2020-35RESOLUTION NO. 2020-35
COUNCIL MEMBER ANDERSON INTRODUCED THE FOLLOWING RESOLUTION:
RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF BLAIR,
NEBRASKA, APPROVING AND ADOPTING A REDEVELOPMENT PLAN
ENTITLED "REDEVELOPMENT PLAN FOR THE HAYDEN PLACE
REDEVELOPMENT PROJECT", PURSUANT TO THE NEBRASKA
COMMUNITY DEVELOPMENT LAW.
WHEREAS, the Mayor and City Council of the City of Blair, Nebraska (the "City"),
previously declared the South Highway 30 Area (the "Redevelopment Area") as blighted,
substandard and in need or redevelopment; and
WHEREAS, on October 6, 2020, the Community Development Agency for the City (the
"Agency") submitted the "Redevelopment Plan for the Hayden Place Redevelopment Project" (the
"Redevelopment Plan") to the Planning Commission of the City for its review and
recommendation, and the Planning Commission held a duly noticed public hearing on the
Redevelopment Plan and recommended adoption and approval of the Redevelopment Plan; and
WHEREAS, the Agency submitted a cost -benefit analysis, provided written findings, and
recommended the Mayor and City Council's adoption and approval of the Redevelopment Plan on
October 13, 2020; and
WHEREAS, the Redevelopment Plan, inclusive of the Agency's cost -benefit analysis, is
attached hereto as Exhibit "A" and incorporated herein; and
WHEREAS, the Mayor and City Council finds, based on substantial evidence in the record
of this proceeding, that redevelopment of the Redevelopment Area as set forth in the
Redevelopment Plan will result in the elimination and prevention of blight and aligns with the
purposes of the Nebraska Community Development Law and the comprehensive plan of the City;
and
NOW, THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City as
follows:
Section 1. The Mayor and Council hereby find and determine that there has been
recommended for their approval by the Agency the Redevelopment Plan; that the Redevelopment
Plan has been reviewed and approved by the Planning Commission of the City; that the
Redevelopment Plan relates to the redevelopment of an area which has been previously determined
by the Mayor and Council to be a blighted and substandard area in need of redevelopment; that
notice has been given as required by law for a public hearing on the Redevelopment Plan and at
the time and place set for such hearing all persons desiring to be heard concerning the
Redevelopment Plan have been heard; and that the Redevelopment Plan is feasible and in
conformity with the comprehensive plan for the development of the City, as a whole, and is in
conformity with the legislative declarations and determinations set forth in the Nebraska
Cominunity Development Law, sections 18-2101 to 18-2144, as amended (the "Act").
Section 2. The Mayor and Council hereby determine that the Redevelopment Plan uses
funds authorized in section 18-2147 of the Act, and in relation thereto hereby make the following
additional findings and determinations: (a) that the redevelopment project described in the
Redevelopment Plan would not be economically feasible without the use of tax -increment
financing, (b) that such redevelopment project would not occur in the community redevelopment
area as described in the Redevelopment Plan without the use of tax -increment financing, and (c)
that the costs and benefits of such redevelopment project, including costs and benefits to other
affected political subdivisions, the economy of the City and surrounding area, and the demand for
public and private services have been analyzed by the Mayor and City Council (including the cost -
benefit analysis prepared by the Agency) and have been and hereby are found to be in the long
term best interest of the City and surrounding area as the community impacted by such
redevelopment project.
Section 3. Based upon the foregoing and substantial evidence in the record of this
proceeding, the Mayor and City Council of the City hereby adopt and approve the Redevelopment
Plan.
COUNCILMEMBER KEVIN HALL MOVED THAT THE RESOLUTION BE ADOPTED AS
READ, WHICH SAID MOTION WAS SECONDED BY COUNCILMEMBER BRAD
ANDERSEN, UPON ROLL CALL, COUNCILMEMBERS HALL, ANDERSEN, WOLFF,
WILLIS, AND STEWART VOTING "AYE", AND COUNCILMEMBERS RUMP VOTING
"NAY", THE MAYOR DECLARED THE FOREGOING RESOLUTION PASSED AND
ADOPTED THIS 13TH DAY OF OCTOBER 2020.
