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RES 2016-0716 - 1207 Cass TIF redevelopment project plan op4AHA,Ng8 )f Planning Department \ a A7 Lvf e._ Omaha Douglas Civic Center T��P.��►��41 1819 Farnam Street,Suite 1100 „0 6 $$ Y P r • , ;, Omaha,Nebraska 68183 r<U 9l 1 f s 4 .J (402)444-5150 oR 4�ro Telefax(402)444-6140 "Er)FEBRU4' u( James R.Thele City of Omaha Director Jean Stothert,Mayor +r "{ "5 �et May 24, 2016 Honorable President and Members of the City Council, The attached Resolution transmits the 1207 Cass Tax Increment Financing (TIF) Redevelopment Project Plan for a redevelopment site located at 1207 Cass Street. This redevelopment project site contains approximately 0.77 acres of land, owned by the City, and is directly west of the Omaha Hilton Hotel. The sale of this parcel to the applicant, Lanoha 1207 Cass, LLC is in process. The project plan proposes the construction of a new mixed-use five (5) story structure which will consist of the following: • Class A office space: 30,620 usable square feet of modern office space on floors 2 & 3, • Residential: 45 market-rate multi-family units and related amenities, including a fitness center and clubhouse on floors 4 & 5, • 49 "underbuilding"parking stalls, 18 exterior parking stalls, and • Plaza space adjacent to the mixed-use structure and a green roof element. A lobby space for both the office and multi-family uses will be located on the ground level. The Planning Board recommended the approval of this Redevelopment Project Plan at the May 4, 2016 public hearing. The Redevelopment Project Plan recommends the City's participation in the redevelopment of this project site through the allocation of TIF in an amount up to $1,831,224.00. TIF will be used to offset eligible expenses such acquisition, special foundation systems, site prep, geotechnical and environmental costs, architectural and engineering fees and public improvements as required. The total estimated project costs are $13,551,633.51, but are subject to change as final costs come in. Your favorable consideration of this Resolution will be appreciated. Respectfully submitted, Referred to City Council for Consideration: /7. 71-el— F.1.04 "asa- ames R. TheleDate Mayor's Office Date Planning Director y?fAk. Approved: tep n B. Curtiss ate Ro ert G. Stubbe, P.E. Date Finance Director . 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OMAHA Jean Stothert, Mayor City of Omaha James Thele, Director Planning Department Omaha/Douglas Civic Center 1819 Farnam Street, Ste. 1111 Omaha, Nebraska 68183 INTER-OFFICE COMMUNICATION City of Omaha,Nebraska Planning Department TO: Chairman and Members of the Planning Board FROM: James Thele,Planning Director DATE: April 27,2016 SUBJECT: 1207 CASS TIF REDEVELOPMENT PROJECT PLAN 1207 Cass Street Case#C3-16-128 Project Description This redevelopment project site contains approximately 0.77 acres of land within a single existing platted lot. The site is a city-owned parcel directly west of the Omaha Hilton Hotel at the commonly known address of 1207 Cass Street. The City of Omaha issued a Request For Proposal (RFP) dated June 17, 2015 to solicit proposals from qualified developers to purchase and redevelop the site at 1207 Cass Street into a residential,commercial, office or a mixed-used development. This TIF application is in response to that RFP. Lanoha Development Company was selected through the RFP process by the City of Omaha to redevelop this site. The applicant will likely acquire additional land through vacation of excess right of way along Cass Street. The project plan propo:,cs a modern,mixed-use five(5)story structure which will consist of Class A office space, lobby space, multi-family units and related amenities. The applicant may form a"condo"regime for the office space to accommodate third-party end user. The ground level is slated for future retail space along Cass Street. The layout and uses of the structure are as follows: • Office space:30,620 usable square feet of modem office space on floors 2 &3, • Residential: 45 market-rate multi-family units and related amenities, including a fitness center and clubhouse on floors 4&5, • 49"underbuilding" parking stalls,18 exterior parking stalls,and • Plaza space adjacent to the mixed-use structure and a green roof element. A lobby spaoefor boththe office and multi-family uses will be located on the ground level. The applicant anticipates completion by late fall of 2017. No Building Permit will be issued based on a site plan that does not comply with the provisions of the Zoning Ordinance. The project site is located within a Community Redevelopment Area,meets the requirements of Nebraska Community Development Law and qualifies for the submission of an application for the utilization of Tax Increment Financing to cover costs associated with project development as submitted for approval through the Tax Increment Financing process. The project is or will be in compliance with the Master Plan, appropriate Ordinances and development regulations of the City. DEPARTMENT RECOMMENDATION: Approval. ATTACHMENTS General Vicinity Map Project Plan BH Project Finance Summary-Sources&Uses Sources of Funds Equity(cash investment) $ 925,000.00 Equity-Office Transaction $7,445,253.00 Debt:Tax Increment Financing-First National Bank 5.5% $1,831,224.00 Debt:Financing-First National Bank, 275bps over 1 month LIBOR $3,350,156.51 Total $13,551,633.51 Uses of Funds Total General Contractor Hard Cost $11,630,294.00 Total Developer Direct Land&Soft Cost $1,858,418.36 Financing Fee/Costs $ 12,921.15 Construction Interest $ 50,000.00 Total Uses $13,551,633.51 Final Valuation Discussion According to the applicant, the estimated final valuation of the property is anticipated to be$10,750,000, based upon the Applicant's independent market research. The applicant anticipates the final incremental valuation to be $10,070,000, with an anticipated base valuation of $680,000. The redevelopment site is currently assessed at$0 as it is owned by the City of Omaha. However,upon the sale of the site to Lanoha Development Company, the Douglas County Assessor's Office will place a value on the site which will establish the base assessed value,anticipated to be$680,000. Land Use and Zoning Currently the site is a vacant parcel of approximately .77 acres of land, which is owned by the City of Omaha. A mixed-use structure is proposed for the site which would allow for residential and commercial uses. While the site is currently vacant,it was most recently occupied by a sales center for an unrealized condominium project. The site is currently zoned CBD-ACI-1(PL). No zoning changes are required. Utilities and Public Improvements Standard utilities(electrical,water,sewer)exist at the site;utility connections may be necessary. The project contemplates public improvements includes the following: 1. Sidewalk along Cass Street 2. Relocation of existing drive at Cass Street 3. Landscaping along Cass Street Transportation No transportation issues noted. Mandatory Criteria-from the application The Project is located within a blighted area as set forth in the Nebraska Statutes. (Community Development Law 18-2103;) The use of Tax Increment Financing will not result in a loss of pre-existing tax revenues to the City and other taxing jurisdictions.All of the revenue which will be utili7ed to pay the redevelopment note will come from additional valuation on the site resulting from the improvements to be constructed on the site. None of the existing tax base will be utili7ed to fund the redevelopment note. (Community Development Law 18-2113 and 18-2116;) BH I , �t .'#x.,. to ! '` � ems_,_ r,a F 5° aw.11:� � c 4; 'TT rn r �.t.,»+ 3 t C a { $ - - a CO E N 1p\t� St O l7 N 1Dth St _ 0 O T• s- ti• f o - o, .. . it'''\ , U ,ii G — � I 47LL�N I I , N x i r -, , ._ N CV 0 c Y a N12thSt '� N12thSt ... .,,. m,. - m t !; st QV N 2 vi N 13th St or 0 gg a 3 a a a c , _. _ L V �- -- Y o z • CO Si _, N N ti. 1 mP A— tS 4;b4 N o's• s- N <O o ti O U\ 6 CASE: C3-16-128 APPLICANT: Planning Department on behalf of the City of Omaha REQUEST: Approval of the 1207 CASS TIF REDEVELOPMENT PROJECT PLAN LOCATION: 1207 Cass Street SUBJECT AREA IS SHADED - MAY 2016 HI-ACI-1(PL) : • w • ■ T ■ Li I 4 i 1 I ' CBD-ACI-1(PL) CBD-ACI-1(PL) i 1 • r HI-ACI-1(PL) / i .M csi tei , ...„..,,Niiii.,..„_ _____------- •-- --4 __Cass_St _i 1 . 1joeiori................................ _______ I ___ ____I , , . .._ I ,...