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RES 2015-0149 - Blackstone TIF redevelopment project plan o���'."","�•`^'Fe,t l:t r�- 4�-• ENE) Planning Department � y's t , F. l> �� I/�" 7 Omaha/Douglas Civic Center 4r.V 1819 Farnam Street,Suite 1100 Omaha,Nebraska 68183 tip. .�;•.�.•�: (402)444-5150 O,p• °p 4. I'elefax(402)444-6140 4rE1)FEBRV� CITY CLERK James R.Thele City of Omaha h, K( Director Jean Stothert,Mayor r{' �"�'�i' j��� A h+ February 3, 2015 Honorable President and Members of the City Council, The attached Resolution transmits the Blackstone Mixed-Use Tax Increment Financing (I IF) Redevelopment Project Plan for sites located at 3824 Farnam Street and 401 South 41st Street. The project plan area is located on the edges of the Blackstone Business District and lies within the Destination Midtown Plan area. The redevelopment of these sites will allow for the continued revitalization of the Blackstone District and provide much needed housing for anticipated UNMC employees. It will also enhance the density in the area, which would support ridership for future mass transit efforts. This Redevelopment Project Plan covers two development sites within approximately three blocks of each other. The Farnam Street project proposes a new, mixed-use structure a with 51 market-rate apartment units and 4,000 square feet of commercial space, while the South 41st Street project proposes a new multi-family structure with 39 market-rate apartment units. The multi-family unit mix for each site includes studios, one-bedrooms, and two-bedrooms. A majority of the required parking will be provided on site underneath the structures at each redevelopment site, and each site will include additional on-street parking available to the public. The structure located at 3824 Farnam Street, an underutilized gas station, will be demolished and graded in preparation for a new 4-5 story mixed-use structure fronting 38th Avenue with 1-2 stories along Farnam Street. The site will also include 4,000 square feet of commercial space with diagonal parking added along Farnam Street. The residential structure located at 401 South 41st Street has code violations, as do a handful of properties surrounding it. Proposed for this site is the demolition of the existing structure and the construction of a new 4-5 story multi-family building. The Planning Board recommended the approval of this Redevelopment Project Plan at the January 7, 2015 public hearing. The Redevelopment Project Plan recommends the City's participation in the redevelopment of this project site through the allocation of TIF in an amount up to $1,300,000.00. TIF will be used to offset TIF eligible expenses for acquisition, demolition, architectural and engineering fees, site work, environmental costs and all public improvements associated with this project, as well as a $37,000.00 contribution from TIF loan proceeds to the Midtown Public Improvement Fund, which will go toward the offsetting costs of the Farnam two-way conversion. The total estimated project costs are $13,750,000.00, but are subject to change as final costs come in. Your favorable consideration of this Resolution will be appreciated. Respectfully submitted, Referred to City Council for Consideration: 11-"---F),x. 1.1t01311 6,01/..-- .,4 k/z3r t c James R. Thele Date Mayor's Office Date Planning Director bOA"' Approved: / / "ZT -IC" tep n Curtrtiss ate Ro ert G. Stubbe, .E. Date Finance Director Pu lic Works Director 2135 dlh Notice of Publication: February 5 and February 12, 2014 Public Hearing: February 24, 2015 E-XH3iT 'WI Pcye ii 2 C. 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RoCD11 m Uxq m:. mzm m�ion_ixosrn0 ac �� H lg€ CCQzz CD (D A f [ n zc� o .. 1 � ti r0 �mrnN 0 - ad <. EXHIBIT "B" BLACKSTONE MIXED-USE TIF REDEVELOPMENT PROJECT PLAN 3824 FARNAM STREET AND 401 SOUTH 41ST STREETS FEBRUARY 2015 OMAHA,NEb iair O�,4TED FEW'. PLANNING.OMAHA Jean Stothert, Mayor City of Omaha James Thele, Director Planning Department Omaha/Douglas Civic Center 1819 Farnam Street, Ste. 1111 Omaha, Nebraska 68183 INTER-OFFICE COMMUNICATION City of Omaha,Nebraska Planning Department TO: Chairman and Members of the Planning Board FROM: James Thele,Planning Director DATE: December 11,2014 SUBJECT: Blackstone Mixed-Use TIF REDEVELOPMENT PROJECT PLAN 3824 Farnam Street and 401 South 41st Street Case#C3-15-003 Project Summary This redevelopment project plan continues the revitalization taking place in the Blackstone Neighborhood and business district, and supports goals envisioned in the Destination Midtown Plan. It proposes adding 90 new construction, market-rate apartments and approximately 4,000 square feet of commercial space. Previous TIF projects in the area have experienced quick absorption of available commercial spaces. Much of the revitalization has taken place along Farnam Street,the major corridor of this business district and one of the major corridors within Midtown. The excitement spurred by various announcements about developments at UNMC, the proximity to Midtown Crossing, and the potential of a street car/urban circulator and bus rapid transit system along Farnam support redevelopment efforts in this area. Although recent redevelopment is bringing this area back to life, there are yet opportunities due to older structures/properties that need to be re-purposed and/or properties with code violations that need proper re-investment. Project Description This redevelopment project plan comprises two development sites within approximately a three block radius of each other. The first site is located at 3824 Farnam Street proposes to demolish the existing site- an underutilized gas station, then clear and grade the site in preparation for a new 4-5 story mixed-use structure; 1-2 stories along Farnam Street. The new structure proposes 51 market-rate apartment units - studios and 1 bedrooms, and a couple of 2 bedrooms. Also contemplated is 4,000 square feet of commercial space. The second site is located at 401 South 41st Street, a residential structure. This property has code violations, as do a handful of properties surrounding it. Proposed for this site is the demolition of the existing structure, and the new construction of a 4-5 story, 39 market-rate apartment structure. The unit mix proposes mostly 1 bedrooms, and a few studios and 2 bedrooms. A majority of the parking will be provided on site underneath the structure at each redevelopment site. Each project proposes some additional on-street parking available to the public. The project is anticipated to be completed in the spring of 2016. No Building Permit will be issued based on a site plan that does not comply with the provisions of the Zoning Ordinance. The project site is located within a Community Redevelopment Area,meets the requirements of Nebraska Community Development Law and qualifies for the submission of an application for the utilization of Tax Increment Financing to cover costs associated with project development as submitted for approval BH through the Tax Increment Financing process. The project is or will be in compliance with the Master Plan,appropriate Ordinances and development regulations of the City. DEPARTMENT RECOMMENDATION:Approval. ATTACHMENTS General Vicinity Map Project Plan BH 0 O I M _ iI 7' cd R3 M _ r, cis and 'y-48£ S L S 3 _, • I..