20201218085823793 - CopyAMENDMENT TO THE REDEVELOPMENT PLAN
FOR THE TRANSFORMATION HILL REDEVELOPMENT AREA
OF THE CITY OF BLAIR, NEBRASKA
BLAIR, NEBRASKA
PREPARED FEBRUARY, 2020
11 Introduction
The Mayor and City Council for the City of Blair, Nebraska (the previously
approved and adopted a redevelopment plan entitled "Redevelopment Plan for the
Transformation Hill Redevelopment Area of the City of Blair, Nebraska" for redevelopment in a
blighted and substandard area in the City (the "Redevelopment "). A copy of the
Redevelopment Plan is attached hereto and incorporated herein as Exhibit "2".
This amendment to die, Redevelopment Plan ("Amendment") submits certain change.,-, to
the Redevelopment Plan, as highlighted in sections 3 through 6, below, This Amendment
incorporates the terms- of the, Redevelopment Plan as iffrilly set forth herein, provided, however,
that if the terms of this Amendment conflict with the Redevelopment Plan, this Amendment -,hall
control, Any capitalized terms not otherwise defined herein shall have the meaning set forth in
the Redevelopment Plan,
2. Purpose and Necessity ol'Aniendment
The City and Community Development Agency of the City of Blair, Nebraska (the
"Agency") anticipate that the construction of private improvements upon the developed lots
included as part ortlic Project will occur over a number of years. Accordingly, in order to
maximize the tax -increment revenues- available for the Project and decrease the financial burden
that would otherwise be assessed by the City against lot owners, the City and Agency wish to
phase the Projcct so that the statutory period for collecting the excess ad valorem real property
taxes on a certain lot or lots mirrors the completion of the. private improvement build -out
associated with such lot or lots. By doing so, the City will increase the amount ofTIF available
for reimbursement of the public improvements associated with the Project, while decreasing the
amount assessed to subsequent landowners or incurred by the City. No ffirthersubstantive
change.,; to the Redevelopment Plan are necessary, except those provided in sections 3 through 6,
below. As such, in compliance with section 18-2117 of the Act, this Amendment to the
Redevelopment Plan is necessary to ensure that the Redevelopment Plan reflects the -updated
phased construction and financing plan for the Project.
3. Amendment to Total Cost of Project and Amount of TIF Indebtedness
The total anticipated cost of $2,000,000 for the Project, and all references in the
Redevelopment Plan thereto, shall be amended and replaced with a total anticipated cost of
$2,440,112 for the Project. Further, the anticipated amount of $1,480,000 in TIF Indebtedness,
and all references in the Redevelopment Plan thereto, shall be amended and replaced with an
anticipated amount of S 1,950,000 in TIF indebtedness.
fW, IV24_10407, t
4: Phasing of Project
The City, as redeveloper, intends, to construct all public infrastructure improvements
detailed in the Redevelopment Plan that arm neces-saty for the Project. Thereafter, private
developers will construct the private improvements thereon, creating the valuation increases to
be captured by TIF. Because construction of the private improvements is sul:ject to market
demand and absorption, the period(s) For such collection of the excess ad valorem real estate
taxes will be phased in connection with the progression of the private improvements to maximize
the TIF resources available. For example, if private improvements are built on lots 1-7 during
the first year that taxes are to be divided, such lots shall constitute the first phase of the Project,
with the process repeating in a like manner for subsequent years; provided that the Agency, in its
discretion, may include unimproved lots within any such phase. It is anticipated that the Prqicct
could include up to eleven (11) phases, but more or less may be necessary based upon market
demand and other extraneous factors, subject tothe Agency's discretion. Bymaximizing the TIF
resources available and capturing more in TIF, the City will decrease the amount that would
otherwise be assessed against the lots to pay for the costs of the Pi-qjcct exceeding those serviced
by TIF.
The City is unable to undertake construction of the public infrastructure during the first
phase of the Project but -for the approval of the entire, Project (inclusive of the build -out of the
private improvements) and, likewise, the subsequent phases of the Prcj cot would not occur butt'
for these initial public improvements. Accordingly, this Redevelopment Plan Contemplates that
the costs and expenses of all the public improvements for the Project are eligible TIF uses for
each phase of the Prqjcct (as allocated). As such, the City may apply the TIF revenues generated
from each phase of the Project toward the payment of the eligible expenses of the entire Project,
if necessary.
5. Amendment to Section ll(D) of Redevelopment Plan
Section II(D) of the Redevelopment Plan shall be amended and replaced in its entirety as
provided below. Sections II(D)(i') and II(D)(ii) shall not be amended, except as otherwise
provided in this Amendment.
D. Financing of Prqject
Redevelopment of the Redevelopment Area is not economically feasible without TIF. As
such, the City and the Agency contemplate using TIF for the Project identified in this
2
[XXUR-24-10407.1
Redevelopment Plan, and any prcjects identified in future amendments to this Redevelopment
Plan.
The total estimated cost of the Pr(kiect is approximately $2,440,112, not including the
build -out of the residential lots by private developers (i.e., the private improvements). The City
expects to request grant assistance from the. Agency in the estimated principal amount of
S 1,)50P0 with such grant to come from community development revenue bonds issued by the
Agency in the approximate estimated principal amount of S 1,950,000, (the"TIF
Indebtedness"). It is anticipated that one bond will be issued for all phases of the 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 ;hall be divided, for a
period not to exceed fificon 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♦
O That portion of the ad valorem tax the levy produces at the rate fixed cacti year by
or for each public body upon the redevelopment prej cot valuation ,;hall 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, 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.
The Project will occur in phases, determined by the buildout of the private improvements.
Accordingly, with respect to the. Project, the actual base tax year and Base Tax Amount for each
phase will be determined as provided below.
The Agency and Redeveloper anticipate that the effective -dates will be different for cacti
phase, and therefore the increment period for cacti phase will be different. Upon the completion
of cacti phase, the City will submit to the Agency an amendment to the "redevelopment contract"
(as defined in the Act) on a form prescribed by the Agency. Each amendment to the
redevelopment contract shall -set forth the "effective date" (as defined in the Act) for the pertinent
phase and must be submitted to the Agency on or before June 30 of the year in which taxes are to
3
'.Y24-10407,1
be divided for such phase. The City and the Agency anticipate that each phase will occur on a
yearly basis over the course of development (of the private improvements), Accordingly, a
phase for a particular year will be determined by the valuation increases that occur as a result of
the private development on specific lots during that year.
