01/26/2010 Resolutions 2010-29RESOLUTION 2010-29
WHEREAS, the City of Grand Island, Nebraska, a municipal corporation and city of the first
class, has determined it be desirable to undertake and carry out urban redevelopment projects in areas
of the City which are .determined to be substandard and blighted and in need of redevelopment; and
WHEREAS, the Nebraska Community Development Law, Chapter 18, Article 21, Nebraska
Reissue Revised Statutes of 2007, as amended (the "Act"), prescribes the requirements and
procedures for the planning and implementation of redevelopment projects; and
WHEREAS, the City has previously declared Redevelopment Area No. 1 of the City to be
substandard and blighted and in need of redevelopment pursuant to the Act; and
WHEREAS, the Community Redevelopment Authority of the City of Grand Island, Nebraska
(the "Authority"), has prepared a Redevelopment Plan pursuant to Section 18-2111 of the Act, and
recommended the Redevelopment Plan to the Planning Commission of the City; and
WHEREAS, the Planning Commission of the City reviewed the Redevelopment Plan pursuant
to the Act and submitted its recommendations, to the City, pursuant to Section 18-2114 of the Act;
and
WHEREAS, following consideration of the recommendations ofthe Authorityto the Planning
Commission, the recommendations ofthePlanning Commission to the City, and following the public
hearing with respect to the Redevelopment Plan, the City approved the Plan; and
WHEREAS, there has been presented to the City by the Authority for approval a specific
Redevelopment Project within the Redevelopment Plan and as authorized in the Redevelopment Plan,
such project to be as follows: Acquire real estate at 423 W 4`h Street; prepare the site for
construction and extend necessary utility services construct a new 3150 square foot commercial
building to be used as a pharmacy on lots 3 and 4 of Block 39 of Grand Island Original Town in
the City of Grand Island. All redevelopment activities will occur in Grand Island, Hall County,
Nebraska; and
WHEREAS, the City published notices of a public hearing and mailed notices as required
pursuant to Section 18-2115 of the Act and has, on the date of the Resolution held a public hearing
on the proposal to amend the Redevelopment Plan to include the Redevelopment Project described
above.
NOW, THEREFORE, be it resolved by the City Council of the City of Grand Island,
Nebraska:
Approved as to Form n -
January 25, 2010 p City Attorney
1. The Redevelopment Plan of the City approved for Redevelopment Area No. 1 in the city of
Grand Island, Hall County, Nebraska, including the Redevelopment Project described above,
is hereby determined to be feasible and in conformity with the general plan for the
development of the City of Grand Island as a whole and the Redevelopment Plan, including
the Redevelopment Project identified above, is in conformity with the legislative declarations
and determinations set forth in the Act; and it is hereby found and determined that (a) the
redevelopment project in the plan would not be economically feasible without the use oftax-
increment financing, (b) the redevelopment project would not occur in the community
redevelopment area without the use oftax-increment financing, and (c) the costs and benefits
of the redevelopment project, including costs and benefits to other affected political
subdivisions, the economy of the community, and the demand for public and private services
have been analyzed by the City and have been found to be in the long-term best interest of the
community impacted by the redevelopment project. The City acknowledges receipt ofnotice
ofintent to enter into the Redevelopment Contract in accordance with Section 18-2119 ofthe
Act and of the recommendations ofthe Authority and the Planning Commission with respect
to the Redevelopment Contract.
2. Approval of the Redevelopment Plan is hereby ratified and reaffirmed, as amended by this
Resolution, and the Authority is hereby directed to implement the Redevelopment Plan in
accordance with the Act.
3. Pursuant to Section 18-2147 of the Act, ad valorem taxes levied upon real property in the
Redevelopment Project included or authorized in the Plan which is described above shall be
divided, for a period not to exceed 15 years after the effective date of this provision, which
effective date shall be January 1, 2011 as follows:
a. That proportion ofthe 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 (as
defined in the Act) 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 proportion of the ad valorem tax on real property in the Redevelopment Project
in excess of such amount, if any, shall be allocated to, is pledged 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 of
money to, or indebtedness incurred by, whether funded, refunded, assumed, or
otherwise, such Authority for financing or refinancing, in whole or in part, such
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.
c. The Mayor and City Clerk are authorized and directed to execute and file with the
Treasurer and Assessor of Hall County, Nebraska, an Allocation Agreement and
Notice of Pledge of Taxes with respect to each Redevelopment Project.