` l. 3 > 2•, •• �, ." ._ a.' •_ 0 i 011114 d+ I ...I .F./ i :.. ••I ill ,., E1■M l ;_ 0 : q, .Z:-) ice-, --- 1 ■ Cip 1 t 'Fkl. iaN h rt . O. C. cct ill 4-, 1S 410 71-N ;S y01, S .. T .: I a, CO = E. l ea b -.1- C CA f , _. b.. '` i�J Cr-) _ .g, .....,y ,1 — L.L. , a, dill "-' , a - � 'fix... co . t eA4/ F - aT -�' T d Layers ° i ,_ �,. \/+ cn U� ,gli F.` W ' CO II i. Z * eel ._ ... ..y,_�._„ cn S 38th Ave A V e r 'II.I r„ ti I 4. tL1 , ._ • y VI s�f Yipr .. s.a oil r.r�s.it am �, a I Ir *i • a +J ... a,—: - ,.... ti Is-) S 38th t l ' h 5t [N O O r.+ .4.,. Airy r q r T t y so e 8 " x ` .h'ttf�"'Y . .•yam._ . rry.-- ' dr ,,,.... 7 I sylii:, O , 1 . or 1; ' r ' - i..„.... ,.... " f .....r, 40. __(,0(),) _, , 4.. 3824 Farnam Street Site 7- z _ _ r ....q._ ,may ao m._. ` '�" -�, �� ' .w o_ litiktsfoo ;ass r' " 1 �t w �d A l l l�,., , "� \'u ' f�r 401 South 4 1st Street Site = ..t: Layers lz) ,..s... ----. c CA . , 9 10:"S'4 _ _ . .... ._ _ . .......„.- (I) S 4ist St 4,.. ....... co —I _ 1 1 ..,. = ' IIISI -- - , CU - I .... -• -i A irlD _. 141‹.. r..... 7 , 1 * ' ..,,, ' - - 1 • . • ,...-,- 1 1 1 I •-•, ...,. ..,,,. -AV- . r_u t•-) Crq /..., t\.) 2 CASE: C3-15-003 APPLICANT: Planning Department on behalf of the City of Omaha REQUEST: Approval of the BLACKSTONE MIXED-USE TIF REDEVELOPMENT PROJECT PLAN LOCATION: 3824 Farnam Street and 401 South 41st Street SUBJECT AREA IS SHADED - JANUARY 2015 jLif. mg.* ■ wRl'i ■ I CCU 0) -ACI-2( GC-ACI- ( 0t CC-ACI-2(5C) 0- CI-2(50) -ACI-2(5 ) ti Dodge_.._. �._�_��____ _.___ -11Miiiiik_i) GO-ACI-2 0,) GC-ACI-2(50) c -ACI-2(-+ GC-ACI- ( 0 . -ACI-2(1i) mg millim MI III , � :•' ACI-1(P , iii�� ) - �- -ACI-1(- )`; 0-ACI-1 L) : GC-ACI-1(PL) G -ACI-1(-1 i -ACM(' )jMil , MINIM i R L) (1)- PM = I -1 PL -ACI-1(PL) -CI-I(`L (1? NBD- AIM 4, I lir 1011111111. G�-ACI-1( - : am., GC Cl- PLC 1111 ,.. .... .. ---Harney St ..... {, , MI ) Go-A elleil -1113: ) , unii-ACI-1 1111111111 r■ ) GC-ACI-1( R7-ACI-1(PL) R7-ACI-1(PL) roam .W..�_. ...._ Duey Ave • ;■ • ( -.+-ACI-1 P ) ■ Cl- P 6-ACI-1(P )ACI le R7-ACI-1(PL) • 1 ( ) .. ■ •• 1 • ' r -1(P ) • I I R'-ACI-1(P ) N PI 0 115 230 460 690 920 Feet INTER-OFFICE COMMUNICATION Date: December 5, 2014 To: TIF Committee: James Thele, Stephen Curtiss, AL Herink, Paul Kratz, Robert Stubbe, Todd Pfitzer, Cassie Seagren, Gail Braun From: Bridget A. Hadley - City Planning Applicant: City of Omaha Planning Department Project Name: Blackstone Mixed-Use TIF Redevelopment Project Plan Location: 3824 Farnam Street and 401 South 41st Street Project Summary This redevelopment project plan continues the revitalization taking place in the Blackstone Neighborhood and business district, and supports goals envisioned in the Destination Midtown Plan. It proposes adding 90 new construction, market-rate apartments and approximately 4,000 square feet of commercial space. Previous TIF projects in the area have experienced quick absorption of available commercial spaces. Much of the revitalization has taken place along Farnam Street, the major corridor of this business district and one of the major corridors within Midtown. The excitement spurred by various announcements about developments at UNMC,the proximity to Midtown Crossing, and the potential of a street car/urban circulator and bus rapid transit system along Farnam support redevelopment efforts in this area. Although recent redevelopment is bringing this area back to life, there are yet opportunities due to older structures/properties that need to be re-purposed and/or properties with code violations that need proper re-investment. Project Description This redevelopment project plan comprises two development sites within approximately a three block radius of each other. The first site is located at 3824 Farnam Street proposes to demolish the existing site — an underutilized gas station, then clear and grade the site in preparation for a new 4-5 story mixed-use structure; 1-2 stories along Farnam Street. The new structure proposes 51 market-rate apartment units — studios and 1 bedrooms, and a couple of 2 bedrooms. Also contemplated is 4,000 square feet of commercial space. The second site is located at 401 South 41st Street, a residential structure. This property has code violations, as do a handful of properties surrounding it. Proposed for this site is the demolition of the existing structure, and the new construction of a 4-5 story, 39 market-rate apartment structure. The unit mix proposes mostly 1 bedrooms, and a few studios and 2 bedrooms. A majority of the parking will be provided on site underneath the structure at each redevelopment site. Each project proposes some additional on-street parking available to the public. The project is anticipated to be completed in the spring of 2016. Project Finance Summary Sources & Uses xxx Owner Equity $ 2,055,017.00 Other Financing—Bank of Bennington $10,394,983.00 Tax Increment Financing—Bank of Bennington, 5% $ 1,300,000.00 Total Sources of Funds $13,750,000.00 ��{{ ,sE£a d89t &g E6st F z ,c dayy tra d t 3¢ &g�at a tat y Ej1 i a g -- g ¢e r tE JI Jd . *Ii t¢ta i j ,('i 8 P�€ OMAIII A ° E ,1"11aBp�C.ri;3..,.,,E�➢ P k T aars„ '�a� a�€<,,ern, a,...rt.. .,�IS�1at2t,,,., 'd�a,€a%a$��,s.,.� �aktaE�,��},. ,.,,r E a.��:. ,,a.,E��=:,. ¢,€�€sr-� aE Ff..rJa. F',3 o- �l ., �t Purchase Price $ 580,000.00 Construction Contract $10,418, 345.00 Architect Fee $ 632,991.00 Environmental + Geotech, Grading & Dirt Work $ 240,000.00 Legal, Broker, Dev Fee, Soft Costs& Int. Cost $ 1,091,059.00 Other Costs: TIF Fees, Lease Up, T&I, Permit, Signage & Contingency $ 787,605.00 Total Uses of Funds $13,750,000.00 Land Use and Zoning Parcel 1 — 3824 Farnam Street is currently an under-utilized gas service station, and is proposed to be demolished and the site transformed into a new mixed-use 4-5 story structure with residential apartments on the top floors, 4,000 square feet of ground floor commercial space and parking. The building proposes 1-2 stories along Farnam Street and 4-5 stories on the north elevation. Parcel 2 — 401 South 41St Street is currently used as a multifamily structure, and is proposed to be demolished and the site transformed into a 4-5 story structure with residential apartments on the top floors and parking below. Parcels 1 and 2 are presently zoned general commercial (GC) and R7-ACI-1(PL), respectively. The properties will be rezoned to NBD