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08-10-2022 Community Redevelopment Authority Regular Meeting Packet Community Redevelopment Authority (CRA) Wednesday, August 10, 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 - 8/10/2022 Page 1 / 129 Call to Order Roll Call A - SUBMITTAL OF REQUESTS FOR FUTURE ITEMS Individuals who have appropriate items for City Council consideration should complete the Request for Future Agenda Items form located at the Information Booth. If the issue can be handled administratively without Council action, notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given. B - RESERVE TIME TO SPEAK ON AGENDA ITEMS This is an opportunity for individuals wishing to provide input on any of tonight's agenda items to reserve time to speak. Please come forward, state your name and address, and the Agenda topic on which you will be speaking. DIRECTOR COMMUNICATION This is an opportunity for the Director to comment on current events, activities, and issues of interest to the commission. Grand Island Regular Meeting - 8/10/2022 Page 2 / 129 Community Redevelopment Authority (CRA) Wednesday, August 10, 2022 Regular Meeting Item A1 Agenda - August 10, 2022 Staff Contact: Grand Island Regular Meeting - 8/10/2022 Page 3 / 129 Grand Island Regular Meeting - 8/10/2022 Page 4 / 129 Grand Island Regular Meeting - 8/10/2022 Page 5 / 129 Community Redevelopment Authority (CRA) Wednesday, August 10, 2022 Regular Meeting Item B1 July 13, 2022 Minutes Staff Contact: Grand Island Regular Meeting - 8/10/2022 Page 6 / 129 OFFICIAL PROCEEDINGS MINUTES OF COMMUNITY REDEVELOPMENT AUTHORITY MEETING OF July 13, 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 July 13, 2022 at City Hall, 100 E. First Street. Notice of the meeting was given in the July 7, 2022 Grand Island Independent. 1. CALL TO ORDER. Chairman Gdowski called the meeting to order at 4:00 p.m. The following members were present: Tom Gdowski, Jim Truell, Chris Schwieger and Sue Pirnie attending via zoom. Also present were: Planning Director Chad Nabity, Planning Administrative Assistant Norma Hernandez. 2. APPROVAL OF MINUTES. A motion for approval of the Minutes for the July 13, 2022 meeting was made by Truell and second by Pirnie. Upon roll call vote, all present voted aye. Motion carried 4-0 3. RATIFICATION OF ACTION ITEMS. Ratification of action items from CRA meetings beginning June 8, 2021 and ending June 22, 2022. A motion was made by Truell and Pirnie second by r to approve ratification of action items of CRA meetings beginning June 8, 2022 – June 22, 2022. Upon roll call vote, all present voted aye. Motion carried 4-0 4. APPROVAL OF FINANCIAL REPORTS. A motion for approval of financials for June 2022 was made by Truell and second by Schwieger. Upon roll call vote, all present voted aye. Motion carried 4-0 5. APPROVAL OF BILLS A motion was made by Truell and second by Schwieger to approve the bills for $92,636.18. Upon roll call vote, all present voted aye. Motion carried 4-0. 6. REVIEW OF COMMITED PROJECTS & CRA PROPERTY. The committed projects and CRA projects were reviewed by Nabity. Oberg project – will not be done. Waiting on glass order. Will hold funds until project is complete. Floodman Project – Should be done before the end of the fiscal year. Take Flight – Not sure it will be done this year. Hedde Building – Will not be done before the end of September. Azure Apartments – May be done until the beginning of next year. Rawr Holdings – Nabity will send letter/30 day notice to Travis Spiehs. Grand Island Regular Meeting - 8/10/2022 Page 7 / 129 7. 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 Nabity stated the plan requests $263,200 in tax increment financing along with associated interest on the TIF bonds. The City Council approved the redevelopment plan. The contract has not changed A motion was made by Truell and second by Pirnie to approve the redevelopment contract and Resolution 394. Upon roll call vote, all present voted. Motion carried 3 aye – 1 abstain (Gdowski). 8. Redevelopment Contract and Bond Resolution Plan Amendment CRA Area 6 – Trinity Heights Subdivision – Mesner Development a. Consideration of Resolution 395 – Bond Resolution for Trinity Heights Subdivision – Mesner Development Nabity stated the plan requests $1,767,409 in tax increment financing along with associated interest on the TIF bonds. The plat was approved last night at the City Council Meeting and the rezoning request was approved back in January 2021. The west side of the north south street between Blessed Sacrament Church and Super Saver was approved for a low income tax credit project. A motion was made by Truell and second by Schweigher to approve Resolution 395. Upon roll call vote, all present voted aye. Motion carried 4-0. 9. Redevelopment Plan Amendment CRA Area 34 – Millennial Estates Subdivision property located in the E ½ of the SW ¼ of 12-11-10 – Starostka Group Unlimited. a. Consideration of Resolution 396 – Forward a Redevelopment Plan Amendment to the Hall County Regional Planning Commission Millennial Estates Subdivision property located in the E ½ of the SW ¼ of 12-11-10 – Starostka Group Unlimited b. Consideration of Resolution 397 – Resolution of Intent to enter into a Site Specific Redevelopment Contract and Approval of related actions 30-day notice to city council Millennial Estates Subdivision property located in the E ½ of the SW ¼ of 12-11-10- Starostka Group Unlimited Grand Island Regular Meeting - 8/10/2022 Page 8 / 129 Nabity stated the redevelopment plan for CRA Area No. 34 is for development of 120 housing units on the proposed Millennial Estates Subdivision north of 13th Street and 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. Proposing to build 12-13 houses a year for the next 9 years. A motion was by Truell and second by Pirnie to approve Resolution 396 and Resolution 397. Upon roll call vote, all present voted aye. Motion carried 4-0. 10. Consideration of Other Projects Grant Request from Hope Harbor for acquisition and demolition of properties in CRA Area 2. Nabity stated Hope Harbor is requesting $50,000 from CRA to aid in purchase and demolition. They have the opportunity to purchase the remainder of the block they own. They will be awarded a community development block grant for acquisition. Hope Harbor plans is to rebuild 11-12 units for transitional housing at the location. A motion was made by Truell and second by Schwieger to approve Hope Harbor Grand request for $50,000 with the understanding Hope Harbor will consent to the CRA holding a lien on the property that is forgivable upon completion of replacement housing on the lots. Payment to Hope Harbor will be made after they acquire the property. Upon roll call vote, all present voted aye. Motion carried 4-0. 11. 2022-23 BUDGET DISCUSSION Nabity reviewed the budget. Nabity stated the amount for the façade line item could potentially go up to $350,000 or $400,000 and keep $200,000 in other projects. Nabity mentioned the CRA will receive bigger applications this year. Life Safety – Bring it back or wait another year Nabity asked board members if they would like to keep the levy the same, reduce the levy or capture the growth. Nabity mentioned last year the CRA decided to capture the growth. Nabity also stated the CRA could keep the same dollar amount as last year and that will reduce the levy. Nabity will figure the budget based on no increase. Grand Island Regular Meeting - 8/10/2022 Page 9 / 129 12. Director’s Report Sculpture Walk Invite – Hedde Builing 201 W. 3rd Street Friday, July 22nd at 8:30 a.m. 13. Adjournment 4:52 p.m. Respectfully Submitted, Norma Hernandez Grand Island Regular Meeting - 8/10/2022 Page 10 / 129 Community Redevelopment Authority (CRA) Wednesday, August 10, 2022 Regular Meeting Item C1 Financials - July 2022 Staff Contact: Grand Island Regular Meeting - 8/10/2022 Page 11 / 129 MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET July-22 YEAR TO DATE BUDGET BALANCE USED CONSOLIDATED Beginning Cash 880,629 548,785 REVENUE: Property Taxes - CRA 9,351 393,262 524,191 130,929 75.02% Property Taxes - Lincoln Pool 1,691 114,544 196,818 82,274 58.20% Property Taxes -TIF's 9,106 2,972,347 5,400,000 3,305,740 55.04% Loan Income (Poplar Street Water Line) - - 20,000 20,000 0.00% Interest Income - CRA 265 1,395 10,000 8,605 13.95% Interest Income - TIF'S - - - - Land Sales - - - - #DIV/0! Other Revenue - CRA 601 216,911 200,000 - 108.46% Other Revenue - TIF's - - - - TOTAL REVENUE 21,015 3,698,459 6,351,009 3,547,548 58.23% TOTAL RESOURCES 901,644 3,698,459 6,899,794 3,547,548 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 4,618 63,270 75,000 11,730 84.36% 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 18 195 500 305 38.96% 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 88,000 88,000 250,000 162,000 35.20% Building Improvement - 135,000 500,000 365,000 27.00% Other Projects - 10,000 200,000 190,000 5.00% Bond Principal-TIF's - 2,940,158 5,400,000 2,459,842 54.45% Bond Interest-TIF's - - - - Interest Expense - - - - TOTAL EXPENSES 92,636 3,644,453 6,886,118 3,242,189 52.92% INCREASE(DECREASE) IN CASH (71,621) 54,006 (535,109) ENDING CASH 809,008 54,006 13,677 - CRA CASH 709,847 Lincoln Pool Tax Income Balance 66,394 TIF CASH 32,766 Total Cash 809,008 COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JULY 2022 Grand Island Regular Meeting - 8/10/2022 Page 12 / 129 MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET July-22 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JULY 2022 GENERAL OPERATIONS: Property Taxes - CRA 9,351 393,262 524,191 130,929 75.02% Property Taxes - Lincoln Pool 1,691 114,544 196,818 82,274 58.20% Interest Income 265 1,395 10,000 8,605 13.95% Loan Income (Poplar Street Water Line) - 20,000 20,000 0.00% Land Sales - - - #DIV/0! Other Revenue & Motor Vehicle Tax 601 216,911 200,000 - 108.46% TOTAL 11,909 726,112 951,009 241,808 76.35% 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 13,199 - TOTAL - 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 2,136 - TOTAL - 2,136 - - STRATFORD PLAZA INC Property Taxes 34,578 - TOTAL - 34,578 - - COPPER CREEK 2013 HOUSES Property Taxes 2,680 71,664 - TOTAL 2,680 71,664 - - Grand Island Regular Meeting - 8/10/2022 Page 13 / 129 MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET July-22 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JULY 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 41,442 (41,442) TOTAL - 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 3,342 269,504 (269,504) TOTAL 3,342 269,504 - (269,504) 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 1,776 164,039 - (164,039) TOTAL 1,776 164,039 - (164,039) Grand Island Regular Meeting - 8/10/2022 Page 14 / 129 MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET July-22 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JULY 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 5,166 (5,166) TOTAL - 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 2,152 (2,152) TOTAL - 2,152 - (2,152) HATCHERY HOLDINGS Property Taxes 87,855 (87,855) TOTAL - 87,855 - (87,855) FEDERATION LABOR TEMPLE Property Taxes 3,757 (3,757) TOTAL - 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 - 8/10/2022 Page 15 / 129 MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET July-22 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JULY 2022 EAST PARK ON STUHR Property Taxes 54,155 (54,155) TOTAL - 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 807,039 (807,039) TOTAL - 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 Grand Island Regular Meeting - 8/10/2022 Page 16 / 129 MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET July-22 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JULY 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 15,360 (15,360) TOTAL - 15,360 - (15,360) COPPER CREEK PHASE 3 2020 LOOKBACK Property Taxes 689 11,556 (11,556) TOTAL 689 11,556 - (11,556) 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 618 683 (683) TOTAL 618 683 - (683) WING PROPERTIES 112 E 3RD ST Property Taxes 82 (82) TOTAL - 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 2,372 (2,372) TOTAL - 2,372 - (2,372) Grand Island Regular Meeting - 8/10/2022 Page 17 / 129 MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET July-22 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JULY 2022 PARAMOUNT 824 E 9TH ST Property Taxes 264 (264) TOTAL - 264 - (264) J&L WESTWARD ENTERPRISES CAAP Property Taxes 1,090 (1,090) TOTAL - 1,090 - (1,090) MILLER TIRE Property Taxes 176 (176) TOTAL - 176 - (176) TOTAL REVENUE 21,015 3,698,459 6,351,009 2,977,838 58.23% - - - Grand Island Regular Meeting - 8/10/2022 Page 18 / 129 MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET July-22 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JULY 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 4,618 63,270 75,000 11,730 84.36% 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 18 195 500 305 38.96% 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 88,000 88,000 250,000 162,000 35.20% Building Improvement 135,000 500,000 365,000 0.00% Other Projects 10,000 200,000 190,000 5.00% TOTAL CRA EXPENSES 92,636 704,295 1,486,118 782,348 47.39% 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 13,199 - - TOTAL - 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 - 8/10/2022 Page 19 / 129 MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET July-22 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JULY 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 2,136 - - TOTAL - 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 41,442 - - TOTAL - 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 266,162 - - TOTAL - 266,162 - - TC ENCK BUILDERS Bond Principal 1,947 - - TOTAL - 1,947 - - Grand Island Regular Meeting - 8/10/2022 Page 20 / 129 MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET July-22 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JULY 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 162,263 - - TOTAL - 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 5,166 - - TOTAL - 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 - 8/10/2022 Page 21 / 129 MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET July-22 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JULY 2022 WEINRICH DEVELOPMENT Bond Principal 3,488 - - TOTAL - 3,488 - WING WILLIAMSONS Bond Principal 2,152 - - TOTAL - 2,152 - HATCHERY HOLDINGS Bond Principal 87,855 - - TOTAL - 87,855 - FEDERATION LABOR TEMPLE Bond Principal 3,757 - - TOTAL - 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 59,867 - - TOTAL - 59,867 - TAKE FLIGHT INVESTMENTS Bond Principal 