Loading...
RES 2014-0688 - Ekard Court TIF redevelopment project plan CAHA,NF& i p Planning Department �_�9�fi � v Omaha/Douglas Civic Center ).., 1819 Farnam Street,Suite 1100 FZ � Omaha,Nebraska 68183 +. ,y (402)444-5150 �A� I'elefax(402)444-6140 D FEBR)P James R.Thele City of Omaha Director Jean Stothert,Mayor June 3, 2014 Honorable President and Members of the City Council, The attached Resolution transmits the Ekard Court Tax Increment Financing (TIF) Redevelopment Project Plan, which is located at 617 South 31St Street. The redevelopment project plan contemplates the complete demolition and removal of the existing structures, and the construction of a new multi-family structure on the redevelopment site. The proposed building will be a 4-story structure with 36 market-rate apartment units: the unit mix is as follows: 28-one bedrooms; 8-two bedrooms. Parking stalls will be provided on-site. There will be another ten (10) on-street parking stalls converted to back-in diagonal parking. The Planning Board recommended the approval of this redevelopment project plan at the May 7, 2014 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 $517,158.00 to offset TIF eligible costs such as acquisition, site work, architectural and engineering fees, and any required public improvements, which includes a $15,000.00 TIF contribution toward additional streetscaping in the area. The total estimated project costs are $3,863,014.00, 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: iescr.„..--4.—. � lgIIJ /R. Thele Date Mayor's Office IJate� Planning Director 0 Approved: , 2 — et/4--,--. 5-1,44, , 4„...t„,y...:xirta,_. 5%„ _,„ tephe B. Curtiss ate Robert G. Stubbe, P.E. Date Finance Director 4 , Public Works Director 2016 dlh Notice of Publication and Public Hearing: June 5, 2014 and June 12, 2014 Public Hearing: June 24, 2014 _\/( tti 2,I T " A It ALTA/ACSM Pc\cve l ©fz = a 617 S. 31ST STREET OMAHA, NE 1.0 o N j I O w 1 20' LEGAL DESCRIPTION: := g U Lot 17, except a triangular strip at the Southeast corner of said Lot 17, taken for opening ¢Z¢ 61 St. Mary's Avenue and which triangular strip is described as follows: Beginning at the Y M F<- f Southeast comer of said Lot 17; thence West along the South line of said Lot for 9.69. test: then in a Northeasterly direction for 11.91 feet, more or lees. to a point on the East s vj -J 1 line of said Lot. 6:94 feet North of the Southeast corner thereof thence South 6.94 feet to I the place of beginning; and all of Lots 18. 19, and 20, all in John I. Wicks Subdivision of John I. Redicks Addition to the City of Omaha in Douglas County. Nebraska; TOGETHER WITH c^o 1/2 of the vacated alley adjoining said Lots on the East. -i SURVEYORS CERTIFICATION: i i To: Dodd Kain Properties, LW; First American Title Insurance Company National Commerical Services This is to certify that this map or plot and the survey on which it is based were made.in I accordance with the 2011 Minimum Standard Detail Requirements for ALTA/ACSM Land Title Surveys jointly established and adopted by ALTA and NSPS, and includes hems ! 1.2,3,4,6,(b),7(a),8.11(a) of Table A thereof. :,.,v 1 .4,--XV a 13.A,3:;,1 N. TT iK� d Dote of Mop L / 1 Ay' 1Ys , _,_'n� ;' { rENO c,_ G NE LS 412 '. r LS-421 SPECIAL EXCEPTIONS. ALAj t"J4 `P I SCHEDULE 111. SECTION II 'P'lie�jj°`'- i'. SPECIAL EXCEPTIONS COMMITMENT # NCS-647954-OMHA '* lS46 • Easements of Record .. ._. I 1 Easements_reserved in Ordinance.34121 1 Filed April 10, 1997 In Book 1208 at Page 530 j Official Records. Douglas County, Nebraska IN VACATED ALLEY t { I I NOTES: ZONING DATA 1 Re ACT- 1(PL) AREA OF CIVIC IMPORTANCE 1 Permitted Use Classification: Apartment Bulldinog i Qb�ired:Use(e):.Multi Family artmente Existing,sits conditions appear(-from outside observations) to fall'within permitted uses as listed above in the City of Omahas Zoning Regulations-Section 55-281. Zoning Regulations are subject to change and interpretatkm,for further information 1 contact:City of Omaha(phone: 402-444-5150 et 2064) Contact's Name:Jed Moulton 0 FLOOD. NOTE ZONE 'X' FLOOD INSURANCE RATE MAP;(FIRM) Dote CRY OF OMAHA. COMMUNITY PANEL.NUMBER: 31055 C 0239 H DATED MAY r3:•2070 JAN. 15, 2014 ZONE 'X' IS DETERMINED TO BE AREAS Drawn By OUTSIDE THE 0.25 ANNUAL CHANCE FLOODPLAIN U.N. Checked By L.R.W. Project iP I KAIN-315T EXHIBITA- 416 Scale o 20' Louis Surveying Property Address • 7729 WILDWOOD COURT sty S.31St STREET LaVista, NE. 68126 (402-334-7982) OM�NE Sheet No. 1 OF 1 Pelt 2or ol ,c, _ - __ _ - .4. . , 1 I. i�<<o LOT 1,� ti b la LOT 21 '\1 cco c u� Scale 1 " 0I APARTMENT BUILDING 1 1 le 1 Lill • , S8° ;' ''02"E I I ASPHALT Le r 23 J . I .is RE K'S\ ASPHALT BL II) 0I 8 - — --�, r - --- to STOOP STOOP SKOP °° "°�``0,� LOT 19 3-STORY APARTMENT_BUILDING I I' FOOTPRINT 3 970 SQ.FT.{F•nym• 1n -co oThU l _) I ' I 1 ' _� _f I n D1 u o I 2Z34sSQ7tO0 _ - I* o 0.674 ACRES I 0 MTN z1 ➢�� LOT 1 S 11 _ ADDITION t 0 I GRASS H- - 1 ' M.. �. , LOT 17 1 I // 3-STORY APARTMENT BUILDING I // FOOTPRINT• 3,870 SQ. FT. / PPA/� z —^ E0!!lWORE-df°OD 1' nmiom i►q +; - - ...4,.^7� �lG''o 0 •14)7 ASPHALT N89 E 38'4 '— �, ' Ii b� �� ___-=4 ✓ A, b,4/ 0 APARTMENT BUILDING rk r/ m N ' ACCESS NOTE, `' '' o ACCESS TO SUBJECT PROPERTY VIA � 46.59' / ,` , STR DEDICATED RIG HT-ET OF-WAY AND OPEN TO PUBLIC AND MAINTAINED BY THE CfY OF OMAHA LEGEND: e PROPERTY CORNER FOUND PROPERTY ADDRESS 0 PROPERTY CORNER SET R RECORDED DISTANCE 617'S. 31ST STREET OMAHA. NE MOORED DISTANCE U111JIY mom S SURVEYED DISTANCE THE UNDERGROIRO MUTES SHOWN HAVE BEM LOCATED FROM HELD SURVEY W WATER LNE INFORMATION NO DOING ORATI NOE THE SURVEYOR MAKES NO GUARANTEE O OAS uHKE TOTAL AREA THAT THE UNDERGROUND UIWIIES SHOWN COMPRISE ALL SUCH UTILITIES N g SANITARY SEWER uNE THE AREA,EWER N SERVICE OR ABNIN ER THE SURVEYOR FURTHER DOES ss STORM SEWER.LINE AREA •+ 29,345 sq. E. NOT WARRANT NAT THE UNDERGROUND UTILITIES SHOWN ARE RE NE EXACT E ELECTRICAL LINE 0.674 acres LOCATION INDICATED ALTHOUGH HE DOES CERTIFY.THAT THEY ARE LOCATED AS O CABLE LINE NOT PHYSICALLY THE UNDERGROUND UIIUTES INC SURVEYOR HAS �xx— FE7JCE BIB LIGHT POUF EXHIBIT e i EXHIBIT "B" EKARD COURT TIF REDEVELOPMENT PROJECT PLAN 617 SOUTH 31ST STREET JUNE 2014 eMAHA, A,�� O I� , R 111 04?'i'ED FEIsOk-L 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: April 14, 2014 SUBJECT: EKARD COURT TIF REDEVELOPMENT PROJECT PLAN 617 South 31st STREET Case #C3-14- Project Summary This redevelopment project plan proposes the complete redevelopment of the site located at 617 South 31st Street. The primary owner,David Kain,owns several residential properties in Omaha. His plans are to reduce his inventory and concentrate capital and effort into this redevelopment project. The site consists of two multi-family structures which contain 27 units and were built around 1910. The City of Omaha issued code violations for the exterior of the buildings and for the interior of one of the units. Mr. Kain has made efforts to work with the City on resolving the code violations. After consulting with experienced renovators,a decision was made that the buildings are at the end of their useful life,and a rehabilitation project is not cost effective. While the two structures are occupied with tenants,they are on month-to-month lease agreements. Guardian Real Estate currently participates in the management of this project, and it has agreed to assist with the relocation of the tenants. Project Description The project plan entails the complete demolition and removal of the existing structures,and the construction of a new,single multi-family structure on the redevelopment site. The new building will be a 4-story structure with 36 market-rate apartment units. The unit mix is as follows: 28-one bedrooms;8- two bedrooms. A total of 42 parking stalls are proposed as follows: thirty (30) off-street standard parking stalls; two (2) accessible off-street parking stalls;and an additional ten (10)on-street parking stalls. The project is anticipated to be completed by spring 2015. 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 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 10 CASE: C3-14-077 APPLICANT: Planning Department on behalf of the City of Omaha REQUEST: Approval of the EKARD COURT TIE REDEVELOPMENT PROJECT PLAN LOCATION: 617 South 31st Street SUBJECT AREA IS SHADED - MAY 2014 ..... ... . ......................... " ••• •••• "......,:iii:i:; ............7...,.;ii;iiiiiii;-,.... f,::Ei .,,,:,::::::::::::,....: ::i::....... .:::::::::::::... . 1:::::....-...:.! ................................................. .......!''.....i'. :. .... i.,ii% ..F.:;...:...::: 11.'• : •::::;;i;.: :,;.., ,‘!:.:,;;;;;;;;;;, : ;iiiii::::......-...:.r..:......7:: -::-?::i • 's : : ' ...,,. C.141(r‘J •:-. ;•jj.::::11 :::i:::::::...,::-:.