2015-29COMMUNITY DEVELOPMENT AGENCY
OF THE CITY OF BLAIR, NEBRASKA
RESOLUTION NO. 2015-29
AGENCY MEMBER STEWART INTRODUCED THE FOLLOWING RESOLUTION
RECOMMENDING APPROVAL OF A DEVELOPMENT PLAN OF THE AGENCY AND APPROVAL
OF RELATED ACTIONS.
WITNESSETH:
WHEREAS, the Community Development Agency of the City of Blair, Nebraska ("Agency"), in
furtherance of the purposes and pursuant to the provisions of Section 18-2101 to 18-2154, Reissue of
Revised Statutes of Nebraska, 1997, as amended (the "Act") is considering Development of a blighted and
substandard area designated by the City of Blair ("City") as described in the Redevelopment Plan as
attached as Attachment A (the "Development Area"); and
WHEREAS, pursuant to and in furtherance of the Act, the Agency has prepared and considered a
Development Plan in substantially the form attached hereto as Exhibit A, the terms and conditions of
which are herein incorporated by reference ("Development Plan"), whereby Agency would agree to incur
indebtedness and take other actions for purposes specified in the Development Plan pursuant to the Act
(the "Project");
WHEREAS, the Agency has considered and desires to recommend approval of the Plan and the
transactions contemplated thereby.
NOW, THEREFORE, be it resolved by the Community Development Agency of the City of Blair,
Nebraska as follows:
1. The Agency has determined that the proposed land uses and building requirements in the
Plan and 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 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 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 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 of blight.
2. The Agency has conducted a cost benefit analysis for the Project in accordance with the
Act and has determined that the Project would not be economically feasible without the use of tax
increment financing, that the Project would not occur in the Development Area without the use of tax
increment financing, and that the costs and benefits of the Project, including costs and benefits to other
affected political subdivisions, the economy of the community, and the demand for public and private
services are in the long term in the best interests of the community impacted by the Project.
The Agency has determined the method of development and estimated cost and proceeds
C
of the Project, and the method of financing for the Project shall be creation of improvement districts for
water, sewer, and streets, including storm sewers, and redevelopment bonds to be purchased by the
developer without the full faith and credit of the City for all improvements financed through funds
generated by tax increment financing, as may be further outlined in the Development Plan.
4. The Agency has received a recommendation from the planning commission that the said
plan is in compliance with the City of Blair Comprehensive Plan and Zoning Regulations as required by
Section 18-2112 of the Act.
5. The Agency hereby recommends the Development Plan and the Project to the Blair City
Council for a public hearing and approval pursuant to Sections 18-2115 and 18-2116 of the Act. The
Clerk of the Agency is hereby directed to certify copies of this Resolution to the Blair City Council.
AGENCY MEMBER STEWART MOVED THAT THE RESOLUTION BE ADOPTED AS READ,
WHICH SAID MOTION WAS SECONDED BY AGENCY MEMBER SHEPARD. UPON ROLL
CALL, AGENCY MEMBERS SHEPARD, STEWART, HANSEN, WILLIS, ANDERSEN AND
WOLFF VOTING "AYE", AND AGENCY MEMBERS NONE VOTING "NAY", THE MAYOR
DECLARED THE FOREGOING RESOLUTION WAS PASSED AND ADOPTED THIS 8' DAY
OF SEPTEMBER, 2015.
Passed and approved by the City of Blair this 8th day of September, 2015.
COMMUNITY DEVELOPMENT
AGENCY OF THE CITY OF BLAIR, NEBRASKA
A ES E. REALPH, MAYO
ATTEST:
BRENDA R. WHEELER, CITY CLERK
(SEAL)
STATE OF NEBRASKA )
) :ss:
WASHINGTON COUNTY )
BRENDA R. 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 8th day of
September, 2015. f
BRENDA R. WHEELER, CITY CLERK
EXHIBIT A
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WOODHOUSE
REDEVELOPMENT PROJECT PLAN
LOTS 7 AND 8, PLEASANT VALLEY II,
AN ADDITION TO THE CITY OF BLAIR, NEBRASKA
AUGUST 19, 2015
Submitted by: -
c/o Larry A. Jobeun
Fullenkamp, Doyle & Jobeun
11440 West Center Road
Omaha, Nebraska 68144
(402) 334-0700
Introduction:
This redevelopment plan proposes to redevelop Lots 7 and 8, Pleasant Valley II,
an addition to the City of Blair, Washington County, Nebraska ("Redevelopment Site" or
"Site"), which is depicted on the attached Exhibit A, into a body shop consisting of
approximately 31,000 square feet, to be located on Lot 7, and a surface parking on Lot
8 of the Redevelopment Site. This Redevelopment Plan includes the entire
Redevelopment Site.
Site History and Proposed Development:
The Redevelopment Site is approximately 5.633 acres located west of Highway
30 at Pleasant Valley Boulevard. The Redevelopment Site is the former proposed hotel
and convention center project that commenced construction, but failed to be completed
after significant grading, site preparation and retaining wall work was done.
The Site is currently zoned Agricultural/Highway Commercial District (A/CH).
