RES 1999-2951 - 1234 S 13th St LLC redevelopment plan DNIAHA,NF - Planning Department
4.`, °s� R ! Omaha/Douglas Civic Center
1819 Farnam Street,Suite 1100
99
►,,��eir(-00k" Omaha,Nebraska 68183-0110
t �®. .PLI 'Ei a OCT " Pi (402)444-5200
o ' October 19, 1999 (402)444-5150
°�r u � Y ' i-- ,;c Telefax(402)444-6140
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FDFEBR 6
j> " "1' ;. 4 •N 1I Robert C.Peters
City of Omaha tom* i1�t.�'�i i jti�>eceit
Acting Director
Hal Daub,Mayor
Honorable President
and Members of the City Council,
The attached Resolution approves the 1.234 South 13th Street LLC Redevelopment Plan, NuSiyle
D ei ' ice%` a i': f,.r th.e -.z:dcnti 1 . d .c .. rim devel nm�n c+ ; e to i at
L .': .;�'�:i 1....'�Fi iivn u� i.,u'f�.E.:��;, i•.Ji'lL'v y'l+i�l1...�1111 U1 �:.i.iu �aiiE.afvra Cxl -ieua.� �._�,.� 'tit ill"..,n cl.:,.�.t•...�.,,:,ti�.
1234 South 13th Street. The Plan proposes the rehabilitation of the historic Bay View building to
create six storefront commercial bays and 12 three-bedroom apartments suitable for large families
with low to moderate incomes.
The Plan proposes that the City participate in the development by providing $180,000 in Tax
Increment Financing; the total project cost is estimated to be $1,891,000. The T.LF will be used for
public improvements and site specific rehabilitation costs. This project will contribute to the
ongoing revitalization of the 13th Street corridor as it leads into the downtown area.
The Contractor has on file a current Annual Contract Compliance Report Form (CC-1). As is City
policy, the Homan Relations Director will review the Contractor to ensure compliance with the
Contract Comryliance Ordinance.
Your favorable consideration of this Resolution will be appreciated.
Sincerely, Referred to City Cou cil for Consideration:
✓��- e 7. /%/l?
Robert C. Peters /a - Date Mayor's Office/Title Date
Actin.g Planning Director
Approved as to Funding:. Approved:
ouis A. D'Ercole Da�Ee / Kel 'e Paris 409 D� to
Finance Director Human Relations Director
•
Approved:
- 4 3 0 -q
. Elliott, P.E. Date
Public Works Director
Notice of Publication and Public Hearing: October 21 and October 28, 1999
Public Hearing: November 9, 1999
P:\PLN 3\9I 7,1.SAP
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Exhibit "A"
1234 South 13th Street L.L.C.
1234 South 13th Street
REDEVELOPMENT PLAN
September 1; 1999
OMAHA,,v,
U�-`, : s;
O4'�ED FEBR��4� PLANNING OMAHA
•
City of Omaha City of Omaha •
Hal Daub,Mayor Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha,Nebraska 68183
0
1234 SOUTH 13TH STREET LLC
REDEVELOPMENT PLAN
The proposed rehabilitation of the storefront building at 1234 South 13th Street will
reclaim a deteriorated building for residential and commercial use and contribute to
the revitalization of the 13th Street corridor at the southern edge of the downtown.
The approximately 0.57 acre site is in an area zoned General Industrial with a
request for a zoning change to Neighborhood Business District recommended for
approval by the Planning Board on August 4, 1999. The building is in an area
previously designated as blighted and substandard; the building itself has been cited
for code deficiencies with consideration of condemnation laid over to December
1999.
Renovation of this historic brick building will create 12 three-bedroom apartments
suitable for large families earning 60°/0 or less of area median income. The
apartments will use space on the basement or garden level, street level and second
story, and will open to the alley side of the building. The site will be landscaped to
provide a play area and a 16-stall parking lot added at the back of the site with alley
access. Public sidewalks along 13th Street will be improved with landscaping. The
restored storefronts will provide six commercial bays with a total of 4,500 square feet.
The approval of Tax Increment Financing of $180,000 as a portion of the $1,891,000
total project cost will make this project possible. TIF is necessary for rehabilitation
costs due to the extensive rehabilitation and the lower cash flow from low/mod-
income rents. The financing package for the project includes Rental Rehabilitation
funds, historical tax credits, low income housing tax credits, Affordable Housing
Program funds of the Federal Home Loan Bank, Nebraska Affordable Housing Trust
funds and partner equity.
