07-13-2022 Community Redevelopment Authority Regular Meeting Packet
Community Redevelopment
Authority (CRA)
Wednesday, July 13, 2022
Regular Meeting Packet
Board Members:
Tom Gdowski - Chairman
Jim Truell - Vice Chairman
Sue Pirnie
Bart Qualsett
Krae Dutoit
4:00 PM
Grand Island Regular Meeting - 7/13/2022 Page 1 / 171
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, July 13, 2022
Regular Meeting
Item A1
Agenda - July 13, 2022
Staff Contact:
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Grand Island Regular Meeting - 7/13/2022 Page 5 / 171
COMMUNITY REDEVELOPMENT AUTHORITY
AGENDA MEMORANDUM
4 p.m. Wednesday, July 13, 2022
2. APPROVAL OF MINUTES. The minutes of the Community Redevelopment
Authority meeting June 22, 2022 are submitted for approval. A MOTION is in order.
3. RATIFICATION OF ACTION ITEMS FROM CRA MEETINGS
BEGINNING JUNE 8, 2021 AND ENDING JUNE 22, 2022. CRA Board
members are required by Grand Island City Ordinance to live within the City
of Grand Island. After the June meeting it was discovered that Bart Qualsett
does not reside in the Grand Island City Limits. The City Attorney has
advised that the current board all of whom reside in the City Limits should
move to validate the actions of the CRA Board for all meetings held while Mr.
Qualsett was attending. A motion to validate the actions of the board on all
items before them at meetings between June 8, 2021 and June 22, 2022 would
be in order.
4. APPROVAL OF FINANCIAL REPORTS. Financial reports for June 1-30 are
included in the packet for review and approval.
5. APPROVAL OF BILLS. Payment of bills in the amount of $92,653.89
6. REVIEW OF COMMITTED PROJECTS AND CRA PROPERTIES.
7. REDEVELOPMENT CONTRACT AND BOND RESOLUTION FOR CRA AREA
#36 – GATEWAY NORTH SUBDIVISION–PARAMOUNT DEVELOPMENT
The Grand Island City Council approved a redevelopment plan for CRA Area No. 36
for redevelopment of the for redevelopment of the property located south of Montana
Avenue east of Independence Avenue in CRA Area No. 36 for development of 3
duplexes (6 housing units) at 4157, 4161 and 4163 Montana Avenue in the Northwest
Gateway Subdivision. The plan requests $263,200 in tax increment financing along
with associated interest on the TIF bonds. The CRA may approve the contract and
bond resolution. A MOTION to approve Resolution 394 is in order.
8. REDEVELOPMENT CONTRACT AND BOND RESOLUTION FOR CRA AREA
#6 – TRINITY HEIGHTS SUBDIVISION–MESNER DEVELOPMENT
The Grand Island City Council approved a redevelopment plan for CRA Area No. 6
for redevelopment of the property north of State Street and west of Wheeler Avenue
for residential development. The plan requests $1,767,409 in tax increment financing
Grand Island Regular Meeting - 7/13/2022 Page 6 / 171
along with associated interest on the TIF bonds. The CRA may approve the contract
and bond resolution. A MOTION to approve Resolution 395 is in order.
9. REDEVELOPMENT PLAN CRA AREA 34- STAROSTKA GROUP
UNLIMITED MILLENNIAL ESTATES SUBDIVISION-
Concerning a redevelopment plan for CRA Area No. 34 for development of 120
housing units in the proposed Millennial Estates Subdivision north of 13th Street west
of the Moore’s Creek Drainway along with an extension of Claude Road between 13th
Street and the north edge of the Millennial Estates project. The plan requests
$5,650,000 in tax increment financing along with associated interest on the TIF
bonds. The CRA may forward the plan to the Regional Planning Commission for
review and give 30-day notice to the Grand Island City Council of a potential
development contract. A MOTION to approve Resolution 396 (forward to Regional
Planning Commission) and Resolution 397 (30-day intent notice to city council) is in
order.
10. OTHER PROJECTS GRANT REQUEST HOPE HARBOR Hope Harbor owns 75%
of the block they are located on between Division and First Streets and Cleburn and
Elm. They have the opportunity to purchase the remainder of the block including 4
houses located on 2 lots. It is their intent to purchase and demolish these houses and
then begin a capital campaign to raise funds to rebuild new transitional housing at this
location. They are requesting $50,000 from the CRA to aid in purchase and
demolition.
11. 2022-23 BUDGET DISCUSSION
The 2021-22 budget is included for reference. Discussion will center around the
amounts that the Board would like to set for Real Estate Puchases, Façade Grants and
Other Projects Grants.
12. DIRECTOR’S REPORT.
13. ADJOURNMENT
Chad Nabity
Director
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Community Redevelopment
Authority (CRA)
Wednesday, July 13, 2022
Regular Meeting
Item B1
Minutes June 22, 2022
Staff Contact:
Grand Island Regular Meeting - 7/13/2022 Page 8 / 171
OFFICIAL PROCEEDINGS
MINUTES OF
COMMUNITY REDEVELOPMENT AUTHORITY
MEETING OF
June 22, 2022
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 22, 2022 at City Hall, 100 E. First
Street. Notice of the meeting was given in the June 15, 2022 Grand Island Independent.
1.CALL TO ORDER.
Chairman Gdowski called the meeting to order at 12:00 p.m. The following members were
present: Tom Gdowski, Bart Qualsett and Sue Pirnie. Also present were: Planning
Director Chad Nabity, Planning Administrative Assistant Norma Hernandez and Assistant
Finance Director Brian Schultz.
2.APPROVAL OF MINUTES.
A motion for approval of the Minutes for the May 18, 2022 meeting was made by Pirnie
and second by Qualsett. Upon roll call vote, all present voted aye.
Motion carried 3-0
3.APPROVAL OF FINANCIAL REPORTS.
Financial reports were reviewed by Brian Schultz. A motion for approval of financials for
April 2022 and May 2022 made by Qualsett and second by Pirnie. Upon roll call vote, all
present voted aye. Motion carried 3-0
4.APPROVAL OF BILLS
A motion was made by Pirnie and second by Qualsett to approve the bills for
$840,055.90. Upon roll call vote, all present voted aye. Motion carried 3-0.
5.REVIEW OF COMMITED PROJECTS & CRA PROPERTY.
The committed projects and CRA projects were reviewed by Nabity.
Rawr Holdings – have not heard anything certain from Travis Spiehs. The
board decided to send Travis a letter/30 day notice before funds are allocated.
Nabity stated have not since significant change since December of 2018. In
mid-May Nabity asked Mr. Spiehs for a schedule by June. Nabity contacted
Mr. Spiehs again the first week of June. Mr. Spiehs stated the project would
would all depend on building costs. Nabity did tell Mr. Spiehs CRA will
consider allocating the funds. Mr. Spiehs has not responded.
Desert Rose – Needs to get mowed.
CVB Grant – Sculpture Walk Grant is on bills to be paid.
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6.Redevelopment Contract and Bond Resolution Plan Amendment CRA Area
36 – Northwest Gateway Subdivision Lots 10, 11 and 12 (4157, 4161 and 4163
Montana Avenue – Paramount Development LLC
a.Consideration of Resolution 394 – Bond Resolution for Lots 10, 11, and
12 (4157, 4161 and 4163 Montana Avenue) – Paramount Development
LLC
Item moved to next CRA meeting due to issues with quorum, Gdowski has a conflict as
President of the bank making the loan for he project..
7.2022-2023 Budget Discussion
Nabity reviewed the budget for this year.
Nabity stated last year’s budget was included for reference. Nabity asked the
board members if they would like to keep the levy the same or keep the dollar
amount the same as last year and lower the levy. This year will be the last budget
year the board will have to budget for Lincoln Pool. Lincoln Pool will be paid off
in December. Nabity explained if the levy is kept the same, CRA will have an
additional $200,000 to allocate after the last bond payment in the next fiscal year.
Last year $250,000 was approved for façade. Nabity stated of 3 or 4 applications
that will be turned in. The Chamber of Commerce will be requesting $200,000.
Board members suggested allocating $300,000 to façade in the next budget and
keeping the levy constant.
8.Director’s Report
Veteran’s Home Property – closing tomorrow with CHI
Next meeting July 13, 2022 at 4 p.m.
9.Adjournment 12:34 p.m.
Respectfully Submitted,
Norma Hernandez
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Community Redevelopment
Authority (CRA)
Wednesday, July 13, 2022
Regular Meeting
Item C1
Financials - June 2022
Staff Contact:
Grand Island Regular Meeting - 7/13/2022 Page 11 / 171
MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET
June-22 YEAR TO DATE BUDGET BALANCE USED
CONSOLIDATED
Beginning Cash 653,764 548,785
REVENUE:
Property Taxes - CRA 32,548 383,910 524,191 140,281 73.24%
Property Taxes - Lincoln Pool 10,252 112,853 196,818 83,965 57.34%
Property Taxes -TIF's 822,713 2,963,241 5,400,000 3,310,858 54.87%
Loan Income (Poplar Street Water Line) - - 20,000 20,000 0.00%
Interest Income - CRA 160 1,130 10,000 8,870 11.30%
Interest Income - TIF'S - - - -
Land Sales - - - - #DIV/0!
Other Revenue - CRA 201,248 216,309 200,000 - 108.15%
Other Revenue - TIF's - - - -
TOTAL REVENUE 1,066,921 3,677,444 6,351,009 3,563,973 57.90%
TOTAL RESOURCES 1,720,685 3,677,444 6,899,794 3,563,973
EXPENSES
Auditing & Accounting - - 3,000 3,000 0.00%
Legal Services - 60 3,000 2,940 2.00%
Consulting Services - - 5,000 5,000 0.00%
Contract Services 5,447 58,652 75,000 16,348 78.20%
Printing & Binding - - 1,000 1,000 0.00%
Other Professional Services - 10,392 16,000 5,608 64.95%
General Liability Insurance - - 250 250 0.00%
Postage - - 250 250 0.00%
Legal Notices 18 177 500 323 35.42%
Travel & Training - 35 4,000 3,965 0.88%
Other Expenditures - - - -
Office Supplies - - 1,000 1,000 0.00%
Supplies - - 300 300 0.00%
Land - - 30,000 30,000
Bond Principal - Lincoln Pool - 190,000 190,000 - 100.00%
Bond Interest - 6,818 6,818 - 100.00%
Fiscal Agent Fees/Bond Costs - 525 - -
Husker Harvest Days - 200,000 200,000 - 100.00%
Façade Improvement - - 250,000 250,000 0.00%
Building Improvement 10,000 145,000 500,000 355,000 29.00%
Other Projects - - 200,000 200,000 0.00%
Bond Principal-TIF's 824,591 2,940,158 5,400,000 2,459,842 54.45%
Bond Interest-TIF's - - - -
Interest Expense - - - -
TOTAL EXPENSES 840,056 3,551,817 6,886,118 3,334,826 51.58%
INCREASE(DECREASE) IN CASH 226,865 125,627 (535,109)
ENDING CASH 880,629 125,627 13,677 -
CRA CASH 792,265
Lincoln Pool Tax Income Balance 64,704
TIF CASH 23,660
Total Cash 880,629
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2022
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MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET
June-22 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2022
GENERAL OPERATIONS:
Property Taxes - CRA 32,548 383,910 524,191 140,281 73.24%
Property Taxes - Lincoln Pool 10,252 112,853 196,818 83,965 57.34%
Interest Income 160 1,130 10,000 8,870 11.30%
Loan Income (Poplar Street Water Line) - 20,000 20,000 0.00%
Land Sales - - - #DIV/0!
