2015-33RESOLUTION NO. 2015- 33
COUNCIL MEMBER WOLFF INTRODUCED THE FOLLOWING RESOLUTION:
A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF BLAIR,
NEBRASKA, APPROVING A REDEVELOPMENT PLAN FOR REDEVELOPMENT AREA #3
PROJECT #1, IN THE CITY OF BLAIR, NEBRASKA, AUTHORIZING THE ISSUANCE OF
INDEBTEDNESS AND ADVANCES OF MONEY IN CONNECTION WITH THE
REDEVELOPMENT PLAN, AND PROVING THE PLEDGE OF INCREMENTAL TAX
REVENUES IN THE PROJECT AREA FOR PAYMENT OF SUCH INDEBTEDNESS AND
ADVANCES.
WHEREAS, the Mayor and City Council of the City of Blair, Nebraska (the "City") have
previously declared an area in the City of Blair, designated as Lots 7 and 8, Pleasant Valley II, an
addition to the City of Blair, Washington County, Nebraska, (the "Redevelopment Area") to be
blighted and substandard in accordance with Section 18-2101 through 18-2153 of the Nebraska
Revised Statutes (The "Act"); and
WHEREAS, the Community Development Agency of the City of Blair ("Agency") and the
City Planning Commission have recommended to the City a Redevelopment Plan for the
Redevelopment Area attached hereto as Exhibit 1; and
WHEREAS, the City has held a public hearing, following publication of notice as required by
law, on a proposed Redevelopment Plan for the Redevelopment Area attached hereto as Exhibit 1,
together with the proposals to utilize tax increment financing as set forth in this Resolution; and
WHEREAS, the City desires to adopt the Redevelopment Plan for the Redevelopment Area.
NOW THEREFORE, BE IT RESOLVED by the Mayor and City Council of the City of Blair,
Nebraska as follows:
1. The City hereby approves the Redevelopment Plan in the form attached hereto as
Exhibit 1. The terms and conditions of such Redevelopment Plan are hereby
incorporated herein by reference and made a part hereof (collectively the
"Redevelopment Plan").
2. The recommended improvements in the attached Redevelopment Plan are hereby
approved and designated Redevelopment Projects ("Redevelopment Projects") as
part of the Redevelopment Plan.
3. The Redevelopment Area and the Redevelopment Projects approved in this
Redevelopment Plan, as amended from time to time, is hereby declared a
"Redevelopment Project" within the meaning of the Act. Pursuant to Section 18-
2147 of the Act, ad valorem taxes levied upon real property in the Redevelopment
Area shall be divided, for a period not to exceed 15 years after the effective date of
this provision, which effective date shall be January 1, 2016 as follows:
a) That portion of the ad valorem tax which is produced by the levy at the rate
fixed each year by or for each public body upon the Redevelopment Project
Valuation (as defined in the Act) shall be paid into the funds of such public
body in the same proportion as all other taxes collected by or for such bodies;
and
b) That portion of the ad valorem tax on real property in the Redevelopment
Area in excess of such amount, if any, shall be allocated to, is pledged to,
and, when collected, paid into a special fund of the Agency to pay the
principal of, the interest on, and any premiums due in connection with the
bonds, loans, notes, or advances of money to, or indebtedness incurred by,
whether funded, refunded, assumed, or otherwise, the Agency for financing
or refinancing, in whole or in part, the Redevelopment Projects. When such
bonds, loans, notes, advances of money, or indebtedness, including interest
and premiums due, have been paid, the Agency shall so notify the County
Assessor and County Treasurer and all ad valorem taxes upon real property in
the Redevelopment Area shall be paid into the funds of the respective public
bodies.
C) The City shall execute and the Agency shall file with the County Treasurer
and County Assessor of Washington County, Nebraska, prior to January 1,
2016, Notice to Divide Taxes with respect to the Redevelopment Area.
4. For purposes of paying all or a portion of the costs of the Redevelopment Projects,
the City hereby authorizes the issuance, from time to time, of bonds, notes, or other
indebtedness, and the advances of money by the Agency, to pay such costs. Such
bonds, loans, other indebtedness or advances of money shall be represented by such
instruments, drafts, or warrants as are authorized by the Agency from time to time,
and shall be payable from the allocation and pledge of ad valorem taxes pursuant to
this Resolution and from such other funds as are authorized and approved by the
Agency from time to time.
5. In accordance with this Resolution, the Agency shall maintain a separate fund of the
Agency designated "Community Development Agency of the City of Blair, Nebraska
Redevelopment Area #3 Redevelopment Projects Fund." The Treasurer shall deposit
in a separate account in such fund all ad valorem taxes received by the Agency from
the County Treasurer of Washington County, Nebraska, pursuant to paragraph 3 of
this Resolution. All monies in such account of the Projects Fund shall be used solely
to pay principal, interest, and premiums, if any, due in connection with the bonds,
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loans, notes, other indebtedness or advances of money incurred by the Agency in
connection with financing the Redevelopment Projects.