The City of Omaha's share of the total cost is limited to $180,000 TIF financing and
$102,000 CDBG Rental Rehabilitation Funds. The TIF funds will be expended on.
public improvements and site specific development costs; $5,000 of TIF will be
allocated back to the City for public improvements. The TIF debt would be retired
over 15 years. Excess ad valorem taxes resulting from the renovation would
produce approximately $28,378 per year.
The developer will be responsible for all site specific construction, sidewalk
improvements and paving of the north-south alley to the project site. The City will
be responsible for overlay paving of the east-west alley between 13th and 14th
Streets. Gas, water, electricity, and sewer are all readily available in adjacent rights-
of-way; the developer will be responsible for all utility connections and hook-ups for
the project. Construction is anticipated to be completed by August, 2000.
1
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Attached maps show the legal survey (Exhibit A), vicinity (Exhibit B) and the zoning
(Exhibit C) of the redevelopment site. The legal description of the site is the East 141
feet of Lots 4, 5, 6 and 7, Block 4, Kountze 3rd Addition, an addition to the City of
Omaha as surveyed, platted and recorded in Douglas County, Nebraska. 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.
PROJECT DESCRIPTION
This project will develop an historic building on 13th Street for residential
apartments and commercial space as shown in the attached site plan and drawings
(Exhibit D). The building located on 13th Street between Pierce and William Streets
is known for its historic townhouse appearance with second floor bay windows
overlooking.the street and storefront commercial bays on the street level. The
building will be renovated to resemble its original appearance.
The Bay View Apartments will include 12 three-bedroom apartments suitable for
large families. The apartments are designed to include high efficiency furnaces and
air conditioning, stack washers and dryers, microwave ovens and dishwashers.
Each apartment will be 1,220 square feet and have one and a half baths. Six
apartments will use space on the lower garden level, six will be split level on the
street level and second story of the building. The garden level apartments will open
to the rear of the building; the split level to the front. The completed apartments
will be affordable to families earning 60% or less of Area Median Income.
The site on the south side of the building will be landscaped with playground
equipment to provide a play area for children. This play area is located on the lower
garden level with a stair way to provide access from the street.
The historically restored storefronts facing 13th Street will provide six bays with a
total of 4,500 square feet of commercial space. The sidewalk on 13th Street will be
improved with landscaping.
MARKET
Market studies in this area indicate that the population consists of 70% low-
moderate income households and that 31 to 40% of these households are
experiencing rent cost overburden. In addition to providing decent affordable
housing, this rehabilitation project will contribute to the revitalization of this area.
This historic renovation project supports the momentum of previous development
in the area which includes the Town View Plaza and Town View Terrace homes
across 13th Street and the Pierce Point town house development at 15th and Pierce
Street. The new commercial development will serve area residents and employees
and help to reestablish this area as a Neighborhood Business District on the 13th
Street corridor leading into the downtown area.
2
UTILITIES/TRANSPORTATION
The project site at 1234 South 13th Street is adequately served by existing gas, water
and electrical utilities and sewer lines. The developer will be responsible for any
necessary new leads onto the site. Adequate transportation access is provided from
13th and 14th Streets. Access to the parking lot will be by an alley way north to the
alley between 13th and 14th Streets. The developer will provide asphalt surface for
the north/south alley way. The alley surface between 13th and 14th Streets is
asphalt overlay on brick and is maintained by the City. The City will provide a new
asphalt overlay for this alley.
DEVELOPMENT FINANCING PLAN SUMMARY
* Primary Financing/Mortgage $ 175,000 9 %
Gen. Partner capital contribution $ 95,000 5 %
Rental Rehab -CDBG $ 102,000 5 %
Historical Tax Credits $ 314,860 17%
Low Income Housing Tax Credits $ 861,140 46%
Affordable Housing Program $ 127,000 7 %
Housing Trust Fund $ 36,000 2 %
* Tax Increment Financing $ 180,000 9 %
Total Project Funding $1,891,000
* Primary Financing and Tax Increment Financing at approximately
8.78% interest, rate to be fixed at the time of closing
BLIGHT AND SUBSTANDARD CONDITIONS
The project site is in an area previously designed as blighted. The unemployment
in this census tract is greater than 120% of the state average and the median age of
the structures in the area is 60 years. The area per capita income is $4,485 lower than
the City of Omaha average and the area showed population loss in the previous
census. The building has been cited with code violations with consideration of
condemnation laid over until December 1999.