„ ____ ! . HI-ACI-1(PLJ,,`MM. 1 CBD-ACI-1(PL) ■ —?_--- ~``tea • w �. j �` 11 _ 48( _ • RS-ACI-1(PL) .. 'DS-ACI-1PL) :':: !� DS-• - -1(PL)-- -_ 4 I 1 II ■ i ` N : •. DS-A• -1(PL) _ . .. I\ ' , ' DS-ACI-1(PL) CBD-ACI-1(PL) ■ j omaha N Deo 0 500 PLANNING Feet INTER-OFFICE COMMUNICATION Date: April 15, 2016 To: TIF Committee: James Thele, Stephen Curtiss, AL Herink, Paul Kratz,Robert Stubbe,Todd Pfitzer, Cassie Paben, Gail Braun From: Bridget A. Hadley-City Planning Applicant: City of Omaha Planning Department Project Name: 1207 Cass TIF Redevelopment Project Plan Location: 1207 Cass Street Request: The TIF request is for up to $1,831,224, inclusive of some capitalized interest; at an interest rate of 5.5%. Using the current levy rate of 2.23039%and other assumptions of the TIF calculation spreadsheet supports the TIF request. See attached TIF calculation spreadsheet. TIF Fee Schedule: $500 application fee paid; the processing fee of$3,000 will be collected; $19,968 in administrative fees will be collected. Total fees will be $23,468. TIF Justification The project site is located within a Community Redevelopment Area, meets the requirements of Nebraska Community Development Law and qualifies for the submission of an application for the utilization of Tax Increment Financing to cover costs associated with project development as submitted for approval through the Tax Increment Financing process. The project is/or will be in compliance with the Master Plan, appropriate Ordinances and development regulations of the City. This redevelopment project plan helps fulfill goals of the 2030 Downtown Master Plan to fully utilize vacant parcels to their highest and best use. Redeveloping this site into a mixed-use structure will add pedestrian activity and residential density to the North Downtown area. This mixed-use development will positively impact the neighborhood by helping to spur additional future developments and improvements within the core of the north downtown redevelopment area,along with supporting existing development. This redevelopment will also positively impact other businesses in the nearby downtown area through the addition of more quality office space,multi-family residential housing,and potential retail,thereby resulting in a larger pool of qualified potential employees for businesses. Ultimately, this project plan will enhance the tax base for various taxing jurisdictions. TIF will be used to offset costs such as acquisition, special foundation systems, architectural and engineering fees, site prep, geotechnical and environmental costs, architectural and engineering fees and public improvements as required. The total estimated project costs are $13,551,633.51. TIF eligible costs are as follows: TIF Eligible Expenses: Land&Acquisition Expense $ 941,000 Foundation Systems $ 509,884 Architecture & Engineering(portion of) $ 245,790 Public Improvements $ 52,750 Site Prep $ 75,500 Geotechnical& Environmental $ 6,300 Subtotal $1,831,224 TIF Fees $ 19,968 Total TIF Eligible Expenses $1,851,192 The TIF is 13.51%of the total project costs. Recommendation: Approval Project Description This redevelopment project site contains approximately 0.77 acres of land within a single existing platted lot. The site is a city-owned parcel directly west of the Omaha Hilton Hotel at the commonly known address of 1207 Cass Street. The City of Omaha issued a Request For Proposal (RFP) dated June 17, 2015 to solicit proposals from qualified developers to purchase and redevelop the site at 1207 Cass Street into a residential, commercial, office or a mixed-used development. This TIF application is in response to that RFP. Lanoha Development Company was selected through the RFP process by the City of Omaha to redevelop this site. The applicant will likely acquire additional land through vacation of excess right of way along Cass Street. The project plan proposes a modern,mixed-use five(5)story structure which will consist of Class A office space, lobby space, multi-family units and related amenities. The applicant may form a"condo"regime for the office space to accommodate third-party end user. The ground level is slated for future retail space along Cass Street. The layout and uses of the structure are as follows: • Office space: 30,620 usable square feet of modem office space on floors 2 & 3, • Residential: 45 market-rate multi-family units and related amenities, including a fitness center and clubhouse on floors 4&5, • 49"underbuilding"parking stalls, 18 exterior parking stalls, • Plaza space adjacent to the mixed-use stnx=and a green roof element. A lobby spacefor boththeofce and multi-family uses will be located on the ground level. The applicant anticipates completion by late fall of 2017. Project Finance Summary- Sources& Uses Sources of Funds Equity(cash investment) $ 925,000.00 Equity—Office Transaction $7,445,253.00 Debt: Tax Increment Financing—First National Bank 5.5% $1,831,224.00 Debt: Financing -First National Bank, 275bps over 1 month LIBOR $3,350,156.51 Total $13,551,633.51 Uses of Funds Total General Contractor Hard Cost $11,630,294.00 Total Developer Direct Land& Soft Cost $ 1,858,418.36 Financing Fee/Costs $ 12,921.15 Construction Interest $ 50,000.00 Total Uses $13,551,633.51 Final Valuation Discussion According to the applicant, the estimated final valuation of the property is anticipated to be $10,750,000, based upon the Applicant's independent market research. The applicant anticipates the final incremental valuation to be $10,070,000, with an anticipated base valuation of$680,000. The redevelopment site is currently assessed at$0 as it is owned by the City of Omaha. However,upon the sale of the site to Lanoha Development Company, the Douglas County Assessor's Office will place a value on the site which will establish the base assessed value, anticipated to be $680,000. Land Use and Zoning Currently the site is a vacant parcel of approximately .77 acres of land, which is owned by the City of Omaha. A mixed-use structure is proposed for the site which would allow for residential and commercial uses. While the site is currently vacant, it was most recently occupied by a sales center for an unrealized condominium project. The site is currently zoned CBD-ACI-1(PL). No zoning changes are required. Utilities and Public Improvements Standard utilities(electrical, water, sewer)exist at the site; utility connections may be necessary. The project contemplates public improvements includes the following: 1. Sidewalk along Cass Street 2. Relocation of existing drive at Cass Street 3. Landscaping along Cass Street Transportation No transportation issues noted. Mandatory Criteria—from the application The Project is located within a blighted area as set forth in the Nebraska Statutes. (Community Development Law 18-2103,) The use of Tax Increment Financing will not result in a loss of pre-existing tax revenues to the City and other taxing jurisdictions. All of the revenue which will be utilized to pay the redevelopment note will come from additional valuation on the site resulting from the improvements to be constructed on the site. None of the existing tax base will be utilized to fund the redevelopment note. (Community Development Law 18-2113 and 18-2116,) The Project is not economically feasible without the use of Tax Increment Financing. Further, based upon the projection set forth before in the ROI Analysis section,this Project will not occur without the availability of TIF.