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
shall only be divided and allocated over the applicable 15 -year increment period or payment of
the TIF Indebtedness, whichever occurs first.
The City will have hill responsibility for (i) the, purchasing of the, TIF Indebtedness from
the Agency or (ii) arranging for the purchase of the TIF Indebtedness from the Agency. Any
issuance of the TIF Indebtedness is to be upon the basis of a private placement with the
purchaser.
The City will issue warrants to cover construction costs of the Project. A portion of the
warrants will be paid off via purchase of the. TIF indebtedness. The City will form i flip rovellic tit
districts within the Redevelopment Area and issue bonds for the (applicable) public
improvements therein in excess- of the TIF Indebtedness.
6. Amendment to Exbiblt "G" of Redevelopment Plan
The Cost Benefit Analysis for the Redevelopment Plan, attached thereto as Exhibit "G",
shall amended in their entirety and replaced by Exhibit "I " attached hereto and incorporated
herein.
7. Headings
Headings of sections of this Amendment and the exhibit,; attached hereto are for
convenience of reference only and do not form apart of the Redevelopment Plan and do not in
any way modify the Redevelopment Plan except as otherwise provided in this Amendment.
DOCV-14YAW. L
Exhibit "1"
Amendment to Exhibit "Gr"
(See attached)
Exhibit "I"
DOC IYNA407. t
TRANSFORMATION HILL REDEVELOPMENT PROJECT
COST -BENEFIT ANALYSIS
(Pursuant to Nei). Rev. Stat. § 18-2113)
May, 2018
Amended February, 2020
The cost -benefit analysis for the above referenced project, as described in the attached
Redevelopment Plan, which will utilize ftinds authorized by § 18-2147, can be
summarized as follows:
1. Tax shifts resulting from the approval of the use of funds pursuant to
Section 18-2147:
The taxes generated by the current value of the property shall continue to be allocated
between taxing jurisdictions pursuant to standard statutory requirement.-,. Only the incremental
taxes created by the Prqject will be captured to pay eligible public expenditures. Since the
incremental taxes would not exist without the use of TIF to support the Project, the true tax shift
of this Project is a positive shift in taxes after 15 years. However, for the purposes of illustrating
the incremental taxes used for TIF, the 15 year tax shift is as follows:
a. Project Valuation*: $500,000.00
b. Projected Completed Prqject Assessed Valuation**: $13,485,000.00
cl PrcJ ected Tax I ticrement Base (b. minus a.): $125985,000.00
d. Estimated Tax Levy: 2.122854
0. Annual Projected Tax Shift (loss 1% assessor's fee)***: $2725896.00
* The Prqjected Tax increment is based on assumed values and levy rates,; actual amounts and
rates will vary from those assumption,-,, 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 fifteen year TIF period (for each phase).
The base value is assumed based upon an estimate of the current valuation of the Project Area if
it were owned by an entity that is not tax exempt, and the actual value is likely to be different
than that provided,
** This calculation includes both the public improvements from the Project and the private
improvement,-, required under separate development agreements entered into between the City
and private developers-. The Project is contingent upon the City entering into such development
agreements and therefore, the increase in valuation stemming; therefrom is included as part of the
above calculations.
Exhibit "I
LW,Y24 -104 07. 1
2. Public infrastructure and community public service needs impacts and local
tax impacts arising from the approval ofthe redevelopment project:
a. Public infrastructure improvements and impacts:
The. Project anticipate.,; expenditures of approximately 52,4401112 for construction and
installation of public improvements,. It is proposed that up to S 1,950,000 in TIF over the 15 -year
statutory period (per phase) will be used for eligible public expenditures associated with the
Project, The actual amount of the TIF Indebtedness will depend on the interest rate the
redeveloper obtains from a TIF lender, The cost of the eligible public improvements is estimated
to exceed $1,950,000. The public infrastructure improvements- associated with the Project
include, among other things-, the construction of two new public roads and the
construction/extension of public utility infrastructure, as more particularly described under
paragraph A of section 11 of the Redov clopme nt Plan. These public improvements are necessary
to utilize the Redevelopment Area for any use and will create a material positive impact on
existing public infrastructure. The Comprehensive Plan provide,,; that the City's need for
additional residential development includes the, pro -vision of adequate, efficient, and appropriate
utilities and services throughout the community. Accordingly, the improvements, will materially
benefit the City and help meet the objectives of the Comprehensive Plan.
b, Local Tax �igipa etsin�.additioqto impacts of Tax Shifts describpdab
ovc
I
The Project will 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 now ad valorem real
property taxes generated by the Project, the Project should generate immediate tax growth for the,
City. The Project will include an amount of personal property that will be on the property tax
rolls upon its acquisition and installation. Additionally, the Project will require and pay for City
services. it is not anticipated that the Pr�jcct 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 Project:
Currently, there are no businesses within the Redevelopment .Area. The Project will
require temporary construction jobs during the construction period. Many of these construction
employees will be local workers, and the other workers will use services and buy goods in the
City during their construction phase.
it is not anticipated that the Project will have a material adverse impact on other
employers and employees of firms locating or expanding within the boundaries of the
Redevelopment Area. The City anticipates that the increased population density and public
infrastructure should positively impact the Redevelopment Area and could lead to additional
non-residential development that positively impacts employment in the area.
Exhibit "I"
FR')CY24WW. I
4. Impacts on other employers and employees within the City and tile
immediate area that is located outside of the boundaries of the area of the redevelopment
project:
The Project should have a material positive impact on private sector businesses in and
around the area outside the boundaries- of the Redevelopment Area. The Prqicct is not anticipated
to impose a burden or have a negative impact on local area employer,-,, but should provide
needed housing for employees of surrounding businesses. Improvement,; to the public/quasi-
public areas should benefit the entire community.
5. Impacts on student populations for school districts within the boundaries of
the area of the redevelopment project:
There is no indication that the school district cannot accommodate an increase of the
student population resulting from the ProJect, and it is anticipated that many of the new resident,-,
within the Redevelopment Area will be current resident.,; relocating within the City. The school
district will not receive, taxes from the residences built during the time the increased taxes are
utilized to pay the TIF indebtedness. The school district has received state aid to education in the.
past. Pail of the school aid formula involves assessed valuation in the school district. The
valuation that generates, the TIF payments is not included in the formula and does not count
against the state aid that the school district would receive. Taxes on any increase in the base
value of the, land will benefit the school district. After the, TIF Indebtedness is paid, or at the end
of the respective 15 years of division of taxes (per phase), whichever is sooner, the increased
valuation from the residential construction will be available to the -school district. Because the
Prciect would not occur but -for the use of TIF, there is no loss in prospective tax revenues to the
,school district.
