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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 >'-i�r>t�•S i's"�,.°'tYw{r':; cca ':+. - 11 fr"�. �i3.: oi;Y 1 �•1� � f:� _- I W. , - r 'L l , . '+Z - it � � (�'–•n ' "� - �� 4 I r ''a) . c t - - r: �� may.—•�� I � ,'� .'� �I ? rill}S y 1j 1}}}tt'y1i 4� 'v •,. •`_ __ _1� - �_ .,j �.+�� rl lfjf,!''�t"PS sT y _r;^`l _� �� � WWW. ��J. t \\%'�4� ti:l. �, � ,, _ __ _`-i !% k' % - \'` �✓+�f � -�• t to i I % 2 ddd ``�.�` ,jai ��;�'; ��' � ��'����� ~��� -- f," a,<rl _` �•` 's. ,,t'`: � —��'� ��x �,'^�� '�,e� �} t}�{`1� � rY y' '�L t �t����'�a' �ls�.�✓r r- /J.�j 1 + t, �>J � _ _ti -,a �' . °.r§s, ;L, `k --�tL� l I ^S��'.t•��y-` �--_'--__�`'t}=t�,.�" =�Z.� — ,lte• �r �_ry bqa k� I (� i t 1 ,�' -k = -._ter_.: •� _•-•a}— 3— n— •�`,� (tri.} .;j�jfrjr jltr;tririsili(//q�O� , +°It�f j,/j�e •� J}{ f' f� �}•j A &.Frgiy<�,��g. g .t + 17i?i I' 77j �rff +1 j��tt IJ f. tr tjr rj J�, ''��tt;�l•�l )��� � it+f � '% 1 �I�j�riJJ'j ,/1rj,,,fj�,+rri ,•jet, ,+ 4 I° t' a ok 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