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07-08-2020 Community Redevelopment Authority Regular Meeting Packet Community Redevelopment Authority (CRA) Wednesday, July 8, 2020 Regular Meeting Packet Board Members: Tom Gdowski - Chairman Glen Murray – Vice Chairman Sue Pirnie Glenn Wilson Krae Dutoit 4:00 PM Community Meeting Room City Hall 100 E First Street Grand Island NE Grand Island Regular Meeting - 7/8/2020 Page 1 / 61 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. Grand Island Regular Meeting - 7/8/2020 Page 2 / 61 Community Redevelopment Authority (CRA) Wednesday, July 8, 2020 Regular Meeting Item A1 Agenda Staff Contact: Grand Island Regular Meeting - 7/8/2020 Page 3 / 61 Grand Island Regular Meeting - 7/8/2020 Page 4 / 61 COMMUNITY REDEVELOPMENT AUTHORITY AGENDA MEMORANDUM 4 p.m. Wednesday, July 8, 2020 2. APPROVAL OF MINUTES. The minutes of the Community Redevelopment Authority meeting June 10, 2020 are submitted for approval. A MOTION is in order. 3. APPROVAL OF FINANCIAL REPORTS. Financial reports for the period of June 1 through June 30, 2020 are submitted for approval. A MOTION is in order. 4. APPROVAL OF BILLS. Payment of bills in the amount of $3,846.23 is submitted for approval. A MOTION is in order. 5. REVIEW OF COMMITTED PROJECTS AND CRA PROPERTIES. 6. REDEVELOPMENT PLAN – J& L WESTWARD ENTERPRISES LLC.-CAAP Concerning a redevelopment plan for CRA Area No. 25 for J & L Westward Enterprises LLC for 6060 W. Old Potash Highway 2. The request from J & L Westward calls for redevelopment of the northwest corner of the intersection of 60th Road and Old Potash Highway at the entrance to the Cornhusker Army Ammunition Plant for industrial uses. The plan requests $359,625 in tax increment financing. The CRA may forward the plan to the Regional Planning Commission for review and to the Grand Island City Council to give 30-day notice of a potential development contract. A MOTION to approve Resolution 339 (forward to Regional Planning Commission) and Resolution 340 (30-day intent notice to city council) is in order. 7. 2020-21 BUDGET REVIEW The attached memo shows the projected end of year cash and revenues for next year based on a tax request identical to this year. Suggestions have been made for budgeting for operating, façade grants, real estate purchases and other grants. 8. DIRECTOR’S REPORT. 9. ADJOURNMENT. Chad Nabity Director Grand Island Regular Meeting - 7/8/2020 Page 5 / 61 Community Redevelopment Authority (CRA) Wednesday, July 8, 2020 Regular Meeting Item B1 Minutes 6-10-20 Staff Contact: Grand Island Regular Meeting - 7/8/2020 Page 6 / 61 OFFICIAL PROCEEDINGS MINUTES OF COMMUNITY REDEVELOPMENT AUTHORITY MEETING OF June 10, 2020 Pursuant to due call and notice thereof, a Meeting of the Community Redevelopment Authority of the City of Grand Island, Nebraska was conducted on June 10, 2020 at City Hall, 100 E. First Street and via Zoom Video Conference as allowed by Executive Order during the COVID-19 crisis. Notice of the meeting was given in the June 3, 2020 Grand Island Independent. 1. CALL TO ORDER. Chairman Gdowski called the meeting to order at 2:00 p.m. The following members were present: Tom Gdowski, Glen Murray, Sue Pirnie Glen and Krae Dutoit. Also present were: Director Chad Nabity, Planning Administrative Assistant Norma Hernandez, Finance Director Pat Brown and Assistant Finance Director Brian Schultz. 2. APPROVAL OF MINUTES. A motion for approval of the Minutes for the May 22, 2020 meeting was made by Murray and second by Pirnie. Upon roll call vote, all present voted aye. Motion carried. 4-0 3. Approval of Financial Reports. Brian Schultz reviewed the financial reports. A motion was made by Dutoit and second by Murray to approve the financials from May 22 – May 31, 2020. Upon roll call vote, all present voted aye. Motion carried 4-0. 4. APPROVAL OF BILLS. Brian Schultz reviewed the bills. A motion was made by Pirnie and second by Dutoit to approve the bills in the amount of $1,128,394.55. Upon roll call vote, all present voted aye. Motion carried 4-0. Nabity mentioned the Darr Street project started in 2010 has been paid off. 5. REVIEW OF COMMITTED PROJECTS & CRA PROPERTY. The committed projects and CRA properties were reviewed by Nabity. Façade Projects – Edwards Audio – Is being worked on. Hedde Building – has made a lot of progress. Sherwin Williams – Is being worked on. Sierra Arrends – also being worked on. Life Safety Grants – Peaceful Root – not sure where they are at. Rawr Holdings – Have not heard anything. But still moving forward. 