•:.:....)tAy.!.i....11n.iv... .. • •"••-• . ;.:4i••••• ::::::::".:E.:.:.:.:.:. .":::. :i:: ::' .sims:•••••••••••••••::::.........................,...:.:!1.:!!!! i!..:.::..::::::::.::::...::::. .n.....,::....:. • ::,::::,::::::::::::::,::::::::: ii; F::•:.:i .:ii•::::::::::•••• "": ii:ii :::::::::---":":":::: ::.::.::::::. ..:"::""----- .::Ii:-. . ..:.:.:.........:-:•-•:..":. .:''':- • :f::.,.:iiiiii::::.:::.:::::;:;:;;:: :. :.,.::::::••••••.„::::::•::::.::::::::••••: ......... Es• ••••••:;.;;;;.:;:...::::::::.:: . .: • • •••••••••••••••••• .... •-• -"""-- --- SEIB .. ....... ........... ....... . ::•••:••••••••"•••"•"•" .... Ages:.:::::::::•: ... •:::::-:: ::::,:::::..:.......: •---- :.f:_::::.:.::.:.::.::::::::::::::......:::::: ::::::i::.....::,-:-•::::::::::-: ::::::::::::- ....-106011:81........-1-rs-r•-..'• • • • . • ................. ...... 1:••••• ••••••••• ••• .....-• ••••••• • • . . ' :: ii::::::„::::„.... :2.4: :•••••••:::::::...................... ''''''•':''''.. .::::::::....::: ::-•••••::...;;:: :. ;,..: ..; ••••;....:...•:::: .."I' i..: •••••::::.•••:.:..::...."::"': ......"' ....;::::: ::;.```.:iI:i:..... .;;;:::.::"::::%:••••::::::.;:: :::.:.:.:'"•••••• .............:.. ......,....;,,,. . ACI•41 :i;i .J:..::::;:::;i:::::-. -:::::I i.i :;:-,.,•,;:;::::::.::.:.:.:::::.......... ::::;,:,;:::::. :::::.:::•••::::: :::....::::::: i::••::::::::::... .:.f:: :::::- ...t.:,: --••••::.•:;'..::::::: -:.:::":•• •••••:::..:.:!.. .....::;:! iiiii. :........,:!I •:::;::;; ;.::::::f,:::::::::;;;:;,;;;.::1HT,.,..,;;;;;;;;;;;,::: .: ::ii:,i1::;.:.: ;;;;;;;;;:ii:: f:.:";;;;;;;; KB.44400fili ..••.•........ .:::::::: -•i••••• ........... .. ....... •-• ...604.4:,........:0];*iip 144-ii,:ti:: •:::.:.:•:-::::;;:;:'::;:*..*:....1::*:::::::.:::: ....;:::.::. .R8;Iii. 6.-.60L II......Fii;::::::::::::::::::::.:. :. :gop i.. '•:...,....:-::...'_.'.....:.L.:., :,.. "...::: :::::-............:::;: ::f.,.. .. ...... it ......:....,...:.:„. ......:. ..:;rr. -.7:-,......,„. ,. ... :.;-„,..:.t,_ ......:::•••:•:::::::::::............:: ......:-. .,....... ... .. . i:F:i :::::::::::::: ,:::::!:i.....----::::::::::::::. c*. :,:: :-.L ..-, -...--, :-;,: ..:*:.....1.::.'::::::'..-:•::::: ..:-.::::-.........':::::':::-. ...-::::.•:::::: :: . ;;;;;;:fi: :,:i::: :::.....1 i:•: ::•:::,:;.-.......:::::;;;;;•;-:... .: . 1-,.:' ' ‘. ..:: ,, :,..1- . f -::1:::::::::.'.:::::::.:.. :::::::11 ::::::::::::::::-:%:::1;:i::•::::::::.::: .i..........;;;;;;:::-: ;.,..... 1 ,„,,;;;;.:;;;;;;; ;i:;;i::: ::::: .::;*: : ;--, ' :'- .. ...' ' . -",',. -:::"::::::.:::::i:•••: "F'.'1::.....:::::::::::::::;:•::::*:-. ......- iiiiaci4tiotiv: :::::::-.- ii --- •"-, -- - -:.r.. . -r: •••••• ....::::,•••••-••••••••••i:f,:•,. . 1 . :,:;,:::„:;„,:i„ .:•..:i...:.I r=................xn:frrA .......:fi-...::: . ,.------ ,- -- • ,,--: ••• -::•:•::::;;••:::::•••• -:::: -,,:: ••:::•.......;..;.. :::. ,:::::::::.:::::::::::::::::::::" :::::: ::••::: : -!-.-.1 ',' •,-- ' ••::::•••••••••• .....:::.'"•-•:::.:,.... ••::::::::•••••••...: :.: ..::":. •::.:. •................. ::.:......i .:*:i"::;••••-•••••••::::ii: .:"-•i'''':::.* 1 ------J -"->'. .-7 1.:::::.::-••••::::.::....::::::::: -.14 ';',.:••• -- ....... •• ••• .............4':.. ....::::::• •• : •::::••••••••••:•:: :::......I. :::::::::::::••••••::::::::.... .....:1:;"•••.::::::.::::::::::.."••• •• ...•.......... "" ••" •• "1 :::.:::::::::::::::::: :.....:. : :::::::••••••••••••••:::!:::.:::. •••••]:,•-••••••-:::::::::::::::•••• ::::::::::::.ri.i.......:". •:••••:;•:••':•:••••••• ::i R84141141tPY - •• i .::::i•':'":::•••••••••----T..' ••‘ i ----.:':ii--- ::C•••••• .::::::':::":::":•-•••••••••:••: . ::::::::::::....::::;;;;;;r.::.ff•::::jr:,•:: . "..... ,Z.-.... . .. '"' '''••-•:::::::.:....,. !;11:-• :::::;;;;;;.::.:'.:.f:.:.:. :.- ..::- .. ... zi:, •;.i ::•; :::::::......II....::::ftf:::::::::............. ,,,..±::.::::-..---::::::•::::::.::.f'.'!.......-••• ...::::.; ''':;.'' ".....""....... 44:• ::::::...:.;:-.::::::.:.::::.:.:'.*:.:.:i:::':.::.::.i::.. .:::.:;:: Rii . ..,. .. ....... . iAej41(pL w: *iii..ii:::::::.E::::.:::::. :E i:::.tHe.,:; .::: - ;.;.E::-.. ---iH i: ... ----. - ::-:::.. &..:: •••••::: : ::::::::::::::f:. ?:::'.. ............ ........... -•••••••••••••••-•• ,-..:::. :::.:.::::::::::: •: ::::::.:j It ... ................. ..••••:: 7... :::•-•••••••::::::::Ef:.:::.::::::::::::"::::::::::::::::-:::. T.': ••:::•:::•:7-••••••: •:::.;••• •••••• :i; ;;;;.:;;;:."."•:•::-":;:::I. .....:::::::::.::.:.ff'.':'::::::::::::. ....:.:.1 •••:::::.....:::":414*011(PKY.:.::::::"1::::: ..:•!':•:;•:- "......` ....:;:::::. ....' ,.. ...................... ...... it:,.......:.„.....„ .........7 .1,:. .. ................... .... ...... .. . •iii...... . • • ::;.....1.--TACi.41(PL) 7:::: .. ....................::::*-- ii:::•-•-• ...... ."'r ..J. i,.. .::...........................i -.::.• .,::,•,•:;•4,:', ..••••••.....••c•::::::. •::: ••::::!:.i: ::::;;;;:;',::-..•••:;":,::•-•;;;,: ; .....:•••••••:::••::7: .;;;;::S.:::::*:::.::: J.::j.::: C4A:ajiii0 :. .......::::::::i0-•••:::::::... .: !!:.:- - • :;".:.:"' ••••,••:::::::::T. '.:.!:.:::::::: ':•,,:•::::•:•'.::.:'•.:. .:::: .....:::..'...::•:•.:;'•:::...:..: ::'::: -......... ::.. - ..... „:....:!....:c0;4( 44::::::::i,.:::::: :::::::::::: ::.T:::::::: ..::::::. ::::::::::::::::::: • :::: ::: ::.......:•-•-• :,:::::::.: ::::::;I-1 i•ACIi 4 LY-.."": '::: .-...-.....-:i:-::: :-..10..... ::,.....:.....::::::::::.. .."..,..::.......... .. ..... . i. - , .................... ...... ..c... ................ _._._____.,,.,_. .z :: ::::::................. ..................................................-- N IM ACI-1(PL) Overlay District 400 0 ...... L. .. Feet LV\it', i a6� I vi I ow GiiS mr, I i 1 4.0 ‘Ar i. te,)›' 1,,,,e. 4 > ,,. I J.:vet ' Illi m4.0 y_ y � 3 T �, VI L n �1 J M oi '�� .0 i 0.1a. r4) ',. , i.--A *'''''''' • W , • eSrL r' 11/5/2013 http://www.dogis.org/ INTER-OFFICE COMMUNICATION Date: April 16, 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: Ekard Court TIF Redevelopment Project Plan Location: 617 South 31st Street Project Summary This redevelopment project plan proposes the complete redevelopment of the site located at 617 South 31st Street. The primary owner, David Kain, owns several residential properties in Omaha. His plans are to reduce his inventory and concentrate capital and effort into this redevelopment project. The site consists of two multi-family structures which contain 27 units and were built around 1910. The City of Omaha issued code violations for the exterior of the buildings and for the interior of one of the units. Mr. Kain has made efforts to work with the City on resolving the code violations. After consulting with experienced renovators, a decision was made that the buildings are at the end of their useful life, and a rehabilitation project is not cost effective. While the two structures are occupied with tenants, they are on month-to-month lease agreements. Guardian Real Estate currently participates in the management of this project, and it has agreed to assist with the relocation of the tenants. Project Description The project plan entails the complete demolition and removal of the existing structures, and the construction of a new, single multi-family structure on the redevelopment site. The new building will be a 4-story structure with 36 market-rate apartment units. The unit mix is as follows: 28- one bedrooms; 8-two bedrooms. A total of 42 parking stalls are proposed as follows: thirty (30) off-street standard parking stalls; two (2) accessible off-street parking stalls; and an additional ten (10) on-street parking stalls. The project is anticipated to be completed by spring 2015. Project Finance Summary - Sources & Uses Sources of Funds Owner Equity $ 445,856.00 Other Financing—Mutual of Omaha Bank $2,900,000.00 Tax Increment Financing—Mutual of Omaha Bank $517,158.00 Total Sources of Funds $3,863,014.00 Uses of Funds Acquisition of Land $363,307.00 Construction Costs $3,154,521.00 Soft Costs and Development Expenses $147,970.00 Contingency $197,216.00 Total Uses of Funds $3,863,014.00 Land Use and Zoning The redevelopment site currently has two residential structures which contains 27 apartment units. The land use will not change. The property is zoned R8-ACI-1 (PL); no changes to zoning. Utilities and Public Improvements Basic utilities (electrical, water, sewer) exist at the site. Basic streetscaping improvements such as street trees may be required. Transportation No transportation issues. Cost Benefit Analysis— (from the TIF application) 1. No tax shifts result from the approval of the use of funds pursuant to Section 18-2147 because the City of Omaha will continue to receive tax revenue on the base value for the Property. 2. The Property currently is served with sufficient public infrastructure. 3. The Project will provide a residential option for employers and employees of firms locating or expanding in the area of the redevelopment project. 