2018-16RESOLUTION NO. 2018-16
COUNCIL MEMBER ANDERSEN INTRODUCED THE FOLLOWING RESOLUTION:
BE IT RESOLVED, by the Mayor and City Council of the City of Blair, Nebraska that
approval of the proposed form of the Redevelopment Agreement by and between the City of Blair,
Nebraska, a Nebraska municipal corporation, as redeveloper, and the Community Development
Agency of the City of Blair, Nebraska, in the form presented is hereby acknowledged and
approved. The Mayor and City Clerk, on behalf of the City, as redeveloper, are hereby authorized
to execute said Redevelopment Agreement in substantially the form presented but with such
changes as they shall deem appropriate or necessary. The execution and delivery by the Mayor of
the Redevelopment Agreement, or any such documents, instruments, agreements or certifications
relating to such matters contained in the Redevelopment Agreement, shall conclusively establish
their authority with respect thereto and the authorization and approval thereof.
COUNCIL MEMBER WOLFF MOVED THAT THE RESOLUTION BE ADOPTED AS READ,
WHICH SAID MOTION WAS SECONDED BY COUNCIL MEMBER SHEPARD. UPON
ROLL CALL, COUNCIL MEMBERS SHEPARD, STEWART, HANSEN, WILLIS, WOLFF,
JENSEN AND HALL VOTING "AYE", AND COUNCIL MEMBERS NONE VOTING "NAY",
THE MAYOR DECLARED THE FOREGOING RESOLUTION PASSED AND APPROVED
THIS 26TH DAY OF JUNE, 2018.
CITY OF BLAIR, NEBRASKA
BY
FES REALPH, MAYOR
ATTEST:
&A 14)
BRENDA WHEELER, CITY CLERK
(SEAL)
STATE OF NEBRASKA )
) :ss:
WASHINGTON COUNTY )
BRENDA WHEELER hereby certifies that she is the duly appointed, qualified and acting City
Clerk of the City of Blair, Nebraska, and that the above and foregoing Resolution was passed and
adopted at a regular meeting of the Mayor and City Council of said city held on the 26th day of
June, 2018.
t)
BRENDA WHEELER, CITY CLERK
REDEVELOPMENT AGREEMENT
This Redevelopment Agreement ("Redevelopment Agreement") is made and entered into
as of the 26th day of June, 2018, by and between the Community Development Agency of the
City of Blair, Nebraska (the "Agency") and the City of Blair, Nebraska ("Redeveloper"). The
Agency and/or Redeveloper may be referred to hereinafter as the "Party" or collectively as the
"Parties".
WITNESSETH:
WHEREAS, the Mayor and City Council for the City of Blair, Nebraska, as governing
body of the Agency, has adopted and approved a plan entitled "Redevelopment Plan for the
Transformation Hill Redevelopment Area of the City of Blair, Nebraska", as amended (the
"Plan"). The Plan sets forth a redevelopment project for the real estate described on Exhibit "A"
attached hereto and incorporated herein (the "Redevelopment Project Area"), which is primarily
located in the City of Blair, Nebraska, and which has previously been declared blighted and
substandard or otherwise eligible for redevelopment by the Mayor and Council of the City of
Blair, Nebraska (the City of Blair, Nebraska, in its municipal capacity and not as Redeveloper, is
referred to in this Redevelopment Agreement as the "City"); and
WHEREAS, the Agency has encouraged and induced Redeveloper to engage in certain
redevelopment activities in the Redevelopment Project Area and Redeveloper is not willing to
incur the substantial investment necessary for such redevelopment of the Redevelopment Project
Area without the assistance of tax -increment financing ("TIF") provided by the Agency to
Redeveloper in this Redevelopment Agreement; and
WHEREAS, pursuant to the Plan, Redeveloper intends to demolish existing
improvements, conduct site preparation and construct various public improvements for the uses
and in the manner specified in the Plan (collectively, said improvements are referred to in this
Redevelopment Agreement as the "Redevelopment Project"); and
WHEREAS, the real property within the Redevelopment Project Area known as Area
Three and Area Four (as defined in the Plan and shown on Exhibit "A") is to be owned by
Redeveloper prior to undertaking the public improvements thereon; and
WHEREAS, after implementing the necessary public improvements, Redeveloper will
incrementally sell the residential lots located in Area Four to private developers for the purpose
of developing the, private improvements thereon; and
WHEREAS, Area Two (as defined in the Plan and shown on Exhibit "A"), excluding
public right-of-ways, is to be owned by Eriksen Construction Co., Inc. ("Eriksen Construction"),
prior to Redeveloper undertaking the public improvements thereon; and
WHEREAS, Area One (as defined in the Plan and shown on Exhibit "A") is owned by
Angels Share, a Nebraska nonprofit corporation; and
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WHEREAS, the Agency proposes to authorize the issuance of a tax increment revenue
bond, or a series of bonds (the 'Bond" or "Bonds"), to provide for eligible costs relating to the
redevelopment of the Redevelopment Project Area as shall be more specifically described in a
resolution (or resolutions) to be adopted by the governing body of the Agency (the
"Resolution"); and
WHEREAS, Redeveloper seeks the assistance of the Agency for the costs of the eligible
public improvements and therefore is willing to agree to the conditions herein set forth as an
inducement to the Agency to issue the Bonds as provided in the Resolution.