6. Director’s Report. Nabity stated suggestions for budget for this year is to request the same amount as last year. Grand Island Regular Meeting - 7/8/2020 Page 7 / 61 7. Adjournment Next scheduled regular meeting July 8, 2020 at 4pm. Adjournment at 4:14 p.m. Respectfully Submitted, Norma Hernandez Administrative Assistant Grand Island Regular Meeting - 7/8/2020 Page 8 / 61 Community Redevelopment Authority (CRA) Wednesday, July 8, 2020 Regular Meeting Item C1 June 2020 Financial Reports Staff Contact: Grand Island Regular Meeting - 7/8/2020 Page 9 / 61 MONTH ENDED 2019-2020 2020 REMAINING % OF BUDGET June-20 YEAR TO DATE BUDGET BALANCE USED CONSOLIDATED Beginning Cash 1,688,382 622,763 REVENUE: Property Taxes - CRA 42,605 352,768 529,646 176,878 66.60% Property Taxes - Lincoln Pool 16,032 117,720 194,229 76,509 60.61% Property Taxes -TIF's 221,895 1,772,398 2,500,000 1,623,340 70.90% Loan Income (Poplar Street Water Line) - - 13,000 13,000 0.00% Interest Income - CRA 527 13,308 10,000 - 133.08% Interest Income - TIF'S - 294 - - Land Sales - 37,884 200,000 162,116 18.94% Other Revenue - CRA 8,154 211,300 300,000 88,700 70.43% Other Revenue - TIF's - - - - TOTAL REVENUE 289,213 2,505,671 3,746,875 2,140,544 66.87% TOTAL RESOURCES 1,977,595 2,505,671 4,369,638 2,140,544 EXPENSES Auditing & Accounting - 3,000 3,000 - 100.00% Legal Services - - 3,000 3,000 0.00% Consulting Services - - 5,000 5,000 0.00% Contract Services 5,542 38,574 75,000 36,426 51.43% Printing & Binding - - 1,000 1,000 0.00% Other Professional Services - 136 16,000 15,864 0.85% General Liability Insurance - - 250 250 0.00% Postage - - 200 200 0.00% Legal Notices 37 223 500 277 44.55% Travel & Training - - 4,000 4,000 0.00% Other Expenditures - - - - Office Supplies - - 1,000 1,000 0.00% Supplies - - 300 300 0.00% Land - - 100,000 100,000 Bond Principal - Lincoln Pool - 180,000 180,000 - 100.00% Bond Interest 6,328 14,230 14,229 - 100.01% Fiscal Agent Fees/Bond Costs - 525 - - Husker Harvest Days - 200,000 200,000 - 100.00% Façade Improvement - - 220,000 220,000 0.00% Building Improvement - 450,000 715,000 265,000 62.94% Other Projects - 220,000 220,000 0.00% Bond Principal-TIF's 1,123,180 1,584,884 2,500,000 2,500,000 63.40% Bond Interest-TIF's - 715 - - Interest Expense - - - - TOTAL EXPENSES 1,135,088 2,472,286 4,258,479 3,372,318 58.06% INCREASE(DECREASE) IN CASH (845,875) 33,385 (511,604) ENDING CASH 842,507 33,385 111,159 - CRA CASH 506,216 Lincoln Pool Tax Income Balance 102,158 TIF CASH 234,134 Total Cash 842,507 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JUNE 2020 Grand Island Regular Meeting - 7/8/2020 Page 10 / 61 MONTH ENDED 2019-2020 2020 REMAINING % OF BUDGET June-20 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JUNE 2020 GENERAL OPERATIONS: Property Taxes - CRA 42,605 352,768 529,646 176,878 66.60% Property Taxes - Lincoln Pool 16,032 117,720 194,229 76,509 60.61% Interest Income 527 13,308 10,000 - 133.08% Loan Income (Poplar Street Water Line) - 13,000 13,000 0.00% Land Sales 37,884 200,000 162,116 18.94% Other Revenue & Motor Vehicle Tax 8,154 211,300 300,000 88,700 70.43% TOTAL 67,318 732,979 1,246,875 517,204 58.79% WALNUT HOUSING PROJECT Property Taxes - - Interest Income 294 - Other Revenue - - - TOTAL - 294 - - GIRARD VET CLINIC Property Taxes 5,298 5,821 - TOTAL 5,298 5,821 - - GEDDES ST APTS-PROCON Property Taxes 17,346 - TOTAL - 17,346 - - SOUTHEAST CROSSING Property Taxes 1,632 13,994 - TOTAL 1,632 13,994 - - POPLAR STREET WATER Property Taxes 645 10,037 - TOTAL 645 10,037 - - CASEY'S @ FIVE POINTS Property Taxes 7,755 - TOTAL - 7,755 - - SOUTH POINTE HOTEL PROJECT Property Taxes 45,939 - TOTAL - 45,939 - - TODD ENCK PROJECT Property Taxes 2,354 - TOTAL - 2,354 - - JOHN SCHULTE CONSTRUCTION Property Taxes 3,893 8,115 - TOTAL 3,893 8,115 - - PHARMACY PROPERTIES INC Property Taxes 7,492 - TOTAL - 7,492 - - KEN-RAY LLC Property Taxes 3,026 27,627 - TOTAL 3,026 27,627 - - Grand Island Regular Meeting - 7/8/2020 Page 11 / 61 MONTH ENDED 2019-2020 2020 REMAINING % OF BUDGET June-20 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JUNE 2020 TOKEN PROPERTIES RUBY Property Taxes 1,630 - TOTAL - 1,630 - - GORDMAN GRAND ISLAND Property Taxes 39,242 - TOTAL - 39,242 - - BAKER DEVELOPMENT INC Property Taxes 1,906 3,943 - TOTAL 1,906 3,943 - - STRATFORD PLAZA INC Property Taxes 18,687 - TOTAL - 18,687 - - COPPER CREEK 2013 HOUSES Property Taxes 13,373 57,988 - TOTAL 13,373 57,988 - - FUTURE TIF'S Property Taxes - 2,500,000 2,500,000 TOTAL - - 2,500,000 2,500,000 CHIEF INDUSTRIES AURORA COOP Property Taxes 21,313 (21,313) TOTAL - 21,313 - (21,313) TOKEN PROPERTIES KIMBALL ST Property Taxes 1,541 (1,541) TOTAL - 1,541 - (1,541) GI HABITAT OF HUMANITY Property Taxes 2,542 (2,542) TOTAL - 2,542 - (2,542) AUTO ONE INC Property Taxes 6,960 14,524 (14,524) TOTAL 6,960 14,524 - (14,524) EIG GRAND ISLAND Property Taxes 40,031 (40,031) TOTAL - 40,031 - (40,031) TOKEN PROPERTIES CARY ST Property Taxes 4,889 (4,889) TOTAL - 4,889 - (4,889) Grand Island Regular Meeting - 7/8/2020 Page 12 / 61 MONTH ENDED 2019-2020 2020 REMAINING % OF BUDGET June-20 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JUNE 2020 WENN HOUSING PROJECT Property Taxes 2,567 (2,567) TOTAL - 2,567 - (2,567) COPPER CREEK 2014 HOUSES Property Taxes 35,133 176,581 (176,581) TOTAL 35,133 176,581 - (176,581) TC ENCK BUILDERS Property Taxes 1,901 (1,901) TOTAL - 1,901 - (1,901) SUPER MARKET DEVELOPERS Property Taxes 127,730 (127,730) TOTAL - 127,730 - (127,730) MAINSTAY SUITES Property Taxes 35,067 (35,067) TOTAL - 35,067 - (35,067) TOWER 217 Property Taxes 1,263 (1,263) TOTAL - 1,263 - (1,263) COPPER CREEK 2015 HOUSES Property Taxes 36,698 151,252 - (151,252) TOTAL 36,698 151,252 - (151,252) NORTHWEST COMMONS Property Taxes 7,170 201,246 - (201,246) TOTAL 7,170 201,246 - (201,246) HABITAT - 8TH & SUPERIOR Property Taxes 6,083 (6,083) TOTAL - 6,083 - (6,083) KAUFMAN BUILDING Property Taxes 6,834 (6,834) TOTAL - 6,834 - (6,834) TALON APARTMENTS Property Taxes 76,037 (76,037) TOTAL - 76,037 - (76,037) VICTORY PLACE Property