CITY OF BLAIR, NEBRASKA
B
RICHARD HANSEN, MAYOR
ATTEST:
BRENDA WHEELER, CITY CLERK
(SEAL)
APPROVED AS TO FORM:
SPECIAL CITY ATTORNEY
REDEVELOPMENT PLAN FOR
THE HAYDEN PLACE REDEVELOPMENT PROJECT
BLAIR, NEBRASKA
PREPARED SEPTEMBER, 2020
BY THE COMMUNITY DEVELOPMENT AGENCY OF
THE CITY OF BLAIR, NEBRASKA
DOCS/2510755.3
A. Introduction
This Redevelopment Plan for a blighted and substandard area of the City of Blair,
Nebraska ("Redevelopment Plan") is a guide for redevelopment activities to remove or eliminate
blight and substandard conditions within the City of Blair, Nebraska ("City"). The Mayor and
City Council of the City (the "Council"), recognizing that blighted and substandard conditions
are a threat to the continued stability and vitality of the City, designated certain areas of the City
to be blighted and substandard and in need of redevelopment pursuant to the requirements of the
Nebraska Community Development Law, sections 18-2101 et. seq., as amended (the "Act").
This Redevelopment Plan submits the phased implementation of a redevelopment project
in the blighted and substandard "South Highway 30 Area" community redevelopment area (the
"Redevelopment Area") to optimize the tax increment financing ("TIF") resources available for
site acquisition, construction of eligible public improvements, and to remove existing and avoid
future blighted and substandard conditions. This Redevelopment Plan contemplates the phased
construction of a hotel, convention center, and other related amenities and improvements within
the Redevelopment Area (such public and private improvements required therefrom are
collectively referred to herein as the "Redevelopment Project").
B. Redevelopment Area and Project Site; Existing Conditions
Exhibit "A", attached hereto and incorporated herein, sets forth the boundaries and
existing conditions of the Redevelopment Area. Exhibit "A-1", attached hereto and incorporated
herein, sets forth the boundaries and existing conditions of the area to be developed as part of the
Redevelopment Project (the "Project Site"). The Project Site is completely engrossed within the
blighted and substandard Redevelopment Area and is in need of redevelopment.
C. Conformance with the Comprehensive Plan
In accordance with the Act, this Redevelopment Plan has been designed to conform to the
City's adopted Comprehensive Plan (the "Comprehensive Plan"). Currently zoned as
Agricultural Business and Commercial District (A/CH), the Project Site will not require a change
of zoning to allow for the uses contemplated herein. Exhibit "B", attached hereto and
incorporated herein, shows the Comprehensive Plan's future use map for the City. The map sets
forth Commercial designation for future use of the Project Site.
This Redevelopment Plan was developed on the basis of the goals, policies and actions
adopted by the City for the community as a whole and for the Redevelopment Area and Project
Site. General goals, policies and actions relating to the community as a whole and for the
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DOCS/2510755.3
Redevelopment Area (inclusive of the Project Site) are contained in the Comprehensive Plan.
Among others, the Comprehensive Plan identifies the following goals:
1. Foster the values of the community and encourage the development of local action to
preserve and strengthen the City of Blair.
2. Implement appropriate community and economic developments to support an annual
population growth of 1.5% and achieve a population of 10,000 by the year 2035.
3. Broaden the economic base to create and expand employment opportunities for all age
categories.
4. Preserve and improve the physical appearance and character of the community,
prioritizing the downtown district and the community points of entry along the Highway
30 and 75 corridors.
The Redevelopment Project will aid in achieving the objectives listed above. In
accordance therewith, this Redevelopment Plan is feasible and in conformity with the
Comprehensive Plan as a whole and conforms to the legislative declarations and determinations
set forth in the Act.