Other Revenue & Motor Vehicle Tax 201,248 216,309 200,000 - 108.15%
TOTAL 244,208 714,203 951,009 253,116 75.10%
GIRARD VET CLINIC
Property Taxes 11,300 -
TOTAL - 11,300 - -
GEDDES ST APTS-PROCON
Property Taxes 33,205 -
TOTAL - 33,205 - -
SOUTHEAST CROSSING
Property Taxes - -
TOTAL - - - -
POPLAR STREET WATER
Property Taxes 1,248 13,199 -
TOTAL 1,248 13,199 - -
CASEY'S @ FIVE POINTS
Property Taxes 8,398 -
TOTAL - 8,398 - -
SOUTH POINTE HOTEL PROJECT
Property Taxes 47,032 -
TOTAL - 47,032 - -
TOKEN PROPERTIES RUBY
Property Taxes 1,705 -
TOTAL - 1,705 - -
GORDMAN GRAND ISLAND
Property Taxes 85,161 -
TOTAL - 85,161 - -
BAKER DEVELOPMENT INC
Property Taxes 1,932 2,136 -
TOTAL 1,932 2,136 - -
STRATFORD PLAZA INC
Property Taxes 34,578 -
TOTAL - 34,578 - -
COPPER CREEK 2013 HOUSES
Property Taxes 502 68,984 -
TOTAL 502 68,984 - -
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MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET
June-22 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2022
FUTURE TIF'S
Property Taxes - 5,400,000 5,400,000
TOTAL - - 5,400,000 5,400,000
CHIEF INDUSTRIES AURORA COOP
Property Taxes 20,745 (20,745)
TOTAL - 20,745 - (20,745)
TOKEN PROPERTIES KIMBALL ST
Property Taxes 1,686 (1,686)
TOTAL - 1,686 - (1,686)
GI HABITAT OF HUMANITY
Property Taxes 3,130 (3,130)
TOTAL - 3,130 - (3,130)
AUTO ONE INC
Property Taxes 15,379 (15,379)
TOTAL - 15,379 - (15,379)
EIG GRAND ISLAND
Property Taxes 12,438 41,442 (41,442)
TOTAL 12,438 41,442 - (41,442)
TOKEN PROPERTIES CARY ST
Property Taxes 4,437 (4,437)
TOTAL - 4,437 - (4,437)
WENN HOUSING PROJECT
Property Taxes 2,936 (2,936)
TOTAL - 2,936 - (2,936)
COPPER CREEK 2014 HOUSES
Property Taxes 3,909 266,162 (266,162)
TOTAL 3,909 266,162 - (266,162)
TC ENCK BUILDERS
Property Taxes 1,947 (1,947)
TOTAL - 1,947 - (1,947)
SUPER MARKET DEVELOPERS
Property Taxes 17,190 (17,190)
TOTAL - 17,190 - (17,190)
MAINSTAY SUITES
Property Taxes 36,384 (36,384)
TOTAL - 36,384 - (36,384)
TOWER 217
Property Taxes 26,338 (26,338)
TOTAL - 26,338 - (26,338)
COPPER CREEK 2015 HOUSES
Property Taxes 4,015 162,263 - (162,263)
TOTAL 4,015 162,263 - (162,263)
Grand Island Regular Meeting - 7/13/2022 Page 14 / 171
MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET
June-22 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2022
NORTHWEST COMMONS
Property Taxes 214,293 - (214,293)
TOTAL - 214,293 - (214,293)
HABITAT - 8TH & SUPERIOR
Property Taxes 6,572 (6,572)
TOTAL - 6,572 - (6,572)
KAUFMAN BUILDING
Property Taxes 6,644 (6,644)
TOTAL - 6,644 - (6,644)
TALON APARTMENTS
Property Taxes 97,227 (97,227)
TOTAL - 97,227 - (97,227)
VICTORY PLACE
Property Taxes 4,673 5,166 (5,166)
TOTAL 4,673 5,166 - (5,166)
THINK SMART
Property Taxes 6,652 (6,652)
TOTAL - 6,652 - (6,652)
BOSSELMAN HQ
Property Taxes 77,291 (77,291)
TOTAL - 77,291 - (77,291)
TALON APARTMENTS 2017
Property Taxes 109,377 (109,377)
TOTAL - 109,377 - (109,377)
WEINRICH DEVELOPMENT
Property Taxes 3,488 (3,488)
TOTAL - 3,488 - (3,488)
WING WILLIAMSONS
Property Taxes 1,948 2,152 (2,152)
TOTAL 1,948 2,152 - (2,152)
HATCHERY HOLDINGS
Property Taxes 87,855 (87,855)
TOTAL - 87,855 - (87,855)
FEDERATION LABOR TEMPLE
Property Taxes 3,401 3,757 (3,757)
TOTAL 3,401 3,757 - (3,757)
MIDDLETON PROPERTIES II
Property Taxes 8,040 (8,040)
TOTAL - 8,040 - (8,040)
COPPER CREEK 2016 HOUSES
Property Taxes 103,856 (103,856)
TOTAL - 103,856 - (103,856)
Grand Island Regular Meeting - 7/13/2022 Page 15 / 171
MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET
June-22 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2022
EAST PARK ON STUHR
Property Taxes 54,155 54,155 (54,155)
TOTAL 54,155 54,155 - (54,155)
MENDEZ ENTERPRISES LLC PHASE 1
Property Taxes 953 (953)
TOTAL - 953 - (953)
EAST PARK ON STUHR
Property Taxes 5,712 (5,712)
TOTAL - 5,712 - (5,712)
TAKE FLIGHT INVESTMENTS
Property Taxes 8,552 (8,552)
TOTAL - 8,552 - (8,552)
PRATARIA VENTURES HOSPITAL
Property Taxes 730,043 807,039 (807,039)
TOTAL 730,043 807,039 - (807,039)
AMMUNITION PLANT
Property Taxes - -
TOTAL - - - -
URBAN ISLAND LLC
Property Taxes 3,694 (3,694)
TOTAL - 3,694 - (3,694)
PEACEFUL ROOT
Property Taxes 5,178 (5,178)
TOTAL - 5,178 - (5,178)
TALON 2019 LOOKBACK
Property Taxes 2,897 (2,897)
TOTAL - 2,897 - (2,897)
COPPER CREEK PH2 2019 LOOKBACK
Property Taxes 15,228 (15,228)
TOTAL - 15,228 - (15,228)
GRAND ISLAND HOTEL
Property Taxes 59,036 (59,036)
TOTAL - 59,036 - (59,036)
PARAMOUNT OLD SEARS
Property Taxes 4,155 (4,155)
TOTAL - 4,155 - (4,155)
CENTRAL NE TRUCK WASH
Property Taxes 41,442 (41,442)
TOTAL - 41,442 - (41,442)
PRATARIA VENTURES MEDICAL OFFICE
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MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET
June-22 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2022
Property Taxes 218,444 (218,444)
TOTAL - 218,444 - (218,444)
TALON 2020 LOOKBACK PHASE 4
Property Taxes 31,006 (31,006)
TOTAL - 31,006 - (31,006)
STAROSTKA 5TH ST LOOKBACK PHASE 1
Property Taxes 7,036 (7,036)
TOTAL - 7,036 - (7,036)
COPPER CREEK PHASE 2 2020 LOOKBACK
Property Taxes 1,015 15,360 (15,360)
TOTAL 1,015 15,360 - (15,360)
COPPER CREEK PHASE 3 2020 LOOKBACK
Property Taxes 1,723 10,867 (10,867)
TOTAL 1,723 10,867 - (10,867)
HEDDE BUILDING 201 W 3RD
Property Taxes 521 (521)
TOTAL - 521 - (521)
RAWR HOLDINGS LLC 110 W 2ND
Property Taxes 30 (30)
TOTAL - 30 - (30)
ORCHARD REDEVELOPMENT PROJECT
Property Taxes 13,634 (13,634)
TOTAL - 13,634 - (13,634)
AMUR REAL ESTATE OLD WELLS FARGO
Property Taxes 12,809 (12,809)
TOTAL - 12,809 - (12,809)
WALD 12 PROPERTIES LLC
Property Taxes 65 (65)
TOTAL - 65 - (65)
WING PROPERTIES 112 E 3RD ST
Property Taxes 74 82 (82)
TOTAL 74 82 - (82)
WEINRICH DEVELOPMENT 408 E 2ND ST
Property Taxes 3,234 (3,234)
TOTAL - 3,234 - (3,234)
O'NEILL WOOD RESOURCES
Property Taxes 105 (105)
TOTAL - 105 - (105)
SOUTHEAST COMMONS - FONNERVIEW
Property Taxes 706 2,372 (2,372)
TOTAL 706 2,372 - (2,372)
Grand Island Regular Meeting - 7/13/2022 Page 17 / 171
MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET
June-22 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2022
PARAMOUNT 824 E 9TH ST
Property Taxes 264 (264)
TOTAL - 264 - (264)
J&L WESTWARD ENTERPRISES CAAP
Property Taxes 931 1,090 (1,090)
TOTAL 931 1,090 - (1,090)
MILLER TIRE
Property Taxes 176 (176)
TOTAL - 176 - (176)
TOTAL REVENUE 1,066,921 3,677,444 6,351,009 2,995,571 57.90%
- - -
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MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET
June-22 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2022
EXPENSES
CRA
GENERAL OPERATIONS:
Auditing & Accounting - 3,000 3,000 0.00%
Legal Services 60 3,000 2,940 2.00%
Consulting Services - 5,000 5,000 0.00%
Contract Services 5,447 58,652 75,000 16,348 78.20%
Printing & Binding - 1,000 1,000 0.00%
Other Professional Services 10,392 16,000 5,608 64.95%
General Liability Insurance - 250 250 0.00%
Postage - 250 250 0.00%
Legal Notices 18 177 500 323 35.42%
Travel & Training 35 4,000 3,965 0.88%
Other Expenditures - -
Office Supplies - 1,000 1,000 0.00%
Supplies - 300 300 0.00%
Land - 30,000 30,000 0.00%
Bond Principal - Lincoln Pool 190,000 190,000 - 100.00%
Bond Interest - Lincoln Pool 6,818 6,818 - 100.00%
Fiscal Agent Fees/Bond Costs 525 - #DIV/0!
PROJECTS
Husker Harvest Days 200,000 200,000 - 100.00%
Façade Improvement - 250,000 250,000 0.00%
Building Improvement 10,000 145,000 500,000 355,000 0.00%
Other Projects - 200,000 200,000 0.00%
TOTAL CRA EXPENSES 15,465 611,659 1,486,118 874,984 41.16%
GIRARD VET CLINIC
Bond Principal 11,300 - -
TOTAL - 11,300 - -
GEDDES ST APTS - PROCON
Bond Principal 32,374 - -
TOTAL - 32,374 - -
SOUTHEAST CROSSINGS
Bond Principal - - -
TOTAL - - - -
POPLAR STREET WATER
Bond Principal 1,248 13,199 - -
TOTAL 1,248 13,199 - -
CASEY'S @ FIVE POINTS
Bond Principal 8,398 - -
TOTAL - 8,398 - -
SOUTH POINTE HOTEL PROJECT
Bond Principal 47,032 - -
TOTAL - 47,032 - -
Grand Island Regular Meeting - 7/13/2022 Page 19 / 171
MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET
June-22 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2022
TOKEN PROPERTIES RUBY
Bond Principal 1,705 - -
TOTAL - 1,705 - -
GORDMAN GRAND ISLAND
Bond Principal 85,161 - -
TOTAL - 85,161 - -
BAKER DEVELOPMENT INC
Bond Principal 2,034 2,136 - -
TOTAL 2,034 2,136 - -
STRATFORD PLAZA LLC
Bond Principal 34,578 - -
TOTAL - 34,578 - -
COPPER CREEK 2013 HOUSES
Bond Principal 68,482 - -
TOTAL - 68,482 - -
CHIEF INDUSTRIES AURORA COOP
Bond Principal 20,745 - -
TOTAL - 20,745 - -
TOKEN PROPERTIES KIMBALL STREET
Bond Principal 1,686 - -
TOTAL - 1,686 - -
GI HABITAT FOR HUMANITY
Bond Principal 3,130 - -
TOTAL - 3,130 - -
AUTO ONE INC
Bond Principal 14,994 - -
TOTAL - 14,994 - -
EIG GRAND ISLAND
Bond Principal 12,438 41,442 - -
TOTAL 12,438 41,442 - -
TOKEN PROPERTIES CARY STREET
Bond Principal 4,437 - -
TOTAL - 4,437 - -
WENN HOUSING PROJECT
Bond Principal 2,936 - -
TOTAL - 2,936 - -
COPPER CREEK 2014 HOUSES
Bond Principal 3,909 266,162 - -
TOTAL 3,909 266,162 - -
TC ENCK BUILDERS
Bond Principal 1,947 - -
TOTAL - 1,947 - -
Grand Island Regular Meeting - 7/13/2022 Page 20 / 171
MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET
June-22 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2022
SUPER MARKET DEVELOPERS
Bond Principal - - -
TOTAL - - - -
MAINSTAY SUITES
Bond Principal 36,384 - -
TOTAL - 36,384 - -
TOWER 217
Bond Principal 25,683 - -
TOTAL - 25,683 - -
COPPER CREEK 2015 HOUSES
Bond Principal 4,015 162,263 - -
TOTAL 4,015 162,263 -
NORTHWEST COMMONS
Bond Principal 214,293 - -
TOTAL - 214,293 -
HABITAT - 8TH & SUPERIOR
Bond Principal 6,572 - -
TOTAL - 6,572 -
KAUFMAN BUILDING
Bond Principal 6,644 - -
TOTAL - 6,644 -
TALON APARTMENTS
Bond Principal 97,227 - -
TOTAL - 97,227 -
VICTORY PLACE
Bond Principal 4,919 5,166 - -
TOTAL 4,919 5,166 -
FUTURE TIF'S
Bond Principal - 5,400,000 5,400,000
TOTAL - - 5,400,000 5,400,000
THINK SMART
Bond Principal 6,486 - -
TOTAL - 6,486 -
BOSSELMAN HQ
Bond Principal 77,291 - -
TOTAL - 77,291 -
TALON APARTMENTS 2017
Bond Principal 112,198 - -
TOTAL - 112,198 -
Grand Island Regular Meeting - 7/13/2022 Page 21 / 171
MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET
June-22 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2022
WEINRICH DEVELOPMENT
Bond Principal 3,488 - -
TOTAL - 3,488 -
WING WILLIAMSONS
Bond Principal 2,050 2,152 - -
TOTAL 2,050 2,152 -
HATCHERY HOLDINGS
Bond Principal 87,855 - -
TOTAL - 87,855 -
FEDERATION LABOR TEMPLE
Bond Principal 3,579 3,757 - -
TOTAL 3,579 3,757 -
MIDDLETON PROPERTIES II
Bond Principal 8,040 - -
TOTAL - 8,040 -
COPPER CREEK 2016 HOUSES
Bond Principal 103,856 - -
TOTAL - 103,856 -
EAST PARK ON STUHR
Bond Principal 54,155 59,867 - -
TOTAL 54,155 59,867 -
TAKE FLIGHT INVESTMENTS
Bond Principal 8,408 - -
TOTAL - 8,408 -
PRATARIA VENTURES HOSPITAL
Bond Principal 730,043 1,014,540 - -
TOTAL 730,043 1,014,540 -
AMMUNITION PLANT
Bond Principal - - -
TOTAL - - -
URBAN ISLAND LLC
Bond Principal 3,694 - -
TOTAL - 3,694 -
PEACEFUL ROOT
Bond Principal 5,048 - -
TOTAL - 5,048 -
TALON 2019 LOOKBACK
Bond Principal - - -
TOTAL - - -
COPPER CREEK PH2 2019 LOOKBACK
Bond Principal 15,228 - -
TOTAL - 15,228 -
Grand Island Regular Meeting - 7/13/2022 Page 22 / 171
MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET
June-22 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2022
GRAND ISLAND HOTEL
Bond Principal 59,036 - -
TOTAL - 59,036 -
PARAMOUNT OLD SEARS
Bond Principal 4,155 - -
TOTAL - 4,155 -
CENTRAL NE TRUCK WASH
Bond Principal 41,442 - -
TOTAL - 41,442 -
PRATARIA VENTURES MEDICAL OFFICE
Bond Principal 10,942 - -
TOTAL - 10,942 -
TALON 2020 LOOKBACK PHASE 4
Bond Principal 30,198 - -
TOTAL - 30,198 -
STAROSTKA 5TH ST LOOKBACK PHASE 1
Bond Principal 7,036 - -
TOTAL - 7,036 -
COPPER CREEK PHASE 2 2020 LOOKBACK
Bond Principal 1,015 15,360 - -
TOTAL 1,015 15,360 -
COPPER CREEK PHASE 3 2020 LOOKBACK
Bond Principal 1,723 10,867 - -
TOTAL 1,723 10,867 -
HEDDE BUILDING 201 W 3RD
Bond Principal - - -
TOTAL - - -
RAWR HOLDINGS LLC 110 W 2ND ST
Bond Principal - - -
TOTAL - - -
ORCHARD REDEVELOPMENT PROJECT
Bond Principal 13,634 - -
TOTAL - 13,634 -
AMUR REAL ESTATE OLD WELLS FARGO
Bond Principal 12,809 - -
TOTAL - 12,809 -
WALD 12 PROPERTIES LLC OLD GREENB
Bond Principal - - -
TOTAL - - -
WING PROPERTIES 112 2 3RD ST
Bond Principal - - -
Grand Island Regular Meeting - 7/13/2022 Page 23 / 171
MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET
June-22 YEAR TO DATE BUDGET BALANCE USED
COMMUNITY REDEVELOPMENT AUTHORITY
FOR THE MONTH OF JUNE 2022
TOTAL - - -
WEINRICH DEVELOPMENT 408 E 2ND ST
Bond Principal 3,234 - -
TOTAL - 3,234 -
O'NEILL WOOD RESOURCES
Bond Principal - - -
TOTAL - - -
SOUTHEAST COMMONS - FONNERVIEW
Bond Principal 2,372 2,372 - -
TOTAL 2,372 2,372 -
PARAMOUNT 824 E 9TH ST
Bond Principal - - -
TOTAL - - -
J&L WESTWARD ENTERPRISES CAAP
Bond Principal 1,090 1,090 - -
TOTAL 1,090 1,090 -
MILLER TIRE
Bond Principal - - -
TOTAL - - -
TOTAL EXPENSES 840,056 3,551,817 6,886,118 6,274,984 51.58%
Grand Island Regular Meeting - 7/13/2022 Page 24 / 171
Community Redevelopment
Authority (CRA)
Wednesday, July 13, 2022
Regular Meeting
Item D1
July Bills
Staff Contact:
Grand Island Regular Meeting - 7/13/2022 Page 25 / 171
Grand Island Regular Meeting - 7/13/2022 Page 26 / 171
Community Redevelopment
Authority (CRA)
Wednesday, July 13, 2022
Regular Meeting
Item E1
CRA June 2022 Committed Projects
Staff Contact:
Grand Island Regular Meeting - 7/13/2022 Page 27 / 171
COMMITTED PROJECTS REMAINING
GRANT
AMOUNT
2022 FISCAL YR 2023 FISCAL YR 2024 FISCAL YR ESTIMATED
COMP
Danny Oberg - 321 E 4th St (10/25/21) $ 43,810.00 $ 43,810.00 Summer 2022
Brandon Flodman - 313 W 2nd St $ 59,783.00 $ 59,783.00 Summer 2022
Azure Investment - 223 W 3rd St (10/25/21) $ 88,000.00 $ 88,000.00 Summer 2022
Take Flight - 213 W 3rd St (10/25/21) $ 49,000.00 $ 49,000.00 Summer 2022
Dave Parmely - 208 N Locust St (10/13/21) $ 13,920.00 $ 13,920.00 Summer 2022
Total Committed $ 254,513.00 $ 254,513.00 $ - $ -
FIRE & LIFE SAFETY GRANT TOTAL
AMOUNT
2021 FISCAL YR 2022 FISCAL YR 2023 FISCAL YR ESTIMATED
COMP
201-203 W. 3rd St. Anson (8-24-16) $ 260,000.00 $ 260,000.00 Fall 2022
Azure Investment Group (5-12-21) $ 70,000.00 $ 70,000.00 Spring 2022
Rawr Holdings 110 W 2nd (12/12/18) $ 35,000.00 $ 35,000.00 Fall 2022
Total Committed F&L Safety Grant $ 365,000.00 $ 365,000.00 $ - $ -
BUDGET 2022 2022 LEFT
Façade Budgeted 2022 $ 250,000.00 $ 250,000.00 $ -
Other Projects Budgeted 2022 $ 200,000.00 $ 4,513.00 $ 195,487.00
Land - Budgeted 2022 $ 30,000.00 $ - $ 30,000.00
Land Sales Budgeted 2022 $ - $ - $ -
subtotal $ 254,513.00 $ 225,487.00
Balance $ 254,513.00 $ 225,487.00
BUDGET PAID LEFT
Building Improvements * $ 500,000.00 $ 145,000.00 $ 355,000.00
*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, 2022
Grand Island Regular Meeting - 7/13/2022 Page 28 / 171
Community Redevelopment
Authority (CRA)
Wednesday, July 13, 2022
Regular Meeting
Item G1
Consideration of Other Projects Grant Request from Hope Harbor
for acquisition and demolition of properties in CRA Area 2
Staff Contact:
Grand Island Regular Meeting - 7/13/2022 Page 29 / 171
GRANT REQUEST
2022
Grand Island Regular Meeting - 7/13/2022 Page 30 / 171
Community Redevelopment Authority
Chad Nabity
100 East First Street
Grand Island, NE 68801
Hope Harbor has been serving Grand Island and surrounding communities
since 1994. Beginning as a hotel voucher program, our organization has
experienced significant growth over the past 28 years. We serve the
community through three main programs: Emergency & Transitional Shelter,
Community Assistance, and Housing Assistance. These programs assist
families and individuals experiencing homelessness and hear homelessness
through providing basic needs.
