Local Option Review Team

AGENDA LOCAL OPTION REVIEW TEAM Thursday, May 2, 2019 12:00 p.m. Fremont Municipal Building 400 East Military Avenue Fremont, Nebraska 1. Call to Order 2. Approval of minutes from April 4, 2019 meeting. 3. Review Fund Balance. 4. Consider Local Option Economic Development fund application from Greater Fremont Development Council. 5. Adjourn. This agenda was posted at the Municipal Building and was distributed to the members of the Local Option Review Team on April 30, 2019. The official current copy is available at City Hall, 400 East Military Avenue. A copy of the Open Meeting Law is posted for review by the public.  CITY OF FREMONT LOCAL OPTION REVIEW TEAM APRIL 4, 2019 – 12:00 p.m. A meeting of the Local Option Review Team was held on April 4, 2019 at 12:00 p.m. in the 2nd Floor Conference Room at 400 East Military Avenue, Fremont, Nebraska. The meeting was preceded by publicized notice in the Fremont Tribune and the agenda displayed in the Municipal Building. The meeting was open to the public. A continually current copy of the agenda was available for public inspection at the office of the City Administrator, 400 East Military Avenue. The agenda was distributed to the Local Option Review Team on April 1, 2019 and posted, along with the supporting documents on the City’s website. A copy of the open meeting law is posted continually for public inspection. ROLL CALL Roll call showed Members George, Jacobus, Horeis, McClain, and Benson present. Oliva present items 4-5. Vobejda absent. 6 present, 1 absent. Others in attendance included Lottie Mitchell, City of Fremont; Brian Newton, City Administrator, Jody Sanders, Director of Finance; Garry Clark, Director GFDC; Ehren Parks, Brent Maze, and Derek Maze, The Red Flame, LLC. APPROVE MINUTES Moved by Member Horeis and seconded by Member Jacobus to approve the minutes of the February 19, 2019 meeting. Motion carried 5-0. REVIEW FUND BALANCE Sanders and Mitchell reviewed fund balance. Moved by Member Horeise and seconded by Member Jacobus to receive fund balance. Motion carried 5-0. CONSIDER LOCAL OPTION ECONOMIC DEVELOPMENT FUNDS FOR FILM INCENTIVE APPLICATION SUBMITTED BY THE RED FLAME, LLC. Mitchell gave staff report. Parks, Maze, and Maze gave overview of project. Moved by Member Oliva and seconded by Member Jacobus to approve the Film Incentive Rebate application made by The Red Flame, LLC for 30% of qualified local expenditures not to exceed $35,000. Motion carried 6-0. ADJOURNMENT Moved by Member Oliva and seconded by Member Jacobus to adjourn at 12:40 p.m. Motion carried 6-0. 1  Local Option Development Plan Loan Fund or Economic Enhancement Fund The purpose of the Local Option Development Plan Loan and Economic Enhancement Fund is to encourage population growth, new industries, and investment in the community. Funds are offered to businesses in the form of low or 0% interest loans and performance-based forgivable loans (grants), based upon creation of new jobs and investment in Fremont. Businesses must provide matching funds for the project. Potential City uses include land improvements; public infrastructure; building acquisition and improvements; retail industry; service industry; other new industry; equipment, working capital, job training and buy-down leases for Primary Industry; equipment, job training, buy-down leases, land improvements, building acquisition and improvements and infrastructure for Non-primary Industry; and other economic development activities allowed by statue. Eligible activities under the Economic Development Plan may include the following to attract new and existing business and industry development in Fremont. Land purchase/options Infrastructure to new or existing business and industry Site improvements Construction for new or existing business or industry or on a speculative basis The matrix for the two programs include: Interest Rate Qualification Criteria: Jobs Compensation Interest Rate > $ 18.00/hour and benefits 0% > $ 16.00/hour and benefits 2% < $ 14.00/hour and benefits 4% No benefits offered 6% Benefits” = 50% of the cost of health insurance paid by the employer Investment City Participation Interest Rate <10% 0% 10% - 19.99% 2% 20% - 29% 4% 30% + 6% Sales Tax Based on the initial years taxable sales. Taxable Sales Interest Rate >$999,999 0% $500,000 - $999,999 2% $250,000 - $499,999 4% $50,000 - $249,999 6% Revised May 2014  Page 2 Businesses will be given the benefit of the category under which they meet the requirements for the lowest interest rate. Based on staff discretion, up to a 2% reduction will be provided if multiple categories are met. The interest rate will never be less than 0%. Loans will be structured as at-risk or performance based forgiveness. To qualify for a performance based forgiveness loan, the applicant must: Pay employees at 125% of the Dodge County average wage; and Have taxable investment greater than $2.5 million dollars, or Have taxable sales greater than $2.5 million dollars. NOTE: Based on special circumstances, staff can make recommendations to the City council outside of these parameters. To be considered for financial assistance, applicants must provide a completed application, including all applicable attachments. Return competed