City Council - Regular Meeting

All right, here we go. Good evening, everyone. Welcome to the North Plat City Council meeting here on Tuesday, January 20th, 2026, of course, at 5:30 p.m. We're calling the meeting officially to order. Oh, we have no one for an invocation. Do we have a volunteer? Mr. Raker, would you grace us with an invitation, please? Lord, we thank you for the many blessings that you've given us. The biggest blessing you've given us is yourself. Thank you for the hope that you've given us. We just Christmas light of the world. are now shining. Lord, I pray for our country and people as human beings. Thank you to our community, community. People are working hard. I bring to you all of us here on the council tonight as we deliberate and we discuss our thoughts and actions and do and say to you. Amen. [laughter]

I pledge allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. Thank you, Ed. Okay, Angie, the roll call, please. Here, here. Here. Lucas here. Here, here. Nicknet here.

Thank you. Current copy of the open meetings act is posted on the wall at the back of the council chambers. Meeting procedure. The public may address specific agenda items of pleasure of the mayor. If recognized by the mayor, please identify yourself by stating your name and address. Please address the council through the mayor and limit your remarks. We respect our city employees and request that any complaints or criticisms of employees not be aired in the public meeting. Concerns about employees should be brought to the attention of the city administrator or the mayor. Individuals in violation will be declared out of order. It's exciting. We have some awards, accolades, and presentations tonight. And it's uh largely our sanitary sewer system. So once again, I think we may have one of the most awarded sewer systems in the state. Northflat Wastewater Treatment Facility Scott Wilbur Award. This the Scott Wilbur Award is presented to wastewater treatment plants across the state of Nebraska. They are judged based on the plant's general appearance, upkeep, and the knowledge of the staff that operates it. In the past 19 years, the Northcl wastewater treatment plant has been awarded the Scott Wilbur Award 19 times, three of which have been bestin-class. Safety Award. The safety award is presented by the Nebraska Water Environment Association. It is based on the employees safety record, accident prevention, and employees participation in safety. The wastewater treatment plant has been presented with a safety award 15 times, two of which were the gold safety award in 2005 and 2011. Now, if you don't think there's a lot happening at our wastewater plant, you would be wrong. Daily average flow, 3 million gallons per day. monthly average flow a little slightly over 90 million gallons and that makes the yearly flow let's see how many easy rows is that a little over a billion gallons. Okay. All right. Uh they were featured in the treatment plant operator magazine in August of 2018. The lab technicians are required every year to pass proficiency testing for the state of Nebraska. So

let's congratulate our wastewater [clears throat] free folks. You all need to come up here now. That's what I do.

[laughter]

We'll follow up tomorrow. Thank you all. Congratulations.

[clears throat]

You may not consider waste water very important all the time, but when it doesn't work, it becomes the most important thing right away. All right, moving on to [clears throat] the consent agenda. All matters under the consent agenda are considered by the city council to be routine and will be enacted by one motion. Any city council member may, however, remove an item from consent by request. Excuse [cough and clears throat] me. This is a little bit long, so I'll be reading for a while. Number one, A, approve the minutes of January 6, 2026. B. Send the application of CD Liquors NP LLC DBA City discount liquors for a class D liquor license off sale only for their location at 821 North Jeff Street to the Nebraska Liquor Control Commission with no recommendation. C. Approve the application by Skyline Liquor for a special designated liquor license on February 6, 2026 from 5:00 p.m. to 7:00 p.m. at Dayring Rank, excuse me, Daypring Bank, 410 Rodeo Road for business after hours. D. Approve the application by Skyline Liquor for a special designated liquor license on February 20, 2026 from 5:00 pm to 7 pm at Adams Bank and Trust 121 South Jeffers for business after hours. E. Approve the application by Nebraska Land Days, Inc. for a special designated license on February 28th, 2026 from 5:00 p.m. to 12:00 a.m. at the DNN Event Center, 501 East Walker Road for Buffalo Bill Birthday Bash fundraiser. F. approved the application by Big Red Liquor LLC for a special designated license on March 14th, 2026 from 1:00 p.m. to 1:00 a.m. at the DNN Event Center 501 East Walker Road for MMA fights. G. He approved the application by Eagle's Fraternal Order 28:39 for special designated licenses on March 27, 20, 2026 from 11:00 a.m. to 1:00 a.m. March 28, 2026 from 8:00 a.m. to 8:00 p.m. and March 29, 2026 from 8:00 a.m. to 8:00 p.m. at the DNN Event Center,