and required approval of rezoning is anticipated to occur in January 2015. Utilities and Public Improvements Basic utilities (electrical, water, sewer) exist at the site. Public improvements such as the following will be constructed along with the project: 1. Parking 2. Sidewalks and Curbs 3. Streetscapes with Landscaping 4. Decorative Lighting Transportation No transportation issues at this time. The Farnam Street 2-way conversion between 36t"-42nd Streets was completed in November 2014. Cost Benefit Analysis (from the TIF Application) 1. Tax shifts resulting from the approval of the use offunds pursuant to section 18-2147 (of the Community Development Law); The use of Tax Increment Financing for this project will not result in the loss of tax revenue for Omaha. The current level of taxes will continue to flow to the current taxing entities and the only increase value of revenues resulting from the improvements will be applied to the eligible cost. 2. Public infrastructure and community public service needs impacts and local tax impacts arising from projects receiving incentives: No community/public service needs will be generated as a result of this project. The proposed TIF will be used to offset site acquisition, site development, renovation and public improvement cost, which are eligible expenses. The development of the dilapidated site will enhance business development in the area and provide needed housing and storage services to the local community. 3. Impacts on employers and employees of firms locating or expanding within the boundaries of the area of the redevelopment project; This development will impact other businesses in the area as it increases traffic and availability of retail, dining and housing services in the surrounding community. The new commercial facilities will produce numerous employment opportunities. 4. Impacts on employers and employees within the city or village and the immediate area that are located outside of the boundaries of the area of the redevelopment project; and, There will be no negative impacts for employers and employees outside of the immediate project area. Quality housing benefits neighborhoods which then benefit surrounding neighborhoods. 5. Any other impacts determined by the authority to be relevant to the consideration of costs and benefits arising from the redevelopment project. The long-term benefit resulting from an increase in the tax base from the development is another valid reason to approve TIF assistance for this project. TIF Justification The project site is located within a Community Redevelopment Area, meets the requirements of Nebraska Community Development Law and qualifies for the submission of an application for the utilization of Tax Increment Financing to cover costs associated with project development as submitted for approval through the Tax Increment Financing process. The project is/or will be in compliance with the Master Plan, appropriate Ordinances and development regulations of the City. The redevelopment of this site will allow for the continued revitalization of the entire Blackstone District. It will help provide much needed housing for anticipated UNMC employees. It will also enhance the density in the area, which would support ridership for future mass transit efforts. Ultimately,this project plan will enhance the tax base for various taxing jurisdictions. TIF will be used to offset TIF eligible costs such as acquisition, architectural and engineering fees, site work and demolition costs, and all public improvements associated with this project. The total estimated project costs are $13,750,000.00. TIF eligible costs are as follows: Purchase Price $ 580,000.00 Architect Fee $ 632,991.00 Environmental + Geotech, Grading & Dirtwork $ 240,000.00 Geo Piers, Site Demolition& Clean Up, Erosion Control $ 375,000.00 Itemized Public Improvements $ 167,500.00 Total $1,995,491.00 TIF Fees $ 15,500.00 Total TIF Eligible $2,010,991.00 The TIF is 9% of the total project costs. Request: The TIF request is for up to $1,300,000.00. Using the interest rate of 5.0%, the current levy rate of 2.18859% and other assumptions of the TIF calculation spreadsheet supports the TIF request; the TIF should payoff in much less than 15 years based on the TIF calculation spreadsheet. See attached TIF calculation spreadsheet(s). TIF Fee Schedule: $500.00 application fee was paid; the processing fee of $3,000.00 will be collected; $12,000.00 in administrative fees will be billed. Total fees will be $15,500.00. Recommendation: Approval ATTACHMENTS TIF Application TIF Calculation Spreadsheet Al LA 0l Cr N N Ol IA..r O."I co.,-I m 0 Ill N O CO 0..M N l0 Al•v 0 0 '�+ M 0 O O."I v Ol r v 01 O Ol lA N N M 111 IA O M ti l0 r M l0 lA O)Ol.O IA.. ,�,O ' to m..Olm N Vl v.i Olm MOD N mM 0N0O Mm0ON M v NMv v VI V MNMmmvMO -4 -) NO W NOM.i 0 Ill l CO M M M M M M M O M N N N N N N N N N N.i.-I..-I .-1.i C CD O C.1 4)00)0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 CD 0 N M v v Ol w 0 0 m N O1 �" CO M M M CO = CO O U)n ",. V Ol 1 4U cam. N ,N' Y 0J ; an CO C.A N a C '` v u II w - a� r -) N U. 0. c, o 00Mm Nm N .N 01 N -1 mm.•1 Ol V-MN Ol C 0 Vl000OO > M OO.-i Ill0m Ol v01llt0O N..M MO OI00OONM m Mt.l vi/l in an 0! 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W N u 3824 FARNAM 401 S 41st IN TH&E BLACKSTONE DISTRICT � s ;. ii Mixed-Use Development Tax Increment Financing November 2014 1 3824 Farnam & 401 S 41st Omaha, Nebraska Project Directory Owner/Developer: Owner: 3824 Farnam,LLC PO Box 31202 Omaha,NE 68131 Developer: Greenslate Development 450 Regency Parkway, Suite 220 Omaha,NE 68114 Contact: Jay Lund (402)681-6701 Matt Dwyer (402)320-7793 Clarity Development Company, LLC 105 N. 31st Avenue,#207 Omaha,NE 68131 Tom McLeay (402)516-8881 Mike Peter (402) 525-7626 Architect Alley Poyner Architects 1516 Cuming Street Omaha,NE 68102 Contact: Michael Alley (402)341-1544 2 Biography of Project Team Greenslate Development The project principals of Greenslate Development,Matt Dwyer and Jay Lund,have been developing the Blackstone Corridor since 2012. Both have been directly involved in the investment of$10MM. The team estimates$12MM of capital investment in the area has occurred over the past 2 years resulting in 14 new businesses. Almost every building on the corridor has been developed or is slated for development. November 2014,Farnam Street was reconfigured to a two-way and included the addition of new lighting and a landscaping plan. The end result of all slated development and city improvements will be a contusive,walkable high density business district. Clarity Development Clarity Development, of which members Tom McLeay and Mike Peter have been involved in the development of over$100 million in multifamily real estate nationwide,bring depth and experience from project inception to completion and stabilization. Alley Poyner Macchietto Architecture Alley Poyner is the premier architectural firm in Omaha for creative projects. As historical and new construction experts,the firm has the capacity to deliver a contemporary product while maintaining the class and character of the neighborhood.The firm has worked on significant projects including the Omaha Building,the Lied Lodge and Conference Center,and the Slowdown/Film Streams Complex. 