RES 2000-1616 - 1613 Farnam St LLC redevelopment plan �ygAHA,NFa ^ Planning Department
=� RECEIVED Omaha/Douglas Civic Center
..4 mow' 1819 Farnam Street,Suite 1100
Ali ✓t�/CCI�' GO P 12: Omaha,Nebraska 68183-0110
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(402)444-5150
O C tC--k=`n!rt4 Telefax(402)444-61404rFDFEe03 OMAHA. NEBF"c "
1
Robert C.Peters
City of Omaha Acting Director
•
Hal Daub,Mayor
May 23, 2000
Honorable President
and Members of the City Council,
The attached proposed Resolution approves the 1613 Farnam Street Limited Liability Company
Redevelopment Plan for the renovation by NuStyle Development of the historic Farnam
Building. The Plan proposes the conversion of this office building to create 30 residential
apartments and the renovation of the street level commercial space.
The Plan proposes that the City participate in the development by providing $285,000 in Tax
Increment Financing; the total project cost is estimated to be $3,481,750. The redevelopment
project will preserve an historic building in downtown Omaha and create housing units that are
affordable for individuals and families earning 60% or less of the Area Median Income.
The contractor has on file a current Annual Contract Compliance Report Form (CC-1). As is
City policy, the Human Relations Director will review the contractor to ensure compliance with
the Contract compliance Ordinance.
Your favorable consideration of this Resolution will be appreciated.
Sincerely, ed t ity uncil for Consider on/:
/ )
Robert C. Peters Date Mayor's Office/Ti le f Date
Acting Planning Dire for
Approved as to Funding: Approved:
5/14,0 - 6.4 1.4\ -V300
Stanley P. T' Date elly Paris-Asaka at
Acting Finance Director ' Human Relations Director
Approved:
2.-V
Don W. Elliott, P. E. Date
Public Works Director
Notice of Publication and Public Hearing: May 25, 2000 and June 1, 2000
Public Hearing: June 13, 2000
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ATTACHMENT "A"
• Page 2 of 2
LEGAL DESCRIPTION
1613 Farnam Street
Lots 2 and 3, Block 140, in the City of Omaha, as surveyed and lithographed in Douglas County,
Nebraska, except that part of Lots 2 and 3, Block 140, Original City of Omaha, as surveyed,
platted and recorded in Douglas County, Nebraska, described as follows:
Beginning at the S. E. corner of said Lot 2; thence Westerly on the South line of said Lots.2 and
3, 112.00 feet; thence Northerly on a line 112.00 feet West of and parallel to the East line of said
Lot 2, 63.00 feet; thence Easterly on a line 63.00 feet North of and parallel to the South line of
said Lots 2 and 3, 112.00 feet to the East line of said Lot 2; thence Southerly on the East line of
said Lot 2, 63.00 feet to the point of beginning.
- Exhibit A
1613 FARNAM STREET
LIMITED LIABILITY COMPANY
. . 1613 Farnam Street
•
REDEVELOPMENT PLAN
May 3, 2000
OMAHA,A'F
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O�VED FEVI'9• PLANNING . OMAHA
City of Omaha City of Omaha
Hal Daub,Mayor Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha, Nebraska 68183
1613 FARNAM STREET LIMITED LIABILITY COMPANY
REDEVELOPMENT PLAN
1613 FARNAM STREET
PROJECT SUMMARY
This renovation project by NuStyle Development Corporation will convert the office space on
the upper six floors of the Farnam Building to create 30 affordable residential apartments and
improve the commercial space on the street level. The building is eligible for listing on the
National Register of Historic Places and the exterior will be preserved under the guidelines of the
Historical Preservation Act. The building has two elevators to serve the six apartment floors
from a first floor lobby. An electronic security system will be installed. The developer has a
parking lease option for spaces that will be available to future tenants. The developer will
negotiate with the City for handicap parking on Farnam Street in front of the building.
The approximately 0.25 acre site is in a Central Business District (CBD). The project site is in
the downtown area designated as substandard and blighted and the project meets the
requirements of Community Development Law.
