RES 2001-1920 - Fullwood Square Apartments LP redevelopment plan d .. `�
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014AHA,^,e
l E t \/ E 13 Planning Department
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Omaha/Douglas Civic Center
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n r rr ! JU "U PM 2: Omaha,Nebraska 68183-0110
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. (402)444-6140
Ao �� June 19, 2001 CITY CLERK Telefax(402)444-6140
*'t7'Ev FEisit O M A H f , N C B R 4 C K A Robert C.Peters
City of Omaha Acting Director
Hal Daub,Mayor
Honorable President
and Members of the City Council, 4
The attached proposed Resolution approves the Fullwood Square Apartments Limited
Partnership Redevelopment Plan for the development of a site at 20th and Lake Streets. The
project involves the conversion of the Old Lake School at 1920 Willis Avenue to residential
apartments and the construction of twelve three-bedroom townhouses on the adjacent lots.
Design for the new construction will be compatible with the architectural styles of the
neighborhood. The project will include parking for residents and a landscaped courtyard.
During the first fifteen years of tax compliance for low income housing tax credits, the
townhouses will be utilized to help prospective home-buyers prepare for homeownership. After
the fifteen-year compliance period these townhouses will be made available for purchase by low-
to-moderate income families.
The Plan, approved by the Planning Board on March 7, 2001 proposes that the City participate in
the development by providing ,$150;odoin Tax Increment Financing. The total project cost is
estimated to be$2,607,.025.This redevelopment project will restore an historic building and a
site that has been vacant and blighted for several years while providing quality affordable
apartments and townhouses for area residents.
Your favorable consideration of this Resolution will be appreciated.
Sincerely, 'eferred o City Co r ncil fos.i eration:
/1-.-_ s-• //. 0/ tiiiAt.
6 / 0
Robert C. Peters Date ayor's •ffice/Title 45 Date
Acting Planning Director
Approved as to Funding: Approved:
r— - .1-1)4. 101 -,„ -,, . E./I
Stan ey P. T Date Don W. Elliott,P. E. ate
Acting Finance Director Public Works Director
Notice of Publication and Public Hearing: June 21 and June 28, 2001
Public Hearing: July 10, 2001
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ATTACHMENT 1
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Exhibit "A"
FULLWOOD SQUARE APARTMENTS
LIMITED PARTNERSHIP
20TH AND LAKE STREETS
REDEVELOPMENT PLAN
O4 pbiAHIA,NA March, 2001
`-'itr,..,V11111:437
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4'*ED FEBOP* PLANNING •OMAHA
City of Omaha City of Omaha
Hal Daub,Mayor Planning Department
• Omaha/Douglas Civic Center
1819 Farnam Street
Omaha,Nebraska 68183
FULLWOOD SQUARE APARTMENTS LIMITED PARTNERSHIP
REDEVELOPMENT PLAN
20TH AND LAKE STREETS
PROJECT SUMMARY
Fullwood Square Apartments Limited Partnership, Venture Realty, Inc. General Partner,
proposes a residential development that includes the conversion of the historic Old Lake School
at 1920 Willis Avenue to create nine apartments and a community room, along with the
construction of twelve three-bedroom townhouses on the adjacent lots.
This project will contribute to the redevelopment of North Omaha by restoring a building and site
that have been vacant and blighted for several years while providing quality affordable housing
for area residents. The project site is in an area designated as substandard and blighted and the
project meets the requirements of Nebraska Community Development Law.
The City Council on April 25, 2000 approved the approximately 1.64 acre site as a Planned Unit
Development, R6 Low Density Multiple Family Residential District.
The approval of Tax Increment Financing of approximately$150,000 as a portion of the
$2,607,025 total project cost will make this redevelopment feasible. Other financing is
committed including mortgage financing, HOME funds, and low income housing tax credits.
The TIF funds will be expended on public improvements and eligible site-specific development
costs. The TIF will be retired over 15 years. Excess ad valorem taxes resulting from the
development would produce approximately$44,056 per year.
The owner will be responsible for all improvements on the project site, including utilities and
public improvements.
The legal description of the redevelopment site is Lots 1 through 10 inclusive, Block 3, Lake
Addition, an Addition to the City of Omaha, as surveyed and platted and recorded in Douglas
County, as described in the legal description attached as Exhibit"A". 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 location(Exhibit"B"), zoning(Exhibit"C") and site plan(Exhibit
"D") of the redevelopment project.
