RES 2004-0839 - Courtland Place #1 LLC TIF redevelopment planrYPg , RECEIVFD Omaha/Douglas Civic Center
"" r� �,. 1819 Farnam Street,Suite 1100
�T�f`ii&i Omaha,Nebraska 61100
. y ; ' l r, 04 JUN 23 A 4 f0: 0
.pA ti� (402)444-5150-
• i r y CLERK
,[[ ����!'y}, Telefax(402)444-6140 .
OA440 AEs03 L.k.;R K
Robert C.Peters
• fA� A, AS? 4
City of Omaha O NEB Director _ .
Mike Fahey,Mayor
• June 29, 2004
Honorable President • •
and.Members'of the City Council,
•
The attached proposed Resolution transmits the COURTLAND PLACE NO.1, LLC Tax
Increment Financing Redevelopment Plan for your review and approval. The plan provides the -
. . framework for the development of the 3.9-acre site. This site, on the southern boundary of the
Old Market bordered by 12th Street, Leavenworth. Street,, 11t' Street and the UP railroad tracks, is
located in and contributes to the Omaha Rail and Commerce Historic D_ istrict.•The property will
be developed into RAIL LINE ROWS-83 Rowhouses • -"
•
The development of this type of housing at this'site will continue the excitement and emphasize •
the significance of this development occurring in,Downtown Omaha. It will promote the
• etevelopment of new upper-end housing ownership opportunities in an area of the City that had .:
net -experienced this growth. There have been other projects that were implemented in the
general area; however, this site remained as a negative asset in its undeveloped condition. The
.co*npleted project will provide a new location for-residential home,ownership opportunities that
will add increased real estate value to,the-site;increasing the tax base of the local taxing entities,
will add new employment opportunities and foster the continued development in this area.
The plan authorizes the use of Tax Increment Financing as a tool to assist in financing the 'vital
project cost of$31,447,000.. The TIF eligible expenses associated with the project are esti uated .
at $3,900,000. The project' hard cost is estimated to be approximately $24,900,000. The
developer has,requested $2,750,000 in TIF.that wilt be repaid from the increase in taxes as a
result of project completion. The project is. in compliance with Nebraska community
Development law and appropriate City of Omaha Ordinances.
Your favorable consideration of this Resolution is-requested.
Sin rely, Referred to City Council for Consideration:
• ' ; / .. . , ' ; ,. "/"2-75,----: - 2-1-0 ,.t. . ..
Robert C. Peters H - t C Mayor's Office Date •
Planning Director •
Approved as to Funding: ' - oved:
CL,...„.4, 0,,c66t,_ colh.,104 ,.
, - k/7.0.A.,.
Carol A. Ebdon Date Norm Jackman . Date
Finance Director Acting Public Works Pirecter
•
•
Notice of Publication and Public Hearing: July 1 and July 8,. 2004
Public. Hearing: July 20, 2004
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EXHIBIT "A"
COURTLAND PLACE NO. 1 , LLC
Tax increment Financing
Redevelopment Project Plan
RAIL LINE ROWS - 83 ROWHOUSES
11th to 12TH @ LEAVENWORTH STREET
OMAHA, NEBRASKA
May, 2004
11
i01clikARA,NF
�I 6�iiii,
O,p'1'RD FE130* PLANNING • OMAHA
Mike Fahey, Mayor City of Omaha Robert C. Peters, Director
Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha, Nebraska 68183
15
CASE: C3-04-147
APPLICANT: Bluestone Development LLC
REQUEST: Approval of the COURTLAND PLACE NO. 1 LLC TAX INCREMENT
FINANCING REDEVELOPMENT PROJECT PLAN RAIL LINE ROWS
• - 83 ROWHOUSES
LOCATION: Between 11th & 12th Streets on the south side of Leavenworth Street
SUBJECT AREA IS SHADED -JUNE 2004
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INDEX
Page
Introduction 1
Project Description 2-5
Development Financing Plan 6
Statement And Demonstration That The Project
Would Not Proceed Without the Use of
Tax Increment Financing 7
Evidence that the Project Meets Evaluation Criteria 8
Cost Benefit Analysis 9
Infrastructure 10
Development Schedule 11
Appendix 1 12
INTRODUCTION
At the request of Bluestone Development, L.L.C., Tracy Cross & Associates, Inc. was retained
to furnish an independent analysis of Omaha's housing environment in order to determine the
market potential for various forms of residential development within selected sites in downtown
Omaha. Such urban markets in Denver, Kansa City, and Minneapolis have experienced a
redevelopment of their cores that have out paced Omaha without the vast public and private
partnerships - that is until now.