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4. The City hereby finds and determines that the proposed land uses and building requirements in
the Redevelopment Area are designed with the general purposes of accomplishing, in
accordance with the general plan for development 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 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 a
healthful and convenient distribution of population, the provision of adequate transportation,
water, sewerage, and other public utilities, schools, parks, recreation 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 unsanitary or
unsafe dwelling accommodations, or conditions ofblight.
Adopted by the City Council of the City of Grand Island, Nebraska, January 26, 2010.
Margaret ornady, ayor
Attest:
RaNae Edwards, City Clerk
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Redevelopment Plan Amendment
Grand Island CRA Area #1
November 2009
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 ACQUISITION OF PROPERTY AT 4TH AND CEDAR STREETS BY THE
DEVELOPER AND SUBSEQUENT SITE CLEAN UP AND EARTHWORK,
UTILITY, LANDSCAPING AND PARKING IMPROVEMENTS NECESSARY FOR
THE CONSTRUCTION AND OPERATION OF A RETAIL PHARMACY AT THIS
LOCATION.
This property has sat vacant for more than 30 years. The use of Tax Increment Financing
to aid in the acquisition and clean up ofthe property makes it feasible for the proposed
development.
The acquisition and site work will be paid for by the developer. The developer is
responsible for and has provided evidence that they can secure adequate debt financing to
cover the costs associated with the acquisition and site work. The Grand Island
Community Redevelopment Authority (CRA) intends to pledge the ad valorem taxes
generated over the 15 year period beginning January 1, 2011 towards the allowable costs
and associated financing for the acquisition and site work.
TAX INCREMENT FINANCING TO PAY FOR THE ACQUISTION OF THE
PROPERTY AND RELATED SITE WORK WILL COME FROM THE
FOLLOWING REAL PROPERTY:
Property Description (the "Redevelopment Project Area")
This property is located at the southeast corner of 4th Street and Cedar Street in northeast
Grand Island including:
• Lots 3 and 4 of Block 39 of Grand Island Original Town
The tax increment will be captured for the tax years the payments for which become
delinquent in years 2012 through 2025, inclusive.
The real property ad valorem taxes on the current valuation will continue to be paid
to the normal taxing entities. The increase will come from the retail pharmacy to be
constructed on the property to be acquired.
Statutory Pledge of Taxes.
Pursuant to Section 18-2147 of the Act, any ad valorem tax levied upon real property in
the Redevelopment Project Area shall be divided, for the period not to exceed 15 years
after the effective date of the provision, which effective date shall be January 1, 2011.
a. That portion of the ad valorem tax which is produced by levy at the rate
fixed each year by or for each public body upon the redevelopment project valuation shall
be paid into the funds, of each such public body in the same proportion as all other taxes
collected by or for the bodies; and
b. That portion of the ad valorem tax on real property in the
redevelopment project in excess of such amount, if any, shall be allocated to and, when
collected, paid into a special fund of the Authority to pay the principal of; the interest on,
and any premiums due in connection with the bonds, loans, notes, or advances on money
to, or indebtedness incurred by, whether funded, refunded, assumed, or otherwise, such
Authority for financing or refinancing, in whole or in part, a redevelopment project.
When such bonds, loans, notes, advances of money, or indebtedness including interest
and premium due have been paid, the Authority shall so notify the County Assessor and
County Treasurer and all ad valorem taxes upon real property in such redevelopment
project shall be paid into the funds of the respective public bodies.
Pursuant to Section 18-2150 of the Act, the ad valorem tax so divided is hereby pledged
to the repayment of loans or advances of money, or the incurring of any indebtedness,
whether funded, refunded, assumed, or otherwise, by the CRA to finance or refinance, in
whole or in part, the redevelopment project, including the payment of the principal of,
premium, if any, and interest on such bonds, loans, notes, advances, or indebtedness.
Redevelopment Plan Amendment Complies with the Act:
The Community Development Law requires that a Redevelopment Plan and Project
consider and comply with a number of requirements. This Plan Amendment meets the
statutory qualifications as set forth below.
1. The Redevelopment Project Area has been declared blighted and substandard by
action ofthe 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 acquire the necessary property and provide the necessary site work for
the construction of a permitted use on this property.
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.
b. Demolition and Removal of Structures:
The project to be implemented with this plan does not intend that any structures be
removed or demolished. This amendment does not prohibit demolition elsewhere in the
Redevelopment Project Area.
c. Future Land Use Plan
See the attached map from the 2004 Grand Island Comprehensive Plan. The site is
planned for mixed use commercial development. [§ 18-2103(b) and § 18-2111 ] The
attached map also is an accurate site plan of the area after redevelopment. [§ 18-2111(5)]
d. Changes to zoning, street layouts and grades or building codes or ordinances or
other Planning changes.