1
PROJECT DESCRIPTION
This project site consists of the block bounded by Lake Street and Willis Avenue,North 20th
Street and Florence Boulevard. The site is approximately 1.64 acres with one existing school
building that occupies approximately 6,000 feet at the corner of Willis Avenue and N. 20th Street.
The school and surrounding lots are vacant and display increasing conditions of blight.
The building is the historic Old Lake School. The project site last housed the Sharon Seventh-
Day Adventist Church School and has been vacant for several years. Due to previous church
ownership, the property produces no property tax revenue.
The developer will clear the site and upgrade the site infrastructure, including the removal and
replacement of curbs, gutters and sidewalks. No off-site public improvements will be needed for
this housing development.
The existing school building will be renovated under the guidelines of the Historic Preservation
Act. The building will be converted into nine apartments with a community room. All nine
apartments will be affordable for low to moderate-income residents. The living units will consist
of seven two-bedroom and two one-bedroom apartments. Each apartment will have vaulted
ceilings, storage space, plush carpeting, ceiling fans, fluorescent lighting, a full size kitchen with
built-in microwave, garbage disposal, frost-free refrigerator, dishwasher and a gas stove.
Common laundry facilities will be located in the community room. The community room will
also include a partial kitchen and bathroom for the use of the tenants.
Parking for the apartment building will include 16 stalls and 10 detached garages. The site plan
provides for a landscaped courtyard with an underground sprinkler system.
The development of the vacant lots will include twelve three-bedroom townhouses with attached
one-car garages. The townhouses will be slab on grade construction with two floors. All of the
townhouses will have patios that will open into a common courtyard and playground. The
townhouses will have all the amenities listed above, plus washer/dryer hookups. Each
townhouse will have two parking stalls utilizing the attached garage and driveway.
These townhouses will be utilized for a tenant homeownership program. During the first fifteen
years of tax compliance for low income housing tax credits, the units will be used to train and
prepare prospective home-buyers for homeownership. After the fifteen-year compliance period
these tax credit units will be made available for purchase by low-to-moderate income families. A
tenant/townhome association will be maintained throughout the life of the project.
The design for the new construction will be compatible with the architectural styles of the
neighborhood. The project architect, Alley Poyner Architecture, is the architect for the North
Omaha infill homes constructed by Holy Name Housing Corporation in this area.
2
DEVELOPMENT FINANCING PLAN SUMMARY
Sources of Funds
Mortgage Financing $ 500,000 19%
Tax Increment Financing 150,000 6%
HOME funds—City of Omaha 275,000 11%
Low income housing tax credits 1,682,025 65%
Total $2,607,025
Tax increment financing at 8.75%.
Uses of Funds
Acquisition $ 120,000*
Site grading and clearing 60,000*
New building hard costs 864,000
Rehabilitation hard costs 746,025*
Accessory building 40,000
Construction contingency 120,000 partial*
Architect, engineering 56,000*
Other costs 601,000
Total $2,607,025
* Eligible for use of TIF
BLIGHT AND SUBSTANDARD CONDITIONS
The project site is in an area previously designated as blighted. The old school building on the
site is vacant and deteriorating. The remainder of the site consists of vacant lots with overgrowth
of weeds and brush. Based on the last official census, the median year of construction of housing
structures in this census tract is 1941, unemployment is 22% greater than 120% of the state
average, the median income is $9,391 below the median income for the City, and the census tract
experienced population loss.
UTILITIES/TRANSPORTATION
Existing gas and electrical utilities adequately serve the project site. The sewers that serve this
area have not yet been separated. The developer will be responsible for all new utility leads onto
the site. This area is served by public transportation.
3
1
• ,
LAND USE/ZONING/PARKING
The proposed residential land use is in compliance with the Master Plan and the requirements of
the R6 low-density multiple-family residential district in which it is located. The City Council on
April 25, 2000 approved the development as a Planned Unit Development along with a zoning
change from R4 to R6. The zoning districts surrounding the site include General Commercial,
R4 and R7.
Two parking spaces per dwelling unit are required for both townhouse residential use and for
multiple family residential use of two bedrooms and over. This housing development will meet
and exceed the requirement with two parking stalls for each townhouse, and 26 stalls for the
nine-unit apartment building.
COST/BENEFIT 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. Due to previous church
ownership, the taxing jurisdictions currently realize no revenue generated by the project site.
2) This project will provide new sidewalks, gutters and curbs to City specifications as a part of
the development. No other public infrastructure or community public service needs will arise
from this project. The building 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 development project financially feasible for the
developer.
4) This housing development project will not negatively impact other residential projects
providing affordable housing. The market demand for quality affordable rental housing in
this area is sufficient to absorb the 21 units created by this development.