(Community Development Law 18-2113 and 18-2116,) The Project furthers the objectives of the City's Comprehensive Plan. It is the Applicant's position that the proposal will further other important aspects of the Master Plan and its elements by allowing the Property to be redeveloped thereby: (1) improving the overall aesthetics of the Property and eliminating the blighted and substandard condition of the Property; (2) improving the streetscape; (3) allowing the Property to be more effectively utilized for office,multi-family housing and potentially retail uses as shown on the Site Plan;(4)increasing the tax base of the City; (5) providing diversity of housing for the citizens of Omaha and the provision of other goods and services and business opportunities which will serve nearby residents and citizens of Omaha; and(6) increasing the number of jobs in the area. (City of Omaha Charter 7.04;Master Plan;Community Development Law 18-2112,) Cost Benefit Analysis—from the application Tax Shifts resulting from the approval of the use of funds pursuant to section 18-2147 of the Community Development Law: The use of Tax Increment Financing will not result in tax shifts. The current level of taxes will continue to flow to the current taxing entities and only the increased value of revenues resulting from the improvements will be applied to the cost of the improvement. All of the revenue which will be utilized to pay the redevelopment note will come from additional valuation on the site resulting from the improvements to be constructed on the site. None of the existing tax base will be utilized to fund the redevelopment note. Public infrastructure and community public service needs impacts and local tax impacts arising from projects receiving incentives: No community public service needs will be generated as a result of this Project. The proposed TIF will be used to help offset public infrastructure improvement costs. Impacts on employers and employees of firms locating or expanding within the boundaries of the area of the redevelopment project: The development will positively impact the neighborhood within the redevelopment area by providing quality office, multi-family residential and potentially retail, which will help spur future developments and improvements within the core ofthe north downtown redevelopment area,along with supporting existing development. Impacts on employers and employees within the city or village and the immediate area that are located outside of the boundaries of the area of the redevelopment project: The development will positively impact other businesses in the immediate area outside of the boundaries of the redevelopment area because the addition of more quality office, multi-family residential housing and potentially retail within the redevelopment area will result in a larger pool of qualified potential employees for the businesses in the immediate area inside and outside of the boundaries of the redevelopment area. Any other impacts determined by the authority to be relevant to the consideration of costs and benefits arising from the redevelopment project: The elimination of the substandard and blight conditions in this area will bring needed economic opportunities to this area of the community. The revitalization will cause an increase in traffic in the area. The long-term benefits resulting from the elimination ofthe substandard and blight condition and the increase in the tax base resulting from the development are other valid justifications to provide assistance to the Project. ATTACHMENTS TIF Application TIF Calculation Spreadsheet 0000 CON 0 N 01 0 m N. Ps N.1 01 o IN 10 e-1 O N 10 o 10 e1 COa n M N cocoM el 00O in N CO 01 CO Ns N N m 0 n 01 ID 01 l0 n a a Ol co el m m N 01 01 N m ID 1D y. ul 0 CO CO N N.N n el CO 0 0 N CO in 10 1D 10 iii en el m in NI N rl in m el en a O el N CO in CO N NI 01 N 1D CO N 0 CO 1D CO N 0 CO in M el 00 1D en O CO 1n N 03 0) u1 Ill 1n it)inin in in in a CO CO CO CO CO M M M M M N N N N el el .-I HI CO v 0 c II 0 O N .--I CO 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Oi. - 'o a. NI O o a O 'O .a-I N Q in O U-1j O.y- a i U Y O) Vn 03 I O .a= U "t C a U COG ` 0 it O O 1O N el m a N. CO N 10 Cl M 00 .-I 01 e1 0 01 CO N CO CO el m VI 1 N N O .il : CD .••I .-N 0 in N in 01 N.IDN. 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Sii a , h .>_ .; ''' � ra a.; 5 1.,-,,; Section Pages Tab General Information 1 1 Narrative 2-4 2 Detailed Project Description 2-3 Land Use Plan 4 Zoning-Current and Proposed 4 Public Improvements 4 Historical Status 4 Sources & Uses/Total Project Costs 5 3 Development Budget, TIF Eligible Expenses, 6-9 4 Valuation and Project Timeline 3-Year Proforma 10 5 ROI Analysis- Economic Feasibility 11 6 Evaluation Criteria: Mandatory Criteria 12 7 Cost-Benefit Analysis 13-14 8 Employment Information 15 9 Residential and Office Information 16 10 Exhibits: 17-43 A. Site Plan 17 11 B. Building Perspectives 18-20 12 C. Building Elevations 21-25 13 D. Building Floor Plans 26-31 14 E. ALTA Survey 32 15 F. Documentation of Ownership or Site Control 33 16 G. Preliminary Commitment for Financing 34-38 17 H. Organizational Documentation 39-43 18 i i ''':''I lili pkAHq a `l " ��1f , , ,r,....,..,:,ir.,_ ---,..7 Development Cerny O 1 0 'I : .4 4'.. N141111V all y-...Q " ��x �,� Tax Increment"�3 7 � � *� Financmg App6cahon Project Legal Description: Project Address: Union Pacific Place Lot 1 Block 0 1207 Cass Street Lot 1 .773 ac -Excess Omaha, NE 68102 Redevelopment Proj Value* Property Owner/Applicant Name: Applicant Address: Lanoha 1207 Cass, LLC 191 1 1 West Center Road Omaha, NE 68130 Estimated Total Project Cost: TIF Request: $13,551,633.51 $1,831,224 New Construction: Yes Proposed Project Size: Rehabilitation: No Gross Buildings (ft2): 90,175 LIHTC Project: No Net Buildings (ft2): n/a Market Rate Project: Yes # of Acres: 0.77* Historic Tax Credit Project: No Current Use: Lot/Parcel Size (ft2)*: Vacant lot Lot 1: 33,672* Proposed Zoning: Current Annual Real Estate Taxes (2016 No change - CBD-ACI-1 (PL) Tax Year): $0.00 Current Assessed Tax Valuation (2016 Tax Year): Land: $0.00 Improvements: 0.00 Total $0.00 *Prior to dedication of R.O.W. 1 1 I Plf - --„. _ i , . . , -- t .......,.--- -41 . . ,... , ,,, \4111167 Lanoha /433k Development company L �Developme OT d ' 411 � aInncement� x cglpphca t. i# hon - -r- ,,,,: ,,,....., ...., Detailed Project Description: The subject site contains approximately 0.77 acres of land within a single existing platted lot and generally located south of Cass Street, west of 12'h Street, east of 13th Street and north of the adjacent freeway bridge. Additional land acquisition will likely occur through the vacation of excess right of way along Cass Street.The subject site is currently owned by the City of Omaha ("City") and it is contemplated that a land transaction will occur between the City and Applicant. While the site is currently vacant, it was recently occupied by a sales center for an unrealized condominium project. The future of this land is envisioned to become a modern mixed-use 5 story building consisting of Class A office space and related lobby space and multi-family units and related amenity and lobby spaces. Future retail on the ground floor adjacent to Cass Street will be accommodated for in the building design. Specifically, 30,620 usable square feet of modern office space on floors 2 & 3, 45 market-rate multi-family housing units and related amenities, including a fitness center and clubhouse on floors 4 & 5, 49 underbuildingf parking stalls, 18 exterior parking stalls, an adjacent plaza space and an green roof element.Additionally, a lobby for each the office and multi-family functions will be located on the ground floor. Overall, the proposed building is in excess of 90,000 gross square feet and represents a $13,500,000 investment in north downtown Omaha. Details of the Project Team are located on the subsequent page. 2 $ 1 0 fir+ 1,,,::: ' -7\77 Development c AAA, Lanoha n LO`I'"p{�► A rTax Increment`„ * Financing Appicahon Project Team Developer/Project Jason P. Lanoha Leader: iir�Lanaha 1911 1 West Center Road Development Company Omaha, NE 68130 P:402.289.5528 www.lanohadevelopment.com E:jlanoha:a lanohadevelopment.com Legal: w► Larry Jobeun®® 1J1iEhfiGv�4P 1 1440 West Center Road 11111 LE& Omaha, NE 68144 J P:402.334.0700 www.fdjlaw.com E: Iarryfdjlaw.com Architect: ALLEY POYNER Eric Westman MACCHIETTO 1516 Cuming Street OP] maha, NE 68102 P 402.341.1544 E: ewestmanalleypoyner.com www.alleypoyner.com General Robert Krause Contractor: =».nfr 1 101 1 Q Street,Suite 104 Omaha, NE 68137 Consm,crion Ma,ager ca.krai ccnvaoror P:402.504.4448 www.ksi construction.com E: rkrause alksi-construction.com Lender: Michael Kuester 11404 West Dodge Road Omaha, NE 68154 First National Bank 0 P. 402.602.5209 www.firstnational.com E: mkuesternfnni.com 3 r . 4,4 I-*J-11''. ,:,,,H'''''W''''' oha , — r Development C Y I., O x Increment t ! �Ti .,� , ► < PmanTacing Appicatan ++ � Land Use Plan The subject property consists of a single parcel currently owned by the City of Omaha, as legally described on the ALTA Survey, and attached as Exhibit "E". The Applicant intends to develop the Property as shown on the Site Plan, attached as Exhibit "A". The Property is underutilized, vacant and obsolete in its current condition and is in need of redevelopment. Zoning-Current and Proposed The site is currently zoned Central Business District with an Area of Civic Importance overlay.Specifically, CBD-ACI-1 (PL).The proposed zoning is to remain unchanged from its current classification. Public Improvements The project contemplates public improvements, including: 1. Sidewalk along Cass Street 2. Relocation of existing drive at Cass Street 3. Landscaping along Cass Street Historical Status None. 4 i i m I.