3 I. NARRATIVE 4..Description of project The Project being co-developed by Greenslate Development and Clarity Development will locate 91 market-rate new construction Class A apartments and approximately 4,000 square ft. of commercial space in the heart of the Midtown Omaha. The Project will give its residents walking access to the major drivers of Midtown Omaha's growth,the University of Nebraska Medical Center, Mutual of Omaha/Midtown Crossing,the Kiewit Companies, and the rapidly expanding commercial development in the Blackstone District. These brand-new residential units are uniquely positioned for rapid lease-up and future revenue growth. In particular,the Project will appeal to the thousands of UNMC employees and students who will, for the first time in several decades, have a new construction apartment option within easy walking distance of their employment and/or classes. The already rapid lease-up of the Blackstone District commercial spaces has accelerated with the huge success of its initial tenants and in anticipation of the Farnam Street change to become a two-way street from Midtown Crossing through the Blackstone District to the doorstep of the Nebraska Medical Center. The following are the addresses and legal descriptions of the parcels compromising the Project Site.The parcels are located within blocks of each other. 1) Parcel 1: Address: 3824 Farnam Street,Omaha,NE 68131 Legal description:JEROME PARK LOT 17 BLOCK 9 LOTS 15 TO& INC 2) Parcel 2: Address:401 S.41st Street,Omaha,NE 68131 Legal description: HIGHLAND PLACE LOT 16 BLOCK 16 7 1/2 FT ADJ ON E&N 42 FT LT 15 &ALL JI. Land Use Plan The applicant will develop 52 residential units and 4,000 square feet of commercial space on Parcel 1,and 39 residential units on Parcel 2. C. Zoning- Current and Proposed Parcel 1 and Parcel 2 are presently zoned general commercial(GC)and R7-ACI-1(PL), respectively. The properties will be rezoned to NBD and required approval of rezoning is anticipated to occur in January 2015. C. Public Improvements The following public improvements will be constructed along with the project: 1. Parking 2. Sidewalks and Curbs 3. Streetscapes with Landscaping 4. Decorative Lighting D. Sources& Uses.Construction Budget.Pro Forma.and Project Timeline The Sources&Uses,Construction Budget,and Pro Forma are enclosed. Project timeline: 1. Entitlements:The project will be fully entitled by January 2015. 2. Financial closing: The project is anticipated to close in April 2015 3. Construction period: The construction period is anticipated to be 12 months. 4 C.A statement and demonstration that the project would not proceed without the use of TIF; it should be in the form of an ROI analysis with and without TIF Total construction cost is estimated to be approximately$10,418,345 and the total project cost is $13,750,000.00. Without Tax Increment Financing("TIF"),this project cannot move forward. The TIF Request is$1,300,000.00. The TIF requested represents approximately 9.45%of the total project cost. The remaining cost is funded though equity and conventional debt. The TIF and project costs are subject to adjustments based on final estimates. A private financially motivated investment must meet the risk and reward standards of other like investments. If an alternative investment exists with less risk and a higher reward, a prudent investor must invest in the alternative investment. As Demonstrated in the"ROI"Analysis above, the project ROI without TIF would be below 4%and therefore, this project would not proceed without TIF. An investor would be much better off investing in a different asset class such as Treasury Bills. Furthermore,the project without TIF would require a 63% increase in equity due from the owner further encumbering the project owner. 5 D.Evaluation Criteria: Mandatory Criteria Mandatory Criteria#1: The project is located within an area that is eligible for designation as a community redevelopment area. Community Development Law 18-2103(20)states that"community redevelopment are"means a"substandard and blighted area which the committee redevelopment authority designates as appropriate for a renewal project." The Blackstone project site is eligible for designation as a community redevelopment area because it satisfies the Community Development Law's definitions of a"substandard area"and"blighted area." First,the project area qualifies as a"substandard area"under 18-2103 (10)because the combination of the high density of population and the dilapidation, deterioration,age or obsolescence, of the majority of the buildings in the area is conducive to crime and ill health, and is detrimental to the public safety and welfare. Second,the project area qualifies as a"blighted area"because it satisfies the requirements of both 18-2103(11)(a)and(b). The project area satisfies subsection(a)because the combination of certain factors,specifically, the presence of a substantial number of deteriorating structures, deterioration of site and other improvements in nearby commercial lots,and diversity of ownership,substantially impairs the sound growth of the community and retards the provision of quality housing accommodations. The project area satisfies subsection(b)because the average age of the residential units in the area is at least forty years. 3824 Farnam itself is a dilapidated former Gas Station. To the south are homes(3809& 3815 Farnam)are described the Douglas County Assessor as in"Poor"condition. Several homes and buildings within a one block radius have code violations. .. � I T .C. ♦.r a% CO ,, m m m U'1 un km ME lull&. :g' r Farnam St .. Farn 4., VI a% _ • Harney St www.dogis.org-Code Enforcement View November 2014 6 401 S 41st is a dilapidated house which was converted into several apartment units. The property has code violation and many of the surrounding structures also have violations. F a r n a m St ' Harney St ~ 4 4.4 1 5 � 0 ra am % y Dewey via e y A v e Mandatory Criteria#2: The use of Tax Increment Financing will not result in a loss of preexisting tax revenues to the city and other taxing jurisdictions. All of the revenue which will be utilized to pay the Tax Increment Financing Note will come from additional valuation on the site resulting from the improvements to be constructed on the site. The tax received from the increased taxable valuations will be more than sufficient to support the Tax Increment Financing and will not result in a loss of preexisting tax revenues. Mandatory Criteria#3: As set forth above,the project is not economically feasible without the use of Tax Increment Financing. TIF provides a necessary gap financing that is critical to the capital stack due to the considerable cost of the development given the "Class A" facility that the developer wishes to create and the lack of alternate subsidies for market rate residential developments. Furthermore,based upon the projection set forth above, it is reasonable to conclude that this project would not occur in this area without TIF, given the construction costs involved. Mandatory Criteria#4: The project furthers the objective of the City's Master Plan and Destination Midtown by providing housing,furthering job creation, and contributing to business growth and expansion. 