ZONING/PARKING
The proposed land use is in compliance with the Master Plan. The site is zoned
General Industrial (GI). An application for a zoning change from GI to
Neighborhood Business District (NBD) was recommended for approval at the
August 1999 Planning Board meeting. Multiple-family residential use is suitable in
this zone. Surrounding zoning includes GI and R7; surrounding land uses are
mixed and include commercial, light industrial and residential.
3
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The project includes development of 16 parking stalls behind the building with alley
access. Public parking for the six commercial bays is available along 13th Street.
COST/BENEFIT ANALYSIS
Tax shifts resulting from the granting of tax incentives: Taxes received on the base
value before rehabilitation will continue to be divided among the appropriate
subdivisions of government. Excess ad valorem taxes resulting from this
redevelopment project are projected to be approximately $28,378 per year. The
principle amount of the Tax Increment Financing loan for this project is $180,000.
The excess taxes will be applied to retire this TIF debt for a period of up to 15 years.
This use of TIF will make this project feasible and will cause no shift of taxes
currently paid to subdivisions of government. After the TIF loan is retired, the
government subdivisions will realize the benefit of the added value taxes.
Historically, TIF loans have been repaid in an average of 10 years.
Public infrastructure and community public service needs impacts and local tax
jmpacts arising from project- In addition to the rehabilitation of a blighted historic
building, this project will include improvements to the public sidewalk on 13th
Street. Access to the parking area for this project will be from the alley between 13th
and 14th Streets. This may hasten the demand for maintenance of this asphalt
overlay on brick alley which is in currently in poor condition. This project will not
have a negative impact on public infrastructure and community public service
needs and local taxes.
impacts on employers and employees of firms receiving tax incentives: The direct
impact for the developer receiving Tax Increment Financing is to make the
rehabilitation of this dilapidated building a viable project. The project will create job
opportunities during the construction period.
Jmpacts on Nebraska employers and employees not receiving direct incentives or
benefits: The Tax Increment Financing provided to this project does not compete
with other housing developments in the area. This residential development will
provide affordable housing suitable for larger families earning 60% or less of the
Area Median Income; businesses which locate in the storefront bays will serve area
residents and employees and help to reestablish this area as a Neighborhood
Business District.
Other Impacts Relevant to Consideration of Costs and Benefits: The project site is
currently a vacant dilapidated property cited with code violations. The use of TIF
for this project will create an enhanced property tax base for the future, provide 12
units of affordable housing and storefront commercial space, reclaim an historic
townhouse structure, and contribute to the revitalization of the 13th Street corridor
at the southern edge of the downtown area.
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EXHIBIT "A"
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Exhibit "B"
1234 South 13th Street L.L.C.
Redevelopment Area
Vicinity Map
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LEGEND .
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Subject Property - 1234 South 13th Street D°
Exhibit "C"
1234 South 13th Street L.L.C.
Redevelopment Area
Zoning Map
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LEGEND
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4 :::_:„.:;.:;::.:„: Subject Property - 1234 South 13th Street, 0.57 Acres
(Change of zoning from GI to NBD requested and °
approved by Planning Board August 4, 1999)
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EXHIBIT "D"
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c-25A CITY OF OMAHA
LEGISLATIVE CHAMBER '
Omaha,Nebr October 19 19 99
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 0.57 acre 1234 South 13th Street L.L.C.
redevelopment site is located at 1234 South 13th 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, 1234 South 13th Street L.L.C. Redevelopment Plan provides for
residential and commercial renovation of the Bayview Building as described in Exhibit"A",attached
hereto and made a part hereof; and,
•
WHEREAS,the 1234 South 13th Street L.L.C. Redevelopment Plan provides for the
use of Tax Increment Financing for public improvements and 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 1234 South 13th Street L.L.C. Redevelopment Plan was approved
by the City of Omaha Planning Board on September 1, 1999.
By
Councilmember '
Adopted
City Clerk
Approved
Mayor
ti.
C-25A• CITY OF OMAHA
LEGISLATIVE CHAMBER `-
Omaha,Nebr October 19 19 99
PAGE -2-
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF OMAHA:
THAT, the attached 1234 South 13th Street L.L.C. 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 the 1234 South 13th Street L.L.C. Redevelopment Area at 1234
South 13th Street.
