20211223080728276RESOLUTION NO. 2021-43
COUNCIL MEMBER WOLFF INTRODUCED THE FOLLOWING RESOLUTION:
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE CITY OF BLAIR,
NEBRASKA, APPROVING A REDEVELOPMENT PLAN ENTITLED
"REDEVELOPMENT PLAN FOR THE GRANT STREET INDUSTRIAL PARK
REDEVELOPMENT PROJECT".
WHEREAS, pursuant to the Nebraska Community Development Law, Nebraska Revised
Statutes Sections 18-2101 et. seq. (the "Act"), the Mayor and City Council of the City of Blair,
Nebraska (the "City") designated a portion of the City, commonly referred to as the "Blair Core Area"
as blighted, substandard, and in need of redevelopment under the Act; and
WHEREAS, the Mayor and City Council finds based on substantial evidence in the record
of this proceeding that redevelopment of the Blair Core Area will result in the elimination and
prevention of blight and aligns with the purposes of the Act and the City's comprehensive plan for
land use and development (the "Comprehensive Plan"); and
WHEREAS, attached hereto as Exhibit "A" is a tax -increment financing redevelopment plan
for redevelopment within the Blair Core Area entitled "Redevelopment Plan for the Grant Street
Industrial Park Redevelopment Project" (the "Redevelopment Plan"), which sets forth a specific
redevelopment project within a portion of the Blair Core Area (the "Redevelopment Project"); and
WHEREAS, in conformance with the Act, the Planning Commission of the City held a duly
noticed public hearing on the Redevelopment Plan on December 7, 2014, and provided written
findings on and recommended the Mayor and City Council's adoption and approval of the
Redevelopment Plan; and
WHEREAS, in conformance with the Act, the Community Development Agency of the City
(the "Agency") previously provided written findings on and recommended the Mayor and City
Council's adoption and approval of the Redevelopment Plan; and
WHEREAS, on December 14, 2021, the Mayor and City Council held a duly noticed
public hearing on the Redevelopment Plan, in conformance with the Act; and
WHEREAS, after public hearing and review of the Redevelopment Plan, the Mayor and
City Council determined that the Redevelopment Plan complies with the Comprehensive Plan of
the City and will result in the elimination and prevention of blight; and
WHEREAS, after public hearing and review of the Redevelopment Plan, the Mayor and
City Council determined that the Redevelopment Project contemplated in the Redevelopment Plan
would not occur and would not be economically feasible without the use of tax -increment financing.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL
OF THE CITY:
Section 1. The Redevelopment Plan attached as Exhibit "A" complies with the
Comprehensive Plan of the City.
Section 2. Based on the substantial evidence in the record of this proceeding, the
Mayor and City Council finds as follows:
(a) The proposed land uses and building requirements for the
Redevelopment Project as described in the Redevelopment Plan are designed with
the general purpose of accomplishing, in conformance with the City's
Comprehensive Plan, a coordinated, adjusted and harmonious development of the
City and its environs which will, in accordance with the present and future needs,
promote health, safety, morals, order, convenience, prosperity and the general
welfare, as well as efficiency and economy in the process of development; that
under the Redevelopment Plan adequate provision is made for traffic, vehicular
parking, the promotion of safety from fire, panic and other dangers, adequate
provision for light and air, the promotion of the healthful and convenient
distribution of populations, the provision of adequate transportation, water, sewage
and other public utilities, schools, parks, recreational and community facilities and
other public requirements, the promotion of sound design and arrangement, the
wise and efficient expenditure of public funds and the elimination of, or prevention
of the recurrence of, insanitary or unsafe dwelling accommodations or conditions
of blight.
(b) The Redevelopment Plan contains a satisfactory statement of the
proposed method and estimated cost of acquisition and preparation for the
Redevelopment Project; that no public improvements are required to be provided
except as set forth in the Redevelopment Plan with respect to the Redevelopment
Project; that there are no estimated proceeds or revenue expected to be obtained by
the City from disposal of property to the redeveloper; that the Redevelopment Plan
sets forth a satisfactory method of financing for the Redevelopment Project
consisting of direct payment for public improvements or grant assistance to the
redeveloper for the Redevelopment Project, as designated in the Redevelopment
Plan which method of financing is the issuance by the City of its tax increment
revenue bond(s) to provide funds to pay for the costs of certain eligible
improvements by grant assistance and that there are no families currently living
within the redevelopment area, as set forth in the Redevelopment Plan, which are
currently expected to be displaced from such area as a direct result of the
Redevelopment Project.