4. The Project will provide a residential option for employers and employees within the city of Omaha and the immediate area that are located outside of the boundaries of the area of the redevelopment 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 will be in compliance with the Master Plan, appropriate Ordinances and development regulations of the City. This redevelopment project plan will help continue revitalization efforts and re-investment nearby the Leavenworth neighborhood. Ultimately, this project plan will enhance the tax base for various taxing jurisdictions. TIF will be used to offset costs such as acquisition, site work, architectural and engineering fees and any public improvements as may be necessary. We will request $15,000.00 of the TIF proceeds/loan toward the Midtown Public Improvement Fund. The total estimated project costs are $3,863,014.00. TIF Eligible costs are as follows: Site Work Costs (including demolition) $ 407,190.00 Architectural & Engineering $ 118 047.00 Total $ 525,237.00 TIF Fees $ 3,757.00 Total TIF Eligible $ 528,994.00 The TIF is 13.4% of the total project costs. Request: The TIF request is for up to $517,158.00; at an interest rate range of 5.25% — 5.75%. Using the current levy rate of 2.19974, both interest rates and other assumptions of the TIF calculation spreadsheet supports the TIF request, inclusive of capitalized interest. See attached TIF calculation spreadsheet(s). TIF Fee Schedule: $500.00 application fee and the processing fee of $3,000.00 were paid; $257.00 in administrative fees. Total fees will be $3,757.00. Recommendation: Approval ATTACHMENTS TIF Application TIF Calculation Spreadsheet(s) Applicant: Ekard Court PRO FORMA Debt Service Payments Total Less Pre- TIF Treasurer's Revenues Taxable Development Taxable Tax Tax 1%Collection Available Interest at Loan Capitalized Interest at DATE Valuation Base Valuation Levy Revenues Fee For TIF Loan Principal 5.75% Total Balance Interest 5.75% 0 $540,000 0.5 $ - 0 $ - 2.19974 $ - $ - $ - $0 $0 $0 $555,525 15525 15525 1 $ - 0 $ - 2.19974 $ - $ - $ $0 $0 $0 $571,496 15971 15971 1.5 $ - 0 $ - 2.19974 $ - $ - $ - $0 $0 $0 $587,927 16431 16431 2 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $14,818 $16,903 $31,721 $573,109 0 16903 2.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $15,244 $16,477 $31,721 $557,865 0 16477 3 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $15,682 $16,039 $31,721 $542,183 0 16039 3.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $16,133 $15,588 $31,721 $526,050 0 15588 4 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $16,597 $15,124 $31,721 $509,453 0 15124 , 4.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $17,074 $14,647 $31,721 $492,379 0 14647 5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $17,565 $14,156 $31,721 $474,814 0 14156 5.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $18,070 $13,651 $31,721 $456,744 0 13651 6 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $18,590 $13,131 $31,721 $438,154 0 13131 6.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $19,124 $12,597 $31,721 $419,030 0 12597 7 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $19,674 $12,047 $31,721 $399,356 0 12047 7.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $20,240 $11,481 $31,721 $379,116 0 11481 8 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $20,821 $10,900 $31,721 $358,295 0 10900 8.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $21,420 $10,301 $31,721 $336,875 0 10301 9 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $22,036 $9,685 $31,721 $314,839 0 9685 9.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $22,669 $9,052 $31,721 $292,170 0 9052 10 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $23,321 $8,400 $31,721 $268,849 0 8400 10.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $23,992 $7,729 $31,721 $244,857 0 7729 11 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $24,681 $7,040 $31,721 $220,176 0 7040 11.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $25,391 $6,330 $31,721 $194,785 0 6330 12 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $26,121 $5,600 $31,721 $168,664 0 5600 12.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $26,872 $4,849 $31,721 $141,792 0 4849 13 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $27,644 $4,077 $31,721 $114,148 0 4077 13.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $28,439 $3,282 $31,721 $85,709 0 3282 14 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $29,257 $2,464 $31,721 $56,452 0 2464 14.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $30,098 $1,623 $31,721 $26,354 0 1623 15 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $30,963 $758 $31,721 $0 0 758 $865,107 $8,640 $856,467 $592,536 $263,931 $856,467 $47,927 ASSUMPTIONS: (F9=calculate) NOTE:This information is provided to assist in analyzing the Original Loan Amount $540,000 specific request to the TIF committee. This information is subject Capitalized Interest $47,927 1.Assume No Pre-Development Base to change based on actual tax assessments.This schedule assumes Loan Balance Remaining $0 2.Loan Amount: $540,000 a 76%real estate valuation and a 1.0 debt coverage ratio.The 3.Interest Rate: 5.75% actual TIF amount available to fund site specific project cost will $587,927 POTENTIAL 4.Project Hard Costs: $3,833,091 change based on the cost of public improvements. 5.Increment Base: $2,913,149 Annual Incremental Tax Payment $ 64,082 Applicant: Ekard Court PRO FORMA Debt Service Payments Total Less Pre- TIF Treasurer's Revenues Taxable Development Taxable Tax Tax 1%Collection Available Interest at Loan Capitalized Interest at DATE Valuation Base Valuation Levy Revenues Fee For TIF Loan Principal 5.25% Total Balance Interest 5.25% 0 $550,000 0.5 $ - 0 $ - 2.19974 $ - $ - $ - $0 $0 $0 $564,438 14438 14438 1 $ - 0 $ - 2.19974 $ - $ - $ - $0 $0 $0 $579,254 14816 14816 1.5 $ - 0 $ - 2.19974 $ - $ - $ - $0 $0 $0 $594,459 15205 15205 2 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $16,116 $15,605 $31,721 $578,343 0 15605 2.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $16,539 $15,182 $31,721 $561,804 0 15182 3 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $16,974 $14,747 $31,721 $544,830 0 14747 3.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $17,419 $14,302 $31,721 $527,411 0 14302 4 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $17,876 $13,845 $31,721 $509,535 0 13845 4.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $18,346 $13,375 $31,721 $491,189 0 13375 5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $18,827 $12,894 $31,721 $472,362 0 12894 5.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $19,321 $12,400 $31,721 $453,041 0 12400 6 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $19,829 $11,892 $31,721 $433,212 0 11892 6.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $20,349 $11,372 $31,721 $412,863 0 11372 7 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $20,883 $10,838 $31,721 $391,980 0 10838 7.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $21,432 $10,289 $31,721 $370,548 0 10289 8 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $21,994 $9,727 $31,721 $348,554 0 9727 8.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $22,571 $9,150 $31,721 $325,983 0 9150 9 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $23,164 $8,557 $31,721 $302,819 0 8557 9.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $23,772 $7,949 $31,721 $279,047 0 7949 10 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $24,396 $7,325 $31,721 $254,651 0 7325 10.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $25,036 $6,685 $31,721 $229,615 0 6685 11 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $25,694 $6,027 $31,721 $203,921 0 6027 11.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $26,368 $5,353 $31,721 $177,553 0 5353 12 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $27,060 $4,661 $31,721 $150,493 0 4661 12.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $27,771 $3,950 $31,721 $122,722 0 3950 13 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $28,500 $3,221 $31,721 $94,222 0 3221 13.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $29,248 $2,473 $31,721 $64,974 0 2473 14 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $30,015 $1,706 $31,721 $34,959 0 1706 14.5 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $30,803 $918 $31,721 $4,156 0 918 15 $ 2,913,149 0 $ 2,913,149 2.19974 $ 32,041 $ 320 $ 31,721 $31,612 $109 $31,721 $0 0 109 $865,107 $8,640 $856,467 $621,915 $234,552 $856,467 $44,459 ASSUMPTIONS: (F9=calculate) NOTE:This information is provided to assist in analyzing the Original Loan Amount $550,000 specific request to the TIF committee. This information is subject Capitalized Interest $44,459 1.Assume No Pre-Development Base to change based on actual tax assessments.This schedule assumes Loan Balance Remaining $0 2.Loan Amount: $550,000 a 76%real estate valuation and a 1.0 debt coverage ratio.The 3.Interest Rate: 5.25% actual TIF amount available to fund site specific project cost will $594,459 POTENTIAL 4.Project Hard Costs: $3,833,091 change based on the cost of public improvements. 