(V LLB,. k +4 ` }' n $ `+.► Lan4ha rQeti r aewe,opme,t\/ ComanY C►Te!hi to i r„. . Tc Increment `"Fnancmg App6catHon Alihti ,,,�;lanoha Develapmenl C,r parry Project Analysis lr LOT E Contribution Category Budget Equity:Cash Investment 6.63% $ 925,000.00 Equity:Office Transaction 54 94% $ 7,445,253.00 Debt:Tax increment Financing 13.51% $ 1,831,224.00 Debt:Financing 24.72% $ 3,350,156.51 Total Sources $ 13,551,633.Si Category Description Contribution Budget Totalotel General Contractor Hard Cost cost $ 11,630,294.00 Developer Direct Land&Soft Cost 13.71% $ 1,858,418.36 Financing Fee/Costs 0.10% $ 12,921.15 Construction Interest 0.37% $ 50,000.00 Total Uses $ 13,551,633.51 Confidential Note:Upon completion,Applicant will be selling the office space to a third party end user. 5 i z` * , C 1 ..� a , , ' -- 7\\ L s ... . 4Lanoha tC nY LOT 'NOW ill Develop fltQrtt " " ` Tax Increment ,, .., e s„ t Financing AppIicaho ma o Lanoho Development Company Project Analysis LOT ONE Code Description Initial Budget V/E Budget t.105 Testing $ 25,000.00 $ $ 25,000.00 1.110 Surveying $ 18,000.00 $ $ 18,000.00 1.120 Permits/Fees $ 22,000.00 $ $ 22,000.00 1.130 Utilities $ 19,500.00 $ $ 19,500.00 1 135 Builders Risk Insurance $ 25,000.00 $ - $ 25,000.00 2.200 Site Work/Preparaton/Grading $ 75,000,00 $ $ 75,000.00 2.612 Concrete Paving $ 54,500.00 $ - $ 54,500.003 2.723 Pavement Markings/sealants $ 8,300,00 $ $ ,300.00 2.760 Landscaping $ 30,000.00 $ - $ 30,000.001 2.770 Irrigation $ 10, 00.00 $ - $ 10,000.00 2.950 General Conditions $ 411,600.000 $ - $ 411,600.00 3A01 Interior Concrete flatwork $ 290,450.00 $ $ 290,450.00 Pumping Allowance $ 4,000.00 $ $ 4,000.00 Pan Stairs $ 25,000.00 $ f 25,000.00 Sidewalks/ADA Ramps $ 16,000,00 $ $ 16,000.00 Plaza Area Concrete $ 23,700.00 $ $ 23,700.00 Equipment Pads $ 5,000.00 $ - $ 5,000.00 3.051 Foundation System $ 351,040.00 $ $ 351,040.00 Cast-In-Place Concrete Walls $ 409,850.00 $ $ 409,850.00 3.210 Rebar-Foundation System $ 116,500.00 $ $ 116,500.00 4.200 Unit Masonry-Brick Veneer $ 210,000.00 $ $ 210,000.00 5.001 Structural Steel $ 669,120.00 $ $ 669,120.00 5.010 Steel Erection $ 223,040.00 $ $ 223,040.00 5.020 Miscellaneous Steel $ 109,300.00 $ - $ 109,300.00 6.500 Rough Carpentry Materials &labor $ 503,385.00 $ $ 503,385.00 7.210 Building insulation $ 2,000.00 $ $ 2,000.00 7.240 Nlchiha Panels $ 319,159.002 $ - $ 319,159.00 7.241 Aluminum Composite Panels $ 688,465.00 $ $ 688,465.00 7.530 TPO Roofing $ 196,961.00 $ $ 196,961.00 Green Root $ 133,000,00 $ $ 133,000.00 Pavers at Commercial Terrace $ 10,400.00 $ $ 10,400.00 Payers at Residential Terrace $ 10,400.00 $ $ 10,400.00 7.920 Sealants&Caulking $ 25,000.00 $ $ 25,000AO 7.950 Moisture Barriers $ 127,762.00 $ $ 127,762.00 8.301 Shell Doors $ 73,500.00 $ $ 73,500.00 8.800 Glass/Glazing $ 866,714.00 $ $ 866,714.00 9.100 MS Frmg/DrywalifCeiings $ 192,912.00 $ $ 192,912.00 9.680 Floor Coverings(Shell) $ 42,000.00 $ - $ 42,000.00 9.990 Painting-Interior,Exterior,intumescent $ 12i,000.00 $ $ 121,000.00 10.100 Miscellaneous Specialties $ 58,400.00 $ $ 58,400.00 10.a00 Elevators $ 205,000.00 $ - $ 205,000.00 15.401 Plumbing-Site Utlities $ 110,D00.00 $ $ 110,000.00 15.411 Plumbing-Interior $ 178,000.00 $ - $ 178,000.00 15.5Z0 Fire Sprinklers $ 205,000.00 $ ; 205,000.00 15.611 HVAC $ 508,539. 8,5 . 16.11i Electrical $ 901,890.0000 $$ - $$ 90501,89039.0000 . Code Description Initial Budget VIE Budget Gyperete $ 78,148.00 $ $ 78,148.00 Finish Carpentry-Materials&Labor $ 110,400.00 $ $ 110,400.00 Exterior/Interior Wall insulation $ 23,930.00 $ $ 23,930.00 Interior Unit Framing-Material&Labor $ 23,000.00 $ $ 23,000.00 RC Channel/Drywall $ 220,011.00 $ - $ 220,011.00 Cabinetry(Hardware(inc.Common Amenities) $ 104,000.00 $ $ 104,000.00 Countertops(inc.Restroom Vanities) $ 101,600.00 $ $ IO1,600.00 Confidential 6 m,,,,,..-:::' '..,,,,,I.:-..,;;;; I-.-2'-'-''---'- - - - - '''''''''''''-''''''-'----''';;;;;.,:-vf:--,._:,,J...'f--:- --...-;, .. - .:.1'1',7,1::'i'.,-,-,-.1-' . I j i Lanaha .Act r a Fani Ama tin. Financing ppDewepmett G ny � � laxIcree3 ,r , ".;IT. 44, ,/ ,Lanoha Development Company ProLOTject Analysis ONE Code Description Initial Budget VIE Budget Unit Entry/Rated Doors/Hardware $ 62,100.00 $ $ 62,100.00 16.000 Interior Unit DoorsJTnm/Hardware $ 42 000.00 $ $ 42,000.00 Interior Glass Door/Sidelites $ 10,860.00 $ $ 10,860.00 Mirrors $ 10,000.00 $ $ 10,000.00 Corridor Carpet $ 13,332,00 $ $ 13,332.OD Common Amenity Finishes&FF&E $ 82,560.00 $ $ 82,560.00 Unit Flooring $ 115,000.00 $ $ 115,000.00 Painting/Staining $ 92 000.00 $ $ 92,000.OD Appliances $ 161,000.00 $ $ 161,000.00 Fireplaces $ 27,b00,00 $ $ 27,fi00.00 Mini-Blinds $ 18,000.00 $ - $ 18,000.00 private Storage Allowance $ 15,000.00 $ $ 15,000.00 Surveillance System $ L0,000.00 $ $ 10,000.00 Plumbing $ 552,000.00 $ - $ 552,000.00 HVAC $ 251,540.00 $ - $ 251,540.f)0 Electrical $ 358,110.00 $ - $ 358,110.00 DPPD Fees $ 4,140.00 $ $ 4,140.OD 18.100 Misc./Contingency Items ¢ 100,000,00 $ - $ 100,000.00 General Contractor Hard Cast Subtotal $ T1,2T7,718.00 $ $ 11,217,718.00 General Contractor Prof j 3. 25% $ $ 364,576.00 i eneral Contractor Hard Cost Tote! $ $ 11,582,294.00 Category Description Initial Budget V/E Budget Land Purchase(Inc.ROW,Closing Fees) $ 912,000.00 $ $ 912,006.00 Legal Purchase and Entitlements $ 29,000.00 $ - $ 29,000.00 financing Legai(Borrower)Construction&TIF Loans $ 5,5�.00 $ $ 5,500.00 Bank 3rd Party Fees lint Bank Legal) $ 25,250.00 $ $ 25,250.00 A&f Architecture(Office Shell,MF Complete),SMEP,Site Civil $ 604,000,00 $ - 604,000.00Add.Civil Geotechnial&Environmental Studies $ 6,300.00 $ - 6,300.00ALTASurvy $ 1,500.00 $ - i,500.DDPrelimina &Final Plat $ 6,000.00 $ - is: 6,000.00ROW Vacation&Dedication3 $ 1,000.00 $ 1,OOD.ODfees/Other Pre Comlruction,Reimbursables and Fees $ 225,000.00 $ 225,000.00 Tax Increment Financing Fees $ 23,468.36 $ $ 23,468.36 Grading Permit Fee $ 500.00 $ $ 500.D0 Subdivison,Plat&Zoning Fee $ 500.00 $ $ 500.00 Watershed Management Fee $ 3,400.00 $ $ 3,400.00 Real Estate Taxes $ 15,000.00 $ $ i5,OD0.00 Developer Direct Land Soft Cost Total $ 1,858,418.36 $ $ 1,858,418.36 Category Description Budget WE Budget Total General Contractor Hard Cost $ Initial B,294.00 $ - $ 11,582,294.00 Total Developer Direct Land&Soft Cost $ 1,858,418.36 $ $ 1,658,418.36 S8I!ang�y $ 48.00D.OQ $ $ 48,000.00 Total Construct on Cast $ 13,488,712.36 $ $ 13,488,712.36 n n $ 50,000.00 $ 50,000.00 Subtotal Project Cost $ 13,538,712.36 $ - $ 13,538,712.36 Finanano Fee/Costs $ 12,921.15 $ $ 12,921.15 Total Project Cost $13,551,633.51 $ - $ 13,551,633.51 ConfIdential 7 x r rR ( *°m �yl�y {�,�y i�evefopment C fly LOT � AA44 , To?( lncrem4:41:. eot i f 4 Financing AppGcafion TIF Eligible Expenses r \, Project Analysis �j Lanoha Oevelopmenl Company itelk OT aN L., E Code Oescripdon Initial Budget_ VIE Budget land&Acquisition Expense,offset by cement valuation ; 941,000.00 ; - $ 941,000.00 Foundation Systems ; 509,884.00 $ - $ 509,884.00 Pudic Improvements:Sidewalks in ROW $ 12,500.00 $ - $ 12,500.00 Pudic Improvements:ADA Ramps(Inserts In ROW $ 3,500.00 $ - S 3,500.00 Pudic Improvements:Approach Pavement in ROW ROW 3,500.00 $ - 5 3,500.00 Public Improvements:Landscaping&irrigation in ROW ; 9,80D.00 # - $ 9,800.00 Punt Improvements:Utility extensions in ROW $ 23,450.00 ; S 23,450.00 Ste Preparation $ 75,500 00 $ S 75,500.00 Architecture and Engineer ng $ 611,000.00 $ - S 611,000.00 Pre-Construction Services(A&E,GC,Legal Consuitants) $ 46,244.00 $ - $ 46,244.00 Geatechniral and Environmental $ 6,300.00 $ - 5 6,300.00 Tax Inurement Financing Fees $ 23,468.36 $ S 23,468.36 Appraisals $ 7,900.00 # - $ 7,800.00 rip Eligible Expenses $ 2,273,946.36 # - $ 2,273,946.36 Based on soils investigation by Thiele Geotech, a nominal amount of soil conditioning for general construction is required, including localized removal of debris and poor soils replaced with structural fill. The foundation is designed to be auger cast piling with pile caps and a grade beam perimeter. Valuation The Final Valuation of the Property is anticipated to be $10,750,000, based upon the Applicant's independent market research. The Applicant anticipates the Final Incremental Valuation to be $10,070.000, with an Anticipated Base Valuation of $680,000.Currently,the Property has an assessed value of$0 as it is owned by the City of Omaha. The Applicant's research consisted of reviewing comparable mixed use properties, including the Applicant's owned and managed properties, through the Douglas County Assessor's website (www.dcassessor.org). 