NOW, THEREFORE, for and in consideration of the premises and the mutual covenants
herein contained, the Agency and Redeveloper do hereby agree, covenant and warrant as
follows:
Section 1. Representations, Warranties and Covenants of Redeveloper.
Redeveloper hereby represents, covenants and warrants as follows:
(a) Redeveloper is a Nebraska municipal corporation duly organized and existing
under the laws of the State of Nebraska, is authorized to enter into and perform its
obligations under this Redevelopment Agreement and, to the best of the
knowledge of Redeveloper, is not in violation of the laws of the State of
Nebraska.
(b) Throughout the term of this Redevelopment Agreement, Redeveloper will
reasonably endeavor to construct, operate and maintain the Redevelopment
Project in accordance with the terms of this Redevelopment Agreement and all
applicable local, state and federal laws and regulations (including, without
limitation, environmental, zoning, building code and public health laws and
regulations).
(c) Redeveloper anticipates that the Redevelopment Project will be completed over a
number of years based upon market conditions and other extraneous factors.
(d) Redeveloper has not received notices or communications from any local, state or
federal official or body that the activities of Redeveloper respecting the
Redevelopment Project Area or the construction of the Redevelopment Project
thereon may be or will be in violation of any law or regulation.
(e) Redeveloper will use its best efforts to obtain or to cause others to obtain, in a
timely manner, all required permits, licenses and approvals and to meet, in a
timely manner, all requirements of all applicable local, state and federal laws and
regulations which must be obtained or met for the Redevelopment Project to be
lawfully constructed, occupied or operated.
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(f) The execution and delivery of this Redevelopment Agreement, the consummation
of the transactions contemplated hereby and the fulfillment of or compliance with
the terms and conditions of this Redevelopment Agreement are not prevented or
limited by and will not conflict with or result in a breach (i) of any provision of
any evidence of indebtedness, agreement or instrument of whatever nature to
which Redeveloper is now a Party or by which it is bound; or (ii) of any past,
pending or threatened litigation, court order, or administrative proceeding, by
which Redeveloper is or might become bound.
(g) Redeveloper acknowledges and agrees that the Agency shall not be obligated to
pay any costs related to the Redevelopment Project other than costs to be paid
from available grant monies, if any, and Redeveloper, or Redeveloper's successors
or assigns, hereby undertakes and agrees to pay any and all such cost. All costs of
the Redevelopment Project shall be paid in full and there are and shall be no
construction liens unpaid against the Redevelopment Project Area or any of the
improvements thereon owned by Redeveloper. Redeveloper agrees to provide for
the construction of public improvements located within the Redevelopment
Project Area as described in the Plan or as described in this Redevelopment
Agreement, except to the extent that the Agency or the City shall agree otherwise
by separate written agreement with Redeveloper.
(h) Redeveloper agrees to enter into a written agreement with Eriksen Construction
and any other owner of real property within the Redevelopment Project Area
endeavoring to build private improvements thereon. Such agreement shall
obligate the owner to construct the private improvements in the manner and for
the uses contemplated under the Plan and this Redevelopment Agreement.
(i) Redeveloper agrees and covenants for itself, its successors and assigns that as
long as the Bonds are outstanding, it will not discriminate against any person or
group of persons on account of race, sex, color, religion, national origin, ancestry,
disability, marital status or receipt of public assistance in connection with the
Redevelopment Project. Redeveloper, for itself and its successors and assigns,
agrees that during the construction of the Redevelopment Project, Redeveloper
will not discriminate against any employee or applicant for employment because
of race, religion, sex, color, national origin, ancestry, disability, marital status or
receipt of public assistance. Redeveloper will comply with all applicable federal,
state and local laws related to the Redevelopment Project.
(j) Any general contractor chosen by Redeveloper or any owner of real property
constructing improvements within the Redevelopment Project Area shall obtain
and keep in force at all times until completion of construction, policies of
insurance including coverage for contractors' general liability and completed
operations of at least $500,000 per occurrence and $1,000,000 in the aggregate,
and a penal bond as required by the Act and section 9 of this Redevelopment
Agreement. The Agency and Redeveloper shall be named as additional insureds.
Any such contractor shall be required to purchase and maintain property
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insurance upon the Redevelopment Project to the full insurable value thereof.
This insurance shall insure against the perils of fire and extended coverage and
shall include "All Risk" insurance for physical loss or damage.