6. Other impacts determined by the agency to be relevant to tile consideration of costs
and benefits arising from the redevelopment project:
The Prcicct Site is blighted and contains substandard conditions- that are a detriment to
the City as a whole.. The Pi-qJJcct will provide needed housing and revitalization to public/quasi-
public areas in furtherance of the City's Comprehensive Plan, There are no other material
impacts determined by the Agency relevant to the consideration of the cost or benefits arising
from the Prqjcct.
Exhibit "1
DOC' -Y24-49 (P. t
Exhibit 112"
Redevelopment Ptah
(See attactzed)
Exhibit "2"
REDEVELOPMENT PLAN
FOR THE TRANSFORMATION HILL REDEVELOPMENT AREA
OF THE CITY OF BLAIR, NEBRASKA
REDEVELOPMENT PLAN
A. Introduction and General Project Description
This Redevelopment Plan (the "Redevelopment Plan") for the blighted and substandard
area set forth on Exhibit "A" (the "Redevelopment Area") is a guide for redevelopment activities
to remove or eliminate blight and substandard conditions within the City of Blair, Nebraska (the
"City"). The City has prepared this Redevelopment Plan in accordance with the Nebraska
Community Development Law, sections 18-2101 through 18-2154 of the Nebraska Revised
Statutes (the "Act") and the Comprehensive Plan of the City. This Redevelopment Plan shall
relate to definite local objectives as to appropriate land uses such as residential and
public/quasi-public uses, improved traffic, public transportation, public utilities, recreational and
community facilities, and other public improvements, and explains the proposed land uses and
building requirements in the Redevelopment Area, as required by the Act.
This Redevelopment Plan sets forth an overall plan of redevelopment for the
Redevelopment Area and a specific redevelopment project of the City, as redeveloper, within
the Redevelopment Area. The City and Agency intend that the Project (defined below) spurs
additional redevelopment projects within the Redevelopment Area in conformance with this
Redevelopment Plan, or an amendment thereof, and the City's Comprehensive Plan.
With respect to the Project, the City, as redeveloper, intends to undertake the various
public improvements identified in paragraph A of section II within the Project Area (defined
below), including land acquisition, remediation and mitigation of environmental conditions,
demolition, infill, grading, site preparation, installation of necessary public infrastructure and
utilities, and other public improvements under the Act to allow for development of single-family
residential housing, multi -family residential housing, public and quasi -public uses, and such
other uses to ensure the elimination of blighted and substandard conditions within the
Redevelopment Area (the "Project"). The City anticipates that the Project Area will be
developed over a period of years, determined by market conditions and housing demand.
Redevelopment of the Redevelopment Area is not economically feasible without
assistance from tax increment financing ("TIF"). Since Dana College closed, the
Redevelopment Area has not been utilized and has deteriorated at a rapid pace due to a lack of
redevelopment and upkeep. Environmental hazards exist within the Redevelopment Area
requiring remediation at a significant cost. Additionally, the current layout and lack of public
infrastructure present considerable costs for eliminating and preventing the future occurrence of
blighted and substandard conditions. Due to the poor return on investment stemming from
these factors, private developers have not been willing to develop the Redevelopment Area. As
such, redevelopment of the Redevelopment Area is not economically feasible without
assistance from TIF. The fact that the City has taken it upon itself to act as redeveloper for the
Project, in the absence of private developers willing to do so, supports this conclusion.
B. Redevelopment Area; Existinq Conditions and Uses
The real property included in the Redevelopment Area for the Project and the
boundaries of the Redevelopment Area subject to this Redevelopment Plan are set forth on
Exhibit "A", attached hereto and incorporated by this reference. Exhibit "A" sets forth the legally
described boundaries of the Redevelopment Area, together with a map showing the existing
condition of the Redevelopment Area. A map showing the existing uses of the real property in
and around the City, including the Redevelopment Area, is attached hereto as Exhibit "B" and
incorporated by this reference.
The Redevelopment Area is encompassed within that area determined to be blighted
and substandard by the City Council based upon, among other things, a 2018 Blight and
Substandard Determination Study prepared by JEO Consulting.
As the site plan shows, attached hereto as Exhibit "D" and incorporated by this
reference, the Redevelopment Area is broken down into four areas for purposes of the Project.
Angels Share, a Nebraska nonprofit Corporation ("Angels Share") owns the areas labeled as
Area #1 ("Area One"), Area #2 ("Area Two") and Area #4 ("Area Four") on Exhibit "D". The
City owns the area labeled as Area #3 on Exhibit "D" ("Area Three"). The City intends to
acquire Area Four from Angels Share during the course of the Project. Additionally, a private
developer intends to acquire Area Two from Angels Share during the course of the Project.
Paragraph A of section II of this Redevelopment Plan describes the intended redevelopment
within each of the areas. Areas One, Two, Three and Four are collectively referred to as the
"Project Area," as legally described and depicted on Exhibit "F".
C. Conformity with City's Comprehensive Plan
This Redevelopment Plan adopts and incorporates the Comprehensive Plan of the City
as it relates to the Redevelopment Area. The Comprehensive Plan specifically states the need
to seek opportunities for utilization of the Redevelopment Area (i.e., the former site of Dana
College) as a college or other means. The vacancy Dana College left was listed as both an
"opportunity" and a "weakness" in the "SWOT" analysis provided in the Comprehensive Plan.
Because utilization of the Redevelopment Area as a college no longer appears feasible, the City
elected to pursue other uses. Such other uses include residential development, with a focus on
affordable housing. For example, section 1.1.2c of the Comprehensive Plan states that an area
of focus should be the prioritization of affordable housing and related incentives in blighted
segments of the community. The Comprehensive Plan further states: "The most glaring issue
of land use in the Blair corporate limits is an overall lack of residential multi -family land uses. In
this case, multi -family land use incorporates any residential parcel that contains more than one
household. Duplexes and apartment complexes are in this category. For a community with a
great need for new housing development, multi -family units could be an efficient investment;
utilizing minimal land availability to achieve a high number of housing units."
