RES 2004-1375 - Sutherlands Plaza LLC redevelopment plan �F otAAHA,yt,.4,..
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�� RECEIVED Planning DepartmentZ"1``1 �Y Omaha/Douglas Civic Center
T yidsuc0
U N . 1819 Famam Street,Suite 1100
O®r' !il 1I� S 014 OCT 22 PM 2: 02 Omaha,Nebraska 68183-0002
tot (402)444-5200
41WD FEB�Vreyry CITY CLERK (402)444-5150
}� I e £ Telefax(402)444-6140
City of Omaha tEinkICA
� ,OMAA Robert C.Peters
Mike Fahey,Mayor I Director
November 2, 2004
Honorable President
and Members of the City Council,
The attached proposed Resolution approves the Sutherlands Plaza, LLC Redevelopment Plan to
create a mixed-use commercial development at the site of the former Sutherlands Lumber
Company site at 2900 "L" Street. The project will require major street improvements and
community values enhancements including relocation of the "L" Street access road, replacement
of sidewalks and curbs and substantial landscaping.
The Plan, approved by the Planning Board on October 6, 2004 proposes that the City participate
in the development by providing $510,750.00 in Tax Increment Financing which will be used
entirely for the required public improvements and community values enhancements. The total
project cost is estimated to be $4,775,700.00 to renovate this blighted and substandard site and
restore it to productive use. This project will support other recent redevelopment in South
Omaha including the Stockyards Business Park and the Livestock Exchange Building.
Your favorable consideration of this Resolution will be appreciated.
Sincerely, Referred to City Council for Consideration:
7-\,., k is 'is / /,—Z a —o y
Robert C. Peters Date Mayor's Office/Title Date
Planning Director
Approved as to Funding: Approved:
- 6 (--- 16- /E--/ oy
Carol A. Ebdon Date Norm Jackman,P.E. Date
Finance Director Acting Public Works Director
P:\P LN 2\15 089 maf.doc
Notice of Publication and Public Hearing: November 4 and Movember 22, 2004
Public Hearing: November 30, 2004
Exhibit "A"
SUTHERLANDS PLAZA LLC
"L" STREET AND DAHLMAN AVENUE
REDEVELOPMENT PLAN
OCTOBER, 2004
4.OF.4v Fb�
711,!<« '-irtif
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AtlEzild4o ry PLANNING•OMAHA
0�41WD FEB�Vt*
Mike Fahey, Mayor City of Omaha Robert C. Peters, Director
Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha, Nebraska 68183
SUTHERLANDS PLAZA L.L.C.
REDEVELOPMENT PLAN
"L" Street and Dahlman Avenue
PROJECT SUMMARY
This Redevelopment Plan proposes the redevelopment of the former Sutherlands Lumber
Company site at 2900 "L" Street. The project will require major street improvements and
community values enhancements including relocation of the "L" Street access road, replacement
of sidewalks and curbs, and substantial landscaping. Two dilapidated lumber yard buildings and
the existing embankment, road, and utilities will be demolished. Renovation of the main
Sutherlands sales building will create a new mixed-used strip center. New development will
take place on pad sites created by the demolition and by street relocation.
The renovated mixed-use strip center will house a Dollar General Store, Rod Kush Furniture
Store, self service laundry mat, Cash America pawn shop and other to-be-determined shops. The
proposed project includes construction of a new convenience store with related improvements.
Street relocation will create another new pad site which the Developers anticipate will be
developed for a bank or other retail or commercial service. A self-storage facility will be
developed on adjacent land though not included in this redevelopment proposal.
This project will require a zoning change from Heavy Industrial to Mixed Use; Replatting;
Mixed Use Development Agreement; Landscaping Plan; Sign Plan; and Demolition Plan. All of
these are being processed simultaneously with this Redevelopment Plan.
The project site is located in an area designated as Substandard and Blighted. Existing buildings
are vacant and deteriorated or deteriorating. The site has faulty lot layout and improper
subdividing with obsolete platting. Much of this irregularly shaped site is located below the
street grade level of both the "L" Street Viaduct and Dahlman Avenue.
