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RES 2013-0580 40th & Farnam TIF Plan
City of Omaha Jim Suttle, Mayor Honorable President and Members of the City Council, PECEiVE:U 13 ~J' ~ i I ~,. '.': r ClTY Cl .. C:'cl. April 30, 2013 Planning Department ( )n1aha/l)ougla~ Civii.: Center 1819 Farnanl Strc('t, Suite 1100 ( )maha, Nebraska 68183 ( 402) 444-5150 Tdcfax (402) 444-6140 R. E. Cunningham, RA, F.SAME I)irectfJr The attached Resolution transmits the 40'h & Farnam Tax Increment Financing (TIF) Redevelopment Project Plan. This project represents the rehabilitation of 3 one-story buildings and I two-story building into a mix of commercial office/retail and residential space located at 3922-3928 Farnam Street. The commercial office/retail spaces will be contained on the ground floors of the 3 one-story buildings and on the ground floor of the two-story building. Seven market-rate apartment units will be built-out on the 2"d floor of the two-story building which is located on the corner of 40'h & Farnam Streets. This redevelopment has a cross-easement agreement with the neighboring property owner to the north. The agreement provides for nearly 70 parking spaces for the redevelopment. The rehabilitation of these buildings will remove code violations from a couple of the buildings, make them productive assets and bring much needed revitalization to this Midtown neighborhood business district. This project also has the potential to create up to 24 new FTEs and up to 20 new part-time jobs based on the types of businesses targeted as tenants. 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 $235,500.00 to offset costs such as acquisition, demolition, rehabilitation, architectural and engineering fees, and any public improvements to include $15,000.00 in T!F contributions toward the street improvements along Farnam Street between 36'h and 42"d Streets. The estimated total project cost is $1,290,000.00, but is subject to change as final costs come lll. Your favorable consideration of this Resolution will be appreciated. Ret,,d'to City Co ~~~~---$~{Jj_Y/a L nsideration: .t{_,__(~~-13 Date Date Approved: au l/-//-1.J Allen Herink Date Acting Finance Director Public Works Director 1839 dlh Notice of Publication: May 2, 2013 and May 9, 2013 Public Hearing: May 21, 2013 ALTNACSM LAND TITLE SURVEY LOT 1, JEROME PARK REPLAT 1 UTILITY LOCATE NOTE ~,i;"j'.\'i-.,,, ~-:;_,,., ~~~-"' CENERAL NOTES ~~!~ .u .......... ,,. ''"""'" :.:~~~l- =.~"I'~~~- ~ N j / I . 1/ -...ult.-OOJ.w:ru -'-'"'""™1"'11 """'_. .... """'""''ll<'Tll.a<-'"''" , .... "''"""' ,_,,, . ._......._"'''""'" """""'""""""'"""""" I I I I I I •• l~,:r, 1-· I I EX ttrB1T '\A'r <(l<;,OINER/,_CQ"""E"O"-~""''" ' I I I I I SCHEDULE B-SECTION 2 .......... ~~ """"'""'-"""""'- ~::.::..:-;~-:::.:.:...-:.!'::::.":""'-~""""-~-- @ ~1..::;'.-::::'l~,:',,:":".::.:>n""'"""'""'-'-""'.._ © -" .. ~~.;;:.~,~~r:.~:;z-:;r~=·=~-=,_ ~~!~i~f~~;~~~;~ © ::. :"'..::7:.~-::::..-=-~··~:=.,~~~"'~.:.:;-- © ... .._,..,._,. ____ .,_ .. "_' ,_,.......,_..,""""'"""'' "---, .... ~-....... _..., ...... ,_""""'_"'_'""'""'""'' --------~ ____ ,. __ ...,"" ---·-""-----===--·~~ == ::::.:.-..=...""' --~ ---..... ._ ....,,_,,,.,""""''~'"~' .,,..,_, --- SURVEYOR'S CERTIFICATION' z~ o~ Ill• 111: ..... < 6 ! EXHIBIT "B" 40TH & FARNAM TIF REDEVELOPMENT PROJECT PLAN 3922-3928 FARNAM STREET MAY 2013 Jim Suttle, Mayor City of Omaha R E. Cunningham, RA, F. SAME Director, Planning Department Omaha/Douglas Civic Center 1819 Farnam Street, Ste. 1111 Omaha, Nebraska 68183 6 CASE: C3-13-082 APPLICANT: Planning Department on behalf of the City of Omaha REQUEST: Approval of the 40TH & FARNAM TIF REDEVELOPMENT PROJECT PLAN LOCATION: 3922-3928 Farnam Street SUBJECT AREA IS SHADED -APRIL 2013 C-ACl-2(50 GC-A 1-1 (PL) l-----' GC-ACl-1 ( >L) •---·~ 1tli Farnam St GC-At 1-1 (PL) R7-AC -1(PL) 0 GC-ACl-1(PL) Harney St RB-ACl-1 (PL) .,~----... I $ -ACl-1 (PL)-P -(PL •••••••• GC Cl-1(P CC-ACl-1 (PL) GO-Cl-1 (PL) GO-ACl-1(PL) r-----.__..-1~~~ R7-ACl-1 (PL) N 400 Feet A TO: FROM: DATE: SUBJECT: INTER-OFFICE COMMUNICATION City of Omaha, Nebraska Planning Department Chairman and Members of the Planning Board R. E. Cunningham, RA, F. SAME Planning Director March 27, 2013 40th & Farnam TIF Redevelopment Project Plan 3922-3928 Farnam Street Case #C3-13-082 This TIF project represents the rehabilitation of 3 one-story buildings and 1 two-story building along the south side of Farnam at 40•h Streets into a mix of commercial office/retail and residential space. The commercial office/retail spaces will be contained in the 3 one-story buildings and the ground floor of the two-story building. Seven market-rate apartruent units will be built out on the 2nd floor of the two-story building on the corner of 40th & Farnam Street. The buildings have been vacant for several years, except for the building occupied by Sullivan's Bar which plans to relocate across the street. A couple of the buildings have notices of violations from the City's Code Enforcement. The owners are working with the Code Enforcement Inspector to remedy the violations; all of the violations will be addressed through the rehabilitation of this project. Located in Midtown, this redevelopment will serve three of Omaha's largest employers: Mutual of Omaha, Kiewit Construction, and University of Nebraska Medical Center, as well as its employees and the residents of the area. The owners, JMJ Partners, LLC have strong interest in most of their commercial spaces. Due to the strong demand for apartruent units within the Downtown and Midtown area, the owners, of which one is Jason Lund -V.P. of The Lund Company, are confident that they will be able to lease the units within this year. This redevelopment has a cross-easement agreement with the neighboring property owner to the north. The agreement provides for nearly 70 parking spaces for the redevelopment. The agreement runs with the land. The project site is currently zoned GC-ACI-1(PL). The owners will need to apply for a conditional use permit to allow for the apartruent units. Sewer and electrical utilities exist at the site. Public infrastructure improvements will include repaving the sidewalks adjacent to the site, improving the street lighting adjacent to the site, some construction of underground utilities and repaving and re- striping the parking area along Farnam Street. The project is scheduled to be completed in May 2013. No Building Permit will be issued based on a site plan that does not comply with the provisions of the Zoning Ordinance. TIF Request: A TIF request of $235,000.00. TIF will be used to offset costs such as acquisition, demolition,· rehabilitation, architectural and engineering, and any public improvements. Incidentally, this property is within the Farnam Street BID and $20,000.00 of the TIF proceeds/loan will be contributed toward the street improvements along Farnam Street between 36<h and 42nd Streets. The total estimated project cost is $1,290,000.00. This project will be required to comply with all Planning Departruent and