(c) The cost -benefit analysis prepared in conjunction with the
Redevelopment Plan and attached thereto sets forth the factors required under
section 18-2113 of the Nebraska Revised Statutes and supports the Mayor and City
Council's adoption and approval of the Redevelopment Plan.
Section 4. The Redevelopment Project set forth in the Redevelopment Plan would not be
economically feasible without the use of tax -increment financing; would not occur in the
redevelopment area described in the Redevelopment Plan without the use of tax -increment financing;
and the costs and benefits of the Redevelopment Plan, including costs and benefits to other affected
political subdivisions, the economy of the community, and the demand for public and private services
have been analyzed by the City and have been found to be in the long-term best interest of all those
impacted by the Redevelopment Plan.
Section 5. Based on the foregoing and substantial evidence in the record of this
proceeding, the Mayor and City Council hereby approves and adopts the Redevelopment Plan.
PASSED AND ADOPTED THIS 14TH DAY OF DECEMBER, 2021.
MAYOR
ATTEST:
,x
CITY CLERK
APPROVED AS TO FORM:
SPECIAL CITY ATTORNEY
REDEVELOPMENT PLAN FOR THE
GRANT STREET INDUSTRIAL PARK
REDEVELOPMENT PROJECT
PREPARED NOVEMBER, 2021
BY THE COMMUNITY DEVELOPMENT AGENCY
OF THE CITY OF BLAIR, NEBRASKA
DOCS/2720724.2
A. Introduction
This Redevelopment Plan for the Grant Street Industrial Park Redevelopment Project
(this "Redevelopment Plan"), prepared by the Community Development Agency of the City of
Blair, Nebraska (the "Agency"), 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").
Prior to the preparation of this Redevelopment Plan, and in compliance with the Act, the
Mayor and Council designated a portion of the City as a blighted and substandard community
redevelopment area, such are being commonly referred to as the Blair Core Area (referred to
herein as the "Redevelopment Area"). This Redevelopment Plan sets forth a proposed
redevelopment project located within the Redevelopment Area to optimize the tax increment
financing ("TIF") resources available to offset certain costs deemed eligible for reimbursement
by TIF under the Act, and to remove existing and avoid future blighted and substandard
conditions, all as further described herein. This Redevelopment Plan contemplates the phased
construction of an industrial park consisting of six lots within the Redevelopment Area (such
public and private improvements are collectively referred to herein as the "Redevelopment
Project").
B. Redevelopment Area; Project Site; Existing Conditions
Exhibit "A", attached hereto and incorporated herein, sets forth the boundaries of the
Redevelopment Area. The Redevelopment Area is identical to the "Blair Core Area," which the
Mayor and Council previously declared blighted and substandard and in need of redevelopment.
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 located to the north of Grant Street, between South Industrial Park Drive and
NE 1st Street, in the City. 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
It is essential to the City's comprehensive plan for land use and development (the
"Comprehensive Plan") dilapidated, inadequate, or deteriorating portions of the City
conform to the current and future -needs of the City as it continues to grow and expand. Exhibit
"B"; attached hereto and incorporated herein, shows a portion of the future use map (showing the
DOCS/2720724.2
Redevelopment Area and surrounding areas) included within the City's Comprehensive Plan.
The map sets forth an Industrial designation for future use of the Project Site. An Industrial
designation allows for light and heavy industrial and manufacturing uses. Accordingly, the
anticipated uses associated with the Redevelopment Project conform to the desired use of the
Project Site set forth in the Comprehensive Plan's future use map.