8,408 - - TOTAL - 8,408 - PRATARIA VENTURES HOSPITAL Bond Principal 1,014,540 - - TOTAL - 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 - 8/10/2022 Page 22 / 129 MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET July-22 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JULY 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 15,360 - - TOTAL - 15,360 - COPPER CREEK PHASE 3 2020 LOOKBACK Bond Principal 10,867 - - TOTAL - 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 - 8/10/2022 Page 23 / 129 MONTH ENDED 2021-2022 2022 REMAINING % OF BUDGET July-22 YEAR TO DATE BUDGET BALANCE USED COMMUNITY REDEVELOPMENT AUTHORITY FOR THE MONTH OF JULY 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 - - TOTAL - 2,372 - PARAMOUNT 824 E 9TH ST Bond Principal - - - TOTAL - - - J&L WESTWARD ENTERPRISES CAAP Bond Principal 1,090 - - TOTAL - 1,090 - MILLER TIRE Bond Principal - - - TOTAL - - - TOTAL EXPENSES 92,636 3,644,453 6,886,118 6,182,348 52.92% Grand Island Regular Meeting - 8/10/2022 Page 24 / 129 Community Redevelopment Authority (CRA) Wednesday, August 10, 2022 Regular Meeting Item D1 Bills - August 2022 Staff Contact: Grand Island Regular Meeting - 8/10/2022 Page 25 / 129 Grand Island Regular Meeting - 8/10/2022 Page 26 / 129 Community Redevelopment Authority (CRA) Wednesday, August 10, 2022 Regular Meeting Item E1 July 2022 Committed Projects and CRA Properties Staff Contact: Grand Island Regular Meeting - 8/10/2022 Page 27 / 129 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 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 Hope Harbor $ 50,000.00 $ 50,000.00 Fall 2022 Total Committed $ 314,513.00 $ 314,513.00 $ - $ - 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 $ 64,513.00 $ 135,487.00 Land - Budgeted 2022 $ 30,000.00 $ - $ 30,000.00 Land Sales Budgeted 2022 $ - $ - $ - subtotal $ 314,513.00 $ 165,487.00 Balance $ 314,513.00 $ 165,487.00 BUDGET PAID LEFT Building Improvements * $ 500,000.00 $ 135,000.00 $ 365,000.00 *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 July 31, 2022 Grand Island Regular Meeting - 8/10/2022 Page 28 / 129 Community Redevelopment Authority (CRA) Wednesday, August 10, 2022 Regular Meeting Item G1 Request from Chamber Staff Contact: Grand Island Regular Meeting - 8/10/2022 Page 29 / 129 Grand Island Regular Meeting - 8/10/2022 Page 30 / 129 Grand Island Regular Meeting - 8/10/2022 Page 31 / 129 Grand Island Regular Meeting - 8/10/2022 Page 32 / 129 Grand Island Regular Meeting - 8/10/2022 Page 33 / 129 Grand Island Regular Meeting - 8/10/2022 Page 34 / 129 July 14, 2022 3935 Westgate Road P.O. Box 2078 Grand Island, NE 68802-2078 308.389.7222 Cindy Johnson Grand Island Chamber of Commerce 309 West 2nd Street Grand Island, NE 68801 Proposal For: Chamber of Commerce Building Façade Improvement Chief Construction is pleased to provide a proposal to remove the existing building façade and construct a new façade. This proposal is based on the proposed elevation Option 2 provided by CMBA Architects and as described below: General Conditions: ▪ Site Supervisor to oversee the remodel work ▪ Removal of all construction debris ▪ General Liability Insurance, Workman’s Compensation and Builders Risk Insurance ▪ All necessary materials, labor and equipment to complete the work listed below ▪ Safety program for all on site staff and subcontractors Façade Improvment ▪ Demolition of the existing building facade ▪ New furring and sheeting over original building masonry ▪ Cut in openings for new storefront windows ▪ Install thin brick veneer system ▪ Install new metal wall panel system ▪ Install new aluminum storefront window systems ▪ Install new canopy awning over new storefront entry ▪ Provide wall cap flashings ▪ New concrete stoop and ADA ramp at new storefront entry ▪ Patch gypsum board on interior of building at new window openings only ▪ Touch up painting on interior of building around new windows ▪ Electrical allowance of $5,000 to relocate any light switches and/or outlets for new storefront window systems TOTAL PRICE FOR THIS WORK: $290,000.00 Respectfully Submitted, Corey Sibert Corey Sibert Project Coordinator Chief Construction Grand Island Regular Meeting - 8/10/2022 Page 35 / 129 July 14, 2022 Cindy Johnson Grand Island Chamber of Commerce 108 N. Locust St. Grand Island, NE 68801 Re: Grand Island Chamber of Commerce - Community Redevelopment Authority (CRA) Façade Improvement Dear Cindy, We are excited to continue developing the selected façade redevelopment design at your office and are pleased to provide a proposal for our architectural services. Project Understanding The Grand Island Chamber of Commerce is applying for façade redevelopment funding to address the North façade for their existing building. Their vision is to remove the existing EIFS architectural façade and introducing new materials to create a modern aesthetic. Having already engaged in the development of an approved schematic design for the CRA Façade Improvement Application, CMBA Architects shall develop a set of drawings and specifications for bidding and construction by the selected Contractor. CMBA Architects services shall include Structural Engineering and Electrical Engineering for this portion of the work. The design team may need to make site visits and/or conduct online meetings to complete their work. Please provide CMBA Architects with any construction drawings of the existing building, if possible. Schedule Upon approval for the requested CRA Façade Improvement funds and with a signed Authorization to Proceed (attached), we anticipate preparation of Construction Documents shall require two months, pending timely responses to questions from the design team and desired level of engagement throughout the design process. If this proposal is accepted, CMBA Architects shall issue an AIA services contract to complete the work. Proposed Contract for Services CMBA Architects shall provide architectural services in accordance with the outlined scope for the Design Phase (Schematic Design) to satisfy the requirements for the Community Redevelopment Authority Façade Improvement application. Construction Documents $32,300 Biding Assistance / Construction Administration $5,700 A fee totaling Thirty-Eight Thousand Dollars and No Cents ($38,000.00) will be required to complete the work. If you find the terms of this Proposal acceptable, please sign this letter below and return one copy to CMBA Architects or provide a similar form of agreement acknowledging the terms noted in this document. (Continued on next page) Grand Island Regular Meeting - 8/10/2022 Page 36 / 129 If we have misunderstood your directives in any way, please advise Jim Brisnehan or Shane Labenz. Our team looks forward to assisting the Grand Island Chamber of Commerce achieve their vision for the office. Respectfully, James R. Brisnehan, AIA COO | Principal brisnehan.j@cmbaarchitects.com Shane Labenz, AIA Architect labenz.s@cmbaarchitects.com AGREED AS OF _____________________________________ Date SIGNED ____________________________________________________ Grand Island Regular Meeting - 8/10/2022 Page 37 / 129 Community Redevelopment Authority (CRA) Wednesday, August 10, 2022 Regular Meeting Item I1 Redevelopment Plan Amendment CRA Area 34 - Millennial Estates Subdivision property located in the E 1/2 of the SW 1/4 of 12-11-10 - Starostka Group Unlimited Staff Contact: Grand Island Regular Meeting - 8/10/2022 Page 38 / 129 Area 34 Millennial Estates Starostka Group Unlimited Page 1 COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA RESOLUTION NO. 398 A RESOLUTION RECOMMENDING APPROVAL OF A REDEVELOPMENT PLAN TO THE CITY OF GRAND ISLAND, NEBRASKA; RECOMMENDING APPROVAL OF A REDEVELOPMENT PROJECT TO THE CITY OF GRAND ISLAND, NEBRASKA; APPROVING A COST BENEFIT ANALYSIS FOR SUCH PROJECT; AND APPROVAL OF RELATED ACTIONS WHEREAS, the Mayor and Council of the City of Grand Island, Nebraska (the “City”), upon the recommendation of the Planning Commission of the City of Grand Island, Nebraska (the “Planning Commission”), and in compliance with all public notice requirements imposed by the Community Development Law, Chapter 18, Article 21, Reissue Revised Statutes of Nebraska, as amended (the “Act”), duly declared the redevelopment area legally described on Exhibit A attached hereto (the “Redevelopment Area”) to be blighted and substandard and in need of redevelopment; and WHEREAS, pursuant to and in furtherance of the Act, a Redevelopment Plan (the “Redevelopment Plan”), has been prepared by Community Redevelopment Authority of Grand Island, Nebraska, (the “Authority”) pursuant to an application by Starostka Group Unlimited. (the “Redeveloper”), in the form attached hereto as Exhibit B, for the purpose of redeveloping Redevelopment Area legally described on Exhibit A, referred to herein as the Project Area (the “Project Area”); and WHEREAS, pursuant to the Redevelopment Plan, the Authority would agree to incur indebtedness and make a grant for the purposes specified in the Redevelopment Plan (the “Project”), in accordance with and as permitted by the Act; and WHEREAS, the Authority has conducted a cost benefit analysis of the Project (the “Cost Benefit Analysis”) pursuant to Section 18-2113 of the Act, a which is included in the Redevelopment Plan attached hereto as Exhibit B; and WHEREAS, the Authority has made certain findings and pursuant thereto has determined that it is in the best interests of the Authority and the City to approve the Redevelopment Plan and approve the Redevelopment Project and to approve the transactions contemplated thereby. NOW, THEREFORE, BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA AS FOLLOWS: Section 1. The Authority has determined that the proposed land uses and building requirements in the Redevelopment Plan for the Project Area are designed with the general purposes of accomplishing, and in conformance with the general plan of the City, a coordinated, adjusted, and harmonious development of the City and its environs which will, in accordance with present and future needs, promote health, safety, morals, order, convenience, prosperity and the general welfare, as well as efficiency in economy in the process of development; including, among other things, adequate provision for traffic, vehicular parking, the promotion of safety from fire, panic, and other dangers, adequate provisions for light and air, the promotion of the healthful and convenient distribution of population, the provision of adequate transportation, water, sewerage, and other public utilities, schools, parks, recreational and communitive facilities, and other public requirements, the promotion of sound design and arrangement, the wise and efficient expenditure of public funds, and the prevention of the recurrence of unsanitary or unsafe dwelling accommodations, or conditions of blight. Grand Island Regular Meeting - 8/10/2022 Page 39 / 129 Area 34 Millennial Estates Starostka Group Unlimited Page 2 Section 2. The Authority has conducted a Cost Benefit Analysis for the Project, included in the Redevelopment Plan attached hereto as Exhibit B, in accordance with the Act, and has found and hereby finds that the Project would not be economically feasible without the use of tax increment financing, the Project would not occur in the Project Area without the use of tax increment financing and the costs and benefits of the Project, including costs and benefits to other affected political subdivisions, the economy of the community, and the demand for public and private services, have been analyzed and have been found to be in the long term best interests of the community impacted by the Project. Section 3. In compliance with section 18-2114 of the Act, the Authority finds and determines as follows: (a) the Redevelopment Area constituting the Redevelopment Project will not be acquired by the Authority and the Authority shall receive no proceeds from disposal to the Redeveloper; (b) the estimated cost of project acquisition and the estimated cost of acquisition of property, preparation for redevelopment including site work, public utilities and streets, trails and sidewalks described in detail in Exhibit B attached hereto; (c) the method of acquisition of the real estate shall be by private contract by the Redeveloper and not by condemnation; and (d) the method of financing the Redevelopment Project shall be by issuance of tax increment revenue bond issued in the approximate amount of $5,650,000 which shall be granted to the Redeveloper and from additional funds provided by the Redeveloper. No families will be displaced from the Redevelopment Project Area as a result of the project. Section 4. The Authority hereby recommends to the City approval of the Redevelopment Plan and the Redevelopment Project described in the Redevelopment Plan. Section 5. All prior resolutions of the Authority in conflict with the terms and provisions of this resolution are hereby expressly repealed to the extent of such conflicts. Section 6. This resolution shall be in full force and effect from and after its passage and approval. PASSED AND APPROVED this 10th day of August, 2022. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND NEBRASKA ATTEST: By: ___________________________________ Chair By: ___________________________________ Secretary Grand Island Regular Meeting - 8/10/2022 Page 40 / 129 Area 34 Millennial Estates Starostka Group Unlimited Page 3 EXHIBIT A LEGAL DESCRIPTION OF REDEVELOPMENT PROJECT AREA Legal Descriptions: Part of the E ½ of the SW ¼ of 12-11-10 (PID 400149971) and Part of the E ½ of the SW ¼ 12-11-10 (PID 400149966) Grand Island Regular Meeting - 8/10/2022 Page 41 / 129 Area 34 Millennial Estates Starostka Group Unlimited Page 4 * * * * * EXHIBIT B FORM OF REDEVELOPMENT PLAN Grand Island Regular Meeting - 8/10/2022 Page 42 / 129 Redevelopment Plan Amendment Grand Island CRA Area 34 July 2022 The Community Redevelopment Authority (CRA) of the City of Grand Island intends to amend the Redevelopment Plan for Area 34 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 34. Executive Summary: Project Description THE REDEVELOPMENT APPROXIMATELY 49 ACRES OF PROPERTY LOCATED NORTH OF 13TH STREET SOUTH OF STATE STREET AND WEST OF THE MOORE’S CREEK DRAINWAY IN NORTHWEST GRAND ISLAND FOR A RESIDENTIAL HOUSING INCLUDING UP TO 120 UNITS OF HOUSING. The use of Tax Increment Financing to aid in redevelopment expenses associated with platting and installing the necessary infrastructure (streets, sanitary sewer, water, and storm sewer) for the development of 120 units of housing. 