Planning Board recommendations. The project site and area meet the requirements of Nebraska Community Development Law and qualify for the submission of an application for the utilization of Tax Increment Financing to cover cost BH Interoffice communication Case #C3-13-082 Page3 associated with project development as submitted for approval through the Tax Increment Financing process. The project is in compliance with the Master Plan, appropriate Ordinances and development regulations of the City. DEPARTMENT RECOMMENDATION: Approval. ATIACHMENTS Plan BH Date: To: From: Applicant: Project Name: Location: Project: INTER-OFFICE COMMUNICATION March 18, 2013 TIF Committee: Rick Cwmingham, Cassie Seagren, Scott Winkler, AL Herink, Paul Kratz, Robert Stubbe, Todd Pfitzer, Gail Braun, Aida Arnoura -Rezac Bridget A. Hadley -City Planning &iW JMJ Partners, LLC 40th & Farnam TIF Redevelopment Project Plan 3922-3928 Farnam Street This TIF project represents the rehabilitation of 3 one-story buildings and 1 two-story building along the south side of Farnam at 40th Streets into a mix of commercial office/retail and residential space. The commercial office/retail spaces will be contained in the 3 one-story buildings and the ground floor of the two-story building. Seven market-rate apartment units will be built out on the 2°d floor of the two-story building on the comer of 40th & Farnam Street. The buildings have been vacant for several years, except for the building occupied by Sullivan's Bar which plans to relocate across the street. A couple of the buildings have notices of violations from the City's Code Enforcement. The owners are working with the Code Enforcement Inspector to remedy the violations; all of the violations will be addressed through the rehabilitation of this project. This project has the potential to create up to 24 new FTEs and up to 20 part-time jobs based on the types of businesses targeted as tenants. Located in Midtown, this redevelopment will serve three of Omaha's largest employers: Mutual of Omaha, Kiewit Construction, and University of Nebraska Medical Center, as well as its employees and the residents of the area. The owners, JMJ Partners, LLC have strong interest in most of their commercial spaces. Due to the strong demand for apartment units within the Downtown and Midtown area, the owners, of which one is Jason Lund -V.P. of The Lund Company, are confident that they will be able to lease the units within this year. This redevelopment has a cross-easement agreement with the neighboring property owner to the north. The agreement provides for nearly 70 parking spaces for the redevelopment. The agreement runs with the land. The project site is currently zoned GC ACI-1 (PL). The owners will need to apply for a conditional use permit to allow for the apartment units. Sewer and electrical utilities exist at the site. Public infrastructure improvements will include repaving the sidewalks adjacent to the site, improving the street lighting adjacent to the site, some construction of underground utilities and repaving and re-striping the parking area along Farnam Street. The project is scheduled to be completed in May 2013. TIF will be used to offset costs such as acquisition, demolition, rehabilitation, architectural and engineering, and any public improvements. Incidentally, this property is within the Farnam Street BID and $20,000.00 of the TIF proceeds/loan will be contributed toward the street improvements along Farnam Street between 36th and 42°d Streets. The total estimated project cost is $1,290,000.00. TIF Eligible Costs are as follows: Acquisition $ 315,000.00 Construction/rehab costs $ 975,000.00 Total TIF Eligible $1,290,000.00 The project site and area meet the requirements of Nebraska Community Development Law and qualify for the submission of an application for the utilization of Tax Increment Financing to cover cost associated with project development as submitted for approval through the Tax Increment Financing process. The project is in compliance with the Master Plan, appropriate Ordinances and development regulations of the City. Request: The TIF request is $235,000.00; up to $246,897.00 inclusive of capitalized interest; bank interest rate of 5%. Using the current levy rate of 2.17448% supports the TIF amount inclusive of capitalized costs. See attached TIF calculation spreadsheet. TIF Fee Schedule: $500.00 application fee and the processing fee of $3,000.00 were paid; administrative fees of$0.00. Total fees will be $3,500.00. Recommendation: Approval ATTACHMENTS TIF Application TIF Calculation Spreadsheet Applicant: 40th & Farnam PROFORMA Debt Service Payments Total Less Pre-TIF Treasurer's Revenues -------------------------------------------------Taxable Development Taxable Ta> Ta> 1% Collection Available Interest at Looo Capitalized Interest at DATE Valuation Base Valuation Le"Y Revenues Fee ForTIF Loan Principal 5.00% Total Balance Interest 5.00% ----------------------------------------------------------------0 $235,000 0.5 $ 0 $ 2.17448 $ $ $ $0 $0 $0 $240,875 5875 5875 1 $ 0 $ 2.17448 $ $ $ $0 $0 $0 $246,897 6022 6022 1.5 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $6,325 $6,172 $12,497 $240,572 0 6172 2 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $6,483 $6,014 $12,497 $234,089 0 6014 2.5 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $6,645 $5,852 $12,497 $227,444 0 5852 3 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $6,811 $5,686 $12,497. $220,633 0 5686 3.5 s 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $6,981 $5,516 $12,497 $213,652 0 5516 4 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $7,156 $5,341 $12,497 $206,496 0 5341 4.5 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $7,335 $5,162 $12,497 $199,161 0 5162 5 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $7,518 $4,979 $12,497 $191,643 0 4979 5.5 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $7,706 $4,791 $12,497 $183,937 0 4791 6 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $7,899 $4,598 $12,497 $176,038 0 4598 6.5 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $8,096 $4,401 $12,497 $167,942 0 4401 7 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $8,298 $4,199 $12,497 $159,644 0 4199 7.5 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $8,506 $3,991 $12,497 $151,138 0 3991 8 $ 1,161,000 0 s 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $8,719 $3,778 $12,497 $142,419 0 3778 8.5 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $8,937 $3,560 $12,497 $133,482 0 3560 9 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $9,160 $3,337 $12,497 $124,322 0 3337 9.5 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $9,389 $3,108 $12,497 $114,933 0 3108 10 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $9,624 $2,873 $12,497 $105,309 0 2873 10.S $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $9,864 $2,633 $12,497 $95,445 0 2633 11 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $10,111 $2,386 $12,497 $85,334 0 2386 11.5 