(k) With respect to the Redevelopment Project, Redeveloper has not filed nor does it
intend to file an application to receive tax incentives under the Nebraska
Advantage Act.
Section 2. Incorporation of Plan; Agency to Issue Tax Increment Bond(s).
This Redevelopment Agreement hereby incorporates the Plan by this reference. In order
to provide for payment of some of the public improvements set forth in the Plan and this
Redevelopment Agreement, as described in Exhibit "B", attached hereto and incorporated herein
(the "Public Improvements"), the Agency shall proceed to issue the Bond on the form prescribed
in the Resolution, in the principal amount not to exceed $1,480,000, under the Resolution with
such terms and conditions as the Agency reasonably determines appropriate under the
circumstances to be set forth in the Resolution.
The Agency and Redeveloper hereby agree that the "division date" for the division of ad
valorem real property taxes as provided under the Act is January 1, 2019. The "redevelopment
project valuation" (as defined under section 18-2103(21) of the Act) shall be the valuation of the
individual tax parcels within the Redevelopment Project Area as of January 1, 2018. The
Agency shall file notice to secure such division date in the manner prescribed by law. Upon the
occurrence of an unforeseen delay or change in market conditions, Redeveloper and the Agency
may agree in writing to a different division date.
The Bond shall constitute a limited obligation of the Agency payable exclusively from
that portion of the incremental ad valorem real estate taxes generated from the Redevelopment
Project pursuant to section 18-2147 of the Act and collected for a period not to exceed fifteen
(15) years from the division date. Upon receipt, the Agency shall deposit the proceeds of the
Bond with the City Treasurer of the City pursuant to the Resolution, and the Treasurer shall
disburse such proceeds to provide for all or a portion of the costs of the Public Improvements in
accordance with the following:
(a) Costs related to the Redevelopment Project as incurred by the Agency, including
the fees and expenses of special counsel; and
(b) Costs for the Public Improvements, as identified and allocated on Exhibit `B"
("Eligible Costs"), to the extent paid by Redeveloper shall be reimbursed (but
only fiom available grant monies) to Redeveloper, as evidenced by paid invoices
or other evidence acceptable to the Agency; each such reimbursement shall be and
constitute a grant to Redeveloper made under the terms on this Redevelopment
Agreement and the Act.
If, during the course of the fifteen -year period described above, the Agency, in its sole discretion,
determines that the incremental ad valorem real property taxes collected in relation to the
DOCS/2094598.2 4
Redevelopment Project will exceed the original Bond amount, the Agency may issue an
additional Bond to cover any outstanding Eligible Costs of Redeveloper. Such Bond shall be
distributed in the manner described above and shall only be payable from the grant proceeds
collected during the initial fifteen -year period from the division date.
Section 3. Covenants With Respect to Taxation of Redevelopment Project Area.
Redeveloper agrees with respect to the Redevelopment Project as follows:
(a) Until the termination of this Redevelopment Agreement (as described in Section
18 hereof), Area Two and Area Four shall be operated for the use substantially
similar to that contemplated in the Plan and no sale or conveyance of such
property shall be made to any person or entity for ownership or use which would
cause the real property within the Redevelopment Project Area to be eligible for
exemption from ad valorem taxes under Section 77-202 R.R.S. Neb. 2009, as now
existing or hereafter amended, or any successor provision thereto. The covenants
in this section 3(a) shall be binding upon all current and future owners of real
property within Area Two and Area Four. Redeveloper and Eriksen Construction,
or their respective successors and assigns, shall place covenants, conditions and
restrictions upon each individual lot within Area Two and Area Four enforcing
this covenant for the duration of this Redevelopment Agreement.
(b) Redeveloper intends to create a taxable real property valuation of the
Redevelopment Project Area of $200,000 to $275,000 for single-family homes (as
determined by the initial sale price of the home) and $500,000 for each condo
located within Redevelopment Project Area (individually, with respect to each tax
parcel within the Redevelopment Project Area, the "Minimum Valuation") by
2029. Redeveloper and Agency may enter into a supplemental written agreement
to determine a Minimum Valuation for any tax parcel with private improvements
other than a single-family home or condo constructed thereon. From and after the
issuance of the Bonds and so long as the Bonds remain outstanding and unpaid,
Redeveloper, Eriksen Construction and all subsequent owners of real property
within Area Two and Area Four agree that they shall not contest any taxable
valuation assessed for the Redevelopment Project Area, as determined by the
appropriate assessing and taxing officials of Washington County, Nebraska, for
purposes of local ad valorem real estate taxes which does not exceed the
Minimum Valuation. The covenants in this section 3(b) shall be binding upon all
current and future owners of real property within Area Two and Area Four.
Redeveloper and Eriksen Construction, or their respective successors and assigns,
shall place covenants, conditions and restrictions upon each individual lot within
Area Two and Area Four enforcing this covenant for the duration of this
Redevelopment Agreement.