This Redevelopment Plan promotes population growth, housing development and
affordable housing. The Comprehensive Plan provides that infill development/redevelopment
and public improvements for these purposes should be a priority for the future growth and
development of the City. The Comprehensive Plan identifies existing land use of the
Redevelopment Area as medium density residential. The Comprehensive Plan identifies future
land use as single-family residential and multi -family residential for areas Areas Four and Two,
respectively, and public/quasi-public use with respect to Areas One and Three. A majority of
the Redevelopment Area is subject to a planned -unit development ("PUD") overlay district.
Regarding Area Four, the City anticipates grant assistance via the Rural Workforce
Housing Fund, which requires the development of affordable housing. Accordingly, the
redevelopment in Area Four addresses the City's need for affordable housing.
2
Anticipated redevelopment in Area Two includes both single-family and multi -family
residential, in conformance with the stated goals of the Comprehensive Plan. Further, the
Comprehensive Plan provides that the need for residential development includes the provision
of adequate, efficient, and appropriate utilities and services throughout the community. The
City's installation of public infrastructure serving the Redevelopment Area meets this objective.
Area One and Area Three will conform to the intended future use of public and quasi -
public use. Area One will remain under the ownership of Angels Share with possible utilization
as a church. The City will continue to utilize Area Three as public baseball and softball facilities.
Other areas within the Redevelopment Area could be redeveloped via subsequent
projects in furtherance of the objectives of the Comprehensive Plan.
This Redevelopment Plan complies with and furthers the goals set forth in the City's
Comprehensive Plan. Additionally, the intended future uses of the Redevelopment Area mirrors
the future uses set forth in the Comprehensive Plan.
D. Future Land Uses
Exhibit "C", attached hereto and incorporated herein by this reference, shows the future
land uses of the Redevelopment Area. The Future Land Use Map in the City's Comprehensive
Plan reflects that Area Two and Area Four should be developed for residential use. The Future
Land Use Map designates the area outside of Areas Two and Four (including Area Three and
Area One) for public and quasi -public use. A majority of the Redevelopment Area is subject to a
PUD overlay. The intended use of the Redevelopment Area subsequent to completion of the
Project aligns with the uses set forth in the Future Land Use Map and the objectives of the
Comprehensive Plan.
E. Population Densities, Land Coverage and Building Intensities
The Redevelopment Area includes approximately 72.1 acres. The Redevelopment Area
currently has no residents. It has twenty structures, the majority of which were previously a part
of the Dana College campus.
With respect to the Project, Area Two and Area Four are intended to be devoted to
residential purposes. No families will be displaced in connection with redevelopment of the
Redevelopment Area. Anticipated land coverage and building intensities are shown on Exhibit
"D" for the most likely development action (paragraph A of section II of this Redevelopment Plan
provides descriptions of the anticipated private improvements thereon). Building densities will
not exceed the densities the City's laws and regulations permit. Any structures will be built in
conformance with the City's Zoning Ordinance and PUD overlay. The Project improvements will
comply with the applicable land -coverage ratios and zoning requirements of the City.
Population density will increase in Area Two and Area Four via residential development in
furtherance of the Comprehensive Plan. The Project includes construction and installation of
additional roads and public infrastructure to accommodate the increase in population density
and resulting traffic flow.
The City intends to demolish the buildings located within Area One, thereby decreasing
building intensity. The building intensity in Area Three will not change. Both areas will remain
unpopulated. These actions should not adversely affect population densities, land coverage or
building intensities within the Redevelopment Area. There are no residents or operating
3
businesses currently in the Redevelopment Area and no relocation requirements apply or are
contemplated.
F. Changes in Zoning, Street Layout, Street Levels or Grades
The Redevelopment Area is zoned RM — Residential Medium Density District. Most of
the Redevelopment Area is subject to a PUD overlay district (including Area Two and Area
Four). In addition to the permitted uses under zoning district RM, the PUD permits single-family
residential, multi -family residential, sports and recreation facilities and public/quasi-public use.
Parking lots are conditional uses within the PUD. Accordingly, all anticipated uses in the
Redevelopment Area are permitted.
No zoning changes are necessary to proceed with the Project. Covenants and a
development agreement will articulate uses and standards to control use and appearance of
improvements. All construction will be subject to City ordinances..
To facilitate access to the residential developments in Area Two and Area Four, the City
intends to construct two new public streets. Additionally, the City intends to construct a
round -about at the current intersection of 27th Street and Hansen Drive to mitigate increased
traffic flow in the area. Construction of new streets and connection to existing streets will
conform with all applicable standards. Parking for all buildings in the Redevelopment Area will
meet the City's minimum requirements.
G. Additional Public Facilities or Utilities
Additional public facilities and utilities are required to serve the Redevelopment Area.
With respect to the Project, Areas Two, Three and Four require extension and/or construction of
additional public utilities and infrastructure. Area Two requires construction of a new public
street, water main extensions, storm water detention, inlets and piping along the new street,
electric utility installation, storm sewer extension and sanitary sewer extensions. Area Three
requires extension of the sanitary sewer main across Area Three to serve Areas Two and Four,
with possible build -out and service of a public restroom in Area Three. Area Four requires
construction of a new public street, storm water detention, inlets and piping along the new
street, water main extension(s), electric utility installation, storm sewer extension, construction
of temporary turn -a -round for new street, and sanitary sewer extension(s). The City will also
replace the offset intersection of 27th Street and Hansen Drive with a residential roundabout.
The Comprehensive Plan provides that the City's need for additional residential development
includes the provision of adequate, efficient, and appropriate utilities and services throughout
the community. The City's installation of public infrastructure serving the Redevelopment Area
meets this objective.
H. Implementation of Redevelopment Plan
Prior to entering into a Redevelopment Contract (as defined in the Act), a private
developer will acquire Area Two. The City intends to enter into a development agreement with
the new owner of Area Two regarding construction of the private improvements within Area Two
in conformance with this Redevelopment Plan. Additionally, during the course of the Project,
the City intends to acquire Area Four from Angels Share. Any obligations of Agency or City
under this Redevelopment Plan or the Redevelopment Contract are contingent upon the
occurrence of the aforementioned items.
0
Upon completion of the Project, the City and Agency anticipate that private redevelopers
will initiate additional redevelopment projects within the Redevelopment Area in conformance
with this Redevelopment Plan, or amendment thereof, and the City's Comprehensive Plan.
