2023-02-02 SID 494 Minutes MINUTES OF MEETING
OF
SANITARY AND IMPROVEMENT DISTRICT NO.494
OF DOUGLAS COUNTY, NEBRASKA
A meeting of the Board of Trustees of Sanitary and Improvement District No. 494 of Douglas
County, Nebraska, was convened in open and public session at 1:00 p.m. on the 2nd day of February,
2023, at 10250 Regency Circle, Suite 300, Omaha, Nebraska.
Present were: Charles W. Buell, Gary L. Shipley and Dean T. Hokanson, Ill. Also, in attendance
was Mark LaPuzza, attorney for the District, and John Kuehl of D.A. Davidson &Co.
Absent: Roger L. Motz and Richard L. Wilson.
Notice of the meeting was given in advance thereof by publication in The Daily Record, on
January 27, 2023, a copy of the proof of publication being attached to these minutes. Notice of this meeting
was simultaneously given to all members of the Board of Trustees, and a copy of their acknowledgment of
receipt of notice is attached to these minutes. Availability of the agenda was communicated in the published
notice and in the notice to the Trustees of this meeting. All proceedings of the Board were taken while the
convened meeting was open to the attendance of the public. The agenda was at all times available at the
office for the District at 10250 Regency Circle, Suite 300, Omaha, Nebraska 68114.
The meeting was called to order.
It was first publicly stated to all in attendance that a current copy of the Nebraska Open Meetings
Act was available for review and indicated the location of such copy in the room where the meeting was
being held.
The next order of business was discussion regarding potential development and infrastructure
improvements. Steve Reeder of Dakota Land, LLC attended and announced he had acquired ownership
of approximately 60 percent of the lots on 137th Street. Mr. Reeder indicated that he would like to build
houses on the 50 foot lots he has purchased but doing so would require that the District install necessary
infrastructure including streets and sewers. The Trustees discussed a general desire for development.
However, the financial capabilities of the District are such that the District would not be able to finance the
improvements as general obligations of the District and would require all, or nearly all, of the costs to be
specially assessed against lots. It was discussed that a five year equally amortized special assessment
would be something the District would expect to be able to use as the basis for obtaining financing.
However, the District would be obligated to pursue any unpaid special assessments in a timely fashion
including, without limitation, those special assessments levied against existing homes. No action was
taken by the Board except to authorize District professionals and Trustees to continue communicating
with Mr. Reeder.
The next order of business was discussion regarding Sheriff's sales of buildable lots by the
Omaha Municipal Land Bank and Land Reutilization Commission. Mark LaPuzza reminded the Trustees
that the District has previously not bid to purchase unbuildable lots that have gone to sale, regardless of
special assessments levied against them. Some lots, due to a quirk in the manner of foreclosure, had
general taxes foreclosed but special assessments remained in place. However, with respect to a few lots
coming up for sale, the special assessments would be forever foreclosed if no bid was obtained at the
sale.
For this reason, there was extended discussion regarding the District's willingness to engage in
efforts to participate in purchasing buildable lots in foreclosure sales in order to resell the lots to protect
the special assessments owed to the District.
All of the dollar amounts would vary from lot-to-lot and based upon the actual date of sale, the
analysis is the same. Special assessments, including principal and interest, are shown to total
approximately $32,000.00 on these buildable lots. Additionally, general taxes in the amount of
approximately $5,000.00 per lot are outstanding. The opening bid at sale for these properties is
established at the total amount of all taxes and special assessments. If any third party bid on the
property, the District would be paid in full for its special assessments in cash by that buyer and the buyer
would own the property outright. Alternatively, if no bids were received, the property would go to the Land
Reutilization Commission inventory free and clear of all special assessments payable to the District. If a
lot was worth a presumed $30,000.00, the District could purchase the lot if there were no other bidders,
pay the $5,000.00 in general taxes and obtain title to the property. By selling the lot, even after costs of
purchase, marketing sale, the District would come out ahead financially in the process.
The Trustees discussed that the simplest option would be to not bid on the lots but that doing so
would forego financial advantages to the District. Therefore, the Trustees discussed that the District
should proceed to bid at the sales in the event there are no other bidders.
After discussion and upon a motion duly made and seconded, and upon a roll call vote, the
Trustees, Charles W. Buell, Gary L. Shipley, and Dean Hockanson, Ill voted "Aye" with none voting "Nay"
with the following resolution being thereby adopted and approved:
RESOLVED, that the District hereby authorizes bidding at the foreclosure
sale of any biddable lot within the District in the event that no other bids
are made and offered, for the purpose of eventually reselling such lots to
protect the financial assets of the District
RESOLVED FURTHER that Mark LaPuzza is hereby authorized and
directed to attend such sale and place such bids on behalf of the District.