501 East Walker Road for the Eagles State Pool Tournament. H approve the applications by Knights of Columbus 1211 St. Patrick Council for a special designated license on February 20 and 27 and March 6th, 1320 and 27 from 4 p.m. to 9:00 p.m. at St. Patrick's Church Parish Hall at 4:15 North Chestnut Street for their Lenton Fish Fries. I approve requests from Adams Bank and Trust, Dayring Bank, Equitable Bank, First Interstate Bank, First National Bank of Omaha, Hershey Bank, Lincoln Federal Savings Bank, Nebraska Public Agency Investment Trust, NP AIT, Nebraska Land Bank, Sand Hill State Bank, Union Bank and Trust, Wells Fargo, NA, and Western Nebraska Bank to be designated as depository banks for city funds for 2026. J. authorized the mayor to sign the resolution and policy plan for the updated title six non-discrimination policy for 2026 through 2029 from Northplat Public Transit and submit the approved resolution to the Nebraska Department of Transportation. Mr.

Mayor we approve the consent agenda as presented.

Second motion by RER, second by Vols calling the question on the consent agenda. Consent agenda is passed. Thank you everyone. Moving on to the regular agenda. Item number two, authorize the mayor to sign all necessary documents with Motorola for door access and camera system upgrades for all city buildings using Sourcewell contract pricing. Mr. Mayor, I authorize the mayor to sign all necessary documents with Motorola for door access and camera system upgrades for all city buildings using Sourcewell contract pricing.

Second. Motion by V, second by Flanders. Uh Lane, you want to talk through this a little bit?

So, this is to upgrade all of our door systems, our entry systems, and our camera systems throughout city buildings. Originally, we were looking at doing a couple buildings per year to um kind of stay within budget, if you will. And once we got a contra or a pricing um for the complete system, they offered us five years no interest to pay it over the five years. So, but getting everything done this year. So, instead of having to have a peace bill system where we had some old and some new mixed together, this allows us to do everything at once but pay for it over five years um and work it into the budget without any budget. um constraints. Any questions or comments? Ty.

So, thinking about that, does that does that become a lease at that point of the equipment or is it a loan contract? I wonder or how what how's the

we have the representative in the audience or Kevin, one of those maybe could answer how that works. dick soap with with well um no it's not so it's a uh the way it's set up through source well um it is a stated contract and they are putting a one time percentage on the actual quote u to be paid over so it's not compounding interest whatsoever so it's not a lease after five years the city owns all the equipment and uh so and So, so the I'm sorry, may I go ahead ask questions? Um, so we own it at at the end or we from the day one. So, it's

over I don't see the rec center on here. The rec center portion is built into the new construction and so it's separate from this piece. Okay. Thank you. I think the same possibly with Cody pool as well. Cody's on you. Maybe the wa new and some of the wastewater stuff. Maybe some of that's built into the design and build and not standalone since these are all going on at the same time. Okay. Will implement the same system or Yes. Okay. So, it's hooked up to the same network case here. I don't know. [laughter] Okay. Rod, you had a question. I think it just got answered. Okay. Other questions? Ed.

Mr. Mayor, thank you. Did I understand you? Did you say there is a consent that's put on or go to source state contract. Yeah, there's no compound interest over the year. Um so it's it's a way that most of us would want to buy a home or a car. Um but over five years we were able to spread that out well. They say that you're talking

no to have no rule hold the bill for five years. I have another question I guess regarding the 50. What's different from what we currently have?

What we currently have is pipe vision primarily uh with the exception of library sheltering. Uh those systems back in 2018 were were deemed uh by federal government not to be used because of Chinese backing through the DA technology company. And so, so those are actually no longer to be used within federal and uh state government building. So, so those are becoming obsolete and you could face penalty of future funding from the federal government if they continue to be used. The what's going to be used today is through morals moral owns vigilant uh much like what your uh your police use for for cameras that they wear on themselves and sheriff probably the most likely Motorola and so the vigil system can synchronize and connect any of those down the road as well the components of of what you're supposed to where do those components come from

they are some Taiwanese there are some uh Japanese as well or Chinese as well is just not part of the GA technology group and has been authorized through the federal government and just real quick this probably too much information but what are we buying here? So, we're buying cameras and like door. Is there a key punch card or something for employees to get in and out? What is this whole system entail?

