City Council

COMMUNITY DEVELOPMENT AGENCY MEETING January 27, 2015 7:00 p.m. The Chair called the meeting to order and stated a copy of the open meeting law is posted continually for public inspection located near the entrance door by the agendas. Roll call showed Members Bixby, Johnson, Legband, Anderson, Eairleywine, Landholm, Schaller and Kuhns present – 8 present. Moved by Member Anderson, seconded by Member Schaller to open the public hearing on amendment to the 23rd and Bell Redevelopment Plan and Cost Benefit Analysis for 23rd and Yager Hotel Redevelopment project. Roll call vote: 8 ayes. Motion carried. Tom Huston, City retained attorney, stated the items on the agenda relate to the 23rd and Yager Hotel Project and explained that a couple of structural items need to be in place to comply with the Community Development Law. He further stated the proposed amendment to the City’s redevelopment plan is necessary because the plan is generic. It is recommended to go back and amend the redevelopment plan to include the specific projects. The specific project of 23rd and Yager Hotel project involves a 75 room, 4 story hotel with a parking lot, indoor pool, meeting room and fitness room at the 23rd and Yager redevelopment area. Mr. Huston stated the amendment incorporates the utilization of tax increment financing and that is why it is a major amendment to the redevelopment plan. A public hearing was held by the Planning Commission and they recommended approval. Mr. Huston stated the second part of the resolution deals with the cost benefit analysis. He explained that the cost benefit analysis is one of the safeguards in the Community Development Law that enables communities to take a snapshot of a project to make sure that, in regards to a cost perspective and a benefit perspective, the benefits outweigh the cost. He explained further that there is a diversion of real estate taxes because that is the very nature of tax increment financing. The approach taken for the calculations to see how the tax increment should be sized is usually very conservative with a couple of assumptions. First assumption is face value: how much was the redevelopment site taxed or assessed for tax purposes as of January 1st of the given year? For this purpose, it is assumed 2015. There is also a requirement to make a projection of how much will the property be valued once the construction is completed on the project. For this project, Mr. Huston estimated the face value of approximately $250,000 but is seeking confirmation from the Dodge County Assessor. Mr. Huston feels the completed project will have an estimated value at $4,050,000. He stated he compared other hotels and other cities from Seward to Omaha and found a range of approximately $47,000 per room on the low end to approximately $67,000 per room on the high end. Mr. Huston stated $54,000 per room on the planned 75 room project was used to come to a completed valuation estimate of $4,050,000. The estimated tax increment base value would be $3,850,000 with a projected tax shift of $76,000 per year. He stated attached to the cost benefit analysis is a breakdown of eligible uses for the tax increment financing as provided for by Community Development Law. Mr. Huston relayed the agreement has risks that have been identified such as the estimates are wrong or the tax levy could change. He pointed out to the Members that it is not a risk for the Community Development Agency or the City of Fremont but for the developer. He further stated the Community Development Agency and City of Fremont act a conduit for the financing. Mr. Huston stated he is working with the developer on the redevelopment agreement with a target date of February 10th, 2015 for the Community Development Agency and the City of Fremont to consider. Member Johnson inquired if the appraisal came in at $3,000,000 instead of $4,000,000 does the City bear any risk. Mr. Huston responded that it will be clearly spelled out in the redevelopment agreement that the developer is responsible for making a payment in lieu of the taxes not received to the Community Development Agency to pay the debt service. Member Johnson asked if there was a risk that the developer might not be able to make that payment in