application to City of Fremont Attn: Grant Coordinator 400 E. Military Fremont, NE 68025  Page 3 CITY OF FREMONT, NEBRASKA REQUEST FOR ASSISTANCE AGREEMENT THIS REQUEST, is made on this 29 ____ day of April 19 by Greater Fremont __________, 20____, Development Council Fremont, Nebraska , of __________________________________________ _________________________________________________________ (hereinafter referred to as the (“Applicant”) to the City of Fremont, Nebraska (hereinafter referred to as the “City”). WITNESSETH: WHEREAS, APPLICANT has requested the CITY to investigate the feasibility of obtaining an Local Option Development Plan Loan or Economic Enhancement Loan in connection with the financing of a project to be undertaken by Applicant. NOW, THEREFORE, in consideration of the request the following may be done: 1. City agrees to work with the Applicant to investigate the feasibility of obtaining financing through a Local Option Development Plan Loan or Economic Enhancement Loan for the Project. City will investigate the financial condition of Applicant and determine whether or not a Local Option Development Plan Loan Application or Economic Enhancement Loan Application is appropriate. City will submit the needed paperwork for a Local Option Development Plan Loan or Economic Enhancement Loan for the Applicant to the appropriate committees and City Council, if: a. Applicant is within the eligibility criteria and the Project is likely to be approved by the City Council for an Local Option Development Plan Loan or Economic Enhancement Loan, and; b. All other elements of the Project can be financed and /or paid for through the infusion of equity capital by the Applicant. 2. If the City determines, in its sole discretion, that the Applicant is eligible for a Local Option Development Plan Loan or Economic Enhancement Loan, then, and in such event, City will advise and consult with the Applicant in the preparation by the Applicant for a complete set of Loan documents together with supporting exhibits, for the purpose of making applications for an Local Option Development Plan Loan or Economic Enhancement Loan (hereinafter referred to as the “Loan Package”). The Loan Package shall be for the sole benefit of the Applicant provided however, that such Loan Package shall be used by the City in connection with the Application for a City Loan on behalf of the Applicant, provided, however, that the Loan Package may be used by the Applicant in seeking financial assistance or guarantees from other governmental agencies and/or private lenders. 3. Applicant hereby acknowledges that the Applicant is charged with the actual responsibility of preparing the Loan Package, and that the City’s sole responsibility in connection with the preparation of the Loan Package shall be to consult with and advise the Applicant. The Applicant further acknowledges that the Applicant will be required to promptly and accurately supply financial information concerning the Project, the operation of Project, together with the manner, method and terms of financing the Project. Applicant further specifically acknowledges and agrees that the obtaining of a Local Option Development Plan Loan or Economic Enhancement Loan, or any other financing is dependent upon many factors that the City cannot control, including but not limited to economic factors and the decisions of the City Council, accordingly, the City does not guarantee that the Applicant will obtain financing for the Project. Applicant hereby covenants and agrees that City shall not be responsible, in any manner, or liable to the Applicant or any other person in the event that the Applicant is unable to obtain a Local Option  Page 4 Development Plan Loan or Economic Enhancement Loan for the Project, or any other type of financing for the Project, whether from the City or any other governmental or public source, or from any private financing sources. Applicant also further covenants and agrees that the City shall not be liable for any of the debts or obligations incurred in and for the assistance of benefit of the Applicant. Applicant further agrees that Applicant will hold the City harmless, and pay all costs and expenses, including attorney’s fees, in the event that any claim is made or lawsuit is filed by or against the City arising out of any transaction with or assistance to the Applicant which may in any way be connected with the Agreement. IN WITNESS WHEREOF, the parties hereto have executed, caused to be duly executed this Agreement, and have affixed or caused to be duly affixed hereto there seals, this ________ 29 day of _____________, 20____. April 19 APPLICANT BY:___________________________________ Greater Fremont Development Council  Page 5 Economic Enhancement Fund and Local Option Economic Development Loan Fund Application (Application is an Official Public Document) PART I. A. Business (Borrower) Information: Name of Business to Receive Assistance:_____________________________________________________________ Greater Fremont Development Council Address: 1005 E 23rd St, Suite 2 _______________________________________________________________________________________ _______________________________________________________________________________________________ Fremont Ne 68025 City State Zip Contact Person: Garry Clark, Exec Director (___)__________________ FAX No. (402) _______________ ___________________Telephone No. 402 753-8126 Business Classification (mark one): ____ Manufacturing _____ Warehousing and Distribution ____ Service _____ Research and Development ____ Administrative Management Headquarters Federal ID #: ____________________________ 23-7402311 Business Organization (mark one): ____Proprietorship ____Corporation ____Partnership _____Other x Does the Company have a Parent or Subsidiaries? _____ Yes _____ No If Yes, Identify Name: Address: City State Zip Business Type: ____Start-up (0-5 yrs old) ____Buyout ___Existing x If existing, years in Business_____ 45 Ownership Identification: List all officers, directors, partners, owner, co-owners and all stockholders with 20% or more of the stock. Name Title Ownership % Bill Vobejda President N/A Chris Walz Vice President N/A Scott Meister Treasurer N/A Employment Information Personnel: (Full-Time-Equivalent, FTE is based upon 2,080 hours per year.) Existing Number of Full-Time Equivalent Positions: 4 Full-Time-Equivalent Positions to be Created within ____ months of Application Approval: If Jobs Would Be Lost Without Loan Approval, Total Number of Full-Time-Equivalent Jobs Retained: What is the Average Wage for Employees?  Page 6 Please describe all benefits which the business provides to employees: ________________________________________________________________________________________________________ n/a ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ B. Project Information USES OF FUNDS: Total Project Cost Loan Funds Requested Total Funds Land Acquisition __________________ ____________________ _______________ Building Acquisition __________________ ____________________ _______________ Renovation __________________ ____________________ _______________ New Facility Construction __________________ ____________________ _______________ Acquisition of Machinery/Equipment __________________ ____________________ _______________ Acquisition of Furniture/Fixtures __________________ ____________________ _______________ Working Capital (Includes Inventory) __________________ ____________________ _______________ Other (Specify) ___________________ ____________________ 1,000,000 _______________ Total: ___________________ ____________________ 1,000,000 _______________ Project Schedule: ________________________________________________________________________________________________________ See addendum ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ ________________________________________________________________________________________________________ C. SOURCES OF FUNDS: Note: Public sources of financing require the participation of a Bank and/or an injection of equity (non-debt) funds. Participating Lender Information: Name of Lending Institution: Address: Contact Person: Phone (____) Loan Amount: $ Loan Term: (Yrs) Interest Rate: % _____Variable _____Fixed Collateral Required: Equity Required: Equity Information: Amount available from business or owners for investment: $ Source of owner’s equity into project:  Page 7 Project Location: x Within the City Limits of (Fremont) Outside of City Limits but within the Zoning Jurisdiction of (Fremont) Unincorporated Area (Dodge County) D. ATTACH THE FOLLOWING: (Items 8-13 shall be considered confidential) (1) Brief description of the business’ history. ____________________________________________________________________________________________ See addendum ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ _____________________________________________________________________________________ (2) Brief description of the proposed project. Has any part of this project been started? _____ Yes _____ x No ____________________________________________________________________________________________ See addendum ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ (3) Description of Impact of Project on Applicant and Community: ________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ n/a ____________________________________________________________________________________________ (4) Have you ever declared bankruptcy? x ______ No ______ Yes If yes, Bankruptcy Chapter __________ Case # __________ Date of Deposition/Discharge ___________________________________________ (5) Are there any unsatisfied judgments against you? _______ x No _______ Yes Amount per month ______________ To Whom _____________________________________________ (6) Have you defaulted on any previous loan? ______ x No _______ Yes Give details _________________ _____________________________________________________________________________________ _____________________________________________________________________________________ (7) Are you a party to a lawsuit? ______ x No ______ Yes Give details _____________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ _____________________________________________________________________________________ (8)____3-Year n/a historical balance sheets and operating statements. Current statements less than 90 days old. (Existing Businesses Only). Provide the following and reconcile to current balance sheet: ____ n/a Aging of Accounts