The Comprehensive Plan further sets forth the following objectives:
- Facilitate the expansion of industrial campuses in the City;
- Provide adequate, efficient, and appropriate utilities and services throughout the
community to facilitate existing and future industrial areas;
- Expand development for industrial uses in the eastern part of City;
- Utilize Highway 30 as a critical transportation route and access point for industrial uses;
and
- Utilize and prioritize the City's economic development tools to attract more jobs to the
community.
The Redevelopment Project will assist in carrying out the above objectives. Accordingly,
the Redevelopment Project is in conformance with and furthers the objectives under the City's
Comprehensive Plan.
D. Redevelopment Project Overview
Exhibit "C", attached hereto and incorporated herein, sets forth the proposed site plan for
the Redevelopment Project. The site plan is preliminary in nature and subject to change.
The Redevelopment Project is anticipated to consist of two separate phases undertaken by
different developers, encompassing the six lots that make up the Project Site. One of the
developers, KJK_ Investments LTD Partnership ("KJK"), is the current owner of the Project Site.
The other developer, KS Commercial, LLC ("KS Commercial"), is under contract with KJK to
purchase one of the six lots ("Lot 2", as shown in Exhibit "C") for the construction of a
warehouse building thereon. KJK and KS Commercial, together with their successors and
assigns, are collectively referred to herein as "Redevelopers". Notwithstanding the foregoing,
KJK and KS Commercial will not act as joint venturers, and any collective reference to the same
is for purposes of convenience only. Accordingly, KJK shall have no rights or obligations with
respect to the undertakings of Phase Two (defined below), and KS Commercial shall have no
rights or obligations with respect to the undertakings of Phase One (defined below).
The first phase of the. Redevelopment Project ("Phase One") will .consist of KJK 's
construction and implementation of the infrastructure needed to convert the currently -vacant
2
DOCS/2720724.2
Project Site into buildable lots for an industrial park. This will include site preparation and
grading, water detention, landscaping, and the construction of public infrastructure and utilities
to sei vice the lots, such as paving, water, sewer, gas, communications and electrical. Once KJK
completes Phase One, KS Commercial intends to undertake "Phase Two" via the construction an
approximately 30,000 square foot warehouse and improvements related thereto on Lot 2, as
shown on Exhibit "C-1", attached hereto and incorporated herein. KJK intends to market the
remaining five lots (the "KJK Lots") to other developers/companies for the construction of
private improvements of a similar (industrial) nature.
It is the intent of this Redevelopment Contract that KJK be entitled to the TIF Revenues
(defined in Paragraph I(b), below) collected on the KJK Lots, as reimbursement of the eligible
expenditures incurred by KJK in constructing Phase One. However, because KJK intends to
market the KJK Lots to third party developers, the generation of such TIF Revenues will rely
upon KJK 's ability to successfully market such lots to third parities who will carry out the
construction of private improvements thereon. Such private im, provements (i.e., the buildout of
the structures on the lots) are not anticipated to be undertaken by KJK, but will affect the future
valuation of the Project Site and the TIF Revenues derived therefrom. And because the
construction of the private improvements will not be within KJK's control, it is anticipated that
the division of real estate taxes for the purpose of generating TIF Revenues will occur on a lot -
by -lot basis over the course of multiple years (referred to herein as a "Sub -Phase"). The timing
for each Sub -Phase will be based upon the rate of construction of the private improvements on
the KJK Lots, such that the "Effective Date" (as provided under section 18-2147 of the Act) for
purposes of TIF will be determined on a lot by lot basis in order to maximize the TIF Revenues
available to help finance the eligible costs of the Redevelopment Project. Economic conditions
and market demands will determine the progression of construction and number of Sub -Phases
needed for the same. The Redevelopment Project requires flexibility and will require a number
of Sub -Phases over the course of multiple years. New Sub -Phases will occur until the buildout
of structures on all KJK Lots is complete or within seven (7) years after the adoption of this
Redevelopment Plan, whichever occurs first. KJK shall be solely and completely responsible for
notifying the Agency of each Sub -Phase and the Effective Date related thereto. Notwithstanding
the foregoing, it is the intent of this Redevelopment Plan that the final Sub -Phase shall have an
Effective Date of no later than January 1, 2029 as shall be specified in the "Redevelopment
Contract" (as defined in the Act) between KJK and the Agency.
