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ORD 41292 The Centerline TIF AgreementCity of Omaha Jean Stothert, Mayor Honorable President !"" - ,_.\ r�· I • I r-- , ........ �-!_r- !\•�- li L.'-� ,_, I V ._ L,, 20l10CT-6 Pt': i:44 October 17, 2.017 ancl Members of the City Co.uncil, Planning Departtp.ent Omaha/Douglas Civic Center 1819 Farnam Street, Suite 1100 Omaha, Nebraska 68183 (402)444-5150 Telefax (402) 444-6140 David K. Fanslau Director The attached Ordinance transmits a Ta)( Increment Financing (TIF) Redevelopment Loan Agreement between. Lawnfield Development, LP and the City of Omaha for a redevelopment site located at 7001 Oak Street. This Reclevelopment Agreement implements The Centerline Tax Increment Finc1ncing (TIF) Redevelopment Project Plan, which proposes the new construction of a 158 unit market rate apartment complex, comprised of two connected five story buildings. The Redevelopment Agreement authorizes the City's participation in t.he redevelopment by providing up to $2,941,000.00 to offset TIF eligible expenses for acquisition, demolition and removal of the fountjations remc1ining from a previous failed redeveloprrient · project, site prep, site utility connections, · architectµral and engjneering . fees, and public improvements as reqµired. · The total estimated project cqsts are $23,500,000.00, but are subject to change as final costs come jn. · · Your favorable co.nsideration of this Ordinance will be appreciated. Respectfully submitted, ��ffM,---er•U·url DavidK Fanslau�J Date Planning Director a�� � ertCLltubbe,P.E Public Works 'Director q_-z.,7-, 1 Date Approved: Referred to City Council for Consideration: -1�&UkStep �B.Curtiss Finance Director · ---f L 2561 dlh ORDINANCE NO. AN ORDINANCE approving redevelopment and tax increment financing loan agreement between the City of Omaha, a Nebraska Municipal Corporation in Douglas County, Nebraska, and Lawnfield, LLC to implement The Centerline Tax Increment Financing (TIF) Redevelopment Project Plan for a project site located at 7001 Oak Street, which proposes the new construction of a 158 unit market rate apartment complex, comprised of two connected five story buildings; the agreement authorizes the use of up to $2,941,000.00 in excess ad valorem taxes (TIF) generated by the development to help fund the cost of the project; and providing for an effective date. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA; Section 1. The Mayor is hereby authorized to execute, and the City Clerk to attest, the attached Redevelopment Agreement between the City of Omaha and Lawnfield, LLC, to authorize the use of up to $2,941,000.00 in TIF that will be used to offset TIF eligible expenses for acquisition, demolition and removal of the foundations remaining from a previous failed redevelopment project, site prep, site utility connections, architectural and engineering fees and public improvements as required, for a project with total estimated costs of $23,500,000.00, in addition to any other documents necessary or appropriate to implement the Redevelopment Agreement or to consummate the loan. Section 2. Said Redevelopment Agreement contains obligations undertaken pursuant to the Nebraska Community Development Law and Sections 18-2147 through 18-2150, and, are not otherwise obligations of the City of Omaha. ORDINANCE NO. 4f :}!da:! PAGE TWO Section 3. This Ordinance shall be in full force and take effect fifteen (15) days from and after the date of its passage. INTRODUCED BY COUNCILMEMBER: �,� OCT 3 1 20tJ:J 7-QPASSED _____________ _ ATTEST: APPROVED BY: �--S-bb� MAYOR OF THE CITY OF OMAHA \\/'Z-=,- 2561 dlh ity of Omaha DA TE APPROVED AS TO FORM: AS'sis2�NEY )\}2/17 DATE DATE REDEVELOPMENT AGREEMENT THIS AGREEMENT is entered into by and between the City of Omaha, a Nebraska Municipal Corporation in Douglas County, Nebraska, and Lawnfield, LLC, a Nebraska limited liability company. RECITALS: WHEREAS, on July 11, 2017 by Resolution No. 859, the City Council of the City of Omaha approved The Centerline Tax Increment Financing (TIF) Redevelopment Project Plan for a project located at 7001 Oak Street, which proposes the new construction of a 158 unit market rate apartment complex, comprised of two connected five story buildings as shown in Exhibit "A", which is attached hereto and made a part hereof; and, WHEREAS, The Centerline Tax Increment Financing (TIF) Redevelopment Project Plan recommends allowing up to $2,941,000.00 in TIF to offset eligible expenses, as allowed by the· Community Redevelopment Law, for acquisition, demolition and removal of