APPROVED S T RM:
ii
ITY TO Y ATE
P:\PLN3\9167.SAP
By 67a4
`-2
.1.7W,e-lc 1
Councilmember
Adopted u — 9....1994 7-0
L, ftyCle1
Approved
. , / A - f l
Mayor
CO
� Z Po .P`O C•a. a '� 0 �.i
NO 4_,N...
1 c < CI �. nPzi +
V7:0%0 g\k4 gi . • • , . i„ u.., .-A ,D... „,-,- .„.2- ..% _,.., •\z 76. 6
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4.
•
THE DAILY RECORD
"NOTICE HEARING
OF OMAHA
NOTICE OF PUBLICC HEARINGING ON THE
1234 SOUTH 13TH STREET L.L.C.
REDEVELOPMENT PLAN RONALD A. HENNINGSEN,Publisher
Notice ishereby given that the Omaha PROOF OF PUBLICATION
CityCoouncilthas set Tuesday, November 9,
- 1999 at 2:00 o'clock P.M. as the date of
Public Hearing on the 1234 South 13th Street
L.L.C. Redevelopment Plan. UNITED STATES OF AMERICA,
• The 1234 South 13th Street L.L.C. The State of Nebraska,
Redevelopment Plan is approximately 0.57 District of Nebraska, SS.
acre located at 1234 South 13th Street.The ou County of Douglas, .
Redevelopment Plan is located within an iCit ttm of Omaha,
area declared blighted and substandard and
in need of redevelopment by the City
Council on June 2, 1992: JOHN P. EGLSAER
The 1234 South 13th Street L.L.C.I
Redevelopment Plan proposes the f being duly sworn,deposes and says that he is
rehabilitation of the historic Bay View
building to create six storefront commercial
bays and 12 three bedroom apartments ADVERTISING MANAGER
suitable for large families with low to
moderate incomes.
The plan proposes 5180,000 in Tax of THE DAILY RECORD,of Omaha,a legal newspaper,printed and
Increment Financing. The total project cost is' published daily in the English language, having a bona fide paid
- estimated to be$1,891,000. A copy of said 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 Hearing will be held before the City I past;
that the printed notice hereto attached was published in THE
Council of the City of Omaha, in the
Legislativener, 9amFarn Omaha/Douglas Civic DAILY RECORD,of Omaha,on
Center, 1819 Farnam Street, Omaha,.
• Nebraska.
BUSTER BROWN, October 21 & 28, 1999
City Clerk
h 10-21&28-99
- That said-Newspaper during that time was regularly published and
in gee eri al ocirculation in the County of Douglas, and State of
Nebrslca�;,,„„vCy
Ptfiblish@r's Fee $. .•
2 T. ....t. 111....,
iddiuonal Copies," k. Subs .in my pr1.99..
worn to
>x: COMMjsaliiilli.....il
.EX. PIRES42.8�9 i before me this day of
l# 3btal• $ r` > Oct.'l er
ql••••..:. S�_ 4l �
t h FOF NEB P= No :. Public in and fo 1'NI -Gtwnty,
State of Nebraska
"NOTICE TO PUBLIC" LL PROOF OF PUBLICATION
HEARING PUBLIC
1234 SOUTH 13TH STREET
L.L.C.RE PLANLOPMENT
Notice is hereby given that
the Omaha City Council has
set Tuesday,City.
1999AFFIDAVIT
2:00eer at o'clock b ass
tone tha1e2 o fS ouPublic thH eg� e(negt L.L.C.Redevelopment Plan.
The 1234 South 13th Street State of Nebraska, County of Douglas, ss:
L.L.C. Redevelopment Plan
is approximately 0.57 ocre
located1234South meth
SMichelle Revis
Street.et. The Redevelopment
Plan
Is
deblighted and being duly sworn,deposes and says
substandardI velop and in need Cityof
that he is an employee of The Omaha World-Herald, a legal dailynewspaper
redevelopment by the g
Council on June 2,1992. printed and published in the county of Douglas and State of Nebraska,and of
The 1234 South 13th Street
L.LC. Redevelopment Plan general circulation in the Counties of Douglas and Sarpy and State of
i proposes the rehabilitation
of the historic Bay View
building to create six store- Nebraska, and that the attached printed notice was published in the said
front commercial bays and
12 three bedroom art-
newspaper on the 2.1 day of . .0C,-- '
ments suitable for large•
families with low to modes-
atee incomes. A D, 1999- . , and that said newspaper is a legal
The plan proposes $180,000 newspaper under the statues of the State of Nebraska. The above facts are
In Tax Increment Financing.
