100 / 177
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
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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 - 2/13/2019 Page 103 / 177
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 - 2/13/2019 Page 104 / 177
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 - 2/13/2019 Page 105 / 177
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 - 2/13/2019 Page 106 / 177
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 - 2/13/2019 Page 107 / 177
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 - 2/13/2019 Page 108 / 177
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 $105,095 in TIF. The purpose for the request is to get a
loan against the TIF bond for construction. This will allow the project to cash flow and
therefore be a success.
Grand Island Regular Meeting - 2/13/2019 Page 109 / 177
Statement Identifying Financial Gap and Necessity for use of Tax Increment Financing
for Proposed Project: Without TIF assistance the project will not cash flow and
therefore will not be a successful business venture. See attached pro forma.
Municipal and Corporate References (if applicable). Please identify all other
Municipalities, and other Corporations the Applicant has been involved with, or
has completed developments in, within the last five (5) years, providing contact
person, telephone and fax numbers for each:
NA
Post Office Box 1968
Grand Island, Nebraska 68802-1968
Phone: 308 385-5240
Fax: 308 385-5423
Email: cnabity@grand-island.com
Grand Island Regular Meeting - 2/13/2019 Page 110 / 177
TIF Calculations
2017 Assessed Value Finished Value Increment
50,521$ 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
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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 - 2/13/2019 Page 112 / 177
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 - 2/13/2019 Page 113 / 177
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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Community Redevelopment
Authority (CRA)
Wednesday, February 13, 2019
Regular Meeting
Item I2
Redevelopment Plan Amendment for CRA Area #1 - GI Music
building 110 W 2nd Street - Rawr Holdings LLC.
Staff Contact:
Grand Island Regular Meeting - 2/13/2019 Page 120 / 177
Rawr Holdings LLC Old GI Music Building 110 W 2nd
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 298
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 Rawr Holdings LLC (the “Redeveloper”), in
the form attached hereto as Exhibit B, for the purpose of redeveloping Redevelopment Area legally
described on Exhibit A, referred to herein as the Project Area (the “Project Area”); and
WHEREAS, pursuant to the Redevelopment Plan, the Authority would agree to incur
indebtedness and make a grant for the purposes specified in the Redevelopment Plan (the “Project”), in
accordance with and as permitted by the Act; and
WHEREAS, the Authority has conducted a cost benefit analysis of the Project (the “Cost
Benefit Analysis”) pursuant to Section 18-2113 of the Act, a which is included in the Redevelopment
Plan attached hereto as Exhibit B; and
WHEREAS, the Authority has made certain findings and pursuant thereto has determined that it
is in the best interests of the Authority and the City to approve the Redevelopment Plan and approve the
Redevelopment Project and to approve the transactions contemplated thereby.
NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA AS FOLLOWS:
Section 1. The Authority has determined that the proposed land uses and building requirements
in the Redevelopment Plan for the Project Area are designed with the general purposes of accomplishing,
and in conformance with the general plan of the City, a coordinated, adjusted, and harmonious
development of the City and its environs which will, in accordance with present and future needs,
promote health, safety, morals, order, convenience, prosperity and the general welfare, as well as
efficiency in economy in the process of development; including, among other things, adequate provision
for traffic, vehicular parking, the promotion of safety from fire, panic, and other dangers, adequate
provisions for light and air, the promotion of the healthful and convenient distribution of population, the
provision of adequate transportation, water, sewerage, and other public utilities, schools, parks,
recreational and communitive facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention of the recurrence of
unsanitary or unsafe dwelling accommodations, or conditions of blight.
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Rawr Holdings LLC Old GI Music Building 110 W 2nd
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 $75,031 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 13th day of February, 2019.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND NEBRASKA
ATTEST:By: ___________________________________
Chair
By: ___________________________________
Secretary
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Rawr Holdings LLC Old GI Music Building 110 W 2nd
EXHIBIT A
LEGAL DESCRIPTION OF REDEVELOPMENT PROJECT AREA
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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Rawr Holdings LLC Old GI Music Building 110 W 2nd
* * * * *
EXHIBIT B
FORM OF REDEVELOPMENT PLAN
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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 February 6, 2019 and passed
Resolution 2019-06 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.
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.
1 https://nces.ed.gov/ccd/districtsearch/district_detail.asp?ID2=3100016
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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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Community Redevelopment
Authority (CRA)
Wednesday, February 13, 2019
Regular Meeting
Item I3
Redevelopment Plan Amendment for CRA Area #1 - Old Wells
Fargo Building 304 W 3rd Street
Staff Contact:
Grand Island Regular Meeting - 2/13/2019 Page 150 / 177
Redevelopment Plan Amendment
Grand Island CRA Area 1
January 2019
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 304-306 W. 3RD STREET FOR COMMERCIAL OFFICE USES,
INCLUDING ACQUISTION AND BUILDING REHABILITATION AND
REMODELING.