8 k Y 1 aevefiopm+snt c � v Lt�►Tzt� 7�0 41'I 7 � 1 ar �'II Tax increment } i Hnancirig App cation The Project's pre-construction critical path is the approval of the use of Tax Increment Financing. During this period, the Applicant will complete all other necessary land entitlements, finalize the land purchase with the City of Omaha, finalize financing, develop and finalize construction documents, bidding efforts and submit for a building permit. Without any setbacks, the Applicant targets a break ground date of October 2016. Setbacks with any of the aforementioned steps would likely delay the commencement of construction until the following spring. Finally, our target for completion of all construction activities is December 2017. A detailed timeline is included below. Project Analysis 4 Lanoha Development Company Index a month/Year ' start Entitlements 0 Sep-16 LSE Entitlements Complete(toning&TIP) 5 Sep 1G ^T•f` Land aos�g 5 Sep•16 Initial Equity instilment 5 Sep-16 Initial Construction Loan Disbursement 7 Oct-16 Building Construction starts 6 Oct-16 Office Core&$heN Turnover 15 lul-17 Office Tenant Improvement Turnover 19 Nov-17 Third Moor Unit Deliver 19 Nav-17 Fourth Floor Unit Delivery 20 Dec-17 Duration of C stnxtion 1 Year,2 Months Oct-16 to Dec-17 Construction Loan Conversion 28 Aug-18 9 ,." ' Lanoha r' _. ,. Development C �ny OT I r ' - A+/ ,' - ., Tax Increment i 1 { * r flnanctng Appicatwn - 3 -`-fit „a7 $ ,"z ssc�:. The Total Project Cost is $13,551,634, as set forth in the previous Sources & Uses / Total Project Costs section. As set forth in the subsequent ROI Analysis- Economic Feasibility section, the Applicant estimates that, without the benefit of TIF, the Applicant's return on the invested capital would be-4.90%, resulting in the Project not being economically feasible to proceed without TIF being used as an economic incentive. The supporting 3-Year Proforma is below. Lonoha Development Company Project Analysis .:°,t t.` #a&F best?: F.d z", f .•se."{ w 5" .. Total Land&Busking Cost $ 6,106,380.51 LOT ONE Equity $ 925,000.00 Debt $ 3,350,156.51 Monthly Debt Service $ 19,584.68 Annual Debt Service $ 235,016.18 Income Year 0 Year 1 Year 2 Year 3 Net Operating Inane $ 316,146.43 $ 319,307.90 $ 322,500.98 Interest $ (165,939.07) $ (162,404.95) $ (158,690.03) Princin..( $ (69.077.11) $ (72 61071 J?1 $ (76.376.15) Annual Debt Service $ (235.016.18) $ (235,016.18) $ (2385,016.18) Cash Flow After Debt Service $ 81,130.26 $ 84,291.72 $ 87,484.10 Net Sales Proceeds New Cash Flow After Debt Service $ (925,000.00) $ 81,130.26 $ 84,291.72 $ 87,484.80 Confidential Additionally, below is a sample of the projected annual incremental tax revenues available for the TIF loan. Year 3 is highlighted. 4411{16-14_- J'Lanoha Development Company Project Analysis "— "/ LOT ONE Treasurer's Revenues TIF Taxable Collection Fee Available for TIF Year Valuation Tax Levy Tax Revenues (1%) Loan 0 0.5 $ - 2.23039 $ - $ - $ - 1 $ - 2.23039 $ - $ - $ - 1.5 $ - 2.23039 $ - $ - $ - 2 $ - 2.23039 $ - $ - $ - 2.5 $ 10,070,000.00 2.23039 $ 112,300.00 $ 1,123.00 $ 111,177.00 ''3 $ 10,070,000.00 2.23039 $ 112,300.00 $ 1,123.00 $ 111,177.00 '3.5 $ 10,070,000.00 2.23039 $ 112,300.00 $ 1,123.00 $ 111,177.00 `. 4 $ 10 070,000 00 2 23039 -$ 112,300.00 $ 1,123.00 $ rv111 177.00 l O 4.5 $ 10,070,000.00 2.23039 $ 112,300.00 $ 1,123.00 $ 111,177.00 i r- +S . , ! 1 t xt„; w .tea s �, + 4461,ZNidh.,,- La noha , /4192,,,\ , ,,,,,,„,--------7 Development Conr,Ony LOT 0 t 1 o yam:` i .Tax increment u x f Financing Appicahon i mo t' 'I t , "° c" - ",' ' The Applicant's return on capital without TIF financing would be - 4.90%,causing the Project to not be economically feasible. With the proposed Tax Increment Financing, the Applicant's return on capital would be 8.77%, realizing an acceptable return for the Applicant. The Applicant hereby requests Tax Increment Financing including two (2) years of capitalized interest in the principal amount of$1,831 below. 224.00. The TIF proceeds will enhance the returns to an acceptable level as shown Lanoha Development Company Project Analysis 4 aL "E#ry YE 3 .f ,_.; . . is ;..vµ_ LOT Total Land&Building Cost $ 077,840.98 Equity $ 925,000.00 Debt $ 5,152,840.98 Monthly Debt Service $ 30,123.00 Annual Debt Service $ 361,475.94 Income Year 0 Year 1 Year 2 Year 3 Net Operating Income $ 316,146.43 $ 319,307.90 $ 322,500.98 Interest $ (255,229.16) $ (249,793.37) $ (244,079.48} princioat $ (106.246.78) $ 1111.682.57) $ f117,396.46) Annual Debt Service $ (361,475.94) $ (361,475.94) $ t361.475.94) Cash Flow After Debt Service $ (45,329.51) $ (42,168.05) $ (38,974.47) Net Sales Proceeds New Cash Flow After Debt Service $ (925,000.00) $ (45,329.51) $ (42,168.05) $ (38,974.97) Leveraged Cash on Cash Return -4.90% 4.56% 4.21% _ 1,, 3 E ,., /. ,, ; V# s\r4M Project Analysis 0' " b Total Land&Building Cost $ 6,106,380.51 Equity $ 925,000.00 Debt $^ 3,350,156.51 Monthly Debt Service $ 19,584.68 Annual Debt Service $ 235,016.18 Income Year 0 Year 1 Year 2 Year 3 Net Operating Income $ 316,146.43 $ 319,307.90 $ 322,500.98 Interest $ (165,934.07) $ (162,404.95) $ (158,b90.03} Princioa( $ (69.077,111 $ (72.611.� $ jj6,326.15) Annual Debt Service $ (235,01618) $ (235,016.18) $ (235,016.18) Cash Flow After Debt Service $ 81,130.26 $ 84,291.72 $ 87,484.8Q Net Sales Proceeds New Cash Flow After Debt Service $ (925,000.00) $ 81,130.26 $ 84,291.72 $ 87,484.80 Leveraged Cash on Cash Return 8.77% 9.11% 9.46% Confidential 1 1 a t 1 i ' r ,x,r @u..ar I II -pus `, .- ?:-',., ^`c •. -c-\\--, 7 Development C ny LO l 9 °'� Tax Increment ) Financing Applen Community Development Law 18-2103: The Project is located within a blighted area as set forth in the Nebraska Statutes. Community Development Law 18-2113 and 18-2116: The use of Tax Increment Financing will not result in a loss of pre-existing tax revenues to the City and other taxing jurisdictions. All of the revenue which will be utilized to pay the redevelopment note will come from additional valuation on the site resulting from the improvements to be constructed on the site. None of the existing tax base will be utilized to fund the redevelopment note. Community Development Law 18-2113 and 18-2116: The Project is not economically feasible without the use of Tax Increment Financing. Further, based upon the projection set forth before in the ROI Analysis section, this Project will not occur without the availability of TIF. City of Omaha Charter 7.04;Master Plan: Community Development Law 18-2112: The Project furthers the objectives ofl the Crity's Comprehensive Plan. It is the Applicant's position that the proposal will further other important aspects of the Master Plan and its elements by allowing the Property to be redeveloped thereby: (1) improving the overall aesthetics of the Property and eliminating the blighted and substandard condition of the Property; (2) improving the streetscape; (3) allowing the Property to be more effectively utilized for office, multi-family housing and potentially retail uses as shown on the Site Plan; (4) increasing the tax base of the City; (5) providing diversity of housing for the citizens of Omaha and the provision of other goods and services and business opportunities which will serve nearby residents and citizens of Omaha; and (6) increasing the number of jobs in the area. 12 ,I. I F ..' 111 '''''''l '14.--:: .1'7' 11114 i s ;! <: Ai r Lanoha Development C ny LOT'© 14t , , t.