II. THE PROJECT
A. Description of Project
Public Improvements
The two buildings within Area One will undergo hazardous waste remediation and
demolition. Thereafter, the City intends to grade and infill the demolition site, with relocation of
utility lines as necessary. Based upon Angels Share's subsequent use of Area One, the City
may elect to construct additional public improvements serving Area One, including, but not
limited to, public parking. In addition to the aforementioned, the City may construct such other
public improvements (under the Act) necessary to serve Area One for the purpose of
public/quasi-public use.
A three -building complex known as "Omaha Village" currently exists within Area Two.
The complex will undergo hazardous waste remediation and demolition. Thereafter, the City
intends to prepare Area Two for residential development on Lots 12-26 (as shown on Exhibit
"D"). Site preparation of Area Two will include site clearing, grading, utility line relocation and
infill. The residential development within Area Two requires additional public infrastructure,
including, construction of a new public street (as shown on Exhibit "D", "Viking Circle"), water
main extension along Viking Circle, storm water detention, inlets and piping along Viking Circle,
electric utility installation, storm sewer extension, and sanitary sewer extension along Viking
Circle and 27th Street. Prior to entering into the Redevelopment Contract, the City intends to
enter into a development agreement with the owner of Area Two specifying the private
improvements to be constructed thereon (as discussed below). In addition to the
aforementioned, the City may construct such other public improvements (under the Act)
necessary to serve Area Two for the purpose of residential development.
Area Three consists of public baseball and softball facilities in a dilapidated condition.
The City intends to make necessary repairs to the public facilities and/or replace the facilities.
Such improvements may include construction of an outfield fence, protective netting, overhead
lighting, and construction of public restrooms serving the facilities. The City will extend the
sanitary sewer main across Area Three to serve Areas Two, Three and Four. In addition to the
aforementioned, the City may construct such other public improvements (under the Act)
necessary to serve Area Three for the purpose of public/quasi-public use.
Area Four consists of a dilapidated barn building and vacant land. The City intends to
purchase the real property within Area Four from Angels Share. Thereafter, the City will
demolish the barn and prepare the site for residential development. Site preparation of Area
Four will include site clearing, grading, utility line relocation and infill. The residential
development within Area Four requires additional public infrastructure, including construction of
a new public street (as shown on Exhibit "D", "Krejci Boulevard"), storm water detention, inlets
and piping along Krejci Boulevard, water main extension(s), electric utility installation for Lots 27
through 57, construction of a temporary turn -a -round for Krejci Boulevard, and sanitary sewer
extension(s). The City will also replace the offset intersection of 27th Street and Hansen Drive
with a residential roundabout connecting 27th Street, Hansen Drive and Krejci Boulevard. In
addition to the aforementioned, the City may construct such other public improvements (under
the Act) necessary to serve Area Four for the purpose of residential development.
5
Public improvements related to the Redevelopment Area may be constructed and
installed both inside and outside of the Redevelopment Area in order to serve the
Redevelopment Area. Pursuant to the Act, the City may undertake some of the TIF -eligible
public improvements prior to approval of this Redevelopment Plan.
Private Improvements
At this time, the City anticipates private improvements in Area Two will include five new
single-family homes on Lots 12-16 along College Drive, four to six new multi -family units on Lot
17 along and around Viking Circle, 8 new single-family homes on Lots 19-26 along College
Drive, and one to two new high density multi -family apartment buildings on Lot 18. The City, as
owner and redeveloper, intends to sell buildable lots in Area Four to private developers to
construct thirty new single-family homes on Lots 28 through 57.
The anticipated private improvements in the Project Area are not a part of the Project.
However, the City intends to enter into development agreements with the owners/developers of
Area Two and Area Four requiring construction of the private improvements in compliance with
this Redevelopment Plan and the City's Comprehensive Plan. All obligations of the City under
this Redevelopment Plan or a Redevelopment Contract are contingent upon the City entering
into such agreements.
Exhibit "E", attached hereto and incorporated herein by this reference, provides
estimates for the cost of the TIF -eligible public improvements for the Project. The estimated
cost of the private improvements is not known at this time.
B. Proiect Area
Exhibit "F", attached hereto and incorporated herein by this reference, provides a legal
description and depiction of the Project Area. The entire Project Area is within the blighted and
substandard Redevelopment Area.
C. Site Plan for Proiect
Exhibit "D" shows the site plan for the Project.
D. Financing of Proiect
Redevelopment of the Redevelopment Area is not economically feasible without TIF. As
such, the City and the Agency contemplate using TIF for the Project identified in this
Redevelopment Plan, and any projects identified in future amendments to this Redevelopment
Plan.
The total estimated cost of the Project is approximately $2,000,000, not including the
build -out of the residential lots by private developers (i.e., the private improvements). The City
expects to request grant assistance from the Agency in the estimated principal amount of
$1,480,000 with such grant to come from community development revenue bonds issued by the
Agency in the approximate estimated principal amount of $1,480,000, (the "TIF Indebtedness").
The incremental ad valorem tax revenues (the increase in real property taxes based upon the
resulting increase in taxable valuation) for a period of up to fifteen years after a designated
division date would be pledged to pay debt service on the TIF Indebtedness. The City would
have full responsibility for (i) the purchasing of the TIF Indebtedness from the Agency or (ii)
6
arranging for the purchase of the TIF Indebtedness from the Agency. Any issuance of the TIF
Indebtedness is to be upon the basis of a private placement with the purchaser.
The real property ad valorem taxes on the current taxable valuation for the year prior to
the division date will continue to be paid to the applicable taxing bodies in accordance with the
terms of Section 18-2147(1)(a) of the Act. However, because all property within the
Redevelopment Area is currently owned by tax-exempt entities (i.e., the City or Angels Share),
an exact baseline valuation is unknown at this time.
The City will issue warrants to cover construction costs of the Project. A portion of the
warrants will be paid off via purchase of the TIF Indebtedness. The City will form improvement
districts within the Redevelopment Area and issue bonds for the (applicable) public
improvements therein in excess of the TIF Indebtedness.
L Method and cost of acquisition and preparation of real property for
Project
The City intends to acquire Area Four from Angels Share prior to entering into the
Redevelopment Contract. The estimated cost of the City's acquisition of Area Four is $210,000.