We are excited to pursue our next expansion: the acquisition of the adjacent
properties with the purpose of building affordable housing units and
supportive housing for the chronically homeless. As you'll see in this proposal
and as you know from workforce recruitment, safe and affordable housing is
an urgent need for our community. The properties are in Blighted Area 2 and
the houses on the two lots display physical deterioration. Our future plans
include a new development on these lots, which will take this corner from a
eyesore to a community asset.
We are asking for a grant of $50,000. We hope you'll consider this request. I'm
happy to answer any further questions you may have.
Liz Mayfield
Executive Director
Hope Harbor, Inc.
Grand Island Regular Meeting - 7/13/2022 Page 31 / 171
History of Quality Service
Hope Harbor has been serving Grand Island and the
surrounding communities since 1994.
Strong Community Support
Hope Harbor has a 15-person board of directors. Our programs
are strongly supported by community donations. We are a
United Way Partner agency and an NHAP grant recipient.
Committed Staff
Hope Harbor has 17 staff members and our shelter is staffed
24/7. We work to recruit based on our trauma-informed care
model.
WHO WE ARE
2021 STATS
326 clients
Emergency Shelter Unduplicated Clients
232 clients
Transitional Shelter Unduplicated Clients
2,847 services
Food Pantry Boxes
122 households
Received Rental Assistance
or ERA assistance
Grand Island Regular Meeting - 7/13/2022 Page 32 / 171
Stabilizing, Empowering,
Connecting
We have created programming to
stabilize families and individuals
but our vision is to take it further
with empowering & connecting.
Housing is one aspect of that
plan.
Moving People Forward
A key tenet in our
strategic plan. Aligned
with our mission, we need
to address roadblocks to
safe & affordable housing.
Our grant request reflects our
organization's strategic plan
to address housing issues as
clients gain self-sufficiency
2026 STRATEGIC PLAN
ADDRESSING COMMUNITY HOUSING
Housing Study
Study resulted in initiatives that include development of up
to 210 units for persons of extremely low, very low, and low-
income housing AND the development of housing for special
populations including supportive housing
Qualitative Data
Quantitative Data
As the housing market changes, the competition for safe and
affordable rentals becomes more competitive. Credit history,
evictions, criminal history quickly become barriers
Even though 60.5% of clients increase their income in our
program, most are still only earning an average of $692
monthly as take home pay, making the private rental market
out of reach.
Grand Island Regular Meeting - 7/13/2022 Page 33 / 171
Grant Request:
$50,000 for
Purchase of
Adjacent
Properties
To purchase the lot next to our
Service Center. Future use will
include creating affordable and
supportive housing.
Property
Details
Two properties with four dwellings
611, 605, 601 W. 1st Street & 112 S. Elm
Lots are zoned B3 Heavy Business
Located in Blighted Area 2
Dwellings will be acquired vacant
Upon acquisition, we will demo
Lots will be for future use
Grand Island Regular Meeting - 7/13/2022 Page 34 / 171
FUTURE DEVELOPMENT
Supportive
Housing
Over the next 5 - 7 years, the plan is to develop
the lots and create at least 10 housing units
that will include both supportive housing
(including case management and mental
healthcare) as well as traditional apartments.
Building
Rental History
Reduce
homelessness
recidivism
As individuals and families move from our
transitional program to their own unit, they will
develop rental history and work to improve
credit before entering the private market.
In addition to setting clients up for success, we
believe this will reduce recidivism, reducing the
number of individuals and families facing
homelessness in our community.
Thank you for your
consideration
Liz Mayfield
Executive Director
lmayfield@hopeharborgi.org
308-385-5190
Grand Island Regular Meeting - 7/13/2022 Page 35 / 171
Community Redevelopment
Authority (CRA)
Wednesday, July 13, 2022
Regular Meeting
Item I1
Redevelopment Contract and Bond Resolution for Lots 10, 11 and
12 (4157, 4161 and 4163 Montana Avenue) Paramount
Development LLC
Staff Contact:
Grand Island Regular Meeting - 7/13/2022 Page 36 / 171
Paramount Development Montana Avenue Area 36 Page 1
Paramount Development, LLC
REDEVELOPMENT CONTRACT
This Redevelopment Contract is made and entered into as of the _______day of
___________, 2022, 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 #36 April 2022" (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 Montana Avenue Area 36 Page 2
"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
Duplex Project), Series 2022, to be issued in an amount not to exceed $263,200 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.
Grand Island Regular Meeting - 7/13/2022 Page 38 / 171
Paramount Development Montana Avenue Area 36 Page 3
"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.
Grand Island Regular Meeting - 7/13/2022 Page 39 / 171
Paramount Development Montana Avenue Area 36 Page 4
(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 determining that project funding from Redeveloper’s lender will not
be provided without such funds.
(f) The Authority has determined that the costs and benefits of the Project, including
costs and benefits to other affected political subdivisions, the economy of the community,
and the demand for public and private services have been analyzed by the Authority and
Grand Island Regular Meeting - 7/13/2022 Page 40 / 171
Paramount Development Montana Avenue Area 36 Page 5
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 a blighted and substandard area and this Project is appropriate to prevent the spread of
blight and substandard conditions.
Section 2.02 Representations of Redeveloper.
The Redeveloper makes the following representations:
(a) The Redeveloper is a Nebraska limited liability company having the power to
enter into this Redevelopment Contract and perform all obligations contained herein and by
proper action has been duly authorized to execute and deliver this Redevelopment Contract.
Prior to the execution and delivery of this Redevelopment Contract, the Redeveloper has
delivered to the Authority a certificate of good standing, a certified copy of the
Redeveloper's operating agreement and a certified copy of the consent of members
authorizing the execution and delivery of this Redevelopment Contract.
(b) The execution and delivery of this Redevelopment Contract and the
consummation of the transactions herein contemplated will not conflict with or constitute a
breach of or default under any debenture, note or other evidence of indebtedness or any
contract, loan agreement or lease to which Redeveloper is a party or by which it is bound,
or result in the creation or imposition of any lien, charge or encumbrance of any nature
upon any of the property or assets of the Redeveloper contrary to the terms of any
instrument or agreement.
(c) There is no litigation pending or to the best of its knowledge threatened against
Redeveloper affecting its ability to carry out the acquisition, construction, equipping and
furnishing of the Project or the carrying into effect of this Redevelopment Contract or in
Grand Island Regular Meeting - 7/13/2022 Page 41 / 171
Paramount Development Montana Avenue Area 36 Page 6
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) 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 or the
ImagiNE Nebraska 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, 2023. 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 Montana Avenue Area 36 Page 7
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 September 1, 2022, the Authority shall issue one Tax Increment Development
Revenue Note, in one taxable series, in a maximum principal amount of $263,200, 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
Grand Island Regular Meeting - 7/13/2022 Page 43 / 171
Paramount Development Montana Avenue Area 36 Page 8
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 $263,200. 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 Duplex Project Note Fund” (the “Note
Fund”). All of the TIF Revenues shall be deposited into the Note Fund. The TIF Revenues
accumulated in the Note Fund shall be used and applied on the Business Day prior to each Interest
Payment Date (i) to make any payments to the City or the Authority as may be required under the
Redevelopment Contract and (ii) to pay principal of or interest on the Note to the extent of any money
then remaining the Note Fund on such Interest Payment Date. Money in the Note Fund shall be used
solely for the purposes described herein and in the Resolution. All Revenues received through and
including December 31, 2039 shall be used solely for the payments required herein and by the
Resolution; and
(b) a special trust fund called the “Paramount Development Duplex Project Fund” (the “Project
Fund”) The Authority shall disburse any money on deposit in the Project Fund from time to time to
pay or as reimbursement for payment made for the Project Costs in each case within 5 Business Days
after completion of the steps set forth herein and in the Resolution. If a sufficient amount to pay a
properly completed Disbursement Request (as defined in Section 4.02) is not in the Project Fund at
the time of the receipt by the Authority of such request, the Authority shall notify the owner of the
Note and such owner may deposit an amount sufficient to pay such request with the Authority for
such payment. As set forth in the Resolution, if the Redeveloper is the owner of the Note and the
Redeveloper so elects, the Authority shall make a grant to Redeveloper in the amount of an approved
Disbursement Request; in such event, the approved Disbursement Request amount shall offset
funding of the Note.
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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. 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, 2022, 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.
Section 4.02 Cost Certification & Disbursement of Note Proceeds.
Proceeds of the Note may be advanced and disbursed in the manner set forth below:
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(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 $263,200.
(d) Redeveloper shall retain copies of all supporting documents that are associated with
the redevelopment plan or redevelopment project and that are received or generated by the
Redeveloper for three years following the end of the last fiscal year in which ad valorem taxes are
divided and provide such copies to the city as needed to comply with the city’s retention
requirements under section 18-2117.04 of the Act. For purposes of this subsection, supporting
document includes any cost-benefit analysis conducted pursuant to section 18-2113 of the Act and
any invoice, receipt, claim, or contract received or generated by the redeveloper that provides
support for receipts or payments associated with the division of taxes.
Section 4.03 No Discrimination.
Redeveloper agrees and covenants for itself its successors and assigns that it will not
discriminate against any person or group of persons on account of race, sex, color, religion,
national origin, ancestry, disability, marital status or receipt of public assistance in connection with
the Project. Redeveloper, for itself and its successors and assigns, agrees that during the
construction of the Project, Redeveloper will not discriminate against any employee or applicant
for employment because of race, religion, sex, color, national origin, ancestry, disability, marital
status or receipt of public assistance. Redeveloper will comply with all applicable federal, state
and local laws related to the Project.
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Section 4.04 Assignment or Conveyance.
This Redevelopment Contract shall not be assigned by the Redeveloper without the written
consent of the Authority. Such consent shall not be unreasonably withheld. Redeveloper agrees
that it shall not convey any Lot or any portion thereof or any structures thereon to any person or
entity that would be exempt from payment of real estate taxes, and that it will not make application
for any structure, or any portion thereof, to be taxed separately from the underlying land of any
Lot.
Section 4.50 Payment of Authority Costs.
Redeveloper shall pay to the Authority the following sums upon execution hereof:
a. $4,500 for legal expenses of Authority
b. $1,000 for City and Authority administrative accounting of incremental tax payments
c. $1,100 Application fee if not already paid
ARTICLE V
FINANCING REDEVELOPMENT PROJECT; ENCUMBRANCES
Section 5.01 Financing
Redeveloper shall pay all costs related to the redevelopment of the Redevelopment Project
Area and the Redevelopment Project Property which are in excess of the amounts paid from the
proceeds of the grant provided from the proceeds of the Indebtedness and granted to Redeveloper.
Redeveloper shall timely pay all costs, expenses, fees, charges and other amounts associated with
the Project.
ARTICLE VI
DEFAULT, REMEDIES; INDEMNIFICATION
Section 6.01 General Remedies of Authority and Redeveloper.
Subject to the further provisions of this Article VI, in the event of any failure to perform or
breach of this Redevelopment Contract or any of its terms or conditions, by any party hereto or
any successor to such party, such party, or successor, shall, upon written notice from the other,
proceed immediately to commence such actions as may be reasonably designed to cure or remedy
such failure to perform or breach which cure or remedy shall be accomplished within a reasonable
time by the diligent pursuit of corrective action. In case such action is not taken, or diligently
pursued, or the failure to perform or breach shall not be cured or remedied within a reasonable
time, this Redevelopment Contract shall be in default and the aggrieved party may institute such
proceedings as may be necessary or desirable to enforce its rights under this Redevelopment
Contract, including, but not limited to, proceedings to compel specific performance by the party
failing to perform or in breach of its obligations. The Redeveloper hereby acknowledges and agrees
that the Authority shall have completed its required performances and satisfied all of its obligations
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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 September 1,
2022, or shall abandon construction work related to the Project Costs, once commenced,
for any period of 180 days, excepting delays caused by inclement weather,
(b) the Redeveloper, shall fail to pay real estate taxes or assessments on the
Redevelopment Project Property owned by the Redeveloper or any part thereof when due;
and
(c) there is a violation of any other provision of this Redevelopment Contract, and
such failure or action by the Redeveloper has not been cured within 90 days following
written notice from Authority, then the Redeveloper shall be in default of this
Redevelopment Contract.