(c) If, during the period of this Redevelopment Agreement and after the filing of a
notice to divide, the Redevelopment Project Area is assessed at less than the
Minimum Valuation, Redeveloper, or the holder of the Bond(s), shall defer
DOCS/2094598.2 5
receipt of any such shortfall. If the Bond holder is required to defer the receipt of
any such shortfall amounts, the Bond holder shall be entitled to receive
reimbursement of any such shortfall payment to the extent incremental ad
valorem taxes later become available during the fifteen (15) year period
prescribed by the Act in an amount in excess of the amount necessary to meet the
current debt service payments. Redeveloper and the Bond holder shall forgive
any such shortfall amounts not reimbursed at the end of the fifteen (15) year
period prescribed by the Act. Additionally, in its sole and exclusive discretion,
the Agency may levy a tax under section 18-2107(11) of the Act to account for
any such shortfall.
(d) Redeveloper and Eriksen Construction further agrees as follows:
(i) to pay all local ad valorem real estate taxes as levied and assessed before
the same become delinquent; and
(ii) not to seek any administrative review or judicial review of the
applicability or validity of any tax statute relating to taxation of the
Redevelopment Project or to raise such inapplicability or invalidity as a
defense in any administrative or judicial proceedings; and
(iii) not to seek any tax deferral or tax abatement with respect to local ad
valorem taxes, either as presently or prospectively authorized under any
law of the State of Nebraska or federal law with respect to the
Redevelopment Project; and
(iv) to pay or cause to be paid, when due and before any fine, penalty, interest
or cost may be added thereto for the non-payment thereof, all water and
sewer rates and charges, occupancy tax, special assessments and other
governmental levies and charges, general and special, ordinary and
extraordinary, unforeseen as well as foreseen, of any kind and nature
whatsoever, which are assessed, levied, confirmed, imposed or become
payable with respect to the Redevelopment Project; provided, however,
that any special assessments levied for water, sewer or paving
improvements shall be permitted to be paid as the same fall delinquent and
may bear interest from the date of levy or other appropriate date set by the
levying body; and
(v) to pay those local ad valorem real estate taxes levied and assessed to
become due on or before December 31, 2033, at the earliest time in said
year that such taxes have been determined and in any event on or before
December 31, 2033; and
(vi) to retain copies of all supporting documents (as defined under section 18-
2119(4) of the Act) actually generated and received by redeveloper in
relation to the Redevelopment Project or Plan until the expiration of three
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years following the end of the last fiscal year in which ad valorem taxes
were divided in relation to the Redevelopment Project;
The covenants in this section 3(d)(i-v) shall be binding upon all current and future
owners of real property within Area Two and Area Four. Redeveloper and
Eriksen Construction, or their respective successors and assigns, shall place
covenants, conditions and restrictions upon each individual lot within Area Two
and Area Four enforcing this covenant for the duration of this Redevelopment
Agreement.
(e) in no event shall amounts payable by Redeveloper under the terms of this
Redevelopment Agreement for real estate taxes related to the amounts of taxes
attributable to increases in valuation in excess of the Minimum Valuation be
available or be applied or be required to be paid for purposes of paying principal
or interest on any debt obligation of the City or the Agency other than the Bonds,
until the Bonds has been paid in full.
Section 4. Release and Indemnification.
Redeveloper hereby releases from and covenants and agrees that the Agency and the
City, together with their governing body, officers, agents, including their independent
contractors, consultants and legal counsel, servants and employees thereof (hereinafter, for
purpose of this Section 4, collectively the "Indemnified Parties") shall not be liable for and
agrees to indemnify and hold harmless the Indemnified Parties against any loss or damage to
property or any injury to or death of any person occurring at or about or resulting from any
defect arising from the Redevelopment Project or within the Redevelopment Project Area.
Provided, however, such release shall not be deemed to include such liability actions as arise
directly out of the willful misconduct of the Agency or the City.
Additionally, the Indemnified Parties shall not have any pecuniary obligation or monetary
liability under this Redevelopment Agreement. The obligation of the Indemnified Parties on the
Bonds or any indebtedness contemplated hereunder shall be limited solely to the incremental ad
valorem taxes generated from the Redevelopment Project pledged as security for such
indebtedness. Specifically, but without limitation, the Indemnified Parties shall not be liable to
Redeveloper or any other third party for any costs, liabilities, actions, demands, or damages for
failure of any representations, warranties or obligations hereunder.
Section 5. Covenants to Run with the Land; Easement; RecordinIZ of
Redevelopment Agreement.