Every city has a market, but not every city can expand with new housing at a pace Omaha will
see in the next five years. Bluestone Development's continuous study of Omaha over the last
five years has allowed it to position itself for the next wave of product, such as for-sale condos/
townhomes.
Specifically, this analysis, which focuses first upon opportunities in the for-sale sector and
second upon development possibilities in the rental sector, established the following:
❑ An assessment of the residential growth potential of the Downtown Omaha market area
over the next five years based upon economic, demographic and household formation
forecasts developed for the Omaha metropolitan area as a whole, and the city of Omaha
in particular.
❑ Conclusions regarding the absorption potential of various loft condominium
development forms, while also considering other multi-family, for-sale or rental
apartment alternatives.
❑ Detailed development guidelines for various condominium and/or rental alternatives
deemed most suitable for market entry in the downtown area. These guidelines include
recommendations relative to unit size and mix, bedroom/bath mix, pricing and/or rent
structure and the level of features and amenities viewed as necessary to enhance an
individual development's absorption potential and overall level of economic return.
❑ A forecast of absorption rates at varying price/rent levels.
As a result of the study, various sites were identified as opportunities and became target projects
for Bluestone Development. To name a few:
1. Butternut building;
2. Union Pacific land;
3. Joseph Lawn & Garden building;
4. Kimball Laundry building
1
A. PROJECT DESCRIPTION
Rail & Commerce District of the Past
This site, on the southern boundary of the Old Market bordered by 12th Street,
Leavenworth Street, 11th Street and the UP railroad tracks, is located in and contributes
to the Omaha Rail and Commerce historic district. The district is significant to the
commercial development of Omaha as a wholesale/manufacturing area directly related
to passenger and freight rail lines running through the southeast portion of downtown
Omaha. The neighborhood was originally the main service provider to Omaha's retail,
commercial and financial center. However, the area began to deteriorate in the 1960's,
as businesses started moving west to the newer suburbs. Along with these closings came
an acceleration of deterioration in many existing buildings, a decrease in residential
living units, and a relative lack of entertainment and recreational facilities.
Rail & Commerce District of the Future
The principal axes of the Rail & Commerce neighborhood are 11th & 12th Streets, both of
which are focal points of the Old Market district. The emergence of what is becoming
an arts district is being created by such mainstays as Bemis Center for Contemporary
Arts, Jun Kaneko Studio, Lambrecht Glass Studio and the new Kaneko Museum, all
supporting the creation of an environment that attracts buyers who desire such culturally
rich neighborhoods. Additionally, within two blocks is the Old Market, which is a
vibrant retail and entertainment environment to serve the needs of residents of this
project and the surrounding community.
With 83 townhomes and 30 mid-rise units (future development), Rail Line Rows extends
the city's urban fabric into an area formerly occupied by warehouses and railroad yards
and creates a vibrant new neighborhood within walking distance of the Old Market. The
planners of Rail Line Rows have dedicated themselves to the creation of a complete
urban environment - a neighborhood that acknowledges the character of its past and
respects the needs of its residents now and in the future.
Planning Is the Key to a Successful Community
This project is being developed to provide its residents with open green spaces balanced
with keeping a high density feel found in older downtown neighborhoods. The green
space is complemented by creating homes of varying sizes and facades to break up the
typical city pattern of rows of identical housing. An effort was also made to allow for
views of the skyline from homes and outdoor vantage points all around the community.
Life at Rail Line Rows brings with it all the comforts and conveniences of city living:
proximity to major employers and all the downtown facilities, readily available public
transportation, walking distance to shopping and everyday necessities, plus a strong
sense of neighborhood that brings people together.
No other part of Omaha provides such direct access to the full variety of the city's
cultural and entertainment opportunities, the artistic riches of Bemis immediately to the
north, the exotic sights and flavors of the Old Market a few blocks beyond.
2
PROJECT DESCRIPTION
The design of these homes embellishes the qualities of older, more established Omaha
neighborhoods, while creating a link to the surrounding, gentrifying area. The
architecture is reinforced by strong masonry detailing throughout, with the use of
contrasting metals, punched accent headers, and traditional Flemish bond coursing.