D. Redevelopment Project Overview
The Project Site is located at the northeast corner of the intersection of South 20th Street
and Kellie Drive, directly to the east of Highway 30, on a vacant parcel of land. The
Redevelopment Project will consist of two concurrent phases, consisting of the construction of a
hotel and convention center.
SAI Properties V, Inc., its assignees and/or affiliates (collectively, "Redeveloper") will
undertake the construction of the Redevelopment Project. Redeveloper does not yet own the real
property within the Project Site but has entered into a purchase agreement for the Project Site
with the current owner. Redeveloper intends to close on the Project Site subsequent to approval
of this Redevelopment Plan and a redevelopment contract for each phase. No public acquisition
of the Project Site is necessary to construct the Redevelopment Project. However, it is
anticipated that Redeveloper may enter into a sale-leaseback with the City for the convention
center constructed as part of Phase Two pursuant to the terms of the redevelopment contract for
Phase Two and/or a separate agreement. No families will be displaced as a result of the
Redevelopment Project.
The Redevelopment Project will require infrastructure improvements and other public
and private improvements which are not financially feasible to undertake at one time.
Completing the Redevelopment Project in phases will allow the Redeveloper to maximize the
TIF resources available for public improvements, which will be necessary for the
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DOCS/2510755.3
Redevelopment Project to succeed. Further, implementation of the Redevelopment Project in
multiple phases will allow Redeveloper to construct the private improvements at a rate that the
market can support, and to adapt subsequent phases of the project to the changing needs of the
City. The Community Development Agency for the City (the "Agency") and Redeveloper
anticipate that Redeveloper will construct the Redevelopment Project in two phases consisting of
the following private improvements:
"Phase One": Construction of an approximately three-story, 38,000 to 45,000 square
foot hotel.
"Phase Two": Construction of an approximately 4,000 square foot convention center.
Each phase may have a different "effective date" (as provided under section 18-2147 of
the Act), so that the division of incremental ad -valorem real estate taxes for purposes of TIF will
be determined on a lot by lot basis in order to maximize the TIF proceeds available to help
finance the public improvements. While the market will determine the actual completion
schedule for each phase, Redeveloper anticipates that the buildout of each phase will take
approximately 9 to 12 months. However, the Redevelopment Project requires flexibility and
may require a longer construction period for one or both phases.
Exhibit "C", attached hereto and incorporated herein, sets forth the proposed site plan for
both phases. Subsequent to the approval of this Redevelopment Plan, Redeveloper may
subdivide the Project Site. It is anticipated that an unrelated redeveloper may develop the
remainder of the Project Site as separate subsequent redevelopment projects. Such development,
if any, shall be set forth in an amendment to this Redevelopment Plan.
E. Existing Conditions
1. Existing Land Use
The Project Site consists of vacant, undeveloped land.
2. Existing Zoning
The Project Site is currently zoned as Agricultural Business and Commercial District
(A/CH). A/CH zoning allow for hotels and exhibition halls/auditoriums (i.e., convention
centers). Accordingly, a zoning change is not required.
DOCS/2510755.3
3. Existing Public Improvements
There are no existing public improvements on the Project Site. However, infrastructure
exists on adjacent lots and will provide for extension thereto.
F. Proposed Redevelopment
1. Public Improvements
The Redevelopment Project will require significant infrastructure improvements and
other public improvements. These improvements will include, but are not limited to:
a. Public Access; Traffic Flow Street Layouts and Street Grades
The Project Site will require additional public roadways providing access to the Project
Site. As shown on the Exhibit "C" site plan, the development includes the construction of a
public right-of-way from Holly Street and Highway 30 to serve the Project Site. Redeveloper
intends to construct (or cause others to construct) said access in Phase One of the Redevelopment
Project. Redeveloper will also construct sidewalks providing pedestrian access to the Project
Site. The public improvements for the Redevelopment Project will address any traffic and street
infrastructure concerns that would otherwise be created by the Redevelopment Project. All
streets and other public infrastructure constructed by Redeveloper will be subject to review and
approval by the City's engineer or other designee of the City.
b. Construction of Water and Sewer Improvements.