With the costs of necessary public improvements and the limited economic viability of the site
due to its location, this project would have a negative return on investment without Tax
Increment Financing. The approval of TIF of approximately $510,750.00 as a portion of the
$4,775,700.00 total project cost will make it feasible to restore this site to productive use. Other
financing is committed including bank financing and equity capital. The entire amount of TIF
funds will be used for public improvements. The TIF will be retired over 15 years. Excess ad
valorem taxes resulting from the development would produce approximately $70,104.00 per
year. The owner will be responsible for all improvements on the project site including public
improvements and utilities.
The current Legal Description (Pre-Platting) (Partial legal description, as provided from the
Douglas County Assessor's Website):
1
LANDS SEC-TWN-RGE 04-14-13 IRREG W 300 FT STRIP ABANDONED RR RWY
DESC QC 2117/527 N OF "L" ST & S & E OF DAHLMAN AVE & BEING PT TL 18
LOCATED IN E1/2 NW1/4 & LOCATED IN W1/2 NE1/4 SEC 4-14-13 9.22AC
(PARCEL CONTAINS LEASED LAND #3000-1850-27)
Proposed Legal Description(Post-Platting of Sutherlands Plaza Subdivision- See Exhibit"A"):
Sutherlands Plaza, Lots 1, 2 & 3. Note: Lot 4 is not a part of this Redevelopment Area.
The excess ad valorem taxes from this project will be computed from the base tax value assessed
on this site for the year prior to the passage of this Redevelopment Plan. Attached exhibits show
the Proposed Plat which includes proposed zoning (Exhibit "A"); Site Plan and elevation
(Exhibit "B"); Landscaping Plan (Exhibit "C"); Sign Plan (Exhibit "D"); Demolition Plan
(Exhibit"E").
PROJECT DESCRIPTION
The Sutherlands Plaza L.L.C. project is an adaptive re-use of the former Sutherlands Lumber
Company site which is vacant and in deteriorating condition. The entire Sutherlands complex
constitutes an irregularly shaped 9.22 acres of ground of which the Project Site consists of a total
of 3.63 acres not including right of way to be dedicated to the City of Omaha. Much of the site is
located below the street grade level of both the "L" Street Viaduct and Dahlman Avenue which
poses a challenge to development.
This redevelopment project will require major street improvement, specifically, the relocation of
the "L" Street access road to improve safety and traffic flow. Damaged public sidewalks and
curbs will be replaced.
The Developer will demolish two dilapidated lumber yard buildings and the existing
embankment, road, and utilities.
The first phase of development will include the renovation and conversion of the main
Sutherland sales building into a multi-tenant retail strip center. The center will be anchored by a
9,000 square foot Dollar General Store and a 8,335 square foot Rod Kush Furniture Store, along
with a 3,500 square foot Cash America Pawn Shop and a 1,500 square foot laundry mat. Other
to-be-determined stores in the strip center will be in conformance with the proposed Mixed Use
Zoning designation.
The sale and development of a pad site for a new convenience store or other commercial retail
use will be the second phase of development. In the third phase, the out lot created by street
relocation will be developed. The Developers anticipate that a bank or other related retail or
commercial service will utilize this pad site.
2
In addition to the major public improvements, the Developer will provide significant community
value enhancements including substantial and appropriate landscaping and recreational features.
This project will contribute new retail and commercial development to the revitalization of this
formerly industrial area in South Omaha. This activity will support other development in this
area such as the Stockyards Business Park and Livestock Exchange Building. The new
businesses locating in this redevelopment will offer employment opportunities as well as provide
goods and services previously not available in this immediate neighborhood. Many of these
businesses intend to provide bilingual staff (English/Spanish) to serve the growing Spanish-
speaking marketplace.
