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RES 2001-2163 - Village Development - 24th St LLC redevelopment plan . • H� RECEIVED QUA A NF ' o����� +Planning Department c, 5/ , 01 JUL 30 AtA 11: 1 `Omaha/Douglas Civic Center t, iL l n 1819 Farnam Street,Suite 1100 W®l' r ^mac Omaha,Nebraska 68183-0110 A ry CITY CLERK L RK (402)444-5200 O y�� r� HA' NEjRASKt (402)444-5150 rFD FEaR� August 7, 2001 Q M A Telefax(402)444-6140 City of Omaha Robert C.Peters Mike Fahey,Mayor Director M, Honorable President and Members of the City Council, The attached proposed Resolution approves the Village Development — 24th Street L.L.C. Redevelopment Plan for the development of a site at the Northeast corner of the intersection of South 24th Street and Vinton Street. The project involves the clearance of a blighted site and development of a commercial retail facility to be leased to Walgreens. The Plan, approved by the Planning Board on July 11, 2001 proposes that the City participate in the development by providing $355,000 in Tax Increment Financing. The total project cost is estimated to be $3,596,094. This project will contribute to the redevelopment of this area of South Omaha by replacing several out-dated and dilapidated structures as well as an area cluttered with garbage and debris with an open and attractive commercial development. Your favorable consideration of this Resolution will be appreciated. Sincerely, Referred to City Council for Consideration: /Lt.-- 7. Ao.ey ilev,..t_ 7/27/0I Robert C. Peters Date Mayor's Office/Tits Date Planning Director Approved as to Funding: Approved: r 4;1 / 7/29 n 2:6? ,( ^7 2 v Stanley P. T. rn Date Norm Jackman Date Finance Dir ctor Acting Public Works Director P:\PLN l\6024pjm.doc Notice of Publication and Public Hearing: August 9 and August 16, 2001 Public Hearing: August 28, 2001 ri jiv ATTACHMENT 1 I EMI k % 4r.. • 24TH-ST. ----•»a_-, _ I. ro._ - �.�. `.� I 24TH ST^_�s-�1 r 9 a .ovr�w•. - aaweni - w- /�-•-. o �. ..E• RI21 ud0'00' '.Y t:B.iE' i GL� 72i:' ,\^ ! ^Y,on«>Q / I d NvAw» - i i s BSI ! eR ' I FI iII1in�� S€ I 9 3 I - NI a 1 - Np0'oo�oly 13a.:8' C __ r_i_ A li N cn 1 o —i; . $ R -7 — _--I'.; g I s _ �iri4 • : int:.18' so0^90'coTE ./"-1---> . - 1 1..\\./. '''.11a1111.4111,1 I �.I ! 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I v� T 2� " N pfiq� ` n . a ',_jo • N1 as n 1 • eg4' i9g ' ICO� - �L3$a y1iiv ; 4 • N �o g S /'. _ 111 Z I < ya.nc9p a Ip ' 0 � _ _ O m ��S iti i 6 Exhibit"A" VILLAGE DEVELOPMENT - 1 24THSTREET, L.L.C. 24TH AND VINTON STREETS REDEVELOPMENT PLAN • OIAAHA,Nk, 01 L'I`, i. , s� z tif.` a'1 July, 200111 04'440 FE130' PLANNING• OMAHA City of Omaha City of Omaha Hal Daub,Mayor Planning Department Omaha/Douglas Civic Center 1819 Farnam Street Omaha,Nebraska 68183 • • VILLAGE DEVELOPMENT—24TH STREET,L.L.C. REDEVELOPMENT PLAN 24TH AND VINTON STREETS PROJECT DESCRIPTION Village Development—24th Street, L.L.C. proposes the clearance of a blighted site on the northeast corner of South 24th Street and Vinton Street and the development of a commercial retail facility. Village Development—24th Street, L.L.C., a Nebraska limited liability company, has entered into purchase agreements to purchase the project site. Upon acquisition of the site, the Developer intends to construct a 14,490 square foot retail drug store with a pharmacy and a double-lane drive through and lease the developed site to Walgreen Co., an Illinois corporation. The project will include parking, landscaping and public improvements including sidewalks. The approximately 1.7-acre project site is currently zoned General Commercial and R5. The Developer will request rezoning of the entire site to Community Commercial (CC). The project will require the vacation of a north-south alley across the site. The Developer will dedicate additional right-of-way which will enable the City to install a left turn lane on 24th Street in the future. The approval of Tax Increment Financing of approximately$355,000 as a portion of the $3,596,094 total project cost will make it feasible for Village Development—24th Street to redevelop this blighted and substandard site. Other financing including