Taxes 5,047 (5,047) TOTAL - 5,047 - (5,047) THINK SMART Property Taxes 6,854 (6,854) TOTAL - 6,854 - (6,854) Grand Island Regular Meeting - 7/8/2020 Page 13 / 61 MONTH ENDED 2019-2020 2020 REMAINING % OF BUDGET June-20 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JUNE 2020 BOSSELMAN HQ Property Taxes 95,624 (95,624) TOTAL - 95,624 - (95,624) TALON APARTMENTS 2017 Property Taxes 80,100 (80,100) TOTAL - 80,100 - (80,100) WEINRICH DEVELOPMENT Property Taxes 2,730 (2,730) TOTAL - 2,730 - (2,730) WING WILLIAMSONS Property Taxes 1,356 2,871 (2,871) TOTAL 1,356 2,871 - (2,871) HATCHERY HOLDINGS Property Taxes 83,291 91,408 (91,408) TOTAL 83,291 91,408 - (91,408) FEDERATION LABOR TEMPLE Property Taxes 3,519 3,864 (3,864) TOTAL 3,519 3,864 - (3,864) MIDDLETON PROPERTIES II Property Taxes 8,044 (8,044) TOTAL - 8,044 - (8,044) COPPER CREEK 2016 HOUSES Property Taxes 17,802 84,446 (84,446) TOTAL 17,802 84,446 - (84,446) MENDEZ ENTERPRISES LLC PHASE 1 Property Taxes 192 212 (212) TOTAL 192 212 - (212) EAST PARK ON STUHR Property Taxes 59,513 (59,513) TOTAL - 59,513 - (59,513) TAKE FLIGHT INVESTMENTS Property Taxes 279 (279) TOTAL - 279 - (279) PRATARIA VENTURES HOSPITAL Property Taxes 189,704 (189,704) TOTAL - 189,704 - (189,704) AMMUNITION PLANT Property Taxes 105 (105) TOTAL - 105 - (105) URBAN ISLAND LLC Property Taxes 1,982 (1,982) TOTAL - 1,982 - (1,982) Grand Island Regular Meeting - 7/8/2020 Page 14 / 61 MONTH ENDED 2019-2020 2020 REMAINING % OF BUDGET June-20 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JUNE 2020 PEACEFUL ROOT Property Taxes 245 (245) TOTAL - 245 - (245) TOTAL REVENUE 289,213 2,505,671 3,746,875 2,234,544 66.87% - - Grand Island Regular Meeting - 7/8/2020 Page 15 / 61 MONTH ENDED 2019-2020 2020 REMAINING % OF BUDGET June-20 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JUNE 2020 EXPENSES CRA GENERAL OPERATIONS: Auditing & Accounting 3,000 3,000 - 100.00% Legal Services - 3,000 3,000 0.00% Consulting Services - 5,000 5,000 0.00% Contract Services 5,542 38,574 75,000 36,426 51.43% Printing & Binding - 1,000 1,000 0.00% Other Professional Services 136 16,000 15,864 0.85% General Liability Insurance - 250 250 0.00% Postage - 200 200 0.00% Legal Notices 37 223 500 277 44.55% Travel & Training - 4,000 4,000 0.00% Other Expenditures - - Office Supplies - 1,000 1,000 0.00% Supplies - 300 300 0.00% Land - 100,000 100,000 Bond Principal - Lincoln Pool 180,000 180,000 - 100.00% Bond Interest - Lincoln Pool 6,328 14,230 14,229 - 100.01% Fiscal Agent Fees/Bond Costs 525 - #DIV/0! PROJECTS Husker Harvest Days 200,000 200,000 - 100.00% Façade Improvement - 220,000 220,000 0.00% Building Improvement 450,000 715,000 265,000 0.00% Other Projects - 220,000 220,000 0.00% TOTAL CRA EXPENSES 11,907 886,687 1,758,479 872,318 50.42% WALNUT HOUSING PROJECT Bond Principal 34,401 - - Bond Interest 715 - - TOTAL - 35,116 - - GIRARD VET CLINIC Bond Principal 262 524 - - TOTAL 262 524 - - GEDDES ST APTS - PROCON Bond Principal 16,566 17,346 - - TOTAL 16,566 17,346 - - SOUTHEAST CROSSINGS Bond Principal 2,920 12,362 - - TOTAL 2,920 12,362 - - POPLAR STREET WATER Bond Principal 8,154 9,391 - - TOTAL 8,154 9,391 - - CASEY'S @ FIVE POINTS Bond Principal 7,406 7,755 - - TOTAL 7,406 7,755 - - Grand Island Regular Meeting - 7/8/2020 Page 16 / 61 MONTH ENDED 2019-2020 2020 REMAINING % OF BUDGET June-20 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JUNE 2020 SOUTH POINTE HOTEL PROJECT Bond Principal 43,873 45,939 - - TOTAL 43,873 45,939 - - TODD ENCK PROJECT Bond Principal 2,197 2,354 - - TOTAL 2,197 2,354 - - JOHN SCHULTE CONSTRUCTION Bond Principal 192 4,222 - - TOTAL 192 4,222 - - PHARMACY PROPERTIES INC Bond Principal 7,155 7,492 - - TOTAL 7,155 7,492 - - KEN-RAY LLC Bond Principal 881 24,601 - - TOTAL 881 24,601 - - TOKEN PROPERTIES RUBY Bond Principal 1,557 1,630 - - TOTAL 1,557 1,630 - - GORDMAN GRAND ISLAND Bond Principal 37,478 39,242 - - TOTAL 37,478 39,242 - - BAKER DEVELOPMENT INC Bond Principal 94 2,037 - - TOTAL 94 2,037 - - STRATFORD PLAZA LLC Bond Principal 17,846 18,687 - - TOTAL 17,846 18,687 - - COPPER CREEK 2013 HOUSES Bond Principal 31,531 44,614 - - TOTAL 31,531 44,614 - - CHIEF INDUSTRIES AURORA COOP Bond Principal 20,355 21,313 - - TOTAL 20,355 21,313 - - TOKEN PROPERTIES KIMBALL STREET Bond Principal 1,472 1,541 - - TOTAL 1,472 1,541 - - GI HABITAT FOR HUMANITY Bond Principal 2,428 2,542 - - TOTAL 2,428 2,542 - - Grand Island Regular Meeting - 7/8/2020 Page 17 / 61 MONTH ENDED 2019-2020 2020 REMAINING % OF BUDGET June-20 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JUNE 2020 AUTO ONE INC Bond Principal 344 7,564 - - TOTAL 344 7,564 - - EIG GRAND ISLAND Bond Principal 38,231 40,031 - - TOTAL 38,231 40,031 - - TOKEN PROPERTIES CARY STREET Bond Principal 4,669 4,889 - - TOTAL 4,669 4,889 - - WENN HOUSING PROJECT Bond Principal 2,451 2,567 - - TOTAL 2,451 2,567 - - COPPER CREEK 2014 HOUSES Bond Principal 119,637 141,448 - - TOTAL 119,637 141,448 - - TC ENCK BUILDERS Bond Principal 1,816 1,901 - - TOTAL 1,816 1,901 - - SUPER MARKET DEVELOPERS Bond Principal 124,723 127,730 - - TOTAL 124,723 127,730 - - MAINSTAY SUITES Bond Principal 33,491 35,067 - - TOTAL 33,491 35,067 - - TOWER 217 Bond Principal 632 1,263 - - TOTAL 632 1,263 - - COPPER CREEK 2015 HOUSES Bond Principal 103,200 114,554 - - TOTAL 103,200 