In the event of such failure to perform, breach or default occurs and is not cured in the
period herein provided, the parties agree that the damages caused to the Authority would be
difficult to determine with certainty and that a reasonable estimation of the amount of damages
that could be incurred is the amount of the grant to Redeveloper pursuant to Section 3.04 of this
Redevelopment Contract, less any reductions in the principal amount of the Indebtedness, plus
interest on such amounts as provided herein (the "Liquidated Damages Amount"). Upon the
occurrence of an event of default, the Liquidated Damages Amount shall be paid by Redeveloper
to Authority within 30 days of demand from Authority given to the Redeveloper.
Interest shall accrue on the Liquidated Damages Amount at the rate of 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 as provided in Section 4.01.
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
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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 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
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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.
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
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411 West 3rd, Ste E
Grand Island, NE 68801
Authority and City:
Director
Grand Island Community Redevelopment Authority
Hall County Regional Planning Department
100 E 1st Street
P.O. Box 1968
Grand Island, NE 68802
IN WITNESS WHEREOF, City and Redeveloper have signed this Redevelopment Contract as of
the date and year first above written.
COMMUNITY REDEVELOPMENT
AUTHORITY OF THE CITY OF
ATTEST: GRAND ISLAND, NEBRASKA
____________________________ By:________________________
Secretary Chairman
STATE OF NEBRASKA )
) SS
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day
______________of 2022, 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, LLC
By:______________________
Manager
STATE OF NEBRASKA )
) SS
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of __________, 2022, 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: Lots Ten, Eleven and Twelve of Northwest Gateway Subdivision to the
City of Grand Island, Hall County, Nebraska.
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EXHIBIT B
REDEVELOPMENT PLAN
[Attach copy of Redevelopment Plan Amendment]
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EXHIBIT C
(FORM OF NOTE)
UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF HALL
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
TAX INCREMENT DEVELOPMENT REVENUE NOTE
(PARAMOUNT DEVELOPMENT DUPLEX PROJECT), SERIES 2022
No. R-1 Up to $263,200
(subject to reduction as described herein)
Date of Date of Rate of
Original Issue Maturity Interest
December 31, 2039 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, 2024, 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 __________2022, 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
$263,200.
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 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
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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 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.
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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.
[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]
Grand Island Regular Meeting - 7/13/2022 Page 59 / 171
Paramount Development Montana Avenue Area 36 Page 24
SCHEDULE 1
TABLE OF CUMULATIVE OUTSTANDING PRINCIPAL AMOUNT
COMMUNITY REDEVELOPMENT AUTHORITY OF
THE CITY OF GRAND ISLAND, NEBRASKA
PARAMOUNT DEVELOPMENT DUPLEX PROJECT
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2022
Date
Principal
Amount
Advanced
Principal
Amount
Redeemed
Cumulative
Outstanding
Principal
Amount
Notation
Made
By
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Paramount Development Montana Avenue Area 36 Page 25
Exhibit D
Project Costs
Redevelopment Project Costs
1.Site Acquisition $135,000
2.Sewer 10,000
3.Water 10,000
4.Electric 18,000
5.Public streets & sidewalks 28,500
6.Site prep 45,000
7.Arch/engineering 3,000
8.Legal & CRA costs 9,700
9.Other 4,000
TOTAL $263,200
Total costs subject to grant not to exceed $263,200
Grand Island Regular Meeting - 7/13/2022 Page 61 / 171
Redevelopment Plan Amendment
Grand Island CRA Area 36
April 2022
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area 36 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 36.
Executive Summary:
Project Description
THE REDEVELOPMENT OF LOTS 10, 11, AND 12 OF NORTHWEST GATEWAY
SUBDIVISION LOCATED SOUTH OF MONTANA AVENUE AND WEST OF
IDAHO AVENUE IN NORTHWEST GRAND ISLAND FOR A RESIDENTIAL
DEVELOPMENT 6 UNITS OF HOUSING IN 3 DUPLEXES.
The use of Tax Increment Financing to aid in redevelopment expenses associated with
building 3 duplexes (6 units of housing) including acquisition, fill and grading, sidewalks
and utility improvements. The use of Tax Increment Financing is an integral part of the
development plan and necessary to make this project affordable. The 2020 Housing
Study for the City of Grand Island identified a need of 1361 new rental and owner
occupied housing units by 2024.
Paramount Development will be acquiring this property from O’Neill Wood Resources
who acquired it in 2021. Changes in the cost of construction, availability of materials
have led to this application for assistance with the project. The developer is responsible
for and has provided evidence that they can secure adequate debt financing to cover the
costs associated with the construction of units. The Grand Island Community
Redevelopment Authority (CRA) intends to pledge the ad valorem taxes generated over
multiple 15 year periods beginning January 1, 2024 towards the allowable costs and
associated financing for the development of this property.
TAX INCREMENT FINANCING TO PAY FOR THE DEVELOPMENT OF THE
PROPERTY WILL COME FROM THE FOLLOWING REAL PROPERTY:
Property Description (the “Redevelopment Project Area”)
Legal Descriptions: Lots 10, 11 and 12 of Northwest Gateway Subdivision in the City
of Grand Island, Hall County, Nebraska.
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Existing Land Use and Subject Property
Grand Island Regular Meeting - 7/13/2022 Page 63 / 171
The tax increment will be captured for the tax years the payments for which become
delinquent in years 2024 through 2039 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 development of the
property for residential and commercial uses as previously described.
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 or any amendment to 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.
Grand Island Regular Meeting - 7/13/2022 Page 64 / 171
1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on January 25, 2022.[§18-2109] Such
declaration was made after a public hearing with full compliance with the public
notice requirements of §18-2115 of the Act.
2. Conformation to the General Plan for the Municipality as a whole. [§18-2103 (13)
(a) and §18-2110]
Grand Island adopted a Comprehensive Plan on July 13, 2004. This redevelopment plan
amendment and project are consistent with the Comprehensive Plan, in that no changes in
the Comprehensive Plan elements are intended. This plan merely provides funding for
the developer to rehabilitate the building for permitted uses on this property as defined by
the current and effective zoning regulations. The Hall County Regional Planning
Commission held a public hearing at their meeting on May 11, 2022 and passed
Resolution 2022-10 confirming that this project is consistent with the Comprehensive
Plan for the City of Grand Island. The Grand Island Public School District has submitted
a formal request to the Grand Island CRA to notify the District any time a TIF project
involving a housing subdivision and/or apartment complex is proposed within the
District. The school district was notified of this plan amendment prior to it being
submitted to the CRA for initial consideration.
3. The Redevelopment Plan must be sufficiently complete to address the following
items: [§18-2103(13) (b)]
a. Land Acquisition:
This Redevelopment Plan for Area 36 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority.
b. Demolition and Removal of Structures:
The project to be implemented with this plan does not provide for the demolition and
removal any structures on this property.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. All of the area
around the site in private ownership is planned for mixed use commercial development
which includes residential, commercial and office uses. The property is zoned RO
residential office and residential or office uses would be permitted. 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 - 7/13/2022 Page 65 / 171
City of Grand Island Future Land Use Map
Grand Island Regular Meeting - 7/13/2022 Page 66 / 171
d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned RO Residential Office. The future land use map calls for mixed use
commercial development across this entire site. New public streets and utilities have
been extended throughout the site and the cost of the property included payments for
those improvements. TIF revenues will offset the cost of acquisition and sitework of
those improvements. No changes are anticipated in building codes or other ordinances.
No other planning changes contemplated. [§18-2103(b) and §18-2111]
e. Site Coverage and Intensity of Use
The RO zoning district does not have a maximum residential density but does require a
6000 square foot minimum lot size. Two off street parking spaces are required for each
dwelling unit constructed. [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Sanitary sewer and water are available to support this development.
Electric utilities are sufficient for the proposed use of this property. Electric lines,
transformers, and conduit will need to be extended throughout the property.
No other publicly owned utilities would be impacted by the development. §18-2103(b)
and §18-2111]
4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation. This property is vacant and
has been vacant for more than 1 year; no relocation is contemplated or necessary.
[§18-2103.02]
5. No member of the Authority, nor any employee thereof holds any interest in any
property in this Redevelopment Project Area. [§18-2106] No members of the
authority or staff of the CRA have any interest in this property.
6. Section 18-2114 of the Act requires that the Authority consider:
a. Method and cost of acquisition and preparation for redevelopment and estimated
proceeds from disposal to redevelopers.
The purchase price of the property is $135,000 as an eligible expense. The estimated
costs of utilities including sewer, water and electric is $38,000. The cost of grading, site
prep and dirt work is $45,000. Sidewalks and drainage are estimated at $28,500. Other
costs including landscaping and financing fees are estimated at $33,000 Planning
activities including engineering, architecture, legal fees and government fees are
Grand Island Regular Meeting - 7/13/2022 Page 67 / 171
estimated at $12,700. The total of the eligible expenses for this project is estimated by
the developer at over $1,220,000.
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 $263,200 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, 2024 through December 2039.
c. Statement of feasible method of relocating displaced families.
No families will be displaced as a result of this plan.
7. Section 18-2113 of the Act requires:
Prior to recommending a redevelopment plan to the governing body for approval, an
authority shall consider whether the proposed land uses and building requirements in the
redevelopment project area are designed with the general purpose of accomplishing, in
conformance with the general plan, a coordinated, adjusted, and harmonious development
of the city and its environs which will, in accordance with present and future needs,
promote health, safety, morals, order, convenience, prosperity, and the general welfare, as
well as efficiency and economy in the process of development, including, among other
things, adequate provision for traffic, vehicular parking, the promotion of safety from
fire, panic, and other dangers, adequate provision for light and air, the promotion of the
healthful and convenient distribution of population, the provision of adequate
transportation, water, sewerage, and other public utilities, schools, parks, recreational and
community facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention of the
recurrence of insanitary or unsafe dwelling accommodations or conditions of blight.
The Authority has considered these elements in proposing this Plan. This amendment, in
and of itself will promote consistency with the Comprehensive Plan. This will have the
intended result of preventing recurring elements of unsafe buildings and blighting
conditions. This will accomplish the goal of increasing the number of residential units
within the City of Grand Island and encouraging infill development.
8. Time Frame for Development
Development of this project is anticipated to begin in the 2022 year. The duplexes should
be completed before the end of 2023. It is anticipated that the units in this development
will be fully built out in 2023 with the tax increment on those homes beginning with the
Grand Island Regular Meeting - 7/13/2022 Page 68 / 171
2024 tax year. Based on the projected valuation of this project it is estimated that the TIF
Bonds will pay off in just under 8 years.
9. Justification of Project
The 2020 housing study for the City of Grand Island projected that by 2024 we would
need an additional 1361 new housing units. There should be 902 non-age restricted units
with 518 owner occupied and with 384 rental units. There should be 459 age restricted
unit 459 with 222 as 55+ owner occupied and with 237 as 55+ rental units. Between
January 1 of 2020 and December of 2021 the city issued permits for 430 new housing
units including both restricted and unrestricted units leaving a need for 931 additional
units by 2024. The current housing market, a combination of the cost of producing
housing and the prevailing wages, has not created a situation that gives the markets
sufficient incentive to build the number housing units required to meet community needs.
This lack of housing options impacts a variety of other areas within the community
including work force development, overcrowding, and maintenance of residential units.
This project will create new housing options for all citizens and potential citizens of
Grand Island and will likely result in the sale of existing homes around the city.
10. Cost Benefit Analysis Section 18-2113 of the Act, further requires the Authority
conduct a cost benefit analysis of the plan amendment in the event that Tax Increment
Financing will be used. This analysis must address specific statutory issues.
As authorized in the Nebraska Community Development Law, §18-2147, Neb. Rev. Stat.
(2019), the City of Grand Island has analyzed the costs and benefits of the proposed
Redevelopment Project, including:
Project Sources and Uses. Approximately $263,200 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
$961,083 in private sector financing; a private investment of $3.65 for every TIF dollar
invested.
Use of Funds
Description TIF Funds Private Funds Total
Site Acquisition $135,000 $135,000
Building Costs $932,083 $932,083
Sewer $10,000 $10,000
Water $10,000 $10,000
Electric $18,000 $18,000
Public Streets/ sidewalks $28,500 $28,500
Site prep/ Dirt work $45,000 $45,000
Planning (Arch. & Eng.)$3,000 $3,000
Financing fees/ audit $0 $5,000 $5,000
Legal/ TIF contract $9,700 $9,700
Other $4,000 $24,000 $28,000
$0
Total $263,200 $961,083 $1,224,283
Source of funds
Grand Island Regular Meeting - 7/13/2022 Page 69 / 171
Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2022
valuation of approximately $22,014. Based on the 2021 levy this would result in a real
property tax of approximately $477. It is anticipated that the assessed value will increase
by $1,681,986 upon full completion, as a result of the site redevelopment. This
development will result in an estimated tax increase of over $36,472 annually. The tax
increment gained from this Redevelopment Project Area would not be available for use
as city general tax revenues, for the period of the bonds, but would be used for eligible
private redevelopment costs to enable this project to be realized.
Estimated 2022 assessed value: $ 22,014
Estimated value after completion $ 1,704,000
Increment value $ 1,681,986
Annual TIF generated (estimated) $ 36,472
TIF bond issue $ 285,500
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $22,014. The
proposed redevelopment will create additional valuation of $1,704,000 over the course of
the next year. The project creates additional valuation that will support taxing entities
long after the project is paid off along with providing 6 additional housing units. The tax
shift from this project will be equal to the total of the bond principal of $263,200 if fully
funded and any associated interest on the bond to be assigned with contract approval.
(b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
Existing water and waste water facilities will not be negatively impacted by this
development. The electric utility has sufficient capacity to support the development.
This is infill development with services connecting to existing line with capacity. This
development will result in a larger number of students in the Engleman Elementary
School service area. Fire and police protection are available and should not be negatively
impacted by this development though there will be some increased need for officers and
fire fighters as the City continues to grow whether from this project or others.
(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
This will provide additional housing options for the residents of Grand Island.
(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
Grand Island Regular Meeting - 7/13/2022 Page 70 / 171
This project will not have a negative impact on other employers different from any
other expanding business within the Grand Island area. Grand Island does have tight
labor market and part of that is due to the availability and cost of housing. This
development may help alleviate some of those pressures.
(e) Impacts on student populations of school districts within the City or Village:
This development will have an impact on the Grand Island School system and
will likely result in additional students at the elementary and secondary school
levels.
The average number of persons per household in Grand Island for 2015 to 2019
according the American Community Survey is 2.61. Six additional households would
house 16 people. According to the 2010 census 19.2% of the population of Grand Island
was over 4 years old and under 18 years old. 2020 census number for this population
cohort are not yet available but 27.6% of the 2021 population is less than 18 years of age
this is the same percentage as the under 18 age cohort in 2010. If the averages hold it
would be expected that there would be an additional 3 school age children generated by
this development. According to the National Center for Educational Statistics1 the 2019-
20 enrollment for GIPS was 10,070 students and the cost per student in 2017-18 was
$12,351 of that $4,653 is generated locally.