6. The City hereby finds and determines that the proposed land uses and building
requirements in the Redevelopment Area are designed with the general purposes of
accomplishing, in accordance with the general plan for development of the City, a
coordinated, adjusted and harmonious development of the City and its environs
which will, in accordance with present and future needs, promote health, safety,
morals, order, convenience, prosperity, and the general welfare, as well as efficiency
and economy in the process of development; including, among other things, adequate
provision for traffic, vehicular parking, the promotion of safety from fire, panic, and
other dangers, adequate provision for light and air, the promotion of a healthful and
convenient distribution of population, the provision of adequate transportation, water,
sewerage, and other public utilities, schools, parks, recreation and community
facilities, and other public requirements, the promotion of sound design and
arrangement, the wise and efficient expenditure of public funds, and the prevention
of the recurrence of unsanitary or unsafe dwelling accommodations, or conditions of
blight.
7. The Agency has conducted, and the City hereby approves, pursuant to Section 18-
2113 (2) of the Act, a cost -benefit analysis with respect to the Redevelopment
Projects, and further finds as follows:
a) The Redevelopment Projects would not be economically feasible without the
use of tax -increment financing;
b) The Redevelopment Projects would not occur in the community
Redevelopment Area without the use of tax -increment financing; and
C) The costs and benefits of the Redevelopment Project, 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 governing body of the City and have been found to be in the
long-term best interests of the community impacted by the Redevelopment
Project.
8. Any Resolution passed and approved prior to the passage, approval and publication
of this Resolution which is in conflict with the terms and provisions of this
Resolution is hereby appealed to the extent of such conflict. This Resolution shall
take effect and be in full force and effect from date of its passage, approval and
publication as required by law. The provisions of this Resolution are separable and
in validity of any phrase, clause or part of this Resolution shall not affect the validity
or effectiveness of the remainder of this Resolution.
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COUNCILMEMBER HALL MOVED THAT THE RESOLUTION BE ADOPTED AS READ,
WHICH SAID MOTION WAS SECONDED BY COUNCILMEMBER WILLIS. UPON ROLL
CALL, COUNCILMEMBERS SHEPARD, STEWART, WILLIS, HANSEN, JENSEN, HALL,
ANDERSEN AND WOLFF VOTING "AYE", AND COUNCILMEMBERS NONE VOTING
"NAY", THE MAYOR DECLARED THE FOREGOING RESOLUTION WAS PASSED AND
ADOPTED.
Passed and approved by the City of Blair this 13th day of October, 2015.
CITY OF BLAIR, NEBRASKA
%JAREALPH, MAYOR
ATTEST:
BRENDA WHEELER, CITY CLERK
(SEAL)
STATE OF NEBRASKA )
) :ss:
WASHINGTON COUNTY )
BRENDA R. WHEELER, hereby certifies that she is the duly appointed, qualified and acting
City Clerk of the City of Blair, Nebraska, and that the above and foregoing Resolution was passed
and adopted at a regular meeting of the Mayor and City Council of said city held on the 13th day of
October, 2015.
BRE A R. WHEELER, CITY CLhkK
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WOODHOUSE
REDEVELOPMENT PROJECT PLAN
LOTS 7 AND 8, PLEASANT VALLEY II,
AN ADDITION TO THE CITY OF BLAIR, NEBRASKA
AUGUST 19, 2015
Submitted by:
c/o Larry A. Jobeun
Fullenkamp, Doyle & Jobeun
11440 West Center Road
Omaha, Nebraska 68144
(402) 334-0700
Introduction:
This redevelopment plan proposes to redevelop Lots 7 and 8, Pleasant Valley II,
an addition to the City of Blair, Washington County, Nebraska ("Redevelopment Site" or
"Site"), which is depicted on the attached Exhibit A, into a body shop consisting of
approximately 31,000 square feet, to be located on Lot 7, and a surface parking on Lot
8 of the Redevelopment Site. This Redevelopment Plan includes the entire
Redevelopment Site.
Site History and Proposed Development:
The Redevelopment Site is approximately 5.633 acres located west of Highway
30 at Pleasant Valley Boulevard. The Redevelopment Site is the former proposed hotel
and convention center project that commenced construction, but failed to be completed
after significant grading, site preparation and retaining wall work was done.
The Site is currently zoned Agricultural/Highway Commercial District (A/CH).
The cost of acquisition of the Redevelopment Site is $500,000.00, and the
estimated costs of tax increment financing ("TIF") eligible redevelopment costs are
$150,000, as shown on the attached Exhibit B. Accordingly, the total TIF eligible costs
are in the amount of $650,000.
The assessed value of the Redevelopment Site is presently $441,645.00. The
proposed valuation upon full build out of the proposed automobile dealership and
related facilities is expected to be approximately $2,015,000, based upon the proposed
redevelopment of the Site.