[The total ob project cost
000is
within my personal knowledge. The Omaha World-Herald had an average
matcopy or said plan Is avail-
able for circulation of . . . 226.030 daily, 282,172 Sunday,in 19
the City clerk's
inspection in
s Office
Public Hearing will be held
before the City Council of
the City of Omaha, in the k71 Advertising
Legislative Chambers Oma- Title•'ha/Douglas Civic (enter, (Signed)
1819 Farnam Street,Omaha,
Nebraska.
Buster Brown
City Clerk
ALL REQUESTS FOR SIGN Subscribed in my presence and sworn to before me this 2
LANINTERPRETERS 99
(SIGNERS)WILL
REQUIRE A MINIMUM OF
48 HOURS ADVANCE day of O.C. . - 19
IF ALTERNATIVE
FORMATS ARENEEDEDE
REQUIRE A MINIMUM OF
72 HOURS ADVANCE NOTICE. De,04-14,---"Ot
PLEASE NOTIFY TAMMY
BIORANROGSK I 4S-4T ID Notary Public
NEED F
ARRANGEMENTS
R EM
TO BE MADE
III GENERAL NOTARY State of Nebraska
DEBRA 1.MARCO
Printer's Fee $ ,t My Comm.Exp. Sept. 13. 2003
Affidavit
Paid by
•
313-$-007
PTOTICE TO PUBLIC"
NOTICE OF PUBLIC PROOF OF PUBLICATION
HEARING ON THE
11234 SOUTH 13TH STREET
L.L.C.REDEVELOPMENT
PLAN
Notice is hereby given that
'the Omaha City Council has
set Tuesday, November 9,
1999 at 2:00 o'clock P.M.as
the date of Public Hearing AFFIDAVIT
the South 131fi Street
C.Redevelopment Plan.
The 1234 South 13th Street
L.L.C. Redevelopment Plan State of Nebraska, County of Douglas, ss:
is approximately 0.57 acre
located at 1234 South 13th
Street. The Redevelopment
Plan Is located within an Michelle Revis
area declared blighted and , being duly sworn,deposes and says
substandard and In need of
redevelopment
���el on ente byl9the City that he is an employee of The Omaha World-Herald, a legal daily newspaper
The 1234 South 13th Street printed and published in the county of Douglas and State of Nebraska, and of
L.LC. Redevelopment Plan
o oppotoe shlt a rec Bability a ew general circulation in the Counties of Douglas and Sarpy and State of
building to create six store- Nebraska, and that the attached printed notice was published in the said
frontre commercial aps art-
newspaper p pe �/ 2 g day of . .��12 three bedroom a art- news a r on the f
memn�ts suitable for large
ate incomes. low to.odor- A D, 19 gg. . , and that said newspaper is a legal
The plan proposes $180,000 newspaper under the statues of the State of Nebraska. The above facts are
in Tax Increment Financing.
The total protect cost is estii- within my personal knowledge. The Omaha World-Herald had an average
mated to be $1,891,000. A
copy of ppsaid plan isavail-
able clerk's inspectionffic In circulation of . . . .226,630 daily, . . 282,172. . . . Sunday,in 19 .�f.. .
I Public Hearing will be held
before the City Council of n /�
the City of Omaha, in the Tiile Advertising
ha/Douglas
a Chambers Oma- (Slne `^�
ha/Douglas Civic center,
1819 Farnam Street,Omaha,
Nebraska.
Buster Brown
City Clerk Subscribed in my presence and sworn to before me this 2 ?
ALL REQUESTS
FOR
SIGNL „
INTERPRETERS
REQUIRENAMINIVMUMOF day of C: - 19 99
48 HOURS ADVANCE
NOTICE. ,„-
�
IF ALTERNA
FORMATS ARE
ALL REQNCEwIL % C�
REQUIRE A MINIMUM OF
72 HOOURSSADVDVANCE
NOTICE. &1-1?0‘4
BIODROWSKI�F4444T55�53NIF Notary Public
ARRANGEMENTS NEED
TO BE MADE
A GENERAL NOTARY-State of Nebraska
III DEBRA L.MARCO
Printer's Fee $ My Comm.Exp. Sept.13,2003
Affidavit
Paid by
• 313-G11007