The approval of Tax Increment Financing of approximately$285,000 as a portion of the
$3,481,750 total project cost will make it feasible for NuStyle Development to renovate this
underutilized building in downtown Omaha. Other financing is committed including bank
financing, HOME funds, historical tax credits, low-income housing tax credits, Affordable
Housing Program funds, and equity capital. The TIF funds will be expended on site specific
renovation costs. The TIF will be retired over 15 years. Excess ad valorem taxes resulting from
the development would produce approximately$43,800 per year.
The owner will be responsible for all improvements on the project site. Utilities suitable to the
proposed development are available to the site; the owner will be responsible for any new utility
leads to the building.
The legal description of the redevelopment site is Lots 2 and 3, Block 140 in the City of Omaha,
as surveyed and lithographed in Douglas County,Nebraska except that part of Lots 2 and 3,
Block 140 as described in the complete 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
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BUILDING HISTORY
The seven-story, ornately detailed Farnam Building was constructed in 1929 with six commercial
bays for retail tenants, the corporate office of the Byron Reed Company on the second floor, and
professional offices on floors three through seven. The building was touted as a completely
"fireproof" structure because of its concrete structure and poured concrete floor slabs.
The Farnam Building is locally significant for its contribution to commerce in Omaha. Since its
construction in 1929, the building has played an important role in the business community.
Constructed by the Byron-Reed Company, the building was the locus for the financial and legal
community who met at the Northrup-Jones restaurant on the street level. It played an
instrumental role in downtown business transactions.
The Farnam Building is significant as a representative example of early 20th century
commercial/retail construction illustrating ornately detailed Art Deco, Nouveau, and gothic
ornamentation. It is also associated with two significant Omaha architects, George Prinz and
John Latenser, Jr. (Historical information is excerpted from the National Register of Historic
Places Registration Form.)
BUILDING RENOVATION
The building will have a total of 30 apartments after renovation. Twelve of the units will be
designed for larger families with 3 bedrooms and two baths. Six of the three-bedroom units will
have 1,120 square feet of living space and the other six will have 1,130 square. The remaining
18 apartment units will be two-bedroom apartments with an average of 890 square feet. At least
two residential units will be made accessible for people with disabilities.
The retail bays facing Farnam Street on the first floor contain a total of 8,184 square feet of
commercial space, which will be improved in this project. The building has two elevators to
serve the six apartment floors from a first floor lobby.
The exterior of the building will be preserved under the guidelines of the Historical Preservation
Act. While preserving some of the original construction, the apartments will have new drywall,
cabinetry, carpets and baths.
The residences will have the following amenities: dishwasher, range,refrigerator, microwave,
washer and dryer hookups in addition to a community laundry room. The developer will install
an electronic security system for all exterior doors and windows to ensure the safety of the
residents.
2
DEVELOPMENT FINANCING PLAN SUMMARY
Primary Financing 360,000.00 10%
Tax Increment Financing 285,000.00 8%
HOME Funds 300,000.00 9%
Historic Tax Credit Proceeds 511,290.00 15%
Low Income Tax Credit Proceeds 1,594,811.00 46%
Affordable Housing Program Funds 235,899.00 7%
Equity Capital 194,750.00 5%
Total 3,481,750.00
Primary financing at 8.7% and tax increment financing at 8.5%. NOTE: If the developer should
negotiate a lower interest rate for the tax increment financing, the principle amount of TIF may
be increased accordingly.
BLIGHT AND SUBSTANDARD CONDITIONS
The project site is in the downtown area previously designated as blighted. In the last official
census, the median year of construction of housing structures in this downtown census tract is
1939 and the unemployment is greater than 120% of the state average. This office building itself
is currently underutilized.
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. The downtown area is served by public
transportation.
LAND USE/ZONING/PARKING
The proposed residential and commercial land use is in compliance with the Master Plan and the
requirements of the Central Business District(CBD) in which it is located. The uses surrounding
the Farnam Building include private and government offices, residential apartments and
commercial uses.