the foundations remaining from a previous failed redevelopment project, site prep, site utility corinections, architectural and engineering fees and public improvements as required, for a project with total est'imated costs of $23;500,000.00; and, WHEREAS, this Agreement is a ·redevelopment agreement prepared pursuant to the Nebraska Community Development. Law in order to implement the above-referenced Redevelopment Plan, and contemplates the use of the excess ad valorem taxes generated by such development. ·IN CONSIDERATION OF THESE MUTUAL COVENANTS, THE PARTIES AGREE AS FOLLOWS: SECTION 1. DEFINITIONS - I - -2- -4- 3.3.2 4.45% 3.3.3 2.3 18-2147 3.5 3.5.1 $540,000.00 $14,220,000.00 [$540,000.00 $13,680,000.00 3.5.2 3.5.3 3.5.4 (90%) 3.5.5 in the event of casualty, apply such insurance proceeds to the reconstruction of the Redevelopment Project, to the extent permitted by Owner's mortgage lender,and . . 3.5.6 cause all real estate taxes and assessments levied on the Redevelopment Site to be paid prior to the time such become delinquent. The Owner acknowledges and agrees that any portion of the Excess ad valorem Taxes levied in the fifteenth year under this Redevelopment Agreement that become delinquent shall be forfeited and returned to the appropriate public bodies. In the. event the Owner violates or breaches any of the agreements, representations or covenants in this section, the Owner may be required by the City to surrender any remaining amount outstanding of the Redevelopment Promissory Note, after reasonable notice and opportunity to cure. Each of the foregoing covenants shall be referenced in a Notice of Redevelopment Agreement to be recorded by the Owner with the Douglas County, Nebraska Register of Deeds within sixty (60) days of the execution of this Redevelopment Agreement. The Owner shall include the same covenants and restrictions agreed to above in · any cot1veyance of the Redevelopment Site, or any portion thereof, including but not limited to, any sale, assignment, sale-leaseback or other such transfer of the property, but shall not be responsible otherwise for the actions of the third parties if these covenants are breached by such third parties if the Owner no longer owns the property. �.6 shall provide the City of Omaha Finance Department with an executed copy of the Redevelopment Promissory Note prior to disbursement of any proceeds· for repayment of such Note pursuant to Section 2.5, so that such payment can be noted on the Note and the Note returned to Owner. 3. 7 Owner shall provide the City with a penal bond in the amount of the TIF eligible expenses as may be required by Section 18-2151 of the Redevelopment Law. A reasonably sufficient payment and performance bond from the Owner's general contractor or contractors will satisfy this requirement. 3.8 install and construct all of the public infrastructure improvements required and referenced in The Centerline Tax Increment Financing Project Plan approved by the City Council of the City of Omaha on July 11, 2017 by Resolution No. 859, in coordination with the Owner's development team and the City of Omaha Public Works Department. SECTION 4. PROVISIONS OF THE AGREEMENT 4.1 Equal Employment Opportunity Clause. Annexed hereto as Exhibit "D" and made a part hereof by reference are the equal employment provisions of this Agreement, wherein the "Owner" is referred to as "Contractor". -6- 4.2 4.3 4.4 4.5 4.6 4.7 Non-discrimination. The Owner shall not, in the performance of this Agreement, discriminate or permit discrimination in violation of federal or state laws or local ordinances because of race, color, sex, age, political or religious opinions, affiliations or national origin. Captions. Captions used in this Agreement are for convenience and are not used in the construction of this Agreement. Applicable Law. Parties to this Agreement shall conform with all existing and applicable city ordinances, resolutions, state laws, federal laws, and all existing and applicable rules and regulations. Nebraska law will govern the terms and the performance under this Agreement. Interest to the City. Pursuant to Section 8.05 of the Home Rule Charter, no elected official or any officer or employee of the City of Omaha shall have a financial interest, direct or indirect, in any City of Omaha Agreement. Any violation of this section with the knowledge of the person or corporation contracting with the City of Omaha shall render the Agreement voidable by the Mayor or Council. Merger. This Agreement shall not be merged into any other oral or written Agreement, lease or