�!'a ;. t .a,; Tau I crer. ,, 4 Financing Appfica6on a M E ' Each of the considerations are addressed below: Tax Shifts resulting from the approval of the use of funds pursuant to section 18-2147 of the Community Development Law: The use of Tax Increment Financing will not result in tax shifts. The current level of taxes will continue to flow to the current taxing entities and only the increased value of revenues resulting from the improvements will be applied to the cost of the improvement. All of the revenue which will be utilized to pay the redevelopment note will come from additional valuation on the site resulting from the improvements to be constructed on the site. None of the existing tax base will be utilized to fund the redevelopment note. Public infrastructure and community public service needs impacts and local fax impacts arising from projects receiving incentives: No community public service needs will be generated as a result of this Project. The proposed TIF will be used to help offset public infrastructure improvement costs. Impacts on employers and employees of firms locating or expanding within the boundaries of the area of the redevelopment project: The development will positively impact the neighborhood within the redevelopment area by providing quality office, multi-family residential and potentially retail, which will help spur future developments and improvements within the core of the north downtown redevelopment area, along with supporting existing development. 13 A, 8 ____:.: ,,,, , ,,,-, ., .„ „. , _ .. ,,--;,,--.-Aki, ,...4% i kl. Lanoha �' ,` ;gnu ; \-17 Development c ity T V , i . , , 2ta Tax Incrementr .. ' Financin A cation {} "9 PPti Impacts on employers and employees within the city or village and the immediate area that are located outside of the boundaries of the area of the redevelopment project: The development will positively impact other businesses in the immediate area outside of the boundaries of the redevelopment area because the addition of more quality office, multi-family residential housing and potentially retail within the redevelopment area will result in a larger pool of qualified potential employees for the businesses in the immediate area inside and outside of the boundaries of the redevelopment area. Any other impacts determined by the authority to be relevant to the consideration of costs and benefits arising from the redevelopment project: The elimination of the substandard and blight conditions in. this area will bring needed economic opportunities to this area of the community. The revitalization will cause an increase in traffic in the area. The long-term benefits resulting from the elimination of the substandard and blight condition and the increase in the tax base resulting from the development are other valid justifications to provide assistance to the Project. 14 � q a'�n ,z " �s=-,ars. `mac ,rF .".. II Development C ny LOT O A, `1 s ‘ � ;> Tax Increment Financing Appicalion Job Creation/Retention Figures Job Creation/Retention Types Permanent Jobs 124 Management 18 Part-Time Jobs 4 Technical 54 Totals 128 Sales/Marketing 22 Clerical/Admin 7 Total Jobs Created 128 Production 15 TotalTotals Jobs Retained 0 Clerk/Service 9 128 General Labor 3 Totals 128 Anticipated Annual Payroll $9,998,000 Estimated Number of Construction Jobs Created 85 Anticipated Payroll for Construction Jobs Market Wage 15 k f , r r i t.,' ys;- 446\si\l%l Development C nY L0T7;9t .,„,1.. _ r ., tax Increment ,,, Financing Appicafion Residential: The multi-family product will be constructed on floors 4 & 5 consisting of 45 units and related amenities, with a lobby on the ground floor. 39 underbuilding stalls and 13 surface stalls are assigned to this component. All units are market-rate. The Residential Unit Mix is as follows: (/`Lanoha Dovolopmont Company Project AnalySiS JOAL LOT ONE Unit Inco,ne. Unit Type Unit Description Quantity %of Total Unit Size Total Ft' Monthly Per Unit Monthly Total Annual Total Monthly$/SF tFt21 1 Studio North 12 27% 560 6,720 S 812.00 $ 9,744.00 $ 116,928.00 $ 1.45 2 Studio-East i0 22% 560 5,600 5 812.00 $ 8,120.00 $ 97,440.00 $ 1.45 3 Studio-South 12 27% 560 5,72D S 784.00 $ 9,408.00 $ 112,896.00 ; 1.40 4 Studio-West 2 4% 560 1,120 $ 784.00 $ 1,568.00 $ 18,816.00 $ 1.40 5 1BR•SW Corner 2 4% 590 1,18D 5 826.00 $ 1,652.00 $ 19,824.00 $ 1.40 6 18R)DEN-Clubtaus 1 2% 740 740 5 1,110.00 $ 1,110.00 $ i3,320.00 $ 1.50 7 1BR/DEN-NE Corner 2 4% 870 1,740 $ 1,261.50 $ 2.523.00 $ 30,276.00 $ 1.45 8 2BR-NW Corner 2 4% 975 1,950 S 1,365.00 $ 2,730.000 $ 32,760.00 $ 1.40 9 26R•Inter or 2 4% 1,000 2,000 S 1,350.00 $ 2,700.00 $ 32,400.00 $ 1.35 Gross Unit Income 45 100% 27,770 $ 39,$SS.00 $ 474,660.N $ 1.42 Other Income: Type Quantity monthly Rate Monthly Total Annual TotalUndertwiWing Pinking 39 ; 75.00 f 2,925.00 f 35,100.00 Surface Stalls 13 $ 40.00 $ 520.00 f 6,240.00 Other Income 45 S 8.00 $ 0.00 ; 4,320.00 Gross Other Income $ 3,805.00 $ 45,660.00 Confldentlal Office: The office product will be constructed on floors 2 & 3, with a lobby on the ground floor, totaling 30,620 usable square feet. 10 underbuilding stalls and 5 surface stalls are assigned to this component. Upon completion, the office space will be sold to a third party end user. Additionally, the Building Floor Plans are located on the attached Exhibit "D". 16 tk r 1 1 /-,..-4.,,, LA Lanoha .4' * Development Cony LOOT Tout Increment ;r , ; Financing Ap'p ahon N. O ,Y O U 1m g a z 0 €cI g �� g 1 d col fi p � i!it II 91�y ilj'z '_ e pg pp g �g }O x a gg 1Fi9 Il4j ill;!! iilta I k a ki 133IA1S HIZI. t-1 4 : . i 1 3 S o lil W ; II IF, • . - CO ' 1 1 - i , /7 i1w 1 V C Q {a{.� QL9 �.« F U iA . T 1332l1S Hi£ L o E a U _C£ _ oa c 0 a33 JO C / a --,,,� ,,,,,, 4. Y .,,"ta''' See subsequent pages. I f' 1 . Et I Y A ,� r o \ ,_.,,::71,-;:-- ,f' '.' ' .:-'7„k:'.'':'II':"04:11k.t.:;:`P. ;i41-i. s„�►p�m�r~, LOT C? . iax Increment ; } Financnig Appiicatron „,. i tit ._' C a O u iaYf- ` l`• C IC F C _ f 1 'I 1 4 V ,. I .. ' f O ..: __ i gs. 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A - 1 ,, I n •- ' // 0 E 11 , . //,,,,/;,. 1 RtS _ o — 1 .Q t 1 /7 I :I: -775-• " iZtil 0 x r , — 2(j)- , /,' .P,,,§ r // /, rim, / ....._ ,i', §w"-,-11' ,..,./•\-. 2 ` --1-,52‘rt) 17 '..4‘ 4r5 r ' ------ :'1 0 , Lel ,,,.... 4.--IL o a E L.) -C E 0 8- c T., ... 41 , .,. ... i -11 . 0.:f...1! ;,, '''*".!:::'';'::: ' i l'7.e.Z'' '''' Mill! _ _ .,0,4iii .. ,.,f,..t- - --...- -1,--1,, / 1.. I Lanoha Development Company ("Lanoha") has been awarded the right to purchase the subject site from the City. A legally binding Purchase Agreement is to be executed prior to final Tax Increment Financing approvals.The Applicant is a single purpose entity wholly owned and controlled by the principals of Lanoha. 33 i a . ''• k :, :, . ncreme ntLOTa 11 lax a t on� � Lanoha f,`' 4y n FinanmgAppcDevelopment C See subsequent pages. 34 e i i \ ' / Development c LOT'© , a � Tax Increment ':; ;ter ''' i ` Financing Appbcabon 0 First National Bank No March 30,2016 Mr.Jason Lanoha Lanoha Development Company 19111 West Center Road Omaha,NE 68130 RE: Construction/Mini-Perm Financing Lot 1 Dear Mr.Lanoha First National Bank of Omaha("Lender")is pleased to provide Lanoha Development Company with the following proposal for construction/mini-perm financing for the development of a mixed use project containing approximately 45 multifamily units and 30,500 sq.ft.of office space to be constructed near 12t°and Cass Streets in Omaha,NE.The following proposal is not a commitment to provide financing, but merely an expression of the financing terms which we are favorably considering. A. TERMS—CONSTRUCTION LOAN WITH EXTENSION OPTIONS 1. Borrower: Single asset entity,acceptable to Lender,to be formed and controlled by Lanoha Development Company and its principals("Borrower"). 2. Subject Property: A to-be-constructed 5 story mixed-use project consisting of 45 multifamily units and roughly 30,500 sq.ft. of office space,including all fixtures and personal property required to operate the facilities("Improvements")to be situated on real property located at 12th and Cass Streets in Omaha,NE(the"Real Estate").The Improvements and the Real Estate are collectively referred to as the"Project". 3. Loan Amount: Construction Loan Amount is estimated to be$10,795,410 but not to exceed 80%of Project cost or 75%of an acceptable appraisal. 4. Loan Term: 30-month construction period followed by a 36-month mini-perm option.As a requirement to exercise the mini-perm option,Borrower must deliver written notice to Lender no later than thirty(30)days prior to construction period maturity and Project must achieve a DSCR of 1.05x calculated on an amortizing basis. 35 Lanoha % Development C ny k Tax lncremen LOT:,V f ) # „��` financing Apphcaion 5. Loan Fee: Borrower will pay Lender at loan closing a fee of$26,989(0.25%of loan amount). 