5.Increment Base: $2,913,149 Annual Incremental Tax Payment $ 64,082 APPLICATION OF DAVID KAIN PROPERTIES, LLC TO CITY OF OMAHA FOR TAX INCREMENT FINANCING FOR REDEVELOPMENT OF EKARD COURT 617 S. 31ST STREET OMAHA, NEBRASKA Applicant: David Kain Properties, LLC do Mr. David Kain 5110 Chicago St. Omaha,NE 68132 (402) 681-8276 Prepared and Submitted by: Daniel D. Walsh Walsh Law, P.C., L.L.O. 11605 Miracle Hills Drive, Suite 205 Omaha,NE 68154 (402) 697-1161 TIF APPLICATION Project Name: Ekard Court Project legal description: Project Address: 617 S. 31st Street, Lot 17, except triangular strip for St. Mary's Omaha, NE Ave, and all of Lots 18, 19, 20, all in John I Redicks Subdivision of John I Redicks Addition, plus '/2 of vacated alley adjoining to the east (for complete legal description see page 1 of Exhibit A) . Property Owner/Applicant Name: Owner Address: David Kain Properties, LLC 5110 Chicago St. Omaha, NE 68132 Estimated Total Project Cost: TIF Request and/or $3,863,014 Amount of Redevelopment Note: $517,158 New Construction: Yes Proposed Project Size: Building Area: 9,674 sq.ft. Rehabilitation: No Gross Sq. Ft: 38,698 sq.ft. (Building) Net Sq. Ft: 29,336 sq.ft. (Building) Number of Acres: .674 Lot/Parcel Size: 29,345 sq.ft. LIHTC Project: No Market Rate Project: Yes Historic Tax Credit Project: No Current Use: Proposed Use: Multifamily Residential Multifamily Residential Current Zoning: Proposed Zoning: R8-ACI-1 (PL) R8-ACI-1 (PL) Current Annual Real Estate Taxes: 2013 Tax Year: $12,638.32 Current Assessed Tax Valuation 2013 Tax Year Land: $42,700.00 Improvement: $549,600.00 Total: $592,300.00 Application Requirements A. Project Description. The Applicant proposes to demolish the Ekard Court apartments that are located on the Property,provided it is able to obtain approval of TIF from the City of Omaha, and construct a new apartment building on the Property. 1. Background of the Property. The Ekard Court apartments are two apartment buildings that contain a total of 27 units. The buildings face each other and are located approximately one-half block North of St. Mary's Avenue on 31st Street. The buildings were constructed by Drake Realty and Construction, and, according to the Assessor's office, the buildings were constructed in approximately 1910. According to the website of the Douglas County Assessor, the Ekard Court apartment buildings have a physical age of 104 years. The Applicant has confirmed that the buildings are not on any historical register. The City of Omaha issued code violations for the exterior of the buildings in 2009 and for the interior of one of the units in 2010. While the Applicant has strived to work with the City on resolving the code violations, the Applicant has concluded that, after consulting with experienced renovators, the buildings are at the end of their useful life, and a rehabilitation project is not cost effective. Consequently, the Applicant proposes to demolish the existing buildings and construct a new single apartment building on the Property. 2. Legal Description. The legal description of the Property is attached hereto marked as Exhibit A and incorporated herein by this reference (hereafter "the Property"), and the Property has an area of approximately 29,345 square feet. A survey of the Property is attached hereto marked as Exhibit B and incorporated herein by this reference. 3. Current Zoning and Use of Property. The Property is zoned R8-ACI-1 (PL). The Property currently has 27 apartment units that are occupied with tenants, all of whom are on month-to-month rental agreements. 4. Narrative Description of Project. a. Plan for Relocation of Tenants and Demolition of Buildings. The Applicant proposes to give the tenants notice of termination of their leases that will permit the tenants approximately 60 days to relocate. Guardian Real Estate currently participates in the management of the Project, and it has agreed to assist with the relocation of the tenants. Guardian has a proven record of the successful relocation of tenants in this neighborhood. Guardian's most recent experience with relocation of tenants occurred when the Sycamore Apartments at 620 S 35 St were sold, and the new owner did a major renovation. Guardian had all the tenants relocated within the notice period. Guardian also has experience with relocation of tenants when a fire has occurred and when a rental property has been shut down for code violations. Applicant believes that Guardian's participation in the relocation of 1 the tenants will streamline the process and will result in all the tenants being successfully relocated within the notice period. b. Construction of New Building. The Applicant proposes to construct a 4 story apartment building for 36 market rate apartment units. The site plan, floor plans and an elevation of the proposed building, that were prepared by Applicant's architect, Travis R. Brodersen of trb Architecture, PC, are attached hereto marked as Exhibit C and incorporated herein by this reference. The unit mix is as follows: 28-one bedrooms; 8-two bedrooms. The Project proposes a total of 42 parking stalls consisting of the following: thirty (30) off-street standard parking stalls; two (2) accessible off-street parking stalls; and an additional ten(10) on-street parking stalls. 5. Information Regarding Applicant and Development Team Members. The Applicant is a Nebraska limited liability company. The members of that LLC are David Kain, and his spouse, Lynn L. Espeland. Mr. Kain has been involved in owning and operating residential rental properties since 1997, and he has managed 10 properties with 112 units. The Applicant is liquidating six other rental properties in order to assist in the financing of this Project. The Applicant intends to have the Project be Applicant's sole asset. Travis R. Brodersen of trb Architecture, PC, will provide the architectural services for this Project, and Mr. Brodersen has experience with multifamily projects, both with new construction and rehabilitation. Brester Construction will be the contractor for this Project, and Brester Construction has experience with demolition and construction of multifamily projects including but not limited to the project located at 501 Park Avenue in Omaha,NE. Ekard Court is located within the area that has been declared to be substandard and blighted by the City of Omaha based upon the `Blighted Area Map" attached to the City of Omaha's Tax Increment Financing Guidelines. B. Development Financing Plan. The Applicant's development financing plan, which includes a sources and uses of funds, a current estimated project cost, and a TIF Necessity Analysis, is attached hereto marked as Exhibit D and incorporated herein by this reference. The current valuation of the Property is $592,300.00 with annual real estate taxes totaling $12,638. After construction of the new building and stabilization of the Project, the anticipated valuation will be approximately $3,652,608,000 based on a market capitalization rate of 6.25%. The Applicant is requesting TIF based on an incremental increase in valuation of$2,562,300. C. A Preliminary Loan Commitment. A copy of the Applicant's preliminary loan commitment is attached hereto as Exhibit E. D. Project Costs. See Exhibit D. E. Statement and Demonstration that The Project Would Not Proceed Without TIF. This development will not be viable without TIF. See the TIF Needs Analysis that is part of Exhibit D. 2 F. Evaluation Criteria Mandatory Criteria. This project meets the following mandatory criteria that are set forth in Omaha's TIF policy: 1. The Property is located in a an area designated as a community redevelopment area, as defined by the Community Development Law for areas that meet the substandard and blight definition, and therefore this Proposed Redevelopment Project(hereafter"the Project") meets the first mandatory criteria. 2. The use of TIF for the project will not result in the loss of preexisting tax revenue to the City and other taxing jurisdictions. The Property will continue to generate property taxes on the base value of $592,300. Therefore, this Project meets the second mandatory criteria. 3. This Project would not be economically feasible in Omaha without the use of Tax Increment Financing, the "But for" test, as demonstrated in Exhibit D. Therefore, this Project meets the third mandatory criteria. 