Further, it is the intent of this Redevelopment Plan that KS Commercial be entitled to the
TIF Revenues collected on Lot 2 only, as generated by KS Commercial's construction of Phase
Two. Such terms shall be set forth in greater detail in a separate Redevelopment. Contract
between KS Commercial and the Agency.
DOCS/2720724.2
No public acquisition of the Project Site is anticipated aspart of the Redevelopment
Project. Additionally, no families or businesses will be displaced as a result of the
Redevelopment Project.
E. Existing Conditions
1. Existing Land Use
The Project Site currently consists of vacant land.
2. Existing Zoning
The Project Site is currently zoned as an Agricultural/Heavy Industrial and
Manufacturing District.
3. Existing Public Improvements
Public access to the Project Site currently exists from Grant Street. However, paving of
additional public rights-of-way in the interior of the Project Site will be necessary to provide all
lots with public access. The Project Site is without interior paving, sewer, water, storm sewer,
electrical service, public walks, and related infrastructure.
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
Public access to the Project Site currently exists via Grant Street. KJK will construct a
public right-of-way and cul-de-sac allowing for ingress and egress from the interior lots. 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 Redevelopers will be subject to review and
approval by the City's engineer or other designee of the City.
0
DOCS/2720724.2
b. Construction of Water and Sewer Improvements.
KJK will construct or extend water and sewer systems to provide appropriate service to
all lots within the Project Site; and the Project Site will be filled and graded to provide for
effective surface water runoff.
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 thereon.
KJK also anticipates the construction of electric, gas and telecommunication utilities extending
to the lots within the Project Site. The anticipated public improvements (and costs related to the
public improvements) for the Redevelopment Project are listed in Exhibit "E", attached hereto
and incorporated herein.
d. Additional public facilities or utilities
Other than the construction or extension of the utilities and infrastructure detailed above,
Redevelopers 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.
f. Population Density
The Project Site currently sits undeveloped and vacant. The Redevelopment Project
contemplates use of the Project Site for industrial purposes, and therefore should not result in an
increase to population density in the area.
g. Land Coverage
Land coverage for the Project Site includes approximately 20.66 acres of undeveloped
land. The Redevelopment Project will consist of the construction of necessary infrastructure to
support the fixture development of industrial facilities on six lots, as shown on the site plan set
forth in Exhibit "C". With respect to Phase Two, KS Commercial anticipates the construction of
an approximately 30,000 square foot building on Lot 2, which consists of 3.101 acres. Because
5
DOCS/2720724.2
buildout of the private improvements on the KJK, Lots will be conducted by third parties via the
Sub -Phases, the land coverage for such lots is unknown at this time. Notwithstanding, the
Redevelopment Project and subsequent build -out of private improvements on the completed lots
will be required to comply with all applicable land coverage ratios required by the City.
h. Parking
Phase Two anticipates the construction of on-site parking, as shown in Exhibit "C-1".
Because buildout of the private improvements on the KJK Lots will. be conducted by third
parties, the parking requirements and plan for such lots is unknown at this time.
Notwithstanding, the Redevelopment Project and subsequent build -out of private improvements
on the completed lots will be required to comply with the City's parking requirements.
i. Zoning, Building Code and Ordinance
The Project Site is currently zoned as an Agricultural/Heavy Industrial and
Manufacturing District, which allows for, among others: wholesale and warehouse uses, storage
facilities, most industrial uses, agricultural uses, and manufacturing uses. The building
constructed by KS Commercial is anticipated to be utilized as a warehouse for steel products. It
is further anticipated that all improvements constructed on the KJK Lots will conform to the
above permitted uses. Accordingly, it is not anticipated that a zoning change will be required as
part of the Redevelopment Project. Notwithstanding, Redevelopers (and subsequent builders)
will be required to comply with all zoning, building code, and ordinances related thereto, and any
necessary changes to the same.