6. Interest Rate: During the 30-month construction period,the interest rate will float at a spread of two hundred sixty-five(275)basis points over 1-month LIBOR,to be adjusted monthly. Upon the exercise of the 36-month mini-perm option,the rate will then be fixed at 300 basis points over the 5-year Treasury and will remain fixed for the remainder of the loan term. 7. Loan Repayment: During construction period,monthly interest only payments will be required on the first day of each month based on the amount of the loan advanced. Upon exercise of the mini-perm option,monthly principal and interest payments will be required based on the loan balance and a 25-year amortization,with the principal balance and all accrued and unpaid interest due at maturity. 8. Collateral: First Mortgage,Security Agreement,and Assignment of Rents and Leases on the Project. 9. Covenants: After conversion to the mini-perm option,Loan will be subject to a Debt Service Coverage Ratio covenant of 1.15 tested on an annual basis. This offer letter is not intended to represent a commitment to lend,nor does it obligate FNBO to provide a loan as discussed herein. It is merely intended to summarize for discussion purposes the credit accommodations that FNBO would be willing to provide. If the proposed terms are acceptable, we will proceed with our formal credit approval process. Sincerely, I 1r Michael 1.Kuester Senior Vice President 36 to Hq Vireo ii Lanoha '�\ Development Co my i t ¢ #F,,•. Tau Increment Financing Appicafion 0 First National Bank March 30,2016 Mr.Jason Lanoha Lanoha Development Company 19111 West Center Road Omaha,NE 68130 Re: Tax Increment Financing Lot 1 Project Dear Mr.Lanoha: First National Bank of Omaha(FNBO)would favorably consider providing financing to construct a mixed use project and all associated public improvements being proposed at II."'&Cass Streets. The financing package would include construction financing and Tax Increment Financing(TIF). Below is a brief summary of our proposed TIF loan structure. This is not a commitment to provide financing,but merely an expression of the financing terms we are considering. 1. Borrower A single asset entity to be determined. The entity must be controlled by Lanoha Development and its principals("Borrower"). 2. Use of Funds: The TIF Loan funds will be used to finance TIF eligible infrastructure expenses associated with the mixed use project to be located at 1207 Cass Street in Omaha,NE ("Project"). 3. Loan Amount: The TIF loan is estimated to be$1,831,224. Loan amount will not exceed the loan amount stated in the Redevelopment Agreement between Lanoha Development(or designated entity)and the City of Omaha. 4. Loan Term: Fifteen(15)years. Loan term will not exceed the loan term stated in the Redevelopment Agreement between Lanoha Development(or designated entity)and the City of Omaha. 5. Interest Rate: The interest rate will be fixed at 5,50%for the entire Loan Term. 6. Loan Repayment: Interest will accrue for the first two(2)years of the loan Term. Semi-annual principal&interest payments will commence in the third loan year,with payments due in June and November of each year in an amount necessary to amortize the loan balance over the remaining term of the loan. 37 I Lanoha Development C n y LiT Tax Increment financing Appticahon 7. Collateral: First lien upon the tax increment financing proceeds,in the form of a Security and Pledge Agreement executed by the City of Omaha,assigning annual tax increment receipts as security for the Redevelopment Note. The above terms and conditions are not a commitment to lend,but rather a general outline of how First National Bank of Omaha would proceed in underwriting the proposed transaction. The outlined terms and conditions are subject to Credit Approval and final documentation satisfactory to Borrower and Lender and complete legal review and approval of all pertinent matters by Lender and Lender's counsel. A CREDIT AGREEMENT MUST BE IN WRITING TO BE ENFORCEABLE UNDER NEBRASKA LAW. TO PROTECT YOU AND US FROM ANY MISUNDERSTANDINGS OR DISAPPOINTMENTS,ANY CONTRACT,PROMISE,UNDERTAKING, OR OFFER TO FOREBEAR REPAYMENT OF MONEY OR TO MAKE ANY OTHER FINANCIAL ACCOMMODATION IN CONNECTION WITH THIS LOAN OF MONEY OR GRANT OR EXTENSION OF CREDIT,OR ANY AMENDMENT OF, CANCELLATION OF,WAIVER OF,OR SUBSTITUTION FOR ANY OR ALL OF THE TERMS OR PROVISIONS OF ANY INSTRUMENT OR DOCUMENT EXECUTED IN CONNECTION WITH THIS LOAN OF MONEY OR GRANT OR EXTENSION OF CREDIT,MUST BE IN WRITING TO BE EFFECTIVE. FIRST NATIONAL BANK OF OMAHA,a national banking association By: Michael J.Kuester Sr.Vice President 38 4 4 LanohC� /wi°�S/I�XW�AP�^/�+i4, "i g# �4. � ' Development Comarsy LOT 0 i! + : . 'tom. �-.��"4 f r * ' / a' t}, ' Tait Increment * ti., F�nancmgAppi'cafion See subsequent pages. Note: Lanoha 1207 Cass, LLC is a single purpose, privately held entity. Financial statements may be made available upon request by the City of Omaha, however said statements are not to be part of the public record. 39 II iml,,l,, ,,.+W'',0y: ''''''''',,..,,,,,,,,01" '-` i - -. 1 ,,,,,,,e, ,,,„,,,,,, ,,,,, ,,,,,vw i E \ / Development Comp:my LOT 0 '1 ;4.. '' 1 . , , '.;iiiiis' .ir. ., , „ 0tr"� �, r; Tax�Increment t Financing Appkc`ation h # x zw 1 1 STATE OF NEBRASKA United States of America, }sa. Secretary of State State of Nebraska } State Capitol Lincoln,Nebraska I, John A. Gale, Secretary of State of the State of Nebraska, do hereby certify that LANOHA 1207 CABS,LLC was duly formed under the laws of Nebraska on December 13,2013; all fees,taxes,and penalties due under the Nebraska Uniform Limited Liability Company Act or other law to the Secretary of State have been paid; the Company's most recent biennial report required by section 21-125 has been filed by the Secretary of State; the Secretary of State has not administratively dissolved the company; the Company has not delivered to the Secretary of State for filing a Statement of Dissolution; a Statement of Termination has not been filed by the Secretary of State, This certificate is not to be construed as an endorsement, recommendation,or notice of approval of the entity's finanaaf condifion or business activities and practices. In Testimony Whereof, I have hereunto set my hand and �,;..,-,,,,,,,,A,-. affixed the Great Seal of the i tl i ' , I r �,�.� State of Nebraska on this date of ; '^" ,. % 'ir March 31,2016 r a -"' 1 !/A 1t.hc 7e...,'e-'--t 7M-...Nc.--,t i*-:_., tm < 1 it r.� " J �, ; r r` 4• tfff, ,.- ifaa.y- . �1 �? . ' -e&______ Secretary of State Verification ID 9cdce20 has been assigned to this document Go to nagovtgo/validate to validate authenticity for up to 12 months. 40 } '�` a ri.", r 7,4° AL jet. 1 rinOha ZAmmi,:\\,,,-_-„, I----- Development n ' ' , flax Increment =, t" F[nonctng Appficotion �, Er ,.'. ?s r a ,. i .€, �C.""� r .. NE Sec of State John A Gate CO -CR 9000093909RP-Page 1 of TO4 tANONA DODGE,LLC t aed12J/3120125 131118.00 AM CERTIFICATE OF ORGANIZATION OF LANOHA 125 DODGE,LLC The undersigned,desiring to farm a limited liability company for the purposes hereinafter set forth,under and in conformity with the laws of the State of Nebraska does hereby make this written certificate in duplicate and hereby verify: ARTICLE I. The name of the company shall be:LANOHA 125 DODGE,LLC ARTICLE II. J'urpose The Company is organized to engage in and to do any lawful act concerning any and all lawful business,other than banking or insurance,for which a limited liability company may be organized under the laws of the State of Nebraska. ARTICLE III. Initial Aacnt-Initial ►esignated Office The name and address of the Company's initial agent for service of process in Nebraska is: Jason P.Lanoha 19111 West Center Road Omaha,Nebraska 68130 The name and address of the initial designated office in Nebraska is: LANOHA 125 DODGE,LLC Attn:Jason P.Lanoha 19111 West Center Road Omaha,Nebraska 68130 ARTICLE IV. The name of the Organizer of the Company is Mark B.Johnson,whose mailing address is c/a Fulleakamp,Doyle do lobetln 11440 West Center Road,Omaha,Nebraska 68144. Effective upon the filing of this Certificate of Organization in accordance with the Nebraska Uniform Limited Liability Company Act,the Organizer shall have no right,tide or interest in and to any membership interest or property of the Company nor any right in the management thereof. WITNESS WHEREOF, this Certificate of Organization was executed on the 9th day of December,2013. .1_I —I--77\,-AI,-;:-IA e-A\,4'_-.,.6.,--.P Mark B.Johnson,Organizer 41 ALanoha v4, '. / Development C ny LOT'O ; . } , Tax Increment ftnancmg AppGcatran NE.Sec at State lohn A G212236 ale CPagORPe1 of 1 Ts 9000 LANOHA 1207 CASS,LLC Filed:035112016 03 42 49 PM AMENDED CERTIFICATE OF ORGANIZATION LIMITED LIABILITY COMPANY Submit in Duplicate John A.Gale,Secretary of State Room 1301 State Capitol,P.O,Box 94608 Lincoln,NE•68509 (402)471-4079 http.11www.sos.ne.gov Name of Limited Liability Company Latwh8125 Dodge,LLC Date Certificate of Organization was filed December 13,2013 Please mark the changes this amendment makes to as most recently amended or restated and provide the appropriate changes.thecertificate V Name of Limited Liability Company Lanoha 1207 Gass,LLC Professional Service being rendered by the Limited Liability Company Street and mailing address of the Designated Office Name of Registered Agent Street,mailing address and post office box(if any)of Registered Agent _ Any other changes to the certificate of organization (attach additional pages if needed) Effective date if other than the date filed C .