NuStyle Corporation has a parking lease option with 36 parking spaces available to lease to the
future tenants of the Farnam Building. These parking spaces are located in the parking garage
immediately to the south of the Farnam Building across the alley. The Central Business District
does not have parking requirements. As a projection of the parking need that will be generated,
low-income residential tenants of the nearby Securities Building have utilized 16 of 33 available
parking stalls. NuStyle has a permit for three spaces in front of the Farnam building for use
during renovation and will negotiate with the City for handicap parking after the renovation is
complete.
3
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.
2) NuStyle Development will negotiate with the City for handicap parking along Farnam Street
after the renovation is complete. No other public infrastructure or community public service
needs will arise from this project. The building is adequately served with streets and utilities
and the downtown area is served with public transportation.
3) The firm receiving this tax incentive will be enabled to obtain other financing sufficient to
accomplish this renovation project.
4) This renovation project will not negatively impact other residential projects providing
affordable housing. Area studies indicate an unmet need for affordable housing i.e. the
population consists of 70% low-moderate income households and 31- 40% of these
households are experiencing rent cost overburden. The renovation of the commercial space
will enhance economic opportunities in the downtown area both for consumers and for
potential employees.
5) In addition to providing decent affordable housing, this project preserves the historic presence
of the Farnam Building in downtown Omaha and encourages economic development in the
area.
4
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EXHIBIT "A"
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LEGAL DESCRIPTION
1613 Farnam Street
Lots 2 and 3, Block 140, in the City of Omaha, as surveyed and lithographed in Douglas County,
Nebraska, except that part of Lots 2 and 3, Block 140, Original City of Omaha, as surveyed,
platted and recorded in Douglas County, Nebraska, described as follows:
Beginning at the S. E. corner of said Lot 2; thence Westerly on the South line of said Lots.2 and
3, 112.00 feet; thence Northerly on a line 112.00 feet West of and parallel to the East line of said
Lot 2, 63.00 feet; thence Easterly on a line 63.00 feet North of and parallel to the South line of
said Lots 2 and 3, 112.00 feet to the East line of said Lot 2; thence Southerly on the East line of
said Lot 2, 63.00 feet to the point of beginning.
. .
, . . 1613 Farnam Street LLC
Redevelopment Area
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C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr May 23 2000
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 one-quarter acre 1613 Farnam Street Limited
Liability Company Redevelopment Area is located at 1613 Farnam Street (see Attachment 1 for
complete legal description); and,
WHEREAS,this Redevelopment Plan is located within an area previously declared
"blighted and substandard and in need of redevelopment"by City Council Resolution No. 1445 (June
2, 1992); and,
WHEREAS, the 1613 Farnam Street LLC Redevelopment Plan provides for
renovation of the Farnam Building for residential use with street level commercial space as described
in Exhibit "A", attached hereto and made a part hereof; and,
WHEREAS,the 1613 Farnam Street LLC Redevelopment Plan provides for the use
of Tax Increment Financing for site specific rehabilitation 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 1613 Farnam Street LLC Redevelopment Plan was approved by the
City of Omaha Planning Board on May 3, 2000.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF OMAHA:
By
Councilmember
Adopted
City Clerk
Approved
Mayor
I
4
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebr May 23 2000
THAT,the attached 1613 Farnam Street Limited Liability Company 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 1613 Farnam Street Limited Liability Company
Redevelopment Area at 1613 Farnam Street.
APPROVED AS TO FORM: .
C Y O Y D E
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-NOTICE TO PUBIC" THE DAILY RECORD
NOTICE OF PUBLIC HEARING ON THE OF OMAHA
1613 FARNAM STREET LIMITED
LIABILITY COMPANY RONALD A. HENNINGSEN, Publisher
REDEVELOPMENT PLAN PROOF OF PUBLICATION
Notice is hereby given that the Omaha
City Council has set Tuesday, June 13,
2000 at 2:00 o'clock P.M. as the date of
Public Hearing.on the 1613 Farnam Street UNITED STATES OF AMERICA,
Limited Liabdify.,Company Redevelopment Plan. ' ' ' ` The State of Nebraska,
The 161 Farnam'St .et Limited Liability District of Nebraska, ss.