114,554 - NORTHWEST COMMONS Bond Principal 4,738 194,077 - - TOTAL 4,738 194,077 - HABITAT - 8TH & SUPERIOR Bond Principal 5,809 6,083 - - TOTAL 5,809 6,083 - KAUFMAN BUILDING Bond Principal 6,529 6,834 - - TOTAL 6,529 6,834 - Grand Island Regular Meeting - 7/8/2020 Page 18 / 61 MONTH ENDED 2019-2020 2020 REMAINING % OF BUDGET June-20 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JUNE 2020 TALON APARTMENTS Bond Principal 74,193 76,037 - - TOTAL 74,193 76,037 - VICTORY PLACE Bond Principal 4,820 5,047 - - TOTAL 4,820 5,047 - FUTURE TIF'S Bond Principal - 2,500,000 2,500,000 TOTAL - - 2,500,000 2,500,000 THINK SMART Bond Principal 161 6,854 - - TOTAL 161 6,854 - BOSSELMAN HQ Bond Principal 2,251 95,624 - - TOTAL 2,251 95,624 - TALON APARTMENTS 2017 Bond Principal 78,158 80,100 - - TOTAL 78,158 80,100 - WEINRICH DEVELOPMENT Bond Principal 2,607 2,730 - - TOTAL 2,607 2,730 - WING WILLIAMSONS Bond Principal 66 1,515 - - TOTAL 66 1,515 - HATCHERY HOLDINGS Bond Principal 4,058 8,117 - - TOTAL 4,058 8,117 - FEDERATION LABOR TEMPLE Bond Principal 172 345 - - TOTAL 172 345 - MIDDLETON PROPERTIES II Bond Principal 7,683 8,044 - - TOTAL 7,683 8,044 - COPPER CREEK 2016 HOUSES Bond Principal 60,099 66,644 - - TOTAL 60,099 66,644 - EAST PARK ON STUHR Bond Principal 56,837 59,513 - - TOTAL 56,837 59,513 - TAKE FLIGHT INVESTMENTS Bond Principal 139 279 - - TOTAL 139 279 - Grand Island Regular Meeting - 7/8/2020 Page 19 / 61 MONTH ENDED 2019-2020 2020 REMAINING % OF BUDGET June-20 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JUNE 2020 PRATARIA VENTURES HOSPITAL Bond Principal 181,282 189,704 - - TOTAL 181,282 189,704 - AMMUNITION PLANT Bond Principal 105 - - TOTAL - 105 - URBAN ISLAND LLC Bond Principal 1,894 1,982 - - TOTAL 1,894 1,982 - PEACEFUL ROOT Bond Principal 123 245 - - TOTAL 123 245 - TOTAL EXPENSES 1,135,088 2,472,286 4,258,479 3,372,318 58.06% Grand Island Regular Meeting - 7/8/2020 Page 20 / 61 Community Redevelopment Authority (CRA) Wednesday, July 8, 2020 Regular Meeting Item D1 July 2020 Bills Staff Contact: Grand Island Regular Meeting - 7/8/2020 Page 21 / 61 Grand Island Regular Meeting - 7/8/2020 Page 22 / 61 Community Redevelopment Authority (CRA) Wednesday, July 8, 2020 Regular Meeting Item E1 Committed Projects and CRA Properties Staff Contact: Grand Island Regular Meeting - 7/8/2020 Page 23 / 61 COMMITTED PROJECTS REMAINING GRANT AMOUNT 2020 FISCAL YR 2021 FISCAL YR 2022 FISCAL YR ESTIMATED COMP Edwards Audio-618 W 3rd (11-13-19) $ 66,213.00 $ 66,213.00 2020 Sherwin Williams-502-508 W 3rd (11-13- 19) $ 100,000.00 $ 100,000.00 2020 Sierra Arends-121 W 3rd (11-13-19) $ 57,447.00 $ 57,447.00 2020 Total Committed $ 223,660.00 $ 223,660.00 $ - $ - 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 Peaceful Root 217 N Locust (9/18/19) $ 70,000.00 $ 70,000.00 Rawr Holdings 110 W 2nd (12/12/18) $ 35,000.00 $ 35,000.00 Winter 2019 Total Committed F&L Safety Grant $ 415,000.00 $ 415,000.00 $ - $ - BUDGET COMMITTED LEFT Façade Budgeted 2020 $ 220,000.00 $ 223,660.00 $ (3,660.00) Other Projects Budgeted 2020 $ 220,000.00 $ - $ 220,000.00 Land - Budgeted 2020 $ 100,000.00 $ - $ 100,000.00 Land Sales Budgeted 2020 $ (200,000.00) $ - $ (200,000.00) subtotal $ 223,660.00 $ 116,340.00 Less committed ($638,660.00)$0.00 Balance remaining $ (415,000.00) $ 116,340.00 BUDGET PAID LEFT Building Improvements * $ 715,000.00 $ 450,000.00 $ 265,000.00 *Includes Life Safety, Façade, Other grants made in previous fiscal years CRA PROPERTIES Address Purchase Price Purchase Date Demo Cost Status 3235 S Locust (Desert Rose) $450,000 4/2/2010 $39,764 Surplus June 30, 2020 Grand Island Regular Meeting - 7/8/2020 Page 24 / 61 Community Redevelopment Authority (CRA) Wednesday, July 8, 2020 Regular Meeting Item I1 J & L Westward Enterprises Redevelopment Plan Area 25 CAAP Staff Contact: Grand Island Regular Meeting - 7/8/2020 Page 25 / 61 Grand Island Regular Meeting - 7/8/2020 Page 26 / 61 Grand Island Regular Meeting - 7/8/2020 Page 27 / 61 Grand Island Regular Meeting - 7/8/2020 Page 28 / 61 Grand Island Regular Meeting - 7/8/2020 Page 29 / 61 Grand Island Regular Meeting - 7/8/2020 Page 30 / 61 Grand Island Regular Meeting - 7/8/2020 Page 31 / 61 Grand Island Regular Meeting - 7/8/2020 Page 32 / 61 Grand Island Regular Meeting - 7/8/2020 Page 33 / 61 Grand Island Regular Meeting - 7/8/2020 Page 34 / 61 Grand Island Regular Meeting - 7/8/2020 Page 35 / 61 Grand Island Regular Meeting - 7/8/2020 Page 36 / 61 Grand Island Regular Meeting - 7/8/2020 Page 37 / 61 Grand Island Regular Meeting - 7/8/2020 Page 38 / 61 Grand Island Regular Meeting - 7/8/2020 Page 39 / 61 Grand Island Regular Meeting - 7/8/2020 Page 40 / 61 Grand Island Regular Meeting - 7/8/2020 Page 41 / 61 Grand Island Regular Meeting - 7/8/2020 Page 42 / 61 Grand Island Regular Meeting - 7/8/2020 Page 43 / 61 Site Specific Redevelopment Plan Grand Island CRA Area 25 (CAAP) July 2020 The Community Redevelopment Authority (CRA) of the City of Grand Island intends to approve a Redevelopment Plan for a specific project for Area 25 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 25. Executive Summary: Project Description THE REDEVELOPMENT OF THE PROPERTY (10 ACRES LOCATED IN PART OF THE SOUTHEAST QUARTER (SE1/4) OF SECTION (17) SEVENTEEN, TOWNSHIP ELEVEN (11) NORTH, RANGE TEN (10) WEST