The City will convey the residential lots in Area Four to private developers over a period of
years, based upon housing demand, market conditions and other factors. Subject to Section
18-2118 of the Act, the estimated (net) proceeds from such conveyance are approximately
$11,000 per residential lot. Net proceeds resulting from sale of the residential lots will be
expended toward redevelopment costs in excess of the TIF Indebtedness and will help reduce
the amount of special assessments placed on such lots. There will be no additional acquisitions
or sales of property by the City. The City will facilitate the Project with a resulting investment of
approximately $2,000,000 of funds from grant proceeds as provided for in this Redevelopment
Plan and from private resources (including bank or other financing). A grant or grants to the
City to provide for contributions by the City in aid of construction are expected to be needed and
applied in order to complete the Project.
ii. Proposed method of financing for the Project
This Redevelopment Plan contemplates that the Agency may issue its TIF Indebtedness
in an amount sufficient to provide a grant from the Agency (after payment of the Agency's
incurred costs) to the City to bear interest at a rate to be determined by the Agency (anticipated
to be 5%). The TIF Indebtedness shall be held by the City or privately placed to obtain the
proceeds needed to make the grant. The City will purchase or cause the TIF Indebtedness to
be purchased. Application of the proceeds of the TIF Indebtedness will be supervised by or on
behalf of the Agency. The TIF Indebtedness shall be repaid from the tax increment revenues
generated from the Project Area during the period described above.
The City intends to form improvement districts and issue bonds to pay for the costs of
applicable public improvements in excess of the TIF Indebtedness for the Project. The
Redevelopment Contract shall specify that, if the TIF Indebtedness is extinguished prior to the
expiration of the fifteen -year period under Section 18-2147 of the Act, the Agency may continue
to divide ad valorem taxes within the Project Area and use any incremental ad valorem taxes to
make payments on the bond issued by the City to finance such improvements.
7
E. Statutory Criteria
Section I of this Redevelopment Plan sets forth all additional information required by the
Act with respect to the Project.
herein.
F. Cost Benefit Analysis.
A cost -benefit analysis for the Project is attached hereto as Exhibit "F" and incorporated
G. Time Frame for Development.
The City anticipates that demolition, site preparation and infrastructure installation of the
Project Area will begin during summer of 2018. The City intends to first conduct environmental
remediation, demolition, site preparation, and construction of public infrastructure and utilities in
Area Two (including the sewer extension across Area Three to serve Area Two). After
demolition of the buildings in Area Two, the City intends to conduct demolition in Area One. Site
preparation and construction of public infrastructure and utilities within Area Four will be
performed concurrently with or following Area Two.
The City anticipates that build -out of the private improvements in Area Two will begin in
2018, with initial occupancy of the earliest residential properties estimated to be in 2019.
Build -out of the private improvements in Area Four will begin after the construction of all public
infrastructure therein. Additional improvements to Areas One and Three, if any, will likely occur
after the completion of all public improvements in Areas Two and Four. The City estimates that
construction of all private improvements (i.e., the residences) will occur over approximately ten
years, based upon housing demand and other market conditions. The base tax year will be
determined from the division date that will be set forth in the Redevelopment Contract and/or the
resolution authorizing the TIF Indebtedness.
The City's projected time frame for development is preliminary in nature and subject to
change as a result of market conditions, actual realized capture of TIF revenues, and other
factors outside the City's control.
H. Conclusion
The Redevelopment Area is in need of redevelopment to remove blighted and
substandard conditions and to promote orderly and planned growth of the community. This
Redevelopment Plan guides and assists the City in fostering and facilitating redevelopment
activities pursuant to the Act.
Exhibits:
"A"
— Redevelopment Area
"B"
— Existing Land Use
"C"
— Future Land Use
"D"
—Site Plan
"E"
— Estimated Project Costs
"F"
— Project Area
"G"
— Cost -Benefit Analysis
L-01
EXHIBIT "A"
Redevelopment Area
Legal Description:
A PARCEL OF LAND LOCATED IN THE EAST HALF OF THE NORTHEAST QUARTER OF
SECTION 10, THE WEST HALF OF THE NORTHWEST QUARTER OF SECTION 11, AND
THE NORTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 11, ALL IN
TOWNSHIP 18 NORTH, RANGE 11 EAST OF THE SIXTH P.M., WASHINGTON COUNTY,
NEBRASKA, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEAST CORNER OF THE NORTHEAST QUARTER OF THE
NORTHEAST QUARTER OF SAID SECTION 10, SAID POINT ALSO BEING ON THE NORTH
LINE OF LOT 1 OF TRANSFORMATION HILL ADDITION TO THE CITY OF BLAIR,
WASHINGTON COUNTY, NEBRASKA; THENCE WESTERLY ON THE NORTH LINE OF SAID
LOT 1 TO THE NORTHWEST CORNER OF SAID LOT 1; THENCE SOUTHERLY
ON THE WEST LINE OF SAID LOT 1 TO THE SOUTHWEST CORNER OF SAID TAX LOT 1,