The use of Tax Increment Financing to aid in rehabilitation expenses associated with
redevelopment of the Wells Fargo building located at 304-306 W. 3rd street for
commercial office space. The use of Tax Increment Financing is an integral part of the
development plan and necessary to make this project profitable and affordable in the
immediate future. The project will result in renovating and modernizing this buiding for
commercial office space. This project would not be feasible at this time without the use
of TIF.
Amur Real Estate I, LLC is the purchasing this building for use by Amur Equipment, Inc.
(AEF) for commercial office space for employees located in downtown Grand Island.
They are purchasing the property for $675,000. 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 304-306 W. 3rd Street in Grand Island Nebraska.
Legal Descriptions: All of Lot Eight (8) in Block Fifty-Seven (57) in the Original
Town, now City of Grand Island, Hall County, Nebraska.
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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 2021 through 2035 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 office 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 March 13, 2019 and passed
Resolution 2019-07 confirming that this project is consistent with the Comprehensive
Plan for the City of Grand Island.
3. The Redevelopment Plan must be sufficiently complete to address the following
items: [§18-2103(13) (b)]
a. Land Acquisition:
The Redevelopment Plan for Area 1 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority.
b. Demolition and Removal of Structures:
The project to be implemented with this plan does not provide for the demolition and
removal any structures on this property. 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 on November 9, 2018 for $675,000. The
estimated costs of rehabilitation of this property is $1,575,000,, onsite improvements of
$250,000 planning related expenses for Architectural and Engineering services of
$130,000 and are included as a TIF eligible expense. Legal, Developer and Audit Fees of
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$7,100 including a reimbursement to the City and the CRA of $7,100 are included as TIF
eligible expense. The total of eligible expenses for this project exceeds $2,637,000.
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 $360,000 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, 2022 through December 2035.
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 refurbish vacant street level commercial space in a timely
manner.
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8. Time Frame for Development
Development of this project is anticipated to be completed between January 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 use of this street level space for commercial offices is consistent with the
long term development plans for Downtown. This will return a building that has been
occupied at the center of Downtown for since its construction in 1960 to full occupancy
keeping more than 100 employees in the downtown area.
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 $360,000 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
$2,452,100 in private sector financing; a private investment of $6.81for every TIF dollar
invested.
Use of Funds Source of Funds.
Description TIF Funds Other
Grants Private Funds Total
Site Acquisition $360,000 _ $315,000 $675,000
Legal and Plan* $7,100 $7,100
Engineering/Arch $130,000 $130,000
Renovation $1,575,000 $1,575,000
Site Improvements $250,000 $250,000
Contingency $175,000 $175,000
TOTALS $360,000 $2,452,100 $2,812,100
Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2019,
valuation of approximately $675,000. Based on the 2017 levy this would result in a real
property tax of approximately $15,204. It is anticipated that the assessed value will
increase by $1,200,000 upon full completion, as a result of the site redevelopment. This
development will result in an estimated tax increase of over $27,030 annually. The tax
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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: $ 675,000
Estimated value after completion $ 1,875,000
Increment value $ 1,200,000
Annual TIF generated (estimated) $ 27,030
TIF bond issue $ 360,000
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $692,000.
The proposed redevelopment will create additional valuation of $1,200,000. 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.
(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 commercial office space options in the downtown area
consistent with the planned development in Downtown Grand Island. This will create
vacancies within the Downtown Center building. Those spaces are generally well suited
for smaller offices.
(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
(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. No additional
residential units are anticipated with this project. Amur employees that are in Grand
Island are already having an impact on the school district that that is not likely to increase
substantially due to 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 support business located in and locating in downtown Grand
Island.
Time Frame for Development
Development of this project is anticipated to be completed during between January 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 $360,000 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 $2,700,000 on TIF eligible activities.
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Amur Financial 304 W 3rd
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 300
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 13th day of February, 2019
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
GRAND ISLAND, NEBRASKA.
By___________________________
Chairperson
ATTEST:
__________________________
Secretary
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Amur Real Estate I, LLC 304 W 3rd
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND,
NEBRASKA
RESOLUTION NO. 301
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
Amur Real Estate I, LLC., (The "Developer") for redevelopment of property located at 304 W
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 13th day of February, 2019.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA.
By ___________________________
Chairperson
ATTEST:
___________________
Secretary
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