deed of any type. Administrative Amendments. The parties hereto recognize that certain administrative amendments may need to be made to this Agreement in order to carry out the intent of this Agreement and the Redevelopment Plan. The parties hereto recognize that any such minor amendments to this Agreement negotiated and executed by the parties' respective representatives, other than those defined in § 18-2117 of the Redevelopment Law, shall be considered and treated as administrative in nature and not as a legislative amendment to this Agreement or the Redevelopment Plan. However, amendments of the following types shall be referred to the City Council for approval: (1) (2) (3) (4) Those that materially alter or reduce existing areas or structures otherwise available for public use or access; Those that require the expenditure of $75,000.00 or more of City funds above the levels cont�ed in this Agreement; Those that increase City loans, bonded indebtedness, deferred payments of any types, or other financial obligations above the levels contained in this Agreement; and Those otherwise considered major or material in the reasonable discretion of the City. -7- 4.8 Modification. This Agreement contains the entire agreement of the parties. No representations were made or relied upon by either party other than those that are expressly set forth herein. No agent, employee or other representative of either party is empowered to alter any of the terms herein unless done in writing and signed by an authorized officer of the respective parties . . 4.9 Assignment. The Owner may not assign its rights under this Agreement without the express prior written consent of the City; such consent not to be unreasonably withheld. The Mayor may, without City Council approval, approve, in writing, the assignment of all rights hereunder to a successor entity owned by, or under common control with Owner. 4.10 Strict Compliance. All provisions of this Agreem ent and each and every document ·that shall be attached shall be strictly complied with as written, and no substitution or change shall be made except upon written direction from authorized representatives of the parties. · 4.11 Binding Effect. This Agreement shall be binding upon the Owner's successors and assigns, and shall run with the land described in Exhibit "C", attached hereto, to the benefit of the City of Omaha. SECTION 5. AUTHORIZED REPRESENTATIVE In further consideration of the mutual covenants herein contained, the parties hereto expressly agree that for the purposes of notice, including legal service of process, during the term of this Agreement and for the period of any applicable statute of limitations thereafter, the following named individuals shall be the authorized representatives of the parties: (1)City of Omaha: David K. Fanslau Planning Director City Planning Department · Omaha/Douglas Civic Center 1819 Farnam Street, Suite 1100Omaha, NE 68183 (2)Owner: ·Lawnfield, LLC 2430 South 73rd Street Suite 200 Omaha, NE 68124 Attn: Julie Stavneak Legal Service c/o City Clerk Omaha/Douglas Civic Center 1819 Farnam Street . Omaha, NE 68183 Either party may designate additional representatives or substitute representatives bygiving written notice thereof to the designated representative of the other party. - 8 - Executed this t' day of \JOO'i:N:)�',(,20D_. ATTEST: CI�E C!:OF 0 APPROVED AS TO FORM: 2561 dlh ,/2, / IJ DATE - 9 - CITY OF OMAHA: MAYOR OF THE CITY OF OMAHA DATE Executed this ,q day of <;e.-frt.M 8E-L. , 2011. STATE OF NE. ) ) § COUNTY OF '[)o"' f-t..� ) OWNER: Lawnfield, LLC _____ _ Julie Stavneak, Manager, Lawnfield, LLC, acknowledged the foregoing Redevelopment Agreement before me this _L!_ day of sf,f T f-,fa. 6 c..fL , 2017 . . J::ENEAAL NOTARY· State of Nebraska· RYAN SPELLMAN Mv Comm, Exp. July 29, 2020 �-- - 10 - /;• SITE PLAN • LEVEL 1 a n,.,,...-.... -.. c ------- �STATISTICS LOT LOT SIZE SITE AREA/UNIT FAR SETBACKS (PER ACl--4) FRONT YARD STREET SIDE YARD INTERIOR SIDE YARD REAR YARD BUILDING COVERAGE IMPERVIOUS COVERAGE BUILDING: TOTAL SIZE BUILDING FOOTPRINT HEIGHT TOTAL UNITS UNITS PER ACRE PARKING: SURFACE STALLS GARAGE STALLS TOTAL STALLS HANDICAP STALLS ON-STREET STALLS PARKING RATIO 2.9 ACRES 800 1.57 15 FT 15 FT 5 FT 15 FT 32'. 61'.t 198,787 GSF 40,161 SF 60 FT AVG 158 54.5 98 (35 COMPACT) 112 210 7 18 1.44 SCl·IElv1 1dlC J DEVELOPMENT Ill/Ill/I/ I-IBt\D E S I G N IHE CEl,ITl]·�l.ll,fE ,,.,·Jt, ', : ' ', IUlOCATION: H.'