DEVELOPMENT FINANCING PLAN SUMMARY
Sources of Funds
Primary Financing/Mortgage $1,900,000.00 40%
Tax Increment Financing 510,750.00 11%
Anticipated Pad Site Sales 750,000.00 16%
End Users Responsibility 1,296,750.00 27%
Equity - Developer 318,200.00 7%
Total Project Funding $4,775,700.00
Notes: Tax increment financing at 6.5%. The entire amount of TIF will be applied to Public
Improvements and Community Values Enhancements.
Uses of Funds
Land acquisition $1,065,000.00
Demolition 85,000.00
Site Work 240,000.00
Community Values Enhancements 387,450.00
Street Relocation/Public Improvement 283,000.00
Building Construction 2,200,000.00
Architectural 80,000.00
Engineering—Retail Facilities 50,000.00
Contingency 215,000.00
Other costs 170,250.00
Total Project Requirements $4,775,700.00
3
BLIGHT AND SUBSTANDARD CONDITIONS
The project site is an area previously designated as blighted and substandard. In the 2000 census,
the median year of construction of housing structures in this census tract is 1939 giving a median
age of 64 years. The per capita income in the census tract is $5492 lower than the city per capita
income. The site is improperly subdivided with obsolete platting. The existing buildings are
vacant and deteriorating or dilapidated and pose a potential fire threat due to proximity of
adjoining buildings. Current access road configuration and significant deterioration of
improvements on the site as well as vagrancy and rubbish pose safety and health hazards.
UTILITIES/TRANSPORTATION
Existing gas, water, electrical utilities and sewer adequately serve the project site. The developer
will be responsible for any new leads onto the site. The site is located on the "L" Street traffic
corridor immediately to the west of the viaduct over the rail lines at approximately 30th Street.
The site is on the north side of"L" Street and approximately four to five blocks from the Metro
Area Transit Stockyards Transit Center at 33`d and Babe Gomez,just south of"L" Street.
LAND USE/ZONING/PARKING
The Project Site is located within a commercial/industrial area of South Omaha. The
surrounding land uses consists primarily of retail, industrial, and commercial uses. Greater
Omaha Packing Company, the Stockyards Business Park and the Livestock Exchange Building
apartments are located directly south of the project site across "L" Street. Rail Car Nebraska and
railroad right of way are located directly to the east of the site. Property to the west is occupied
by a Petco retail store, and Stockyards Plaza with the Hy-Vee Grocery Store, Blockbuster Video,
Hardee's, First National Bank, and Cinemark Movie Theater. Carpenter Paper has a
commercial/industrial operation to the north and also there is more vacant property north of the
site.
The proposed land use and zoning comply with the Master Plan for this area. Compliance with
requirements for the proposed Mixed Use zoning designation including parking requirements
will be determined in review of the associated Sutherland Plaza Mixed Use Development. This
Redevelopment Plan authorizing the use of Tax Increment Financing is subject to requirements
of that Development Agreement.
COSTBENEFIT ANALYSIS
1) This use of Tax Increment Financing will not result in tax shifts. The current level of taxes
will continue to flow to taxing entities and only added value revenues resulting from the
improvements will be applied to the cost of the improvement.
4
2) No public infrastructure or community public service needs will arise from this project.
The site is adequately served with streets and other utilities and the area is served with
public transportation.
3) This tax incentive will be help to make this redevelopment project financially feasible for
the developer, considering the limited economic viability of the site and the costs of
necessary public improvements, this project would have a negative return on investment
and would not be feasible without TIF.
4) The proposed retail and commercial development will provide goods and services that are
not immediately available in this revitalization area. The nearest convenience stores or gas
stations along "L" Street are one mile east and two miles west. The new self-service
laundry mat will serve area residents, particularly those in the new apartments in the
Livestock Exchange Building as well as customers of the proposed shopping center. There
are no pawn facilities in the"L" Street corridor.
5) This project supports other recent development in this area including the Stockyards
Business Park and the newly restored Livestock Exchange Building which adds a
significant number of new residents. This redevelopment project will positively impact this
area with the restoration of this site to a productive use, providing job opportunities as well
as services for area residents. Additionally, many of the businesses locating in Sutherlands
Plaza intend to provide bilingual staff (English/Spanish) to serve the growing Spanish
speaking population in the area.