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. Starostka Group Unlimited, Inc has purchased a portion of this property and has an option to purchase rest for residential development. Changes in the cost of construction, availability of materials and the approval of several other housing projects using Tax Increment Financing have led to this application for assistance with the project. This project will also include building a portion of Claude Road along the eastern side of the property and relocating the existing ditch for the Moore’s Creek Drainway. 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: Part of the E ½ of the SW ¼ of 12-11-10 (PID 400149971) and Part of the E ½ of the SW ¼ 12-11-10 (PID 400149966) Grand Island Regular Meeting - 8/10/2022 Page 43 / 129 Existing Land Use and Subject Property Grand Island Regular Meeting - 8/10/2022 Page 44 / 129 The tax increment will be captured for the tax years the payments for which become delinquent in years 2023 through 2048 inclusive. The TIF contract will be structured so it can be amended each year for up to ten years to add the housing units to be completed during that year. No single property will be eligible for TIF for a period of more than 15 years. The real property ad valorem taxes on the current valuation will continue to be paid to the normal taxing entities. The increase will come from development of the property for residential 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. The plan anticipates that each phase of the development will constitute new effective date for the purposes of determining the period of fifteen years. Said taxes shall be divided as follows: a. That portion of the ad valorem tax which is produced by levy at the rate fixed each year by or for each public body upon the redevelopment project valuation shall be paid into the funds, of each such public body in the same proportion as all other taxes collected by or for the bodies; and b. That portion of the ad valorem tax on real property in the redevelopment project in excess of such amount, if any, shall be allocated to and, when collected, paid into a special fund of the Authority to pay the principal of; the interest on, and any premiums due in connection with the bonds, loans, notes, or advances on money to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise,such Authority for financing or refinancing, in whole or in part, a redevelopment project. When such bonds, loans, notes, advances of money, or indebtedness including interest and premium due have been paid, the Authority shall so notify the County Assessor and County Treasurer and all ad valorem taxes upon real property in such redevelopment project shall be paid into the funds of the respective public bodies. Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged to the repayment of loans or advances of money, or the incurring of any indebtedness, whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in whole or in part, the redevelopment project, including the payment of the principal of, premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness. Redevelopment Plan Amendment Complies with the Act: Grand Island Regular Meeting - 8/10/2022 Page 45 / 129 The Community Development Law requires that a Redevelopment Plan and Project consider and comply with a number of requirements. This Plan Amendment meets the statutory qualifications as set forth below. 1. The Redevelopment Project Area has been declared blighted and substandard by action of the Grand Island City Council on September 28, 2021.[§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 August 3, 2022 and passed Resolution 2022-12 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 34 provides for real property acquisition and this plan amendment does not prohibit such acquisition. There is no proposed acquisition by the authority. b. Demolition and Removal of Structures: The project to be implemented with this plan does not provide for the demolition and removal any structures on this property. c. Future Land Use Plan See the attached map from the 2004 Grand Island Comprehensive Plan. All of the area around the site in private ownership is planned for low to medium density residential development. This property is in private ownership. [§18-2103(b) and §18-2111] The attached map also is an accurate site plan of the area after redevelopment. [§18-2111(5)] Grand Island Regular Meeting - 8/10/2022 Page 46 / 129 City of Grand Island Future Land Use Map Grand Island Regular Meeting - 8/10/2022 Page 47 / 129 d. Changes to zoning, street layouts and grades or building codes or ordinances or other Planning changes. The area is zoned R4 High Density Residential along 13th street and R2 Low Density Residential on the northern portion of the site. The future land use map calls for medium density to office use development across this entire site. New public streets and utilities are anticipated and needed to support this project and it is anticipated that TIF revenues will offset the costs of those improvements. No changes are anticipated in building codes or other ordinances. No other planning changes contemplated. [§18-2103(b) and §18- 2111] Current Zoning on the Site e. Site Coverage and Intensity of Use The R2 zoning district allows for one dwelling unit per 6000 square feet of lot space with a 6000 square foot minimum lot size. The RO zoning district does not limit the density of housing units but does require minimum 6000 square foot lot. The development as proposed will have a residential density of 2.4 units per acre. Appendix A of this plan includes the developer’s vision for the development. [§18-2103(b) and §18-2111] f. Additional Public Facilities or Utilities Grand Island Regular Meeting - 8/10/2022 Page 48 / 129 Sanitary sewer and water are available to support this development. Both sanitary sewer and water will need to be extended throughout the site. TIF revenues will be used to offset the cost of these public utility improvements. Electric utilities are sufficient for the proposed use of this property. Electric 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 $810,000as an eligible expense. The estimated costs of utilities including sewer and water is $1,446,189. Streets and drainage are estimated at $2,520,655. Planning activities including engineering, architecture, legal fees and government fees are estimated at $872,706. The total of the eligible expenses for this project is estimated by the developer at $5,650,000. 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 $5,650,000 from the proceeds of the TIF. This indebtedness will be repaid from the Tax Increment Revenues generated from the project. TIF revenues shall be made available to repay the original debt and associated interest after January 1, 2023 through December 2048. 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: Grand Island Regular Meeting - 8/10/2022 Page 49 / 129 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 build out of the subdivision is planned in five phases between 2023 and 2032. It is anticipated that the units in this development will be fully built out by 2032 with the tax increment on those homes extending to 2048. Excess valuation should be available for the first homes built with this project for 15 years beginning with the 2023 tax year. 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. Grand Island Regular Meeting - 8/10/2022 Page 50 / 129 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 $5,650,000 in public funds from tax increment financing provided by the Grand Island Community Redevelopment Authority will be required to complete the project. This investment by the Authority will leverage $32,424,550 in private sector financing and investment; a private investment of $5.74 for every TIF dollar invested. Use of Funds Source of funds Description TIF Funds Private Funds Total Site Acquisition $810,000 $810,000 Building Costs $32,400,000 $32,400,000 Sewer and Water $1,446,189 $1,446,189 Public Streets/ sidewalks $2,520,655 $2,520,655 Planning (Arch. & Eng.) $872,706 $872,706 Legal/ TIF contract $450 $24,550 $25,000 Total $5,650,00 $32,424,550 $38,074,550 Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2023 valuation of approximately $149,793. Based on the 2021 levy this would result in a real property tax of approximately $3,247. It is anticipated that the assessed value will increase by $32,400,000 upon full completion, as a result of the site redevelopment. This development will result in an estimated tax increase of over $699,000 annually. The tax increment gained from this Redevelopment Project Area would not be available for use as city general tax revenues, for the period of the bonds, but would be used for eligible private redevelopment costs to enable this project to be realized. Estimated 2023 assessed value: $ 149,793 Estimated value after completion $ 32,400,000 Increment value $ 32,250,261 Annual TIF generated (estimated) $ 699,308 TIF bond issue $ 5,650,000 (a) Tax shifts resulting from the approval of the use of Tax Increment Financing; The redevelopment project area currently has an estimated valuation of $89,739. The proposed redevelopment will create additional valuation of $32,400,000 over the course of the next ten years. The project creates additional valuation that will support taxing entities long after the project is paid off along with providing 120 additional housing units and provide for the development and construction of Claude Road on the east side Grand Island Regular Meeting - 8/10/2022 Page 51 / 129 of this property. The tax shift from this project will be equal to the total of the bond principal of $5,650,000 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 for Grand Island Public Schools. 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. The National Homebuilders Association estimated in a 2014 study1 that each unit of single family housing resulted in 2.97 full time equivalent jobs so this development at 13 units per year would represent an additional 39 FTE’s within the city for the next nine years. (d) Impacts on other employers and employees within the city or village and the immediate area that are located outside of the boundaries of the area of the redevelopment project; and This project will not have a negative impact on other employers different from any other expanding business within the Grand Island area. Grand Island does have tight labor market and part of that is due to the availability and cost of housing. This development may help alleviate some of those pressures. (e) Impacts on student populations of school districts within the City or Village: This development will have an impact on the Grand Island School system and will likely result in additional students at 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. 120 additional households would house 313 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 1 https://www.nahb.org/news-and-economics/housing-economics/housings-economic-impact/impact-of- home-building-and-remodeling-on-the-us-economy Grand Island Regular Meeting - 8/10/2022 Page 52 / 129 would be expected that there would be an additional 60 school age children generated by this development. If this develops at a rate of 13 units per year for 9 years approximately 7 children could be added to the school age population every year with this development. These 7 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 January 31, 2022 that the CRA would be considering this application at their July 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 between Fall of 2022 and the end of 2032. The base tax year should be calculated on the value of the property as of January 1, 2023 for the first phase with each phase based on the preceding year’s valuation of the property included in the amendment for that year. Excess valuation should be available for this project beginning in 2023 with taxes due in 2024. 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 a base amount of $5,650,000 the projected amount of increment based upon the anticipated value of the project and current tax rate. Based on the estimates of the expenses of the rehabilitation the developer will spend at least $5,650,000 on TIF eligible activities. 2 https://nces.ed.gov/ccd/districtsearch/district_detail.asp?ID2=3100016 Grand Island Regular Meeting - 8/10/2022 Page 53 / 129 Proposed Phasing of the Development Grand Island Regular Meeting - 8/10/2022 Page 54 / 129 Form Updated 7-25-2019cn Page | 1 BACKGROUND INFORMATION RELATIVE TO TAX INCREMENT FINANCING REQUEST Project Redeveloper Information Business Name: ______________________________________________________________ Address: _______________________________________________________________ Telephone No.: __________________________ Fax No.: _______________ Email: _________________________________________________________ Contact: _______________________________________________________________ Application Submission Date: Brief Description of Applicant’s Business:__ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________ Legal Description/Address of Proposed Project Community Redevelopment Area Number ________ 6/7/2022 MISC TRACTS 12-11-10 PT E1/2 SW1/4 and MISCELLANEOUS TRACTS 12-11-10 PT E 1/2 SW 1/4 34.41 AC (3812 W. 13th) Starostka Group Unlimited, Inc. 429 Industrial Lane (308) 385-0636 jordanstar@stargroupunl.com Jordan Starostka Applicant is a developer and contractor that provides comprehensive contracting for residential, commercial, and civil/industrial projects. Grand Island Regular Meeting - 8/10/2022 Page 55 / 129 Form Updated 7-25-2019cn Page | 2 Present Ownership Proposed Project Site: ________________________________________________________________ _____________________________________ Is purchase of the site contingent on Tax Increment Financing Approval? Yes No Proposed Project: Building square footage, size of property, description of buildings – materials, etc. Please attach site plan, if available. ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________ If Property is to be Subdivided, Show Division Planned: VI.Estimated Project Costs: Acquisition Costs: A. Land $ ______________ B. Building $ ______________ Construction Costs: A. Renovation or Building Costs:$ ______________ B. On-Site Improvements: Sewer $ ______________ Water $ ______________ Electric $ ______________ Gas $ ______________ Public Streets/Sidewalks $ ______________ See attached preliminary site plan See attached explanation of estimated costs Starostka Group, Unlimited (PID 400149971) Blender, LLC (PID 400149966) 4 Redeveloper intends to construct an approximately 120 unit residential subdivision in multiple phases. The project site is currently vacant and in the need of significant infrastructure improvements to be developable and usable for any purposes. See attached preliminary proposed site plan. The project will consist of three phases of residential development, with subphases as appropriate, and a phase for the construction of Claude Road. The phases are referred to on the site plan as (i) Phase 1, (ii) Phase 2, (iii) Phase 3, and (iv) Claude Road. Grand Island Regular Meeting - 8/10/2022 Page 56 / 129 Form Updated 7-25-2019cn Page | 3 Private Streets $ ______________ Trails $ ______________ Grading/Dirtwork/Fill $ ______________ Demolition $ ______________ Other $ ______________ Total $ ______________ Soft Costs: A. Architectural & Engineering Fees:$ ______________ B. Financing Fees:$ ______________ C. Legal $ ______________ D.Developer Fees:$ ______________ E. Audit Fees $ ______________ F. Contingency Reserves:$ ______________ G. Other (Please Specify)$ ______________ TOTAL $ ______________ Total Estimated Market Value at Completion: $ Source for Estimated Market Value________________________________________ Source of Financing: A. Developer Equity:$ ______________ B. Commercial Bank Loan:$ ______________ C.Tax Credits: 1. N.I.F.A.$ ______________ 2. Historic Tax Credits $ ______________ 3. New Market Tax Credits $ ______________ 4. Opportunity Zone $ ______________ D. Industrial Revenue Bonds:$ ______________ E. Tax Increment Assistance:$ ______________ F. Enhanced Employment Area $ ______________ 32,400,000 $270,000 per unit x 120 residential units Grand Island Regular Meeting - 8/10/2022 Page 57 / 129 Form Updated 7-25-2019cn Page | 4 G. Nebraska Housing Trust Fund $ ______________ H. Other $ ______________ Name, Address, Phone & Fax Numbers of Architect, Engineer and General Contractor: _______________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ____________________________________________________________ Estimated Real Estate Taxes on Project Site Upon Completion of Project: (Please Show Calculations) ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ____________________________________________________________ Project Construction Schedule: Construction Start Date: _________________________________________________ Construction Completion Date: ___________________________________________ If Phased Project: _______________________ Year ______________________ % Complete _______________________ Year ______________________ % Complete _______________________ Year ______________________ % Complete _______________________ Year ______________________ % Complete _______________________ Year ______________________ % Complete _______________________ Year ______________________ % Complete Please see attached explanation There will be approximately 120 residential units. Based on applicant's plan to develop and construct workforce housing, we are assuming an average valuation of approximately $270,000 per unit. There will likely be some difference between units, but the average value of $270,000 and a presumed tax levy of 2.161133 would yield a annual real estate tax of $5,835 per lot. While the construction of the units will be phased, when completed the taxes on the entire project would be approximately $646,200 ($5,385x120) 2022 anticipated 2028 ( would like flexibility until Grand Island Regular Meeting - 8/10/2022 Page 58 / 129 Form Updated 7-25-2019cn Page | 5 XII.Please Attach Construction Pro Forma XIII.Please Attach Annual Income & Expense Pro Forma (With Appropriate Schedules) TAX INCREMENT FINANCING REQUEST INFORMATION Describe Amount and Purpose for Which Tax Increment Financing is Requested: ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ______________________________________________________________ Statement Identifying Financial Gap and Necessity for use of Tax Increment Financing for Proposed Project: ______________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________ Redeveloper is requesting $5,650,000 in TIF over all of the phases of the project. Redeveloper is requesting the TIF bond be issued at 8% interest. TIF would assist with the cost of the infrastructure improvements necessary to develop the project site. This would include approximately: $810,000 in site acquisition, $4,000,000 in infrastructure improvements, $873,000 in architectural, engineering, and legal fees, and 8% interest on the TIF bond. The 8% interest is necessary to justify the long term commitment and risk over the multi-year, multiple phase redevelopment project. See attached addendum for additional information. Applicant desires to develop a residential subdivision with approximately 120 workforce housing units. The goal for the workforce housing units is to keep the average final value at approximately $270,000 per unit. Construction costs are so high right that this will be a challenge. Without the requested TIF assistance, which equates to approximately $83,000 per lot, this would be impossible. A large scale subdivision like the proposed project is simply not possible with the required cost of infrastructure without the assistance of TIF. It would be particularly impossible to build any workforce housing without TIF, because the applicant could never recover its costs, let alone make any profit necessary for the risk involved with this project. Grand Island Regular Meeting - 8/10/2022 Page 59 / 129 Form Updated 7-25-2019cn Page | 6 Municipal and Corporate References (if applicable). Please identify all other Municipalities, and other Corporations the Applicant has been involved with, or has completed developments in, within the last five (5) years, providing contact person, telephone and fax numbers for each: ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ____________________________________ Post Office Box 1968 Grand Island, Nebraska 68802-1968 Phone: 308 385-5240 Fax: 308 385-5423 Email: cnabity@grand-island.com Grand Island Regular Meeting - 8/10/2022 Page 60 / 129 71 79 72 80 65 73 66 74 67 75 68 76 69 77 70 78 58 50 57 49 64 56 63 55 62 54 61 53 60 52 59 51 39 47 40 48 33 41 34 42 35 43 36 44 37 45 38 46 26 18 25 17 32 24 31 23 30 22 29 21 28 20 27 19 114 107 99 OUTLOT A 106 98 120 113 105 97 119 112 104 96 118 111 103 95 117 110 102 94 116 109 101 93 115 108 100 92 81 82 83 84 89 90 9185868788 11 3 10 2 9 1 16 8 15 7 14 6 13 5 12 4 95.1'119.8'95.1'119.6'70.0'120.0'70.0'70.0'120.1'70.0'70.0'120.3'70.0'70.0'120.5'70.0'70.0'120.6'70.0'70.0'120.8'70.0'70.0'121.0'70.0'70.0'121.1'70.0'70.0'121.3'70.0'70.0'121.4'70.0'70.0'121.6'70.0'70.0'121.8'70.0'70.0'121.9'70.0'70.0'122.1'70.0'84.0'122.3'84.0'84.9'118.0'85.2'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'96.6'96.6'118.0' 118.0'96.6'118.0' 118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'85.4'84.8'118.0'85.1'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'70.0'70.0'118.0'97.3'97.3'118.0' 118.0'30.3'1 0 5 .24'51.0' 118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'70.0'118.0'85.3'70.0'130.7'70.0'131.6'70.0'129.8'70.0' 70.0'128.9'70.0'127.7'87.4' 87.7' 80.0'126.9'79.7'125.9'70.0' 70.0'125.0'70.0' 70.0'124.1'70.0' 70.0'123.2'70.0' 70.0'122.3'80.0' 80.0'121.2'120.1'86.0' 86.3' 90.0'56.8'90.0'56.6'50.0'50.0'90.0'50.0'50.0'90.0'50.0'50.0'90.0'50.0'50.0'90.0'50.0'50.0'90.0'50.0'50.0'90.0'50.0'50.0'90.0'50.0'50.0'90.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'50.0'5.3'44.68'50.0'50.21'39.2'60.80'20.89'125.35'164.48'90.7'191.8' 41.9'132.8'53.2 6 '74.7'122.0'23.0'70.0' 70.0'122.1'70.0' 70.0'122.3'70.0' 70.0'122.5'75.0' 75.0'122.7'75.0' 75.0'122.8'80.0' 80.0'123.0'90.0' 90.0' 90.0' 90.0' 90.0' 90.0' 90.0' 90.0' 90.0' 90.0' 91.3' 95.8' 107.2' SHEET REVISIONSNO.REV.DATEREVISIONS DESCRIPTIONproject no.: approved by: checked by: drawn by: drawing no.: QA/QC by: date:www.olsson.comTEL 308.384.8750201 East 2nd StreetGrand Island, NE 68801MILLENNIAL ESTATES SUBDIVISIONPRELIMINARY PLATGRAND ISLAND, NEBRASKA20223LOT LAYOUTSMG BJD BJD 022-00432 5.5.2022 1 of PHASE 1 39 LOTS PHASE 2 39 LOTS PHASE 3 42 LOTS CLAUDE RD13TH ST 120 TOTAL LOTS Grand IslandRegular Meeting - 8/10/2022Page 61 / 129 Explanation of Estimated Costs LAND ACQUISITION: • PID 400149971 was recently acquired for approximately $410,000 • PID 400149966 is under contract and will be acquired for approximately $400,000 TIF USES: Total proposed TIF uses for the Project are approximately $5,650,000: Subdivision Phase 1 $1,613,788 Subdivision Phase 2 $1,521,263 Subdivision Phase 3 $1,321,582 Claude Road $1,192,916 Total $5,649,549 Redeveloper requests a TIF Bond with an interest rate of 8%. The 8% interest rate is necessary for the financing and investment, based on the risk of the large infrastructure investment for the multi-phase project. The TIF uses consist of site acquisition costs, site preparation, utility and infrastructure improvements, and engineering, architectural, and legal fees. The proposed TIF uses by phase are set forth in the chart below: MILLENIAL ESTATES REDEVELOPMENT PROJECT Phase Phase 2 Phase 3 Phase 4 Claude Rd total Lots 39 39 42 0 120 Anticipated Construction Year 2022 2025 2027 2027 n/a TIF Uses (see below) $1,613,788 $1,521,263 $1,321,582 $1,192,916 $5,649,549 TIF USES PAVING / Grading $526,873 $568,590 $561,792 $738,400 $2,395,655 Utilities (Water & Wastewater) $402,339 $320,478 $461,472 $114,400 $1,298,689 Dewatering $57,500 $30,000 $60,000 $0 $147,500 Lighting / Striping $0 $0 $0 $125,000 $125,000 TOTAL INFRASTRUCTURE $986,712 $919,068 $1,083,264 $977,800 $3,966,844 Site Acquisition $410,000 $400,000 $0 $0 $810,000 Survey, Engineering, Legal $217,077 $202,195 $238,318 $215,116 $872,706 Total $1,613,788 $1,521,263 $1,321,582 $1,192,916 $5,649,549 Grand Island Regular Meeting - 8/10/2022 Page 62 / 129 All costs set forth herein are preliminary estimates and will be certified upon completion. Given the current state of labor and materials pricing in the construction industry, it is likely that the prices will continue to increase and will not go down any time soon. OVERALL PROJECT COSTS: In addition to the initial $5,650,000 for public improvements, Applicant will construct 120 residential dwelling units. Because of the unstable cost of labor and materials in the construction industry and the long term construction schedule, it is impossible to determine the construction costs for the private improvements. However, applicant’s goal is to construct workforce housing – targeting an average house valuation of approximately $270,000. Accordingly, the final valuation is anticipated to be approximately $32,400,000 when construction of the entire project is completed, so total construction costs of more than $30,000,000 is a reasonable estimate at this point. Grand Island Regular Meeting - 8/10/2022 Page 63 / 129 Construction Schedule The Project will be built in four (4) phases: three phases of residential units and the Claude Road phase. Each residential phase shall be completed in up to three (3) subphases. The residential phases are referred to herein as Phase 1, Phase 2, and Phase 3. Redeveloper desires to complete the project by the end of 2027. However, Redeveloper desires to built in a little flexibility to account for the unknown market conditions that will affect the project. First, applicant’s desired schedule is set forth below: Completion date Effective Date Phase 1 Subphase 1 12/31/2023 1/1/2024 Subphase 2 12/31/2024 1/1/2025 Phase 2 Subphase 1 12/31/2025 1/1/2026 Subphase 2 12/31/2026 1/1/2027 Phase 3 Subphase 1 12/31/2027 1/1/2028 Subphase 2 12/31/2028 1/1/2029 Claude Road 12/31/2027 n/a Because the construction schedule will depend on market conditions and absorption rate of new home purchases, Redeveloper desires to build a little flexibility into the schedule required by the Redevelopment Agreement. Therefore, while Redeveloper intends to try to complete the project by the desires schedule set forth above, the proposed schedule for the Redevelopment Agreement is set forth below: Completion date Effective Date Phase 1 Subphase 1 12/31/2023 1/1/2024 Subphase 2 12/31/2024 1/1/2025 Subphase 3 12/31/2025 1/1/2026 Phase 2 Subphase 1 12/31/2026 1/1/2027 Subphase 2 12/31/2027 1/1/2028 Subphase 3 12/31/2028 1/1/2029 Phase 3 Subphase 1 12/31/2029 1/1/2030 Subphase 2 12/31/2030 1/1/2031 Subphase 3 12/31/2031 1/1/2032 Claude Road 12/31/2029 n/a Grand Island Regular Meeting - 8/10/2022 Page 64 / 129 Here is a more detailed explanation of the more conservative schedule set forth above: Phase 1 It is anticipated that the infrastructure for Phase 1 will commence in 2022. It will take up to three (3) subphases to complete the 39 residential units consisting of Phase 1. While construction may occur quicker depending on the market, current assumptions are that 1/3 of the units (13 units) will be built each year, such that the Phase 1 schedule will be: • Infrastructure construction: 2022 • 13 homes built: 2023 • 13 homes built: 2024 • 13 homes built: 2025 Phase 2 It is anticipated that the infrastructure for Phase 2 will commence in 2025. It will take up to three (3) subphases to complete the 39 residential units consisting of Phase 2. While construction may occur quicker depending on the market, current assumptions are that 1/3 of the units (13 units) will be built each year, such that the Phase 2 schedule will be: • Infrastructure construction: 2025 • 13 homes built: 2026 • 13 homes built: 2027 • 13 homes built: 2028 Phase 3 It is anticipated that the infrastructure for Phase 3 will commence in 2027 or 2028. It will take up to three (3) subphases to complete the 42 residential units consisting of Phase 3. While construction may occur quicker depending on the market, current assumptions are that 1/3 of the units (14 units) will be built each year, such that the Phase 3 schedule will be: • Infrastructure construction: 2028 • 14 homes built: 2029 • 14 homes built: 2030 • 14 homes built: 2031 Claude Road Claude Road will be constructed by the time the first homes are built for Phase 3. It is intended that this will occur by December 31, 2027, but in no case will this be later than December 31, 2029. 