Multiple face brick colors have been used to define corners and create interesting
compositions through the use of horizontal stone banding and over-sized metal bay
windows.
The three-story, masonry homes have floor plans that assure a home size and layout for
every lifestyle. Sizes ranging from 1,200 SF to 2,500 SF allow a mix of both income
and lifestyle demands — with high ceilings, a sense of yesterday's extravagant indoor
space, panoramic windows, individual roof top decks to overlook the whole expanse of
the downtown skyline, two parking stalls and individual entrances.
In addition to the rowhouse product, two mid-rise condominium buildings will most
likely be built after the completion of the rowhouses. These condos will be targeted
toward first time buyers with prices ranging from $150,000-$200,000. This product will
be designed for the Gen-X / Digital Kids. A high emphasis will be placed on minimal,
clean architecture with a high-tech look and feel.
Neighborhood Goal
One goal of this project is to establish a neighborhood feel that is diverse in income,
lifestyle, occupation, age, and simple outlook on life. In successful markets where
developers have created the true "urban melting pot", properties when resold have
sustained the best prices and the shortest time on the market. Within this project will be
an art gallery that the homeowners can lease out to local artists for shows or use as a
gathering place for the neighborhood.
Conclusions from the Tracy Cross & Associates Feasibility Study of Omaha:
Setting the Stage for Urban For-Sale Housing
In the last five years, major metropolitan areas around the country have experienced
considerable residential development in their downtown areas. In Denver, for example,
some 10 percent of all new residential development in the entire metropolitan area has
been focused in three downtown areas: Lower Downtown, or the LoDo area; in the
Golden Triangle south of Civic Center; and along or contiguous to 16th Street. In
Chicago, too, there has been considerable activity as during last year alone, townhome
and condominium sales volumes in its central core accounted for over one-third of all
multi-family for-sale activity in the entire metropolitan area and this year it is likely that
over 17 percent of the region's total residential activity will occur in the city.
3
What is needed?
• Five prerequisites for successful downtown area residential development can be
formulated:
❑ The regional economy must be strong and employment within the downtown
area must represent a large component of the region's total employment picture
and must be on the upswing whether now or in the not too distant future.
❑ The regional household profile must be balanced and comprised of all consumer
segments. Of particular importance to downtown development efforts, are
strong, regional representations by younger singles and couples as well as more
mature consumers, especially those householders aged between 55 and 64 years.
❑ The downtown area must possess a 24-hour, 7-day living environment where
consumers can readily find: 1) sources of employment nearby; 2) housing supply
that is within their limits of affordability; 3) varied venues of entertainment and
recreation in the form of theaters, restaurants, bars, cultural activity, and parks.
These three components are the pure essence of the work-live-play climates that
have secured the strongest urban housing markets in the country.
❑ By and large, rental development of scale in most successful downtown areas has
preceded townhome and condominium development of scale for three reasons.
First, renters, unconcerned with investment protection associated with home
ownership, can be attracted to an urban core solely by its proximity to
employment and sources of entertainment. Second, the critical mass created by
renters can be used to ensure the integrity of the urban core as an acceptable
living environment. And third, and by far most important, renters, being
younger, tend to form the nucleus for future townhome and condominium owners
in the later years of downtown development.
❑ While nearby venues of entertainment are important in creating the residential
character of a downtown area, these activity centers, which must be purposely
designed to attract local residents as well as tourists and others from the
metropolitan area as a whole, should not interfere with the entitlement of privacy
that residential consumers demand. This entitlement grows exponentially in
scale as renters become owners and as owners become older. For this reason,
successful downtown residential development tends to find rental development
nearer vibrant night time areas, while successful ownership forms tend to be
either farther removed or developed in areas where sources of entertainment are
much more sedate such as within a live theater district, an area of cultural
activity, or places of daytime social gathering.
Downtown Omaha possesses the vast majority of the requirements necessary for
successful downtown residential development. It has a strong economy, a balanced
demographic profile, is in its infancy as a 24/7 community, has limited suburban
competition, and has available vacant land or older manufacturing areas that could be
converted to residential use.
4
Downtown Omaha
• ❑ The Omaha World Herald Freedom Center, located at 13th Street and Capitol
Avenue, is a new $100 Million dollar printing plant and newsprint warehouse
facility. Completed in 2001, it includes $35 Million Dollars in corporate office
improvements.