Good question. So, uh so every building that currently has cameras today, we're either going to replace the cameras with new cameras or we're going to be moving cameras. Um transit building as an example. We've got cameras on all four sides. We're going to move those to the corner and put multi-ensor cameras there so you get better field of vision for uh the three lenses and one camera for one drop. Uh you will get HD um or HDI for your door access to get in and out of the buildings for employees. Um and every building is going to have its own NDR server to store um all the all the video and you can view real time. So the uh each building, if a building we talked about this morning, if the building were to be wiped out through a tornado or whatever, all the other buildings will still have the ability to report. Um and then all all the buildings are connected to the 500 megabit ring, fiber ring. And so from any location, you can view all of the cameras within the city.

Okay. And then are there access pads with this? Are you doing the locking systems or No, we are. Yes. Part of that is the card readers. Okay. So, all the card readers that are on the buildings today will be upgraded to the new card readers. Okay. For access controls library, we're get those indoors connected as well. So, the employees come in and out. Okay. Thank you, Nick. Is there going to be some sort of service package with this or is this just installation and equipment only?

Once you purchase it, the equipment comes. It's a little bit different than than some other technologies. You get a service agreement with the equipment off the bat. Um, and it's unlimited uh time to call in for uh for training uh for anything else. Um there are upgrades that go on on an annual basis that are pushed out as well. Other question Ty I guess back to the understanding the budget. So did we did we have some money for the first stage of this in this cycle back to the understand

the plan was to take it out [clears throat] of the contingency fund. Did we did we have somebody the first stage of this in this cycle? So, so the doing this in this year wasn't wasn't planned or we had only planned pro originally we' only planned transit and possibly city hall and now basically with the numbers they're real close to what we would have had for that first year that

anyway but now we're getting everything done at once instead of having to have multiple times coming back to install and having different buildings on the old system different on the new. Just a suggestion not to prolong this, but I think I would just make sure that Don's comfortable and we have a really good understanding of that contract because we got to remember we got to account for that in audited financial statements and I still don't know if it's a loan or a lease or a rent to own or a I mean no idea how you'd account for it seems kind of vague on all that. And then if that financing cost is more than what we're paying on our warrants, we probably ought to examine that too. So again, I'm not trying to hold anything up. think it's a good plan, but just I think those are things that should be looked at.

I think Oh, sorry. Go ahead, Lane. With your with your motion where it's um authorizing the mayor to sign all necessary documents before anything signed, we can make sure all those Yeah. questions are answered. So you mentioned that part of the contract fees I believe is that just part of the contract.

There will be some fees down the line for um is there any any upgrades um smaller upgrades or are part of the part of the actual cameras themselves and NVR that are pushed out automatically? But then other upgrades, if there are some some larger enhancements that they're doing to the cameras or systems themselves, uh there may be some those fees are are nominal compared to what with a camera or any any other type of system with they are staying up to date and current with technology and what's going on AI and everything like that. So

optional. They are absolutely there. Thank you. Other questions or comments? Seeing none, calling the question on item number two. Item number two is passed. Item number three, first reading an action to adopt ordinance number 4243 to amend section 150.035 to the code of the city of Northplat relating to ice and water shield. Lane, would you read the ordinance, please?

Ordinance number 4243, an ordinance of the city of Northplat, Lincoln County, Nebraska, to amend the code of the city of Northplat by revising chapter 150, section 150.035 035 entitled international residential code IRC adopted by reference within title 15 land usage to provide that this ordinance shall be made a part of the code of the city of Northplat Nebraska repealing all ordinances or parts of ordinances in conflict here and providing for the effective date and publication thereof.

Mr. Mayor, I move to adopt ordinance number 4243 to amend code 150.035 of the code of the city of North Plat. Second motion by BS, second by Dy. [clears throat] Sorry, we're having a little problem with the microphones. Can you guys hear me out there in the audience? Okay. Okay. It's not going into the recording for some reason. So, that's why we're going back and forth here. So, okay. Um, Communer, would there be some reason reason to wave the three readings on this? I I think that would be helpful. I was going to ask Lane to kind of explain what's going on real quick here. So,

be helpful. Um, we've had some So, we were when this was really originally adopted, you have the option of putting no or yes if it's required for the ice ice barrier. And um apparently some a lot of our roofing contractors have had some problems getting some insurance companies to pay claims because we had put the no on there. And so by putting yes on there, it should be a lot easier for them to get the claims. This just makes it a little bit um I guess maybe Pete could actually explain exactly what the insurance companies are looking at on that. But it should help us as far as contractors getting getting the insurance claims paid. If you don't mind, Mr. Mayor. Go ahead.