It was discussed that the District would be able to place a credit bid at the sales given the significant
amount owed to the District but that, ultimately, the District would be required to come up with the fund
necessary to obtain a Deed by paying the general outstanding taxes. It was discussed that a meeting of the
Board of Trustees would be required to authorize such ultimate payment.
There was also some discussion regarding past liens for judgments related to the lots in question.
It was discussed that efforts would be made to ensure title with respect to any purchase. It was noted that
several potential buyers in the neighborhood obtained title searches showing prior outstanding liens and
judgments. It was discussed that any potential third party purchaser should perform its own due diligence
with respect to any purchase.
There was next a brief discussion regarding the marketing and sale of the lots if and when the
District obtains title. It was discussed that the sale and marketing efforts need to be public and visible to
avoid any implication that the District has engaged in any preferential dealings or not maximize the value of
the property. It was discussed that the properties could be sold with a requirement that the lots be built upon
within a certain period of time as the District benefits not only from the sale of the property but from the
increased tax revenue created by the additional valuation.
There were next presented miscellaneous bills, invoices, statements, and recommendations for the
Board's consideration.
There were next presented invoices from Kildow Construction Inc., for removal and replacement
of pipe and road repairs, as follows: (i) Invoice #1676, in the amount of Fifteen Thousand Four Hundred
Twenty and no/100 Dollars ($15,420.00), and (ii) Invoice #1678, in the amount of Fifteen Thousand Eight
Hundred Fifty-Five and no/100 Dollars ($15,855.00); said invoices being in the aggregate amount of
Thirty-One Thousand Two Hundred Seventy-Five and no/100 Dollars ($31,275.00).
There was next presented an invoice from Michael Obbink, for bookkeeping services for the year
ended June 30, 2022, Invoice#549, in the amount of Two Hundred Fifteen and no/100 Dollars ($215.00).
There was next presented an invoice from Lutz & Company, PC, for final bill for completion of
audited financial statements for the year ended June 30, 2022, Invoice #320598, in the amount of Four
Thousand Six Hundred Fifty and no/100 Dollars ($4,650.00).
There was next presented a statement from One Call Concepts, Inc., for line locates within the
District, Invoice #2121014, in the amount of Two and 36/100 Dollars ($2.36). The Board was next
reminded that it has a credit balance in the amount of Fifty and 24/100 Dollars($50.24).
There was next presented an invoice from Valley Corporation, for pipe bedding, Invoice #26653,
in the amount of One Thousand Three Hundred Sixty-Six and 21/100 Dollars ($1,366.21).
There was next presented an invoice from Corky Buell, for dragging and maintenance of roads,
Invoice#2632, in the amount of One Hundred Fifty and no/100 Dollars ($150.00).
There were next presented statements from Pansing Hogan Ernst & Bachman LLP, attorneys for
the District, for legal service performed through December 31, 2022, in the amount of Four Thousand
Five Hundred Thirty-Four and no/100 Dollars ($4,534.00), and costs advanced in the amount of Four
Hundred Twenty-Five and 53/100 Dollars ($425.53); said statement being in the aggregate amount of
Four Thousand Nine Hundred Fifty-Nine and 53/100 Dollars ($4,959.53).
The previously described bills, invoices, recommendations and statements having been presented
for the Board's consideration and after review and discussion of such items, the following resolution was
duly moved and passed:
RESOLVED, by the Board of Trustees of Sanitary and Improvement
District No. 494 of Douglas County, Nebraska, that the Chairman and
Clerk be and they hereby authorized and directed to execute and deliver
Warrant Nos. 1541 through 1552 of the District, dated the date of this
meeting, to the following payees and in the following amounts, said
Warrants to be drawn on the General Fund of the District and to draw
interest at the rate of six percent (6%) per annum and to be redeemed no
later than February 2, 2026, subject to extension of said maturity date by
order of the District Court of Douglas County, Nebraska, after notice is
given as required by law, to-wit:
Warrant Nos. 1541 through 1546, each for the amount of Five
Thousand and no/100 Dollars ($5,000.00), and Warrant No. 1547, for the
amount of One Thousand Two Hundred Seventy-Five and no/100 Dollars
($1,275.00), payable to Kildow Construction Inc.
Warrant No. 1548, for the amount of Two Hundred Fifteen and
no/100 Dollars($215.00), payable to Michael Obbink.
Warrant No. 1549, for the amount of Four Thousand Six Hundred
Fifty and no/100 Dollars ($4,650.00), payable to Lutz &Company, PC.
Warrant No. 1550, for the amount of One Thousand Three
Hundred Sixty-Six and 21/100 Dollars ($1,366.21), payable to Valley
Corporation.