❑ The First National Bank Tower is a 40-story; $200 Million Dollar office building
located at 14th Street and Dodge Street. Completed in 2002, it includes a total of
954,000 square feet featuring an adjacent three-story glass atrium winter garden.
❑ Union Pacific is currently building a 1.1 million square foot, 19-story office
building located between 14th and 15th Streets on Dodge Street. A new
headquarters will allow Union Pacific to move 500 workers from St. Louis and to
consolidate in one building the 4,000 corporate and railroad employees at various
locations throughout Omaha. Construction began in early 2002 with completion
scheduled for 2004.
The Riverfront Area
❑ A new $281 Million Dollar Qwest Convention Center/Arena was built north of
Interstate-480 aligned with the Missouri River. The convention center includes a
17,000-seat arena, covers 104 acres with 433 additional acres available for
expansion.
❑ The Gallup Organization has relocated its headquarters from Lincoln, Nebraska
to Downtown Omaha between Eppley Airfield and the convention center. The
60-acre tract is aligned with the Missouri River and allows for expansion at sites
to the south and to the west. Completed in 2003, the relocation is expected to
generate 650 new jobs in Omaha in the next three years.
❑ Omaha's riverfront is a major focus of expansion in the downtown area. Plans to
aesthetically improve the riverfront area include new hotels, a riverboat available
for public cruises and private parties, as well as improved landscaping along
Abbott Drive. A pedestrian bridge across the Missouri River is currently being
designed for 2005 completion.
5
•
B. DEVELOPMENT FINANCING PLAN
Use of Funds TOTAL
PURCHASE OF LAND $ 1,500,000
CONSTRUCTION COSTS 17,700,000
SOFT COSTS 5,700,000
REALLOCATION OF TIF TO CITY 300,000
FNBO LOAN PAY-OFF 5,200,000
RETURN OF EQUITY TO PARTNERS 1,047,000
PROFIT 378,480
TOTAL USES OF FUNDS $31,825,480
Source of Funds
FIRST NATIONAL BANK $5,200,000
CASH EQUITY FROM PARTNERS 1,047,000
TAX INCREMENT FINANCING 2,750,000
SALES OF ROWHOUSES/CONDOS 22,828,480
TOTAL SOURCES OF FUNDS $31,825,480
First National Bank
LOAN AMOUNT 5,200,000
INTEREST RATE 6.5%
TERM REVOLVING *
* The loan from First National Bank is a revolving construction loan. Disbursements
over the 27-month construction period will total approximately $12 Million with a
maximum loan at any given time of$5.2 Million. The construction loan will be drawn
upon during construction of each phase and will be paid down with the proceeds from
the rowhouse closings in each phase.
TIF Eligible Costs
Total Sitework Costs $2,100,000
Major site work categories:
Site utilities
Grading, cut & fill & compaction
Streets
Sub soil conditions
Sidewalks
Storm sewer
Retaining walls
Demolition
Fencing
Fire land
Foundations
Landscaping
Land Acquisition Costs $1,500,000
$3,600,000
Reallocation of TIF to City for historical street lights $300,000
$3,900,000
6
,C. Statement And Demonstration That The Project Would Not Proceed Without The Use
Of Tax Increment Financing.
Without the successful incorporation of Tax Increment Financing, it would not be
economically feasible to proceed with this project. TIF blended with equity forms the
critical basis for the remaining first mortgage construction loan to be economically
viable.
WITH WITHOUT
TIF TIF
Source of Funds
FIRST NATIONAL BANK * $5,200,000 $5,200,000
CASH EQUITY FROM PARTNERS 1,047,000 1,047,000
TAX INCREMENT FINANCING 2,750,000 0
SALES OF ROWHOUSES/CONDOS 22,828,480 22,828,480
TOTAL SOURCES OF FUNDS $31,825,480 $29,075,480
Use of Funds
PURCHASE OF LAND $1,500,000 $1,500,000
CONSTRUCTION COSTS 17,700,000 17,700,000
SOFT COSTS 5,700,000 5,700,000
REALLOCATION OF TIF TO CITY 300,000 0
FNBO LOAN PAY-OFF 5,200,000 5,200,000
RETURN OF EQUITY TO PARTNERS 1,047,000 1,047,000
TOTAL USES OF FUNDS $31,447,000 $31,147,000
Profit $378,480 ($2,071,520)
Return on Investment 10.0% NEGATIVE
(over 44 months)
* See explanation in Section B.