Redeveloper, Eriksen Construction and Agency agree and acknowledge that this
Redevelopment Agreement and the undertakings of Redeveloper and the Agency as herein
provided for shall be considered as and constitute covenants running with the land binding upon
Redeveloper and the Agency and their successors and assigns and upon each successive owner of
the Redevelopment Project Area or any portion thereof. Redeveloper hereby acknowledges and
agrees that by the terms of this Redevelopment Agreement it is binding and obligating any and
DOCS/2094598.2
all of its interest in the Redevelopment Project Area, now or hereafter acquired, and hereby
covenants and warrants for the benefit of the Agency and the registered owner of the Bonds that
Redeveloper shall defend such interest in the Redevelopment Project Area against the claims and
interests of any and all persons. Redeveloper, Eriksen Construction and the Agency agree and
acknowledge that a copy of this Redevelopment Agreement shall be recorded against all real
estate located in the Redevelopment Project Area and shall remain of record until the Bonds have
been paid in full or matured. As and to the extent that this Redevelopment Agreement does not
have priority by order of recording over each and every mortgage or other instrument securing
indebtedness of Redeveloper, Redeveloper hereby agrees to obtain the written agreement in
recordable form from each mortgagee or other encumbrancer having any such priority, which
written form acknowledges and agrees to the terms of this Redevelopment Agreement.
Redeveloper agrees to provide the Agency with a title report or other evidence as to the status of
title to the Redevelopment Project Area after the recording of this Redevelopment Agreement
and before the issuance of the Bonds. After the Bonds have been paid in full, Redeveloper or
any successor or assign of Redeveloper, or current owner of real property within the
Redevelopment Project Area, shall have the right to request in writing and the Agency shall,
upon such request, execute and deliver an appropriate instrument evidencing the termination of
this Redevelopment Agreement and of the covenants and undertakings herein provided. The
Agency shall have the right, from time to time in its sole and reasonable discretion, to release
specific parcels or lots located within the Redevelopment Project Area from any or all of the
specific provisions of this Redevelopment Agreement.
Section 6. Default and Remedies upon Default.
Redeveloper and Agency agree with respect to any defaults or failures of performance by
Redeveloper or Agency as follows:
(a) The following shall constitute `Events of Default" under the terms of this
Redevelopment Agreement:
(i) failure by Redeveloper or Agency to observe timely or perform timely any
covenant, condition, obligation or agreement on its part to be observed or
performed under this Redevelopment Agreement;
(ii) any representation or warranty made herein by Redeveloper or Agency
proves untrue in any respect reasonably deemed to be material by the
Agency or Redeveloper;
(iii) an event of default or material breach by or attributable to Redeveloper or
Agency relating to the Redevelopment Project or any portion thereof,
including, without limitation, breach of the terns of any agreement or
other instrument relating to the financing or construction thereof; or
(iv) Redeveloper makes an assignment for the benefit of creditors, files a
petition in bankruptcy, is adjudicated insolvent or bankrupt or petitions for
an order for relief, petitions or applies to any tribunal for the appointment
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of any receiver or any trustee or a debtor in possession of Redeveloper or
any part of its property or commences any proceeding related to
Redeveloper under any reorganization, arrangement, readjustment of debt,
dissolution or liquidation act, code, law or statute of any jurisdiction,
whether now or hereafter in effect, or if there is commenced against
Redeveloper any such proceedings and Redeveloper by any act indicates
its consent or approval of or acquiescence in any such proceeding or the
appointment of any receiver or any trustee or debtor in possession for
Redeveloper or any part of its property or suffers any such receivership or
trusteeship.
(b) Whenever a Event of Default occurs, in addition to all other remedies available to
the Agency or Redeveloper at law or in equity, the Agency or Redeveloper (1)
may suspend its performance under this Redevelopment Agreement, including an
order to the City Treasurer or any other appropriate officer to suspend contracting
for Public Improvements or disbursement of monies for Eligible Costs or other
improvements until receiving adequate assurances from Redeveloper or Agency
that Redeveloper or Agency has cured the default and will continue performance
under this Redevelopment Agreement; and (2) may take such action at law or in
equity as the Agency or Redeveloper reasonably deem appropriate, including
specific performance or injunction to enforce or compel performance of the
provisions of this Redevelopment Agreement.
(b) Redeveloper acknowledges and agrees that the Agency or any registered owner of
any Bonds outstanding under the Resolution shall each be entitled to specific
performance and injunction or other equitable relief for any breach or threatened
breach of any of the provisions of this Redevelopment Agreement,
notwithstanding the availability of an adequate remedy at law and Redeveloper
hereby waives the right to raise such defense in any proceeding in equity.
(c) No remedy herein conferred upon or reserved to the Agency or the registered
owner of the Bonds is intended to be exclusive of any other available remedy or
remedies, but each and every such remedy shall be cumulative and shall be in
addition to every other remedy given under this Redevelopment Agreement or
now or hereafter existing at law or in equity. No delay or omission to exercise
any right or power accruing upon any default shall impair any such right or power
or shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient.
(g) If any provision of this Redevelopment Agreement is breached by a Party and
thereafter waived by the other Party, such waiver shall be limited to the particular
breach so waived and shall not be deemed to waive any other concurrent, previous
or subsequent breach hereunder.