SAID SOUTHWEST CORNER BEING ON THE NORTHERLY RIGHT OF WAY LINE OF
COLLEGE DRIVE; THENCE SOUTHERLY ON A LINE BEING PERPENDICULAR TO THE
SOUTHERLY RIGHT OF WAY LINE OF SAID COLLEGE DRIVE TO A POINT ON THE
NORTH LINE OF LOT 6 OF SAID TRANSFORMATION HILL ADDITION, CITY OF BLAIR,
SAID NORTH LINE ALSO BEING THE SOUTHERLY RIGHT OF WAY LINE OF SAID
COLLEGE DRIVE; THENCE WESTERLY ON THE NORTH LINE OF LOTS 2 AND 6 OF SAID
TRANSFORMATION HILL ADDITION, TO THE NORTHWEST CORNER OF SAID LOT 2;
THENCE WESTERLY TO THE NORTHEAST CORNER OF LOT 1 OF ANDERSON'S
ADDITION TO THE CITY OF BLAIR, WASHINGTON COUNTY, NEBRASKA, SAID
NORTHEAST CORNER BEING ON THE WESTERLY RIGHT OF WAY LINE OF NORTH 30TH
STREET; THENCE SOUTHERLY ON SAID WESTERLY RIGHT OF WAY LINE TO THE
SOUTHEAST CORNER OF TRACT B OF ADMINISTRATIVE LOT LINE ADJUSTMENT OF
LOTS 2 AND 3 OF SAID ANDERSONS ADDITION; THENCE SOUTHERLY TO THE
NORTHWEST CORNER OF LOT 4 OF SAID TRANSFORMATION HILL ADDITION, THENCE
SOUTHERLY ON THE WEST LINE OF SAID LOT 4 TO THE SOUTHWEST CORNER OF
SAID LOT 4; THENCE EASTERLY ON THE SOUTH LINE OF SAID LOT 4 TO THE
SOUTHEAST CORNER OF SAID LOT 4; THENCE EASTERLY ON THE SOUTHERLY RIGHT
OF WAY LINE OF ANGELS SHARE DRIVE TO A POINT ON THE EAST LINE OF THE
SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 10; THENCE
SOUTHERLY ON SAID EAST LINE TO A POINT ON THE NORTH LINE OF LOT 32 OF SAID
TRANSFORMATION HILL ADDITION; THENCE SOUTHWESTERLY ON THE NORTH LINE
OF LOTS 28 THROUGH 32 OF SAID TRANSFORMATION HILL ADDITION TO THE
NORTHWEST CORNER OF SAID LOT 28; THENCE SOUTHEASTERLY ON THE WEST LINE
OF SAID LOT 28 TO THE SOUTHWEST CORNER OF SAID LOT 28, SAID SOUTHWEST
CORNER BEING ON THE NORTHERLY RIGHT OF WAY LINE OF KREJCI BOULEVARD;
THENCE SOUTHWESTERLY ON SAID NORTHERLY RIGHT OF WAY LINE TO THE
WESTERLY RIGHT OF WAY LINE OF KREJCI BOULEVARD; THENCE SOUTHEASTERLY
ON SAID WESTERLY RIGHT OF WAY LINE TO THE NORTHWEST CORNER OF LOT 27 OF
SAID TRANSFORMATION HILL ADDITION; THENCE SOUTHERLY ON THE WEST LINE OF
SAID LOT 27 TO THE SOUTHWEST CORNER OF SAID LOT 27; THENCE
NORTHEASTERLY ON THE SOUTHERLY LINE OF LOT 27, AND LOTS 43 THROUGH 57 OF
SAID TRANSFORMATION HILL ADDITION TO THE SOUTHEAST CORNER OF SAID LOT
57, SAID POINT ALSO BEING ON THE WESTERLY RIGHT OF WAY LINE OF HANSEN
DRIVE; THENCE CONTINUING NORTHEASTERLY ON THE NORTHEASTERLY
Exhibit "A"
DOCS/2070884.3
EXTENSION OF SAID SOUTHERLY LINE OF LOT 27, AND LOTS 43 THROUGH 57 TO THE
SOUTHEAST CORNER OF TAX LOT 643 IN SAID SECTION 11, SAID SOUTHEAST
CORNER BEING ON THE NORTHERLY RIGHT OF WAY LINE OF SAID HANSEN DRIVE;
THENCE CONTINUING NORTHEASTERLY ON SAID EASTERLY LINE TO THE
NORTHEAST CORNER OF SAID TAX LOT 643, ALSO BEING THE SOUTHEAST CORNER
OF TAX LOT 425 IN SAID SECTION 11; THENCE NORTHERLY ON THE EAST LINE OF
SAID TAX LOT 425 TO THE NORTHEAST CORNER OF SAID TAX LOT 425; THENCE
WESTERLY ON THE NORTH LINE OF SAID TAX LOT 425 TO THE NORTHWEST CORNER
OF SAID TAX LOT 425, SAID NORTHWEST CORNER BEING ON THE EASTERLY RIGHT
OF WAY LINE OF 27TH STREET; THENCE NORTHERLY ON SAID EASTERLY RIGHT OF
WAY LINE TO THE NORTHWEST CORNER OF TAX LOT 295 IN SAID SECTION 11, SAID
NORTHWEST CORNER BEING ON SAID SOUTHERLY RIGHT OF WAY LINE OF COLLEGE
DRIVE; THENCE WESTERLY TO THE NORTHEAST CORNER OF LOT 16 OF SAID
TRANSFORMATION HILL ADDITION, SAID NORTHEAST CORNER BEING ON SAID
SOUTHERLY RIGHT OF WAY LINE OF COLLEGE DRIVE; THENCE WESTERLY ON THE
NORTH LINE OF LOTS 12 THROUGH 16 OF SAID TRANSFORMATION HILL ADDITION TO
THE NORTHEAST CORNER OF LOT 7 OF SAID TRANSFORMATION HILL ADDITION;
THENCE NORTHERLY TO THE SOUTHWEST CORNER OF TAX LOT 646 IN SAID SECTION
11, SAID SOUTHWEST CORNER BEING ON THE NORTHERLY RIGHT OF WAY LINE OF
SAID COLLEGE DRIVE AND EASTERLY RIGHT OF WAY LINE OF NORTH 28TH AVENUE;
THENCE NORTHWESTERLY ON SAID EASTERLY RIGHT OF WAY LINE TO THE
NORTHWEST CORNER OF TAX LOT 308 IN SAID SECTION 11, SAID NORTHWEST
CORNER BEING ON THE NORTH LINE OF SAID WEST HALF OF THE NORTHWEST
QUARTER OF SECTION 11; THENCE WESTERLY ON SAID NORTH LINE TO THE POINT
OF BEGINNING, CONTAINING 73.2 ACRES, MORE OR LESS.
Exhibit "A"
DOCS/2070884.3
Redevelopment Area Depiction:
Wv J�ntury fi5i6
Cof Biair, NE
i y
Fvd fry n18
t.AaGIS 104
Dana College Blight Study: Study Boundary
* The Redevelopment Area is comprised of the area outlined in blue.
Exhibit "A"
DOCS/2070884.3
EXHIBIT "B"
Existing Land Use
* The Redevelopment Area is currently zoned RM — Residential Medium Density District, subject to a PUD Overlay District.
Exhibit `B"
DOCS/2070884.3
EXHIBIT "C"
Future Land Use
* The above depiction is taken from Ordinance No. 2360 amending the City's Future Land Use Map with respect to the portions of
the Redevelopment Area outlined in red. The Ordinance amended future land use for Area Four (on right side) to "Residential -Single
Family." The Ordinance amended future land use for Area Two (on left side) to "Residential — Multi Family."
** The Comprehensive Plan's Future Land Use Map provides for "Public/Quasi-Public" use with respect to the remainder of the
Redevelopment Area.
Exhibit "C"
DOCS/2070884.3
EXHIBIT "D"
Site Plan
* The site plan for the Project is preliminary in nature and subject to change.
Exhibit "D"
DOCS/2070884,3
Exhibit "E"
Estimated Project Costs
Projected TIF Expenses:
Asbestos Abatement (Includes assessment)
$210,000.00
Building Demo
$450,000.00
Tree Removal
35,000.00
Grading North Area
40,000.00
Grading South Area
30,000.00
Gas Line relocate
20,000.00
Storm Water Management
30,000.00
Reconstruction Hanson St., 27th St. &workforce Bid.