Redeveloper will construct or extend water and sewer systems to provide appropriate
service to the Project Site; and the Project Site will be filled and graded to provide for effective
surface water runoff.
C. Other incidental improvements
The Project Site is currently undeveloped and will require grading to provide effective
drainage throughout the area. The Project Site requires filling and grading to properly drain the
ground water runoff and provide appropriate grading levels to erect the improvements.
Redeveloper anticipates the construction of electric utilities extending to the improvements
within the Project Site. Additionally, the Redevelopment Project will include landscaping of the
Project Site to enhance the aesthetic of the area. The anticipated public improvements (and costs
related to the public improvements) for each of the two phases are listed in Exhibit "E", attached
hereto and incorporated herein.
M
DOCS/2510755.3
d. Additional public facilities or utilities
Other than the construction or extension of the utilities and infrastructure detailed above,
Redeveloper and the City anticipate that the existing public facilities and utilities can adequately
meet the demands of the Redevelopment Project.
e. Property Acquisition Demolition and Disposal
No public acquisition of private property or relocation of families or businesses is
necessary to accomplish the Redevelopment Project. However, it is anticipated that Redeveloper
may engage in a sale-leaseback with the City for the convention center constructed as part of
Phase Two pursuant to the terms of the redevelopment contract for Phase Two and/or a separate
agreement. Redeveloper intends to purchase the Project Site from the current owners subsequent
to approval of this Redevelopment Plan.
f. Population Density
The Project Site currently sits undeveloped and vacant. The Redevelopment Project is a
commercial development and will not increase population density in the area.
g. Land Coverage
Land coverage for the Phase One and Phase Two includes approximately 2.7 acres of
undeveloped land. The Redevelopment Project will consist of the construction of an
approximately three-story, 38,000 to 45,000 square foot hotel and an approximately 4,000 square
foot convention center, with the footprint shown on the site plan set forth in Exhibit "C". The
Redevelopment Project will comply with all applicable land coverage ratios required by the City.
h. Parking
Phase One and Phase Two includes the construction of approximately 114 combined
surface parking stalls. The Redevelopment Project will comply with all applicable parking
requirements under the City's zoning code.
g. Zoning Building Code and Ordinance
The Project Site is currently zoned as Agricultural Business and Commercial District
(A/CH). A/CH zoning allow for hotels and exhibition halls/auditoriums (i.e., convention
centers). Accordingly, a zoning change is not required. Redeveloper may subdivide the current
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DOCS/2510755.3
parcels comprising the Project Site. Notwithstanding, Redeveloper will be responsible for all
zoning, building code, or ordinance changes that are necessary for the Redevelopment Project.
2. Private Improvements
Private improvements for the Redevelopment Project Area consist of the construction of
an approximately three-story, 38,000 to 45,000 square foot hotel and an approximately 4,000
square foot convention center over the course of two phases. Redeveloper or other builders
taking reconveyance from Redeveloper will construct the private improvements. Paragraph D of
this Redevelopment Plan details the anticipated phasing of the private improvements.
G. Project Costs
The total estimated costs of the Redevelopment Project are $7,572,203 for Phase One and
$1,090,000 for Phase Two. The estimated costs of the Redevelopment Project are attached and
incorporated herein as Exhibit "D".
H. Implementation
Redeveloper is unable to undertake the construction in Phase One of the Redevelopment
Project without some assurance that Redeveloper can undertake the additional phases.
According to Redeveloper, it could not complete the initial public improvements for Phase One
but -for the approval of the entire Redevelopment Project and, likewise, the subsequent phases of
the Redevelopment Project would not occur but -for these initial public improvements.
Accordingly, this Redevelopment Plan contemplates that the costs and expenses of all the public
improvements for the Redevelopment Project are eligible TIF uses for each phase of the
Redevelopment Project (as allocated). As such, Redeveloper may apply the TIF Indebtedness
(defined below) generated from each phase of the Redevelopment Project toward the payment of
the eligible expenses of the entire Redevelopment Project, if necessary.