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $10,364 $2,133 $12,497 $74,970 0 2133 12 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $10,623 $1,874 $12,497 $64,347 0 1874 12.5 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $10,888 $1,609 $12,497 $53,459 0 1609 13 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $11,161 $1,336 $12,497 $42,298 0 1336 13.5 $ 1,161,000 0 s 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $11,440 $1,057 $12,497 $30,858 0 1057 14 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $11,726 $771 $12,497 $19,132 0 771 14.5 $ 1,161,000 0 s 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $12,019 $478 $12,497 $7,113 0 478 15 $ 1,161,000 0 $ 1,161,000 2.17448 $ 12,623 $ 126 $ 12,497 $12,319 $178 $12,497 $0 0 178 ======== ======== =====:== ----------------------------------- -------====::c::•===== --------$353,444 $3,528 $349,916 $252,103 $97,813 $349,916 $11,897 =========:= "'========== ===:======= ==:======== ====,,,====== =========== ==:=,,,======= ASSUMPTIONS: { f9 = calculate ) NOTE: This infonnation is provided to assist in analyzing the Original Loan Amount $235,000 specific request to the TIF committee. This Information is subject Capitalized Interest $11,897 1. Assume No Pre-Development Base to change based on actual tax assessments. This schedule assumes Loan Balance Remaining $0 2. Loan Amount: $235,000 a 90% real estate valuation and a 1.0 debt coverage ratio. The ------3. Interest Rate: 5.00% actual TIF amount available to fund site specific project cost will $246,897 4. Project Hard Cos $1,290,000 change based on the cost of public improvements. "'"'"'"'"'"'"'"'"'""" 5. Increment Base: $1,161,000 Est. Annual Incremental Taxes $ 25,246 TAX INCREMENT FINANCING REQUEST JMJ PARTNERS LLC 40TH AND FARNAM OMAHA, NEBRASKA PREPARED BY: JMJ PARTNERS LLC March 8, 2013 1 INDEX TAB PROJECT DESCRIPTION 3 DEVELOPMENT FINANCING PLAN 8 PRELIMINARY COMMITMENT FOR FINANCING 9 PROFORMA JO STATEMENT AND DEMONSTRATION THAT PROJECT WOULD 18 NOT PROCEED WITHOUT THE USE OF TAX INCREMENT FINANCING EVIDENCE THAT PROJECT MEETS EV ALU A TI ON CRITERIA 19 PRELIMINARY PLANS 20 DEVELOPMENT SCHEDULE 21 PUBLIC IMPROVEMENTS 22 LIMITED LIABILITY COMPANY PAPERS 23 FINANCIAL STATEMENTS 24 2 PROJECT DESCRIPTION Project Owner: Project Address: Project Legal Description: Estimated Overall Project Costs: TIF Request: Current Use: Current Zoning: Proposed Use: Current Annual Real Estate Taxes: Current Assessed Tax Valuation: 3 JMJ Partners, LLC 3922 -3928 Farnam St. Omaha, Nebraska. One Legal Description. The East 19.80 feet of Lot 6 and the West 13.59 feet of Lot 5, all in Block 7, Jerome Park, an Addition to the City of Omaha, Douglas County Nebraska. AND That part of Lot 6, Block 7, Jerome Park, an Addition to the City of Omaha, Douglas County, Nebraska described as follows: Beginning at a point on the South line of Lot 6, 19.8 feet West of the Southeast corner thereof, thence Northerly 132 feet to a point on the North line of Lot 6, 22.3 feet, thence South 132.0 feet to a point on the South line of Lot 6, 21.5 feet West of the point of beginning, thence East 21.5 feet to the place of beginning. $1,290,000 $235,000 Vacant except one bay occupied by Sullivan's Bar GC-ACI-l(PL) GC-ACI-l(PL) with a Conditional Use Permit for the apartment units. $13,372.86 $635,900 (County Assessor has agreed to reassess at or near the purchase price of $315,000) Project Summary: 40'h and Farnam St. (40Farnam) has the potential to be a vibrant business district and serve as another multi-use neighborhood in midtown Omaha. Additionally, the redevelopment of this area would allow for a business district to connect the University of Nebraska Medical Center to Midtown Crossing to downtown Omaha. JMJ Partners LLC, recognizes the potential for this area and would like to be part of the solution to strengthen the urban core of the city. Through the purchase of the property and complete redevelopment to the building, .TM.T Partners LLC, hopes to provide desirable tenant space to potential restaurateurs, shop owners, business owners, and anyone else who shares the vision for this neighborhood. The building is in disrepair. The square footage of this building is 14,378 and currently, only 1825 square feet is leased. Initial condition of the building upon acquisition found the overall property with over 20 code violations. The owners are working with Mike Johnson, the City's Code Enforcement Inspector for this area, to address all code violations. These violations made the properties uninhabitable space for commercial and residential tenants alike. Additionally, the properties posed a danger to the surrounding community and became an inviting place for unsavory activities. There has been no viable tenancy in the buildings for 5 years, with the exception of the loan tenant -Sullivan's Bar. The proprietor of Sullivan's will be moving his business elsewhere in the coming months (please see below). In order to attract the best tenants in the area, the project must redevelop the entire space. No tenant will lease space in building that is neighbor to a broken down and boarded up property. The second floor of 40Farnam presents a unique opportunity to make the redevelopment mixed-use with residential. The project calls for the build out of 7 apartments. Research indicates 7 redeveloped apartments will have a significant advantage in this market. The current state of the building presents significant redevelopment costs, which necessitate tax increment financing in order to make this project viable. Consequently, .TMJ Partners, LLC respectfully submits this TIF application. 4 Program: The project will lease four retail or commercial tenants and build out apartments for lease on the second story. Sullivan's Bar leases 1825 square feet on the first floor and is a party to a lease until Spring of 2014. It appears Sullivan's Bar will not renew the lease and move the business across the street. The largest bay, on the comer of 40'h and Farnam Street, will act as the anchor for the redevelopment. Improvements will be made to the space with the anticipation a full service restaurant will lease the premises. The two other commercial spaces are vacant. We have a signed letter of intent for 3924 Farnam St. We are in communication with a prospective tenant for 3922 Farnam St. and are confident they will occupy the space. With nearly 70 off-street parking stalls connected to this project we are confident we will have the commercial spaces fully leased by the end of the calendar year 2013. All research indicates the apartments will see high demand. The midtown to downtown rental market historically has had strong occupancy. Based on the November 2012 FOR RENT Apartment Survey, the downtown area had most occupancy rates of 90% to l 00%. The JREM Spring 2012 survey had occupancy in the 40'h and Farnam St. zip code at 87%. Most units in our neighborhood are older while ours will be new and in very good condition and have good quality finishes. They will be unique in the area