\1116\l,116JDfVa.0,Ma«1n,m&OAlllllffllleDfllla.Of�I0\1,l ... l'lANI.DWO EXHIBIT "B" THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE " '33 ACT") AND MAY NOT BE TRANSFERRED, ASSIGNED, SOLD OR HYPOTHECATED UNLESS A REGISTRATION STATEMENT UNDER THE '33 ACT SHALL BE IN EFFECT WITH RESPECT THERETO AND THERE SHALL HA VE BEEN COMPLIANCE WITH THE '33 ACT · AND ALL APPLICABLE RULES AND REGULATIONS THEREUNDER, OR THERE SHALL HAVE BEEN DELIVERED TO THE CITY OF OMAHA PRIOR TO TRANSFER, ASSIGNMENT, SALE OR HYPOTHECATION AN OPINION OF COUNSEL, SATISFACTORY TO THE CITY OF OMAHA TO THE EFFECT THAT REGISTRATION UNDER THE '33 ACT IS NOT REQUIRED. REDEVELOPMENT PROMISSORY NOTE $2,941,000.00 FOR VALUE RECEIVED, the undersigned, City of Omaha (hereinafter known as "Borrower"), promises to pay Lawnfield, LLC, 2430 South 73rd Street Suite 200, Omaha, NE 68124, Attention: Julie Stavneak, Manager ("Holder"), and/or its assigns, the principal sum of Two Million Nine Hundred Forty-One Thousand and No/100 Dollars ($2,941,000.00), together with interest thereon at the rate of 4.45% per annum from the date of the execution of this Note until paid in full. The principal balance and interest thereon shall be due and payable to the Holder of this Redevelopment Promissory Note as and at such time as any excess ad valorem taxes generated by the Redevelopment Project as set forth in that certain Redevelopment Agreement dated the ·Lu day of )Jt)'\I t�, 20 \1, by .and between the Borrower and the Holder (the "Redevelopment Agreement;') are collected by the Borrower and available for the retirement of this debt. In the event of default under this Redevelopment Promissory Note, all sums secured by this Redevelopment Promissory Note or any other agreement securing this Redevelopment Promissory Not� shall bear interest at a rate equal to five percent (5%) above the prime rate as published by the Wallstreet Journal from time-to-time; however, in the event said interest rate exceeds the maximum rate allowable by law, then such rate of interest shall equal the highest legal rate available. The Borrower may prepay the principal amount outstanding in whole or in part, without penalty or the prior consent of the Holder. In the event the monies collected and held in that special fund established under Section 18-2147 of the Nebraska Revised Statutes and pursuant to the Redevelopment Agreement are insufficient to pay in full all amounts due and owing after all excess ad valorem taxes generated by the Redevelopment Project, as set forth in the Redevelopment Agreement, have been collected by the Borrower and paid, immediately upon being available, towards the retirement of the amounts due hereunder, then the Holder shall waive any unpaid portion of the principal and interest due. In the event this Redevelopment Promissory Note is referred to an attorney for collection the Holder shall be entitled to reasonable attorney fees allowable by law and all court costs and other exp�nses incurred in connection with such collection. The Borrower shall be in default in the event the Borrower shall fail to pay, when due, any amount required hereunder. ·Demand, presentment, protest .and notice of nonpayment under this Redevelopment Promissory Note are hereby waived. No delay or omission on the part of the Holder in exercising any remedy, right or option under this Redevelopment Promissory Note shall operate as a waiver of such remedy, right or option. In any event, a waiver on any one occasion shall not be. construed as a waiver or bar to · any such remedy, right or option on a future occasion.· · Any notice provided for in this Redevelopment Promissory Note to the Borrower or the Holder shall be in writing and shall be given by regular mail to the Holder or Borrower, or at such other address as either party may designate by notice in writing. This Redevelopment Promissory Note shall be governed by and construed in accordance with the Laws of the State of Nebraska. All payments hereunder shall be payable in lawful money of the United States of Am.erica and shall be legal tender for public and private debts at the time of payment. ATTEST: City�--�•lro:;;;;-- CITY OF OMAHA, A Municipal Corporation By� &---d..:Q 1VaiJw11 Mayor of the City of Omaha · . Dat APPROVED AS TO FORM: u/UW1-Q1 bate - 2 - I. I i -� ,. __ .. · --·-:----,II�---------------------------------, • ·, 8 I 1!1 11••i= �11 �••A_,_ J.g:JU.£S (JNZ,!, V>ISVll83N 'AJ.Nnoo sv,snoa 'VHVl'lo. 9 lYld3!1 Cll38NMYI 'I 101 U o ..