Payable and Accounts Receivable. ____ List of current obligations. n/a (9) n/a Personal Financial Statement and resumes for each person owning 20% or more of the business. (10) n/a Credit Report from Credit Reporting Agency. Contact your bank for information. (11) n/a Monthly cash flow analysis for the next 12 months and for new businesses, 3 months beyond the breakeven point. (12) n/a Indemnification Agreement (13)_____Tax n/a Returns for the last two years  Page 8 Once all documents have been received, the City of Fremont staff will review the application to determine if it meets the Local Option Economic Development Plan Fund or Economic Enhancement Loan Fund eligibility requirements. If eligible, a meeting will be scheduled with you. The above information is accurate to the best of my knowledge and belief. The above information is provided to help you evaluate the feasibility of obtaining public financial assistance. I understand that pages 1-3 of this application are public information and are subject to public disclosure during the application process. Dated: April 28, 2019 Signature:  Page 9 REQUEST FOR PROTECTED RECORD STATUS (Business Confidentiality Claim) Name and Address of business and representative making this confidentiality claim (please print or type): _____________________________________________________________________________________________________________ I request the attached/enclosed information (record) provided to the City of Fremont or any of its agencies (divisions or programs), be considered confidential and given protected status. Description (optional) of the information (record) which is to be covered by this confidentiality claim and which you believe qualifies for protected status ____________________________________________________________________________________________________ _________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________ The following reasons support this claim of business confidentiality. Please check all of the following which apply: (______) 1. The record provided is a trade secret. (______) 2. The record is commercial or non-individual financial information and disclosure of the information could reasonably be expected to result in unfair competitive injury to the provider of the information. (______) 3. The record is commercial or non-individual information and disclosure of the information could reasonably be expected to impair the ability of the City of Fremont, or its agencies, to obtain necessary information in the future. (______) 4. The record is commercial or non-individual financial information and the interest of the provider in prohibiting access to the information is greater than the interest of the public in obtaining access. (______) 5. The information would reveal negotiations regarding assistance or incentives offered by or requested from the City of Fremont for the purpose of encouraging a person to expand or locate a business in Fremont, but only if disclosure would result in actual economic harm to the person or place the City of Fremont at a competitive disadvantage. NOTICE: Records evidencing a final contract may not be classified protected under this section. Statement (a concise written statement supporting a business confidentiality claim is required, use reverse side of this sheet or attach additional sheets if necessary. NOTE: Claimant shall be notified if a record claimed to be protected is classified public or if the determination is made that the record should be disclosed because the interest favoring access outweigh the interest favoring restriction of access. Records claimed to be protected under this business confidentiality claim will be reviewed by the City Attorney for the City of Fremont for final determination. The City attorney will notify applicant if any documents would be deemed public records. By___________________________________________________________________Date ___________________________  Page 10 PERSONAL FINANCIAL STATEMENT As of ______________________ 20____ (Confidential Document Information) Complete this form if: 1) a sole proprietorship by the proprietor; 2) a partnership by each partner; 3) a corporation by each officer and each stockholder with 20% or more ownership; 4) any other person or entity providing a guaranty on the loan. Name_________________________________________________________ Residence Phone_________________________ Residence Address______________________________________________________________________________________ City_____________________________________________ State__________________ Zip Code_____________________ Business Name of Applicant/Borrower______________________________________________________________________ ASSETS LIABILITIES (Omit Cents) (Omit Cents) Cash on hand & in Banks $____________________ Accounts Payable $____________________ Savings Account $____________________ Notes Payable (to Bank & Others) IRA $____________________ (Describe in Section 2) $____________________ Accounts & Notes Receivable Installment Account (Auto) $____________________ (Describe in Section 6) $____________________ Mo. Payments $____________________ Life Insurance - Cash Installment Account (Other) $____________________ Surrender Value Only $____________________ Mo. Payments $____________________ Stocks and Bonds Loans on Life Insurance $____________________ (Describe in Section 3) $____________________ Mortgages on Real Estate Real Estate (Describe in Section 4) $____________________ (Describe in Section 4) $____________________ Unpaid Taxes Automobile - Present Value $____________________ (Describe in Section 7) $____________________ Other Personal Property Other Liabilities (Describe in Section 5) $____________________ (Describe in Section 8) $____________________ Other Assets (Describe in Section 6) $____________________ Total Liabilities $____________________ Net Worth $____________________ Total $____________________ Total $____________________ Section 1. Source of Income Contingent Liabilities Salary $____________________ As Endorser or Co-Maker $____________________ Net Investment Income $____________________ Legal Claims & Judgments $____________________ Real Estate Income $____________________ Provision for Fed Income Tax $____________________ Other Income (Describe) $____________________ Other Special Debt $____________________ Description of Items Listed in Section 1: *(Alimony or child support payments need not be disclosed in “Other Income” unless it is desired to have such payments counted toward total income.) Section 2. Notes Payable to Banks and Others Name & Address of Original Current Payment Terms How Secured or Endorsed Noteholder Balance Balance Amount (Monthly - etc.) - Type of Collateral Section 3. Stocks and Bonds: (Use separate sheet if necessary) No. of Shares Names of Securities Cost Market Value Date Quotation/Exchange Amount Section 4. Real Estate Owned. (List each parcel separately. Use supplemental sheets if necessary. Each sheet must be identified as a supplement to this statement and signed). Address - Type of property Title is in Date Original Present Mortgage Amount of Status of name of Purchased Cost Value Balance Payment Mortgage Section 5. Other Personal Property. (Describe, and if any is mortgaged, state name and address or mortgage holder and amount of mortgage, terms of payment, and if delinquent, describe delinquency.) Section 6. Other Assets Notes & Accounts Receivable. (Describe) Section 7. Unpaid Taxes. (Describe in detail, as to type, to whom payable, when due, amount, and what, if any, property the tax lien attaches.) Section 8. Other Liabilities. (Describe in detail.) Section 9. Life Insurance Held. (Give face value amount of policies - name of company and beneficiaries.) The City of Fremont is authorized to make all inquiries deemed necessary to verify the accuracy of the statements made herein and to determine my/our creditworthiness. (I) or (We) certify the above and the statements contained in the schedules herein are a true and accurate statement of (my) or (our) financial condition as of the date stated herein. ________________________________________________ ___________________________ ______________ Signature Social Security Number Date ________________________________________________ ___________________________ ______________ Signature Social Security Number Date Addendum.LB840 Application.4.28.19.Greater Fremont Development Council Brief Description of GFDC History: Greater Fremont Development Council (GFDC) is a 501(c)6, public-private partnership founded in 1974 with the mission to provide leadership for Greater Fremont Area economic growth initiatives and to aggressively pursue targeted growth opportunities that will result in quality job creation and retention. We market the community to the world to bring new businesses to the Greater Fremont area, engage existing businesses to help them expand and thrive, and ensure we have a diverse workforce that meets the needs of current and future employers. GFDC delivers services in collaboration with our partners and allies in economic development including but not limited to: City of Fremont, Fremont Department of Utilities, Dodge County Board of Supervisors, Greater Omaha Economic Development Partnership (GOEDP), Nebraska Department of Economic Development, Northeast Nebraska Economic Development District, and Fremont Area Chamber of Commerce. Our Program of Work encompasses four areas: 1) Business Attraction 2) Business Retention and Expansion 3) Workforce Development and Preparedness 4) Quality of Life Enhancement Quality Life - Housing Update: In 2018, GFDC was awarded $850,000 from the Rural Workforce Housing Fund through the Nebraska Department of Economic Development. GFDC raised an additional 1,030,000 from 11 local organizations and industries, including the City of Fremont. To date - The fund has contributed $1.685 million toward 306 units of multi-family housing throughout the City of Fremont (Murray Properties and Morningside Crossing). The total capital investment from these projects will be approximately $15 million dollars. Description of Proposed Project: The Greater Fremont Development Council (GFDC) is proposing a separate local fund under the Dodge County Investment Fund Program to help provide gap financing and grants to developers, contractors, and homeowners looking to rehab and develop housing to help in the Flood recovery efforts in Fremont. With approximately 1400 units impacted by the recent