The cost of acquisition of the Redevelopment Site is $500,000.00, and the
estimated costs of tax increment financing ("TIF") eligible redevelopment costs are
$150,000, as shown on the attached Exhibit B. Accordingly, the total TIF eligible costs
are in the amount of $650,000.
The assessed value of the Redevelopment Site is presently $441,645.00. The
proposed valuation upon full build out of the proposed automobile dealership and
related facilities is expected to be approximately $2,015,000, based upon the proposed
redevelopment of the Site.
As a result of the failed development, the Redevelopment Site, in its present
condition, will continue to be a detriment and economic liability to this area of the City
without the use of tax increment financing as an economic incentive. The partially
graded Site and completed retaining wall constitute a hazardous and unsightly
condition. Storm water drainage from the site also makes redevelopment of the site
difficult. The re -grading of the site and the burying of the retaining wall increases the
development costs substantially and further impairs the successful redevelopment of
the site. There are approximately 22,000 yards of dirt that needs to be moved to make
the site developable.
The applicant believes that the developmental difficulties of the Redevelopment
Site has inhibited its redevelopment, and that without TIF, the costs to properly prepare
the Redevelopment Site to accommodate development will result in the site continuing
in its present undeveloped state.
Land Use/Zoning:
The site is currently zoned Agricultural/Highway Commercial District (A/CH),
which will allow construction and operation of a body shop with a conditional use permit
and surface parking area as a matter of right. Other than the approval of a conditional
use permit for the operation of a body shop, no zoning change will be required. The
proposed facility will comply with the site regulations for the A/CH base district zone.
This proposed development is consistent with the City's Comprehensive Development
Plan and will be compatible with adjacent developments. No material change in
population densities is anticipated.
Utilities/Infrastructure:
Water, gas, electric, communication, and sanitary sewer lines are available
adjacent to the Redevelopment Site although extensions of some utility mains may be
necessary to reach the Site. As indicated above, storm sewer facilities are uncertain as
to location, size and capacity. Further investigation is warranted and will be undertaken,
but storm water management presents a costly and difficult issue for this site.
TIF Compliance:
The request meets the necessary requirements for consideration under the
Nebraska Community Redevelopment Act. The project will provide various employment
opportunities in the City. Specifically, Woodhouse anticipates that the proposed
redevelopment project will result in the retention of approximately twenty-five (25)
employees and creation of up to five (5) new jobs over the course of the next 5 years,
with a projected average pay for each new employee of approximately $12 to $15/hour
for hourly employees and up to $100,000 for salaried employees and management.
The TIF proceeds will be used to cover acquisition, site preparation, utility costs and
other site specific TIF eligible costs. The project will have a positive economic impact
for the City of Blair, Nebraska. Further, the up -front costs associated with the
acquisition and preparation of the site for redevelopment would be prohibitively high
without the use of TIF as an economic incentive. As such, Woodhouse requests TIF to
help offset these costs such that the proposed redevelopment is feasible.
Financing:
The estimated value of the project upon full build -out is estimated to be
$2,015,000. Accordingly, the project will support the TIF request in the principal amount
of $294,718 with interest accruing at the rate of five percent (5%) per annum. The
amortization schedule is attached hereto as Exhibit C. The remaining project costs will
be paid through equity and/or debt financing.
TIF Cost Benefit Analysis:
The project provides for redevelopment on property within the City that has
remained undeveloped, underutilized and in a hazardous and unsightly condition.
Because of the high development costs, the benefits of developing this property are
unacceptable to Woodhouse without the use of TIF as an economic incentive.
Accordingly, it is necessary to implement innovative financing approaches to be used to
encourage redevelopment and to support the potential growth that will occur as a result
of this and other improvements that are likely to follow within the surrounding area. The
following benefits will result from the redevelopment of this area through the use of TIF:
(1) The use of TIF will not result in tax shifts. The current level of taxes will
continue to flow to the current taxing authorities and only the increased value of
revenues resulting from the improvements will be applied to the cost of the
improvements through the use of TIF.
(2) No community public service needs will be generated as a result of this
project. The proposed TIF will be used, in part, to offset costs that are eligible for TIF.
(3) The development of the Site will have a positive impact on the employers
and employees in the immediate area outside the area of the Site. Specifically, the
redevelopment will make the Site more aesthetically pleasing, which will result in a
positive impact on the areas surrounding the Site.
(4) The long-term benefits resulting from the elimination of the substandard
and blight conditions and the increase in the tax base resulting from the redevelopment
are other valid justifications for the use of TIF for this project.
The project site meets the requirements of the City's Comprehensive
Development Plan and City Ordinances as well as the Nebraska Community
Redevelopment Law that establishes the process and requirements for the approval of
this Redevelopment Plan.
Based upon the foregoing, the applicant respectfully requests TIF in the amount
of $294,718, with interest accruing thereon at the rate of five (5%) percent per annum.
Respectfully submitted,
Larry A. Jobeun
For the Firm
Acquisition:
Grading and Clearing:
Retaining Wall:
Storm Sewers:
Gas Service:
Power:
EXHIBIT B
TIF ELIGIBLE COSTS
$500,000
$54,000
$35,000
$25,000
$9,000
$26,000
649 000