5
EXHIBIT "A"
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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 approximately 3.68 acre Sutherlands Plaza LLC Redevelopment
Area is located at"L"Street and Dahlman Avenue,specifically 2900"L"Street, (see Attachment 1
for complete legal description); and,
WHEREAS,this Redevelopment Plan is located within an area previously declared
"blighted and substandard and in need of redevelopment" by City Council Resolution No. 1445,
adopted June 2, 1992; and,
WHEREAS, Sutherlands Plaza LLC Redevelopment Plan is for the purpose of the
adaptive reuse of the site of the former Sutherlands Lumber Company as described in Exhibit "A",
attached hereto and made a part hereof; and,
WHEREAS,the Sutherlands Plaza LLC Redevelopment Plan provides for the use of
Tax Increment Financing for public improvements and community value enhancements; and,
WHEREAS,an Industrial Development Bond issue may be used in this blighted and
substandard area to assist with project financing; 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 under Sections 18-2147 through 18-2150, Revised
Statutes of Nebraska; and,
WHEREAS, the Sutherlands Plaza LLC Redevelopment Plan was approved by the
City of Omaha Planning Board on October 6, 2004.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OMAHA:
By
Councilmember
Adopted
City Clerk
Approved
Mayor
—
C-25A i
CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebriska
PAGE 2
' THAT, the attached Sutherlands Plaza LLC Redevelopment Plan, prepared by the
Omaha City Planning Department,containing a provision for the division of ad valorem taxes under
Section 18-2147 through 18-2150,Revised Statutes of Nebraska,be and hereby is approved as the
Redevelopment Plan for Sutherlands Plaza LLC Redevelopment Area at 2900 "L" Street.
A 'P' • ''- PAS TO FO'
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"Or vAr, (02: fy
CITY ATT• ' EY A 6/
PAPLN2\15088maf.doc
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By
Councilmember
Adopted
_- City Clerk
JOL4Later.'".72W/Approved
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'NOTICE CO EARING• N THE DAILY RECORD
NOTICE OF PUBLIC HEARING ON THE _
SUTHERLANDS PLAZA LLC '��//��A��'�
REDEVELOPMENT PLAN OF OMAHA
Notice is hereby given that the Omaha
City Council •2:0 p:m.,ueiday;;November RONALD A. HENNINGSEN, Publisher
30,2004 at2:00'p:m. as,the date of Public
Hearing on tl;e sutherIandS�Piaza LLC Red e- PROOF OF PUBLICATION
velopment Plan.
The Sutherlands'Plaza LLC Redevelop-
menthe
is located Plan,
at 2s 00 located Street. an UNITED STATES OF AMERICA,
Redevelopment Plan, is-located within an
area previously declared blighted and sub- The State of Nebraska,
standard and in need of redevelopment by SS.