7 �.�,��,����.,a�_r U.:,em�_ xo,���,,���._.,r. ,�..��a.. a,oa�.� � �,w���.�n E. Cost-Benefit Analysis 1. Tax shifts resulting from the approval of the use of funds pursuant to section 18-2147(of the Community Development Law); The use of Tax Increment Financing for this project will not result in the loss of tax revenue for Omaha. The current level of taxes will continue to flow to the current taxing entities and the only increase value of revenues resulting from the improvements will be applied to the eligible cost. 2. Public infrastructure and community public service needs impacts and local tax impacts arising from projects receiving incentives: No community/public service needs will be generated as a result of this project. The proposed TIF will be used to offset site acquisition, site development,renovation and public improvement cost,which are eligible expenses. The development of the dilapidated site will enhance business development in the area and provide needed housing and storage services to the local community. 3. Impacts on employers and employees of firms locating or expanding within the boundaries of the area of the redevelopment project; This development will impact other businesses in the area as it increases traffic and availability of retail,dining and housing services in the surrounding community. The new commercial facilities will produce numerous employment opportunities. 4. Impacts on employers and employees within the city or village and the immediate area that are located outside of the boundaries of the area of the redevelopment project; and, There will be no negative impacts for employers and employees outside of the immediate project area. Quality housing benefits neighborhoods which then benefit surrounding neighborhoods. 5.Any other impacts determined by the authority to be relevant to the consideration of costs and benefits arising from the redevelopment project. The long-term benefit resulting from an increase in the tax base from the development is another valid reason to approve TIF assistance for this project. 8 F.Employment Information Permanent Jobs(FTE)to be CREATED 2 Permanent Jobs(FTE)to be RETAINED 0 Permanent Jobs(FTE)to be RELOCATED 0 TOTAL 2 Anticipated Annual Payroll $72,800 Estimated number of construction jobs created as a result of this project 60 G.Residential Unit Mix 'Address Unit Type Unit Count 3824 Farnam Studio 26 1 bedroom 24 2 bedroom 2 401 S. 41st St. Studio 8 1 bedroom 23 2 bedroom 8 H.Attachments A. Site Plans and Renderings B. Pro Forma,Sources& Uses and Construction Budget C. Survey D. Documentation of Site Control E. Preliminary Commitment Letters for Financing F. Organizational Documents G. Reports and Studies H. Financial Statement 9 A. Site Plans& Renderings 3861 Ave&Farnam Street Rendering x � 44.':- 5 '` PO° ,.,, j . ,(3 '.ltii; J V'AJ7•J{.,JH i4fJ;..17.' 4aseme.............. .............. Yil.i.. 10 (_4 '44 a * 4 : eta * 4 4 • ° A 1 I 38th Ave&Farnam Street Site Plan EXISTING ALLEY €2 o 0 0 y 19 SPACES 8,214 G5F • 7 111 f-- / /. IIIIYINH ? _ , / ram,, *Alp& `at , , I _ Him 1 I !III IIIIII 1 II- W 4 COMMERCIAL CO A 3.946 SF 4,320 GSF 137 4 _ u Q.,. 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III NI M MI n>7 0 ^ _o oa =its R_ 16 m - z N c Fri fll ■ ■rn ■ ■ a E I mo►E co ■ ■ ■ ■ g ■ ■ ■ ■ Z 0 ■ ■ ■ ■ EINEM II rn rn I° rn m C _ D 0 II Z 0 • • to o N N CJ1 N m6 1101; 17 41 St St and Harney Site Plan rn 6 1 -7//7/--,,fty. -- , _0-0,1,-#,w1-- 0/ / , ,, I__ ,4 UJ ( 'T`. p SPACES raj 8.434 GSF p 7 o o F f Y r 7 i 1. 10 — 01- _ IMiiii11u • i[rtr IIIIIIIIIIIII Illlill ' > h. trash I — rrn I [ I I r 122' 2BR 1 Aft 1 BR I BR ____ 400 SF 710 5F 710 SF 65°1 SF f Lobby 1,, k ;$SF I n LN I r A f 2 BR S 1 ERST I BR (_____ 700$F qQp SF 71Q$F $QQ$F AN 5F I I 1 II !# , _ _ . .I Cm creel . [ ,4; trash 1 18 m A m - D �- z O n Fa = I m r o ER([7 _ —. a IN lig in re a 0 0 AN r rn O ■ ■ - - - - N 4 V N � _.. ... Q N `p II s^ o; F'a7z Eg�dX 19 M m •)-1 Q 0 r - C ci a m 0 irn 3 § co, 0 : EIDDD z ca • E71 - - - E r n n r n < I 1 I • (.„ • — 3 -75 Tf",4 3E,:r7s 20 m m a o Cmn z Q —' c" m = r a CD -a '••< 0 cn z m1(� CD CmDD ■ ■ . ❑ ■ •''''. . 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Pro Forma,Sources& Uses,and Construction Budget Perm Loan Resi 9,724,991 Perm Loan Corn 669,992 TIF 1,300,000 Equity 2,055,017 Total Sources 13,750,000 Uses Purchase Price 580,000 Closing Costs;Originations&Reports 179,250 TIF Fees 24,000 T&I During Cons 20,000 Lease Up Expense 75,000 Construction Contract 10,418,345 TIF Fees 30,000 Architect Fee 632,991 Environmental+ Geotedh 80,000 Grading&Dirtwork 160,000 Permit 20,000 Signage 36,000 Construction Contract Contingency 403,355 Legal;Broker Fees;Dev Fee;Soft Costs;Contingency& INT Expense 1,091,059 Total Uses 13,750,000 Construction Contract Not TIF Eligible Construction Contract 9,612,345 GeoPiers 252,000 Site Demolition&Clean Up 93,000 Site Utilities 230,000 Exterior Paving 141,000 Landscaping 60,000 Erosion Control 30,000 Total Construction Contract 10,418,345 Itemized Public Improvements(In Line Items Above) Site Utilities -Decorative Lighting 40,000 Exterior Paving-Sidewalks and Curbs 45,000 Exterior Paving-Parking 52,500 Landscaping-Streetscapes and Landscaping ROW 30,000 Total Itemized Pubic Improvements 167,500 23 PRO FORMA Underwrite 3 Year Projected Stabilized Pro Forma PUPA / °A Pro Forma 1 2 3 GPR 1,117,375 1,145,310 1,173,942 1,203,291 Vacancy& Other Losses 5.00% (55,869) (57,265) (58,697) (60,165) Other Losses 2.00% (22,348) (22,906) (23,479) (24,066) Commercial Income 82,837 84,533 86,271 88,052 Parking Revenue 48,000 49,200 50,430 51,691 Other Revenue 45,025 46,151 47,304 48,487 Total Revenue 1,215,021 1,245,021 1,275,772 1,307,291 Salaries 72,800 74,620 76,486 78,398 Advertising 18,200 18,655 19,121 19,599 Administrative 6,825 6,996 7,171 7,350 Utilities 15,925 16,323 16,731 17,149 R&M 42,900 43,973 45,072 46,199 PM Fee 45,287 46,420 47,580 48,770 Com OPEX 15,000 15,375 15,759 16,153 Debt Service TIF 151,442 151,442 151,442 151,442 Fixed Taxes 9,456 9,692 9,692 9,692 Insurance 31,850 32,646 33,462 34,299 RR/Caps 23,725 24,318 24,926 25,549 Total OPEX 433,410 440,459 447,442 454,600 Net Operating Income 781,611 804,562 828,330 852,691 Debt Service Perm 648,156 648,156 650,428 650,428 CF 133,455 156,406 177,902 202,264 24 CA v1 71 c 7 °) COO C.J up C71 A 4.co W NN r - 00(0 CD so 00 -.4-4 en cn LA A (aca N Nam- 0 1 St D E ID m bwoinoinoirocnoino�cia+c%noinoubinoinornain Y 71 m .4 CO < 8r 1 3 CO3 i_ a :4:4 V 4 4 V 4 4 4 V V 4 4 V V V V 4-4�i V V 4 V 4 4'4 m 1 W N A A A A A A A A A A A 4, P A A A A A A r A A A P A A a a r a c t -13 C.CA O)W CA 0)Ol C.G.CO O7 Ca OCAs O7 co co GP CA O)O)W O) CM 07 CO GA NNNN O ® 3 �i N NNNNNNNNNN AiNNNN h.NNNNN NNN h)4f�]VG�+V�1 4 9ka@ 3. 