Yeah. Basically, an insurance company will pay for what's on the roof already, like kind and quality. Um, upgrades would cost the insured more money unless per code it is in the codes. So, with us putting this in there, this will aid our insureds in the city all all over to to allow for ice and water shield ice shields to be put on roofs at no cost to them. So, that's basically the gist of it. Thank you. [clears throat]

Uh the waving of the three readings, no one's going to be putting on roofs in the next three months probably, but I don't care. We can wave the three readings if we want to. And I would make a move motion to wave the remaining required readings on ordinance number 4243. Motion by BS. Who is a second?

Ed. Okay. Uh second by RER. Any discussion on the motion to wave the three readings? Okay. Calling a question on the motion to wave the three readings, please. Motion passes. We now have an amended. Potential approval in one reading. Any other discussion on item number three as amended? Seeing none, calling the question on item number three as amended. Item number three passes as amended. Okay, moving on to item number four. Third reading and action to adopt ordinance number 4205 to create paving extension district number 840 on proposed Francis Street from Devco Avenue to Bsentennial Avenue. Lane, go ahead. Ordinance number 4205, an ordinance for the creation of paving district number 840 on proposed Francis Street from Devco Avenue to bsentennial Avenue in the city of North Plat, Lincoln County, Nebraska, and ordering the construction of street improvement therein. Thank you.

Number 4205 extension district number 840 Francis Street Avenue.

Second motion by Flanders. Second by McNe. Okay everybody, just for clarity this is the item that was uh tabled last in our last meeting because council Garrick had some questions about how um the taxes would be handled. So, we want to make sure we clear those up. And to that end, I've invited some folks here to offer their expertise. And also, I put together a quick presentation. So, well, it may not be quick. Uh, Angie, would you switch over? I'm going to attempt to sit here and do this. Hopefully, my eyes will cooperate. No, we do not want to restart for Windows updates right now. Be a productive use of our time. Uh like many anything when you start talking about tax increment financing, it get complex really fast. And then when you add in the street assessment, it it can get even muddier. So, this is an an attempt to clear that up. Um, Councilman Lucas helped me to develop kind of a tiff model that we're going to talk through. This is not intended to answer every possible question you might ever have about tax increment financing. So, don't think for one second that's going to be the case here. It's just going to really talk through how the money flows on one set of properties. So, hopefully you guys can see the screen there. I'm going to make it a little bit bigger here. And there we go. Okay. I apologize for my limited artistic ability before we get started here. It's not very good at all. Nice quote from Mr. Buffett. Price is what you pay and value is what you get.

And as you think about how tax financing works, it's kind of an somewhat of an investment in the future. Uh [clears throat] this is uh just some pictures out of the documents on the Fritz Farms development which is the development that's out on East Phip Street. We've been talking about these streets. The one on the left is the housing development or mostly housing development that's underway right now. If you've been down Philip Street very far, you you can't miss it. Uh and then if you look at the right, that is the other oh, I don't know, twothirds of the development might be the best way to say it. The piece on the left sets uh roughly if you were to combine the uh the drawings, it would set right above where the word development is on the other drawing. So the yellow underlined street there or yellow line street on the right side is the stretch of Francis Street that we're talking about for this particular paving assessment. And to orient you to where the where this is in town, uh directly north of that uh the left edge of that yellow line would be our post office out there in the industrial development area. Oh. Oh, that didn't come across very well. Okay, looked better on my computer monitor. Sorry, everybody. Um just a couple definitions. uh tiff bond is the official document used by the community redevelopment authority that provides for theo for the holder to receive split property tax funds. A tiff bond itself is a piece of paper. It's worth the three cents it took took to print on and that's about it unless you have a way to monetize it. So, um, TIFF bond interest rate, the interest rate set in the development agreement. And TIFF bond monetization occurs when the holder of a TIFF bond funds eligible expenses by borrowing money from a bank, an investor, or a combination of banks and investors. Developers loan payments are funds generated by the increase in property tax value resulting from development and are used to repay the

TIFF bond monetization borrowing. Okay, this will become relevant a little later on. [clears throat]

I wanted to do kind of a graphic display and I've been wanting to do this for years on where or how tiff money is generated in a certain piece of property. So, if we assume, and this is you'll see a larger spreadsheet that has the same information, but if we assume that a piece of property or five lots valued at $5,000 a piece, creating a $25,000 uh amount of money, the original land value in the first upper left corner piece of that uh the number there. And then if we assume that we build five houses each worth about 230,000 a piece on it, that increases the future land value in the next year down to one a little over 1.2 million because you've got the property and then the house. And you take it times the levy and you can see in the original land tax payment when it had nothing on it, it was just bare land was generating $437.50 in property taxes. when we build five houses on those five lots, each assessed at 230,000. I know it's on the next spreadsheet. I forgot what the amount is, but we'll see it in a second. That those taxes would then be generated at 21,700. So, that is the the amount of TIFF revenues generated. Here's a graph that kind of shows that as well. And if you see the little red line across the bottom, that's the $437.50 50 cents a year that's that's generated. That amount of money continues to go to the taxing entities, the city, the schools, etc. throughout the life of a tiff bond. The area that is created by the big yellow or goldish line is the revenue that then goes eventually to t to pay off the tiff bond. So that's a graphic representation of the grid that I just showed you. Okay.