(h) Anything in this Section 6 to the contrary notwithstanding, none of the events
described in subsection 6(a)(iv) above shall constitute an Event of Default after
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the Redevelopment Project has been completed and the proceeds of the Bonds
have been disbursed in full.
Section 7. Status of Aizency.
The Agency shall not be regarded as the partner, joint venturer or other jointly acting
party with Redeveloper for any purpose whatsoever and the undertakings and agreements on the
part of the Agency herein provided for are undertaken solely pursuant to the provisions of
sections 18-2101 to 18-2150 of the Act and for the limited governmental purposes of promoting
and encouraging redevelopment of a blighted and substandard area.
Section 8. Manner of Sale of Bond(s).
Redeveloper agrees toaccept the Bonds in the principal amount thereof in consideration
for the Public liuprovements or to find a purchaser for the Bonds upon terms and conditions
acceptable to the Agency. Any such sale or placement of the Bonds shall be by means of a
private placement to a financial institution or other institutional buyer capable of evaluating the
risks of investment in the Bonds or to Redeveloper. Any such purchaser, excluding
Redeveloper, shall provide to the Agency an investment letter setting forth the understanding as
to purchase for investment and not for any farther distribution, in a form approved by the
Agency.
Section 9. Indemnification and Penal Bond
Redeveloper hereby agrees to indemnify and save the Agency harmless for any payment
or liability to which the Agency may become subject for carrying out of any contract entered into
by Redeveloper with respect to the Redevelopment Project. Redeveloper agrees to provide to the
Agency evidence that there is in effect a bond for the payment costs as required under Section
18-2151 of the Act.
Section 10. Additional Parties Added as Redeveloper.
The Parties specifically agree that additional parties or entities may be admitted to and
included within the meaning of the term "Redeveloper" upon the mutual written consent of both
Parties.
Section 11. Redevelopment Agreement Binding Upon Successors and Assigns.
This Redevelopment Agreement is made for the benefit of Redeveloper, the Agency and
the registered owners from time to time of the Bonds as third patty beneficiaries. This
Redevelopment Agreement shall be binding upon the Agency and Redeveloper, and any
successors or assigns thereof. Redeveloper may assign its interest in the Redevelopment Project,
in whole or in part, upon the prior written approval of the Agency. No assignment by
Redeveloper to the assignee shall be effective until a written instrument binding the assignee
under the terms of the Plan and this Redevelopment Agreement (as and to the extent of such
assignment), duly acknowledged and in recordable form, has been executed and delivered by the
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assignee and recorded in the real estate records of Washington County, Nebraska, with respect to
the Redevelopment Project Area.
Section 12. Titles of Sections.
Any titles of the several Sections of this Redevelopment Agreement are inserted for
convenience of reference only and shall be disregarded in construing or interpreting any of the
provisions hereof.
Section 13. Notices.
Except as otherwise specified herein, all notices hereunder shall be in writing and shall be
delivered to the address for the City Administrator, with respect to the Agency, and the City
Clerk, with respect to the Redeveloper, or such other address as such Party may hereafter specify
by notice to the other given by United States mail or by other telecommunication device capable
of creating a written record of such notice and its receipt.
Each such notice, request or other communication shall be effective (i) if given by mail,
five (5) days after such communication is deposited in the mail, certified or registered with return
receipt requested, addressed as aforesaid or (ii) if given by any other means, when delivered at
the addresses specified in this Section 13 or at any such other address with respect to any such
Party as that Party may, from time to time, designate in writing and forward to the other Party as
provided in this section.
Section 14. Severability.
If any provision of this Redevelopment Agreement shall be held or deemed to be or shall,
in fact, be inoperative or unenforceable as applied in any particular case, for any reason, such
circumstances shall not have the effect of rendering the provision in question inoperative and
unenforceable in any other case or circumstance, or of rendering any other provision or
provisions herein contained, invalid, inoperative or unenforceable to any extent whatever. The
invalidity of any one or more phrases, sentences, clauses, sections or paragraphs in this
Redevelopment Agreement shall not affect the remaining portions of this Redevelopment
Agreement or any part thereof.
Section 15. Counterparts.
This Redevelopment Agreement may be executed in any number of counterparts, each of
which shall constitute one and the same instrument.
Section 16. Law Governing.
The Parties agree that this Redevelopment Agreement shall be governed and construed in
accordance with the laws of Nebraska.
Section 17. Time of the Essence.
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Time shall be of the essence of this Redevelopment Agreement.
Section 18. Termination.
This Redevelopment Agreement shall commence as of the date first above written and
shall terminate upon the earlier of fifteen years after the division date set forth in Section 2 of
this Redevelopment Agreement or payment of all principal and interest owed toward the
Bond(s).
Section 19. Force Majeure Event.