3. Private Improvements
Phase Two contemplates the construction of an approximately 30,000 square foot
warehouse building on Lot 2, in addition to the related facilities and improvements ancillary
thereto. The exact nature and specifications of the private improvements constructed on the KJK
Lots is unknown at this time. However, KJK anticipates that such private improvements will be
consistent with those constructed by KS Commercial via Phase Two, provided the uses for the
same will vary. KS Commercial or other builders taking reconveyance from KS Commercial
will construct the Phase Two private improvements. Third -party developers that purchase the
KJK Lots will be responsible for the construction of private improvements thereon.
G. Project Costs
The total estimated costs of Phase One are $4,42.1,000., The total estimated costs of
Phase Two are $2,505,160. The estimated costs of the Redevelopment Project are attached and
DOCS/2720724.2
incorporated herein as Exhibit "D". Such figures are only estimates based upon 2021 pricing,
and are subject to change without further amendment of this Redevelopment Plan.
H. Implementation
KJK intends to commence construction of Phase One upon final approval of TIF for the
Redevelopment Project. KJK anticipates that Phase One will be completed in Spring of 2022,
subject to unforeseen circumstances or delays. KS Commercial intends to commence Phase Two
upon the completion of Phase One. KS Commercial anticipates that Phase Two will be
completed by December 31, 2022, subject to unforeseen circumstances. KJK, intends to market
the remaining KJK Lots immediately following the completion of Phase One, with subsequent
buildout of the improvements by third -party developers on all such lots occurring no later than
seven (7) years after the adoption of this Redevelopment Plan.
The anticipated start dates and completion dates for the phases are preliminary and
subject to change based upon market conditions, availability of materials, workforce availability
and other extraneous factors. More or less phases spanning more or less time than the
anticipated completion dates listed above may be necessary as a result of such extraneous
conditions or 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(s), or amendment(s) thereof, or in the resolution(s) of the Agency authorizing the
issuance of the TIF Indebtedness (defined below) 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 fiends 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(s) or bond/note resolution, generated by 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
DOCS/2720724.2
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 Phase One, the base tax year and Base Tax Amount will be determined
on a lot -by -lot basis in accordance with the subsequent buildout of private improvements on the
KJK Lots, as established via KJK's notification to the Agency regarding each Sub -Phase, as
further detailed in Paragraph D, above. The Agency and KJK anticipate that the Effective Date
will be different for each Sub -Phase, and therefore the increment period for each Sub -Phase will
be different; provided that the increment period related to any such Sub -Phase shall never exceed
fifteen years.
With respect to Phase Two, such information shall be set forth in the Redevelopment
Contract entered into between KS Commercial and the Agency and/or the resolution of the
Agency authorizing the issuance of the TIF Indebtedness.
1. Necessity of TIF
Redevelopers have represented and warranted to the City that it would not be
economically feasible to develop the Redevelopment Project without TIF. In support thereof,
KS Commercial and KJK made the below representations and warranties in their respective TIF
applications.
With respect to Phase Two, KS Commercial represented:
"Without TIF, this project will not proceed. The costs of construction are simply
too high right now to provide a reasonable return on this type of facility.
Applicant and the tenant desire to relocate in Blair. The location would be good
for the business, but the cost does not make sense without TIF. Tenant has the
ability to continue to lease space in its current Omaha location and will continue
to operate out of that location if the applicant cannot obtain the TIF necessary to
bring the development costs, and ultimately the rent required for a reasonable
return, down to an acceptable figure."
With respect to Phase Two, KJK represented:
"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 to grade the site, construct the street and install necessary
DOCS/2720724.2
utilities greatly exceeds the fair market value of the site after these improvements
are completed. Additionally, the Redevelopment Project is designed to attract
employers consistent with the Comprehensive Plan but construction costs are too
high to achieve the same without TIF. 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."
"The Developer has been unable to develop the land due to the substantial cost of
site preparation. Without TIF, Redeveloper would not be able to prepare the site
and to make necessary public improvements in a manner that makes the proposed
lots attractive and economically feasible for the prospective purchasers.
Accordingly, the Redevelopment Project is not economically viable without the
assistance of TIF and Redeveloper would not construct the Redevelopment
Project without TIF."