the City Council. District of Nebraska,
The Sutherlands Plaza LLC Redevelop-
mentCounty ofDouglas,
Plan proposes the development of a 011ri yOu g
mixed-use commercial development. The City of Omaha,
project will require major street improve-
ments and community values enhance-
ments,including relocation.of the 'L' Street LYNDA K.HENNINGSEN
access road, replacement of sidewalks and
curbs and substantial landscaping. being duly sworn,deposes and says that she is
The plan proposes 8510,750 in Tax In-
crement Financing. The total project cost 6 ASSOCIATE PUBLISHER
estimated to be$4,775,700. A copy of said
plan is available for public inspection in the,City Clerk's Office. of THE DAILY RECORD, of Omaha, a legal newspaper, printed and
Public Hearing will be held before the City published daily in the English language, having a bona fide paid
Council of the City of Omaha, in the Legisla-
tive Chambers,Omaha/Douglas Civic Ce nter, circulation in Douglas County in excess of 300 copies, printed in
1819 Famam Street,Omaha, Nebraska.BUSTER BROWN, Omaha,in said County of Douglas,for more than fifty-two weeks last
• City Clerk past; that the printed notice hereto attached was published in THE
ALL REQUESTS FOR'SIGN LANGUAGE DAILY RECORD,of Omaha,on
INTERPRETERS(SIGNERS) WILL REQUIRE A
MINIMUM OF 48 HOURS ADVANCE NOTICE. November 4 and 11, 2004
IF ALTERNATIVE'FORMATS ARE NEEDED
ALL REQUESTS WILL REQUIRE A MINIMUM
OF 72 HOURS ADVANCE NOTICE,
PLEASE NOTIFY 1'AMMY BIODROWSKI -
444-5553,IF ARRANGEMENTS NEED TO BE " yy -
MADE during that time was regularly published and
-- ( cI1àt4ithe
CountyrIJ1•-.. So . crifed in my presence and swo before
gher's Fee $ • methis 11th day of
••nal;�f, 1 Of' Q, November 20 04
PgT4- tt ii. .01
Notary Pu r oounty,
to of Ne raska
- N" OTiCETOPUBLIf" PROOF OF PUBLICATION
1� `NOTICE OF PUBLIC HEARING
ON THE SUTHERLANDS
PLAZA LLC
REDEVELOPMENT PLANTS
Notice hereby given that ; AFFIDAVIT
the Omaha City Council has
set Tuesday,November 30,
' 2004 at 2:00 p.m. as the
daton
, thee uoft
Public Hearing LLC State of Nebraska, County of Douglas, ss:
Redevelopment Plan.
I
The Sutherlands Plaza LLC
Redevelopment Plan is
located at 2900"L"Street.
The Redevelopment Plan is Trawn Griffin located within an area
previously declared ,being duly sworn,deposes and says
blighted and substandard
and In need of
redevelopment by the City, that he is an employee of The Omaha World-Herald, a legal daily newspaper
Council.
The sutherlands Plaza LLC printed and published in the county of Douglas and State of Nebraska, and of
Redevelopment Plan
proposes the development I general circulation in the Counties of Douglas and Sarpy and State of Nebraska,
of a mixed-useesthecommercial I
development. The project
will require vee e n major street and that t h attached printed notice was published in the said newspaper on the
Improvements ands lG��
community values)
enhancements, Including 1 day of A.D.,20 ,
relocation of the"L"Street November' '04'
access road, replacement]
of sidewalks and curbs and and that said newspaper is a legal newspaper under the statues of the State of
substantial landscaping. I
The pla�c°re°rtPent Flnsan015 Nebraska. The above facts are within my personal knowledge. The Omaha
The total project cost is
estimatedy tof besa ,775,70. World-Herald has an average circulation of daily2 b
aAvailable for publan lic 222,271 L6o,336
inspection in the City Sunday,in 20.04.
Clerk's Office. I
Public Hearing will be held I
before the City Council of
S1
the City of Omaha,in the
g
I Legislative Chambers,
Omaha/Douglas civic (Si tie. -dvertising
Center,1819 Farnam Street, ,
Omaha,Nebraska.
Buster Brown
City Clerk • /f
ALL RE UESTS FOR SIGN (/
LANGUAGENG WILL REQUIRE INTERPRETERS Subscribed in my presence and sworn to before me this
MINIMUM ANCEF 48 NOTICERS day of November• • • •20 • • • •04
IF ALTERNATIVE FORMATS
•
ARE NEEDED ALL REQUESTS
WILL RE0 72 HOURS
ADVANCENIMUM
0
FF NOTICE.
PLEASE NOTIFY TAMMY
•
• BIODROWSKI•444-5553
IF ARRANGEMENTS ^/l1)
NEED TO BE MADE ! A
Nntary Plihlir
AA*, DEBRA L.MARCO
j °`" "`•s` MY COMMISSION EXPIRES
;Ho:,a,;
Printer's Fee$ "' flA9+ September 13,2007
Affidavit
Paid by
313-G8-007
•
•