4864-3080-6824, v. 1 Grand Island Regular Meeting - 8/10/2022 Page 65 / 129 Grand Island Regular Meeting - 8/10/2022 Page 66 / 129 Community Redevelopment Authority (CRA) Wednesday, August 10, 2022 Regular Meeting Item I2 Redevelopment Plan Amendment CRA Area 33 - Legacy 34 2023 property proposed for platting as Legacy 34 Second Subdivision located north of Husker Highway and west of Prairie Road Innate Development Staff Contact: Grand Island Regular Meeting - 8/10/2022 Page 67 / 129 Redevelopment Plan Amendment Grand Island CRA Area 33 Amended August 2022 for Legacy 34 2023 The Community Redevelopment Authority (CRA) of the City of Grand Island intends to amend the Redevelopment Plan for Area 33 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 33. Executive Summary: Project Description THE REDEVELOPMENT APPROXIMATELY 200 ACRES OF PROPERTY LOCATED WEST OF PRAIRIEVIEW STREET AND NORTH OF HUSKER HIGHWAY IN SOUTHWESTST GRAND ISLAND FOR THE DEVELOPMENT OF A WALKABLE MIXED USE COMMUNITY (DETACHED SINGLE FAMILY RESIDENTIAL, ATTACHED SINGLE FAMILY RESIDENTIAL, MULTIFAMILY RESIDENTIAL, NEIGHBORHOOD SCALE COMMERICAL, AND RECREATIONAL USES) WHILE PROTECTING PRESERVING AND ENHANCING THE NATURAL WETLANDS ON THE PROPERTY. THIS WILL BE A MULTI- PHASE DEVELOPMENT WITH A REDEVELOPEMENT PLAN AMENDMENT FOR EACH PHASE OF THE DEVELOPMENT TO BE APPROVED SEPARATELY. This is a site specific plan for 14.08 acres and the second phase of this development to be referred to as Legacy 34 2023. The Legacy 34 2023 project is located directly east of the Legacy 34 2022 project and will include civic, commercial multifamily residential single family residential and recreational uses. Amenities for the neighborhood and community including hike bike trail extensions, civic center building and green space will also be a part of the Legacy 34 2023 phase of this development. The use of Tax Increment Financing to aid in redevelopment expenses associated with platting and installing the necessary infrastructure (streets, sanitary sewer, water, and storm sewer) for the development of a 7000 square foot civic building, 150 units of apartments in 10 unit buildings, 4 carriage houses and about 11,000 square foot of commercial space planned for a sports bar, ice cream shop and coffee shop. The use of Tax Increment Financing is an integral part of the development plan and necessary to make this project feasible as presented this was anticipated with the approval of the general development plan for this property in 2022. The proposed development does not maximize the number of units that can be built on the property but maximizes the livability of the neighborhood by creating a walkable neighborhood with a mix of housing types and recreation features scattered throughout the development. It is anticipated that the Legacy 34 2023 phase of this development will take up to 6 years to complete and that the next phase will likely begin before the last of this one has been developed. Grand Island Regular Meeting - 8/10/2022 Page 68 / 129 Innate Development 2, LLC has purchased the full 200 acres that will encompass this development. The property was annexed in 2011.The developer is responsible for and has provided evidence that they can secure adequate debt financing to cover the costs associated with this project. The Grand Island Community Redevelopment Authority (CRA) intends to pledge the ad valorem taxes generated over multiple 15 year periods beginning January 1, 2024 towards the allowable costs and associated financing for redevelopment of this property. TAX INCREMENT FINANCING TO PAY FOR THE REDEVELOPMENT OF THE PROPERTY WILL COME FROM THE FOLLOWING REAL PROPERTY: Property Description (the “Redevelopment Project Area”) Legal Descriptions: Property to be platted as Legacy 34 Second Subdivision in the SE ¼ of the NW ¼ and the E ½ of the SW ¼ and the W ½ of the SE ¼ of 25-11-10 (Parcels 400201089 and 400201097) in the City of Grand Island, Hall County, Nebraska. Grand Island Regular Meeting - 8/10/2022 Page 69 / 129 Existing Land Use and Subject Property Grand Island Regular Meeting - 8/10/2022 Page 70 / 129 The tax increment on Legacy 34 2023 will be captured for the tax years the payments for which become delinquent in years 2024 through 2046 inclusive. The TIF contract will be structured so it can be amended each year for up to six years to add the buildings to be completed during that year. No single building will be eligible for TIF for a period of more than 15 years. The real property ad valorem taxes on the current valuation will continue to be paid to the normal taxing entities. The increase will come from development of the property for a mix of residential and commercial uses in the project area to be permitted as the project progresses. 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 redevelopment contract amendment, consistent with this Redevelopment Plan. The general plan approved in 2021 anticipated that the whole 200 acre project will be developed in several phases with a redevelopment plan amendment specific to each phase of the development. This is the second of the proposed phases and should be referred to as Legacy 34 2023. The Legacy 34 2023 plan anticipates that buildings constructed each year of the development will constitute new effective date for the purposes of determining the period of fifteen years. Improvements for the overall development may be constructed prior to the development of later phases and eligible expenses from those improvements not covered by early phases may be applied to later phases for reimbursement by TIF funds generated in the later phases. 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, Grand Island Regular Meeting - 8/10/2022 Page 71 / 129 whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in whole or in part, the redevelopment project, including the payment of the principal of, premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness. Redevelopment Plan Amendment Complies with the Act: The Community Development Law requires that a Redevelopment Plan and Project consider and comply with a number of requirements. This Plan Amendment meets the statutory qualifications as set forth below. 1. The Redevelopment Project Area has been declared blighted and substandard by action of the Grand Island City Council on August 26, 2021.[§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 and has maintained and amended it since that time. Changes to future land use map in the Grand Island Comprehensive Plan for this project were approved in 2021 with Legacy 34 2022. This phase of the project including the multifamily, single family residential, commercial and civic space is consistent with the planned development for this area shown on the future landuse map as mixed use commercial. The Hall County Regional Planning Commission held a public hearing at their meeting on September 7, 2022 and passed Resolution 2022- 13 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 33 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. Grand Island Regular Meeting - 8/10/2022 Page 72 / 129 c. Future Land Use Plan See the attached map from the 2004 Grand Island Comprehensive Plan. The future land use map for the 2004 plan was amended in 2021 to show the southern portion of this 200 acres as planned for mixed use commercial. Legacy 34 2023 is within the portion planned for mixed use development. This property is in private ownership. [§18-2103(b) and §18-2111] The general plan approved in 2022 anticipated development of 278 single family detached lots, 25 duplex lots, 53 townhouse/condo lots, 300 units of apartments and 6.3 acres of retail and 9 acres of light industrial backing on to the industrial property to the north across the entire 200 acres. The development of this 14 acres is consistent with that original plan. [§18-2111(5)] d. Changes to zoning, street layouts and grades or building codes or ordinances or other Planning changes. The area is zoned R-2 Low Density Residential zone and M-1 Light Manufacturing Zone. The property has historically been farmed a permitted use in both of those districts. The plan for a mixed use neighborhood at this location will require a mix of zoning changes. New streets and storm drainage are planned throughout the site as part of the development in a manner consistent with the existing development. It is anticipated that TIF revenues will offset the costs of those improvements and that some of these improvements may be built. No changes are anticipated in building codes or ordinances. [§18-2103(b) and §18-2111] e. Site Coverage and Intensity of Use The proposed development will meet the coverage and intensity of use requirements for each phase of the development as it is approved. The overall planned density of the project is less than would be permitted with no changes. [§18-2103(b) and §18-2111] f. Additional Public Facilities or Utilities Sanitary sewer and water are available to support this development. Both sanitary sewer and water will need to be extended throughout the site. TIF revenues will be used to offset the cost of these public utility improvements. Electric utilities are sufficient for the proposed use of this property. Electric lines 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] Grand Island Regular Meeting - 8/10/2022 Page 73 / 129 City of Grand Island Future Land Use Map Grand Island Regular Meeting - 8/10/2022 Page 74 / 129 Proposed layout for Legacy 34 2023 Phase of the Proposed Development in blue located to the east of Legacy 34 2022 in red. 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 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. Grand Island Regular Meeting - 8/10/2022 Page 75 / 129 The developer has purchased this property and proposing to use $220,000 of that purchase price as an eligible expense attributed to the Legacy 34 2023 project. For the Legacy 34 2023 phase the estimated costs of utilities including sanitary sewer, water, storm sewer, electric and gas is $1,666,875. Site work and grading is expected to cost $2,612,000. Total cost for paving of public and private streets, public parking, sidewalks and trails is $3,940,214. It is anticipated that planning activities including design, engineering and architecture for the site will be at least $1,300,000 and need to be included in Legacy 34 2022 project costs. Other eligible activities including government fees and expenses and legal and contract expenses are expected to be $100,000. The total of the eligible expenses for this project is estimated by the developer at $9,839,089. 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 Legacy 34 2022 project by granting the sum of $9,839,089 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 2046. 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 Grand Island Regular Meeting - 8/10/2022 Page 76 / 129 conditions. This will accomplish the goal of increasing the number of residential units, commercial development and recreational opportunities 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 Legacy 34 2023 phase will likely be built over a six year period between 2022 and 2028 based on market demand. Excess valuation should be available for the Legacy 34 2023 project for 15 years beginning with the 2024 tax year. Additional phases of development are anticipated for the remainder of the project. It is anticipated that the developers will be including TIF in the capital stack of future phases but each future phase will be evaluated with a site specific redevelopment plan prior to contract approval similar to this one. 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. Between January 1 of 2020 and June of 2022 permits for 547 new housing units had been issued leaving a need for more than 800 additional units in the next 2 years to meet the anticipated need. The current housing market, a combination of the cost of producing housing and the prevailing wages, has not created a situation that gives the markets sufficient incentive to build the number housing units required to meet community needs. This lack of housing options impacts a variety of other areas within the community including work force development, overcrowding, maintenance of residential units and rents. 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 $9,839,089 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 $20,332,911 in private sector financing; a private investment of $2.06 for every TIF and grant dollar investment. Grand Island Regular Meeting - 8/10/2022 Page 77 / 129 Use of Funds. Description TIF Funds Private Funds Total Site Acquisition 220,000$ $ 220,000 Building Costs $ 20,332,911 $ 20,332,911 Sewer $ 388,000 $ 388,000 Water $ 528,875 $ 528,875 Electric $ 725,000 $ 725,000 Gas $ 25,000 $ 25,000 Public Streets/Sidewalks/Plaza $ 1,629,814 $ 1,629,814 Private Streets/Public Parking $ 2,010,400 $ 2,010,400 Trails $ 300,000 $ 300,000 Grading/Dirtwork/Fill $ 2,612,000 $ 2,612,000 Demolition $ - Other $ - Architectural & Engineering Fees $ 1,300,000 $ 1,300,000 Financing Fees $ 25,000 $ 25,000 Legal $ 50,000 $ 50,000 Developer Fees $ - Audit Fees $ 25,000 $ 25,000 Contingency Reserve $ - Other $ - Total $ 9,839,089 $ 20,332,911 $ 30,172,000 Source of Funds Tax Revenue. The 14.08 acres of this site to be redeveloped as Legacy 34 2022 is anticipated to have a January 1, 2022, valuation of approximately $41,325 based on the per acre valuation of the current parcel. Based on the 2021 levy this would result in a real property tax of approximately $853. It is anticipated that the assessed value will increase by $30,172,000 upon full completion, as a result of the site redevelopment. This development will result in an estimated tax increase of over $655,939 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 2023 assessed value (14.08 acres): $ 41,235 Estimated value after completion $ 30,213,235 Increment value $ 30,172,000 Annual TIF generated (estimated) $ 655,939 TIF bond issue $ 9,839,089 Grand Island Regular Meeting - 8/10/2022 Page 78 / 129 (a) Tax shifts resulting from the approval of the use of Tax Increment Financing; The redevelopment project area currently has an estimated valuation of $41,235. The proposed redevelopment will create additional valuation of $30,172,000 over the course of the next six years. The project creates additional valuation that will support taxing entities long after the project is paid off along with providing 154 additional housing units, neighborhood commercial space and recreational trail connections and opportunities. The tax shift from this project will be equal to the total of the bond principal of $9,839,089 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 is likely to result in a larger number of students in the Gates Elementary School service area. Fire and police protection are available and should not be negatively impacted by this development though there will be some increased need for officers and fire fighters as the City continues to grow whether from this project or others. Housing of the type proposed in Legacy 34 2023 (1 and 2 bedroom apartments) is less likely to attract families to the neighborhood than the single family detached housing proposed for later phases of this project. Overall there will be a net increase in the number of students attending the Grand Island Public School system as a result of this development. (c) Impacts on employers and employees of firms locating or expanding within the boundaries of the area of the redevelopment project; This will provide additional housing options for the residents of Grand Island. The National Homebuilders Association estimates that each new single family home is the equivalent of 2.5 full time equivalent jobs and each unit of multifamily housing results in an FTE of 1.16 job. An average of 25 apartments and 1 carriage house would produce about 31 FTE’s per year for the next 6 years plus additional FTE’s for the commercial space that is proposed. (d) Impacts on other employers and employees within the city or village and the immediate area that are located outside of the boundaries of the area of the redevelopment project; and This project will not have a negative impact on other employers different from any other expanding business within the Grand Island area. Grand Island does have tight labor market and part of that is due to the availability and cost of housing. This development may help alleviate some of those pressures. Grand Island Regular Meeting - 8/10/2022 Page 79 / 129 (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. 