Company ` .Re i y • Plan 's County of Douglas,
approximatel . e re'located at City of Omaha,
1613 Farnam Street ui1)(L-.evetopment
Plan is located within . ea declared
blighted and substanilard . in need of JOHN P. EGLSAER
redevelopment by the City Council on June
2, 1992. being duly sworn,deposes and says that he is
The 1613 Farnam Street Limited Liability
Company Redevelopment Plan proposes
renovation of the Farnam Building into 30 ADVERTISING MANAGER
residential apartments, with street level
commercial space. of THE DAILY RECORD,of Omaha,a legal newspaper,printed and
The plan proposed $28total project000 in Tax published dailyin the English language, havinga bona fide paid
Increment Financing. The total costs g ge•
estimated to be$3,481,750. A copy of said circulation in Douglas County in excess of 300 copies, printed in
plan is available for public inspection in the Omaha,in said Countyof Douglas,for more than fi two weeks last
City Public Hearing will be held before the City' past; that the printe notice hereto attached was published in THE
Council of the City of Omaha, in the
Legislative Chambers,Omaha/Douglas Civic DAILY RECORD,of Omaha,on
Center, 1819 Farnam Street, Omaha,Nebraska. May 25, 2000
BUSTER BROWN,
City Clerk June 1, 2000
ALL REQUESTS FOR SIGN LANGUAGE
INTERPRETERSISIGNERS)WILL REQUIRE A ........................................................................................
MINIMUM OF 48 HOURS ADVANCE NOTICE.
IF ALTERNATIVE'FORMATSTA'RE NEEDED
ALL REQUESTS WILL ADVANCE
REQUIRE A MINIMUM That said Newspaper that time was regularly published and
OF 72 HOURS ADVANCE NOTICE. during $� Y
PLEASE NOTIFY TAMMY BIODROWSKI- in g �.�l,` ation in the County of Douglas, and State of
MADE.444-5553, IF ARRANGEMENTS NEED TO BE Ne ..tuc.NMES'�,
4n5a5&s-,-oo b`11hgeglretR�$I.' }. 4
. . ..' .. bed in my p1 •
COh�,,; jmeads 1st Yeet. Tot�lXejRt ...... —
June 20 00
,TFOF NEB\k?'_ f No ..e In.ana. r
State of ebraska
V . 'NOTICE TO PUBLIC" PROOF OF PUBLICATION
NOTICE OF PUBLIC �,/
HEARING ON THE .1` 3e
1 1613 FARNAM STREET
LIMITED
- COMPANY
L REDEVELOPMEN7ITY PLAN
- Notice is hereby given that AFFIDAVIT
the Omaha City Council hos
set Tuesday,June 13c 2000 at
2:00 o'clock P.M.as the dote State of Nebraska, County of Douglas, ss:
1613PFdrnam Street Limited
LiabilityPC Company Redevel-
•
The 1613 Fornam Street •
Limited Liability Company
Redevelopment PlanquIs OP- Michelle Revis ,being duly sworn, deposes and says
acre ilocatedvat 1613 Farnam
Street. The Redevelopment that he is an employee of The Omaha World-Herald, a legal daily newspaper
Plan is located Bwithin an
- area
sstandarrdeandppliin need andf printed and published in the county of Douglas and State of Nebraska, and of
Council on June 2,Y1992 City
general circulation in the Counties of Douglas and Sarpy and State of Nebraska,
The 1613 Farnam Street
Limited Liability Company . Zd that(theattached printed notice was published in the said newspaper on the
Redevelopment Plan ro-
noses renovationilding of the Far• J with � ' / I day of �� ��� A.D.,20 Co,
nom 1 into 30 rest-
I levelrt commercial
cial
space. and that said newspaper is a legal newspaper under the statues of the State of
The plan proposes 4285,000
In Tax Increment
arole ntt Finostancinti. Nebraska. The above facts are within my personal knowledge. The Omaha
Tcopy oftpsold plan�8is7availl- World-Herald has an average circulation of . . daily,
able Clerks inspeOfficction In 228,763 • 279,'178
Sunday,in 19. .99
Public Hearing will be held
before@ the City Council of
the ity of Omaha, In the
Legislative Chambers Oma-
ha/Douglas Civic center,
1819 Fornam Street,Omaha,
Nebraska. (Signe itle• Advertising
Buster Brown
City Clerk
ALL REQUESTS(� FOR SIGN
INTERPRETERS /
(SIGNERS?WILL • Subscribed in my presence and sworn to before me this
REQUIRE A M NIMUM OF
48 HOURS ADVANCE
NOTICE.I IF day of -20 •00-
ALTARE NEEDFORMATS
D A L
RE UESTSWILL
REQUIRE
2AOMINNIMUM
OF
ADVANCE NOTSSICE.