The Redevelopment Project's construction schedule will depend on a number of
extraneous factors, but Redeveloper anticipates that the each phase will be completed in
approximately 9 to 12 months; provided that market demand and other extraneous factors may
necessitate that Redeveloper completes one or more phases over a number of additional months.
Redeveloper intends to construct the phases concurrently. Redeveloper anticipates the following
construction schedule:
Phase One:
Construction start date: Spring 2021
Construction completion date: 4th Quarter of 2021 or 1 st Quarter of 2022
0
DOCS/2510755.3
Phase Two:
Construction start date: Spring 2021
Construction completion date: 4th Quarter of 2021 or 1st Quarter of 2022
The anticipated start dates and completion dates for the two phases are preliminary and
subject to change based upon market conditions, availability of materials, workforce availability
and other extraneous factors.
I. Financing
The City and the Agency contemplate the use of TIF for the Redevelopment Project.
Section 18-2147 of the Act authorizes the use of TIF. It provides that any ad valorem tax levied
upon real property, or any portion thereof, in a redevelopment project shall be divided, for a
period not to exceed fifteen years after the effective date as identified in the redevelopment
contract, or amendment thereof, or in the resolution(s) of the authority authorizing the issuance
of bonds pursuant to the Act, as follows:
(a) That portion of the ad valorem tax the levy produces 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 are all other
taxes collected by or for the body ("Base Tax Amount"); and
(b) That portion of the ad valorem tax on real property, as provided in the
redevelopment contract or bond resolution, in the redevelopment project in excess
of the Base Tax Amount, if any, (referred to herein as "TIF Revenues") shall be
allocated to and, when collected, paid into a special fund of the authority to be
used solely to pay the principal of, the interest on, and any premiums due in
connection with the bonds of, 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, the redevelopment
project.
With respect to the Redevelopment Project, the actual base tax year and Base Tax
Amount for each phase will be determined in the manner that will be set forth in the
redevelopment contract, or amendment thereof, and/or the resolution(s) authorizing the TIF
Indebtedness for such phase. The Agency and Redeveloper anticipate that the effective dates
may be different for each of the phases, and therefore the increment period for each phase may
be different. It is further anticipated that the Agency will issue one TIF bond or note for each
phase (i.e., two total).
7
DOCS/2510755.3
Notwithstanding any provision herein to the contrary, all tax revenues resulting from
improvements constructed/installed after the commencement of the first portion of each phase or
portion thereof shall only be divided and allocated over the applicable 15 -year increment period
or payment of the TIF Indebtedness, whichever occurs first.
1. Necessity of TIF
Redeveloper has represented and warranted to the City that it would not be economically
feasible to develop the Redevelopment Project without TIF. The Project Site is vacant and
requires extensive investment before any development can be done. The cost of land greatly
exceeds the current assessed value and the purchase agreement requires Redeveloper to pay
additional costs for the site preparation and utility improvements. Additionally, the
Redevelopment Project is designed to exceed minimum building code requirements and create an
aesthetic improvement in the Redevelopment Area, but construction costs are too high to achieve
the same without TIF. The Redevelopment Project could be built on a greenfield site for less
cost, but the Redeveloper desires to locate on the Project Site if TIF assistance is available to aid
in the removal of blighted and substandard conditions within the Redevelopment Area.
Without TIF, Redeveloper would incur a negative cash flow and return on investment
over the course of the first three years. Accordingly, the Redevelopment Project is not
economically viable without the assistance of TIF and Redeveloper would not construct the
Redevelopment Project without TIF.
Additionally, due to significant public improvement costs, Redeveloper cannot construct
the Redevelopment Project without the use of TIF for all phases of the Redevelopment Project.
Construction of Phase One is not feasible without the intent to complete all the phases, and
Phases Two are not feasible without the use of TIF. Thus, the approval of TIF for all phases is
critical to Redeveloper's undertaking of the Redevelopment Project.