The Grand Island Public School System was notified on April 6, 2022 that the CRA
would be considering this application at their April 13, 2022 meeting.
(f) Any other impacts determined by the authority to be relevant to the
consideration of costs and benefits arising from the redevelopment project.
This project is consistent the goals of the 2020 Housing Study for the City of Grand
Island to create more than 1361 new housing units. Between January of 2020 and
December of 2021 the City of Grand Island has issue permits for 430 housing units. The
local housing market is not capable of producing the number of units needed at market
rate given the costs of building and development.
Time Frame for Development
Development of this project is anticipated to be completed during between Fall of 2022
and the end of 2023. The base tax year should be calculated on the value of the property
as of January 1, 2023. Excess valuation should be available for this project beginning in
2024 with taxes due in 2025. Excess valuation will be used to pay the TIF Indebtedness
issued by the CRA per the contract between the CRA and the developer for a period not
to exceed 15 years on each property or an amount not to exceed $263,200 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 $263,200 on TIF eligible activities.
1 https://nces.ed.gov/ccd/districtsearch/district_detail.asp?ID2=3100016
Grand Island Regular Meeting - 7/13/2022 Page 71 / 171
Paramount Development Montana Area 36 Page 1
COMMUNITY REDEVELOPMENT AUTHORITY OF
THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 394
A RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF A
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA, TAX INCREMENT DEVELOPMENT REVENUE NOTES
OR OTHER OBLIGATION, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO
EXCEED $263,200 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, 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 #36 Plan Amendment April 2022 (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
Grand Island Regular Meeting - 7/13/2022 Page 72 / 171
-2-
portion of the improvements (as defined in the Redevelopment Contract hereinafter identified) in the
Redevelopment Area (the “Project Costs”), including, without limitation site 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 an aggregate principal amount not to exceed $263,200 (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 Tax Increment
Development Revenue Note Series 2022 of the Authority, in an aggregate principal amount not to exceed
$263,200, 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.
“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.
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-3-
“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 1 and December 1 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;
(c) Notes alleged to have been mutilated, destroyed, lost or stolen which have been
paid as provided in Section 3.9 hereof; and
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-4-
(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, dated the date of its execution, between the Authority, and the
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 #36 April 2022” 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 funds by that name created in Section 7.1.
“State” means the State of Nebraska.
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“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 of the Authority,
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 one Note (the “Note”) in an aggregate
principal amount not to exceed $263,200. The Note shall be designated as “Community Redevelopment
Authority of the City of Grand Island, Nebraska, Paramount Development, LLC, Redevelopment Project Tax
Increment Development Revenue Note Series 2022,” 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, 2039, 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 with appropriate series designation.
(b) Proceeds of the Note may be advanced and disbursed in the manner set forth below:
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(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 in the
aggregate exceed $263,200.
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, interest
thereon shall cease on the principal amount of such Note so redeemed from and after the date of redemption
thereof.
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(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,
2039, (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.
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
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(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 the projected amount in the application filed by the Redeveloper
with the authority 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.
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
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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 his or her control:
(a) a special trust fund called the “Paramount Development, LLC Redevelopment Project Tax Increment
Redevelopment Project Note Fund” (the “Note Fund”). All of the Revenue shall be deposited into the Note
Fund. The Revenue accumulated in the Note Fund shall be used and applied on the Business Day prior to each
Payment Date (i) to make any payments to the City and Authority as may be required under the Redevelopment
Contract and (ii) to pay principal on the Note to the extent of any money then remaining the Note Fund on
such Payment Date. Money in the Note Fund shall be used solely for the purposes described in this Section
7.1 (a). All Revenues received through and including December 31, 2039, shall be used solely for the payments
required by this Section 7.1 (a); and
(b) a special trust fund called the “Paramount Development, LLC Redevelopment Project Fund” (the
“Project Fund”) The Authority shall disburse any money on deposit in the Project Fund from time to time to
pay or as reimbursement for payment made for the Project Costs in each case within 5 Business Days after
completion of the steps set forth in Section 3.2. If a sufficient amount to pay a properly completed
Disbursement Request is not in the Project Fund at the time of the receipt by the Agency of such request, the
Agency shall notify the owner of the Note and such owner may deposit an amount sufficient to pay such request
with the Agency for such payment. As set forth in Section 3.2, if the Redeveloper is the owner of the Note and
the Redeveloper so elects, the Agency shall make a grant to Redeveloper in the amount of an approved
Disbursement Request; in such event, the approved Disbursement Request amount shall offset funding of the
Note.
ARTICLE 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
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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.
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
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2022
No. R-1 Up to an aggregate amount of $263,200
Date of Date of Rate of
Original Issue Maturity Interest
December 31, 2039 0.00%
REGISTERED OWNER: The 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 1 and December 1 of each year until payment in full of such Principal Amount,
beginning June 1, 2024, by check or draft mailed to the Registered Owner hereof as shown on the note
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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
______________, 2022, 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 $263,200.
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 #36 April 2022, (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.
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
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“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,
do exist and have been performed in regular and due time, form and manner; that this Note does not exceed
any constitutional, statutory or charter limitation on indebtedness; and that provision has been made for the
payment of the principal of and interest on this Note as provided in this Resolution.
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(FORM OF ASSIGNMENT)
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
___________________________________________________________________________
Print or Type Name, Address and Social Security Number
or other Taxpayer Identification Number of Transferee
the within note and all rights thereunder, and hereby irrevocably constitutes and appoints _______________
agent to transfer the within Note on the note register kept by the Registrar for the registration thereof, with
full power of substitution in the premises.
Dated: _______________ _______________________________________
NOTICE: The signature to this Assignment must
correspond with the name of the Registered
Owner as it appears upon the face of the within
note in every particular.
Signature Guaranteed By:
_______________________________________
Name of Eligible Guarantor Institution as defined
by SEC Rule 17 Ad-15 (17 CFR 240.17 Ad-15)
By: ________________________________
Title: ________________________________
[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
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2022
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 be paid to the Nebraska State Treasurer 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.
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
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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 of Nebraska. All suits and actions arising out of this
Resolution shall be instituted in a court of competent jurisdiction in the State of Nebraska except to the extent
necessary for enforcement, by any trustee or receiver appointed by or pursuant to the provisions of this
Resolution, or remedies under this Resolution.
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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: ______________________, 2022.
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, July 13, 2022
Regular Meeting
Item I2
Redevelopment Contract and Bond Resolution Plan Amendment
CRA Area 6 - Trinity Heights Subdivision
Staff Contact:
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1
REDEVELOPMENT CONTRACT
This Redevelopment Contract is made and entered into as of the _______day of
___________, 2022, by and between the Community Redevelopment Authority of the City of
Grand Island, Nebraska ("Authority"), and Mesner Development Co., a Nebraska corporation
("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 18-2155, Reissue Revised Statutes of Nebraska,
2012, as amended (collectively the "Act"), has designated an area within the City as blighted and
substandard;
WHEREAS, the Mayor and Council of the City, after public hearing pursuant to the Act,
approved that redevelopment plan entitled "Redevelopment Plan Amendment Grand Island CRA
Area 6, June 2014, Amended November 2021" (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;
WHEREAS, the proposed redevelopment project provides for the platting of a residential
subdivision and installation of public infrastructure and the construction of 32 single family
attached townhome residences and 24 rental single attached single family residences in tri-plex
configuration. The rental units will be subject to qualifying for credit under Section 42 of the
Internal Revenue Code (I.R.C.) and the regulations promulgated thereunder. It is anticipated that
the development will occur in up to seven (7) annual phases.
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:
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2
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 18-2155, Reissue Revised Statutes of Nebraska, 2012, as amended, and acts amendatory
thereof and supplemental thereto.
"Authority" means the Community Redevelopment Authority of the City of Grand Island,
Nebraska.
"City" means the City of Grand Island, Nebraska.
"Governing Body" means the Mayor and City Council of the City.
"Holder(s)" means the registered owner or owners of Indebtedness issued by the Authority
from time to time outstanding.
"Indebtedness" means any bonds, 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 (Mesner
Development Project), Series 2022, (the “TIF Note”) to be issued in an amount not to exceed
$1,767,409 in substantially the form set forth on Exhibit C and the various Redevelopment Contract
Amendments, 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.
"Lot" or "Lots" shall mean the separately platted and subdivided lots within the
Redevelopment Project Area established pursuant to an approved and filed subdivision plat in
accordance with the ordinances and regulations of the City.
"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. The
Project shall include Project site acquisition costs and all improvements related to Project public
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3
infrastructure costs, site preparation costs, all as described in Section 3.04 of this Redevelopment
Contract.
"Project Cost Certification" means a statement prepared and signed by the Redeveloper
verifying the Redeveloper has paid Project Costs identified on Exhibit D.
"Project Costs" means only costs or expenses incurred by Redeveloper for the purposes
set forth in Section l8-2103(28) including the providing for such costs by the exercise of the
powers set forth in Section 18-2107(4) of the Act, all as identified on Exhibit D.
"Redeveloper" means Mesner Development Co., a Nebraska corporation.
"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. The Redevelopment Project Area is also described on
Exhibit B. All such legal descriptions are subject to change based upon any re-platting requested
by the Redeveloper and approved by the City.
"Redevelopment Project Property" means all of the Redevelopment Project Area which is
the site for the improvements constituting the Project, as more particularly described on Exhibit
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, as the same may be amended from time to time,
including, without limitation, by Redevelopment Contract Amendments executed from time to
time in connection with the separate Residential Phases of the Project.
"Redevelopment Contract Amendment" shall mean an amendment to this Redevelopment
Contract, for the purpose of establishing the effective date for the division of ad valorem taxes
pursuant to Section 18-2147 of the Act as to each Residential Phase, as defined in Section 3.01
hereof, of lots in the Redevelopment Project Area. The form of the Redevelopment Contract
Amendment is attached hereto as Exhibit F.
"Redevelopment Plan" means the Redevelopment Plan (also defined in the recitals
hereto) for the Redevelopment Project Area related to the Project, as attached hereto as
Exhibit B, prepared by the Redeveloper, 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.
“Tax Credit Project” means the portion of Project encompassing the 24 single family tri-
plex rental units qualifying for credit under Section 42 I.R.C. and the regulations promulgated
thereunder.
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"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.
(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 as
amended by the Authority pursuant to Sections 18-2109 through 18-2117 of the Act.
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(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 upon investigation by the Authority and on representations made
by the Redeveloper and its Lender:
(i) the Project would not be economically feasible without the use of
tax-increment financing (funds provided pursuant to Section 18-2147 of the
Act), and
(ii) the Project would not occur in the Redevelopment Project Area
without the use of tax-increment financing.
(iii) the Authority has documented the financial infeasibility as a lack
of adequate return on capital to induce investment in the Project as the
Redeveloper is unable to provide affordable housing at a restricted price
point without the assistance provided under this Redevelopment Contract
for the 32 townhome residences. The Tax Credit portion of the project will
not cash flow without the use of funds provided by Section 18-2147 of the
Act.
(f) The Authority has determined that the costs and benefits of the Project,
including costs and benefits to other affected political subdivisions (and documented the
same as part of the cost benefit analysis contained in the Redevelopment Plan), the
economy of the community, and the demand for public and private services have been
analyzed by the Authority and have been found to be in the long-term best interest of the
community impacted by the Project.
(g) The Authority has determined that the proposed land uses and building
requirements in the Redevelopment Area are designed with the general purpose of
accomplishing, in conformance with the general plan, a coordinated, adjusted, and
harmonious development of the City and its environs which will, in accordance with
present and future needs, promote health, safety, morals, order, convenience, prosperity,
and the general welfare, as well as efficiency and economy in the process of development:
including, among other things, adequate provision for traffic, vehicular parking, the
promotion of safety from fire, panic, and other dangers, adequate provision for light and
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air, the promotion of the healthful and convenient distribution of population, the provision
of adequate transportation, water, sewerage and other public utilities, schools, parks,
recreational and community facilities, and other public requirements, the promotion of
sound design and arrangement, the wise and efficient expenditure of public funds, and the
prevention of the recurrence of insanitary or unsafe dwelling accommodations, or
conditions of blight.
Section 2.02 Representations of Redeveloper.
The Redeveloper makes the following representations:
(a) The Redeveloper is a Nebraska corporation, authorized to do business in the
state of Nebraska, 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, organizational documents
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 bond, debenture, note or other evidence of indebtedness
or any contract, loan agreement or lease to which Redeveloper is a party or by which it is
bound, or result in the creation or imposition of any lien, charge or encumbrance of any
nature upon any of the property or assets of the Redeveloper contrary to the terms of any
instrument or agreement.
(c) There is no litigation pending or to the best of its knowledge threatened
against Redeveloper affecting its ability to carry out the acquisition, construction,
equipping and furnishing of the Project or the carrying into effect of this Redevelopment
Contract or in any other matter materially affecting the ability to Redeveloper to perform
its obligations hereunder.
(d) The Project would not be economically feasible without the use of tax
increment financing.
(e) The Project would not occur in the Redevelopment Project Area without the
use of tax-increment financing.
(f) The Redeveloper certifies that it has not and will not apply for (i) tax
incentives under the Nebraska Advantage Act or the ImagiNe Act for a project located or
to be located within the redevelopment project area; (ii) a refund of the city’s local option
sales tax revenue; and (iii) no application has been made or approved under the Nebraska
Advantage Act or the ImagiNe Act.
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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 identified from time to time by the Redeveloper (such Lot or Lots
being referred to herein as a "Phase") as identified in a Redevelopment Contract Amendment
executed on behalf of the Redeveloper and delivered to the Authority in the form attached hereto
as Exhibit E (each, a "Redevelopment Contract Amendment") 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 of the Act (which Effective date shall be the January 1 of the year
in which the division of taxes occurs which shall be the Division Date as described in Exhibit E)
of this provision as set forth in a Redevelopment Contract Amendment, consistent with the
Redevelopment Plan. Said taxes shall be divided as follows:
(a) That portion of the ad valorem tax on real property in each Phase 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 Lots within such Phase
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 each Phase 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.
Provided a Redevelopment Contract Amendment in form attached hereto as Exhibit E and
signed by the Redeveloper, and a proposed form of “Notice to Divide Tax for Community
Redevelopment Project”, all prepared in accordance with this Redevelopment Contract and the
Act) is delivered to the Authority no later than July 1 of any year, the Authority shall: (a) execute
the Redevelopment Contract Amendment, and (b) file before August 1 of such year a "Notice to
Divide Tax for Community Redevelopment Project" for such Phase with the office of the Hall
County Treasurer and Hall County Assessor, without requirement of additional hearings or
public notice.
No Redevelopment Contract Amendment providing for the division of taxes pursuant to
this Redevelopment Contract and Section 18-2147 of the Act shall be made after July 1, 2029.
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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 December 1, 2022, the Authority shall issue one Tax Increment Revenue Note, in
one taxable series, in a maximum principal amount of $1,767,409, 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 the Authority’s attorney,
and receive Note proceeds from the TIF Note Purchaser in said amount. At the option of the
Redeveloper, 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.
In accordance with the terms of the Redevelopment Plan the Redeveloper is to receive one or
more grants to pay the costs for reimbursement of site acquisition, including easements, site
preparation costs, public infrastructure costs and utilities including those items as described on
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Exhibit D (the "Project Costs"), in the aggregate maximum amount not to exceed $1,767,409.