flood, the housing stock needs have doubled in Fremont and Dodge County as a whole. First Proposed project: GFDC in partnership with RMD Consulting, LLC. will be moving to the final stages of application to the state’s Nebraska Affordable Housing Trust Fund dollars. The request is for $600,000 to support a Lofts @ 505 Building project in downtown Fremont. The total project with create 24 apartment units and commercial use on the main floor; the project total cost is estimated at $3,603,000. The rental unit numbers will range from $495 to $850 for DED units (Studio to 2 bed units). As an applicant to this state fund, GFDC could utilize a portion of the requested LB840 funds to create instant housing and economic momentum in a space that has been dormant for decades. The NAHTF Grant application from NDED requires local match dollars to show a contribution to the grant requested project. This provides us with an initial project to help impact the balance of units needed in the affordable housing range. GFDC respectfully requests $1,000,000 from the Local Option Economic Development fund to be used to incentivise additional affordable housing, rehabilitation, and recovery projects. GFDC will serve as a gap financer for local housing organizations, developers, contractors, and homeowners alike. Addendum.LB840 Application.4.28.19.Greater Fremont Development Council Due to existing issues of housing supply/demand as detailed in a recent Dodge County Housing Study completed by Hanna:Keelan Associates, PC of Lincoln, NE, strategies for affordable housing are an urgent need for Fremont. This need has been doubled by the recent flood issues in Fremont and Dodge County. As is the case across many communities, current economic conditions and limited availability of modern housing units is impacting the ability of Fremont to recruit and retain workforce that will ultimately spend their payrolls within our community borders. Having a housing inventory that is competitive to our nearest neighbors, i.e. Elkhorn & Omaha, is essential for growing our economic base through retention of current employers and attracting new employers and their respective workforce. The retail and service establishments of Fremont rely heavily on residential rooftops, existing and future, to sustain and prosper. Both public and private education as well as non-profits within our community will also see an impact as housing units become more plentiful and more affordable. It is absolutely vital to the future of Fremont to bring supply and cost more in line with the surrounding communities in order to stay competitive while growing our economic base and thus providing for the various public services required of a community our size. Through the presence of a RLF and Grant, GFDC will be actively engaged with the developers interested in the community of Fremont. Having a representative organization able to react to the needs of prospective developers brings relief to the burden of public government, in particular the burden of staff to guide and solicit the interest of developers. In turn, there will be checks and balances in place because applicants will have to stay within the guidelines of the grant. While the fund will follow standard guidelines, the flexibility of the fund might create a quicker process than the current state regulated RLF fund. The DCIF Funds are reviewed by a committee of local leaders and banking institution representatives who make recommendations for approval to the GFDC Board of Directors. The RLF will be administered by Northeast Nebraska Economic Development District and potentially assisted by the Midwest Development Housing Fund (MHDF).  PRIORITY PROJECT, LOFTS @ 505, OVERVIEW This proposed project will be a revitalization of the 505 building on Main Street in Downtown Fremont. The building is just over 30,000 sq. ft. and was originally built in 1912 for First National Bank and office spaces for professionals. Downtown is the City’s historic center, housing the Dodge County courthouse and several longstanding cultural, commercial, and civic buildings. As in city centers across the county, new commercial activity has shifted to big‐box retail outlets and strip malls outside of Downtown. This transition has occurred over many years and warrants regeneration of repurposing of Downtown. Given its central location among the City’s well‐established neighborhoods and its proximity to Midland University and Metropolitan Community College, Downtown is well suited to cater to residents and students, as well as regional visitors and tourists. The nature of the businesses and the types of activities and attractions must appeal to all sectors. As of today, it has been sitting empty for almost 10 years and is becoming a major eyesore to the downtown. We believe the highest and best use would be mixed‐use with workforce housing units in the upper stories and a commercial tenant on the first floor. A housing study was recently completed showing that housing in downtown should be a priority and the Downtown Revitalization Study called the 505 building a catalyst to enhancing the downtown. We are excited for the opportunity to partner on this deal and see this building come back to life encouraging a downtown lifestyle