OF THE 6TH P.M., HALL COUNTY, NEBRASKA) 6060 W. OLD POTASH HIGHWAY (NORTHWEST CORNER OF 60TH ROAD AND OLD POTASH HIGHWAY) FOR INDUSTRIAL USES, INCLUDING CONSTRUCTION OF A 25,000 SQUARE FOOT BUILDING FOR EXPANSION OF THE J&L WESTWARD ENTERPRISES, LLC SICKLE SHARPENING BUSINESS The use of Tax Increment Financing to aid in development expenses associated with redevelopment of the property located at 6060 W. Old Potash Highway. The proposed plans would include the development of a 25,000 square foot building and associated private streets and parking to accommodate the business. The use of Tax Increment Financing is an integral part of the development plan and necessary to make this project affordable. The use of this property for industrial non-residential uses is consistent with the Cornhusker Army Ammunition Plant (CAAP) reuse plan as approved and adopted by the CAAP Reuse Committee and the Hall County Board of Supervisors. This project would not be feasible without the use of TIF. J & L Westward, LLC owns approximately 10 acres in the South Public Power Industrial Park. Development of the property and expansion of the business is contingent on Tax Increment Financing. J & L Westward, LLC has been located in Grand Island since 1991 and has 30 full time employees. This is an opportunity for them to expand both their business and their employee base, further supporting the local agricultural community. The $108,000 purchase price of this property is a TIF eligible activity. The developer is responsible for and has provided evidence that they can secure adequate debt financing to cover the costs associated with this project. The Grand Island Community Redevelopment Authority (CRA) intends to pledge the ad valorem taxes generated over the 15-year period beginning January 1, 2022 towards the allowable costs and associated financing for the acquisition and site work. TAX INCREMENT FINANCING TO PAY FOR THE REHABILITATION OF THE PROPERTY WILL COME FROM THE FOLLOWING REAL PROPERTY: Grand Island Regular Meeting - 7/8/2020 Page 44 / 61 Property Description (the “Redevelopment Project Area”) LEGAL DESCRIPTION A tract of land being a part of the Southeast Quarter of the Southeast Quarter (SE 1/4 SE 1/4), Section Seventeen (17), Township Eleven (11) North, Range Ten (10) West of the 6th P.M. , Hall County, Nebraska, and more particularly described as follows: Beginning at a Survey Marker Spike and L.S. Washer at the Southeast Corner of the Southeast Quarter of Section 17 and assuming the South line of said Southeast Quarter bearing S 89° 32' 20" W and all bearings contained herein are relative thereto; thence S 89° 32' 20" W on said South line distance of 600.00 feet; thence N 00° 08' 28" E parallel with the East line of said Southeast Quarter a distance of 735.00 feet to a 5/8” rebar w/cap; thence N 89° 32' 20" E parallel with said South line of the Southeast Quarter a distance of 600.00 feet to the East line of said Southeast Quarter; thence S 00° 06' 28" W on said East line a distance of 735.00 feet to the Point of Beginning. Grand Island Regular Meeting - 7/8/2020 Page 45 / 61 Location Map Grand Island Regular Meeting - 7/8/2020 Page 46 / 61 The tax increment will be captured for the tax years the payments for which become delinquent in years 2023 through 2037 inclusive. The real property ad valorem taxes on the current valuation will continue to be paid to the normal taxing entities. The increase will come from the construction of a building to house the J & L Westward business. This use is permitted at this location. 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 July 25, 2017.[§18-2109] Such Grand Island Regular Meeting - 7/8/2020 Page 47 / 61 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 property is not located within Grand Island or the 2 mile extraterritorial jurisdiction of Grand Island. Hall County adopted their comprehensive plan including the CAAP redevelopment plan on April 20, 2004. This redevelopment plan amendment and project are consistent with the Hall County Comprehensive Plan and the CAAP Reuse Plan, in that no changes in the Comprehensive Plan elements are intended. This plan merely provides funding for the developer to develop property with permitted uses on this property as defined by the current and effective zoning regulations. The Hall County Regional Planning Commission held a public hearing at their meeting on August 5, 2020 and passed Resolution 2020-08 confirming that this project is consistent with the Comprehensive Plan for the Hall County. 