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 grants shall be made to the Redeveloper upon certification of Project Costs for 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 “Mesner Redevelopment Project Note Fund” (the “Note
Fund”). All of the TIF Revenues shall be deposited into the Note Fund. The TIF Revenues
accumulated in the Note Fund shall be used and applied on the Business Day prior to each Interest
Payment Date (i) to make any payments to the City or the Authority as may be required under the
Redevelopment Contract and (ii) to pay principal of or interest on the Note to the extent of any
money then remaining the Note Fund on such Interest Payment Date. Money in the Note Fund shall
be used solely for the purposes described herein and in the Resolution. All Revenues received
through and including December 31, 2045 shall be used solely for the payments required herein and
by the Resolution; and
(b) a special trust fund called the “Mesner Redevelopment Project Fund” (the “Project Fund”)
The Authority shall disburse any money on deposit in the Project Fund from time to time to pay or
as reimbursement for payment made for the Project Costs in each case within 5 Business Days after
completion of the steps set forth herein and in the Resolution. If a sufficient amount to pay a
properly completed Disbursement Request (as defined in Section 4.02) is not in the Project Fund at
the time of the receipt by the Authority of such request, the Authority shall notify the owner of the
Note and such owner may deposit an amount sufficient to pay such request with the Authority for
such payment. As set forth in the Resolution, if the Redeveloper is the owner of the Note and the
Redeveloper so elects, the Authority shall make a grant to Redeveloper in the amount of an
approved Disbursement Request; in such event, the approved Disbursement Request amount shall
offset funding of the Note.
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ARTICLE IV
OBLIGATIONS OF REDEVELOPER
Section 4.01 Construction of Project; Bond; Insurance.
(a) Redeveloper will acquire the Project and prepare the site for redevelopment.
Redeveloper will coordinate with the City for the City’s design and construction required for the
installation of all public infrastructure improvements, including a water system, a sanitary sewer
system, and a street system consisting of concrete paved streets and required storm sewers. The
Redeveloper shall provide and pay for infrastructure installation.Prior to commencement of
construction, Redeveloper shall provide City and Authority with a separate payment and
performance bond in an amount equal to the total of all bids for infrastructure. The payment and
performance bond shall be by a surety acceptable to City and Authority.
Redeveloper will also complete other public infrastructure improvements.
Redeveloper shall pay for the costs of the above public infrastructure from the grant(s)
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 for all phases of construction, both
Infrastructure Phases and Residential Phases, policies of insurance including coverage for
contractors' general liability and completed operations and a penal bond or bonds 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 September 30,
2022, or the Authority is unable to obtain a release of the division of taxes under Section 18-
2147 of the Act as to the Redevelopment Project Area that is currently in place, then this
Redevelopment Contract shall be null and void and of no force or effect effective as of the date
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of execution hereof, and neither party shall have any liability or obligation to the other party with
respect hereto.
Section 4.02 Cost Certification & Disbursement of Note Proceeds.
Proceeds of the Indebtedness 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 City’s Finance Director and an authorized representative
of the Redeveloper, (i) certifying that a portion of the Project constituting and Infrastructure Phase
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 $1,767,409.
Section 4.03 No Discrimination.
Redeveloper agrees and covenants for itself its successors and assigns that it will not
discriminate against any person or group of persons on account of race, sex, color, religion,
national origin, ancestry, disability, marital status or receipt of public assistance in connection
with the Project. Redeveloper, for itself and its successors and assigns, agrees that during the
construction of the Project, Redeveloper will not discriminate against any employee or applicant
for employment because of race, religion, sex, color, national origin, ancestry, disability, marital
status or receipt of public assistance. Redeveloper will comply with all applicable federal, state
and local laws related to the Project.
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Section 4.04 Assignment or Conveyance.
This Redevelopment Contract shall not be assigned by the Redeveloper without the
written consent of the Authority. Such consent shall not be unreasonably withheld. Redeveloper
agrees that it shall not convey any Lot or any portion thereof or any structures thereon to any
person or entity that would be exempt from payment of real estate taxes, and that it will not make
application for any structure, or any portion thereof, to be taxed separately from the underlying
land of any Lot. The parties acknowledge that the Tax Credit Project is subject to reduced
assessed valuation based on reduced rental income. Such reduced valuation is not a violation of
this paragraph.
Section 4.05 Subdivision, Construction and Marketing Requirements.
The Redeveloper shall:
(a) subdivide the Redevelopment Project Area serviced by the infrastructure for the
subdivision;
(b) construct single family attached residences on the lots in the subdivision (described
above) as provided in the Redevelopment Plan; and
(c) 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. 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 4.06 Payment of Costs.
The Redeveloper shall pay to the Authority or its designee the following sums on the execution
hereof:
$3,000 for administrative and accounting costs.
$4,500 for legal fees.
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ARTICLE V
FINANCING REDEVELOPMENT PROJECT; ENCUMBRANCES
Section 5.01 Financing
Redeveloper shall pay all costs related to the redevelopment of the Redevelopment Project
Area and the Redevelopment Project Property which are in excess of the amounts paid from the
proceeds of the grant provided from the proceeds of the Indebtedness and granted to
Redeveloper. Redeveloper shall timely pay all costs, expenses, fees, charges and other amounts
associated with the Project.
ARTICLE VI
DEFAULT, REMEDIES; INDEMNIFICATION
Section 6.01 General Remedies of Authority and Redeveloper.
Subject to the further provisions of this Article VI, in the event of any failure to perform
or breach of this Redevelopment Contract or any of its terms or conditions, by any party hereto
or any successor to such party, such party, or successor, shall, upon written notice from the other,
proceed immediately to commence such actions as may be reasonably designed to cure or
remedy such failure to perform or breach which cure or remedy shall be accomplished within a
reasonable time by the diligent pursuit of corrective action. In case such action is not taken, or
diligently pursued, or the failure to perform or breach shall not be cured or remedied within a
reasonable time, this Redevelopment Contract shall be in default and the aggrieved party may
institute such proceedings as may be necessary or desirable to enforce its rights under this
Redevelopment Contract, including, but not limited to, proceedings to compel specific
performance by the party failing to perform or in breach of its obligations. The Redeveloper
hereby acknowledges and agrees that the Authority shall have completed its required
performances and satisfied all of its obligations under this Redevelopment Contract upon the
issuance of the Indebtedness and the subsequent payment of grant amounts to the Redeveloper as
set forth in Article III hereof and by complying with the obligations of all Redevelopment
Contract Amendments.
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 infrastructure improvements included in the Project Costs on or before
May 1, 2023, or shall abandon construction work related to the Project Costs, once
commenced, for any period of 180 days, excepting delays caused by inclement weather,
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(b) the Redeveloper, shall fail to pay real estate taxes or assessments on the
Redevelopment Project Property owned by the Redeveloper or any part thereof when due;
and
(c) there is a violation of any other provision of this Redevelopment Contract,
and such failure or action by the Redeveloper has not been cured within 90 days following
written notice from Authority, then the Redeveloper shall be in default of this
Redevelopment Contract.
In the event of such failure to perform, breach or default occurs and is not cured in the
period herein provided, the parties agree that the damages caused to the Authority would be
difficult to determine with certainty and that a reasonable estimation of the amount of damages
that could be incurred is the amount of the grant to Redeveloper pursuant to Section 3.04 of this
Redevelopment Contract, less any reductions in the principal amount of the Indebtedness, plus
interest on such amounts as provided herein (the "Liquidated Damages Amount"). Upon the
occurrence of an event of default, the Liquidated Damages Amount shall be paid by Redeveloper
to Authority within 30 days of demand from Authority given to the Redeveloper.
Interest shall accrue on the Liquidated Damages Amount at the rate of 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
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Redevelopment Contract or by applicable law; provided, however, that any defaults covered by
this Section shall not give rise to a right or rescission on termination of this Redevelopment
Contract, and shall not be covered by the Liquidated Damages Amount.
Section 6.04 Forced Delay Beyond Party's Control.
For the purposes of any of the provisions of this Redevelopment Contract, neither the
Authority nor the Redeveloper, as the case may be, nor any successor in interest, shall be
considered in breach of or default in its obligations with respect to the conveyance or preparation
of the Redevelopment Area or any part thereof for redevelopment, or the beginning and
completion of construction of the Project, or progress in respect thereto, in the event of forced
delay in the performance of such obligations due to unforeseeable causes beyond its control and
without its fault or negligence, including, but not restricted to, acts of God, or of the public
enemy, acts of the Government, acts of the other party, fires, floods, epidemics, quarantine
restrictions, strikes, freight embargoes, and unusually severe weather or delays in subcontractors
due to such causes; it being the purpose and intent of this provision that in the event of the
occurrence of any such forced delay, the time or times for performance of the obligations of the
Authority or of the Redeveloper with respect to construction of the Project, as the case may be,
shall be extended for the period of the forced delay: Provided, that the party seeking the benefit
of the provisions of this Section shall, within thirty (30) days after the beginning of any such
forced delay, have first notified the other party thereto in writing, and of the cause or causes
thereof and requested an extension for the period of the forced delay.
Section 6.05 Limitations of Liability; Indemnification.
Notwithstanding anything in this Article VI or this Redevelopment Contract to the
contrary, neither the City, the Authority, nor their respective elected officials, officers, directors,
appointed officials, employees, 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, agents, employees and
members of their governing bodies free and harmless from any loss, claim, damage, demand, tax,
penalty, liability, disbursement, expense, excluding litigation expenses, attorneys' fees and
expenses, or court costs arising out of any damage or injury, actual or claimed, of whatsoever
kind or character, to property (including loss of use thereof) or persons, occurring or allegedly
occurring in, on or about that portion of the Project owned by the Redeveloper, during the term
of this Redevelopment Contract or arising out of any action or inaction of Redeveloper, related to
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activities of the Redeveloper or its agents during the construction of the public infrastructure or
public right of ways in the Project.
ARTICLE VII
MISCELLANEOUS
Section 7.01 Notice Recording
This Redevelopment Contract or a notice memorandum of this Redevelopment Contract
may be recorded in the office of the Register of Deeds of Hall County, Nebraska.
Section 7.02 Governing Law.
This Redevelopment Contract shall be governed by the laws of the State of Nebraska,
including but not limited to the Act.
Section 7.03 Binding Effect: Amendment, Assignment.
This Redevelopment Contract shall be binding on the parties hereto and their respective
successors and assigns. The Redevelopment Contract shall not be amended except by a writing
signed by the party to be bound. The Redeveloper may assign its rights and obligations to a
controlled entity which shall be bound by all the terms hereof.
Section 7.04 Effective Date and Implementation of Redevelopment Contract.
This Agreement is in full force and effect from and after the date of execution hereof by
both the Redeveloper and the Authority.
Section 7.04 Notices to Parties.
Notices to Parties shall be mailed by U. S. Mail to the following addresses:
Redeveloper:
Mesner Development Co.
P.O. Box 335
Central City, NE 68826
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, Authority 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 __________,
2022, 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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MESNER DEVELOPMENT CO.
By:______________________
President
STATE OF NEBRASKA)
) SS
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of _____, 2022, by
_______________________, President of Mesner Development Co., on behalf of the
corporation.
________________________
Notary Public
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EXHIBIT A
DESCRIPTION OF REDEVELOPMENT AREA
Lot 2 of Skag-Way Fourth Subdivision and Lots 1 and 2 of Nattrass Subdivision and Lot 9 of
Home Subdivision, all in the city of Grand Island, Hall County, Nebraska, to be further
subdivided.
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EXHIBIT B
REDEVELOPMENT PLAN
[Attach copy of Redevelopment Plan]
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21
EXHIBIT C
(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.
UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF HALL
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
MESNER DEVELOPMENT CO., REDEVELOPMENT PROJECT
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2022
No. R-1
Up to an aggregate amount of $1,767,409
(subject to reduction as described herein)
Date of Date of Rate of
Original Issue Maturity Interest
December 31, 2049 5.00%
REGISTERED OWNER: The Mesner Development Co.
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
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22
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 1 and December 1 of each year until payment in full of such Principal Amount, beginning
June 1, 2024, 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 18-2155, inclusive, Reissue Revised Statutes of
Nebraska, as amended, and under and pursuant to Resolution No. ________ duly passed and
adopted by the Authority on ______________, 2022, as from time to time amended and
supplemented (the “Resolution”).
THE PRINCIPAL AMOUNT OF THIS NOTE IS SET FORTH IN SCHEDULE 1
ATTACHED HERETO. THE MAXIMUM PRINCIPAL AMOUNT OF THIS NOTE IS
$1,767,409.
This Note has been issued by the Authority for the purpose of financing the costs of
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23
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 Redevelopment Plan Amendment Grand Island
CRA Area 6, June 2014, Amended November 2021, (Mesner Development Co. 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.
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
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24
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
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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.
[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
MESNER DEVELOPMENT CO., REDEVELOPMENT PROJECT
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2022
Date
Principal
Amount
Advanced
Principal
Amount
Redeemed
Cumulative
Outstanding
Principal
Amount
Notation
Made
By
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Exhibit D
Project Costs
Eligible Costs to be reimbursed from Tax Increment Revenue Note
1. Site Acquisition $ 484,000
2. Engineering $ 80,000
3. Sanitary sewer $ 361,176
4. Electric $ 72,000
5. Street Paving & sidewalks $ 488,378
6. Site prep $ 179,000
7. Contingency, CRA costs & legal $ 102,855
Total $1,767,409
Costs may vary between categories. A shift of costs per category is contemplated and approved
not to exceed the total.
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EXHIBIT E
AMENDMENT TO REDEVELOPMENT CONTRACT
Amendment No. ____
This Amendment to Redevelopment Contract (this "Amendment") is made and entered
into as of the _______day of ___________, 20___, by and between the Community
Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), and Mesner
Development Co., a Nebraska corporation ("Redeveloper").
RECITALS
WHEREAS, Authority and Redeveloper entered into a Redevelopment Contract, dated as
of ______________, 2022 (the "Contract");
WHEREAS, the Contract intended to implement the redevelopment plan entitled
“Redevelopment Plan Amendment Grand Island CRA Area 6, June 2014 Amended November
2021”, (the “Redevelopment Plan”) to provide for the redevelopment of lots and lands located in
a blighted and substandard area of the City of Grand Island, Nebraska (the “City”);
WHEREAS, in order to assist in the financing of the Redevelopment Project described in
the Redevelopment Plan, the Contract provides for periodic amendments thereto; and
WHEREAS, pursuant to Section 3.01 of the Contract the parties desire to amend the
Contract on the terms set forth herein and this Amendment shall constitute a "Redevelopment
Contract Amendment" as defined in the Contract.
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein
set forth, Authority and Redeveloper do hereby agree to amend the Contract as follows:
1. Definitions. All capitalized terms used in this Amendment and not otherwise
defined herein shall have the meanings ascribed to such terms in the Contract.
2. Amendment – New Phase. This Amendment incorporates a new Phase to the
Project entitled [Phase No. ____].