equity and bank financing are committed. The TIF funds may be expended on public improvements, acquisition, and eligible site preparation costs. The TIP will be retired over 15 years. Excess ad valorem taxes resulting from the development would produce approximately$52,606 per year. The owner will be responsible for all improvements on the project site and for public improvements including sidewalks. Utilities suitable to the proposed development are available to the site; the owner will be responsible for any new utility leads and on-site infrastructure. The legal description of the redevelopment site is attached. See Exhibit"A" for complete legal description. 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 maps show the project location(Exhibit"B"), zoning (Exhibit"C") and site plan (Exhibit"D") of the redevelopment project. UTILITIES/TRANSPORTATION Existing gas, water and electrical utilities adequately serve the project site. The developer will be responsible for any new leads onto the site. Access to the site will be from 24th Street and from Vinton Street. The Developer will dedicate additional right-of-way to allow sufficient future expansion of 24th Street for the City to construct a left-turn lane. DEVELOPMENT FINANCING PLAN SUMMARY Sources of Funds Primary Financing $2,415,000.00 67% Owner Equity $ 826,094.00 23% Tax Increment Financing $ 355,000.00 10% Total $3,596,094.00 Tax Increment Financing at 8%. Uses of Funds Acquisition $1,491,194.00 Demolition $ 235,000.00 Site work(paving, landscaping, public improvements) $ 248,000.00 Construction $1,270,000.00 Contingency $ 100,000.00 Other costs $ 251,000.00 Total estimated costs $3,596,094.00 LAND USE/ZONING/PARKING The project site is located in a commercial/residential area of South Omaha. Previous uses on the site were mixed including rental single and multi-family residential use as well as commercial and light industrial uses. Pentecostal House of Prayers which is currently on the northwest corner of the site has a new church location to which it will move. The remainder of the site consists of several vacated business and residential properties. The surrounding area to the west and south consists of commercial development, including the Vinton Square shopping center across 24th Street to the west. The surrounding area to the east of 2 1 the project site consists primarily of residential development. The property immediately to the north of the site is an industrial use remaining from a time when this area was primarily industrial. The site is currently zoned General Commercial and R5. The Developer will request rezoning of the entire site to Community Commercial (CC)which is in compliance with the Master Plan for this area and suitable for the proposed use. With that zoning, the development will be subject to the following site development regulations: Lot area 5,000 square feet minimum Lot width 50 feet minimum Floor area ratio 1.0 maximum Front yard 25 feet minimum Street side yard 15 feet minimum Interior side yard No requirement Rear yard 15 feet Height 60 feet maximum; 45 feet maximum where building is within 100 feet of property classified as R6 or lower intensity district Building coverage 60 percent maximum Impervious coverage 85 percent maximum Project landscaping will comply with zoning requirements, as approved through the permit process. The proposed 81 parking stalls including 77 standard parking stalls and four handicapped accessible parking stalls with ramp and signage will exceed the parking requirement of one space per 250 square feet of floor space for this general retail development. BLIGHT AND SUBSTANDARD CONDITIONS The project site is located in an area eligible for designation of Substandard and Blighted. There are a substantial number of deteriorated or deteriorating structures, defective or inadequate street layout, unsanitary and unsafe conditions, deterioration of site and other improvements, diversity of ownership and other factors which substantially impair the sound growth of this commercial and residential community. Several of the buildings currently located on the site are unsafe and a potential hazard to the public if not repaired or demolished. An embankment located across the site is a public safety hazard with weeds and accumulation of concrete debris and garbage. Existing buildings are located on the edge of the right-of-way in close proximity to the street, and sidewalks are abutting the streets. This creates a hazardous condition and does not allow for necessary street improvements. 