and should compete well in the market. Additionally, this area is emerging as a true 24/7 area in Omaha. Residents in the area work, live, and play within the business district and the area does not have as many commuters for work or entertainment as other neighborhoods in Omaha experience. Another advantage enjoyed by this redevelopment is a cross-easement agreement with the neighboring property owner to the north. The agreement provides for nearly 70 parking spaces for the redevelopment. The agreement runs with the land. 5 ·This program will bring much needed employment opportunities to the area. Location 3928 Farnam Restaurant 3926 Farnam Bar 3924 Farnam (brewery) 3922 Farnam (bakery) Total Data: Building One: 2"d Floor: Building Two: Building Three: The Market: 5379 SF 4900 SF 2025 SF 2074 SF Full time Part time Monthly Payroll 15 10 $17,000 3 4 $4,000 4 2 $9,000 2 4 $5 100 24 20 $35, 100 Midtown Omaha has seen tremendous redevelopment with the over $300 million dollar project at Midtown Crossing. Midtown Crossing has provided the multi-use redevelopment needed surrounding three of Omaha's largest employers; Mutual of Omaha, Kiewit Construction, and University of Nebraska Medical Center. This redevelopment will serve the large employers and residents of the area. Apartment Market: As the redevelopment will only have 7 apartment units to lease up, the units are expected to be rented well within the lease up period of the retail space, most likely within 3 months. The retail areas have 9,744 SF of space to lease. There are no letters of intent for the apartments to date. There are two interested parties for two of the spaces. Given the lack of available 6 redeveloped residential space, good off street parking access and joint parking easement, we are positioned to have strong success competing for tenants and will likely to reach stabilization within one year of completion. There will be preleasing marketing which is expected to occur during construction, this will allow for an additional 4-5 months of exposure or near 18 months total. Redevelopment Team: JMJ Partners LLC, is comprised of five members. The managing members are Jay Lund and Matt Dwyer. Jay Lund is Vice President of the Lund Company. The Lund Company manages 8 million in square feet of office and retail space and over 4000 apartment units in the Omaha metro area. Additionally, the Lund Company has leased and developed property for over 25 years and has a distinguished reputation. Matt Dwyer is a partner at CETAC Technologies, an instrument manufacturing company here in Omaha and has 15 years of experience in operations and business management. In addition to the owners described above, the project team compnses the following professional firms with decades of cumulative experience on urban redevelopment projects: Construction: Streamline Construction Architecture: Alley Poyner Macchietto Architecture Engineers: Thompson Dreesen Dorner 7 DEVELOPMENT FINANCING PLAN Use of Funds Acquisition Costs $315,000 Construction Costs & Finish $950,000 Soft Costs $25,000 Total Uses of Funds $1,290,000 Sources of Funds Bank Construction Loan Financing $872,000 Equity $183,000 Tax Increment Financing $235,000 Total Sources of Funds $1,290,000 8 COMMITMENT FOR FINANCING AND EQUITY See attached. 9 PROFORMA 40Farnam-Valuation Year 1 Income Capitalization Approach Gross Rent Address Space Type Square Feet (PSF) Annual Net Rent 3928 Farnam Retail 3554 $17.00 $60,418 3926 Farnam retail 1825 $17.00 $31,025 3924 Farnam Retail 2025 $15.00 $30,375 3922 Farnam Retail 2074 $15.00 $31,110 Unit 1 1 bed apt 725 $12.00 $8,700 Unit 2 1 bed apt 689 $12.00 $8,268 Unit 3 1 bed apt 653 $12.00 $7,836 Unit 4 1 bed apt 910 $12.00 $10,920 Unit 5 1 bed apt 700 $12.00 $8,400 Unit 6 1 bed apt 600 $12.00 $7,200 Unit 7 1 bed apt 623 $12.00 $7,476 TOTALS 14,364 $211,728 Vacancy Rate 10% $(21,178) Operating Expenses $6.00 $(86, 184) Net Operating Income $104,366 Annual Debt Service $87,000 Annual CASH FLOW $17,366 10 Return on Investment 6.19% PROFORMA 40Farnam-Valuation Year 2 Income Capitalization Approach Gross Rent Address Space Type Square Feet (PSF) Annual Net Rent 3928 Farnam retail 3554 $17.34 $60,418 3926 Farnam retail 1825 $17.34 $31,025 3924 Farnam retail 2025 $15.30 $30,375 3922 Farnam retail 2074 $15.30 $31, 110 Unit 1 1 bed apt 725 $12.24 $8,700 Unit 2 1 bed apt 689 $12.24 $8,268 Unit 3 1 bed apt 653 $12.24 $7,836 Unit 4 1 bed apt 910 $12.24 $10,920 Unit 5 1 bed apt 700 $12.24 $8,400 Unit 6 1 bed apt 600 $12.24 $7,200 Unit 7 1 bed apt 623 $12.24 $7,476 TOTALS 14,364 $215,959 Vacancy Rate 10% $(21,595) Operating Expenses $6.00 $(86, 184) Net Operating Income $108,180 Annual Debt Service $87,000 Annual CASH FLOW $21, 180 11 ·Return on Investment PROFORMA 40Farnam-Valuation Year 3 Income Captialization Approach Address Space Type 3928 Farnam retail 3926 Farnam retail 3924 Farnam retail 3922 Farnam retail Unit 1 1 bed apt Unit 2 1 bed apt Unit 3 1 bed apt Unit 4 1 bed apt Unit 5 1 bed apt Unit 6 1 bed apt Unit 7 1 bed apt TOTALS Vacancy Rate 10% Operating Expenses $6.00 Net Operating Income Annual Debt Service Annual CASH FLOW 7.6% Gross Rent Square Feet (PSF) Annual Net Rent 3554 $17.69 $62,870 1825 $17.69 $32,284 2025 $15.61 $31,610 2074 $15.61 $32,375 725 $12.48 $9,048 689 $12.48 $8,598 653 $12.48 $8,149 910 $12.48 $11,356 700 $12.48 $8,736 600 $12.48 $7,488 623 $12.48 $7,775 14,364 $220,289 $(22,028) $(86, 184) $112,074 $87,000 $25,074 12 Return on Investment 9.0% The best approach to the future value of this property is the Market Capitalization approach. The below table shows a range of market capitalization values for the property from t 9% to 7%. We have provided a range, but our projection is 8%. Market Capitalization Rate Market Value PSF 9% $ 1, 159,622 $ 80.62 8% $ 1,304,575 $ 90.70 7% $ 1,490,942 $ 103.65 An 8% Market Capitalization rate is a fair indicator of value for this property. The property, when completed, will be modernized with all new utilities and mechanical services, while still maintaining the historic charm and character of its original design. Both the commercial and residential spaces will compete strongly for appealing, stable local tenancy. The other strong method of valuation for this property would be the sales comparable approach. We feel a blended price per square foot of 94.51 is fair and comparable to other properties of equal quality and modernization. This price approach is seen below: Sales Comparable Approach Commercial Square Footage Value Range PSF $100.00 $110.00 $947,800.00 $1,042,580.00 $1,137,360.00 9,478 13 $120.00 Apartment Units Value Range Per Unit $35,000 $45,000 $55,000 VALUE RANGES $1,192,800.00 $1,357,580.00 $1,522,360.00 PSF $83.04 $94.51 $105.98 $245,000 $315,000 $385,000 14 CONSTRUCTION PROFORMA The following is a list of construction activities with associated costs: Acquistion cost of building Infill brick areas along lower East elevation Infill doors and coal shoot openings Remove bars from windows Repair roof drains Patch roof penetrations Remove