The total cost of the COURTLAND PLACE NO. 1, LLC Redevelopment project is
estimated to be approximately $31,447,000 with total construction cost of $24,900,000
for $175 per square foot. The Tax Increment Financing of$2,750,000 is based on project
hard cost of approximately $22,800,000 that generates approximately $406,296 in
annual taxes. The total amount of TIF eligible cost is estimated to be $3,900,000. The
TIF is projected to pay out over 12.5 years. The County Assessor will determine market
valuation and taxes base on the results from actual sales of the units that will set a base
line to establish value and taxes.
Summary Conclusion: Without Tax Increment Financing there would be insufficient
cash flow and partner return and the project would not be feasible. Therefore, the
partners have determined that they will not complete the project without Tax Increment
Financing.
7
D. EVIDENCE THAT THE PROJECT MEETS EVALUATION CRITERIA
• Dl: Mandatory Criteria
1. The project is located in the blighted area.
2. The project furthers the objectives of the City's Comprehensive Plan by
creating a diverse mix of housing types at all income levels. Omaha's
master plan includes residential infill development in targeted area for
diverse income levels. Supported by the feasibility study discussed in the
Introduction and Section A, this project fosters infill housing that is not
currently available in downtown Omaha.
3. The use of TIF will not result in a loss of pre-existing tax revenues to the
City and other taxing jurisdictions. This land was purchased from Union
Pacific Railroad. Historically, the land was centrally assessed with a $0
tax base. The real estate taxes generated related to the development of this
land will be a direct increase to the City.
4. This project would not be economically feasible without the use of Tax
Increment Financing (see Section C). TIF helps to reduce the risk related
to the undertaking of this pioneering residential concept in Omaha.
5. This land is currently vacant and will remain in that status until it is
developed. The project will turn vacant land into a useful part of Omaha's
downtown residential community. It will help to make downtown a more
stable community by bringing more permanent residents to the area.
D2: Discretionary Criteria
1. The project is located in the blighted area.
2. The land is in the Rail and Commerce District, a local landmark district.
3. The land displays conditions of blight. It is currently vacant and has had
some dumping. The land has been of limited value to the City with the
$0 tax base. The redevelopment project increases the value of the land by
adding new residential living.
4. The project involves the start-up of an entirely new business and creates a
housing type not currently available in the market.
5. The redevelopment site has historically had a$0 tax base.
8
COST BENEFIT ANALYSIS
• 1. The use of Tax Increment Financing will not result in tax shifts. The site was
owned by the Union Pacific Railroad and was centrally assessed reflecting a zero
valuation. The previous payment of taxes was un-determined because the
centrally assessed method did not reflect an actual assessment. A level of taxes
will flow to the taxing entities based on the sale of the property. Only the
increased value of revenues resulting from the improvements completed at the
site will be applied to the cost of the improvements. The County Assessor will
determine the current site valuation based on current sales information and set a
value for tax purposes. The tax stream established as a product of the sale will
continue to be collected and distributed.
2. There are no concerns with the need for or the availability of public
infrastructure. There are no community public service needs, impacts or local
tax impacts arising from this project. This new home ownership opportunity in
downtown is a market driven development and market forces will generate the
revenue stream to facilitate the development. There is no diversion of existing
taxes or increased demand for public services as a result of this project. The
service industry employment sector associated with the significant growth in the
"Riverfront Area" and downtown will generate increased demand for service
sector employees. Increased public transportation to accommodate that
expansion has been put in place by Metro Area Transit to provide and improve
regularly schedule public transportation service connecting Downtown Omaha,
Riverfront Development and Eppley Airport. A new transportation schedule has
been implemented and with increased rider ship the level of service will be
increased which will have a positive impact on this project. The capacity of the
infrastructure after development is more than adequate to serve any increased
demands. The increased value of the project site after completion of the
Rowhouse project and the creation of the new housing type in the downtown area
adjacent to the other significant developments justifies the use of Tax Increment
Financing to cover the cost of required public improvements.
3. This development project will not significantly impact other industries in the area
except to increase demand for construction and any manufacturing supplies that
are locally procured. There will possibly be a decrease in the availability of and
an increase in the demand for workers in the service and maintenance
employment sector as a result of the construction of the upscale housing that will
increase the demand for commercial space and related facilities. Also, there will
be demand for a higher level of personalized services to cater to this upper-end
new employment opportunity. This project will have a very positive impact on
employment and housing in the area and continue to expand the need for
additional supportive commercial and general retail services to meet the needs of
the growing residential population.