3 The proposed Blighted and Substandard area is located in a Census Tract that displays characteristics of blight that satisfy requirements of Nebraska Community Development law, based on the last published census. The average income in the Census Tract 24 is more than $4000 less than the City average and the average age of structures in the Census Tract is 62 years. Unemployment in this area is greater than 120%of the state average. The project site and surrounding area in South Omaha has displayed a pattern of declining real property assessments, as measured by the Douglas County Assessor's Office. COST/BENEFIT ANALYSIS 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. The infrastructure and community public service needs serving this site are adequate for this development. For potential future intersection improvements at 24th and Vinton,the developer is willing to dedicate the additional right-of-way necessary to enable the City to install a left turn lane on 24th Street. The firm receiving this tax incentive will be enabled to obtain other financing sufficient to accomplish the development including the clearance of this blighted site. This renovation project will replace several out-dated and dilapidated structures as well as an area cluttered with garbage and debris with an open and attractive commercial development. The improvement of this commercial space will enhance this residential/commercial district both for consumers and for potential other new development. The project meets all mandatory criteria and four discretionary criteria for the use of tax increment financing as follows: Mandatory Criteria: 1) The project is located in an area eligible for designation as blighted and substandard. 2) This infill development project furthers the objectives of the City's Master Plan by developing new commercial retail services in a blighted area and utilizing existing public infrastructure. 3) The use of TIF for the project will not result in a loss of pre-existing tax revenues. Only revenue from the additional valuation on the new site will be used for the new development. Further, a portion of the site that is currently tax exempt will no longer be owned by a tax exempt entity. 4) The developer has demonstrated that the project would not be economically feasible without the use of tax increment due to the unusual costs of development at this site. 5) The project will demolish deteriorated or deteriorating buildings and eliminate an existing embankment that is a source of weed and trash accumulation. The project will also remove buildings located in close proximity to the street and sidewalks that abut the streets, which create hazardous conditions. Discretionary Criteria: 2) The project is located in an area eligible for designation of blight; 5) The project will directly benefit low-and moderate-income people. At least 51% of the jobs created by the project will be held by or available to low-and moderate-income people; 6) The site that is to be redeveloped itself displays conditions of blight 8) The redevelopment site displays a pattern of declining real property assessments, as measured by the Douglas County Assessor's Office. 4 I , m Z • -4.i oT j . EXHIBIT "A" Y • N S., A2 'I A.,,,,__., — ig/i,• oc m . '''.1-;:j1(F -- j i `h. . 1 ..s...... non r -------_- --- . ,0+ �o r' .d _ 24T_H ST.:--- ;on_; '` uw``. -s—�_rr :24TIi SL m � `(� . •i ® •• _ \ORNEWAYA'� \ORNENAY� --• \ DRW Y_74;1. • ` • • 1 \ ra -I - -m NC 0'00' 1 138.18' '�' 0'0I •/42.11' Nonm>; 2 0 Q -. 00-w t0 z _ !\` Z_ m v -•- • �-JNSm'm um _N O'OOj00'W 138.18' ti o" --fcOzt-- \ 1,\ Cn N O/ Ok t'I(9° �38.1 E" •SOObQ 00 E s-=:�" \� '^ �O 'r :., . 2:o.ze' ',, PP ,-. 3• i N i ' 1 , 46.,4; - /. j 9 5 .