173 additional households would house 402 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 77 school age children generated by this development. Given the nature of the units (150- 1 and 2 bedroom apartments) proposed for Legacy 34 2023 these numbers are likely to be significantly less than for detached single family development. If this develops at a rate of 25 unit per year for 6 years approximately 13 children could be added to the school age population every year with this development. These 13 children will likely be spread over the full school age population from elementary to secondary school. According to the National Center for Educational Statistics1 the 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 August 4, 2022 that the CRA would be considering this application at their August 10, 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 1300 new dwelling units by 2024. Based on the permits between January of 2020 and June of 2022 there are 547 units of housing that have been permitted. More than 750 units still need to be built before the end of 2024 to meet the projected need. 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 the Legacy 34 2023 project is anticipated to be completed during between the Spring of 2023 and the end of 2028. The base tax year should be calculated on the value of the property as of January 1, 2023 for the first phase with each phase based on the preceding year’s valuation of the property included in the amendment for that year. 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 $9,839,089 the projected amount of increment based upon the anticipated value of the project and current tax rate. 1 https://nces.ed.gov/ccd/districtsearch/district_detail.asp?ID2=3100016 Grand Island Regular Meeting - 8/10/2022 Page 80 / 129 This is the second phase of this development just over 42 acres of the full 200 acres will be subject to redevelopment contracts upon final approval of this plan and the associated contracts. It is anticipated that full development of the 200 acre site will take a minimum of 15 years thought it could take as long as 30 or more based on average development in Grand Island. Each additional project will be brought forward as an amendment in a format similar to this amendment. Grand Island Regular Meeting - 8/10/2022 Page 81 / 129 Form Updated 7-25-2019cn Page | 1 BACKGROUND INFORMATION RELATIVE TO TAX INCREMENT FINANCING REQUEST Project Redeveloper Information Business Name: ______________________________________________________________ Address: _______________________________________________________________ Telephone No.: __________________________ Fax No.: _______________ Email: _________________________________________________________ Contact: _______________________________________________________________ Application Submission Date: Brief Description of Applicant’s Business:__ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________ Legal Description/Address of Proposed Project Community Redevelopment Area Number ________ Grand Island Regular Meeting - 8/10/2022 Page 82 / 129 Form Updated 7-25-2019cn Page | 2 Present Ownership Proposed Project Site: ________________________________________________________________ _____________________________________ Is purchase of the site contingent on Tax Increment Financing Approval? Yes No Proposed Project: Building square footage, size of property, description of buildings – materials, etc. Please attach site plan, if available. ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________ If Property is to be Subdivided, Show Division Planned: VI. Estimated Project Costs: Acquisition Costs: A. Land $ ______________ B. Building $ ______________ Construction Costs: A. Renovation or Building Costs: $ ______________ B. On-Site Improvements: Sewer $ ______________ Water $ ______________ Electric $ ______________ Gas $ ______________ Public Streets/Sidewalks $ ______________ Grand Island Regular Meeting - 8/10/2022 Page 83 / 129 Form Updated 7-25-2019cn Page | 3 Private Streets $ ______________ Trails $ ______________ Grading/Dirtwork/Fill $ ______________ Demolition $ ______________ Other $ ______________ Total $ ______________ Soft Costs: A. Architectural & Engineering Fees: $ ______________ B. Financing Fees: $ ______________ C. Legal $ ______________ D. Developer Fees: $ ______________ E. Audit Fees $ ______________ F. Contingency Reserves: $ ______________ G. Other (Please Specify) $ ______________ TOTAL $ ______________ Total Estimated Market Value at Completion: $ Source for Estimated Market Value________________________________________ Source of Financing: A. Developer Equity: $ ______________ B. Commercial Bank Loan: $ ______________ C. Tax Credits: 1. N.I.F.A. $ ______________ 2. Historic Tax Credits $ ______________ 3. New Market Tax Credits $ ______________ 4. Opportunity Zone $ ______________ D. Industrial Revenue Bonds: $ ______________ E. Tax Increment Assistance: $ ______________ F. Enhanced Employment Area $ ______________ Grand Island Regular Meeting - 8/10/2022 Page 84 / 129 Form Updated 7-25-2019cn Page | 4 G. Nebraska Housing Trust Fund $ ______________ H. Other $ ______________ Name, Address, Phone & Fax Numbers of Architect, Engineer and General Contractor: _______________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ____________________________________________________________ Estimated Real Estate Taxes on Project Site Upon Completion of Project: (Please Show Calculations) ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ____________________________________________________________ Project Construction Schedule: Construction Start Date: _________________________________________________ Construction Completion Date: ___________________________________________ If Phased Project: _______________________ Year ______________________ % Complete _______________________ Year ______________________ % Complete _______________________ Year ______________________ % Complete _______________________ Year ______________________ % Complete _______________________ Year ______________________ % Complete _______________________ Year ______________________ % Complete Grand Island Regular Meeting - 8/10/2022 Page 85 / 129 Form Updated 7-25-2019cn Page | 5 XII. Please Attach Construction Pro Forma XIII. Please Attach Annual Income & Expense Pro Forma (With Appropriate Schedules) TAX INCREMENT FINANCING REQUEST INFORMATION Describe Amount and Purpose for Which Tax Increment Financing is Requested: ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ______________________________________________________________ Statement Identifying Financial Gap and Necessity for use of Tax Increment Financing for Proposed Project: ______________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________ Grand Island Regular Meeting - 8/10/2022 Page 86 / 129 Form Updated 7-25-2019cn Page | 6 Municipal and Corporate References (if applicable). Please identify all other Municipalities, and other Corporations the Applicant has been involved with, or has completed developments in, within the last five (5) years, providing contact person, telephone and fax numbers for each: ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ____________________________________ Post Office Box 1968 Grand Island, Nebraska 68802-1968 Phone: 308 385-5240 Fax: 308 385-5423 Email: cnabity@grand-island.com Grand Island Regular Meeting - 8/10/2022 Page 87 / 129 Grand IslandRegular Meeting - 8/10/2022Page 88 / 129 Grand Island Regular Meeting - 8/10/2022 Page 89 / 129 Grand Island Regular Meeting - 8/10/2022 Page 90 / 129 Grand Island Regular Meeting - 8/10/2022 Page 91 / 129 Grand Island Regular Meeting - 8/10/2022 Page 92 / 129 Grand Island Regular Meeting - 8/10/2022 Page 93 / 129 Grand Island Regular Meeting - 8/10/2022 Page 94 / 129 Grand Island Regular Meeting - 8/10/2022 Page 95 / 129 Legacy 34 2023 Area 33 COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA RESOLUTION NO. 399 RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA, SUBMITTING A PROPOSED REDEVELOPMENT CONTRACT TO THE HALL COUNTY REGIONAL PLANNING COMMISSION FOR ITS RECOMMENDATION WHEREAS, this Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), pursuant to the Nebraska Community Development Law (the "Act"), prepared a proposed redevelopment plan (the "Plan") a copy of which is attached hereto as Exhibit 1, for redevelopment of an area within the city limits of the City of Grand Island, Hall County, Nebraska; and WHEREAS, the Authority is required by Section 18-2112 of the Act to submit said to the planning board having jurisdiction of the area proposed for redevelopment for review and recommendation as to its conformity with the general plan for the development of the City of Grand Island, Hall County, Nebraska; NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: The Authority submits to the Hall County Regional Planning Commission the proposed Plan attached to this Resolution, for review and recommendation as to its conformity with the general plan for the development of the City of Grand Island, Hall County, Nebraska. Passed and approved this 10th day of August, 2022 COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA. By___________________________ Chairperson ATTEST: __________________________ Secretary Grand Island Regular Meeting - 8/10/2022 Page 96 / 129 Legacy 34 2023 Area 33 COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA RESOLUTION NO. 400 RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA, PROVIDING NOTICE OF INTENT TO ENTER INTO A REDEVELOPMENT CONTRACT AFTER THE PASSAGE OF 30 DAYS AND OTHER MATTERS WHEREAS, this Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), has received an Application for Tax Increment Financing under the Nebraska Community Development Law (the “Act”) on a project within Redevelopment Area 33, from Innate Development LLC, (The "Developer") for redevelopment of property proposed for platting as Legacy 34 Second Subdivision located in the E ½ of the SE ¼ of 25-11-10 east of the Prairieview Street and north of Husker Highway, an area within the city limits of the City of Grand Island, as set forth in Exhibit 1 attached hereto; and WHEREAS, this Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), is proposing to use Tax Increment Financing on a project within Redevelopment Area 33; NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: Section 1. In compliance with section 18-2114 of the Act, the Authority hereby gives the governing body of the City notice that it intends to enter into the Redevelopment Contract, after approval of the redevelopment plan amendment related to the redevelopment project, and after the passage of 30 days from the date hereof. Section 2. The Secretary of the Authority is directed to file a copy of this resolution with the City Clerk of the City of Grand Island, forthwith. Passed and approved this 10th day of August, 2022. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA. By ___________________________ Chairperson ATTEST: ___________________ Secretary Grand Island Regular Meeting - 8/10/2022 Page 97 / 129 Legacy 34 2023 Area 33 Exhibit 1 Draft Redevelopment Plan Forwarded to the Planning Commission Grand Island Regular Meeting - 8/10/2022 Page 98 / 129 COMMUNITY REDEVELOPMENT AUTHORITY August 5, 2022 Dr. Ken Schroeder Chief Financial Officer Grand Island Public Schools 123 S. Webb Road P.O. Box 4904 Grand Island, NE 68802-4904 Dear Dr. Schroeder, This letter is to inform you that the Community Redevelopment Authority (CRA) of the City of Grand Island has received an application requesting Tax Increment Financing (TIF) for a upper level apartments and renovated commercial space at 124 W. 3rd Street. The application seeks $123,400 in TIF assistance for the development of the 3 units of upper story housing. It is estimated that this development will take place over the next year. At present, the proposed timeline for approval would be as follows: CRA receives initial application, 4 p.m., August 10. Regional Planning Commission holds public hearing 6 p.m., September 7. CRA reviews Planning Commission recommendation, 4 p.m. September 22. Grand Island City Council holds public hearing and takes action, 7 p.m., October 11. CRA considers redevelopment contract, 4 p.m. on or after October 12. Additional notification will be provided to the school board via certified mail prior to the public hearings before both planning commission and council. Should you have any questions or comments, please call me at (308) 385-5240. Sincerely, Chad Nabity, AICP Director Grand Island Regular Meeting - 8/10/2022 Page 99 / 129 Community Redevelopment Authority (CRA) Wednesday, August 10, 2022 Regular Meeting Item I3 Redevelopment Plan Amendment CRA Area 1 - 124 W. 3rd - Street Living Waters LLC - Staff Contact: Grand Island Regular Meeting - 8/10/2022 Page 100 / 129 Redevelopment Plan Amendment Grand Island CRA Area 1 August 2022 The Community Redevelopment Authority (CRA) of the City of Grand Island intends to amend the Redevelopment Plan for Area 1 with in the city, pursuant to the Nebraska Community Development Law (the “Act”) and provide for the financing of a specific infrastructure related project in Area 1. Executive Summary: Project Description THE REDEVELOPMENT OF THE BUILDING LOCATED AT 124 W 3RD STREET FOR RESIDENTIAL AND COMMERCIAL USES, INCLUDING FIRE/LIFE SAFETY