that currently doesn’t exist. Many communities across Nebraska have seen this live, work model enhance the community. The City of Fremont is very supportive of us submitting this project knowing that Department of Economic Development recognizes the need of smart growth which takes innovation and creative solutions to address our housing shortages. The architect Alley Poyner has put together plans for the upper housing units, and they were able to lay out a total of 24 units on floors 2‐5 with a mix of studios, 1 beds & 2 beds. The units will have all new energy star rated appliances and windows with smart home features such as nest thermostats helping reduce resident utility costs. There will be on street parking and the City of Fremont owns a parking garage across the street that residents will be able to utilize. We feel this proposal strongly meets the needs of the DED RFP based on the following criteria: ‐Adaptive Reuse – Currently vacant downtown building that would utilize existing infrastructure ‐Energy Efficiency/Sustainability‐All new energy star appliances and windows with nest thermostats ‐Walkable Communities – The building is in the heart of downtown encouraging live, work & play ‐Workforce Housing – These upper story units will provide the community with affordable housing options in downtown that currently don’t exist today The permanent financing will also be provided by USDA 538 loan program, which also requires affordability to workforce housing but allows for more favorable terms that include interest rates, loan amortization and loan to value ratios. Rent for individual units is capped at 30% of 115% area median income. Average rent for an entire project (including tenant paid utilities) cannot exceed 30% of 100% of area medium income, adjusted for family size. 1  DESCRIPTION OF COMMUNITY HOUSING NEED A total of 24 new workforce rental units would be created with four of those being NAHTF units. Just recently GDFC had a Housing Study completed by Hanna Keelan Associates that identified the following: “Households throughout Dodge County are “Cost Burdened” and/or have various “Housing Problems”, as defined by the Department of Housing and Urban Development. A cost burdened household is one paying 30 percent or more of their income on housing costs, which may include mortgage, rent, utilities, and property taxes. A household is considered to have housing problems if the housing unit is overcrowded (more than one person per room) and/or if the household lacks complete plumbing. In 2017, an estimated 1,985 owner households in Dodge County, or 19.9 percent of all owner households, are cost burdened or have housing problems. By 2022, this number is expected to increase to 2,066 households. Currently, an estimated 1,720 renter households in Dodge County, or 32.6 percent of all renter households, are cost burdened or have housing problems. By 2022, an estimated 1,802 renter households will be of this status. The increase in the number of cost burdened households is related to the low supply and high demand for housing in Dodge County with affordable prices. Participants of the County‐Wide Housing Listening Sessions stated that the development of housing in the County, during the 1980s and 1990s, had not kept up with the local demand; the County and Communities have been playing “catch‐up” ever since. Adding to the issue of cost burden are two key factors: 1) most of the new rental housing being developed, today, does not meet the affordability needs of persons and families with the greatest housing need, and 2) housing that is available for purchase or rent is either severely deteriorating or dilapidated and in extreme cases, experiencing health and safety issues such as mold, inadequate utilities, and deferred maintenance. It will be important that all Dodge County Communities, through 2022, take an aggressive approach to developing housing for persons and families of low‐ to moderate‐income, especially with the projected influx of employment opportunities relating to the Costco chicken processing plant currently under construction. The County’s housing partners will need to plan and implement a workforce housing initiative. It should be noted: That a Downtown Housing & Redevelopment Initiative for Fremont, directed at increasing the availability of housing opportunities in the Community’s Central Business District. Target up to 54 total units, including 18 owner and 36 rental units by 2022. The ED “Boost” scenario would increase the Downtown Fremont housing demand to an estimated 72 units, including 24 owner and 48 rental units. The rehabilitation of second story units in commercial buildings should be planned and implemented.” The priority of the City and GFDC is to create new housing opportunities for the “missing middle”, which will help us attract and retain talent for our community to flourish. Especially as we see current employers and new companies wanting to expand in our region based on its proximity to the Omaha market. These units will help us meet that goal and keep households from being cost burdened by rents and utilities. 2 Downtown Fremont, 505 Building Location 3 MAIN FLOOR PLAN 2nd FLOOR PLAN 3rd-5th FLOOR PLAN 4 SOUTH FACING FACADE ON 5th STREET 5