(a) Lots. This new Phase shall include all of Lots in the Redevelopment
Project Area for which a building permit has been issued by the City during the calendar
year prior to the Effective Date described in Section 2 (b) hereof, which lots are described
as follows:
[identification of such Lot(s) including the legal description of each]
(b) Effective Date. The effective date of the Amendment shall be January 1,
20___. [The effective date shall be the January 1st of the year following the issuance of a
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building permit for a residence to be constructed on a Lot described in Section 2 (a)
hereof.]
(c) Division Date. The Division Date (the “Division Date”) shall mean the
effective date for purposes of dividing taxes pursuant to Section 18-2147 of the Nebraska
Community Development Law. The Division Date for the applicable Phase shall be
January 1, 20___; and a proposed form of the "Notice to Divide Tax for Community
Redevelopment Project" applicable to such Phase is attached hereto as Exhibit A and
incorporated herein by this reference. [The Division Date shall be the January 1st of the
year following the issuance of a building permit for a residence to be constructed on a Lot
described in Section 2 (a) hereof.] For purposes of the Notice to Divide Tax for
Community Redevelopment Project, the calendar year in which the division of real
property tax becomes effective shall be the year of the Division Date.
(d) Base Value Year. The base value year for such Phase shall be 20___.
[The Base Value Year, shall mean the calendar year prior to the Division Date described
in Section 2 (c) hereof.] For purposes of the Notice to Divide Tax for Community
Redevelopment Project, the Base value Year shall be the year defined in this Section 2
(d).
3. Requirement to File Notice to Divide Tax for Community Redevelopment
Project. The Authority shall execute and file with the Hall County Assessor and Treasurer a
signed original of Exhibit A, attached hereto, being the Notice to Divide Tax for Community
Redevelopment Project, prior to August 1, 20__. [This date shall be the August 1 following the
Division Date described in Section 2 (c) hereof.]
4. Miscellaneous Provisions.
(a) Effectiveness. This Amendment shall become effective when and only
when counterparts of this Amendment have been duly executed by both Authority and
Redeveloper.
(b) Ratification of Contract. Except as amended by this Amendment, the
Contract shall remain in full force and effect and is hereby ratified and confirmed in all
respects. Each party acknowledges and agrees to all terms of the Contract, as the same
are amended by this Amendment, and makes and restates each representation and
warranty set forth therein as if made on the date of this Amendment.
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IN WITNESS WHEREOF, Authority and Redeveloper have signed this Amendment to
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
MESNER DEVELOPMENT CO.
By:______________________
President
STATE OF NEBRASKA )
) SS
COUNTY OF HALL )
The foregoing instrument was acknowledged before me this ______ day of
___________, 20___ by ________________ and ________________, Chairman and Secretary,
respectively, of the Community Redevelopment Authority of the City of Grand Island, Nebraska,
on behalf of the Authority.
____________________________
Notary Public
STATE OF NEBRASKA)
) SS
COUNTY OF HALL)
The foregoing instrument was acknowledged before me this _____ day of ___________,
20___, by __________________ President of Mesner Development Co. on behalf of the
corporation.
________________________
Notary Public
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EXHIBIT A
Notice to Divide Tax for Community Redevelopment Project
[TO BE ATTACHED]
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Redevelopment Plan Amendment
Grand Island CRA Area 6
June 2014 Amended November 2021
The Community Redevelopment Authority (CRA) of the City of Grand Island
intends to amend the Redevelopment Plan for Area 6 within the city, pursuant to
the Nebraska Community Development Law (the “Act”) and provide for the
financing of a specific redevelopment projects in Area 6.
Executive Summary:
Project Description
THE ACQUISITION OF PROPERTY AT FIVE POINTS EAST OF BROADWELL
AVENUE AND NORTH OF STATE STREET BY THE DEVELOPER AND
SUBSEQUENT SITE PREPARATION, DEMOLITION, UTILITY IMPROVEMENTS,
LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY FOR BUILDING
A NEW GROCERY STORE, RESIDENTIAL DEVELOPMENT INCLUDING UP TO
70 TOWNHOUSES IN 2 AND 3 UNIT CONFIGURATIONS AT THE LOCATION
IDENTIFIED.
The use of Tax Increment Financing (“TIF”) to aid in the acquisition of property,
demolition of existing structures, necessary site work and installation of public utilities
and street improvements necessary to redevelop this site. The use of TIF makes it feasible
to complete all of the phases of the proposed project within the timeline presented. This
project could not be completed without the use of TIF.
The acquisition, site work and construction of all improvements will be paid for by the
developer. The developer is responsible for and has provided evidence that they can
secure adequate debt financing to cover the costs associated with the acquisition, site
work and remodeling. The Grand Island Community Redevelopment Authority (CRA)
intends to pledge the ad valorem taxes generated over the 15 year period beginning
January 1, 2016 towards the allowable costs and associated financing for the acquisition
and site work for the development of the grocery store. The CRA intends to pledge the
ad valorem taxes generated up to 15 years for each of the proposed townhomes on the
expanded site.
TAX INCREMENT FINANCING TO PAY FOR THE ACQUISTION OF THE
PROPERTY AND RELATED SITE WORK WILL COME FROM THE
FOLLOWING REAL PROPERTY:
Property Description (the “Redevelopment Project Area”)
This property is located at the northeast corner of Broadwell Avenue and State Street in
northeast Grand Island including the attached map identifies the subject property and the
surrounding land uses:
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Legal Descriptions Grocery Store on Lot 1 of Skag-Way Fourth
Subdivision, Townhomes to be developed on Lot 2 of Skag-Way Fourth
Subdivision, Lots 1 and 2 of Nattrass Subdivsion and Lot 9 of Home Subdivision
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Original Redevelopment Plan Area
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Existing Land Use Map as Amended November 2021
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The tax increment will be captured for the tax years the payments for which become
delinquent in years 2017 through 2030 inclusive on the grocery store. It is
anticipated that the increment on the townhouses will be capture over a period not
to exceed 20 years with no portion extending over 15 years beginning in 2023.
The real property ad valorem taxes on the current valuation will continue to be paid
to the normal taxing entities. The increase will come from the construction of new
commercial space on this property.
Statutory Pledge of Taxes.
Pursuant to Section 18-2147 of the Act, any ad valorem tax levied upon real property in
the Redevelopment Project Area shall be divided, for the period not to exceed 15 years
after the effective date of the provision, which effective date shall be January 1, 2016 for
the grocery store and as determined by the contract for the townhouses.
a. That portion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the redevelopment project valuation shall
be paid into the funds, of each such public body in the same proportion as all other taxes
collected by or for the bodies; and
b. That portion of the ad valorem tax on real property in the
redevelopment project in excess of such amount, if any, shall be allocated to and, when
collected, paid into a special fund of the Authority to pay the principal of; the interest on,
and any premiums due in connection with the bonds, loans, notes, or advances on money
to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise,such
Authority for financing or refinancing, in whole or in part, a redevelopment project.
When such bonds, loans, notes, advances of money, or indebtedness including interest
and premium due have been paid, the Authority shall so notify the County Assessor and
County Treasurer and all ad valorem taxes upon real property in such redevelopment
project shall be paid into the funds of the respective public bodies.
Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged
to the repayment of loans or advances of money, or the incurring of any indebtedness,
whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in
whole or in part, the redevelopment project, including the payment of the principal of,
premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness.
Redevelopment Plan Amendment Complies with the Act:
The Community Development Law requires that a Redevelopment Plan and Project
consider and comply with a number of requirements. This Plan Amendment meets the
statutory qualifications as set forth below.
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1. The Redevelopment Project Area has been declared blighted and substandard by
action of the Grand Island City Council on October 9, 2007.[§18-2109] Such
declaration was made after a public hearing with full compliance with the public
notice requirements of §18-2115 of the Act.
2. Conformation to the General Plan for the Municipality as a whole. [§18-2103 (13)
(a) and §18-2110]
Grand Island adopted a Comprehensive Plan on July 13, 2004. This redevelopment
plan amendment and project are consistent with the Comprehensive Plan, in that no
changes in the Comprehensive Plan elements are intended. This plan merely provides
funding for the developer to acquire the necessary property and provide the necessary
site work for the construction of a permitted use on this property. The Hall County
Regional Planning Commission held a public hearing at their meeting on December 1,
2021 and passed Resolution 2022-3 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 6 provides for real property acquisition and this plan
amendment does not prohibit such acquisition. There is no proposed acquisition by the
authority. The applicant will be acquiring the property from the current owner.
b. Demolition and Removal of Structures:
The project to be implemented with this plan does intend several structures along on the
subject property to be removed or demolished. The structures to be demolished are all
non-residential in nature and use. No additional structures will need to be demolished for
the development of the townhouses.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. The site is
planned for commercial development. [§18-2103(b) and §18-2111] The attached map
also is an accurate site plan of the area after redevelopment. [§18-2111(5)]
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City of Grand Island Future Land Use Map from Original Plan
Grand Island Regular Meeting - 7/13/2022 Page 135 / 171
City of Grand Island Future Land Use Map for Amended Area
d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
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The area is zoned B2- General Business zone, R2 Low Density Residential and R3
Medium Density Residential. The property identified for the townhouse development
will likely be changed to an R3 Medium Density Residential District or R3-SL Medium
Density Small Lot District and a street will be extended through the development
between State Street and Wheeler Avenue. No changes are anticipated in building codes
or ordinances. Nor are any other planning changes contemplated. [§18-2103(b) and §18-
2111]
e. Site Coverage and Intensity of Use
The developer is proposing remove all of the structures on the subject property in two
phases. The buildings on Lot 3 of Skag-Way Subdivision will be demolished and a new
grocery store will be constructed at that location, fuel pumps will be added near
Broadwell Avenue and after the construction of the new store the old store will be
demolished and the site will be prepared for additional retail and restaurant space to be
constructed at a time when the market allows for said construction. The property is zoned
B2 and could accommodate a building of up to 100% of the property. The area east of the
grocery store identified for townhouse development in this plan would be rezoned to
accommodate the development of the townhomes. An R3 or R3-SL zoning district would
allow up to 50% of each lot to be developed with buildings. [§18-2103(b) and §18-2111]
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. Water mains will have to be
extended throughout the site to support the configuration of the proposed development.
New water and sewer services may be required for this building. Water mains and sewer
mains will need to be extended for the townhouse development. Electric service will also
need to be extended through the area.
The developer will be responsible for replacing any sidewalks damaged during
construction of the project.
No other utilities would be impacted by the development. [§18-2103(b) and §18-2111]
4. The Act requires a Redevelopment Plan provide for relocation of individuals and
families displaced as a result of plan implementation. This amendment does not
provide for acquisition of any residences and therefore, no relocation is
contemplated. [§18-2103.02]
5. No member of the Authority, nor any employee thereof holds any interest in any
property in this Redevelopment Project Area. [§18-2106]
Barry Sandstrom, Chairman of the Grand Island Community Redevelopment Authority,
is President of Home Federal Bank in Grand Island and Home Federal has a branch office
and an ATM on the property. Mr. Sandstrom will recuse himself from action on this
Grand Island Regular Meeting - 7/13/2022 Page 137 / 171
application. As of this amendment, Mr. Sandstrom is no longer a member of the CRA and
no members of the CRA or employees hold any interest in 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 proposing to purchase this property for redevelopment for $2,600,000 in
October of 2014 provided that TIF is available for the project as define. The cost of
property acquisition is being included as a TIF eligible expense. Costs for site
preparation, utility and parking improvements are estimated at $3,004,953 as related to
the demolition and site preparation are included as a TIF eligible expense. It is estimated
based on the proposed increased valuation of $4,416,000 will result in $1,600,000 of
increment generated over a 15 year period, substantially less than the TIF allowable
expenses.
Mesner Development will be acquiring the property identified for townhouses as part of
the eligible activities for this development. The TIF granted on the first project did not
cover the full cost of acquisition so the cost of Lot 2 of Skag-Way Fourth Subdivision can
be included as an eligible expense with the other properties that make this project
feasible.
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 $1,600,000 from the proceeds of the TIF
Indebtedness issued by the Authority. This indebtedness will be repaid from the Tax
Increment Revenues generated from the project. TIF revenues shall be made available to
repay the original debt and associated interest after January 1, 2016 through December
2030 for the grocery store phase of this project.
The developer will provide all necessary financing for the townhouse phase of the project
as described in this amended plan. The Authority will assist the project by granting the
sum of $1,779,000 from the proceeds of the TIF Indebtedness issued by the Authority.
This indebtedness will be repaid from the Tax Increment Revenues generated from the
project. TIF revenues shall be made available to repay the original debt and associated
interest after January 1, 2023 through December 2043
c. Statement of feasible method of relocating displaced families.
No families will be displaced as a result of this plan.
Grand Island Regular Meeting - 7/13/2022 Page 138 / 171
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, in
that it will allow for the utilization of and redevelopment of commercial lots. This will
not significantly impact traffic at the Five Points intersection. New commercial
development will raise property values and provide a stimulus to keep surrounding
properties properly maintained. This will have the intended result of preventing recurring
elements of unsafe buildings and blighting conditions. New residential construction
between the grocery store and Wheeler Avenue north of Blessed Sacrament Church will
utilize property that has been in the City Limits and largely vacant for more than 60
years. This is infill development of housing near community services such as banking,
groceries, churches and existing parks.
8. Time Frame for Development
Development of phase one of this project (including construction of the new grocery
store) is anticipated to be completed between October of 2014 and October of 2015.
Demolition of the existing Skagway store and preparation of the eastern portion of the
site for further development will occur after the opening of the new store. Excess
valuation should be available for this project for 15 years beginning with the 2016 tax
year. Phase one of the project was completed as expected. Phase two including in line
retail and restaurant uses did not materialize as marketability of this property for those
purposes was not feasible. This amended plan would allow phase two to include
development of up to 70 townhouses and include additional property that was not in the
original plan.
9. Justification of Project
Skagway has been a commercial anchor for the Five Points neighborhood since the
1950’s. This redevelopment and reinvestment by AWG at this location represents a great
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opportunity to strengthen and sustain this neighborhood commercial development. This is
infill development in an area with all city services available. This project does not
propose to tear down any buildings with historic value.
Phase two of this project as shown in this amended plan would add up to 70 townhouses
some potentially developed with low income housing tax credits. This would transition
the commercial node at the Five Points intersection with the residential to the north and
east of the site and provide needed housing in the community as infill development using
vacant property with the ability to extend services. At this time housing is a critical need
in Grand Island and across the state of Nebraska.
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
AWG-Skagway North Redevelopment Project, including:
Project Sources and Uses. Approximately $1,600,000.00 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
$14,430,000.00 in private sector financing; a private investment of $9.02 for every TIF
dollar investment.
Use of Funds.
Description TIF Funds Private Funds Total
Site Acquisition $1,600,000 $1,000,000 $2,600,000
Site preparation $3,004,953
Legal and Plan
Building Costs
Phase 1 $4,725,000 $4,725,000
Phase 2 $3,000,000 $3,000,000
Fuel Center $500,000 $500,000
Personal Property $1,000,000 $1,000,000
Soft Costs $1,200,000 $1,200,000
TOTALS $1,600,000 $14,429,953 $16,029,953
Project Sources and Uses Phase 2. Approximately $1,779,000.00 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 $14,609,018 in private sector financing; a private investment of $8.25 for every
TIF dollar investment.
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Use of Funds.