\0 '�r ,,,,,,11' ,, �� iii t\ 7 m 1 8 §r i i gt-n.e� -• ,� /'��I \\ 1' / �, I I/• I ( j//�/ 111 I . ��/�1/\..\L m �I•. (goo t. 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Ft' Rinc�;;q `''8E� 2 i c T. _ R-m g� = N.r3 ::fix $ t ��Qs- m ,m a o ZZ S =ri o'Al Jypl-g-2= ,18 - g 2S° _ ^ 3 �u 99m� L w -< o 3%T,8f.9 S a ^ I I 1 Om z49 :PP U e , y ' i' n S Village Development 24 Street L. L.C. Redevelopment Area V, Vicinity Map ,- Exhibit "B" • d- DOf CCA•ON `VE„ N N co Lo d- MARTH ' I- j.$ ±_TTa -��nNIP- 51R w114_ BANC OFT i 1111 F- o - IF co Lo Q � � MI gir L • i,isIi N0 �� � Af o-, K BLVD P . R� OFE P R 50 R 611 I__ w rnm4111L 0 co \�.. - �. 0 /1/ B s g ST cT� 4 'Qio PHE . . ST /4> aping N III D will 6,4 F-- O � 1E11 SA 'Q N N11/ N G F ST -7,... A\ Northeast Intersection of N South 24th and Vinton Street A , .. . . • , Village Development 24 Street L. L.C. Redevelopment Area Zoning Map Exhibit "C" 8 II i ► i i WIll 11111111' ---7-ii_ v6-7-17 Mum -- a-GI IIM 2 9 B 9 , 5 -----,:- 3 I E \T 9 RA 9 13 GI 13 -�- 5 12 5 12 -�_ -,� R45 - fie- Ili _-- 7 ,. 9 B 9 -pring nir 18zMiliTir -1 • 5� ,9 k, _2tip.1111r, 9 a 12 1,11 12 _i_5:- - 5 7 - GI „ e _ii 466-�5 -_ ___- /'� ilit# - c7- rim B 9 i_ . _ . • 20 II 19 2, �lla T.L.25 R , R7 8 18 —_— - ...... RN 11 T.L.29 Wri 9 15 111111 MI GC opMINIM SL.1 I III III I - a ee ar - mini S.L.9 S.L 1 -1 !11:4 Wil 5 L.2T. 2wig9 • PT.S.L.3 T.L.29 2 2 3 . 3s �/9 9 - _ BallIi : T 9 17 , T 19 r� -a \---t_n, 31 3 ,7 g 9 F 29 9 912 12 GI 5 e 28 0 ISL 9T.L 3, 5 1, 3 5 9 3 9 ., _ _ N 1 .72Acres A i l: EXHIBIT "D" _ la- t_ j 0 9 ��Y m • li sli 8 `� Y N e Ix ;11E illing Jill ' 1,401 - li ii li O• Von 4 • • DIY IOW ; I wsw, 4511,t i L/'. I j Q • c 4 Ili a $ al t I- WI ., ., _-sue - w ;j ' T g o zl • o• - =r ;1611,! ... ...., , .i I• , s I K. 'I I t a.-' c� II L___JL ._CJL-f..J ' ee 11 I i I. ga.�.-�..w i I 1 j // �L se l . 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' n • = . ,1 A n 1/j b > 1 i IT /11 41i Aq° *1 m-13 11,4 §ig ii li" i° P �24I g i iC i o vrS: L_ -Zsa CITY OF OMAHA LEGISLATIVE CHAMBER • Omaha,Nebr AuGust 7, 2001 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 1.7 acre Village Development - 24th Street LLC Redevelopment Area is located on the Northeast corner of the intersection of South 24th Street and Vinton 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"; and, WHEREAS,the Village Development-24th Street LLC Redevelopment Plan is for the purpose of development of a commercial retail facility as described in Exhibit "A", attached hereto and made a part hereof; and, WHEREAS, the Village Development - 24th Street LLC Redevelopment Plan provides for the use of Tax Increment Financing for public improvements, demolition and 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 Statues 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 Village Development - 24th Street LLC Redevelopment Plan was approved by the City of Omaha Planning Board on July 11, 2001. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: By Councilmember Adopted City Clerk Approved Mayor c-25/ CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebr August 7, 2001 • THAT, the attached Village Development - 24th Street 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 Village Development-24th Street LLC Redevelopment Area. APPROVED AS TO FORM: C Y ATTORNEY DATE ‘-e)/ P:\PLN 1\2.106sap doc By ouncilmember Adopted G 2 8 2001 -0 • City Clerk Approved. ��,,r� �0 4/ • j May - - `- �:A' •rn-_ , .Z•rt iV `�0 r p' i � � .0 N � ` S o N p cr p 1 c t OnE.'n C/2 CD p A�• n Z" (187ZZ Su O \ . tt-- Rcr (') `C O p p (' • A) ;7 C ,D •.••• n = CIL 0 ro c*-. ..\.„,. sk„ CD CD UQ • W,.. . • • 't . 'NOTICE TO PUBLIC" PROOF OF PUBLICATION NOTICE OF PUBLIC - HEARING ONTHE VILIV4THESTERETO`P.LAENT REDEVELOPMENT PLAN hetiOmaha CityYCounc l that set Tuesdoy�Au9u st 28,2001 at 2:00 a'cloli�k�P.M. as the AFFIDAVIT tthheeVif PublDevelooprment n 24th Street L.L.C. Redevelopment Plan. The VillageDevelopment - State of Nebraska, County of Douglas, ss: 24th street L.L.L. Redevelopment Plan Is lapproximately cated i on team nortt°eos Trawn Griffin corner of the Intersection oft , being duly sworn,deposes and says 1 South 24th Street and Vinton that he is an employee of The Omaha World-Herald, a legal daily newspaper Street. The Redevelqpmeet Plan Is located within an printed and published in the county of Douglas and State of Nebraska,and of area previously declared blighted and substandard general circulation in the Counties of Douglas and Sarpyand State of and in need oli g redevelopppmeent. Nebraska, and th the/ tacked printed notice was published in the said 24heth RippeeDetvelopnt na Redevelopment lo o P l L.L.C. newspaper on the T /. 