wiring on exterior Install exterior lighting Have Cox Communications remove cabling Install exterior doors Install exterior cased windows upstairs where boarded up Install new aluminum storefronts Remove concrete ramp in rear Replace overhead door in rear Remove loose paint on exterior Remove all interior trash Remove unused mechanical Address sagging foundation at storefront Fix drywall holes in interior spaces Paint rear elevation Patch interior floor holes Replaced stained subfloor Remove ductwork and air handler Haul out abandoned machinery Repair parapit caps Remove plaster on interior walls Remove ceiling on interior Remove ceiling batt insulation in 3 924 Hang interior rope lights Properly disconnect and remove old electrical in 3928 Paint interior of all bays Buff and recoate wood floors in 3928 Replace tile in corner of 3928 Remove moldy drywall in 3928 stairwell Camera sanitary sewers for condition analysis 15 $315,000 $1, l 00 $ 2,850 $700 $2,800 $2,000 $1,500 $ 500 $ 600 $8,600 $2,500 $45,565 $1,210 $1,800 $2,500 $1,500 $800.00 $1,000 $2,000 $2000 $1,000 $1,000 $800 $1,500 $600 $1,000 $1,200 $600 $1,300 $700 $5,000 $5,500 $1,500 $800 $600 Pull out radiators, boiler and piping Clean interiors of all bays to white box status Replace "Books and Coffee" sign Replace leaking gutters and add extensions Reframe roof drain chase in 3922 Remove coal shoots Remove 4xl2 CMU's over rear windows Install new glass/glazing on tall windows in 3922 Paint all wood trim and doors on 3 924 Secure North framed wall in 3928 Repair Stucco on front elevation of 3926,3928 Install drywall on ceiling of 3928 Install electrical transformer and distribution center Install 6" Fire Sprinkler Tap/Distribution Install 6 horizontal furnaces/condensers on main Install sanitary sewer service Interior water and waste plumbing lines, includes apartments Drop ceiling in 3928 Replace concrete sidewalk on West side of building Resurface parking areas Restripe parking lot to proposed layout GC Fee Additional architecture fees Additional Engineering fees Misc Streamline work additional fire work for 3926, 3924 and 3922 Concrete work (curbs and parking) for back lot per site plan Landscape work for back lot per site plan Landscape for 3 trees on west sidewalk Lower level deck in back per site plan Apartment stairs in back per site plan Additional mason work needed (including filling in egress areas) Framing for services infrastructure (HV AC shafts etc) Temporary stairs in back for 3926 and 3928 once concrete is ripped out Install steel door in back of3922 (currently boarded up) Install new concrete stairs in back of 3 922 Come up with the best plan for insulation/soundproofing for ceiling in 3928 in addition to needed drywall Remove plaster on west wall and around door in 3928 16 $2,000 $2,000 $1,200 $1,000 $600 $3,500 $400 $3,000 $ 400 $ 375 $ 4,300 $ 3,000 $ 58,795 $ 63,000 $ 80,000 $ 4,500 $ 50,000 $ 5,000 $ 12,000 $ 10,000 $ 4,300 $ 20,000 $ 10,000 $ 5,000 $10,000 $39,000 $15,000 $ 5,000 $ 3,000 $ 7,000 $ 3,000 $ 10,000 $ 5,000 $ 1,000 $ 1,200 $ 3,500 $5,000 $1,000 Drop electrical conduits on east wall in 3928 Frame and finish drywall east wall and upstairs staircase/wall in 3928 Repair framing and floor in 3922 Stucco repair on back of 3926 and 3928 Power pole shifting and removal in rear parking lot Streamline work associated with preparing for utility work outside (digging trenches, filling in trenches etc) Completion of 7 one bedroom apartments on second floor of 3926 and 3928 Architectual and Engineering cost Total -$ 1, 290, 000 Based upon the overwhelming improvements associated with redevelopment, including rehabilitation, major renovations, public parking, and public improvements, we respectfully submit all construction costs associated with redevelopment are TIF eligible. 17 $ 300 $ 5,000 $ 1,000 $ 3,000 $ 7,500 $ 10,000 $365,505 $25,000 Statement and Demonstration that the Project Would Not Proceed Without the Use of Tax Increment Financing Without the successful incorporation of Tax Increment Financing, il would not be economically feasible to proceed with this project. TIF blended with equity forms the critical basis for the first mortgage construction loan to be economically viable. With TIF Without TIF Gross Annual Income 211 728 211,728 Less: Vacancy (21.178) (21,178) Less: Expenses (including RE taxes) (86,184) (86, 184) Less: Primary Debt Service (87,000) (87,000) Less: Secondary Debt Service 0 (20,400) Annual Cash flow 17,366 (3,034) 6.19% Negative Summary Conclusion: Without Tax Increment Financing there would be insufficient cash flow and partner return and the project would not be feasible. Therefore, the partners have determined that they will not complete the project without Tax Increment Financing. 18 Evidence That the Project Meets Evaluation Criteria Mandatory Criteria I. The project is located in a blighted area. 2. The use of TIF will not result in a loss of pre-existing tax revenues to the City and other taxing jurisdictions. With the exception of 1825 square feet of this 14,364 square foot building, this property has been vacant and in disrepair for years. This building would continue to lose taxable value. The real estate taxes generated related to the redevelopment will be a direct increase to Douglas County and other taxing jurisdictions. 3. This redevelopment project would not be economically feasible without the use of Tax Increment Financing. TIF helps reduce the risk related to the undertaking of this project in Omaha. 4. The project furthers the City's Comprehensive Master Plan by providing high density mixed use developments with urban infill and neighborhood revitalization. This redevelopment project will assist in the high density use the Blackstone District was known for in the early 1900's. Furthermore, the project allows for the building to be on the street with parking in the rear of the building. Discretionary Criteria I. The project will generate several of jobs non-existent before this redevelopment. The uses of the commercial bays will result in several jobs in the area. 2. This project eliminates actual and potential hazards to the public. The building has been vacant and unsafe for years. 3. The building displays conditions of blight. 4. The redevelopment is attracting new business operations wi.thin the City of Omaha. 19 5. The property condition has been declining steadily in recent years. The property is subject to ,a depreciation in value as evidenced by the county assessor's acknowledgement of over assessment. Preliminary Plans See attached survey, site plan, rendering and floor plans. 20 Development Schedule January 2013 February 2013 March 2013 Redevelopment I Show Space May 2013 Acquire Property Interior Demolition and Cleaning Begin Rehabilitation and Redevelopment Complete Rehabilitation and Redevelopment and Tenant Improvements 21 Public Improvements The public improvements include repaving the sidewalk on the Northeast Corner of 40th and Farnam St. complete with green space. Provide improved lighting in around the building, repave and restripe the parking areas. Assist in construction efforts for underground utilities. 