Description TIF Funds Private Funds Total
Site Acquisition 484,000$ $ 484,000
Building Costs $ -
Market Rate Units $ 6,080,000 $ 6,080,000
LIHTC Units $ 8,529,018 $ 8,529,018
Sewer $ 361,176 $ 361,176
Water $ -
Electric $ 72,000 $ 72,000
Public Streets/Sidewalks $ 488,378 $ 488,378
Site preparation/Dirt Work $ 179,000 $ 179,000
Architecture/Engineering $ 80,000 $ 80,000
Legal/TIF Contract -$ $ -
Contingency Reserves 102,855$ $ 102,855
$ -
Total $ 1,767,409 $ 14,609,018 $ 16,376,427
Source of Funds
Tax Revenue Phase 1. The property to be redeveloped is anticipated to have a January 1,
2014, valuation of approximately $3,442,551. Based on the 2013 levy this would result in a real
property tax of approximately $75,783. It is anticipated that the assessed value will increase by
$4,416,000, upon full completion, as a result of the site redevelopment. This development will
result in an estimated tax increase of over $97,200.00 annually adjusted with a 2% appreciation in
value for 15 years resulting in $1,600,000 of increment over the 15 year period. The tax
increment gained from this Redevelopment Project Area would not be available for use as city
general tax revenues, for a period of 15 years, or such shorter time as may be required to amortize
the TIF bond, but would be used for eligible private redevelopment costs to enable this project to
be realized.
Estimated 2014 assessed value: $ 3,442,551.00
Estimated value after completion $ 7,858,035.00
Increment value $ 4,415,484.00
Annual TIF generated (estimated) $ 97,200.00
TIF bond issue $ 1,600,000.00
Tax Revenue Phase 2. The property to be redeveloped for townhouses is anticipated to have a
January 1, 2021, valuation of approximately $574,685. Based on the 2020 levy this would result
in a real property tax of approximately $12,508. It is anticipated that the assessed value will
increase by $14,514,333, upon full completion, as a result of the site redevelopment. This
development will result in an estimated tax increase of over $319,557 annually or an increment of
$4,793,348 over the 15 year period. The tax increment gained from this Redevelopment Project
Area would not be available for use as city general tax revenues, for a period of 15 years, or such
shorter time as may be required to amortize the TIF bond, but would be used for eligible private
redevelopment costs to enable this project to be realized.
Estimated 2021 assessed value: $ 574,685
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Estimated value after completion $ 15,089,018
Increment value $ 14,514,333*
Annual TIF generated (estimated) $ 319,557
TIF bond issue $ 1,767,409
*This is a market rate increment value and if LITHC is used for the project the actual
annual revenues generated would likely be reduced by as much as half.
Phase 1
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $3,442,591.
The proposed demolition, new parking lot and renovations at this location will result in
an additional $4,415,444 of taxable valuation based on an analysis by the Hall County
Assessor’s office. No tax shifts are anticipated from the project. The project creates
additional valuation that will support taxing entities long after the project is paid off.
(b) Public infrastructure and community public service needs impacts and local tax
impacts arising from the approval of the redevelopment project;
No additional public service needs have been identified. Existing water and waste
water facilities will not be impacted by this development. The electric utility has
sufficient capacity to support the development. It is not anticipated that this will impact
schools. Fire and police protection are available and should not be impacted by this
development.
(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
This project will protect and enhance the existing employment within the Project Area by
maintaining a grocery store at this location. Additional employment is anticipated with
the inline retail and restaurant also proposed at this site. At project stabilization
employment is expected to increase to 28 full time equivalent employees. Temporary
construction employment will increase during the construction. The construction period
is expected to exceed 12 months.
(d) Impacts on other employers and employees within the city or village and the
immediate area that are located outside of the boundaries of the area of the
redevelopment project; and
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This facility could draw employees from other similar facilities within the City. The
latest available labor statistics show that the Grand Island labor pool is 27,961 with a
3.3% unemployment rate1.
(e) Any other impacts determined by the authority to be relevant to the
consideration of costs and benefits arising from the redevelopment project.
This will provide appropriate development at a key entrance into the City of Grand
Island. Five Points is an iconic location in Grand Island. This redevelopment plan will
result in substantial new construction in the neighborhood. Skagway has been a key
business at the Five Points location for more than 60 years. This site has had a
neighborhood grocery store since before the area to the north and east was developed.
Redevelopment of this site will preserve this neighborhood commercial district and
strengthen and preserve the surrounding residential values.
Personal property in the project is subject to current property tax rates. Personal property
for the Project is estimated at $1,000,000 resulting in an estimated personal property tax
for the first year of operations of $22,000. Personal property tax is not subject to TIF and
will be paid to the normal taxing entities. There will additionally be more city sales taxes
paid to the city of Grand Island as a result of new taxable sales at the restaurant and inline
stores.
Phase 2
(a) Tax shifts resulting from the approval of the use of Tax Increment Financing;
The redevelopment project area currently has an estimated valuation of $574,685.
The proposed redevelopment at this location will result in an additional $14,514,333 of
taxable valuation based on an analysis by the Hall County Assessor’s office. The project
creates additional valuation that will support taxing entities long after the project is paid
off and provide housing in the next four years.
(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. This development may have an impact on
the schools in the area as further discussed below. Fire and police protection are available
and should not be significantly impacted by this development but all new development
does create potential issues for staffing and response.
1 https://neworks.nebraska.gov Labor Force, Employment and Unemployment for Grand Island City in
May 2014
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(c) Impacts on employers and employees of firms locating or expanding within the
boundaries of the area of the redevelopment project;
The proposed project will provide either workforce housing for employees in the area or
potentially retirement housing for older citizens of Grand Island that would be moving
out of existing homes making those available to new residents. Housing is a major
concern for all expanding employers in the City of 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
The proposed project will provide either workforce housing for employees in the area or
potentially retirement housing for older citizens of Grand Island that would be moving
out of existing homes making those available to new residents. Housing is a major
concern for all expanding employers in the City of Grand Island.
(e) Impacts on student populations of school districts within the City or Village:
This development will have an impact on the Grand Island School system and
will likely result in additional students at both the elementary and secondary school
levels.
The average number of persons per household in Grand Island for 2015 to 2019
according the American Community Survey is 2.61. 70 additional households would
house 182 people. According to the 2010 census 19.2% of the population of Grand Island
was over 4 years old and under 18 years old. 2020 census number for this population
cohort are not yet available but 27.6% of the 2021 population is less than 18 years of age
this is the same percentage as the under 18 age cohort in 2010. If the averages hold it
would be expected that there would be an additional 35 school age children generated by
this development. Given the nature of the units ( a maximum of 70- 2 bedroom
townhomes) proposed these numbers are likely to be significantly less than for detached
single family development. If this develops as proposed with at a rate of around 16 unit
per year for 4 years approximately 9 children could be added to the school age population
every year with this development. These 9 children will likely be spread over the full
school age population from elementary to secondary school. According to the National
Center for Educational Statistics2 the 2019-20 enrollment for GIPS was 10,070 students
and the cost per student in 2017-18 was $12,351 of that $4,653 is generated locally. The
Grand Island Public School System was notified on November 4, 2021 that the CRA
would be considering this application at their November 10, 2021 meeting.
(f) Any other impacts determined by the authority to be relevant to the
consideration of costs and benefits arising from the redevelopment project.
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The proposed development will provide workforce housing in the short term. This is
infill development that will utilize property within the city limits that has been
undeveloped.
Time Frame for Development
Development of phase 1 of this project is anticipated to be completed during between
October 2014 and October of 2015. The base tax year should be calculated on the value
of the property as of January 1, 2015. Excess valuation should be available for this
project for 15 years beginning with the 2016 tax year. Excess valuation will be used to
pay the TIF Indebtedness issued by the CRA per the contract between the CRA and the
developer for a period not to exceed 15 years or an amount not to exceed $1,600,000 the
projected amount of increment based upon the anticipated value of the project and current
tax rate. Based on the purchase price of the property and estimates of the expenses of
renovation activities and associated engineering fees, the developer will spend more than
$5,000,000 on TIF eligible activities.
Development of phase 2 of this project is anticipated to be completed between 2022 and
2025. The base tax year will be set with contract amendments based on the completion
of structures. Excess valuation should be available for this project for 15 years beginning
with the 2023 tax year. Excess valuation will be used to pay the TIF Indebtedness issued
by the CRA per the contract between the CRA and the developer for a period not to
exceed 15 years or an amount not to exceed $1,767,409 based upon the anticipated value
of the project and current tax rate.
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Trinity Heights Mesner Area 6 Bond Resolution Page 1
COMMUNITY REDEVELOPMENT AUTHORITY OF
THE CITY OF GRAND ISLAND, NEBRASKA
RESOLUTION NO. 395
A RESOLUTION AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF A
COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND
ISLAND, NEBRASKA, TAX INCREMENT DEVELOPMENT REVENUE NOTES
OR OTHER OBLIGATION, IN AN AGGREGATE PRINCIPAL AMOUNT NOT
TO EXCEED $1,767,409 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 MESNER REDEVELOPMENTPROJECT AREA,
SPECIFICALLY INCLUDING SITE PURCHASE, PREPARATION,
DEMOLITION, 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 Plan Amendment Grand Island
CRA Area 6, June 2014, Amended November 2021 (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,
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Trinity Heights Mesner Area 6 Bond Resolution Page-2-
extend, rehabilitate, install, equip, furnish and complete, at the cost and expense of the Redeveloper, a
portion of the improvements (as defined in the Redevelopment Contract hereinafter identified) in the
Redevelopment Area (the “Project Costs”), including, without limitation site 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 an aggregate principal amount not to exceed $1,767,409
(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 Mesner Redevelopment Project Tax Increment Development Revenue Note
Series 2022 of the Authority, in an aggregate principal amount not to exceed $1,767,409, 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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Trinity Heights Mesner Area 6 Bond Resolution Page-3-
“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 1 and December 1 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 Mesner
Development Co., Redevelopment Project, dated the date of its execution, between the Authority, and The
Mesner Development Co., a Nebraska corporation, 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
CRA Area #6, June 2014, Amended November 2021” 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 of the Authority,
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 one Note (the “Note”)
in an aggregate principal amount not to exceed $1,767,409. The Note shall be designated as “Community
Redevelopment Authority of the City of Grand Island, Nebraska, Mesner Development Co., Redevelopment
Project Tax Increment Development Revenue Note Series 2022,” 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, 2049, and shall bear interest at an
annual rate of 5.00%. 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 with appropriate series designation.
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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 in the aggregate exceed $1,767,409.
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 five percent (5.0%) 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, 2049, (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 or (2) 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 from time to time pursuant to each Redevelopment Contract Amendment. 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 “Mesner Redevelopment Project Tax Increment Special Fund” (the “Special
Fund”).
So long as the Note remains unpaid, the money in the foregoing fund and accounts shall be used for
no purpose other than those required or permitted by this Resolution, any Resolution supplemental to or
amendatory of this Resolution and the Redevelopment Law.
Section 7.2. Special Fund. All of the Revenue shall be deposited into the Special Fund. The
Revenue accumulated in the Special Fund shall be used and applied on the Business Day prior to each
Payment Date (a) to make any payments to the Authority as may be required under the Redevelopment
Contract and (b) to pay principal on the Note to the extent of any money then remaining the Special Fund on
such Payment Date. Money in the Special Fund shall be used solely for the purposes described in this
Section 7.2. All Revenues received through and including December 31, 2049 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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Trinity Heights Mesner Area 6 Bond Resolution Page-14-
UNITED STATES OF AMERICA
STATE OF NEBRASKA
COUNTY OF HALL
COMMUNITY REDEVELOPMENT AUTHORITY
OF THE CITY OF GRAND ISLAND, NEBRASKA
MESNER DEVELOPMENT CO., REDEVELOPMENT PROJECT
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2022
No. R-1 Up to an aggregate amount of $1,767,409
(subject to reduction as described herein)
Date of Date of Rate of
Original Issue Maturity Interest
December 31, 2049 5.00%
REGISTERED OWNER: The Mesner Development Co.
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 1 and December 1 of each year until payment in full of such
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Principal Amount, beginning June 1, 2024, 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 18-2155, inclusive, Reissue Revised Statutes of Nebraska, as
amended, and under and pursuant to Resolution No. ________ duly passed and adopted by the Authority on
______________, 2022, as from time to time amended and supplemented (the “Resolution”).
THE PRINCIPAL AMOUNT OF THIS NOTE IS SET FORTH IN SCHEDULE 1
ATTACHED HERETO. THE MAXIMUM PRINCIPAL AMOUNT OF THIS NOTE IS $1,767,409.
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 Redevelopment Plan Amendment Grand Island CRA Area 6, June 2014, Amended
November 2021, (Mesner Development Co. 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.
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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
MESNER DEVELOPMENT CO., REDEVELOPMENT PROJECT
TAX INCREMENT DEVELOPMENT REVENUE NOTE, SERIES 2022
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 be paid to the Nebraska State
Treasurer 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 of Nebraska. All suits and actions arising
out of this Resolution shall be instituted in a court of competent jurisdiction in the State of Nebraska except
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to the extent necessary 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: ______________________, 2022.
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, July 13, 2022
Regular Meeting
Item K1
2022 - 2023 Budget
Staff Contact:
Grand Island Regular Meeting - 7/13/2022 Page 170 / 171
2021 2020-2021 2022
BUDGET YE Projected BUDGET
CONSOLIDATED
Beginning Cash 677,632 677,632 548,785
REVENUE:
Property Taxes - CRA 504,203 504,203 524,191
Property Taxes - Lincoln Pool 195,805 195,805 196,818
Property Taxes -TIF's 4,858,000 4,858,000 5,400,000
Loan Income (Poplar Street Water Line) 20,000 16,000 20,000
Interest Income - CRA 10,000 10,000 10,000
Land Sales -
Other Revenue - CRA 200,000 200,000 200,000
Other Revenue - TIF's
TOTAL REVENUE 5,788,008 5,784,008 6,351,008
TOTAL RESOURCES 6,465,640 6,461,640 6,899,793
EXPENSES
Auditing & Accounting 3,000 3,000 3000
Legal Services 3,000 500 3000
Consulting Services 5,000 - 5000
Contract Services 75,000 65,000 75000
Printing & Binding 1,000 - 1000
Other Professional Services 16,000 200 16000
General Liability Insurance 250 - 250
Postage 200 100 250
Legal Notices 500 250 500
Travel & Training 4,000 - 4000
Other Expenditures - -
Office Supplies 1,000 1000
Supplies 300 200 300
Land 30,000 30000
Bond Principal - Lincoln Pool 185,000 185,000 190000
Bond Interest- Lincoln Pool 10,805 10,805 6817.5
Husker Harvest Days Payment (Year 4 of 10 Nov 2021) 200,000 200,000 200000
Façade Improvement 200,000 160,000 250000
Building Improvement 670,000 268,000 500000
Other Projects 200,000 162,000 200000
TIF Payments 4,857,800 4,857,800 5400000
TOTAL EXPENSES 6,462,855 5,912,855 6,886,118
INCREASE(DECREASE) IN CASH (674,847) (128,847) (535,109)
ENDING CASH 2,785 548,785 13,676
COMMUNITY REDEVELOPMENT AUTHORITY
2022 BUDGET
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