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Documentation of Ownership or Site Control 3824 Farnam St is owned by 3824 Farnam,LLC. 3824 Farnam,LLC has 401 S 415t under contract to purchase from Red Cactus,LLC. 3824 Farnam, LLC is privately held however,we agree to permit access to the Purchase Agreement. 27 11/11/22014 Dada;County Account',form axon Douglas County,Nebraska Property Record-R1423420000 Print Report Information is valid as of 2014-11-07 View Interactive GIS Map Treasurer's Tax Report New Feature -►- + Subdivision Sales Search Owner 3824 FARNAM LLC P 0 BOX 31202 OMAHA NE 68131-0000 Property Information Key Number: 2342 0000 14 Account Type: Commercial Parcel Number. 1423420000 Parcel Address: 3824 FARNAM ST OMAHA NE 68131-0000 Legal Description: JEROME PARK LOT 17 BLOCK 9 LOTS 15 TO&INC Value Information Land improvement Total 2014 $98,400.00 $116,500.00 $214,900.00 2013 $98,400.00 $116,500.00 $214,900.00 2012 $98,400.00 $116,500.00 $214,900.00 2011 $98,400.00 $116,500.00 $214,900.00 2010 $98,400.00 $116,500.00 $214,900.00 2009 $98,400.00 $62,400,00 $160,800.00 Sales Information Sales Date: 2014 09-28 Deed Type: WO Book:12014 Pape: 076040 Price: $260,000.00 Grantor: STOLL JAMES H Grantee: 3824 FARNAM LLC Valid/Invalid: Valid Exclusion Reason: Land Information Acres SF Units Depth Width Vacant 0.43 18744.0 1.0 0.0 0.0 No Improvement Information 28 11/11/2014 Douce CarMy Account Information Douglas County,Nebraska Property Record-R1310580000 print Report Information is valid as of 2014-11.07 View Interactive GIS Man Treasurer's Tax Report New Feature i-Ir-0 Subdivision Sales Search Owner RED CACTUS LLC 10552 MULLEN RD OMAHA NE 68124-0000 Property Information Key Number: 1058 0000 13 Account Type: Multiple Comm Parcel?lumber: 1310580000 Parcel Address: 401 S 41 ST OMAHA NE 68131-0000 Legal Description: HIGHLAND PLACE LOT 16 BLOCK 16 7 112 FT ADJ ON E&N 42 FT LT 15&ALL Value Information Land Improvement Total 2014 $17,400.00 $195,300.00 $212,700.00 2013 $17,400.00 $195,300.00 $212,700.00 2012 $17,400,00 $195,300.00 $212,700.00 2011 $17,400.00 $232,400.00 $249.800.00 2010 $17,400.00 $232,400,00 $249,800.00 2009 $17,400.00 $232,400.00 $249,800.00 Show All Transactions Land Information Acres SF Units Depth Width Vacant 0.26 11616.0 1.0 0.0 0.0 No Improvement Information Building 1 29 COMMERCIAL PURCHASE AGREEMENT THIS COMMERCIAL PURCHASE AGREEMENT ("Agreement") is entered into as of November 7,2014 ("the Effective Date")by and between Red Cactus,LLC, and Nebraska limited liability company and 3824 Farnam, LLC, a Nebraska limited liability company, or its assignee ("Buyer"). NOW,THEREFORE WITNESSETH: That for and in consideration of mutual covenants and agreements hereinafter set forth,Seller and Buyer hereby agree as follows: RECITALS R 1. Seller is the owner of that real property consisting of 5 apartment units with a commonly known address of'40I South 4 Street,Omaha,Nebraska and legally described as Lot 16,Black 16,Highland Park,an addition to the City of Omaha,Douglas County Nebraska(the"Property"). R-2. Buyer has agreed to pay to Seller the Purchase Price(as hereinafter defined)for the Property,and Seller has agreed to sell the Property to Buyer. R-3. Buyer intends to make investigations regarding the Property, and-Buyer's intended uses of the Property,as Buyer deems necessary and desirable, L Purchase Price. Buyer agrees to pay the sum of S230,000.00. Within 10 business days following the Effective Date,the sum of S5,000.00,as earnest money deposit("Deposit")shall delivered to Seller. The balance of the Purchase Price to be paid to Seller at Closing, 2. Due Diligence Buyer shall have until Closing(as defined below)to make a complete inspection of the Property, including all without limitation matters relating to property condition, environmental analysis, title and survey (the "Inspection Period"). Prior to Closing, Buyer and its authorized agents may enter upon the Property for any lawful purpose, including to perform whatever inspections Buyer deems appropriate including, without limitation, tests, borings, surveys, studies, investigations and interviews of persons familiar with the Property and tests of state-Wm,wells,septic tanks, underground storage tanks, soils, geologic hazards, utility lines and systems end environmental hazards(the"Inspections"). Seller shall provide any documents in its possession related to the Property as requested by Buyer. In the event Buyer,in Buyer's sole discretion,finds any condition of the Property to be unacceptable,Buyer may notify Seller in writing on or before the expiration of the Inspection Period and elect to terminate this Agreement. Upon such termination,this Agreement shall be null and void. If Buyer terminates this Agreement pursuant to this section during the Inspection Period,Seller shall return the Deposit to Buyer. 3. Taxes. All real estate taxes which become delinquent in the year in which Closing takes place shall he treated as though all are current taxes,and those taxes shall be prorated as of the date of closing,and all the prior years'taxes,interest,and other charges,if any,will be paid by Seller. 30 10. Notices. Ali notices,demands,requests and other communications required pursuant to the provisions of this Agreement("Notice")shall be sent to: If to Seller: If to Buyer: Red Cactus,LLC 3824 Fatnam,LLC 10552 Mullen Road 8712 West Dodge Rd.,Suite 400 Omaha,NE 68124 Omaha,NE 68114 Attn:Thomas McLeay 11, Entirety and Amendments. This Agreement embodies the entire Agreement between the parties and supersedes all prior Agreements and understandings,if any,relating to the Property,and may be amended or supplemented only by an instrument in writing executed by the party against whom enforcement is sought. 12. Default and Remedies, If Buyer is in default hereunder then Seller shall have the right, as its sole and exclusive remedy,to terminate this Agreement by giving Buyer written notice and retain the Deposit. If Seller is in default hereunder Buyer shall be entitled,as its exclusive remedy,to elect either(a)to terminate this Agreement by giving Seller written notice thereof and, upon receipt of such notice the Seller shall deliver the Deposit to Buyer;or(b)to enforce specific performance of Seller's obligations under this Agreement. 