lieu. Mr. Huston stated there is some risk but that the debt instrument makes it very clear that the Community Development Agency is only pledging any received taxes so they disclaim any direct responsibility by the City of Fremont or the Community Development Agency. The risk is really between the developer and its lender. Member Johnson asked if the Holiday Inn Express was used as a comparable. Mr. Huston responded that the age of the hotel discounted it a little bit and therefore was not used. Member Johnson inquired if the estimated $4,050,000 figure came from Mr. Huston’s experience, research and study. Mr. Huston stated yes and that the Dodge County Assessor agreed the project would be valued more on the lower end of the range of the hotels studied. Member Johnson asked if Mr. Huston would have definite numbers from the Dodge County Assessor for February 10th. Mr. Huston stated he had hoped to have them tonight but felt with a reasonable assumption he would definitely have information from the Dodge County Assessor for the February 10th meeting. Moved by Member Schaller, seconded by Member Kuhns to receive and file pamphlet as distributed by Mike Works, Lincoln Hotel Group. Roll call: 8 ayes. Motion carried. Mike Works, Lincoln Hotel Group, representing the developer, stated the project is a Fairfield Inn and Suites with 75 rooms and 4 stories. He further stated he has been looking to develop in Fremont for about 15 years and he talked to Paul Gifford and Dave Mitchell and that this proposed project has worked out. He stated that it is a nice market, not amazing, but a great location. He further stated he would like to see the Mall improve as well and that Yager Road might get straightened out with the development going on. Construction on the hotel will start late spring and open by spring 2016. There being no further testimony, moved by Member Anderson, seconded by Member Eairleywine to close the public hearing on amendment to the 23rd and Bell Redevelopment Plan and Cost Benefit Analysis for 23rd and Yager Hotel Redevelopment project. Roll call vote: 8 ayes. Motion carried. Moved by Member Legband, seconded by Member Johnson to approve CDA Resolution 2015-001 approving amendment to the 23rd and Bell Redevelopment Plan and cost benefit analysis for 23rd and Yager Hotel Redevelopment project. Roll call: 8 ayes. Motion carried. Moved by Member Johnson, seconded by Member Kuhns to authorize the Mayor to sign a letter of support to be sent to the Nebraska Investment Finance Authority for application of senior housing project on behalf of Fountain Springs Estates, LLC. Roll call: 8 ayes. Motion carried. Moved by Member Schaller, seconded by Member Landholm to adjourn the meeting. Roll call vote: 8 ayes. Motion carried. Meeting adjourned at 7:15 p.m.  CITY COUNCIL MEETING January 27, 2015 7:00 p.m. The Mayor called the meeting to order and stated a copy of the open meeting law is posted continually for public inspection located near the entrance door by the agendas. Roll call showed Council Members Bixby, Johnson, Legband, Anderson, Eairleywine, Landholm, Schaller and Kuhns present – 8 present. Moved by Council Member Eairleywine, seconded by Council Member Johnson to open the public hearing on the One and Six Year Street Improvement Plan. Roll call vote: 8 ayes. Motion carried. Council Member Schaller stated he wants to see work continue on the trail systems and would like to see work done sooner rather than later on establishing quite zones. Council Member Anderson stated he wants to see the continuance of repairing 1st Street as has been done in the past and wants the 1st Street extension out to Johnson Road completed. There being no further testimony, moved by Council Member Anderson, seconded by Council Member Schaller to close the public hearing. Roll call vote: 8 ayes. Motion carried. Moved by Council Member Kuhns, seconded by Council Member Eairleywine to approve Resolution No. 2015-008 adopting the One and Six Year Street Improvement Plan. Roll call vote: 8 ayes. Motion carried. Moved by Council Member Eairleywine, seconded by Council Member Bixby to open the public hearing on the amendment to the 23rd and Bell Redevelopment Plan and Cost Benefit Analysis for 23rd & Yager Hotel