22 Limited Liability Papers See attached. 23 Financial Information Financial information from JMJ Partners LLC membership will be made available to the City, if deemed necessary, on a strictly confidential basis at a mutually agreeable time and location. RESPECTFULLY SUBMITTED BY: Sean Kelley Member JMJ Partners LLC 24 tu UJ a:: I-V) :r: ~ (/) " I f I L _ _J I ' ' I :::: .. :: ' 'I r .==----": .. s-1~~ I = i . -:-: ~ 1' I -I I I I I u....., ' ' ' I L _ _j ' ' ' ' L~jl 15 ;L.4"-Q'' (J0'-0" ------------" --· I '~---I I s -I --· ----,,10'-I -FARNAM STREET I I _J PROJECT NUMBER: ~13~0~19 ___________________________________ _ PROJECT NAME: 3928 FARNAM STREET BUILDING RENOVATION DATE: 2013-3-4 !TOTAL STALLS: 691 GENERAL NOTES: THE PARKING RECONFIGURATION WHICH SERVES 3928-3922 FARNAM ST. SHALL BE ACCOMPLISHED THROUGH PATCHING AND REPAIRING EXISTING PAVING AND ADDING NEW STRIPING AND PARKING BLOCKS. G2J ARCHITECTURAL SITE PLAN I OPTION -3 I VALUE ENGINEERED PLAN SCALE: 1" "' 30'-0" 40TH AND FARNAM DWG.NO. A-l l$!6°'""1J-ctr:ah<l.~6111!12 Pn:<IO:l.341.1,S.U 1'><:'40:1.:MlAns a~..oom -c Q '-+-~ 0 -(/) 5 Q) z ~I <( ..... 0 0 12 :J 0 0 @ <( CJ) c '5 (j) U) ..... 8 ~ 0 RESl>ENTIAL &Al.CONY ..-~ ....... Eal ·-~ ""' """ '"""'"" '"""'"" ---..,. .... 111 U I P.Al!l:NG PA~NG i i ,,,. .,, .. .., l.OAOONG L__'" """' ---------~ I ........ I I !J,-u u -:_-'-'I """"' ' ' OUIOOOJl IEAllNG eAMf' & SJJ.Jlf .. , .... il _l--1 c 202s• -· ..... 1~11 2°'73sr c ·. . II ~· I II """'"" "'1CING o'll I . ! L_i ! I ! I I I I \ I :1 i ·7l .\ 3928 Second Floor -""' -....... m-4 "-·-.... _,..__.~ ..,. ,_, r------ll II f I i - l33~1S Hl01r . S AMENDED ARTICLES 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://www.sos.state.ne. us Exact Name of Limited Liability Company ~JM :f fc,rJner:J 1 LL( I iUlit~~jJliil lilli1iili1i1lli111 illl JMJ PA~TNERS, LLC Pgs. 2 Filed: 12/17/2012 04:'40 PM Please check the item or items that are being amended and provide the appropriate information as changed by the amendment: il Name of Limited Liability Company ---------------- Q Purpose of Limited Liability Company ______________ _ Q Period of duration is---------------------- il Change in stated capital--------------------- @_ Change to any other statement in the articles of organization _______ _ lu..H.. .~u c,.i,l.....""u\.. {attach additional pages if needed) This change to the articles of organization was made pursuant to an affirmative vote of the majority in interest of the members or in such manner as specifically provided in the articles of organization. Printed Name of Authorized R"ei)resentative FILING FEE: $15.00 plus $5.00 per additional page Revised 12/2011 Neb. Rev. Stat. 21-2628 JM] Partners, LLC 143o6 Industrial Road Om1ha, N£ 68144 12-12-12 Hello, I would like to amend my articles of organization. I am the only current member: Managing Member Matt Dwyer 14306 Industrial Road Omaha, NE 68144 I would like to add the following members: Managing Member Jay Lund 450 Regency Parkway Suite 220 Omaha, NE 68114 Member Scott Stephens 4613 Wakely Omaha, NE 68132 Member Joe Pogge 1256 Royal Drive Papillion, NE 68046 Member Sean Kelley 7134 Pacific Street Omaha, NE 68106 ~-- Matt Dwyer Managing Member JMJ Partners, LLC March 7, 2013 JMJ Partners, LLC Attn: Mr. Matt Dwyer 14 3 06 Industrial Rd. Omaha, NE 68144 RE: Tax Increment Financing Loan 3924 Farnam St. Omaha, Nebraska 68131 Dear Mr. Dwyer: This letter, when accepted by you, will constitute the agreement of Dundee Bank, a Branch of Security State Bank ("Lender") to provide JMJ Partners, LLC ("Borrower") a Tax Increment Note ("Loan") in accordance with the terms, conditions and provision hereinafter outlined. 1. Borrower: 2. Loan Amount: 4. Interest Rate: 5. Loan Fee: 6. Loan Repayment: JMJ Partners, LLC, a Nebraska limited liability company. Loan amount shall be no more than $215,000 or 100% or TIF note with City of Omaha. After completion of construction period, TIF note will be matched to the term of the redevelopment promissory note from the City of Omaha, but in no event to be more than 15 years. 5.00% fixed for the first 5 years. Then variable at Wall Street Prime plus 1 .0% with a floor of 5.0% thereafter. $150 origination to Dundee Bank. Semi-Annual principal and interest payments to closely correspond with the payments made on the City of Omaha Redevelopment Promissory Note in an amount necessary to fully amortize the loan over the stated term of the note. 7. Collateral: 8. Guaranty: Security and Pledge Agreements from the City of Omaha, assigning annual real estate tax receipts to Lender. Loan shall be guaranteed on an unlimited joint and several basis by Scott Stevens, Matt Dwyer, Jay Lund, Sean Kelley, and Joe Pogge. 9. Use of Funds: Funds will be used to provide financing for TIF eligible expenses for the proposed development of the commercial real estate located at 3922-3928 Farnam St. IO.Construction Loan: 11.Loan Documents: The TIF loan commitment described in this letter is contingent upon Dundee Bank, a Branch of Security State Bank being selected as the Construction/Mini-perm Lender on Subject Property. The TIF Loan shall be evidence and secured by: a) Promissory Note; b) Commercial Loan Agreement; c) Collateral Assignment and Pledge Agreement executed by Borrower (assigning Redevelopment Promissory Note issued by City of Omaha and Redevelopment Agreement between Borrower and City of Omaha) to Lender; d) Security Agreement and Pledge Agreement execute by City of Omaha giving Lender a security interest in TIF funds generated by the project; e) Uniform Commercial Code Financing Statement executed by City of Omaha in favor of Lender, covering TIF funds; f) Opinion letter issued by Assistant City Attorney of Omaha in form and content satisfactory to Lender's counsel with respect to the TIF financing; g) Guaranty Statement; and; h) Any other documentation required by Lender The form and content of all above mentioned loan documents shall be reasonably satisfactory to Lender's counsel. 