IMPROVEMENTS AND BUILDING REHABILITATION AND REMODELING. The use of Tax Increment Financing to aid in rehabilitation expenses associated with redevelopment of the entire building located at 124 W. 3rd Street. The developer is proposing to a mixed used project with commercial retail space on the first floor and upper story residential at this location. This project would not be feasible without the use of TIF. LIVING WATERS, LLC purchased the property for $390,000. The purchase price is included as an eligible TIF activity. The developer is responsible for and has provided evidence that they can secure adequate debt financing to cover the costs associated with the remodeling and rehabilitation of this building. The Grand Island Community Redevelopment Authority (CRA) intends to pledge the ad valorem taxes generated over the 15 year period beginning January 1, 2024 towards the allowable costs and associated financing for rehabilitation. TAX INCREMENT FINANCING TO PAY FOR THE REHABILITATION OF THE PROPERTY WILL COME FROM THE FOLLOWING REAL PROPERTY: Property Description (the “Redevelopment Project Area”) The property is located at 124 W. 3rd Street in Grand Island Nebraska, the attached map identifies the subject property and the surrounding land uses. Legal Descriptions: The South 44.5 feet of Lot Five (5) in Block Fifty-Five (55) in the Original Town, now City of Grand Island, Hall County, Nebraska. Grand Island Regular Meeting - 8/10/2022 Page 101 / 129 Existing Land Use and Subject Property Grand Island Regular Meeting - 8/10/2022 Page 102 / 129 The tax increment will be captured for the tax years the payments for which become delinquent in years 2024 through 2038 inclusive. The real property ad valorem taxes on the current valuation will continue to be paid to the normal taxing entities. The increase will come from rehabilitation of this portion of the building for commercial and residential uses as permitted in the B3 Heavy Business Zoning District. Statutory Pledge of Taxes. In accordance with Section 18-2147 of the Act and the terms of the Resolution providing for the issuance of the TIF Note, the Authority hereby provides that any ad valorem tax on the Redevelopment Project Area for the benefit of any public body be divided for a period of fifteen years after the effective date of this provision as set forth in the Redevelopment Contract, consistent with this Redevelopment Plan. Said taxes shall be divided as follows: a. That portion of the ad valorem tax which is produced by levy at the rate fixed each year by or for each public body upon the redevelopment project valuation shall be paid into the funds, of each such public body in the same proportion as all other taxes collected by or for the bodies; and b. That portion of the ad valorem tax on real property in the redevelopment project in excess of such amount, if any, shall be allocated to and, when collected, paid into a special fund of the Authority to pay the principal of; the interest on, and any premiums due in connection with the bonds, loans, notes, or advances on money to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such Authority for financing or refinancing, in whole or in part, a redevelopment project. When such bonds, loans, notes, advances of money, or indebtedness including interest and premium due have been paid, the Authority shall so notify the County Assessor and County Treasurer and all ad valorem taxes upon real property in such redevelopment project shall be paid into the funds of the respective public bodies. Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged to the repayment of loans or advances of money, or the incurring of any indebtedness, whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in whole or in part, the redevelopment project, including the payment of the principal of, premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness. Redevelopment Plan Amendment Complies with the Act: The Community Development Law requires that a Redevelopment Plan and Project consider and comply with a number of requirements. This Plan Amendment meets the statutory qualifications as set forth below. Grand Island Regular Meeting - 8/10/2022 Page 103 / 129 1. The Redevelopment Project Area has been declared blighted and substandard by action of the Grand Island City Council on December 19, 2000.[§18-2109] Such 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 September 7, 2022 and passed Resolution 2022-14 confirming that this project is consistent with the Comprehensive Plan for the City of Grand Island. 3. The Redevelopment Plan must be sufficiently complete to address the following items: [§18-2103(13) (b)] a. Land Acquisition: The Redevelopment Plan for Area 1 provides for real property acquisition and this plan amendment does not prohibit such acquisition. The developer has acquired the property and will be including acquisition as an eligible activity. There is no proposed acquisition by the authority. b. Demolition and Removal of Structures: The project to be implemented with this plan does not provide for the demolition and removal any structures on this property. Demotion of internal structures to accommodate the redevelopment is anticipated and permitted. c. Future Land Use Plan See the attached map from the 2004 Grand Island Comprehensive Plan. All of the area around the site in private ownership is planned for Downtown Commercial development; this includes housing and commercial uses within the same structure. This property is in private ownership. [§18-2103(b) and §18-2111] The attached map also is an accurate site plan of the area after redevelopment. [§18-2111(5)] Grand Island Regular Meeting - 8/10/2022 Page 104 / 129 City of Grand Island Future Land Use Map Grand Island Regular Meeting - 8/10/2022 Page 105 / 129 d. Changes to zoning, street layouts and grades or building codes or ordinances or other Planning changes. The area is zoned B3-Heavy Business zone. No zoning changes are anticipated with this project. No changes are anticipated in street layouts or grades. No changes are anticipated in building codes or ordinances. Nor are any other planning changes contemplated. [§18-2103(b) and §18-2111] e. Site Coverage and Intensity of Use The developer is rehabilitating the existing building. The developer is not proposing to increase the size of the building and current building meets the applicable regulations regarding site coverage and intensity of use. [§18-2103(b) and §18-2111] f. Additional Public Facilities or Utilities Sewer and water are available to support this development. Electric utilities are sufficient for the proposed use of this building. No other utilities would be impacted by the development. The developer will be responsible for replacing any sidewalks damaged during construction of the project. No other utilities would be impacted by the development. [§18-2103(b) and §18-2111] 4. The Act requires a Redevelopment Plan provide for relocation of individuals and families displaced as a result of plan implementation. This property is vacant and has not been used for any residential purposes. [§18-2103.02] 5. No member of the Authority, nor any employee thereof holds any interest in any property in this Redevelopment Project Area. [§18-2106] No members of the authority or staff of the CRA have any interest in this property. 6. Section 18-2114 of the Act requires that the Authority consider: a. Method and cost of acquisition and preparation for redevelopment and estimated proceeds from disposal to redevelopers. The developer purchased the property for $390,000. The estimated costs of rehabilitation of this property is $401,573. Other construction and soft costs are $39,792. Legal, Developer and Audit Fees of $13,500 for reimbursement to the City and the CRA for costs to prepare the contract and monitor the project over the course of the development are included in the eligible expenses. The total of eligible expenses for this project exceeds $844,465. No property will be transferred to redevelopers by the Authority. The developer will provide and secure all necessary financing. Grand Island Regular Meeting - 8/10/2022 Page 106 / 129 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 $123,400 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 2038. c. Statement of feasible method of relocating displaced families. No families will be displaced as a result of this plan. 7. Section 18-2113 of the Act requires: Prior to recommending a redevelopment plan to the governing body for approval, an authority shall consider whether the proposed land uses and building requirements in the redevelopment project area are designed with the general purpose of accomplishing, in conformance with the general plan, a coordinated, adjusted, and harmonious development of the city and its environs which will, in accordance with present and future needs, promote health, safety, morals, order, convenience, prosperity, and the general welfare, as well as efficiency and economy in the process of development, including, among other things, adequate provision for traffic, vehicular parking, the promotion of safety from fire, panic, and other dangers, adequate provision for light and air, the promotion of the healthful and convenient distribution of population, the provision of adequate transportation, water, sewerage, and other public utilities, schools, parks, recreational and community facilities, and other public requirements, the promotion of sound design and arrangement, the wise and efficient expenditure of public funds, and the prevention of the recurrence of insanitary or unsafe dwelling accommodations or conditions of blight. The Authority has considered these elements in proposing this Plan Amendment. This amendment, in and of itself will promote consistency with the Comprehensive Plan. This will have the intended result of preventing recurring elements of unsafe buildings and blighting conditions. This will accomplish the goal of both the Railside Business Improvement District and the Grand Island City Council of refurbishing street level commercial space and increasing the number of residential units available in the Downtown area that has been underutilized for several years. 8. Time Frame for Development Development of this project is anticipated to be completed by October 2023. Excess valuation should be available for this project for 15 years beginning with the 2024 tax year. 9. Justification of Project This building in downtown Grand Island was built in 1915 and will be preserved with this project. The mixed use of commercial space and residential units is consistent with the long term development plans for Downtown. 10. Cost Benefit Analysis Section 18-2113 of the Act, further requires the Authority conduct a cost benefit analysis of the plan amendment in the event that Tax Increment Grand Island Regular Meeting - 8/10/2022 Page 107 / 129 Financing will be used. This analysis must address specific statutory issues. As authorized in the Nebraska Community Development Law, §18-2147, Neb. Rev. Stat. (2012), the City of Grand Island has analyzed the costs and benefits of the proposed Redevelopment Project, including: Project Sources and Uses. Approximately $123,400 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 $721,465 in private sector financing; a private investment of $5.84 for every TIF dollar invested. Use of Funds Source of Funds Description TIF Funds Private Funds Total Site Acquisition $123,400 $266,600 $390,000 Renovation Costs $401,573 $401,573 Contingency $20,079 $20,079 Architectural & Engineering $7,900 $7,900 Financing fees/ audit $11,813 $11,813 Legal/ TIF contract $13,500 $13,500 Total $123,400 $721,465 $844,365 Tax Revenue. The property to be redeveloped is anticipated to have a January 1, 2024, valuation of approximately $219,769. Based on the 2021 levy this would result in a real property tax of approximately $4,765. It is anticipated that the assessed value will increase by $331,326 upon full completion, as a result of the site redevelopment. This development will result in an estimated tax increase of over $184,7 annually. The tax increment gained from this Redevelopment Project Area would not be available for use as city general tax revenues, for a period of 15 years, or such shorter time as may be required to amortize the TIF bond, but would be used for eligible private redevelopment costs to enable this project to be realized. Estimated 2021 assessed value: $219,769 Estimated value after completion $551,095 Increment value $331,326 Annual TIF generated (estimated)$$7,184 TIF bond issue $123,400 (a) Tax shifts resulting from the approval of the use of Tax Increment Financing; The redevelopment project area currently has an estimated valuation of $219,769. The proposed redevelopment will create additional valuation of $331,326. No tax shifts are anticipated from the project outside of the use of TIF to support the redevelopment. It is not anticipate that any additional tax burdens will be assumed by public entities as a result of this project. The project creates additional valuation that will support taxing entities long after the project is paid off. Grand Island Regular Meeting - 8/10/2022 Page 108 / 129 (b) Public infrastructure and community public service needs impacts and local tax impacts arising from the approval of the redevelopment project; No additional public service needs have been identified. Existing water and waste water facilities will not be impacted by this development. The electric utility has sufficient capacity to support the development. It is not anticipated that this will impact schools in any significant way. Fire and police protection are available and should not be negatively impacted by this development. The addition of life safety elements to this building including fire sprinklers and a second exit actually reduce the chances of negative impacts to the fire department. (c) Impacts on employers and employees of firms locating or expanding within the boundaries of the area of the redevelopment project; This will provide additional residential and commercial space options in the downtown area consistent with the planned development in Downtown Grand Island. (d) Impacts on other employers and employees within the city or village and the immediate area that are located outside of the boundaries of the area of the redevelopment project; and This project will not have a negative impact on other employers in any manner different from any other expanding business within the Grand Island area. This will provide refurbish Downtown residential and commercial space options for residents and business owners who wish to relocate to the Downtown area. (e) Impacts on student populations of school districts within the City or Village: This development will have a minimal impact on the Grand Island School system as it will likely not result in any increased attendance. The majority of the units to be developed with this project is a two bedroom unit and unlikely to be a family unit, especially for families with school age children. The average number of persons per household in Grand Island for 2015 to 2019 according the American Community Survey is 2.61. According to the 2010 census 19.2% of the population of Grand Island was between the ages of 5 and 18. 