The area is zoned B2- General Business zone. Commercial development is anticipated
based on this project. No changes are anticipated in street layouts or grades. No changes
are anticipated in building codes or ordinances. Nor are any other planning changes
contemplated. [§ 18-2103(b) and § 18-2111 ]
e. Site Coverage and Intensity of Use
The developer is proposing to a retail pharmacy at this site. The total square footage of
the building will be 3,150 square feet. The property is zoned B2 General Business and
could accommodate a building of up to 100% of the property or 17,424 square feet. [§ 18-
2103(b) and § 18-2111 ]
Changes to zoning, street layouts and grades or building codes or ordinances
The proposed use is permitted in the current zoning district. No changes are anticipated
in street layouts or grades. No changes are anticipated in building codes or ordinances.
f. Additional Public Facilities or Utilities
Sewer and water are available to support this development. New water and sewer
services will be required for this building. No new mains will be required.
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 amendment does not provide
for acquisition of any residences and therefore, no relocation is contemplated. [§18-
2103.02]
5. No member of the Authority, nor any employee thereof holds any interest in any
property in this Redevelopment Project Area. [§18-2106]
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 has provided a copy of the purchase agreement for the property with a
purchase price of $96,000. Costs for preparation for development are estimated at
$77,000.
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. That portion of the
borrowed funds that can be attributed to eligible expenditures including: acquisition of
the property; and subsequent site clean up and earthwork, utility, landscaping and parking
improvements as necessary; and architecture, engineering and legal fees; and interest
associated with the debt issued to cover these expenditures.. These funds 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, 2011
through December 2025.
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, in
that it will allow for the utilization of undeveloped commercial lots. The only
conceivable impact as a result of the proposed project is the creation of additional retail
space in a commercial district. This will impact traffic on 4th Street. New commercial
development will raise property values and provide a stimulus to keep surrounding
properties properly maintained. This will have the intended result of preventing recurring
elements of unsafe buildings and blighting conditions.
8. Time Frame for Development
Development of this project is anticipated to be completed during the 2010 and 2011
calendar years. The base tax year should be calculated on the value of the property as of
January 1, 2010. Excess valuation should be available for this project for 15 years
beginning with the 2011 tax year.
9. Justification of Project
This property has been vacant for more than 30 years. This is infill development in an
area with all city services available. Pharmacy Properties LLC is proposing to build a
retail pharmacy in this area. Very little new construction has occurred within the 4th
street business district in the last 30 years. This project does not propose to tear down
any buildings with historic value but rather seeks to use vacant property for new
construction.
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.
(a) Tax shifts resulting from the approval of the use of Tax Increment
Financing;
The redevelopment project area currently has an estimated valuation of $39,495.
After acquisition of the property and subsequent improvements a retail pharmacy will be
built at this location. This will result in a $387,000 commercial building being placed on
the tax rolls. The proposed investment is substantially higher than the taxable value of
the building. No tax shifts are anticipated from the project. The project creates
additional valuation that will support taxing entities long after the project is paid off.
(b) Public infrastructure and community public service needs impacts and local
tax impacts arising from the approval of the redevelopment project;
No additional public service needs have been identified.
(c) Impacts on employers and employees of firms locating or expanding within
the boundaries of the area of the redevelopment project;
The proposed facility will provide job for pharmacists and associated retail personnel.
(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 facility could draw employees from other similar facilities within the City.
(e) Any other impacts determined by the authority to be relevant to the
consideration of costs and benefits arising from the redevelopment project.
This proposed development represents some of the first new construction along this
stretch of 4th Street in many years. Many of the existing buildings have been
rehabilitated and reused but there has been little to no new construction.
Time Frame for Development
Development of this project is anticipated to be mostly complete during the 2010
calendar year. The base tax year should be calculated on the value of the property as of
January 1, 2010. Excess valuation should be available for this project for 15 years
beginning in 2012. Excess valuation will be paid to the developer's lender per the
contract between the CRA and the developer for a period not to exceed 15 years or
$111,000. Based on the purchase price of the property and estimates of the expenses of
eligible activities the developer will spend $177,000 on TIF eligible activities.
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Proposed Site Plan for Development at 423 W 4~' Street in Grand Island, NE