5) This development will eliminate blighting conditions and safety hazards. The project will
benefit low and moderate-income residents as 15 of the units will be available for low to
moderate income tenants. The development will result in a stable and on-going tax revenue
stream in the future, adding positively to an area of Omaha that displays a pattern of declining
real property values.
The project meets all mandatory criteria and five discretionary criteria for the use of tax
increment financing as follows:
4
Mandatory Criteria:
1. The project site is located in an area previously designated as blighted.
2. The project furthers the objectives of the City's Master Plan by providing infill
development utilizing existing infrastructure.
3. This use of Tax Increment Financing will not result in a loss of pre-existing tax revenues.
Only added value revenues resulting from the improvements will be applied to the cost of
the improvement.
4. The developer has demonstrated that the project would not be economically feasible
without the use of TIF as the return on investment will be minimal even with TIF.
5. This project will clear up a site that is blighted and substandard.
Discretionary Criteria:
Criteria 2. The project is located in a previously designated blighted area.
Criteria 4. The project involves the rehabilitation of an historic building.
Criteria 5. At least 51% of the housing created by this development will be available to low-
and moderate-income people.
Criteria 6. The site displays conditions of blighted as established by Nebraska State Stature.
The property contains a vacant, dilapidated buildings and vacant lots with
overgrowth of weeds and brush.
Criteria 8. The redevelopment site has displayed a recent pattern of declining real property
assessments, as measured by the Douglas County Assessor's Office.
5
EXHIBIT "A" .
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t-2sA CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr June 19, 2001
RESOLVED BY THE CTTY 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 1.64 acre Fullwood Square Redevelopment Area is
located at 20th and Lake Streets (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,the Fullwood Square Apartments Limited Partnership Redevelopment
Plan is for the purpose of converting the old Lake School at 1920 Willis Avenue to residential use
and the construction of 12 townhouses on the adjacent lots as described in Exhibit "A", attached
hereto and made a part hereof; and,
WHEREAS,the Fullwood Square Apartments Limited Partnership Redevelopment
Plan provides for the use of Tax Increment Financing for public improvements and eligible site
specific development costs; 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 Fullwood Square Apartments Limited Partnership Redevelopment
Plan was approved by the City of Omaha Planning Board on March 7, 2001.
•
By
Councilmember
Adopted
City Clerk
Approved
Mayor
J
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=2s �� CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr Junee19, 2001
PAGE 2
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OMAHA:
THAT, the attached Fullwood Square Apartments Limited Partnership
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 Fullwood Square
Redevelopment Area at 20th and Lake Streets.
APPROVED AS TO FORM:
C A ORNE Y"71ATE
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" . "NOTICE TO PUBLIC11 PROOF OF PUBLICATION
NOTICE OF PUBLIC
HEARING ON THE .
FULLW00DSQUARE
APARTMENTS LIMITED
PARTNERSHIP
REDEVELOPMENT PLAN'' AFFIDAVIT
� TrTT /� T TTT
Notice is hereby given that L[,11� {1H 11,.J/A V 1
the Omaha City Council has'
set Tuesday,July 10,2001 at,
2:00 o'clock P.M.as the date State of Nebraska, County of Douglas, ss:
FuPm
lbw co 0 dart S a una rhei
Apartments Limited
Partnership Redevelopment • Revis
Plan. Michelle
The Fullwood Square being duly sworn, deposes and says
Apartments Limited r
Partnership Redevelopment
Plan is approximately 1.64 1 that he is an employee of The Omaha World-Herald, a legal dailynewspaper
- acre located at 20th and Ig news P P
Lake Streets. The
Redevelopment Plan is printed and published in the county of Douglas and State of Nebraska, and of
located within an area
declared blighted and
substandard and in need of general circulation in the Counties of Douglas and Sarpy and State of Nebraska,
redevelopment by the City I
Council on June 2,1992.
The Fullwood Square and that the attached printed notice was published in the said newspaper on the
Apartments Limited C2-a.t. .2g . of June A.D.,2001 . .,
-- Partnership Redevelopment ',' ---• •-- day
Plan proposes the
conversion
1920 f the
slAvenue 1 and that said newspaper is a legal newspaper under the statues of the State of
to residential apartments
and
construction
adiacent Nebraska. The above facts are within my personal knowledge. The Omaha I
lots.The protect will include
•
Landscaped courtyard.and a World-Herald has an average circulation of . daily,222;2�1• • • :'268,336• • •
The plan proposes $165 000
in Tax Increment Financing. Sunday,in 19 00. .