12. Requirements Prior to Loan Closing: At least fourteen (14) days prior to the closing date, Borrower shall have furnished to Lender each of the following in form and content acceptable to Lender: a) Title: Acceptable Title Search only. b) Insurance: Builder's risk, fire and extended coverage insurance for the full insurable value of the building, including comprehensive general liability insurance. All insurance policies required hereunder shall be issued by companies, on forms, in amounts and with deductibles acceptable to Lender, and shall show Lender as a loss payee with a standard non-contributory mortgagee clause in favor of Lender. Such policy shall provide that there shall be no cancellation or modification without less than thirty (30) days prior written notice to Lender. All such policies shall be renewed during the term of the loan and copies of same shall be provided to Lender at least thirty (30) days prior to the termination date of any then current policy. Rent loss coverage of at least six (6) months shall be required. c) Taxes and Assessments: Evidence that all installments of general real estate taxes, special taxes or assessments and the like are paid. d) Legal Compliance: Evidence from local governmental authorities having jurisdiction that the subject property complies with all zoning requirements, fire marshal requirements, city code requirements, and any other local ordinance relative to the property's development. e) Financial Statements: The Borrower's and Guarantors' financial statements shall be signed by the Borrower and Guaranty, and addressed to the Lender upon Lender's request. Lender may reasonably require annual operating statements on subject property and annual financial statements on the Borrower and Guarantors, including Federal Tax Returns and Schedule K- 1 (s). f) U.C.C. Searches: U.C.C searches against Borrower and such other parties as Lender may require, showing that the personal property owned by the Borrower and attached to the property is free from all security interests, liens, encumbrances, and judgments, except the prior security interest to Lender; such searches to be updated as of the closing date. 13. Special Mortgage Provisions: The loan documents shall provide, in addition to all other provisions required by lender: a) Financial Statements and Reports: Borrower and Guarantor(s) shall furnish to Lender, within one hundred twenty (120) days after the close of each year a copy of the Borrower's Income Statement and Balance Sheet and Guarantor's Personal Financial Statement(s). A copy of the Borrower's and Guarantors' federal tax return and Schedule K-l(s) shall be provided to Lender no later than April l 51 h of the subsequent year. If a tax return extension is filed, the extension form must be sent to the Lender, and the tax returns will be due no later than October 15th. Lender will also require an annual cash flow statement and a summary of contingent liabilities for each Guarantor as well as a list of contingent liabilities. Borrower will agree to provide property operating statements and rent rolls upon request by Lender. b) Due on Sale or Encumbrance: It shall be an event of default if Borrower shall, without the prior written consent of Lender, sell, convey, alienate, mortgage or encumber Borrower's interest in the Real Property or any other collateral securing the loan, or any part thereof, or any interest therein, or shall be divested of its title thereto, whether by operation of law or otherwise, or if there is a sale or other transfer of a majority of the outstanding membership units of the Borrower held by the Guarantors. c) Prepayment: Borrower has the right to prepay the principal balance of the loan, in whole or in part, without any fee or premium, upon thirty (30) days prior written notice to Lender. 14. Conditions of Closing: The Lender's obligation to disburse the loan contemplated hereunder, or any portion thereof, shall be conditioned upon the following occurring: a) Delivery of Loan Documents; Compliance: Borrower shall have delivered to Lender all documents and other items required hereunder, which shall be in such form and content as Lender shall prescribe. Borrower shall have satisfied each provision and condition of this commitment in a manner reasonably acceptable to Lender, or Lender shall have waived, in writing, Borrower's compliance with a specific provision. b) Payment of Costs by Borrower: Regardless of whether the loan closes, except for default by Lender, Borrower shall pay all of the Lender's costs in connection with the preparation, closing and disbursement of the loan, including but not limited to, title insurance premiums, survey costs, recording fees and taxes, fees and expenses of Lender's counsel and all other out-of- pocket costs and expenses incurred by Lender in connection with this loan. c) No Adverse Change: Borrower shall warrant that there has been no deterioration in the financial condition of Borrower and that the financial information heretofore submitted to Lender by Borrower is accurate and complete in all material respects. Lender will be promptly notified of any event that has, or with the passage of time could, cause a material adverse change in the financial condition of the Borrower, so long as any indebtedness represented by loan documents remain unpaid. 15. IRS Repgrting; Borrower agrees to obtain Tax Identification Numbers on all contractors, sub-contractors and suppliers, and provide appropriate 1099 reporting to the IRS in connection with all payments made under this loan. 16. Credit Agreement: 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 Joan of money or grant or extension of credit, must be in writing to be effective. 17. Borrower Acceptance of Commitment; Borrower's acceptance of the commitment must be by Borrower's approval of this commitment by executing and returning a duplicate copy of the commitment Jetter not later than March 30, 2013 at 5:00 p.m. CST. This commitment may not be assigned by Borrower. 18. Cancellation of Commitment: If Borrower has not satisfied all of the requirements prior to closing date, time being of the essence, or if Borrower has breached or defaulted in the observance or performance of any of the undertakings, warranties or representations of Borrower in connection with this loan, the Lender shall have the option without giving prior notice to borrower to cancel the commitment and terminate all of the Lender's obligations hereunder (including, without limitation, the obligation to make any disbursements of the mortgage loan proceeds) and, thereupon, Lender shall have the right to pursue any other and further legal and equitable remedies available to Lender. 19. Commitment Expiration: Closing of this loan transaction must occur within 90 days from the date of commitment acceptance or this commitment shall be considered null and void. 20. CREDIT AGREEMENT: 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 OFF 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. This commitment outlines certain basic terms and conditions of the Loans; however, it is not meant to define all of the terms and conditions of the Loans, which will be set forth more fully in the final documentation evidencing the Loans. Instead, the Commitment is intended only to outline certain basic points of the business understand around which legal documentation will be structured. The outlined terms and conditions are subject to final documentation satisfactory to all parties and complete legal review and approval of all pertinent matters. Dundee Bank a Branch of Security State Bank By:_?