The above representations by KJK' and KS Commercial are found to be accurate and
compelling. Accordingly, the Redevelopment Project, as proposed herein, is not economically
viable without the assistance of TIF and Redevelopers would not construct the same without TIF.
2. Sources and Uses of Financing
Based upon the projections provided in Exhibit "E", attached hereto and incorporated
herein, the Agency and Redevelopers contemplate issuance of one TIF bond or note to KJK (or
its assignee) related to Phase One (the "KJK Bond"), and one TIF bond or note to KS
Commercial (or its assignee) related to Phase Two (the "KS Commercial Bond") (generally, the
"TIF Indebtedness"). The KJK Bond shall be in an aggregate principal amount not to exceed
$710,000, at an interest rate not to exceed 5.0% per annum. The KS Commercial Bond shall be
in an aggregate principal amount not to exceed $312,400, at an interest rate not to exceed 5.0%
per annum. The final principal and interest amount comprising the TIF Indebtedness shall be
determined by the Agency and set forth in the Redevelopment Contract(s) and/or resolution
authorizing the issuance of the TIF Indebtedness, as applicable.
The total estimated costs of Phase One are $4,421,000. The total estimated costs of
Phase Two are $2,505,160. Both KJK and KS Commercial anticipate that the balance of the
public and private costs exceeding the TIF Indebtedness (for their respective phases) will be
financed by a mix of equity and traditional bank financing. The above figures are only
projections and are subject to change as a result of market conditions and other extraneous
factors.
9
DOCS/2720724.2
J. Cost -Benefit Analysis
A cost -benefit analysis for the Redevelopment Project is attached as Exhibit "F" and
incorporated herein.
Exhibits:
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 (Phase One)
Exhibit C-1:
Site Plan and Future Land Use (Phase Two)
Exhibit D:
Estimated Construction Cost of the Redevelopment Project
Exhibit E:
Sources and Uses of TIF
Exhibit F:
Cost -Benefit Analysis
10
DOCS/2720724.2
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EXHIBIT "A-1"
Project Site and Existing Land Use
Legal Description:
LOTS 1 THROUGH 6 INCLUSIVE, GRANT STREET INDUSTRIAL PARK, A TRACT OF LAND BEING
ALL OF TAX LOT 271, A TAX LOT LOCATED IN PART OF THE SEI/4, AND ALSO PART OF THE
SWI/4, BOTH BEING LOCATED IN SECTION 7, TOWNSHIP 18 NORTH, RANGE 12 EAST OF THE 6TH
P.M., WASHINGTON COUNTY, NEBRASKA.
* In the event Redevelopers subdivides or replats the Project Site, the legal description(s) of such
subdivided or replatted parcel(s) comprising the Project Site, upon final approval of the City with
respect thereto, shall replace and supersede the above legal description.
Exhibit "A-1"
DOCS/2720724.2
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EXHIBIT "B"
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DOCS/2720724.2
EXHIBIT "C"
Site Plan and Future Land Use (Phase One)
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Exhibit "C"
DOCS/2720724.2
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Exhibit "C"
DOCS/2720724.2
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EXHIBIT "C-1"
Site Plan and Future Land Use (Phase Two)
Scale M
* The above is a preliminary site plan and is subject to change.
Exhibit "C-1 "
DOCS/2720724.2
1r
EXHIBIT "D"
Estimate of Construction Costs
Phase One:
Buildout of Private Improvements
$3,000,000
Land Acquisition
$206,000
Site Remediation
$150,000
Site Preparation & Grading
$430,000
Surveying, Testing & Permitting
$70,000
Drainage & Detention
$20,000
Street Improvements
$185,000
Utility and Infrastructure Improvements
$180,000
Site Beautification & Landscaping
$50,000
Consultant and Professional Fees
$130,000
TOTAL
Phase Two:
$4,421,000
Land Acquisition
$270,160
Building Cost
$1,500,000
Paving
$450,000
Plumbing & Sprinklers
$115,000
Electric
$115,000
Site Beautification & Landscaping
$40,000
Legal Fees
$15,000
TOTAL
$2,505,160
* The above figures are estimated values based on current pricing. These preliminary estimates
are subject to change, as Redevelopers have no control over the change in cost of materials and
services between the time of the approval of this Redevelopment Plan and commencement of
construction.