200 y Of August grin to e d e H e and A D, 19 . . .0 ,1 and that said newspaper is a legal development of a commercial retail facility to newspaper under the statues of the State of Nebraska. The above facts are be leased to Walareens. The plan pr�p�ses6 u55�S,o0o within my personal knowledge. The Omaha World-Herald had an average in TaxOoincremenet�Ftinancl . glirngttaalf be St,59cost IIs circulation of 222,27.1. . . daily, . . . . .2680336. Sunday,in1190.I COPY of said plan is available for public i geg.tron In the City Clerk's Ice. Advertising befoire tttheerCty Coubenciileol (Signe A itle' the City of Omaha, In the e4Isiative Chambers, maha/Dpoavlas Civic enter, 1819 Fornam street, / 7 V 7 Omaha,Nebraska. Buster Brown Subscribed in my presence and sworn to before me this KJ�/1` City Clerk ALL REQUESTS F R 2001 INTERPRETER day of.. . . 0144A -- 19 (SIGNERS) IM OF 48HONUOCDVIAN ALTERNATIVE FORMATS ARE QNEEEDED ALL'. REQUIREUA MISSNIMU/N.OF (J�,/'u`-1(3'—' 72 HO RS ACDEVANCE / PLE S NOTIFY T Notary Public BIO SR W KI-qq��T AURA O BE MADE GENERAL NOTARY State of Nebraska - - OEBRA L.MARCO .- My Comm.Exp. Sept,13,2003 Printer's Fee $ Affidavit Paid by • 313-GS-007 • . y . . _: 4 THE DAILY RECORD "NOTICE TO PUBLIC" �, OF OMAHA NOTICE OF PUBLIC HEARING ON THE VILLAGE DEVELOPMENT-24TH iRONALD A. HENNINGSEN,Notic L.L.C.is hreby gEVELOPMENTthat the-Oraha I PLAN , Publisher City Council has set Tuesday, August 28, PROOF OF PUBLICATION 2001 at 2:00 o'clock P.M. as the date of Public Hearing on the Village Development- UNITED STATES OF AMERICA, 24th Street L.L.C. Redevelopment Plan. The Village. Development -•24th Street ' 'I1te State ofNebraska. L.L.C. Redevelopment Plan is approximately District of Nebraska, as. } 1.7 acre located on the northeast corner of County of Douglas. the intersection of South 24th Street and City ofOmaha, Vinton Street. The Redevelopment Plan is located within an area previously declared blighted and substandard and in need of {, JOHN P. EGLSAER redevelopment. The Village Development - 24th Street being duly sworn,deposes and says that he is L.L.C. Redevelopment Plan proposes the clearance of a blighted site and development ADVERTISING MANAGER of a commercial retail facility to be leased to - Walgreens. The plan proposes $355,000 in Tax I of THE DAILY RECORD,of Omaha,a legal newspaper,printed and Increment o Financing. Theto copprojy of s published daily in the English language, havinga bona fide paid estimated to be$3,596,094. A copy of said � g g11 ge, plan is available for public inspection in the circulation in Douglas County in excess of 300 copies, printed in City Clerk's Office. Omaha,in said County of Douglas,for more than fifty-two weeks last Public Hearingth willbe held Omaha,a the City past; that the printed notice hereto attached was published in THE Council of the City of in the � P r Legislative Chambers, Omaha/Douglas Civic Center, 1819 Farnam Street, Omaha, I DAILY RECORD,of Omaha,on i Nebraska. BUSTER BROWN, City Clerk! August..9..and..1.6L.20 Oil 1 ALL REQUESTS FOR SIGN LANGUAGE INTERPRETERS(SIGNERS)WILL REQUIRE A MINIMUM OF 48 HOURS ADVANCE NOTICE. IF ALTERNATIVE FORMATS ARE NEEDED ALL REQUESTS WILL REQUIRE A MINIMUM OF 72 HOURS ADVANCE NOTICE. That said Newspaper during that time was regularly published andPLEASE NOTIFY TAMMY BIODROWSKI- 444-5553,IF ARRANGEMENTS NEED TO BE' in gener .-c culation in the County of Douglas, and State of MADE. Neb h8-9&16-01skFttyttutt.44:6 ..•• Ipo iirdo y MESC idifftuttal Copies su.:,_." In my presen.: ewo NOTA M P 7 S 0 before me this 6 t h ....day or T° XP1R1 August 2 1 tr>'.gY 6,20.f Q` q OF NE6�PS Notary fate of Nebraekag n�' _n ...-