���Ii A3A!!nS SdSN/VllV ! e I � • I Ii!; !! I� ;I §gs· � r;,1 0 • E • I � • i ! i ! I ' I ' Ii . I sh ;! d I iii ! i I ·; : � i ii In i d 5 i:;l !I !; !I �i J � ______ ._,,,.,.,_,. ___ ,.. ... ___ . EXHIBIT"D" EQUAL EMPLOYMENT OPPORTUNITY CLAUSE During the performance of this Agreement, "Provider" agrees as follows: (1)Provider shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, age, sexual orientation, gender identity, disability or national origin. Provider shall ensure that applicants are employed and that employees are treated during employment without regard to their race, religion, color, sex, sexual orientation, gender identity, or national origin. As used herein, the word "treated" shall mean and include, without limitation, the following: recruited, whether by advertising or by other means; compensated; selected for training, including apprenticeship; promoted; upgraded; demoted; downgraded; transferred; laid off; and terminated. Provider agrees to and shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officers setting forth the provisions of this nondiscrimination clause. (2)Provider shall, in all solicitations or advertisements for employees placed by or on behalf of Provider, state that all qualified applicants will receive consideration for employment without regard to race, religion, color, sex, sexual orientation, gender identity� or national origin, age, disability. (3)Provider shall send to each labor union or representative of workers with which it has a collective bargaining agreement or other contract or understanding a notice advising the labor union or worker's representative of Provider's commitments under the Equal Employment Opportunity Clause· of the City and shall post copies of the notice in conspicuous places available to employees and applicants for employment: (4)Provider shall furnish to the City Contract Compliance Officer all Federal forms containing the· information and reports required by the Federal government for Federal contracts under Federal rules and regulations, and including the information required by Sections 10-192 to 10-194, inclusive, and shall permit reasonable access to his records. Records accessible to the City Contract Compliance Officer shall be those which are related to Paragraphs (1). through (7) of this Exhibit and only after reasonable advance written notice is given to Provider. The purpose for this provision is to provide for investigation to ascertain compliance with the program provided for herein. ( 5). Provider shall take such actions as the City may reasonably direct as a means of enforcing the provisions of Paragraphs (1) through (7) herein, including penalties and sanctions for noncompliance; however, in the event Provider becomes involved in or is threatened with litigation as the result of such directio� by the City, the City will enter into such litigation as necessary to protect the interests of the City and to effectuate the provisions of this division; and in the case of contracts receiving Federal assistance, Provider or the City may request the United States to enter into such litigation to protect the interests of the United States. (6)Provider shall file, if any, compliance reports with Provider in the same form and to the same extent as required by the Federal government for Federal contracts under Federal rules and regulations. Such compliance reports shall be ·filed with the City Contract Compliance Officer. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of Provider. (7)The Provider shall include the provisions of Paragraphs (l) through (7) of this Section, "Equal Employment Opportunity Clause", and Section 10-193 in every subcontract or pmchase order so that such provisions will be binding upon each sub-Provider or vendor. Total Public Improvement Costs Site Acausition Cost Offset Bv Current (Estimated) Assessed Value Sitework (Above & Bevond Public lmorovement Costs) Architecture & Enaineerina Fees Environmental Services & Studies Market Studv & Aooraisal . Tif Fees S 3,590,000 Item Submitted By: Don Seten/Debbie Hightower Department: Planning Council Meeting Date: AN ORDINANCE approving edevelopment and tax increment financing loan agreement between the City of Omaha, a Nebraska Municipal Corporation in Douglas County, Nebraska, and Lawnfield, LLC to implement The Centerline Tax 'increment Financing (TIF) Redevelopment Project Plan for a project site located at 7001 Oak Street, which proposes the new construction of a 158 unit market rate apartment complex, comprised of two connected five story buildings; the agreement authorizes the use of up to $2,941,000.00 in excess ad valorem taxes (TIF) generated by the development to help fund the cost of the project; and providing for an effective date. 2561 dlh Presented to City Council City Clerk