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 a maximum of one school age child generated by this development though that is mitigated by the fact that there are 2 small 2 bedroom units and a single 1 bedroom unit.. (f) Any other impacts determined by the authority to be relevant to the consideration of costs and benefits arising from the redevelopment project. This project is consistent the goals of the Council, the Downtown BID, the CRA, and Grow Grand Island to create additional upgraded residential and commercial spaces within downtown Grand Island. Grand Island Regular Meeting - 8/10/2022 Page 109 / 129 Time Frame for Development Development of this project is anticipated to be completed October 2023. The base tax year should be calculated on the value of the property as of January 1, 2024. Excess valuation should be available for this project for 15 years beginning in 2024 with taxes due in 2024. 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 $123,400 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 $721,465.on TIF eligible activities in excess of other grants given. Grand Island Regular Meeting - 8/10/2022 Page 110 / 129 Form Updated 7-25-2019cn Page | 1 BACKGROUND INFORMATION RELATIVE TO TAX INCREMENT FINANCING REQUEST Project Redeveloper Information Business Name: Living Waters LLC Address: 320 Sunflower Circle, Grand Island NE 68803 Telephone No.: 308-390-5925 Fax No.: Email:m3joslyn@gmail.com Contact: Michaela Goosic Application Submission Date: 7/1/22 Brief Description of Applicant’s Business: Legal Description/Address of Proposed Project ORIGINAL TOWN S 44.5' LT 5 BLK 55 Community Redevelopment Area Number Grand Island Regular Meeting - 8/10/2022 Page 111 / 129 Form Updated 7-25-2019cn Page | 2 Present Ownership Proposed Project Site: Living Waters LLC Is purchase of the site contingent on Tax Increment Financing Approval? Yes No Proposed Project: Building square footage, size of property, description of buildings – materials, etc. Please attach site plan, if available. Commercial/residnetial mixed use building, see attached If Property is to be Subdivided, Show Division Planned: VI. Estimated Project Costs: Acquisition Costs: A. Land $ B. Building $ 390,000 Construction Costs: A. Renovation or Building Costs: $ 401,573 B. On-Site Improvements: Sewer $ Water $ Electric $ Gas $ Public Streets/Sidewalks $ Private Streets $ Trails $ Grading/Dirtwork/Fill $ Demolition $ Grand Island Regular Meeting - 8/10/2022 Page 112 / 129 Form Updated 7-25-2019cn Page | 3 Other $ Total Soft Costs: $ 401,573 A. Architectural & Engineering Fees: $ 7,900 B. Financing Fees: $ 11,813 C. Legal $ 13,500 D. Developer Fees: $ E. Audit Fees $ F. Contingency Reserves: $ 20,079 G. Other (Please Specify) $ TOTAL $ 53,291 Total Estimated Market Value at Completion: $ Source for Estimated Market Value Source of Financing: A. Developer Equity: B. Commercial Bank Loan: C. Tax Credits: $ 157,090 $ 687,774 1. N.I.F.A. $ 2. Historic Tax Credits $ 3. New Market Tax Credits $ 4. Opportunity Zone $ D. Industrial Revenue Bonds: $ E. Tax Increment Assistance: $ F. Enhanced Employment Area $ Grand Island Regular Meeting - 8/10/2022 Page 113 / 129 Form Updated 7-25-2019cn Page | 4 G. Nebraska Housing Trust Fund $ H. Other $ 844,864 Name, Address, Phone & Fax Numbers of Architect, Engineer and General Contractor: Living Waters LLC, 320 Sunflower Circle, Grand Island NE 68803 Mike Spilinek, Olsson Associates 201 E. Second Street Grand Island, NE 68801 Architect: Toby Gay, Gay and Associates, 1470 31st ave. Columbus Ne 68601 Estimated Real Estate Taxes on Project Site Upon Completion of Project: (Please Show Calculations) Project Construction Schedule: Construction Start Date: Oct 22 Construction Completion Date: Oct 23 If Phased Project: Year % Complete Year % Complete Year % Complete Year % Complete Year % Complete Year % Complete Grand Island Regular Meeting - 8/10/2022 Page 114 / 129 Form Updated 7-25-2019cn Page | 5 XII. Please Attach Construction Pro Forma XIII. Please Attach Annual Income & Expense Pro Forma (With Appropriate Schedules) TAX INCREMENT FINANCING REQUEST INFORMATION Describe Amount and Purpose for Which Tax Increment Financing is Requested: Living Waters LLC is asking for $123,400 worth of tax increment financing. The TIF funds will be used to make the project a success. Statement Identifying Financial Gap and Necessity for use of Tax Increment Financing for Proposed Project: As the attached proforma’s show, given the risk of today’s markets, without TIF the project does not have a high enough return (see the DSCR on the attached proforma) for the risk that is being taken. Grand Island Regular Meeting - 8/10/2022 Page 115 / 129 Form Updated 7-25-2019cn Page | 6 Municipal and Corporate References (if applicable). Please identify all other Municipalities, and other Corporations the Applicant has been involved with, or has completed developments in, within the last five (5) years, providing contact person, telephone and fax numbers for each: Post Office Box 1968 Grand Island, Nebraska 68802-1968 Phone: 308 385-5240 Fax: 308 385-5423 Email: cnabity@grand-island.com Grand Island Regular Meeting - 8/10/2022 Page 116 / 129 PROFORMA 124 W 3rd With TIF EXPENSES USE OF FUNDS TOTAL Property Taxes $3,862 PURCHASE OF BUILDING $390,000 BID Taxes $432 CONSTRUCTION $401,573 Parking Taxes $330 CONTINGENCY 5%$20,079 Insurance $1,700 TENANT ALLOWANCE $0 Utilities $0 ARCHITECT/ENGINEER $7,900 Management $2,927 SOFT COSTS $25,313 Maintnance $2,927 TOTAL $844,864 Total $12,179 SOURCE OF FUNDS BANK 2220 $687,774 Debt Service Façade Grant 1431 $0 X 1421 $0 Loan amount 687,774$ X 1327 $0 Annual interest rate 5.750% X $0 Loan period in years 15 OWNER EQUITY (20% of appraised value)$157,090 TOTAL $844,864 Monthly payment 5,711$ Soft costs OPERATING PROFORMA ANNUAL RENTAL INCOME Annual Monthly TIF fee $7,000 0 Consultant $3,500 s.f.$/s.f.Interest $11,813 Commercial 2946 15 $44,190 $3,683 Misc $3,000 Basement 2946 3 $8,838 $737 Residential 2970 15 $44,550 $3,713 $25,313 1431 Construction 4968 S.F.$/S.F. GROSS INCOME $97,578 2970 $135 $401,573 s Actual CAP 11.99% VACANCY $2,927 3.0%Cap Rate 10.5% DSCR 1.20 EXPENSES $12,179 12.5%NOI $82,472 $15,106 Appraisal $785,449 LTV 20%$157,090 NET OPERATING INCOME $82,472 Equity $97,675 DEBT SERVICE $68,536 Cash $59,415 CASH FLOW $13,936 DSCR 1.20 Grand Island Regular Meeting - 8/10/2022 Page 117 / 129 PROFORMA 124 W 3rd Without TIF EXPENSES USE OF FUNDS TOTAL Property Taxes $12,089 PURCHASE OF BUILDING $390,000 BID Taxes $432 CONSTRUCTION $401,573 Parking Taxes $330 CONTINGENCY 7%$20,079 Insurance $1,700 TENANT ALLOWANCE $0 Utilities $0 ARCHITECT/ENGINEER $7,900 Management $2,927 SOFT COSTS $25,313 Maintnance $2,927 TOTAL $844,864 Total $20,405 SOURCE OF FUNDS BANK 2220 $703,444 Debt Service Façade Grant 1431 $0 X 1421 $0 Loan amount $703,444 X 1327 $0 Annual interest rate 5.750% X $0 Loan period in years 15 OWNER EQUITY (20% of appraised value)$141,420 TOTAL $844,864 Monthly payment 5,841$ Soft costs OPERATING PROFORMA ANNUAL RENTAL INCOME Annual Monthly TIF fee $7,000 0 Consultant $3,500 s.f.$/s.f.Interest $11,813 Commercial 2946 15 $44,190 $3,683 Misc $3,000 Basement 2946 3 $8,838 $737 Residential 2970 15 $44,550 $3,713 $25,313 1431 Construction 4968 S.F.$/S.F. GROSS INCOME $97,578 2970 $135 $401,573 s Actual CAP 10.55% VACANCY $2,927 3.0%Cap Rate 10.5% DSCR 1.06 EXPENSES $20,405 20.9%NOI $74,245 $23,333 Appraisal $707,100 LTV 20%$141,420 NET OPERATING INCOME $74,245 Equity $3,656 DEBT SERVICE $70,098 Cash $137,764 CASH FLOW $4,148 DSCR 1.06 Grand Island Regular Meeting - 8/10/2022 Page 118 / 129 Grand Island Regular Meeting - 8/10/2022 Page 119 / 129 Grand Island Regular Meeting - 8/10/2022 Page 120 / 129 Grand Island Regular Meeting - 8/10/2022 Page 121 / 129 Grand IslandRegular Meeting - 8/10/2022Page 122 / 129 Estimated Project Costs: Acquisition Costs: A. Land $0 B. Building $390,000 Construction Costs: A. Renovation or Building Costs:$401,573 B. On-Site Improvements: Sewer $0 Water $0 Electric $0 Gas $0 Public Streets/Sidewalks $0 Private Streets $0 Trails $0 Grading/Dirtwork/Fill $0 Demolition $0 Other: Parks/Public Space $0 Total $401,573 Soft Costs: A. Architectural & Engineering Fees:$7,900 B. Financing Fees: Construction $11,813 C. Legal $13,500 D. Developer Fees:$0 E. Audit Fees $0 F. Contingency Reserves:$20,079 G. Other: TIF fees/Misc fees $0 TOTAL $53,291 Total Estimated Market Value at Completion:$785,449 Source of Financing: A. Developer Equity:157,090$ B. Commercial Bank Loan:687,774$ E. Tax Increment Assistance:-$ H. Other: Façade grant -$ Total 844,864$ Grand Island Regular Meeting - 8/10/2022 Page 123 / 129 Grand Island Regular Meeting - 8/10/2022 Page 124 / 129 Starostka Millennial Area 34 COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA RESOLUTION NO. 396 RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA, SUBMITTING A PROPOSED REDEVELOPMENT CONTRACT TO THE HALL COUNTY REGIONAL PLANNING COMMISSION FOR ITS RECOMMENDATION WHEREAS, this Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), pursuant to the Nebraska Community Development Law (the "Act"), prepared a proposed redevelopment plan (the "Plan") a copy of which is attached hereto as Exhibit 1, for redevelopment of an area within the city limits of the City of Grand Island, Hall County, Nebraska; and WHEREAS, the Authority is required by Section 18-2112 of the Act to submit said to the planning board having jurisdiction of the area proposed for redevelopment for review and recommendation as to its conformity with the general plan for the development of the City of Grand Island, Hall County, Nebraska; NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: The Authority submits to the Hall County Regional Planning Commission the proposed Plan attached to this Resolution, for review and recommendation as to its conformity with the general plan for the development of the City of Grand Island, Hall County, Nebraska. Passed and approved this 13th day of July, 2022 COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA. By___________________________ Chairperson ATTEST: __________________________ Secretary Grand Island Regular Meeting - 8/10/2022 Page 125 / 129 Starostka Millennial Area 34 COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA RESOLUTION NO. 397 RESOLUTION OF THE COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA, PROVIDING NOTICE OF INTENT TO ENTER INTO A REDEVELOPMENT CONTRACT AFTER THE PASSAGE OF 30 DAYS AND OTHER MATTERS WHEREAS, this Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), has received an Application for Tax Increment Financing under the Nebraska Community Development Law (the “Act”) on a project within Redevelopment Area 34, from Starostka Group Unilimited, (The "Developer") for redevelopment located in the E ½ for the SW ¼ of 12-11-10 east of the Moore’s Creek Drainway and north of 13th Street, an area within the city limits of the City of Grand Island, as set forth in Exhibit 1 attached hereto; and WHEREAS, this Community Redevelopment Authority of the City of Grand Island, Nebraska ("Authority"), is proposing to use Tax Increment Financing on a project within Redevelopment Area 34; NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: Section 1. In compliance with section 18-2114 of the Act, the Authority hereby gives the governing body of the City notice that it intends to enter into the Redevelopment Contract, after approval of the redevelopment plan amendment related to the redevelopment project, and after the passage of 30 days from the date hereof. Section 2. The Secretary of the Authority is directed to file a copy of this resolution with the City Clerk of the City of Grand Island, forthwith. Passed and approved this 13th day of July, 2022. COMMUNITY REDEVELOPMENT AUTHORITY OF THE CITY OF GRAND ISLAND, NEBRASKA. By ___________________________ Chairperson ATTEST: ___________________ Secretary Exhibit 1 Grand Island Regular Meeting - 8/10/2022 Page 126 / 129 Starostka Millennial Area 34 Draft Redevelopment Plan Forwarded to the Planning Commission Grand Island Regular Meeting - 8/10/2022 Page 127 / 129 Community Redevelopment Authority (CRA) Wednesday, August 10, 2022 Regular Meeting Item K1 2022-2023 Budget Staff Contact: Grand Island Regular Meeting - 8/10/2022 Page 128 / 129 2022 2021-2022 2023 BUDGET YE Projected BUDGET CONSOLIDATED Beginning Cash 548,785 755,002 946,468 REVENUE: Property Taxes - CRA 548,328 571,153 548,263 Property Taxes - Lincoln Pool 196,818 196,818 197,340 Property Taxes -TIF's 5,400,000 5,400,000 7,100,000 Loan Income (Poplar Street Water Line) 20,000 20,000 20,000 Interest Income - CRA 10,000 2,000 10,000 Land Sales - - Other Revenue - CRA 200,000 200,000 200,000 Other Revenue - TIF's TOTAL REVENUE 6,375,146 6,389,971 8,075,603 TOTAL RESOURCES 6,923,931 7,144,973 9,022,070 EXPENSES Auditing & Accounting 3,000 3,000 3000 Legal Services 3,000 200 3000 Consulting Services 5,000 - 5000 Contract Services 75,000 75,000 80000 Printing & Binding 1,000 - 1000 Other Professional Services 16,000 16,000 16000 General Liability Insurance 250 - 250 Postage 200 250 Legal Notices 500 300 500 Travel & Training 4,000 800 4000 Other Expenditures - - Office Supplies 1,000 300 1000 Supplies 300 100 300 Land 30,000 50000 Bond Principal - Lincoln Pool 185,000 185,000 190000 Bond Interest- Lincoln Pool 10,805 10,805 7340 Husker Harvest Days Payment (Year 4 of 10 Nov 2021) 200,000 200,000 200000 Façade Improvement 200,000 162,000 320000 Building Improvement (Committed Projects) 500,000 135,000 723,000 Other Projects 200,000 10,000 300000 TIF Payments 5,400,000 5,400,000 7100000 TOTAL EXPENSES 6,835,055 6,198,505 9,004,640 INCREASE(DECREASE) IN CASH (459,909) 191,466 (929,038) ENDING CASH 88,876 946,468 17,430 Program Operating Building Improvement includes all committed projects (Life/Safety, Façade and Other Projects) that have not been paid out COMMUNITY REDEVELOPMENT AUTHORITY 2023 BUDGET Grand Island Regular Meeting - 8/10/2022 Page 129 / 129