Neither Redeveloper nor the Agency shall be considered in breach of, or in default in its
obligations with respect to any of the obligations under this Redevelopment Agreement in the
event that an enforced delay in the performance of such obligations due to unforeseeable causes
beyond its control and without its fault or negligence, caused by a Force Majeure Event, which is
defined herein as any failure or delay in performance by a Party that is proximately caused by
acts of God, or wars or insurrections; it being the purpose and intent of this provision that in the
event of the occurrence of any such enforced delay, the time or times for performance of the
obligations of Redeveloper or the Agency, as the case may be, shall be extended for the period of
the enforced delay as determined by the mutual agreement of Redeveloper and the Agency;
provided, that Redeveloper or the Agency, as the case may be, shall, within twenty (20) days
after the beginning of any such enforced delay, have notified Redeveloper or the Agency (as
applicable) in writing of the cause or causes thereof, and requested an extension for the period of
the enforced delay.
Section 20. Effect of Redevelopment Agreement.
This Redevelopment Agreement (including the Plan as incorporated by reference)
constitutes the entire understanding by and between the Parties concerning the subject matter
hereof, and supersedes and replaces all prior agreements. No other prior or contemporaneous
representations, inducements, promises or agreements, oral or otherwise, between or among the
Parties relating to the subject matter hereof and not embodied in this Redevelopment Agreement
shall be of any force and effect.
Section 21. Consent and Ratification by Future Owners
Within a commercially reasonable time after execution of this Redevelopment Agreement
by both the Agency and Redeveloper, Redeveloper shall cause Eriksen Construction to execute
the "Consent and Ratification" attached hereto and incorporated herein as Exhibit "C".
Redeveloper shall cause any third party that purchases a lot from Redeveloper within Area Four
to execute a similar document prior to such sale.
(Signatures on following page)
DOCS/2094598.2 12
IN WITNESS WHEREOF, the Agency and Redeveloper have caused this Redevelopment
Agreement to be executed by their duly authorized representatives.
COMMUNITY DEVELOPMENT AGENCY OF
THE CITY OF BLAIR, NEBRASKA
By. \`� v�
J es ealph, Chaiiperson ayor)
ATTEST:
Lu"eL4 Gtkt'L
Brenda Wheeler, Secretary (City Clerk)
STATE OF NEBRASKA )
) ss.
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this Ob day of -J-u nC ,
2018, by James Realph, Chairperson, and Brenda Wheeler, Secretary, of the governing body of
the Community Development Agency of the City of Blair, Nebraska on behalf of such agency.
Notary Public
DOCS/2094598.2 13
CITY OF BLAIR, NEBRASKA, a Nebraska
municipal corporation
Name: James Realph
Title: Mayor
By:
Ma
ATTEST:
Au""� k)LA
Clerk
STATE OF NEBRASKA )
) ss.
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this 26th day of June, 2018, by James
Realph, Mayor, and Brenda Wheeler, Clerk, of the City of Blair, Nebraska, on behalf of the City
of Blair, Nebraska.
DOCS/2094598.2 14
Exhibit "A"
Redevelopment Project Area
Legal Description:
Area One:
Lot 2, in Transformation Hill Addition, in the City of Blair, Washington County, Nebraska.
Area Two:
Lots 12 thru 26, inclusive, in Transformation Hill Addition, in the City of Blair, Washington
County, Nebraska, together with that portion of Hansen Drive right-of-way lying south of the
southerly lot line of Lot 26.
Area Three:
Tax Lots 425 and 643 in the Northwest Quarter (NW1/4) of Section 11, Township 18 North,
Range 11 East of the 6th P.M., in the City of Blair, Washington County, Nebraska, together with
that part of Hansen Drive right-of-way and North 27th Street right-of-way abutting on the west
and south.
Area Four:
Lots 27 thru 57, inclusive, in Transformation Hill Addition, in the City of Blair, Washington
County, Nebraska, together with Krejci Boulevard.
* The above legal descriptions are approximations based upon a replat of the Redevelopment
Project Area, and any discrepancies between the legal descriptions and the depiction of the
Redevelopment Project Area below shall be decided in favor of the depiction of the
Redevelopment Project Area.
Exhibit "A"
DOCS/2094598.2
Depiction:
Exhibit "A"
DOCS/2094598.2
Projected Sources:
Estimated Tax Levy
Interest Rate
Number of Years
Property Valuation:
Pre -Project
Completed Project
Difference
Annual TIF Amount:
Total TIF Amount:
Exhibit "B"
Projected TIF Sources and Uses
2.05
TBD
15
Assessed Val.
$700,000*
$8,554,333**
$7,854,333
$159,393.69
$2,390,905
Est. Taxes (less 1% assessor's fee)
$14,206.50
$173,600.19
$159,393.69
* The assessed value of the Redevelopment Project Area is based upon an estimate and not
historical records due to replatting and the land's prior tax-exempt status. The actual base
valuation will be determined by the county assessor for Washington County.