3. The Redevelopment Plan must be sufficiently complete to address the following items: [§18-2103(13) (b)] a. Land Acquisition: This Redevelopment Plan provides for real property acquisition and this plan amendment does not prohibit such acquisition. There is no proposed acquisition by the authority Property acquisition is an eligible activity for this project. b. Demolition and Removal of Structures: The project to be implemented with this plan does not provide for the demolition and removal any structures on this property. c. Future Land Use Plan Within the Hall County Comprehensive Plan as adopted and updated since 2004 this area and all of the CAAP grounds are designated as CAAP Reuse Area. According to the CAAP Reuse Plan this particular area is planned for Agriculture and Special Industrial Uses. This property is in private ownership. [§18-2103(b) and §18-2111] The attached map also is an accurate site plan of the area after redevelopment. [§18-2111(5)] Grand Island Regular Meeting - 7/8/2020 Page 48 / 61 Grand Island Regular Meeting - 7/8/2020 Page 49 / 61 Site Layout Grand Island Regular Meeting - 7/8/2020 Page 50 / 61 Proposed Building Grand Island Regular Meeting - 7/8/2020 Page 51 / 61 d. Changes to zoning, street layouts and grades or building codes or ordinances or other Planning changes. The area is zoned AG/SI-Special Agriculture/Industrial zone. No zoning changes are anticipated with this project. No changes are anticipated in street layouts or grades. No changes are anticipated in building codes or ordinances. Nor are any other planning changes contemplated. [§18-2103(b) and §18-2111] e. Site Coverage and Intensity of Use The developer is proposing to construct a 25,000 square foot manufacturing facility. The proposed development is within the site coverage and intensity of use limits of the district. This is a permitted use at this location. [§18-2103(b) and §18-2111] f. Additional Public Facilities or Utilities Municipal sewer and water are not available to this development. Electric utilities are sufficient for the proposed use of this building. No other utilities would be impacted by the development. No other utilities would be impacted by the development. [§18-2103(b) and §18-2111] 4. The Act requires a Redevelopment Plan provide for relocation of individuals and families displaced as a result of plan implementation. This property, owned by the developer, is vacant and has been vacant for more than 1 year; no relocation is contemplated or necessary. [§18-2103.02] 5. No member of the Authority, nor any employee thereof holds any interest in any property in this Redevelopment Project Area. [§18-2106] No members of the authority or staff of the CRA have any interest in this property. 6. Section 18-2114 of the Act requires that the Authority consider: a. Method and cost of acquisition and preparation for redevelopment and estimated proceeds from disposal to redevelopers. The developer owns this property and acquisition is not part of the request for tax increment financing. The estimated costs of redevelopment of this property is $2,042,483 Acquisition of the property was $108,000 along with site prep cost of $52,700. A total of $111,373 will be spent on improvements to street maintained publicly and privately. Planning related expenses for Architectural and Engineering services of $79,375 and are included as a TIF eligible expense. Legal, Fees including a reimbursement to the City and the CRA of $12,100 are included as TIF eligible expense. Grand Island Regular Meeting - 7/8/2020 Page 52 / 61 The total of the TIF eligible expenses is $363,548. The CRA will issue a zero percent interest bond in the amount of $359,625 the total TIF requested and expected over the 15 year period. It is anticipated that this will generate $252,647 of capital at the beginning of this project if the borrower can finance the debt at 5% interest over 15 years. 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 $359,625 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 2037. c. Statement of feasible method of relocating displaced families. No families will be displaced as a result of this plan. 7. Section 18-2113 of the Act requires: Prior to recommending a redevelopment plan to the governing body for approval, an authority shall consider whether the proposed land uses and building requirements in the redevelopment project area are designed with the general purpose of accomplishing, in conformance with the general plan, a coordinated, adjusted, and harmonious development of the city and its environs which will, in accordance with present and future needs, promote health, safety, morals, order, convenience, prosperity, and the general welfare, as well as efficiency and economy in the process of development, including, among other things, adequate provision for traffic, vehicular parking, the promotion of safety from fire, panic, and other dangers, adequate provision for light and air, the promotion of the healthful and convenient distribution of population, the provision of adequate transportation, water, sewerage, and other public utilities, schools, parks, recreational and community facilities, and other public requirements, the promotion of sound design and arrangement, the wise and efficient expenditure of public funds, and the prevention of the recurrence of insanitary or unsafe dwelling accommodations or conditions of blight. The Authority has considered these elements in proposing this Plan Amendment. This amendment, in and of itself will promote consistency with the Comprehensive Plan. This will have the intended result of preventing recurring elements of unsafe buildings and blighting conditions. This will accomplish the goal of encouraging appropriate industrial development at the CAAP. Grand Island Regular Meeting - 7/8/2020 Page 53 / 61 8. Time Frame for Development Development of this project is anticipated to be completed between September 2020 and December of 2021. Excess valuation should be available for this project for 15 years beginning with the 2022 tax year. 9. Justification of Project The property at the Cornhusker Army Ammunition Plant has been touted as one of the premiere industrial sites in the State of Nebraska for more than 20 years. This property has developed slowly because of lack of municipal infrastructure and lack of activity at the site. This new manufacturing facility and the associated new building(s) may be the seeds that will create additional growth in this area. The Nebraska Legislature and Governor in approving the use of TIF within former military sites within the state recognized the challenges with redeveloping this large, mostly abandoned sites. It is also anticipated that this project will create 6 full and 3 part time jobs with aggregate wages of $267,000 and benefits. 