13. Assessments/Fines, Seller agrees to pay any fines,assessments for public improvements previously constructed, or ordered or required to be constructed by the public authority, but not yet assessed. Seller has no actual knowledge of any public improvements contemplated,ordered or required to be constructed,but not yet constructed. NOW WHEREFORE,the parties hereto have executed this Agreement as of the Effective Date. SELLER: Red Cactus,LLC By: /17;06,01, Matthew 7.Mullen, agar BUYER: 3824 Fern=LLC, a Nebraska limited nab' mpany By. Matthew Authorized Representative 31 E. Preliminary Commitment Letters for Financing MAIN BANK 15 y-� 0� Box 276 I, J{, j�- 12212 North 156th Street Bennington,NE 66007 BENNINGTON MAPLE CH 15645 Spaulding Street 402-238-2245 • Fax:402-238-2914• www.bankbenn.com Omaha,NE 6811668116 ME Mr.Thomas H.McLeay 3824 Farnam,LLC 8712 West Dodge Rd. Suite 400 Omaha,Ne 68114 Dear Tom: Thank you for the opportunity to submit a letter of interest for 3824 Farnam LLC's retail/multifamily projects located 38"'and Farnam Streets and 401 South 41't Street in Omaha,Nebraska. The Bank of Bennington would favorably view a financing request to provide construction and mini-permanent financing on the project. The Bank would also favorably view a loan for tax increment financing for this property in an amount notto exceed$1,300,000 at an interest rate of 5%. The Bank of Bennington reserves the right to submit additional material terms to the conditions of financing. This letter represents an indication of interest only and should not be construed as a loan commitment. Sincerely, Lesli .Andersen President and CEO 32 F. Organization Documentation NE Sec of Slate John A_Gate CORP-CRTO 9000103818-Page 1 of 3824 FARNAM,LLC Filed:08108/2014 02:56:24 PM CERTIFICATE OF ORGANIZATION OF 3824 FARNAM,LLC 1. Name. The name of the limited liability company is: 3824 Farnam, LLC (the "Company"). 2. Purpose.The Company is organized to engage in any lawful business permitted under the laws of the State of Nebraska and the Nebraska Uniform Limited Liability Company Act(the"Act"). 3_ Designated Office. The Initial Designated Office of the Company is: 8712 West Dodge Road,Suite 400,Omaha,Nebraska 68114 4. Agent for Service of Process. The Initial Agent in Nebraska for service of process is:Thomas McLeay,8712 West Dodge Road,Suite 400,Omaha,Nebraska 68114, IN WITNESS WHEREOF,the undersigned, as an authorized person for the Company, hereby executes this Certificate of Organization on this 6th day of August,2014. AUTHORIZED PERSON: Thomas H.Me anizer 33 99:14:45 Tue Nov 11 4 STATE OF NEBRASKA LETTER OF GOOD STANDING JOHN A. GALE Secretary of State Corporate Division Room 1301 State Capitol Lincoln,NE 68509 November 11,2014 Michael Peter 3328 Hickory St. Omaha,NE 68105 United States of America Dear Michael Peter Our records indicate that as of November 11,2014 at 9:14 AM the corporation known as: 3824 FARNAM,LLC has registered with the Nebraska Secretary of State's Office and is currently in existence and good standing to do business in the State of Nebraska as of the time and date noted above. Sincerely, John A.Gale Secretary of State Information on this document provided from the records of the Nebraska Secretary of State Office through Nebraska.gov,an instrumentality of the State of Nebraska 34 G. Reports and Studies None at this time. H. Financial Statements 3824 Farnam, LLC is a privately held company,however we agree to permit access to financial information to this entity at the office of 8712 West Dodge Road. The purpose of sharing private financials is solely to for the City of Omaha to determine its business relationship with 3824 Farnam,LLC. The City of Omaha therefore shall not disclose financial statements to any entity or person for any means. 35 EXHIBIT "D" EQUAL EMPLOYMENT OPPORTUNITY CLAUSE During the performance of this Agreement, "Provider" agrees as follows: (1) Provider shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, age, sexual orientation, gender identity, disability or national origin. Provider shall ensure that applicants are employed and that employees are treated during employment without regard to their race, religion, color, sex, sexual orientation, gender identity, or national origin. As used herein, the word "treated" shall mean and include, without limitation, the following: recruited, whether by advertising or by other means; compensated; selected for training, including apprenticeship; promoted; upgraded; demoted; downgraded; transferred; laid off; and terminated. Provider agrees to and shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officers setting forth the provisions of this nondiscrimination clause. (2) Provider shall, in all solicitations or advertisements for employees placed by or on behalf of Provider, state that all qualified applicants will receive consideration for employment without regard to race, religion, color, sex, sexual orientation, gender identity, or national origin, age, disability. (3) Provider shall send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding a notice advising the labor union or worker's representative of Provider's commitments under the Equal Employment Opportunity Clause of the City and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (4) Provider shall furnish to the City Contract Compliance Officer all Federal forms containing the information and reports required by the Federal government for Federal contracts under Federal rules and regulations, and including the information required by Sections 10-192 to 10-194, inclusive, and shall permit reasonable access to his records. Records accessible to the City Contract Compliance Officer shall be those which are related to Paragraphs (1) through (7) of this Exhibit and only after reasonable advance written notice is given to Provider. The purpose for this provision is to provide for investigation to ascertain compliance with the program provided for herein. (5) Provider shall take such actions as the City may reasonably direct as a means of enforcing the provisions of Paragraphs (1) through (7) herein, including penalties and sanctions for noncompliance; however, in the event Provider becomes involved in or is threatened with litigation as the result of such directions by the City, the City will enter into such litigation as necessary to protect the interests of the City and to effectuate the provisions of this division; and in the case of contracts receiving Federal assistance, Provider or the City may request the United States to enter into such litigation to protect the interests of the United States. (6) Provider shall file, if any, compliance reports with Provider in the same form and to the same extent as required by the Federal government for Federal contracts under Federal rules and regulations. Such compliance reports shall be filed with the City Contract Compliance Officer. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of Provider. (7) The Provider shall include the provisions of Paragraphs (1) through (7) of this Section, "Equal Employment Opportunity Clause", and Section 10-193 in every subcontract or purchase order so that such provisions will be binding upon each sub-Provider or vendor. C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: WHEREAS, the primary objectives of the City of Omaha's Master Plan and Community Development Program are to encourage additional private investment and infill development within inner-city neighborhoods; and to eliminate conditions which are detrimental to public health, safety and welfare, by developing vacant, underutilized property within these neighborhoods; and, WHEREAS, the redevelopment project sites located at 3824 Farnam Street and 401 South 41st Street are within a community redevelopment area, as the area meets the definition of blighted and substandard per the Community Development law and is in need of redevelopment; and, WHEREAS, the Blackstone Mixed-Use Tax Increment Financing (TIF) Redevelopment Project Plan was approved by the TIF Committee and subsequently by the City of Omaha Planning Board at their January 7, 2015 meeting; and, WHEREAS, the project site for the Blackstone Mixed-Use Tax Increment Financing (TIF) Redevelopment Project Plan is located at 3824 Farnam Street and 401 South 41st Street and is legally described in Exhibit "A" which is attached hereto and herein incorporated by reference; and, WHEREAS, the Blackstone Mixed-Use Tax Increment Financing (TIF) Redevelopment Project Plan contemplates the development of two sites, to include the demolition of the structure at 3824 Farnam Street and construction of a 4-5 story mixed-use structure with associated commercial space, and the demolition of the structure at 401 South 41st Street and construction of a new 4-5 story multi-family structure, a majority of the required parking will be provided on site underneath the structures at each redevelopment site, and each site will include additional on-street parking available to the public as described in Exhibit "B" attached hereto and herein incorporated by reference, and; WHEREAS, the Blackstone Mixed-Use Tax Increment Financing (TIF) Redevelopment Project Plan recommends the City's participation in the redevelopment of this project site through the allocation of TIF in an amount up to $1,300,000.00 to offset TIF eligible expenses for acquisition, demolition, architectural and engineering fees, site work, environmental costs and all public improvements associated with this project, as well as a $37,000.00 contribution from TIF loan proceeds to the Midtown Public Improvement Fund, which will go toward the offsetting costs of the Farnam two-way conversion, for a project with total estimated costs of$13,750,000.00; and, By Councilmember Adopted City Clerk Approved Mayor CO C C C32: CD CD 1:1 .41 .7j . fl F5- C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska Page 2 WHEREAS, the Plan presents a project based on estimated figures and projections that are subject to change as project costs are finalized, and is required to comply with all Planning Department requirements and Planning Board recommendations; and, WHEREAS, Section 18-2108 of the Nebraska Revised Statutes requires the City of Omaha to adopt a redevelopment plan before taking an active part in a redevelopment project; including the division of ad valorem taxes for a period not to exceed fifteen years under Sections 18-2147 through 18-2150, Revised Statutes of Nebraska; and, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: THAT, the attached Blackstone Mixed-Use Tax Increment Financing (TIF) Redevelopment Project Plan contemplates the development of two sites, to include the demolition of the structure at 3824 Farnam Street and construction of a 4-5 story mixed-use structure with associated commercial space, and the demolition of the structure at 401 South 41st Street and construction of a 4-5 story multi-family structure, a majority of the required parking will be provided on site underneath the structures at each redevelopment site, and each site will include additional on-street parking available to the public, recommending the City's participation through the allocation of TIF in an amount up to $1,300,000.00 to offset TIF eligible expenses such as acquisition, demolition, architectural and engineering fees, site work, environmental costs and all public improvements associated with this project, as well as a $37,000.00 contribution of the TIF loan proceeds to the Midtown Public Improvement Fund to offset costs of the Farnam two-way conversion, as subject to change as final costs come in, containing a provision for the division of ad valorem taxes under Section 18-2147 through 18- 2150, Revised Statutes of Nebraska, as recommended by the City Planning Department, be and hereby is approved. APPROVED AS TO FORM: /.ca/is ASS A—KIT Y DATE 2135 dlh By 4,16, Councilmember Adopted FEB 2 4 205 —� City Clerk g c(1/5 Approv � _� � Mayor / 1 NO. //7 7 i` Resolution by Res. that, the attached Blackstone Mixed-Use Improvement Fund to offset costs of the Tax Increment Financing (TIF) Farnam two-way conversion, as subject to Redevelopment Project Plan contemplates the change as final costs come in, containing a development of two sites, to include the provision for the division of ad valorem taxes demolition of the structure at 3824 Farnam under Section 18-2147 through 18-2150, Street and construction of a 4-5 story mixed- Revised Statutes of Nebraska, as use structure with associated commercial recommended by the City Planning space, and the demolition of the structure at Department, be and hereby is approved. 401 South 41st Street and construction of a 4- 5 story multi-family structure, a majority of 2135 dlh the required parking will be provided on site underneath the structures at each redevelopment site, and each site will include additional on-street parking available to the public, recommending the City's participation through the allocation of TIF in an amount up to $1,300,000.00 to offset TIF eligible expenses such as acquisition, demolition, architectural and engineering fees, site work, environmental costs and all public improvements associated with this project, as well as a $37,000.00 contribution of the TIF loan proceeds to the Midtown Public Presented to City Council FEB - 32015 , //' AtPf:O/V.).C. ' 'Z' C5*/i.C. ZL -' Z /i 1-';:€:://Veri , / FEB 2 4 2015 Adopted / & guoter grown City Clerk