4. This Project is consistent with and furthers the objectives of the City's Master Plan, including but not limited to the following: (1) reverse deterioration in older areas of the central city; (2) encourage private investment; (3) ensure good quality housing; and (4) ensure a mix of housing patterns, types and styles. Therefore, this Project meets the fourth mandatory criteria. Therefore, this Project meets all of the mandatory criteria. G. Preliminary Concept for Project. See the plans attached as Exhibit C. H. Development Schedule Applicant desires to commence demolition in late July of 2014, and Applicant anticipates that the project will be completed in April of 2015. A development schedule that was prepared by Applicant's contractor is attached as Exhibit F. I. Cost—Benefit Analysis 1. No tax shifts result from the approval of the use of funds pursuant to Section 18-2147 because the City of Omaha will continue to receive tax revenue on the base value for the Property. 2. The Property currently is served with sufficient public infrastructure. 3. The Project will provide a residential option for employers and employees of firms locating or expanding in the area of the redevelopment project. 4. The Project will provide a residential option for employers and employees within the city of Omaha and the immediate area that are located outside of the boundaries of the area of the redevelopment project. 3 5. This redevelopment project benefits the City of Omaha because it redevelops a largely vacant historic property. J. Corporation Documents The Applicant was formed as a Nebraska limited liability company on December 15, 2004. Attached hereto marked as Exhibit G are a true and correct copy of the following: a copy of the Articles of Organization for the Applicant that was filed in the Office of the Secretary of State for the State of Nebraska on December 15, 2004; a copy of the signed Operating Agreement for the Applicant; and a copy of the signed Unanimous Consent of the Members of the Applicant that authorizes David Kain, as Manager of the Applicant, to execute the Redevelopment Agreement on behalf of the Applicant. K. Financial Statements The Applicant does not have audited financial statements for the last three years, but has Schedule E of Mr. Kain's personal tax returns that will be provided upon request, provided that the City keeps said documents as confidential records. 4 / / m X \-X Chi n tl 5 A 1..... I 1; I t. it\ 1 11 . 6 [. I 1 ' ' I I I J 1 F 11 yy �I i t- 1 I I � • %. .1 z 1II u •- 3 J�i \\iI1 I�� � _.1 E � 1 '1'= .,1 I � �n � lm° py'1n -- -- 3 qi G ^.r ZZ m s,• /, gaT _ "�<- , 1 I I I I AgY. 10 \ I I I I I I I I 1 - I Tip = P1 "s . 1 11>° 5 iP ',ix g s •s;f . 1�911 a E XlR/gRgl R lm uP 0 YsE � EXHIBIT ' 'R �" a E gf$§ ' dq� $ F eo, r a $ I m gj z'F§sy2R s5 l€Q fit 8cqis� 2A$m" 97 �' a 3 AR ;I :' R n �" '€. , 1 W I d ll 6 I m*gi °�o b$^+li �� e e a e S o eg 11 x� A� R> 5 . s ijH v ROIREVISIONS rl g CONCEPTUAL LAYOUT PLAN s _� > NO. DESCRIPPON DATE NY y e EKARD COURT a3 Ham `"� c m N:OA e 1 ` x 617 SOUTH 31st STREET AQ Iz &e9 DZA o' $ OMAHA, NEBRASKA 5 it mIP �' rn — — ._- ------ - - - - _ — —— _ - — —— \ _ —= _ ___,........., _ = _____ .19 ..?? .19 li jr-EB ..1., -1 _ _ • 1.11.1 ini le ____.. .,. B . s ... . . —El _ . _ 19--===---- Ta- — .____ - __ \ —__ — _ = ill -_.- --:I. M-_,II 11 Ill 'AI =—al_-=•.-_ •I I* -• -=_ill'"---.1-1•1 Z-.? M7,...,1E1='----_=-1.1 III II-- ==-F1111-11 I W-_-71111 . _ _ . ___ 1- _-. - -= - - ----.- - =.1 1 is =-M=__ _Ed •E_- .•= II. AI _ -=-117111= El E---__ ---111 .IN - —1;1— -- .III 111 --; ___111_ , _-sk- AM - - -- --- - --- -- - - -..-..4.00w--- _,..... ..._ Ima. _ -- -, --... ... .- , . . ..-_....- -.._ ...= - 7? it 1.1 -- ---- Ill - -- 1.1 MI lia— - li - 'MI MI'. - IN IN I M . -al M III =lai- - MI_____ it -- _-- - I - -_ • is ------.= - El - I. - =----I a III.--- - II - - Mil III -- -- MI III-- -I. MI III .._s=d---111 I-- - -- MI z _ _ -..___ ..doillOit = -I =dd-• IN- - - 1.1 M"NI •----,011m,',.1 =--:. _-_, __Ii m IN------- NI m a NI m _•_ _ • ----- MI a -7-1- 11111= ---=-• . ' AO - —---- —- - - ----' ‘ `.. PI.---- -----_---------—s-- ---- ------_-_-:--=_—_—__L___T— - - 11 vv t Elevation E ka rd Court ARCHITECTURE,P.C. ARCHITECTURE I DESIGN I PLANNING P.O.BOX 67 617 S 31st Street GRETNA,NEBRASKA 88028 402.520.5633(p) wiweitharchiteclure.corn DATE:FEBRUARY 17,2014 --1 I r-° —, d ' EI</ - I n9n 0� I </ B nF5rr\� 1 r \� 1 (H�I I IN �- p I I rr L- lu�V ° -J Lou ° bi-J u4u ° B U69 . 0 �LJ A 0. J -� li.. r r I. r 1_ Aid. 1 1 1 1 1 4 1 I r i 0 3 liraE-1 ill=pH_ =MI ?= rill 1 X _o r— CIOo1-001,11 t- r�0 C IO i r D �� -�,.. CI 17---t__7 of 1 ® e" 1 ® 1 Hi' l o 1 i _ I ea T_J I•r• --—I I ME. T 1--, !la I L z e;� _ L— L— - —J ere__ I19 B E9n ° Eln ° u nFR ° n F R V Ni lII It —, IHILI 1 I I 1 --I Nib 1 1 M I I I-tH r— '� I I 1Nr— IIH u u II/> I ° /> IIH ° ° IN I `\;.j ° IL\L_ Lug l —J �� —J Lug ! U— 6� ,_ I _ _ I i 151'-4" le FIRST FLOOR PLAN J o' 4� 8' 16' 32' Ekard ARCHITECTURE,P.C. ARCHITECTURE I DESIGN ) PLANNING P.O.BOX 87 617 S 31 st Street GRETNA,NEBRASKA88028 402.320.3833(p) www.trbarchItecture.ram DATE:FEBRUARY 17,2014 C ------„, �• i 1 �.- r---- _© © 6-0"5'-b" --J 1 -. /- I - R / , J 1 r- er,_ _ __j I °r_'L(--144-- I I rn ,E);Pi J 1 I L——1—__ 1 L.-J ty --_- 40 MI ' 1 N ` N 50'-0° i 1 r-1 III I r 1 m I -1 12'-I I" m 1-1 I I I j---�mr 7rn L;fl T- Ii•f-H I 1 III J III 38'-O"I I F-I H I I / �•� 1 ‹.1 In 1 I 1- OH � 1-� , klII I I I II I `�-\r1�+" >` /� II'61' < I I�F „-{ I In_ ICI 'L I III 12'-I"I I I -I f) -�"-- AL N�� / I ;r III I ( I I`� /- I 1 LJ I I11"- I I ir1 v- I P.-� IL I I 6_I1 LJ \ LJ L\ I_I • \ 1--� U —; - \ �- 1 � Q - - I° ❑ iti 1 I. ❑ o ❑ o ❑ C] ❑ 17 0 0 TYP. UNIT PLANS liminirl SCALE: 3/16" = 1'-0" 0' 2' 4' 8' 41( J b Ekard Court ARCHITECTURE,P.C. ARCHITECTURE I DESIGN I PLANNING P.O.BOX 87 617 S 31 st Street GRETNA,NEBRASKA 88028 402.320.3633(p) www.trba,thII ure.com DATE:January 7,2014 Use of Funds Land 363,307 Construction Cost 3,154,521 Soft costs and Development Expenses 147,970 Contingency 197,216 Total Use 3,863,014 Source of Funds Equity 445,856 TIF Note 517,158 Construction Loan 2,900,000 Total Source of Funds 3,863,014 EXHIBIT Ekard Court Operating Projection 1 g 1 rev. 02/18/14 Per Unit Monthly Annually Revenue 36 $ 34,700 416,400 Vacancy 5% (48.19) (1,735) (20,820) Net Revenue 916 32,965 395,580 Number of Units 36 Expense Advertising Expense 4.00 144 1,728 0% Appliance Related 1.00 36 432 0% Bank Fees 0.25 9 108 0% Carpet 1.00 36 432 0% Cleaning and Maintenance 3.00 108 1,296 0% HVAC 3.00 108 1,296 0% Insurance Expense 21.25 765 9,180 2% Landscaping 4.00 144 1,728 0% Lawn and Snow Lawn 8.00 288 3,456 1% Snow 10.00 360 4,320 1% Leasing Commission 30.00 1,080 12,960 3% Maintenance Person 15.00 540 6,480 2% Office Supplies 0.00 0 0 0% Pest Control 1.00 36 432 0% Plumbing Related 3.00 108 1,296 0% Property Management Fees 40.00 1,440 17,280 4% Property Management Software 1.00 36 432 0% Property Taxes 160.25 5,769 69,228 18% Repairs and Maintenance 10.00 360 4,320 1% Reserves 25.00 900 10,800 3% Supplies 3.00 108 1,296 0% Trash 0.50 18 216 0% Turn Units Labor 15.00 540 6,480 2% Supplies 10.00 360 4,320 1% Utilities Expense 0% Electric 8.00 288 3,456 1% Fire Sprinkler Monitoring 2.00 72 864 0% Turn Unit 5.00 180 2,160 1% Water and Sewer 2.00 72 864 0% Washer&Dryer Related 1.00 36 432 0% Total Monthly Expense 387 13,941 167,292 42% Net Operating Income 528 19,024 228,288 Cap Rate(Valuation) 6.25% 3,652,608 101,461 80% 2,922,086 Monthly Free Cash 19,024 Ekard Court Operating Projection Yea f rev. 02/18/14 Per Unit Monthly Annually Revenue 36 $ 34,700 416,400 Vacancy 5% (48.19) (1,735) (20,820) Net Revenue 916 32,965 395,580 Number of Units 36 Expense Advertising Expense 4.00 144 1,728 0% Appliance Related 1.00 36 432 0% Bank Fees 0.25 9 108 0% Carpet 1.00 36 432 0% Cleaning and Maintenance 3.00 108 1,296 0% HVAC 3.00 108 1,296 0% Insurance Expense 21.25 765 9,180 2% Landscaping 4.00 144 1,728 0% Lawn and Snow Lawn 8.00 288 3,456 1% Snow 10.00 360 4,320 1% Leasing Commission 30.00 1,080 12,960 3% Maintenance Person 15.00 540 6,480 2% Office Supplies 0.00 0 0 0% Pest Control 1.00 36 432 0% Plumbing Related 3.00 108 1,296 0% Property Management Fees 40.00 1,440 17,280 4% Property Management Software 1.00 36 432 0% Property Taxes 160.25 5,769 69,228 18% Repairs and Maintenance 10.00 360 4,320 1% Reserves 25.00 900 10,800 3% - - Supplies 3.00 108 1,296 0% Trash 0.50 18 216 0% Turn Units Labor 15.00 540 6,480 2% Supplies 10.00 360 4,320 1% Utilities Expense 0% Electric 8.00 288 3,456 1% Fire Sprinkler Monitoring 2.00 72 864 0% Turn Unit 5.00 180 2,160 1% Water and Sewer 2.00 72 864 0% Washer&Dryer Related 1.00 36 432 0% Total Monthly Expense 387 13,941 167,292 42% Net Operating Income 528 19,024 228,288 Cap Rate(Valuation) 6.25% 3,652,608 101,461 80% 2,922,086 Monthly Free Cash 19,024 Ekard Court Operating Projection -2017 Per Unit Monthly Annually Revenue 36 $ 35,047 420,564 Vacancy 5% (48.68) (1,752) (21,028) Net Revenue 925 33,295 399,536 •Number of Units 36 Expense Advertising Expense 4.04 145 1,745 0% Appliance Related 1.01 36 436 