2. Sources and Uses of Financing
Based upon the projections provided in Exhibit "E", attached hereto and incorporated
herein, the Agency and Redeveloper contemplate issuance of a TIF bond or note for each phase
(the "TIF Indebtedness") in the principal amounts not to exceed $970,000 for Phase One and
$170,000 for Phase Two at the interest rates set forth in Exhibit "E". Notwithstanding the
foregoing, the principal amount shall not exceed the TIF -eligible costs incurred by Redeveloper.
The final principal and interest amount comprising the TIF Indebtedness shall be determined by
the Agency and set forth in the redevelopment contract or bond resolution for such phase.
The total estimated cost of the Redevelopment Project is $7,572,203 for Phase One and
$1,090,000 for Phase Two. Redeveloper anticipates that the balance of the public and private
DOCS/2510755.3
costs exceeding the TIF Indebtedness will be financed by a mix of equity, public grant
assistance, and traditional bank financing. Redeveloper and the Agency will provide a more
detailed breakdown of the TIF sources and uses in the redevelopment contract, or amendments
thereof, for each phase of the Redevelopment Project. The above figures are only projections
and are subject to change as a result of market conditions and other extraneous factors, and may
be revised in the redevelopment contract for a respective phase.
J. Cost -Benefit Analysis
A cost -benefit analysis for the Redevelopment Project is attached as Exhibit "F" and
incorporated herein.
Fxbibits
Exhibit A:
Redevelopment Area
Exhibit A-1:
Project Site and Existing Land Use
Exhibit B:
Future Land Use Map
Exhibit C:
Site Plan and Future Land Use
Exhibit D:
Estimated Construction Cost of the Redevelopment Project
Exhibit E:
Sources and Uses of TIF
Exhibit F:
Cost -Benefit Analysis
0
DOCS/2510755.3
EXHIBIT "A"
Redevelopment Area
(South Highway 30 Area)
C—led By: MRG --- ■
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Revised:
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City of Blair Blight Study Focus Areas
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Exhibit "A"
DOCS/2510755.3
Depiction (outlined in red):
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* Phase One and Phase Two of the Redevelopment Project only comprise a portion of the above area, as shown on Exhibit "C".
Exhibit "A-1"
DOCS/2510755.3
Project Site and Existing Land Use
Legal Description:
BC HAYDEN PLACE FIRST ADD REPLAT ONE LOT 1 114 PC 1 1.65 AC, BLAIR, WASHINGTON
COUNTY, NEBRASKA (Parcel ID 890087921);
and
BC HAYDEN PLACE FIRST ADD REPLAT ONE LOT 2 114 PC 2 1.59 AC, BLAIR, WASHINGTON
COUNTY, NEBRASKA (Parcel ID 890087922)
TOGETHER WITH
All public rights-of-way adjacent thereto.
* Subsequent to the approval of this Redevelopment Plan, the Redeveloper may subdivide the Project
Site. Subsequent to said subdivision, if any, the above legal description shall be replaced with the legal
description provided in the subdivision of the Project Site approved by the City.
Exhibit "A-1 "
DOCS/2510755.3
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Site Plan and Future Land Use
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* The above is a preliminary site plan and is subject to change.
Exhibit "C"
DOCS/2510755.3
EXHIBIT "D"
Estimate of Construction Costs
Phase One:
Site Acquisition
$300,000
Construction Costs
$6,552,203
Grading/Site Prep
$40,000
Survey/site testing/permitting
$20,000
Drainage/Detention
$40,000
Drives/sidewalks
$40,000
Utility/Infrastructure improvements
$250,000
Landscaping
$10,000
Energy efficiency enhancements
$20,000
Fagade enhancements
$100,000
Arch/En ing_ eering/Legal
$200,000
TOTAL:
$7,572,203
* The above estimates are preliminary estimates and subject to change.