Redevelopment project. Roll call vote: 8 ayes. Motion carried. Tom Huston, City retained attorney, stated the Community Development Law is unclear if both the Community Development Agency and the City Council need to conduct a public hearing and adopt the amended redevelopment plan and cost benefit analysis so that is why both are considering the same items. There being no further testimony, moved by Council Member Schaller, seconded by Council Member Kuhns to close the public hearing. Roll call vote: 8 ayes. Motion carried. Moved by Council Member Johnson, seconded by Council Member Anderson to approve Resolution No. 2015-009 approving the amendment to the 23rd and Bell Redevelopment Plan and cost benefit analysis for 23rd and Yager Hotel Redevelopment project. Roll call vote: 8 ayes. Motion carried. Moved by Council Member Kuhns, seconded by Council Member Landholm to approve the consent agenda. Roll call vote: 8 ayes. Motion carried. • Dispense with and approve January 13, 2015 minutes • January 14 - 27, 2015 claims • Resolution No. 2015-010 granting permission to consume alcohol on City property for Risa Daubert, City Auditorium, March 7, 2015, cancer benefit; Roger Charette, City Auditorium, March 21, 2015, KHUB polka dance; Randi Pohlmeier, City Auditorium, October 3, 2015, wedding reception • Resolution No. 2015-011 approving purchase off of State contract from Sid Dillon Incorporated in the amount of $40,935 one new crew cab truck for Street Department • Resolution No. 2015-012 awarding bid to Municipal Emergency Service in the amount of $29,133.29 for five new Self-Contained Breathing Apparatus • Park and Recreation Board reappointment of Wendy Eairleywine and appointment of Connie Giese for three year terms ending January 2018. • Resolution No. 2015-013 approving Special Designated Liquor Permit application for Fremont Cosmopolitan 100 Club, 929 N Broad, March 21, 2015, dance; Rise’s Drive-In Liquor, 1730 West 16th, February 27, 2015, reception; Rise’s Drive-In Liquor, 700 East 10th, March 28, 2015, fundraiser; Rise’s Drive-In Liquor, 925 North Broad, April 25, 2015, reception; Rise’s Drive-In Liquor, 541 North Broad, August 1, 2015, reception; Whis’s End Zone Lounge. 925 North Broad, March 7, 2015, dance/fundraiser; Whis’s End Zone Lounge, 1710 West 16th, March 28, 2015, banquet • Resolution No. 2015-014 to accept and award bid to Grunwald Mechancial Contractor in the amount of $621,610 for Administration Building Chiller Replacement • Resolution No. 2015-15 to accept and award bid to Alstom Grid Incorporated in the amount of $332,550 for 72.5 KV Breakers • Cement worker application for Wayne George and Elkhorn Valley Contractors LLC • Resolution No. 2015-016 awarding bid to Incredible Enterprises LLC in the amount of 5% total gross sales for Splash Station Concession Center Operations • Reappointment of Bob Missel and Richard Register to Downtown Improvement District Board for five year terms ending February 2020 • Reappointment of Tom Winter, Skip Sawyer, Dr. Richard Seitz and Dan Martinez to the Housing Advisory and Appeals Board for three year terms ending January 2018 • Receive and file 2014 Fremont Street Department Annual Report • Resolution No. 2015-017 for closure of Runway 1-19 and re-designation as a taxiway at Fremont Municipal Airport • Receive and file audit ending September 30, 2014 by HSMC Orizon • Balance Sheet by fund and Statements of Revenues and Expenditures for December 2014 • Daniel Boyd request to construct a covered deck at 645 S Ridge Road, #14 Summerhaven Lake  • W.A.D. Investments, LLC and Smith & Bloemker Holdings, LLC request to preliminary plat W.A.D. Subdivision, made up of TL 45 and parts of TL 43 and 44, 9-17-8 • Resolution No. 2015-018 approving W.A.D. Investments, LLC and Smith & Bloemker Holdings, LLC request to final plat W.A.D. Subdivision, made up of TL 45 and parts of TL 43 and 44, 9-17-8 The City Clerk gave the second reading, by title only, of an Ordinance amending FMC Chapter Two - Election Wards and Districts; Chapter Three - Fire Department; Chapter Six - Graffiti Vandalism and Defacement, Sexual Predator, Illegal Immigration; Chapter Seven - Fire Department. Motion by Council Member Schaller to amend 7-301 (J: Discharge of Fireworks) by