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 $359,625 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 $2,586,781 in private sector financing; a private investment of $7.19 for every TIF dollar invested. Description TIF Funds Private Funds Total Site Acquisition $108,000 $108,000 Legal and Plan*12100 $12,100 Engineering/Arch 79375 $79,375 Public and Private Streets 107450 $3,923 $111,373 Site Prep/Grading 52700 New Construction $1,682,858 $1,682,858 Equipment $900,000 $900,000 TOTALS $359,625 $2,586,781 $2,946,406 Use of Funds. Grand Island Regular Meeting - 7/8/2020 Page 54 / 61 Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2019, valuation of $94,373. Based on the 2019 levy this would result in a real property tax of approximately $1,234. It is anticipated that the assessed value will increase by $1,634,594 upon full completion, as a result of the site redevelopment. This development will result in an estimated tax increase of approximately $23,600 annually. The tax increment gained from this Redevelopment Project Area would not be available for use as 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: $ 94,373 Estimated value after completion $ 1,728,967 Increment value $ 1,634,594 Annual TIF generated (estimated) $ 23,600 TIF bond issue $ 359,625 (a) Tax shifts resulting from the approval of the use of Tax Increment Financing; The redevelopment project area currently has an estimated valuation of $94,373. The proposed redevelopment will create additional valuation of $1,634,594. No tax shifts are anticipated from the project. This project will not have a direct negative impact on local schools systems. The school system will gain an immediate bump in personal property taxes from the new equipment purchases and a long-term benefit from the additional tax base created on the property. No new roads will be created for this project. The project creates additional valuation that will support taxing entities long after the project is paid off. (b) Public infrastructure and community public service needs impacts and local tax impacts arising from the approval of the redevelopment project; No additional public service needs have been identified. Existing water and waste water facilities will not be impacted by this development. The electric utility has sufficient capacity to support the development. It is not anticipated that this will impact schools in any significant way. Fire and police protection are available and should not be negatively impacted by this development. (c) Impacts on employers and employees of firms locating or expanding within the boundaries of the area of the redevelopment project; This will create some additional employment in the area. Unemployment is low in this area. The impacts on existing employers in the area will be minimal as there are not many new employees. Grand Island Regular Meeting - 7/8/2020 Page 55 / 61 (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) Any other impacts determined by the authority to be relevant to the consideration of costs and benefits arising from the redevelopment project. This project is consistent the goals of the CAAP Reuse Plan and would be a step forward in creating the industrial district envisioned with that redevelopment. These types of uses that do not mix well with residential uses are ideal for property that is highly restricted for residential development. Time Frame for Development Development of this project is anticipated to be completed during between September of 2020 and December 31 of 2021. The base tax year should be calculated on the value of the property as of January 1, 2021. Excess valuation should be available for this project for 15 years beginning in 2022 with taxes due in 2023. 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 $359,625 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 $363,548 on TIF eligible activities. The CRA will reserve the right to issue additional debt for this project upon notification by the developer of sufficient expenses and valuation to support such debt in the form of a second or third bond issuance. Grand Island Regular Meeting - 7/8/2020 Page 56 / 61 J & L Westward Area 25 CAAP COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA RESOLUTION NO. 339 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 8th day of July, 2020 COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA. By___________________________ Chairperson ATTEST: __________________________ Secretary Grand Island Regular Meeting - 7/8/2020 Page 57 / 61 J & L Westward Enterprises CAAP Area 