4. The development of this type of housing at this site will continue the excitement
and emphasize the significance of this development occurring in Downtown
Omaha. It will promote the development of new upper-end housing ownership
opportunities in an area of the City that had not experienced this growth. There
9
have been other projects that were implemented in the general area; however, this
site remained as a negative asset in its undeveloped condition. The completed
• project will provide a new location for residential home ownership opportunities
that will add increased real estate value to the site, increasing the tax base of the
local taxing entities, will add new employment opportunities and foster the
continued development in this area.
5. The site and abutting public rights-of-way are in a designated blighted and
substandard area and a current redevelopment project plan redevelopment area.
6. The project will further objectives of the City's Master Plan and will be catalyst
for other developments.
7. This project will develop property that is presently vacant. As a result, it will
eliminate the possibility of illegal dumping and environmental contamination that
may result from the illegal dumping.
8. During the TIF amortization period, the underlying real property will continue to
be taxed, based upon assessed value at the time the TIF financing is approved.
There are no tax revenues based on the prior ownership.
E. INFRASTRUCTURE
El: Public Improvements
Private streets will be developed in compliance with City of Omaha standards.
The City of Omaha Public Works Department may require improvements to
curbs, gutters and sidewalks abutting the public rights-of-way of 11th Street, 12th
Street and Leavenworth Street that provide access to the site. The current street
system in addition to the private streets to be developed will provide great access
to the site. Sanitary and storm sewers are located in the abutting right-of-way
and will be built, improved or extended to serve the project site as may be
required. All cost of these improvements will be funded through the TIF process.
E2: Zoning/Parking
The site was zoned from Downtown Service (DS) to Central Business District
(CBD). The site will be re-platted to accommodate the new single-family row-
house development. The CBD zoning does not mandate provisions for parking;
however, the concept of the development requires that adequate parking must be
provided to accommodate the homeowners, complement the development and
enhance the success potential of the project. Separate entrances and two parking
stalls will be provided for each unit.
E3: Utilities
Utilities are available at the site in the existing right-of-way. New utility services
will be extended, developed and installed as required contingent on the final
10
•
platting and design of the site. The costs of these improvements are the
responsibility of the developer and are funded through the TIP mechanism.
F. DEVELOPMENT SCHEDULE
Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep-
04 04 04 04 04 04 05 05 05 05 05 05 05 05 05
Sales
(stoup bri ng
Con ruc iou
Residents Move-In
Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan-
05 05 05 06 06 06 06 06 06 06 06 06 06 06 06 07
'Jt'Kt(y
Sales
;roundbreaking
(! iitru in
Residents Move-In
11
APPENDIX
General Contractor: Lund—Ross Constructors, Inc
Larry Lundquist
1112 North 13th Street
Omaha,NE 68102
402-342-2810
and
CPMI
Richard Janssen
100 East Grand, Suite 280
Des Moines, IA 50309
515-244-1166
Architecture: Pappageorge/Haymes Ltd.
George Pappageorge
814 North Franklin, Suite 400
Chicago, IL 60610
312-337-3344
Legal: Lieben, Whitted, Houghton
Slowiaczek&Dougherty
John Ellsworth
2027 Dodge Street
Omaha,NE 68102
402-344-4000
and
Fraser Stryker Meusey
Olson Boyer &Bloch, PC
Bob Rieke
500 Energy Plaza, 409 South 17th Street
Omaha,NE 68102
402-341-6000
Developer: Bluestone Development, LLC
Christian Christensen
11422 Miracle Hills Drive, Suite 400
Omaha, NE 68154
402-997-7511
P:\PLN2\14600maf.doc
12
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 downtown to eliminate conditions which are
detrimental to public health, safety and welfare, by developing vacant, underutilized property
within these areas; and,
WHEREAS, Bluestone Development identified and secured two lots from Union