Warrant No. 1551, for the amount of One Hundred Fifty and
no/100 Dollars($150.00), payable to Corky Buell.
Warrant No. 1552, for the amount of Four Thousand Nine
Hundred Fifty-Nine and 53/100 Dollars ($4,959.53), payable to Pansing
Hogan Ernst&Bachman LLP.
FURTHER RESOLVED by the Board of Trustees of Sanitary and
Improvement District No. 494 of Douglas County, Nebraska, that both
they and the district hereby find and determine and covenant, warrant
and agree as follows: the improvements and/or facilities being financed
or refinanced by the above Warrants are for essential governmental
functions and are designed to serve members of the general public on an
equal basis; all said improvements have from the time of their first
acquisition and construction been owned, are owned and are to be
owned by the District or another political subdivision; to the extent
special assessments have been or are to be levied for any of said
improvements, such special assessments have been or are to be levied
under Nebraska law as a matter of general application to all property
specially benefited by said improvements in the District; the development
of the land in the District is for residential or commercial use and the
development of the land in the District for sale and occupation by the
general public has proceeded and is proceeding with reasonable speed;
other than any incidental use of said improvements by a developer
during the initial period of development of said improvements, there have
been, are and will be no persons with rights to use such improvements
other than as members of the general public; none of the proceeds of
said Bonds or any refinanced indebtedness have been or will be loaned
to any private person or entity; the District hereby authorizes and directs
the Chairperson or Clerk to file or cause to be filed, when due, an
information reporting form pursuant to Section 149(e) of the Internal
Revenue Code of 1986, as amended, pertaining to the above Warrants;
and the District does not reasonably expect to sell or otherwise dispose
of said improvements and/or facilities, in whole or in part, prior to the last
maturity of the above Warrants.
FURTHER RESOLVED by the Board of Trustees of Sanitary and
Improvement District No. 494 of Douglas County, Nebraska, that the
District hereby covenants, warrants and agrees as follows: (a) to take all
actions necessary under current federal law to maintain the tax exempt
status (as to taxpayers generally) of interest on the above Warrants; and
(b) to the extent that it may lawfully do so, the District hereby designates
the above Warrants as its "qualified tax exempt obligations" under
Section 265(b)(3)(B)(i)(III) of the Internal Revenue Code of 1986, as
amended, and covenants and warrants that the District does not
reasonably expect to issue warrants or bonds or other obligations
aggregating in the principal amount of more than $5,000,000 during the
calendar year in which the above Warrants are to be issued.
FURTHER RESOLVED, by the Board of Trustees of Sanitary and
Improvement District No. 494 of Douglas County, Nebraska, that this and
the preceding Resolutions are hereby adopted as the Certificate With
Respect to Arbitrage of the District pertaining to the above Warrants and
the District and the Chairman and Clerk of the District hereby further
certify, as of the date of the registration of the above Warrants with the
County Treasurer of Douglas County, Nebraska, as follows:
1. No separate reserve or replacement fund has been or will
be established with respect to the above Warrants. The District
reasonably anticipates that monies in its Bond Fund reasonably
attributable to the above Warrants in excess of the lesser of: (a) ten
percent (10%) of the net principal proceeds of the above Warrants, (b)the
maximum annual debt service due on the above Warrants, or (c) one
hundred twenty-five percent (125%) of average annual debt service due
on the above Warrants will be expended for payment of principal of and
interest on the above Warrants within thirteen (13) months after receipt of
such monies. That amount which is currently held in the District's Bond
Fund which exceeds the amount which is to be expended for payment of
principal and interest on the above Warrants within thirteen (13) months
after receipt of such monies, plus that amount arrived at pursuant to the
immediately preceding sentence, will not be invested in any securities or
any other investment obligations which bear a yield, as computed in
accordance with the actuarial method, in excess of the yield on the above
Warrants.
2. To the best of their knowledge, information and belief, the
above expectations are reasonable.
3. The District has not been notified of any listing of it by the
Internal Revenue Service as an issuer that may not certify its bonds.
4. This Certificate is being passed, executed and delivered
pursuant to Section 1.148-2(b)(2) of the Income Tax Regulations under the
Internal Revenue Code of 1986, as amended.
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The Chairman next reviewed the Agenda which had been available for public inspection in
accordance with the law prior to this meeting of the Board of Trustees and reported that all matters
considered by the Board at this meeting appeared on the Agenda.
Gary L. Shipley, as Clerk for Sanitary and Improvement District No. 494 of Douglas County,
Nebraska (the "District") does hereby certify that the above proceedings are a true and accurate
statement of the proceedings had by the District at its February 2, 2023 meeting.
/A
Gary L. pley, Clerk