adding New Years Eve from 8 a.m. to midnight died for lack of second. The third reading will be at the next regular Council meeting. Moved by Council Member Kuhns, seconded by Council Member Schaller to approve Resolution No. 2015-019 approving Bill and Kristin Hubbell and Eric Johnson request to replat part of Lot 2, Block 10 Nye-Hawthorne Addition. Roll call vote: 8 ayes. Motion carried. Moved by Council Member Bixby, seconded by Council Member Landholm to introduce an Ordinance approving Yvonne Leuschen request to rezone TL 44, 14-17-8 and TL 4, 15-17-8 from CC – Community Commercial to R-2 Moderate-Density Residential. Roll call vote: 8 ayes. Motion carried. The City Clerk gave the first reading, by title only. The second reading will be at the next regular Council meeting. Moved by Council Member Kuhns, seconded by Council Member Schaller to introduce an Ordinance approving Rick and Mary Coates request to rezone TL 43, 14-17-8 and TL 3, 15-17-8 from CC – Community Commercial to R-2 Moderate-Density Residential. Roll call vote: 8 ayes. Motion carried. The City Clerk gave the first reading, by title only. The second reading will be at the next regular Council meeting. Moved by Council Member Schaller, seconded by Council Member Anderson to receive and file documents as presented by Melissa Petersen regarding Victory Lake Marine, Inc. request for conditional use permit to construct oversized building to be used for long term vehicle storage in RL Zoning District at 2450 West Military Avenue. Roll call vote: 8 ayes. Motion carried. Moved by Council Member Schaller, seconded by Council Member Kuhns to receive and file documents as presented by Ron Vlach regarding Victory Lake Marine, Inc. request for conditional use permit to construct oversized building to be used for long term vehicle storage in RL Zoning District at 2450 West Military Avenue. Roll call vote: 8 ayes. Motion carried. Moved by Council Member Schaller, seconded by Council Member Johnson to deny the request of Victory Lake Marine, Inc. for conditional use permit to construct oversized building to be used for long term vehicle storage in RL Zoning District 2450 West Military Avenue. Roll call vote: 7 ayes, 1 nay (Bixby). Motion carried. Moved by Council Member Anderson, seconded by Council Member Eairleywine to introduce Ordinance conveying Lot 3, Fremont Technology Park, part of Outlot A to Neutral Path LLC. Roll call vote: 8 ayes. Motion carried. The City Clerk gave the first reading, by title only. Moved by Council Member Johnson, seconded by Council Member Eairleywine to suspend the rules and place on final reading. Roll call vote: 8 ayes. Motion carried. The City Clerk gave the final reading, by title only. Roll call vote: 8 ayes. Ordinance No. 5328 passed. The Mayor announced the next meeting would be February 10, 2015 at 7:00 p.m. Moved by Council Member Anderson, seconded by Council Member Landholm to adjourn the meeting. Roll call vote: 8 ayes. Motion carried. Meeting adjourned at 8:02 p.m. I, Kimberly Volk, the undersigned City Clerk, hereby certify that the foregoing is a true and correct copy of the proceedings had and done by the Mayor and Council; that all of the subjects included in the foregoing proceedings were contained in the agenda for the meeting, kept continually current and available for public inspection at the office of the Clerk; that such agenda items were sufficiently descriptive to give the public reasonable notice of the matters to be considered at the meeting; that such subjects were contained in said agenda at least twenty-four hours prior to said meeting; that at least one copy of all reproducible material discussed at the meeting was available at the meeting for examination and copying by the members of the public; that the said minutes were in written form and available for public inspection within ten working days and prior to the next convened meeting of said body; that all news media requesting notification concerning meeting and the subjects to be discussed at said meeting and that a current copy of the Nebraska Open Meetings Act was available and accessible to members of the public, posted during such meeting in the room in which such meeting was held. Kimberly Volk, MMC, City Clerk