Phase Two:
Site Acquisition
$240,000
Construction Costs
$725,000
Grading/Site Prep
$25,000
Fagade enhancements
$50,000
Arch/Engineering/Legal
$50,000
TOTAL:
$1,090,000
* The above estimates are preliminary estimates and subject to change.
Exhibit "D"
DOCS/2510755.3
EXHIBIT "E"
Sources and Uses of TIF
USES*
Phase One:
Site Acquisition
$300,000
Grading/Site Prep
$40,000
Survey/site testing/permitting
$20,000
Drainage/Detention
$40,000
Drives/sidewalks
$40,000
Utility/Infrastructure improvements
$250,000
Landscaping
$10,000
Energy efficiency enhancements**
$20,000
Fagade enhancements * * *
$100,000
Arch/Engineering/Legal
$200,000
TOTAL:
$1,020,000
* The above estimates are preliminary estimates and subject to change.
Phase Two:
Site Acquisition
$240,000
Grading/Site Prep
$25,000
Fagade enhancements ***
$50,000
Arch/Engineering/Legal
$50,000
TOTAL:
$365,000
* The above estimates are preliminary estimates and subject to change.
* * Energy efficiency enhancements shall include energy efficient building systems and
appliances, as well as LED lighting installed throughout the hotel and parking lot lighting, which
exceeds minimum code requirements and will reduce the energy load of the Project on the City.
* * * Fagade enhancements shall include stone exterior improvements on portions of the building,
as well as other enhancements to the exterior of the building that exceed minimum code
requirements.
Exhibit "E"
DOCS/2510755.3
SOURCES
Assumptions:
Phase One Base Value:
$163,363
Phase One Final Value:
$4,600,000
Phase Two Base Value:
$130,549
Phase Two Final Value:
$900,000
Tax Levy (2019):
2.122854
Phase One TIF Indebtedness:
$970,000
Phase Two TIF Indebtedness:
$170,000
Phase One Interest Rate:
NTE 5.08%
Phase Two Interest Rate:
NTE 4.93%
Amortization:
Phase
1
2
Effective Date
2022
2022
TIF Period
15
15
Base Value
$163,363
$130,549
Base Taxes
$3,468
$2,771
Completed Value
$4,600,000
$900,000
Total Taxes
$97,651
$19,106
Tax Increment
$94,183
$16,335
less 1% fee
$93,241
$16,172
Total Increment over TIF Period
$1,398,615
$242,580
* The above "sources" for the Redevelopment Project are estimates based upon the above
assumptions and those listed section 1 of the cost -benefit analysis attached as Exhibit "F".
Exhibit "E"
DOCS/2510755.3
EXHIBIT "F"
Cost -Benefit Analysis
(Pursuant to Neb. Rev. Stat. § 18-2113)
The cost -benefit analysis for the Redevelopment Project, as described in the attached
Redevelopment Plan, which will utilize funds authorized by section 18-2147 of the Act, is
provided below:
1. Tax shifts resulting from the approval of the use of funds pursuant to
Section 18-2147:
The taxes generated by the base value of the Project Site will continue to be allocated
between the relevant taxing jurisdictions pursuant to the Act. Only the incremental taxes created
by the Redevelopment Project will be captured to pay for the project's eligible public
expenditures. Since the incremental taxes would not exist without the use of TIF to support the
Redevelopment Project, the true tax shift of the Redevelopment Project is a positive shift in taxes
after 15 years. However, for the purposes of illustrating the incremental taxes used for TIF, the
estimated 15 year tax shift for each phase and sub -phase of the Redevelopment Project is set
forth in Exhibit "E" of the Redevelopment Plan.
Notes:
The combined assessed value of the 3.24 acre Project Site for January 1, 2020 was
$352,835.
2. The land comprising Phase One consists of approximately 1.5 acres, which equals
46.3% of the above parcel. Phase Two consists of 1.2 acres, which equals 37% of the
above parcel. Accordingly, it is anticipated that the approximate base value for that
portion of the project site included in each phase shall be as follows:
• Phase One: $163,363
• Phase Two: $130,549
3. The Projected Tax Increment is based on assumed values and levy rates; actual
amounts and rates will vary from those assumptions, and it is understood that the
actual tax shift may vary materially from the projected amount. The levy rate is
assumed to be the 2019 levy rate. There has been no accounting for incremental
growth over the 15 year TIF period.