Pacific Railroad totaling 3.9-acres located between 11t' & 12th Streets on Leavenworth Street in
downtown that is vacant and underutilized for the construction of a new type of downtown
residential housing(see Attachment 1 for complete legal description); and,
WHEREAS, the TIF Guidelines encourage the development of historical
properties and areas within the City; and,
WHEREAS, the site is on the southern boundary of the Old Market and is located
in and contributes to the Omaha Rail and Commerce historic district; and,
WHEREAS, Bluestone Development secured a independent market analysis of
Omaha's housing environment in order to determine the market potential for various forms of
new residential development in downtown; and,
WHEREAS, the completed market analysis provided a basis for the decision to
proceed with the development of RAIL LINE ROWS (83 ROWHOUSES) by COURTLAND
PLACE NO. 1, LLC; and,
WHEREAS, the COURTLAND PLACE NO. 1, LLC Tax Increment Financing
Redevelopment Plan designates and provides the framework to implement the RAIL LINE
ROWS (83 ROWHOUSES) TIF Redevelopment Project for the development of the site as
described in Exhibit"A", attached hereto and made a part hereof; and,
By
Councilmember
Adopted
City Clerk
Approved
Mayor
•
c-2sa , CITY OF• OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebraska
PAGE 2
WHEREAS, the approximately 3.9-acre Tax Increment Financing Redevelopment
project site is located within an area previously declared "blighted and substandard and in need
of redevelopment" by City Council Resolution and has been re-certified as blighted and
substandard; and,
WHEREAS, the COURTLAND PLACE NO. 1, LLC Tax Increment Financing
Redevelopment Plan provides for the use of Tax Increment Financing (TIF) for site acquisition,
off-site and on-site public improvements and other cost associated with site development; 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 attached COURTLAND PLACE NO. 1, LLC Tax Increment
Financing Redevelopment Plan for RAIL LINE ROWS (83 ROWHOUSES) was approved by
the City of Omaha Planning Board on June 2, 2004 as the TIF project implementation plan for
the development of the site identified as LOT 2 COURTLAND PLACE REPLAT 2 and LOT 2
COUTRTLAND PLACE REPLAT.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF OMAHA:
By
Councilmember
Adopted
City Clerk
Approved
Mayor
c^25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebraska
PAGE 3
THAT COURTLAND PLACE NO. 1, LLC Tax Increment Financing
Redevelopment Plan is the project implementation plan for the RAIL LINE ROWS (83
ROWHOUSES) TIF Redevelopment Project, as prepared by the Omaha City Planning
Department. The plan contains 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 the COURTLAND PLACE NO. 1, LLC RAIL LINE ROWS (83
ROWHOUSES) TIF Redevelopment Project Plan Area consisting of Lot 2 COURTLAND
PLACE REPLAT 2 and LOT 2, COURTLAND PLACE REPLAT as platted and recorded in
Douglas County, Nebraska, together with the adjacent rights-of-way, located between 11th and
12th Streets on the south side of Leavenworth Street.
APPROVED AS TO FORM:
kocr
(k-55 ( CITY ATTORNEY A E
P:\PLN2\14599maf.doc
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jrL 2 O 20� ouncilmember
Adopted -42
City Clerk
Approved e1/.
�� ��
Mayor
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'NOTICE TO PUBLIC" THE DAILY RECORD
NQTICE OF PUBLIC HEARING ON THE
COURT TAX PLACE OF Owl�/r � H �
NO.7 LLC TAXINCREMENT �
FINANCING REDEVELOPMENT PLAN
Notice is hereby given that the‘Omaha RONALD A. HENNINGSEN, Publisher
City Council has set Tuesday,July 20,2004
at 2:00 p.m. as the date of Public Hearing on PROOF OF PUBLICATION
the Courtland Place No. 1 LLC Tax Increment
Financing Redevelopment Plan.
The Cortland Place No. 1 LLC Tax Incre- UNITED STATES OF AMERICA,
ment Financing Redevelopment Plan 's
approximately 3.9 acres located between The State of Nebraska, SS.
11th and 12th Streets on Leavenworth District of Nebraska,
Street. The Redevelopment Plan is located
within an area declared blighted and sub- County of Douglas,
standard and in need of redevelopment. Cityof Omaha,
The Courtland Place No. 1 LLC Tax Incre-
ment Financing Redevelopment Plan pro-
poses the development of Rail Line Rows, LYNDA K.HENNINGSEN
consisting of 83 rowhouses.