* * The estimated value of the completed Redevelopment Proj ect is an average of the estimated
assessed values over the course of 15 years, based upon the anticipated progression of
construction.
Exhibit "B"
DOCS/2094598.2
Proiected TIF Uses (i.e.. Public Imurovements and Elieible Costs):
Asbestos Abatement
$210,000.00
Building Demo
$450,000.00
Tree Removal
$35,000.00
Grading (North)
$40,000.00
Grading (South)
$30,000.00
Gas Line Relocate
$20,000.00
Storm Water Management
$30,000.00
Reconstruction Hanson St., 27th St. & Workforce Blvd.
$100,000.00
Electric Installation for Lots 27 through 57
$45,000.00
Storm Sewer along Viking Cir.
$29,000.00
City TIF Costs for Subdivisions (itemized)
Extension Sewer fiom College Dr. to Hanson
$280,000.00
Extension Sewer to Lots 19-26
$120,000.00
Extension Sewer on Workforce Blvd.
$125,000.00
Street Extension for Workforce Blvd.
$125,000.00
Storm Sewer Workforce Blvd. $50,000.00
Temp turn -a -round Workforce Blvd. $20,000.00
Water Extension to Lots 27-57 $65,000.00
Legal Fees $20,490.00
Warrant Interest $42,510.00
TOTAL $1,837,000.00
* The above figures are only estimates of the Eligible Costs and such actual costs will be
reflected in the cost certifications required under section 2(b) of the Redevelopment Agreement.
* * All Eligible Costs contemplated in the Plan and not otherwise specified herein shall be
included as Eligible Costs for purposes of this Redevelopment Agreement under this Exhibit
"B"
* * * Eligible Costs are projected to be in excess of $1,480,000, but the initial Bond is limited to
$1,480,000 as a fiscal precaution due to the anticipated length of the Redevelopment Project and
unknown future market conditions. However, the City may issue additional Bonds, as provided
in section 2 of this Redevelopment Agreement, to cover any outstanding Eligible Costs in the
event that the incremental ad valorem real property taxes collected in relation to the
Redevelopment Project exceed the original Bond amount.
Exhibit "B"
DOCS/2094598.2
Exhibit "C"
Consent and Ratification
(See attached)
Exhibit "C"
DOCS/2094598.2
CONSENT AND RATIFICATION
The undersigned, Eriksen Construction Co., Inc., a Nebraska corporation ("Eriksen
Construction"), hereby executes this Consent and Ratification as of 71A( , 2018 (the
"Effective Date").
WHEREAS, the Community Development Agency for the City of Blair, Nebraska
("Agency") and the City of Blair, Nebraska, a Nebraska municipal corporation ("Redeveloper")
have entered into that certain redevelopment agreement dated 61y( (,, , 2018 (the
"Redevelopment Agreement"); and
WHEREAS, the Redevelopment Agreement affects that certain Property owned by
Eriksen Construction which is legally described on Exhibit "1" (the "Property"); and
WHEREAS, Eriksen Construction has agreed that the Property shall be subject to the
Redevelopment Agreement and the record owner of the Property shall comply with any
obligations set forth in the Redevelopment Agreement specific to the Property or owner; and
WHEREAS, Eriksen Construction has further agreed that in exchange for Redeveloper's
efforts in securing the Redevelopment Agreement and rights related thereto, Redeveloper shall
be entitled to retain all economic benefits and rights of the "Redevelopment Project" under the
Redevelopment Agreement, including, but not limited to, the proceeds of the Bonds (as defined
in the Redevelopment Agreement); and
WHEREAS, Eriksen Construction consents to the filing of, and ratifies the
Redevelopment Agreement and in all respects acknowledges and approves the Redevelopment
Agreement and its recording with this Consent and Ratification in the records of the Register of
Deeds of Washington County, Nebraska, against the Property.
NOW THEREFORE, by execution of this Consent and Ratification, Eriksen Construction
hereby ratifies the foregoing statements as of the Effective Date, acknowledges the receipt and
sufficiency of the consideration, and agrees that this Consent and Ratification shall run with the
land and shall be binding upon Eriksen Construction, its successors and assigns and upon each
successive owner of the Property or any portion thereof.
(Signatures on following page)
Consent and Ratification to Redevelopment Agreement
DOCS/2094598.2
IN WITNESS WHEREOF, Eriksen Construction has caused this Consent and
Ratification to be executed by its duly authorized representatives as of the Effective Date.
ERIKSEN CONSTRUCTION CO., INC., a
Nebraska cQrr)oratl0
Title: `G , �% 4 ' t' Qa
Consent and Ratification to Redevelopment Agreement
DOCS/2094598.2
Exhibit "1"
Legal Description of Property
Lots 12 thru 26, inclusive, in Transformation Hill Addition, in the City of Blair, Washington
County, Nebraska.
Consent and Ratification to Redevelopment Agreement
DOCS/2094598.2