25 COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA RESOLUTION NO. 340 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 25, from J & L Westward Enterprises LLC , (The "Developer") for redevelopment of property located at 6060 W Old Potash Highway, an area within the boundaries of the former Cornhusker Army Ammunition Plant and within the jurisdiction of the City of Grand Island for the purposes of the Nebraska Community Redevelopment Act, 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 25; NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: Section 1. In compliance with section 18-2114 of the Act, the Authority hereby gives the governing body of the City notice that it intends to enter into the Redevelopment Contract, attached as Exhibit 1, with such changes as are deemed appropriate by the Authority, after approval of the redevelopment plan amendment related to the redevelopment project described in the Redevelopment Contract, and after the passage of 30 days from the date hereof. Section 2. The Secretary of the Authority is directed to file a copy of this resolution with the City Clerk of the City of Grand Island, forthwith. Passed and approved this 8th day of July, 2020. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA. By ___________________________ Chairperson ATTEST: ___________________ Secretary Grand Island Regular Meeting - 7/8/2020 Page 58 / 61 Community Redevelopment Authority (CRA) Wednesday, July 8, 2020 Regular Meeting Item K1 Preliminary 2020-2021 Budget Staff Contact: Grand Island Regular Meeting - 7/8/2020 Page 59 / 61 July 2, 2020 From: Chad Nabity, AICP Director To: CRA Board Re: 2020-2021 Budget Discussion Points Given the nature of the last several months and the potential issues that the City will have with budgeting it would be my recommendation that the CRA keep the tax asking for the 2020-21 budget level with the request from last year. This should result in a slightly lower levy amount while still providing adequate financing for the CRA and redevelopment activities. Based on the projected tax revenue and other revenue sources and our projected payments for other grants and façade that have been approved/discussed this year I am anticipating that our starting cash for the year will be about $617,000. Our committed projects would be limited to the 3 life safety projects for $415,000 and payments for the Veteran’s Home of $255,000 or $670,000. I am anticipating that all of our 2020 façade projects will be paid before the end of September ($223,660) along with $225,000 of the money budgeted in other projects ($105,000 for the Vets Home Contract and $120,000 to purchase the first TIF bonds on the Startostka Fifth Street Project). If the total of our committed funds for next year is $670,000 and we end the year with $622,000 we will need to devote $48,000 of this next year’s budget to these expenditures. Our projected unrestricted income available to the CRA from taxes and other sources will be $550,000 not counting any land sales. Estimated operating costs for the CRA are $109,000 so the CRA would have about $400,000 that can be budgeted for façade and other grants. I would suggest that we put $200,000 each into façade and $200,000 into other grants. I would not recommend budgeting any money for land purchases but if we have an opportunity and the funds are available we can move funds from other grants to land purchases. Given the lack of interest in the Desert Rose Property I would recommend that we do not budget any land sales this year. If we do sell the property we can budget those funds into the 2021-22 budget. The above recommendations allow for the levy to cover the Lincoln Pool bonds and for transfers in and out for TIF payments and Husker Harvest Days. Those numbers would be shown in the complete budget. Grand Island Regular Meeting - 7/8/2020 Page 60 / 61 2020 2020-2021 2021 BUDGET YE Projected BUDGET CONSOLIDATED Beginning Cash 622,763 622,763 621,663 REVENUE: Property Taxes - CRA 529,646 529,646 529,646 Property Taxes - Lincoln Pool 194,229 194,229 194,229 Property Taxes -TIF's Interest Income - CRA 10,000 10,000 10,000 Interest Income - TIF'S Land Sales Other Revenue - CRA 320,000 630,000 220,000 TOTAL REVENUE 1,053,875 1,363,875 953,875 TOTAL RESOURCES 1,676,638 1,986,638 1,575,538 EXPENSES Auditing & Accounting 3,000 3,000 3,000 Legal Services 3,000 500 3,000 Consulting Services 5,000 - 5,000 Contract Services 75,000 65,000 75,000 Printing & Binding 1,000 - 1,000 Other Professional Services 16,000 200 16,000 General Liability Insurance 250 - Postage 200 100 200 Life Safety Legal Notices 500 250 500 Travel & Training 4,000 - 4,000 Other Expenditures - - - Office Supplies 1,000 - 1,000 Supplies 300 200 300 Land 100,000 - Bond Principal - Lincoln Pool 180,000 180,000 180,000 Bond Interest 14,229 17,065 14,229 Husker Harvest Days Payment Year 1 200,000 200,000 200,000 Façade Improvement 220,000 223,660 200,000 Building Improvement 715,000 450,000 670,000 Other Projects 220,000 225,000 200,000 Bond Principal-TIF's Bond Interest-TIF's Interest Expense - - - TOTAL EXPENSES 1,758,479 1,364,975 1,573,229 INCREASE(DECREASE) IN CASH (1,100) (619,354) ENDING CASH 621,663 2,309 COMMUNITY REDEVELOPMENT AUTHORITY 2021 BUDGET WORKSHEET Grand Island Regular Meeting - 7/8/2020 Page 61 / 61