Exhibit "D"
DOCS/2720724.2
EXHIBIT "E"
Sources and Uses of TIF
USES:
Phase One:
Acquisition
$206,000
Site Remediation
$150,000
Site Preparation & Grading
$430,000
Surveying, Testing & Permitting
$70,000
Drainage & Detention
$20,000
Street Improvements
$185,000
Utility and Infrastructure Improvements
$180,000
Site Beautification & Landscaping
$50,000
Consultant and Professional Fees
$130,000
TOTAL
Phase Two:
$1,421,000
Land Acquisition
$270,160
Energy Efficiency Enhancements
$30,000
Fagade Enhancements
$70,000
Site Beautification & Landscaping
$40,000
Architecture and Engineering
$50,000
Legal Fees
$15,000
TOTAL
$475,160
* The above "Uses" are preliminary estimates based on current pricing and are subject to change.
Exhibit "E"
DOCS/2720724.2
SOURCES*:
Phase One General Assumptions:
Base Value:
$189,425
Final Value:
$4,065,000
Tax Levy (2020):
2.12%
Yearly TIF Revenues Available**:
$81,340
Total TIF Revenues Available:
$1,220,100
KJK Bond:
NTE $710,000
Interest Rate:
NTE 5.0%
Phase Two General Assumptions:
Base Value:
$35,560
Final Value:
$1,500,000
Tax Levy (2020):
2.12%
Yearly TIF Revenues Available:
$30,736
Total TIF Revenues Available:
$461,040
KS Commercial Bond:
NTE $312,400
Interest Rate:
NTE 5.0%
* The above figures are estimates based upon the assumptions in this Exhibit "E" and are subject to
change.
** Yearly TIF Revenues for Phase One contemplates the combined average of all Sub -Phases over
the course of a 15 -year TIF period.
Exhibit "E"
DOCS/2720724.2
EXHIBIT "r"
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 the Redevelopment Project is set forth in Exhibit "E" of the
Redevelopment Plan, and is adopted hereby.
Notes:
1. 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 2020 levy rate. There has been no accounting for incremental
growth over the 1 S year TIF period.
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 Redevelopment Project requires public infrastructure installation. The Project Site
will require the construction of internal public roads to provide vehicular access from Grant
Street to the lots, along with the construction and/or extension of utilities to serve the buildings
on the lot. The public improvements for the Redevelopment Project will address any traffic and
street infrastructure concerns that would otherwise be created by the Redevelopment Project.
The Project Site will be filled and graded to provide for effective surface water runoff. The
Exhibit "F"
DOCS/2720724.2
Agency and Redevelopers do not anticipate that the Redevelopment Project will have a negative
impact on currently -existing City infrastructure.
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 industrial facilities constructed
on the Project Site 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 Project Site:
The Redevelopment Project should result in new and expanded business within the
Project Site. It is anticipated that the six lots will attract either new businesses to the City or
existing businesses within the City looking to expand. This should result in additional jobs.
Accordingly, it is anticipated that the Redevelopment Project will have a positive impact on
employers and employees locating or expanding within the boundaries of the Project Site.
4. Impacts on other employers and employees within the City and the
immediate area that is located outside of the boundaries of the Project Site:
The Project Site is located in an area of the City that is already utilized primarily for
industrial purposes, and should not pose a nuisance to surrounding businesses. It is not
anticipated that the businesses locating within the Project Site will negatively impact or compete
with surrounding business, but will instead provide space for the expansion of such businesses
and create additional jobs for nearby employees. 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:
. The Redevelopment Project is not of a residential nature and should not have a direct
impact on student populations in the City. While the creation of new jobs may attract individuals
with school -aged children that are not currently residents of the City, such an impact would be
minimal and is too .speculative to reasonably consider the costs and benefits of the same.
Exhibit "F"
DOCS/2720724.2
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 costs or benefits arising from the Redevelopment Project. As such, the costs
of the Redevelopment Project are outweighed by its benefits.
Exhibit "F"
DOCS/2720724.2