-, __ .::::::_-=-----_·'-'--#-'-------- Adrian Hernandez, Community Banking Officer ACCEPTANCE The above outlined terms and conditions are hereby accepted this_ day of March, 2013 JMJ Partners, LLC By: By: By: By: By: Ch;mperson Board of Comm1ss1oners Douglas County LC2 Civic Center 1819 Farnam Street Omaha, NE 68183-0001 Chairperson Omaha Public Schools 3215 Cuming Street Omaha, NE 68131 Chairperson Board of Governors Metropolitan Community College 3000 Fort Street Omaha, NE 68111 Chairperson Board of Directors Papio Natural Resources D1str1ct 8901 South 154 1h Street Omaha, NE 68138 President Educational Services Unit 1 3215 Cuming Street Omaha, NE 68131 Chairperson Metropolitan Utilities District 1723 Harney Street Omaha, NE 68102 Chairperson Metro Area Transit Authority 2222 Cuming Street Omaha, NE 68102 Cl1a1rperson Omaha/Douglas Public Building Commission MAILl~JG LIST RECCIVED '-f -1 .J --/ 3 RECEIVED BY C<--t <-l'-.,:)_,Li. .j_/,,_ 1~.nL_y City of Omalia, :Ne6ras~a Buster Brown City Clerk 1819 Farnam -Suite LC 1 Omaha, Nebraska 68183-0112 ( 402) 444-5550 FAX (402) 444-5263 "NOTICE TO TAXING AUTHORITY" Notice is hereby given that the Omaha City Council has set Tuesday, May 21, 2013 at 2:00 p.m. as the date of Public Hearing on the 401h & Farnam Tax Increment Financing Redevelopment Project Plan. This project proposes the rehabilitation of three (3) one-story buildings and one (1) two-story building into a mix of commercial office/retail and residential space located at 3922-3928 Farnam Street. The commercial office/retail spaces will be contained on the ground floors of the three (3) one-story buildings and on the ground floor of the two-story building. Seven market-rate apartment units will be built-out on the second floor of the two-story building which is located on the corner of 401h & Farnam Streets. This redevelopment has a cross-easement agreement with the neighboring property owner to the north. The agreement provides for nearly 70 parking spaces for the redevelopment. TIF in an amount up to $235,500.00 will be used to offset the costs of acquisition, demolition, rehabilitation, architectural and engineering fees, and any public improvements to include $15,000.00 in TIF contributions toward the street improvements along Farnam Street between 35th and 42"d Streets. The estimated total project cost is $1,290,000.00, but is subject to change as final costs come in. A copy of said plan is available for public inspection in the City Clerk's Office. Public Hearing will be held before the City Council of the City of Omaha, in the Legislative Chambers, Omaha/Douglas Civic Center, 1819 Farnam Street, Omaha, Nebraska. Buster Brown City Clerk 6 CASE C3-13-082 APPLICANT: Planning Department on behalf of the City of Omaha REQUEST: Approval of the 40TH & FARNAM TIF REDEVELOPMENT PROJECT PLAN LOCATION: 3922-3928 Farnam Street SUBJECT AREA IS SHADED -APRIL 2013 C-ACl-2(50 GC-A 1-1 (PL) t----' GC-ACl-1 ( l>L) Farnam St GC-Al 1-1 (PL) R7-AC -1 (PL) • 0 GC-ACl-1 (PL) RS-ACl-1 (PL) ·~----... • $ -ACl-1 (PL)·P •••••••• --. ·-· (PL GC-Cl-1(P ) Harney St CC-ACl-1 (PL) GO-Cl-1 (PL) GO-ACl-1 (PL) r-----...___-"L. __ _j R7-ACl-1(PL) N Feet 400 A C-25A CITY OF OMAHA LEG ISLA TIYE 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 3922-3928 Farnam Street is within a designated 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 40th & Farnam Tax Increment Financing (TIF) Redevelopment Project Plan was approved by the TIF Committee and subsequently, by the City of Omaha Planning Board at their April 3,. 2013 meeting; and, WHEREAS, the project site for 40th & Farnam Tax Increment Financing (TIF) Redevelopment Project Plan is located at 3922-3928 Farnam Street and is legally described in Exhibit "A" which is attached hereto and herein incorporated by reference; and, WHEREAS, the 40th & Farnam Tax Increment Financing (TIF) Redevelopment Project Plan which contemplates the complete rehabilitation of 3 one-story buildings and I two- story building into a mix of commercial office/retail on the ground floors of the buildings and seven market-rate apartment units on the 2"d floor of the two-story corner building as described in Exhibit "B" attached hereto and herein incorporated by reference; and, WHEREAS, the 40th & Farnam 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 $235,500.00 to offset costs such as acquisition, demolition, rehabilitation, architectural and engineering fees, and any public improvements to include $15,000.00 in TIF contributions toward the street improvements along Farnam Street between 361h and 42"d Streets; and, 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, By ..... ··················· ··············· ................ ······ Councilmember Adopted ............................................................... . ·································· ············· .. ··········· ..... . City Clerk Approved .................................... . Mayor C-25A CITY OF OMAHA t LEGISLATIVE CHAMBER Omaha, Nebraska ' .Page 2 WHEREAS, Section 18-2 I 08 of the Nebraska Revised Statutes 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 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 40th & Farnam Tax Increment Financing (TIF) Redevelopment Project Plan for the redevelopment project site located at 3922-3928 Farnam Street which contemplates the complete rehabilitation of 3 one-story buildings and 1 two-story building into a mix of commercial office/retail on the ground floors of the buildings and seven market-rate apartment units on the 2"d floor of the two-story corner building; recommending the City's participation site through the allocation of TIF in an amount up to $235,500.00 to offset costs such as acquisition, demolition, rehabilitation, architectural and engineering fees, and any public improvements to include $15,000.00 in TIF contributions toward the street improvements along Farnam Street between 36 1h and 42"d Streets, but is subject to change as final costs come in; containing a provision for the division of ad valorem taxes under Section 18-2147 through 18-2150, Revised Statutes of Nebraska, as recommended by the City Planning Department, be and hereby is approved. 1839 dlh ~ NO ........ 5.$.0. .............. . ' , Resolution by Res. thaJ, the attached 40th & Farnam Tax Increment Financing (TIF) Redevelopment Project Plan for the redevelopment project site located at 3922-3928 Farnam Street which contemplates the complete rehabilitation of 3 one-story buildings and 1 two-story building into a mix of commercial office/retail on the ground floors of the buildings and seven market-rate apartment t:nits on the 2"d floor of the two-story corner building; recommending the City's participation site through the allocation of TIF in an amount up to $235,500.00 to offset costs such as acquisition, demolition, rehabilitation, architectural and engineering fees, and any public improvements to include $15,000.00 in TIF contributions toward the street improvements along Farnam Street between 361h and 42"d Streets, but is subject to change as final costs come in; containing a provision for the division of ad valorem taxes under Section 18-214 7 through 18-2150, Revised Statu~rl /ebraska, as Presented to City Council recommended by the City Planning Department, be and hereby is approved. 1839 dlh .... 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