As a result of the failed development, the Redevelopment Site, in its present
condition, will continue to be a detriment and economic liability to this area of the City
without the use of tax increment financing as an economic incentive. The partially
graded Site and completed retaining wall constitute a hazardous and unsightly
condition. Storm water drainage from the site also makes redevelopment of the site
difficult. The re -grading of the site and the burying of the retaining wall increases the
development costs substantially and further impairs the successful redevelopment of
the site. There are approximately 22,000 yards of dirt that needs to be moved to make
the site developable.
The applicant believes that the developmental difficulties of the Redevelopment
Site has inhibited its redevelopment, and that without TIF, the costs to properly prepare
the Redevelopment Site to accommodate development will result in the site continuing
in its present undeveloped state.
Land Use/Zoning:
The site is currently zoned Agricultural/Highway Commercial District (A/CH),
which will allow construction and operation of a body shop with a conditional use permit
and surface parking area as a matter of right. Other than the approval of a conditional
use permit for the operation of a body shop, no zoning change will be required. The
proposed facility will comply with the site regulations for the A/CH base district zone.
This proposed development is consistent with the City's Comprehensive Development
Plan and will be compatible with adjacent developments. No material change in
population densities is anticipated.
Uti l iti es/1 of rastru ctu re:
Water, gas, electric, communication, and sanitary sewer lines are available
adjacent to the Redevelopment Site although extensions of some utility mains may be
necessary to reach the Site. As indicated above, storm sewer facilities are uncertain as
to location, size and capacity. Further investigation is warranted and will be undertaken,
but storm water management presents a costly and difficult issue for this site.
TIF Compliance:
The request meets the necessary requirements for consideration under the
Nebraska Community Redevelopment Act. The project will provide various employment
opportunities in the City. Specifically, Woodhouse anticipates that the proposed
redevelopment project will result in the retention of approximately twenty-five (25)
employees and creation of up to five (5) new jobs over the course of the next 5 years,
with a projected average pay for each new employee of approximately $12 to $15/hour
for hourly employees and up to $100,000 for salaried employees and management.
The TIF proceeds will be used to cover acquisition, site preparation, utility costs and
other site specific TIF eligible costs. The project will have a positive economic impact
for the City of Blair, Nebraska. Further, the up -front costs associated with the
acquisition and preparation of the site for redevelopment would be prohibitively high
without the use of TIF as an economic incentive. As such, Woodhouse requests TIF to
help offset these costs such that the proposed redevelopment is feasible.
Financing:
The estimated value of the project upon full build -out is estimated to be
$2,015,000. Accordingly, the project will support the TIF request in the principal amount
of $294,718 with interest accruing at the rate of five percent (5%) per annum. The
amortization schedule is attached hereto as Exhibit C. The remaining project costs will
be paid through equity and/or debt financing.
TIF Cost Benefit Analysis:
The project provides for redevelopment on property within the City that has
remained undeveloped, underutilized and in a hazardous and unsightly condition.
Because of the high development costs, the benefits of developing this property are
unacceptable to Woodhouse without the use of TIF as an economic incentive.
Accordingly, it is necessary to implement innovative financing approaches to be used to
encourage redevelopment and to support the potential growth that will occur as a result
of this and other improvements that are likely to follow within the surrounding area. The
following benefits will result from the redevelopment of this area through the use of TIF:
(1) The use of TIF will not result in tax shifts. The current level of taxes will
continue to flow to the current taxing authorities and only the increased value of
revenues resulting from the improvements will be applied to the cost of the
improvements through the use of TIF.
(2) No community public service needs will be generated as a result of this
project. The proposed TIF will be used, in part, to offset costs that are eligible for TIF.
(3) The development of the Site will have a positive impact on the employers
and employees in the immediate area outside the area of the Site. Specifically, the
redevelopment will make the Site more aesthetically pleasing, which will result in a
positive impact on the areas surrounding the Site.
(4) The long-term benefits resulting from the elimination of the substandard
and blight conditions and the increase in the tax base resulting from the redevelopment
are other valid justifications for the use of TIF for this project.
The project site meets the requirements of the City's Comprehensive
Development Plan and City Ordinances as well as the Nebraska Community
Redevelopment Law that establishes the process and requirements for the approval of
this Redevelopment Plan.
Based upon the foregoing, the applicant respectfully. requests TIF in the amount
of $294,718, with interest accruing thereon at the rate of five (5%) percent per annum.
Respectfully submitted,
Larry A. Jobeun
For the Firm
EXHIBIT A
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Acquisition:
Grading and Clearing:
Retaining Wall:
Storm Sewers:
Gas Service:
Power:
EXHIBIT B
TIF ELIGIBLE COSTS
$500,000
$54,000
$35,000
$25,000
$9,000
26.000
$649,000
EXHIBIT C
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