0% Bank Fees 0.25 9 109 0% Carpet 1.01 36 436 0% Cleaning and Maintenance 3.03 109 1,309 0% HVAC 3.03 109 1,309 0% Insurance Expense 21.46 773 9,272 2% Landscaping 4.04 145 1,745 0% Lawn and Snow Lawn 8.08 291 3,491 1% Snow 10.10 364 4,363 1% Leasing Commission 30.30 1,091 13,090 3% Maintenance Person 15.15 545 6,545 2% Office Supplies 0.00 0 0 0% Pest Control 1.01 36 436 0% Plumbing Related 3.03 109 1,309 0% Property Management Fees 40.40 1,454 17,453 4% Property Management Software 1.00 36 432 0% Property Taxes 160.25 5,769 69,228 17% Repairs and Maintenance 10.10 364 4,363 1% Reserves 25.00 900 10,800 3% Supplies 3.03 109 1,309 0% Trash 0.51 18 218 0% Turn Units Labor 15.15 545 6,545 2% Supplies 10.10 364 4,363 1% Utilities Expense 0% Electric 8.08 291 3,491 1% Fire Sprinkler Monitoring 2.02 73 873 0% Turn Unit 5.05 182 2,182 1% Water and Sewer 2.02 73 873 0% Washer&Dryer Related 1.01 36 436 0% Total Monthly Expense 389 14,013 188,160 42% Net Operating Income 536 19,281 231,375 Ekard Court Unit Mix Scenario A Unit Type Unit Name Unit Count Unit Area Net Area Rent/Sq Ft Monthly Rent Total Monthly 1 BD/1 BA Al 28 762 21,336 1.18 899 25,176 2BD/2BA B1 8 1,000 8,000 1.10 1,100 8,800 36 29,336 1.16 $ 33,976 3/17/2014 Summary of TIF Eligible Expenses Ekard Court 617 S 31 St. David Kain Estimated Expenses Cost $ TIF Eligible site work, demolition,etc(see attached) 407,190 Architectal &engineering 118,047 TIF fees 3,757 Contractor Contingency 131,397 Total 660,391 Ekard Court 36 Unit Apartment 617 S 31 St Omaha NE David Kain Description Notes Labor Materials Subcontracts Equipment/Other 7?F;fr9J„,,„, rbieeletl ` r, .., Cost per Unit Supervision $ 35,000.00 $ �-$ -$ - -$ $ 972.22 Common Labor $ 34,000.00 $ -$ -$ -$ -M :2 `. it:;z $ 944.44 BuildingPermits b Owner $ - $ -$ -$ -$ "'`'ilr::$ Y t a srr Builder's Risk Insurance by Owner $ - $ -$ -$ -$ L '_ P" $ - Construction Cleanup $ 11,500.00 $ -$ -$ -$ s f_$ 319.44 Final Cleanup $ -$ -$ 8,300.00 $ -$ r OU? ,a 230.56 Temp.Utilities $ -$ -$ -$ 9,000.00 $ r v-, e,.a i R,$ 250.00 Temp Heat $ -$ -$ -$ 3,000.00 $ .,- .r,,"r$ 83.33 Equipment&Small Tools $ 5,000.00 $ -$ -$ 30,000.00 $ , 1 .:,„ 7$9Cf4f "$ 972.22 Haul Away Services $ $ 7 6,000.00 $ 166 Site Grading $ 2,000.00 $ -$ -$ 3,000.00 tloosl0 ;, - ' #. »:,,,,,s$ 138.89 Site demolition $ - $ -$ -$ - - $ Termite Control $ - $ -$ 2,200.00 $ - 'T7Q9 ,; = $ 61.11 89 Footings&Foundation $ - $ -$ 68,000.00 $ -$ k, ," $ 1,888. Pump Truck $ - $ -$ -$ -$ $ ,,A'x a u`z-ii'„$ Rebar $ -$ 17,500.00 $ -$ -$ - $ 486.11 Anchor Bolts $ -$ 2,100.00 $ -$ -$ - $ 58.33 Floor Slab $ - $ -$ 28,000.00 $ -$ - $ 777.78 GranularfilWapor Barrier $ -$ 4,460.00 $ -$ -$ - e o $ 123.89 Pump Truck for floorslab $ - $ -$ 2,500.00 $ -$ -gremoram$ 69.44 Gyperete $ - $ -$ 15,400.00 $ -$ Wi - $ 427.78 ' Yx,, $ nter Concrete Allowance $ - $ -$ -$ -$ ' y .. ' ;:.;:wFtwalwc......-,.:uu ,,ti 7. .............�iV: ./vuLrZ'r.'v<. u...,x„u. ._..___..tmw_,..........�z,.c: .r....,.....,.. .....,.,..:.. .�....,,e,.,,;.,_, _. ',,.v,e , ':;! ,a.e._,.:.r... « .. ,,. _.;..._ .._,:r;,S..Z,vxe uu .:x_n . ) ,..;:.:. ,::_ . . :s x . 22 CMU Block/Brick Misc masonry materials $ -$ 42,000.00 $ 74,000.00 $ -$ ," $ . 3,222.22 Winter protection Allowance F F 2®5 1,999.99 $ 8 'w�,r I $ 27.79 Fiber Mesh at Floor Slab Included with floor slab EllallillMILIIIIIIIILIIIMI1111011111111EIL $ Steel Lintels $ -$ 6,900.00 $ -$ - .a9. ''F:,EMElinl Onamental Railings Standard 2 rail design $ - $ -$ 33,000.00 $ -$ 4:" $ 916.67 § 3l✓a.IMP 7 �; ; 7 s / '. Rough Carpentry Loose Materials $ -$ 105,000.00 $ -$ -$ r,.,( ti�� $ 2,916.67 Wall Components $ -$ 170.000.00 $ -$ -$ -gnIEWgraS$ 4,722.22 Stairs $ -$ 9,750.00 $ -$ - $ 270.83 Misc.Wood Blocking Labor $ 6,000.00 $ 3,500.00 $ -$ 2,000.00 =CIY,24.!-:64-.4'MW. -y' $ 319.44 Description Notes Labor Materials Subcontracts Equipment/Other TIREllgibiL401"1ecfed , `K" ;'„Cost per Unit Floor&Roof Trusses $ -$ 110,000.00 $ -$ -$ $ram ` $ 3,055.56 Framing Labor $ - $ -$ 155,500.00 $ -$ $ 4,319.44 Decks $ -$ 28,750.00 $ 20,000.00 $ -$ y,., ', $ 1,354.17 Fire Caulking&sealants $ 2, 400.00 $ 3,500.00 $ -$ -$ -.$;' a..a+ $ 163.89 Cabinets&Accessories $ 1,500.00 $ 41,000.00 $ -$ -$ - $ 1,180.56 Finish Carpentry materials Millwork(Res.Rm.&Corridor),Int Hardware $ -$ 33,000.00 $ -$ -$ $ x $ 916.67 Cabinet Hardware $ -$ 2,000.00 $ -$ -$ _, $ 55.56 Finish Carpentry Subcontract Labor $ - $ -$ 42,000.00 $ -$ $ 'V'! a7,!% $ 1,166.67 Wre Shelving $ - $ -$ 7,800.00 $ -$ -s 7 :a ` s 216.67 dsa:. ®MIIIIII$ 31,000.00 $ -$ - ': ,:: 00 „z: $ 861.11, Roofing&Sheetmetal Shingles $ - $ 12,325.00 $ 4,400.00 $ -$ W:L( $ 464.58 Flat roof at elevator $ - $ -$ 2,500.00 $ -$ - „°, x00..0 "$ 69.44 15#Felt&Ice Water Install by framer $ - $ -$ -$ -$ -.. °1.2„1,4 $ Gutters $ - $ -$ 7,500.00 $ -$ -!--tyg;,-!prpoplgo$ 208.33 Prefinished Hardi Siding 5$ 33,500.00 $ 30,000.00 $ 463' w $ 1,763.89 Soffit and Fascia Included with siding above $ - EMMEN=$ -$ -$ -'i t a "'*e ^$ Caulking of Hardi Included with siding above $ - $ -$ -$ -$ - use.:. _,Y..?a^$ Flashing Cap at brick&decks $ - $ 1,000.00 $ -$ -$ 'k,°` $ 27.78 Joint Sealants $ - $ -$ 8,500.00 $ -$ -?t'«, :!,-r:ROm„,,,,5 ro$ 236.11 Thermal Caulking at rim joist $ 1, 000.00 $ 1,000.00 $ -$ -$ - $ 55.56 Misc.Flashing Details Custom Made Fleshings $ $ 1,500.00 $ 2,000.00 $ $ Windows $ -®$ 16,000.00 $ $ - le` 1 :_ $ 444.44 Single Glass Patio Doors $ -$ 10,000.00 $ -$ -$ s 277.78 Unit Entry Doors HM Frame,20-min Door,spring hinges F.$ 11,750.00 $ -$ -$ - &1'2 -'_$ 326.39 Interior Unit Doors Included in Finish Carp.Above $ - . $ -$ -$ -,M.M.M$ HM Commons&Hardware $ -$ 7,200.00 $ -$ -$ z g° $ 200.00 Storm Shelter Door $ 300.00 $ 3,500.00 $ -$ -$ - ._ o, _ $ 105.56 Front Entry Storefronts $ - $ -$ 3,500.00 $ -$ "E=FZIZE3.-Wa$ 97.22 Mirrors ®$ $$ 3 025 00 $ $ 84.03 Drywall $ - $ -$ 155,000.00 $ -$ °°,+: $ 4,305.56 Unit Carpet Konecto Flooring at Kitchens $ - $ -$ 78,000.00 $ -$ - ka 1 $ 2,166.67 Vinyl Flooring at laundry Included above $ - $ - $ -$ -$ i.4;' "..,„;;<'$ Unit Tile Tile at Unit baths ADD$5500 $ - $ - $ -$ -$ - ° : 4 $ $ - $ -$ 65,000.00 $ -$ - 6p00.0 $ 1,805.56 Painting ._ ,r'wa..m,.. .y,•. Plastic Laminate Countertops $ - $ -$ 28,500.00 $ -$ $ 791.67 Window Blinds $ - $ -$ 10,200.00 $ -$ - ,rx r°V:7''°,M4rTa s 283.33 Solid Surface Window sills $ 2,400.00 $ 3,800.00 $ -$ -$ - .s;lr, � $ 172.22 Bathroom Hardware $ $ 1,000.00 $ $ $ -$ 27.78 Description Notes Labor Materials Subcontracts Equipment/Other ,, I glh`71i'pwJeC Cost per Unit Miscellaneous $ -$ -$ -$ 8,000.00 $ $ 222.22 Access Panels $ 250.00 $ 700.00 $ -$ -$ * ".:,,:850".V $ 26.39 Signage Allowance Unit Signage By Owner,Address Only $ 500.00 $ 2,200.00 $ $ $ E �„ P '�"- $ 75.00 �§� �....? ..:�%t.�.�,.w�,,.,.,,..,.i.„.,fr�u..,c,�.�- .,.,,,,a -._,......._,..P,.nn�,.✓ .� a,.:..:::..... .._....�„�,.: ,,,�,z, ?.' ., .,,..::;,,..., .: -' ,,,.._, ..;.�_....... ...:.... u.. .ice.,. emu.,, __..�zm� ._:,.. ��._ ,,:,,r., z.,,r ^u &, zi Appliances $ 2,000.00 $ 75,550.00 $ -$ -$ 77 ,01 m„ ::$ 2,154.17 Elevator 8 $ $ $ 6 5,000.00 $ $ j s 1 OS 56 .w..v«.z iah...,...a.,M:SX ,.,.k...............s.3:�,ea w,. .w..,S...,, ✓,,, ,......». ....._ v„_...,_.............__c .. ..,_.,.: ,. .... '�.e...,,....,.,cw a,✓.,,�_. .. ,u nn ...-..>...sw<-- ,....r..w _..ew:.:7a Plumbing $ -$ -$ 22 9,000.00 $ $ d' ,..$ 6,361.11 Fire Sprinkler $ -$ -$ 5 0,000.00 $ -$ $j ,";'t ,,`"$ 1,388.89 HVAC $ $ $ 18 2,000.00 $ $ t,a s Electrical $ -$ -$ 20 0,800.00 $ -$ - 4 $ 5,577.78 r ill l& Survey&layout services Allowan $ - $ - $ $ I^ 0 Transformer fee $ - $ - $ - $ 3,240.00 334000 $+'.u? °m s$ 90.00 OPPD Transformer relocation transformer and overhead relocation $ - $ - $ 15,000.00 $ -1' 00 ds r"I"1^. w' `,.„Q,$ 416.67 MUD Charges $ - $ - $ - $ 5,500.00 5600 00 1~ f ., 00 :.i$ 152.78 Sewer Impact Fee Not sure if applicable $ - $ - $ - $ -- _. -Z;'?$ Concrete and soils TestingAllowance Environmental Testing $ - $ - $ $ 250000 -$, z 3}0 ' 'M$ 208.33 40,00,00 -$ ,r- 1-000 ` v $ 111.11 Site Excavation&Backfill $ - $ - $ 70,000.00 $ 7000009 _W0: tx :$ 1.944.44 Site demolition $ - $ - $ 72,650.00 $ -72650100 ,-, �° < $ 2,018.06 Site Utilities $ -$ -$ 38,000.00 $ -360040iF -Wt23 9Mat.t$ 1,055.56 Stormtec Detention system $ -$ -$ 55,000.00 $ -000:0,99,1t ,i -$ W4,0. $ 1,527.79 Retaining Wall East property line $ -$ -$ 76,000.00 $ -7$000c00 .- , -$ 44' iJAO r $ 2,111.11 Water and Sewer Connections $ -$ -$ 750.00 $ -7$9,* , -6 � O.4 ;$ 20.83.i .r Site Paving $ -$ -$ 40,000.00 $ -$ 5 t $ 1,111.11 Additional Parking in front Tear out and replace $ -$ -$ 19,500.00 $ .n$,,p 003 ; _ a 41.,0* $ 541.67 Adjustment of utility shutoffs and valves Allowance -$ -$ -$ - $ 500.00 500.00 -$-:40500 z ;$ 13.89 Landscaping,Inigation&Sod Allowance $ - $ - $ $ -$ z?4n. Og „, $ 138.89 Landscaping,Inigation&Sod in ROW City street frontage $ - $ - $ 15,000.00 $ 15,000-00 -$ K-0;i000ll ...