---' (�1aa"k Qi•Jp}ttlC+n 313a116 Signature o f Authorized Representative Priaux,Name of Authorized Representative Date FILINGised06/23/15 FEE: $15.00 plus$5.00 per additional page Neb.Rev.Stat.§21-118 42 Rev 4., It 'xxs93 ' T 't .I 1 f `4 Lanoha A * �. fir' Development Company LOT•0 ; .: �', �.— Ate . - �rt,xt va �: r ' wg.� Taxlncrem�nt �i ' , . . HnanciLo Application CERTIFICATE OF AUTHORITY TO ACT ON BEHALF OF LANOHA 1207 CASS, LLC, A NEBRASKA LIMITED LIABILITY COMPANY The undersigned, constituting all of current Members of Lanoha 1207 Cass, LLC. a ,hereby unanimouslythe consent,as of this 5`"day of April ,2016, Nebraska limited liability companyin writing to the adoption of the following resolution: BE IS RESOLVED, that Jason P. Lanoha, being a Member of Lanoha 1207 Cass, LLC (the "Company"), be and hereby is specifically designated and authorized to represent the Company regarding the redevelopment of 1207 Cass Street in Omaha, Nebraska (the "Property"), including but not limited to the TIF Application, Redevelopment Agreement, the Redevelopment Plan, and any other documents by and between the Company and the City of Omaha relating to the redevelopment of the Property. LANOHA 1207 CASS, L,1,C. a Nebraska limited liability company, By: Jason . I anoha, Member 43 � 4 . Development C ny 1 l V 1s IncrementLanoha i ' Financnig AppScaiwn 01,LAHA,nz8 7: Office of the Mayor r� �r� � 1819 Parham Street,Suite 300 = Omaha,Nebraska 68183-0300 (402)444-5000 O�4T.D vEtlik �ry FAX:(402)444-6059 City of Omaha Jean Stothert,Mayor November 20,2015 Omaha, NE—Lanoha Development has been selected to build a mixed-use development at 12th&Cass. Lanoha will purchase the property from the City. Previously,the Wall Street Tower sales office was located at this corner. "Our team is eager to bring a thoughtful design solution to north downtown that we believe will help further the growth of this exciting and important area of our city,"said Lanoha Development Vice- President Jason Lanoha. The company plans to build a four-story retail, office and residential development,estimated at $11 million. Parking will be included within the building. The City issued a Request for Proposals to develop the site in September. Two proposals were received. "We see exceptional growth downtown, for urban living, entertainment, retail and business," said Mayor Jean Stothert. "Lanoha's investment is another example of how public-private partnerships help achieve our future goals in the north downtown neighborhoods." Contact: Carrie Murphy Deputy Chief of Staff/Communications 402-444-3520 cmurphy@cityofoma.ha.org C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska 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 redevelopment project site located at 1207 Cass Street is within a community redevelopment area, as the area meets the definition of blighted and substandard per the Community Development Law and is in need of redevelopment; and, WHEREAS, the 1207 Cass Tax Increment Financing (TIF) Redevelopment Project Plan was approved by the TIF Committee and subsequently by the City of Omaha Planning Board at their May 4, 2016 meeting; and, WHEREAS, the project site for the 1207 Cass Tax Increment Financing (TIF) Redevelopment Project Plan is located at 1207 Cass Street, and is legally described in Exhibit "A" which is attached hereto and herein incorporated by reference; and, WHEREAS, the 1207 Cass Tax Increment Financing (TIF) Redevelopment Project Plan proposes the construction of a new, modern, mixed-use five (5) story structure which will consist of Class A office space, 45 market-rate multi-family units and related amenities, ground floor lobby spaces and future retail space as described in Exhibit "B" attached hereto and herein incorporated by reference; and, WHEREAS, the 1207 Cass Tax Increment Financing (TIF) Redevelopment Project Plan recommends City's participation in the redevelopment of this project site through the allocation of TIF in an amount up to $1,831,224.00 to offset TIF eligible expenses such as acquisition, special foundation systems, architectural and engineering fees, site prep, geotechnical and environmental costs, architectural and engineering fees, and public improvements as required, for a project with total estimated costs of$13,551,633.51; and, By Councilmember • Adopted City Clerk Approved Mayor c Asa CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska Page 2 t WHEREAS, the Plan presents a project based on estimated figures and projections that are subject to change as project costs are finalized, and is required to'comply with all Planning Department requirements and Planning Board recommendations; and, ' WHEREAS, Section 18-2108 of the Nebraska Revised Statutes fequiresithe City of Omaha to adopt a redevelopment plan before taking an active part in a redevelopment project; including the division of ad valorem taxes for a period not to exceed fifteen years under Sections 18-2147 through 18-2150, Revised Statutes of Nebraska; and, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: THAT, the attached 1207 Cass Tax Increment Financing (TIF) Redevelopment Project Plan for a redevelopment site located at 1207 Cass Street which proposes the construction of a new, modern, mixed-use five (5) story structure which will consist of Class A office space, 45 market-rate multi-family units and related amenities, ground floor lobby spaces and future retail space, recommending the City's participation through the allocation of TIF in an amount up to $1,831,224.00 to offset TIF eligible expenses such as acquisition, special foundation systems, site prep, geotechnical and environmental costs, architectural and engineering fees and public improvements as required, but is subject to change as final costs come in, containing a provision for the division of ad valorem taxes under Section 18-2147 through 18-2150, Revised Statutes of Nebraska, as recommended by the City Planning Department, be and hereby is approved. APPROVED AS TO FORM: S 5 / ASSI TANT TI7 AT RNEY DATE 2374 dlh By 4 i '14414,b Councilmember Adopted U 4 2016 .... �/_� "---- ---#4" �—� City Clerk �/� �� pP d A rove 1-4/•'� 66 Mayor NO ‘?.......,... Resolution by Res. that. the attached 1207 Cass Tax 2374 dlh Increment Financing (TIF) Redevelopment Project Plan for a redevelopment site located at 1207 Cass Street which proposes the construction of a new, modern, mixed-use five (5) story structure which will consist of Class A office space, 45 market-rate multi- family units and related amenities, ground floor lobby spaces and future retail space. recommending the City's participation through the allocation of TIF in an amount up to $1,831.224.00 to offset TIF eligible expenses such as acquisition, special foundation systems, site prep, geotechnical and environmental costs, architectural and engineering fees and public improvements as required, but is subject to change as final costs come in. containing a provision for the division of ad valorem taxes under Section 18-2147 through 18-2150, Revised Statutes of Nebraska. as recommended by the City Planning Department. be and hereby is approved. Presented to City Council MAY 2 4 2016 !j°, ` .. f'd - ZVI'L. ; _ fi 1�"f,,;.lff4/_ .✓4.`d'/ i�'plc'' • s� �` `� 7sf, :�. • JUN 142016 - Adopted gaiter /?rown City Clerk