Exhibit T"
DOCS/2510755.3
2. Public infrastructure and community public service needs impacts and local
tax impacts arising from the approval of the redevelopment project:
a. Public infrastructure improvements and impacts:
The Project requires extensive public infrastructure installation. The Project Site will
require additional public roadways to serve the Project Site. The Redevelopment Project will
include the construction of a public right-of-way from Holly Street and Highway 30 to serve the
Project Site. The public improvements for the Redevelopment Project will address any traffic
and street infrastructure concerns that would otherwise be created by the Redevelopment Project.
Redeveloper will construct or extend water and sewer systems to provide appropriate service to
the Project Site; and the Project Site will be filled and graded to provide for effective surface
water runoff. Redeveloper anticipates the construction of electric utilities extending to the
residences within the Project Site. Additionally, the Redevelopment Project will include
landscaping of the Project Site to enhance the aesthetic of the area. It is the intent of this
Redevelopment Plan that such infrastructure and site preparation be paid for by the Redeveloper
with such cost to be reimbursed by TIF. The Agency and Redeveloper do not anticipate that the
Redevelopment Project will have a negative impact on City infrastructure or services.
b. Local Tax impacts (in addition to impacts of Tax Shifts described above):
The Redevelopment Project should create material tax and other public revenue for the
City and other local taxing jurisdictions. While the use of TIF will defer receipt of a majority of
new ad valorem real property taxes generated by the Redevelopment Project, the Redevelopment
Project should generate immediate tax growth for the City. The Redevelopment Project and new
commercial businesses therein will require and pay for City services. Additionally, the City will
collect sales tax on a portion of the materials used for the Redevelopment Project. It is not
anticipated that the Redevelopment Project will have any material adverse impact on such City
services, but will generate revenue providing support for those services.
3. Impacts on employers and employees of firms locating or expanding within
the boundaries of the area of the redevelopment project:
It is anticipated that new employers will locate within the Project Site to operate the
businesses thereon. Because the site is currently vacant and underutilized, the Redevelopment
Project should have a positive impact on employers and employees of firms locating or
expanding within the boundaries of the area of the redevelopment project.
Exhibit T"
DOCS/2510755.3
4. Impacts on other employers and employees within the City and the
immediate area that is located outside of the boundaries of the area of the redevelopment
project:
The Redevelopment Project should have a material positive impact on private sector
businesses and citizens outside the boundaries of the Project Site. The Redevelopment Project
will involve installation of public utilities, and the use of TIF should defray the costs of these and
other public improvements that would otherwise be paid through tax revenue or special
assessments that would burden adjacent property owners. The Redevelopment Project will
provide services and commerce that are currently absent from the area, which will benefit
employers, employees, and the City in general. Further, the guests of the hotel and other
businesses constructed as part of the Redevelopment Project should increase the need for
services and products from existing businesses in the surrounding area. Accordingly, the
Redevelopment Project is anticipated to have a positive impact on surrounding employers and
employees.
5. Impacts on student populations of school districts within the City:
As a commercial development, the Redevelopment Project will not impact student
populations of the school districts within the City.
6. Other impacts determined by the Agency to be relevant to the consideration
of costs and benefits arising from the redevelopment project:
The Project Site is blighted and contains substandard conditions that are a detriment to
the City as a whole. The Redevelopment Project will revitalize and occupy a vacant space
without negatively impacting the surrounding businesses, residents or straining the public
infrastructure. There are no other material impacts determined by the Agency relevant to the
consideration of the cost or benefits arising from the Redevelopment Project. As such, the costs
of the Redevelopment Project are outweighed by its benefits.
4823-5228-0007, v. 1
Exhibit "F"
DOCS/2510755.3