«$ 416.67 Fine Grading 8,500 SF $ - $ - $ $ $.0:0 a, -*:41.' � $ 83.33 Additional gravel fill $ 2$ 1,000.00 $ - $ - 0( i Jnc Parking Lot Shipping 1e ',i .Qb4 $ 27.78 $ -$ -$ 1,100.00 $ - -$"$ ».-y ',$ 30.56 Joint sealant $ -$ -$ 4,500.00 $ :100004 - '`MS d,Stl¢,476,,,,,,,, $ 125.00 Silt Fence&Erosion Control Monitoring $ 1,500.00 $ 1,500.00 $ 1,350.00 $ A35400210r'-- '$ 120.83 Site Lighting $ $ $ $ _$FF, . . -l �, Subtotals $ 105,350.00$ 746,985.00 $ 2,072,475.00 $ 65,240.00 $ -$14,:',48,9004:00.9$ 83,056.94 Contractor P&OH(5.5%) -$ 7,374.50 $ 52,288.95 $ 14 5,073.25 $ 4,566.80 $ -$"' rj ' £i S "`;r.$ 4,568.13 Construction Budget 112,724.50 799,273.95 2,217,548.25 69,806.80 $_„ ,. i1$00275s $ 87,625.08 T00 ''QJrGtCd'T glilgf1YlE,A 7.0 ti0 TIF Impact on Financial Pro Forma Annual Operating Income(Net): $228,288.00 without TIF with TIF Amount Financed $3,417,158.00 $2,900,000.00 Net Operating Income(from above) $228,288.00 $228,288.00 Annual Debt Service -$257,970.00 -$218,929.00 Annual cash flow -$29,682.00 $9,359.00 Debt Coverage Ratio* -0.88 1.04 ROI (annual)* -6.66% 2.10% *Without TIF,debt service coverage is insufficient to obtain a loan,and the return on invested equity is likewise inadequate to attract investors. Mutual ofnmahaBank (:), . Craig S.Lefler 17041 Lakeside Hills Plaza Senior Vice President Omaha,NE 68130 Manager Commercial Relationship Banking r402.991.8579 F402.778.9282 craig.lefler@mutualofomahabank.com rnutualofomahabank.com November 12,2013 David Kain Properties, L.L.C. Mr. David Kain,Owner P.O. Box 4066 Omaha,NE 68104 RE: Tax Increment Financing for the proposed Multi-Family Project located at 617 S. 31s' Omaha,NE Dear Mr. Kain: Mutual of Omaha Bank would have an interest partnering with your group for the financing of the proposed Multi-Family Project described above.The financing package would include the Tax Increment Financing("TIF")with an amount to be determined.To that end,this letter is an expression of interest only,and it is not a contract,commitment nor intent to be bound. Lender does not intend that this letter or discussions relative to the terms of this letter create any legal rights or obligations, implicit or explicit, in favor of or against the other party. Amount: To be Determined Term: Up to 15-years Rate: 5.25-5.75%Fixed for five years,then adjusted every five years at 5-Year Constant Yield Maturity Treasury+3.25-3.75%with a floor of 5.00%- 5.25%. Repayment: Interest only during initial 24-months,then principal and interest due semi-annually,June ls`and December ls`, based on a 13-year amortization If you have any further questions, please contact me at your convenience.We look forward to a mutually beneficial relationship. Sincerely, Craig Lefler Senior Vice President EXHIBIT E • r Member FDIC a Equal Housing Lender MutualafOmahaBank0 Craig S.Lefler 17041 Lakeside Hills Plaza Senior Vice President Omaha,NE 68130 Manager Commercial Relationship Banking 7402.991.8579 F 402.778.9282 raig.letter@mutualofomahabank.com mutualofomahabank.com March 24,2014 David Kain Properties,L.L.C. Mr. David Kain,Owner P.O.Box 4066 Omaha,NE 68104 RE:Tax Increment Financing for the proposed Multi-Family Project located at 617 S. 31' Omaha,NE Dear Mr.Kain: Mutual of Omaha Bank would have an interest partnering with your group for the financing of the proposed Multi-Family Project described above.The financing package would include a commercial real estate construction loan of approximately$2,900,000 and a Tax Increment Financing("TIF")with an amount to be determined.To that end,this letter is an expression of interest only,and it is not a contract,commitment nor intent to be bound.Lender does not intend that this letter or discussions relative to the terms of this letter create any legal rights or obligations, implicit or explicit, in favor of or against the other party. Amount: Construction Loan: Estimated at$2,900,000 TIF Loan: To be Determined Term: Construction Loan: 5-years TIF Loan: Up to 15-years Rate: 5.25-5.75%Fixed for five years,then adjusted every five years at 5-Year Constant Yield Maturity Treasury+3.25-3.75%with a floor of 5.00%- 5.25%. Repayment: Construction Loan: Interest only payments during the initial 24-months; then,principal and interest payments due monthly based on a 25-year amortization. TIF Loan: Interest only during initial 24-months,then principal and interest due semi-annually,June Ix'and December 1'',based on a I3-year amortization Collateral: I"Deed of Trust and Assignment of Rents on 617 S.31'`,Omaha,NE. Assignment of TIF Development Agreement and Promissory Note from the City of Omaha. Member FDIC CI Equal Housing lender Loan Fee: 1%of loan proceeds. If you have any further questions,please contact me at your convenience.We look forward to a mutually beneficial relationship. Sincerely, t Craig Letler Senior Vice President ID 0 cask Task Name Duration Start Finish July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015.__. April 2015 _ 1 s Project Mobilize 0.5 wks Mon 7/28/14 Wed 7/30/14 g, 2 3" Demolition 1 wk Fri 8/1/14 Thu 8/7/14 i - 3 Grading 1 wk Fri 8/8/14 Thu 8/14/14 4 Foundation/Underslab 4 wks Fri 8/15/14 Thu 9/11/14 ! 076; +.`l-: 5_.___._,.. srr Framing 7 wks Fri 9/12/14 Thu 10/30/14_! �. FT,e• •,�•' - •-• -s- -.v 7, 6 le Rough-Ins 7 wks Fri 10/31/14 Thu 12/18/14 7 Drywall 5 wks Fri 12/19/14 Thu 1/22/15 E } 8 Finishes 10 wks Fri 1/23/15 Thu 4/2/15 ° " Inspections/Turnover 1 wk Fri 4/3/15 Thu 4/9/15 . : E.Li m x CO IIIMMINIMMOO Task iiiiia- --iaiiiitaiisiaa Project Summary -...--------4---------...- Inactive Milestone -` Manual Summary Rollup a.. -'----- Deadline 4 Project:Ekard Court Split - - External Tasks ..-..- Inactive Summary - - � Manual Summary liggassimaziaziagp Progress ,"" Date:Tue 2/4/14 Milestone .l External Milestone Manual Task r , -.-i Start-only C Summary Inactive Task Duration-only - .... Finish-only 7 Page 1 Corporation Inquiry Page 1 of 3 Page 1 ARTICLES OF ORGANIZATION 1IIIIII IIIII IIIII IIIII IIIII IIIII IIIIIIII LIMITED LIABILITY COMPANY 008DAVI523N vROPERTIEe. LLO Pa; 3 Submit in Duplicate Flied: 12/10/2004 02:07 PM John A.Gale,Secretary of State Room 1301 State Capitol,P.O.Box 94608 Lincoln NE 68509 (402 471-4079 Name of Limited Liability Company:DAVID KAIN PROPERTIES,LLC Name must contain the words limited liability company, ltd. Liability company, ltd liability co.,L.L.C. or LLC as the last words of the name Period of Duration perpetual (may be perpetual) Purpose for which the limited liability company is organized: to engage in any and all lawful business for which a LLC company may be organized under the law of the State of Nebraska, induding but not limited to the buying, selling, owning, and managing of residential and commercial real estate, and to conduct or promote any lawful businesses or purposes within Nebraska or any other jurisdiction which a limited liability company is legally allowed to conduct or promote. Principal place of business in Nebraska:5110 Chicago Street,Omaha,NE 68132 Name and address of registered agent in Nebraska:David Kain,5110 Chicago Street,Omaha,NE 68132 The total amount of cash contributed to stated capital of the LLC$ 50 a' o o Description and agreed value of property other than cash contributed to stated capital: Description of Property Agreed Value EXHIBIT ♦ https://www.nebraska.gov/so s/corp/corpsearch.cgi?orderid=6952602&pin=5 5 727318&docn... 2/3/2014 Corporation Inquiry Page 2 of 3 Page 2 • LLC ARTICLES OF ORGANIZATION(Continued) Total additional contributions agreed to be made by all members and the times at which,or events upon the happening of such,such contributions shall be made: Members shall or shall not have the right to admit additional members(check) If additional members are allowed the terms and conditions of admission: The company will be managed by managers or v members(check one). List the name and address of the managers or,if the management is reserved to the members,the name and address of the members: Name Address David Kain 5110 Chicano Street.Omaha.NE 68132 Attach additional pages if needed for additional managers or members. If the LLC has more than one class of membership please attach additional pages with the name or description of each dass of membership and the names and addresses of the members in each class. https://www.nebraska.gov/sos/corp/corpsearch.cgi?orderid=6952602&pin=55727318&docn... 2/3/2014 Corporation Inquiry Page 3 of 3 Page 3 LLC ARTICLES OF ORGANIZATION(Continued) Any other provisions, not inconsistent with law,which the members elect to set out in the articles of organization for the limited liability company: Only ego is uired,additional persons may sian:, Signature Signature n A-tl,D x h-it Printed Name Printed Name Signature Signature Printed Name Printed Name Signature Signature Printed Name Printed Name FIUNG FEE: $100.00 plus$5.00 per page and$10.00 for certificate of