100,000.00
Electric installation Lots 27 through 57 @ 1,500 ea.
45,000.00
Storm Sewer Viking Cir. Lot 17
29,000.00
City TIF Costs for Subdivisions See(A)below
428,000.00
Total TIF Expenses
1,417,000.00
Improvement Districts (Lots 12- 18)
Total cost
Private Developer cost City Developer Costs
City TIF Cost
Paving Viking Circle
40,000.00
Sewer Extension Lot 17 w/stubouts
30,000.00
Sewer Extension Lot 18 to be completed at later date
0
Water Extension Lot 17
16,000.00
Engineering
20,000.00
Total
105,000.00
43,000.00
63,000.00
Extension Districts Lot 19 - 57
Extension Sewerfrom College Dr to Hanson
$280,000.00
180,000.00
$100,000.00
Extension Sewer from to Lots 19-26
120,000.00
40,000.00
80,000.00 ( Will benefit ball fields)
Extension Seaver on Workforce Boulvard
125,000.00
100,000.00
25,000.00
Street Extension Workforce Boulvard
125,000.00
500,000.00
25,000.00
Storm Sewer Workforce Boulvard
50,000.00
50,000.00
Temp Turn a round Workforce Boulvard
20,000.00
20,000.00
Water Dist (lots 27 -57)
65,000.00
65,000.00
Grand Total for Improvement Districts $83,000.00 $300,000.00 $428,000.00 (A)
* The figures provided herein are preliminary estimates of Project costs and subject to change.
Exhibit "E"
DOCS/2070884.3
EXHIBIT "F"
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
Area, and any discrepancies between the legal descriptions and the depiction of the Project
Area below shall be decided in favor of the depiction of the Project Area.
Exhibit "F"
DOCS/2070884.3
Project Area Depiction:
Exhibit "F"
DOCS/2070884.3
EXHIBIT "G"
TRANSFORMATION HILL REDEVELOPMENT PROJECT
COST -BENEFIT ANALYSIS
(Pursuant to Neb. Rev. Stat. § 18-2113)
May, 2018
The cost -benefit analysis for the above referenced project, as described in the attached
Redevelopment Plan, which will utilize funds authorized by Neb. Rev. Stat. §18-2147, can be
summarized as follows:
1. Tax shifts resulting from the approval of the use of funds pursuant to
Section 18-2147:
The taxes generated by the current value of the property shall continue to be allocated
between taxing jurisdictions pursuant to standard statutory requirements. Only the incremental
taxes created by the Project will be captured to pay eligible public expenditures. Since the
incremental taxes would not exist without the use of TIF to support the Project, the true tax shift
of this Project is a positive shift in taxes after 15 years. However, for the purposes of illustrating
the incremental taxes used for TIF, the 15 year tax shift is as follows:
a. Redevelopment Project Valuation*: $700,000.00
b. Projected Completed Project Assessed Valuation**: $12,835,000.00
C. Projected Tax Increment Base (b, minus a.): $12,135,000.00
d. Estimated Tax Levy: 2.02
e. Annual Projected Tax Shift (less 1% assessor's fee)***: $242,675.73
* 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 2017 levy rate. There
has been no accounting for incremental growth over the fifteen -year TIF period. The base value
is assumed based upon an estimate of the current valuation of the Project Area if it were owned
by an entity that is not tax exempt, and the actual value is likely to be different than that
provided.
** This calculation includes both the public improvements from the Project and the private
improvements required under separate development agreements entered into between the City
and private developers. The Project is contingent upon the City entering into such development
agreements and therefore the increase in valuation stemming therefrom is included as part of
the above calculations.
*** The City anticipates that the private improvements will be constructed over a period of
years, resulting in an average annual projected tax shift of $175,363.40 (not $242,675.73).
Factoring -in an interest rate of five percent, the anticipated amount of TIF indebtedness is
$1,480,000.
Exhibit "G"
DOCS/2070884.3
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 anticipates expenditures of approximately $2,000,000 for construction and
installation of the Project and related and ancillary public improvements. It is proposed that up
to $1,480,000 in TIF over the 15 -year statutory period will be used for eligible public
expenditures associated with the Project. The actual amount of the TIF Indebtedness will
depend on the interest rate the redeveloper obtains from a TIF lender. The cost of the eligible
public improvements is estimated to exceed $1,480,000. The public infrastructure
improvements associated with the Project include, among other things, the construction of two
new public roads and the construction/extension of public utility infrastructure, as more
particularly described under paragraph A of section II of the Redevelopment Plan. These public
improvements are necessary to utilize the Redevelopment Area for any use and will create a
material positive impact on existing public infrastructure. The Comprehensive Plan provides
that the City's need for additional residential development includes the provision of adequate,
efficient, and appropriate utilities and services throughout the community. Accordingly, the
improvements will materially benefit the City and help meet the objectives of the Comprehensive
Plan.
Local Tax impacts (in addition to impacts of Tax Shifts described above):
The Project will 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 Project, the Project should generate immediate tax growth for
the City. The Project will include an amount of personal property that will be on the property tax
rolls upon its acquisition and installation. Additionally, the Project will require and pay for City
services. It is not anticipated that the 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 Project:
Currently, there are no businesses within the Redevelopment Area, The Project will
require temporary construction jobs during the construction period. Many of these construction
employees will be local workers, and the other workers will use services and buy goods in the
City during their construction phase.
It is not anticipated that the Project will have a material adverse impact on other
employers and employees of firms locating or expanding within the boundaries of the
Redevelopment Area. The City anticipates that the increased population density and public
infrastructure should positively impact the Redevelopment Area and could lead to additional
non-residential development that positively impacts employment in the area.
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 Project should have a material positive impact on private sector businesses in and
around the area outside the boundaries of the Redevelopment Area. The Project is not
anticipated to impose a burden or have a negative impact on local area employers, but should
Exhibit "G"
DOCS/2070884.3
provide needed housing for employees of surrounding businesses. Improvements to the
public/quasi-public areas should benefit the entire community.
5. 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 Project will provide needed housing and revitalization to
public/quasi-public areas in furtherance of the City's Comprehensive Plan. There are no other
material impacts determined by the Agency relevant to the consideration of the cost or benefits
arising from the Project.
Exhibit "G"
DOCS/2070884.3