The total protect cost is
estimated to be 42,601,000.A
!copy of said plan is
available for public
inspection in the City Clerk's - --
Office.
1•PUKIiC-Heat'tng will be held (Signed . . . . . .telt/L . . . . .Title. Advertising
before the City Council of
the City of Omaha, in the .
Legislative Chambers,
Omaha/Douglas Civic •
Center, 1819 Farnam Street,
Omaha,Nebraska. Y r'1 &
Buster Brown Subscribed in m j r and sworn to eesence bore me this o/
City Clerk
ALL REQUESTS FOR day of 20
INTERPRETERS i
(SIGNERS)WILL
REQUIRE A MINIMUM OF
48 HOURS ADVANCE i
NOTICE. IF •
ALTERNATIVE
FORMATS ARE NEEDED
ALL REQUESTS WILL f i ae./61_,Ct / �/1/�r//
REQUIRE A MINIMUM OF ®Y /Jl l
72 HOURS ADVANCE
N oVTICE.
tUOOJPa9 a If r ,gig Notary Public
ionnti_aau.JoLutuoyy H_0 _
GENERAL NOTARY-State of Nebraska
i Printer's Fee$ HI DEBRA L.MARCO
Z My Comm.Exp. Sept.13,2003
Affidavit
Paid by
313-G8.007
I
r "NOTICE TO PUBLIC"+�~ THE DAILY AR�ECORD
NOTICE OF PUBLIC HEARING ON THE OF OMAHA
FULLWOOD SQUARE APARTMENTS
LIMITED PARTNERSHIP RONALD A. HENNINGSEN,Publisher
REDEVELOPMENT PLAN PROOF OF PUBLICATION
Notice is hereby! given that the Omaha
City Council has set Tuesday; July 10,
2001 at 2:00 o'clock P.M: as the date of UNITED STATES OF AMERICA,Hearing on the Fullwood Square
Apartments, Limited Partnership ! The State of Nebraska,
Redevelopment Plan. District of Nebraska, ss.
The Fullwood Square Apartments Limited 1 Dormty of Douglas
Partnership Redevelopment Plan is City of Omaha,
approximately 1.64 acre located at 20th and
Lake Streets. The Redevelopment Plan is
located within an area declared blighted and JOHN P. EGLSAER
substandard and in need of redevelopment
by the City Council on June 2, 1992. being duly sworn,deposes and says that he is
The Fullwood Square Apartments Limited
Partnership Redevelopment Plan proposes
the conversion of the old Lake School at ADVERTISING MANAGER
1920 Willis Avenue to residential apartments°
and the construction of 12 townhouses on. of THE DAILY RECORD,of Omaha,a legal newspaper,
the adjacent lots. The project will include gaprinted and
parking for residents and a landscaped! published daily in the English language, having a bona fide paid
courtyard. circulation in Douglas County in excess of 300 copies, printed in
The plan proposes $165,000 in Tax Omaha,in said County Financing. The total cost a ount y of Douglas,for more than fifty-two weeks last
estimated to be$2,601,000. A copy of said past; that the printed notice hereto attached was published in THE
plan is available for public inspection in the
',plan
Clerk's Office. DAILY RECORD,of Omaha,on
i Public Hearirc will be held before the City!
Council of the City of Omaha, in the
Legislative Chambers,Omaha/Douglas Civic I June..2.1..and..28,..2Q0.1
Center, 1819 Fan, .-t Street, Omaha,,
Nebraska.
BUSTER BROWN,
City Clerk
ALL REQUESTS FOR SIGN LANGUAGE
INTERPRETERS(SIGNERS)WILL REQUIRE A
',MINIMUM OF 48 HOURS ADVANCE NOTICE., That 9 - W,1'laper during that time was regularly published and
IF ALTERNATIVE FORMATS ARE NEEDED in dr.c 'li tion in the County of Douglas, and State of
ALL REQUESTS WILL REQUIRE A MINIMUM C ^ t
OF 72 HOURS ADVANCE NOTICE. ` �Y •..�c 6,
PLEASE NOTIFY TAMMY BIODROWSKI t�5f�.(tc'9 444-5553, IF ARRANGEMENTS NEED TO Bt. 4 b i-.•is e q IV•',... III
MADE. S h6-21&28.01 I i..j,.; Y...... t
onq � a, Su :: in my press tandn rn to
It E7(AfRa�g 56'39. .:. before meth] tri' Ql...asyor
Qil �
l , q6 2 %)—s9 , ,•
‘‘‘ Op NEBRS
A
Notary .... ...
.o... ........... ....
State of Nebraska