MMY
PLEASE NOTIFY TNEED t /`; ' ' "` ' '
BIODROWSKI.444-5553,IF i
ARRAN0 BE MADE EED 11
TT Notary Public
GEGENERAL
NOTARY-State of Nebraska
Printer's Fee$ DEBRA L. MARCO
�,,.- • My Comm.Exp. Sept. 13,2003
Affidavit •
Paid by
313-G8.007
r
T• �B PROOF OF PUBLICATION
HEARGFOTINNHE
1613 FARNAM STREET
- LIMITED LIABILITY
COMPANY AFFIDAVIT
DEVELOPMENT PLAN1
Notice is hereby given that
the Omaha City Council has
set Tuesday,June 13 2000 at
2:00 o'clock P.M.as the date State of Nebraska, County of Douglas, ss:
1613Farinam Strieet Limited
Liability Company Redevel •
-
- opment Plan.
The 1613 Fornam Street
Limited Llabilit Company
Redevelopment Plan Is ap Michelle•ReviS being duly sworn, deposes and says
proximately one-quarter
acre located at 1613 Fornam
Street. The Redevelopment that he is an employee of The Omaha World-Herald, a legal daily newspaper
Plan Is located blightedw an printed and published in the countyof Douglas and State of Nebraska, and of
area declared and
substandard and In need of g
Counciloon June 2Y1992 City
general circulation in the Counties of Douglas and. Sarpy and State of Nebraska,
The 1613 Farnam Street
Limited Liability Company __ and that the attached printed notice was published in the said newspaper on the
Redevelopment Plan pro- 1�^
poses renovation of the Far-
_ ��. , day of r ` \C ..,4 no a Building into 3o rest- _ - __ \ A. D.,20a%.,
street l levelrt commercial
space. and that said newspaper is a legal newspaper under the statues of the State of
The plan 'emproposes Financing.cin00
Nebraska. The above facts are within my personal knowledge. The Omaha
in Tax Increment �
The total protect cost is esti-
mated to saidb plana is avail-50. A World-Herald has an average circulation of . daily,
copy of is .S +�
able for public Inspection In .22$ !63 27% 78
the City Clerk's Office. Sunday,in 19 . .
Public Hearing will be held 99
before the City Council of
the City of Omaha, in the
Legislative Chambers Omo-
lha/Douglas Civic center,
1819 Farnom Street,Omaha,
Nebraska.. (Signed) . . . . . . c„,,L„....,,LL...-. . . . . . . .Title. Advertising
Buster Brown
.City Clerk
ALL REQUESTS FOR SIGN
LANGUAGE
INTERPRETERS(SIGNERS)WILL Subscribed in mypresence and sworn to before me this .
REQUIREATS/IMUM OF
4ti HOUVANCE
NOTICE.IF °,� �/-
ALTERNATTEIVE FORMATS day of _C.l,.��/" 20 'op.
ARE UESTDS WIILLL -o(
REQUIRE 72 HMIINIMUM
OUR
ADVANCE NOTICE.
PLEASE NOTIFY TAMMY
BIODROWSKI-444-5553,IF
ARRANGEMENTS NEED 7/� Tv � mc�
TO BE MADE /�.dyYl'JVt' L�C
Notary Public
GENERAL NOTARY-Stale of Nebraska
Printer's Fee$ �L DEBRA L. MARCO
Affidavit .a. My Comm. Exp. Sept. 13,2003
Paid by -
313-G8-007