The plan proposes $2,750,000 in Tax
Increment Financing. The total project cost being duly sworn,deposes and says that she is
is estimated to be$31,447,000. A copy of
said plan is available for public inspection in ASSOCIATE PUBLISHER
the City Clerk's Office. •
Public Hearing will be held before the City of THE DAILY RECORD, of Omaha, a legal newspaper, printed and
Council of the City of Omaha, in the Legisla-
tive Chambers,Omaha/Douglas Civic Center, published daily in the English language, having a bona fide paid
1819 Famam Street,Omaha, Nebraska. circulation in Douglas County in excess of 300 copies, printed in
BUSTER BROWN,
City Clerk Omaha,in said County of Douglas,for more than fifty-two weeks last
ALLR REQUESTSTES(SIGNERS)FOR SIGNWILANGUAGE past; that theprinted notice hereto attached was published in THE
INTERPRETERS WILL REQUIRE A
MINIMUM OF 48 HOURS ADVANCE NOTICE. DAILY RECORD,of Omaha,on
IF ALTERNATIVE FORMATS ARE NEEDED
ALL REQUESTS WILL REQUIRE A MINIMUM July1 and 8, 2004
OF 72 HOURS ADVANCE NOTICE.
PLEASE NOTIFY TAMMY BIODROWSKI -
444-5553, IF ARRANGEMENTS NEED TO BE
MADE
•
h7-1&8-04
Rif( per during that time was regularly published and
ogiteratoirci in the Coun of Dou 1 d State of Nebraska.
G��TtKgt ` � l
dn�
•
NOTARY •
ribed in my presence an orn to before-.,
ON
P1 lish$rr')e i $' u 6 me this 8th 1 day of
•
July , 04
• 00 Coe?. 20
Notary Pu, Van
, ,gas County,
ate o •,raska
I . PROOF OF PUBLICATION
"NOTICE TO PUBLIC"
NOTICE OF PUBLIC HEARING
NO.1 LLC TAX Ilt THE NCREMENND TS
FINANCING AFFIDAVIT
REDEVELOPMENT PLAN
Notice is hereby given that
• I the Omaha City Council has
set Tuesday,July 20,2004 at State of Nebraska, County of Douglas, ss:
• 2:00 p.m. as the date of
Public Hearing on the
Courtland Place NO. 1 LLC
Tax Increment Financing
Redevelopment Plan. n
The Courtland Place No. 1 Trawn Griffin
LLC Tax Incrementi ,being duly sworn,deposes and says
Financing Redevelopment
I Plan
is
approximately 1 3.9 that he is an employee of The Omaha World-Herald, a legal daily newspaper
1 and 12th Streets on
LeavenRedevelopment PlanT`is printed and published in the county of Douglas and State of Nebraska, and of
located within an area
s bsta dardba dhIn need o general circulation in the Counties of Douglas and Sarpy and State of Nebraska,
redevelopment.
The Courtland Place No. 1 and t a t�h'"Q�'' attached printed notice was published in the said newspaper on the
LLC Tax Increment July
Financing Redevelopment I u , day of my A.D.,20, ,04�
Plan proposes the ' • ' y •
development of Rail Line
Rows, consisting of 83 and that said newspaper is a legal newspaper under the statues of the State of
rowhouses.
The plan proposes ' Nebraska. The above facts are within my personal knowledge. The Omaha
52,750,000 in Tax Increment
Financing.The total project ! 222,271 68 336
cost is estimated toto be World-Herald has an average circulation ofdaily2
S s 0avai ableptoropubl c
plannspection in the City I Sunday,in 20 04
Clerk's Office.
Public Hearing will be held
before the City Council of
the City of Omaha, In the Advertising
Legislative Chambers, I
Omaha/Douglas Civic I (Si. 'ed) .
Center,1819 Farnam Street,
I. Omaha,Nebraska.
Buster Brown
City Clerk r
ALL REpUESTS FOR SIGN
LANGUAGE INTERPRETERS Subscribed in my presence and sworn to before me this
(SIGNERS)WILL REQUIRE
MINIMUM OF 48 HOURS ADVANCE NOTICE.IF day of[ July
ul 20. 04•
{ ALTERNATIVE FORMATS ARE y
j NEEDED ALL REQUESTS WILL
I REQUIRE A MINIMUM OF 72
HOURS ADVANCE NOTICE.
PLEASE NOTIFY TAMMY
BIODROWSKI•444.5553,IF
ARRANGEMENTS NEED ^ /�
TO BE MADE— >O 1/ f/ J
Notary Public ' (/
t%'TC fl
Printer's Fee$ .,r" 'F`=_ RA L.MARCO
*.OE... *_ M,COMMISSION rXPIRES
Affidavit ''rim,
V awav Sept:inter 13,2007
Paid by -
•
313-G8-007