organization. https://www.nebraska.gov/so s/corp/corpsearch.cgi?orderid=6952602&pin=5 5 72 7318&docn... 2/3/2014 DAVID KAIN PROPERTIES, LLC, a Nebraska limited liability company UNANIMOUS CONSENT OF MEMBERS IN LIEU OF MEETING The undersigned, constituting all of the Members of David Kain Properties, LLC, a Nebraska limited liability company, in lieu of a meeting, do hereby consent to an approve the following resolutions and actions, waive any requirements of a meeting or notice thereof, and waive any rights which we have to dissent from such actions: RESOLVED: That David Kain Properties, LLC, (the "Company"), is hereby authorized to enter into a Redevelopment Agreement with the City of Omaha (the "Redevelopment Agreement") for Tax Increment Financing (TIF) relating to the Company's property known as Ekard Court and located at 617 S. 31 st Street in Omaha, Nebraska (hereafter "the Property"), upon such terms as may be agreed upon by the Company and the City; and it is FURTHER RESOLVED: That David Kain as Manager of the Company is hereby authorized and empowered in the name of and on behalf of the Company to execute and deliver to the City all such documents as may be required by the City for said TIF for said Property, including but not limited to the Redevelopment Agreement; and it is FURTHER RESOLVED: That the members hereby agree that this unanimous consent may be executed in counterparts, each of which, when taken together, shall be deemed one fully executed original; and it is FURTHER RESOLVED: That the members hereby agree that a copy of this document, or any portion thereof that bears a signature of a member, may be transmitted electronically or by facsimile, and said electronic or facsimile signature of a member shall have the same binding force and effect as an original signature of the member. The members hereby agree that the members of the Company and any other person may rely upon a copy of any signatures that are delivered electronically or by facsimile as if such signatures were originals. A member executing and delivering this document electronically or by facsimile shall promptly thereafter deliver a counterpart signature page of this document containing said member's original signature. The undersigned hereby certify that all of the members of the Company have executed this unanimous consent, and it is effective as of February ZU , 2014. MEMBERS: By: ` eC By: David Kain, Member Lynn L. EspelanjMember Place Ad Here NOTICE TO PUBLIC Proof of publication NOTICE OF PUBLIC HEARING ON THE EKARD COURT TAX INCREMENT FINANCING(TIF) REDEVELOPMENT PROJECT PLAN AFFIDAVIT Notice is hereby given that the Omaha City Council has set Tuesday,June 24,2014 at 2:00 p.m.as the date of Public Hearing on the Reso- lution approving the Ekard Court Tax Incre- ment Financing (TIF) Redevelopment Project Plan. State of Nebraska, County of Douglas, ss: The Ekard Court TIF Redevelopment Project Plan,located at 617 South 31st Street,contem- plates the completeres demolind tion emooiliti the a i new Kiley Petersen,being duly sworn,deposes and says that he/she is an employee of multi-family structure aon constructionre-silsty The pro- The Omaha World-Herald, a legal daily newspaper printed and published in the posed building will be four-story structure with 36 market-rate apartment units(28 one- bedroomingstalls unwill ts band vid d on-site,00m units).an Park- county of Douglas and State of Nebraska, and of general circulation in the Park- ing will be provided with an addi- tional ten on-street parking stalls converted to back-in diagonal parking.The Planning Board recommended the approval of this redevelop- Counties of Douglas, and Sarpy and State of Nebraska, and that the attached ment project plan at the May 7, 2014 public nearing. printed notice was published two consecutive weeks in the said newspaper the The Plan recommends that the City participate in the redevelopment of the pproject site through the allocation of up to$517,158.00 in first insertion having been on June 5,2014 and thereafter on June 12, 2014, and TIF to offset TIF eligible costs,whhich includes $15,000.00 of the TIF proceeds/loan toward ad- ditional co reetscsts are pinestg in thed b$3.8The 1total t l that said newspaper is a legal newspaper under the statutes of the State of A copy of said plan is available for public in- Nebraska. The above facts are within my personal knowledge. The Omaha spection In the City Clerk's Office. The Public Hearing will be held before the City World-Herald has an average circulation of 132,416 Daily and 165,454 Sunday, Council of the City of Omaha on June 24,2014, at 2:00 p.m. in the Legislative Chambers, Omaha/Douglas Civic Center, 1819 Farnam in 2014. Street,Omaha,Nebraska. Buster Brown City Clerk ALL REQUESTS FOR SIGN LANGUAGE INTERPRETERS(SIGNERS)WILL REQUIRE A MINIMUM OF 48 HOURS ADVANCE NOTICE. SI d IF ALTERNATIVE FORMATS ARE NEEDED, (Signed) Title:Account Executive REQUESTS WILL REQUIRE A MINIMUM OF 72 HOURS ADVANCE NOTICE. PLEASE NOTIFY SANDRA MOSES,(402)444-5552, IF ARRANGEMENTS NEED TO BE MADE. Subscribed in my presence and sworn to before me this pq day of June, 2014. flGEERALNoT4�'�Corr,� z, EITE P;Pr,h 78 ?^t Printer's Fee$ Affidavit Paid By 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 site located at 617 South 31st Street is within a designated community redevelopment area, as the area meets the definition of blight and substandard per the Community Development Law and is in need of redevelopment; and, WHEREAS, the Ekard Court Tax Increment Financing (TIF) Redevelopment Project Plan for the redevelopment project site was approved by the City of Omaha Planning Board at their May 7, 2014 meeting, and previously approved by the TIF Committee; and, WHEREAS, the project site is located at 617 South 31st Street and is legally described in Exhibit"A"which is attached hereto and herein incorporated by reference; and, WHEREAS, the Ekard Court Tax Increment Financing (TIF) Redevelopment Project Plan proposes the complete demolition and removal of the existing two structures, and the construction of a new multi-family apartment structure consisting of 36 market-rate units and parking on site as described in Exhibit "B", attached hereto and herein incorporated by reference; and, WHEREAS, this Resolution seeks approval of the Ekard Court Tax Increment Financing (TIF) Redevelopment Project Plan recommends the City's participation through the allocation of TIF in an amount up to $517,158.00 to offset TIF eligible costs such as acquisition, site work, architectural and engineering fees, and any required public improvements, which includes $15,000.00 of the TIF proceeds/loan toward additional streetscaping in the area for a project with total estimated costs of$3,863,014.00; and, 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, By Councilmember Adopted City Clerk Approved Mayor NO. Resolution by Presented to City Council &ter grown, City Clerk C-25A CITY OF OMAHA LEGISLATIVE CHAMBER �. Omaha, Nebraska Page 2 WHEREAS, Section 18-2108 of the Nebraska Revised Statutes requires the Gy 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 Ekard Court Tax Increment Financing (TIF) Redevelopment Project Plan located at 617 South 31st Street which proposes the complete demolition and removal of the existing two structures, and the construction of a new multi-family apartment structure consisting of 36 market-rate units and parking on site, recommends the City's participation through the allocation of TIF in an amount up to $517,158.00 to offset TIF eligible costs such as acquisition, site work, architectural and engineering fees and any required public improvements, which includes $15,000.00 of the TIF proceeds/loan toward additional streetscaping in the area, but is 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: Sit 2�►� DEPUTY CITY ATTORNEY DATE 2016 dlh By I 11^ . Couu7ncilmember Adopted JUN 2 4 2014 !... -Q .. .. .. .. .... ....... . City Clerk a® Approved Mayor NO. 4 PI Resolution by Res. that, the attached Ekard Court Tax Increment Financing (TIF) Redevelopment i Project Plan located at 617 South 31st Street which proposes the complete demolition and removal of the existing two structures, and - the construction of a new, single multi-family apartment structure consisting of 36 market- rate units and parking on site, recommends the City's participation through the allocation of TIF in an amount up to $517,158.00 to offset TIF eligible costs such as acquisition, site work, architectural and engineering fees and any required public improvements, which includes $15,000.00 of the TIF proceeds/loan toward additional streetscaping in the area, but is 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. ,r' 2016 dlh Presented to City Council JUN - 3 20`4 // y / �z 7") ,z z[ r/:ram /%r;�6/34� �� c... '> lo) C ,J -/ JUN 2 4 2014 Adopted 7 i &Ater grown City Clerk