Now, I just need to apologize. I'm an IT guy, so I think in logic and process. So, I'm sorry, but I'm going to drag you through kind of how this money works. And this I just want to say this is roughly the model of Austin's timeline here, but these dates are just meant to be in order. Things do not actually occur necessarily on the dates here. They're just kind of representative of the typical time frame. So, please don't print in the paper, Todd. The mayor said on this specific day this stuff h because it's not how it occurs. This stuff is is kind of messy and it doesn't typically fall on those specific dates. Um the CRA completes a redevelopment agreement with the developer. redeveloper begins construction on infrastructure and in this example five row houses. And then we move from the end of 2026, excuse me, the beginning of 2026 to the beginning of 2027 where construction is completed completed in 2026 and the property development is assessed by the county in 2027 on the stuff that was built in 2026. These dates are important, folks, so keep up with the dates, please. And then we get to the redeveloper begins construction on another five additional houses. And and in a neighborhood development, that's usually how it works. They they start one block of them and then in the next year they'll start another block of them. So that's why that reference on the end of January is there. And then in November of 27, the levy is set in the fall. It's usually in November sometime by the taxing entities. So, as you're all aware, the city, the county, the schools, everybody makes their levy request and then the county officials set the levy for the entire county. It generally occurs in November. That's why that 11:30 date is relevant in there. Property taxes are assessed by the county for new construction in 2026 late in 2027. So, that's when you all get that tax statement because remember,

you're paying your property taxes a year back. So, it's 2026 when we pay our property taxes this year, we're paying for 2025. Okay? And then on in May of 2028, which is now a little over two years from when the redeveloper started construction, the redeveloper then has to pay the first half of the property tax payment for what was built in 2026. Okay? And then at the end of August of 2028, they would pay the second half of the property tax payment for what was built in 2026. Now, the redeveloper may choose to pay it all at once. That would be their choice, but ultimately there would be two separate payments. Okay? Then we jump over to September of 2028. Lincoln County forwards the property tax proceeds amount to the city of North Plat. Now, in our example, it's that fir if this worked perfectly and five row houses and they all they all were all done perfect in the model, the county would be sending over to the city $21,700 less the $450. That's the amount that would come in. The city then takes that amount of money and forwards the property tax payment to the bond holder, which is typically a bank or investor at this point. That's 99% of the time that's what it is. Property taxes. So then we go to the end of 2028. Property taxes are again set assessed by the county on the new construction that occurred in 2027. Remember I said they usually build one part of a neighborhood and then they start building a second part of the neighborhood. So in 2027 there's more new construction. Redeveloper begins construction on more infrastructure and five additional rowouses in 2029. early 2029 redeveloper pays the taxes in May and at the end of August or maybe all at once

and then the county again sends the payment this time for the taxes in 2027 to the city and the process repeats. You'll be happy to know I didn't do 10 more slides like this, okay? because it's it's not bor it's a boring it's not exciting stuff but that's basically the flow of the money and and this is all a very long process to point out sort of two things specifically the property taxes are assessed on 1231 2027 it's the almost clear to the right on this picture right here for the construction in 2026 the redeveloper pays those taxes in 2028 eight, they get a refund or the or the money goes to the bond holder, again, typically the bank or the investor in late 2028. We started construction at the first of 2026. So, all of the money that it took to build the infrastructure and those those first five homes was expended in 2026. and they're starting to recover a little bit of it about two years later, two and a half years later roughly, although the construction would not have been done in January of 2026. It probably finished somewhere in the fall. And that's how it works. So anyway, I just wanted people to kind of understand the timeline of and how the money flows. Oh, that's a big eye test, isn't it? [sighs and gasps] Okay, this is the model that Tai did for all of us and um what it shows here is the construction of five row houses and how the property is the property and the con and the construction levies increase or excuse me the levies increase over time because the value of the property goes up.

Excuse me. Levy doesn't increase. The amount of money derived from the levy goes up over time. And that is the columns that are just two and three to the left of the yellow area. The yellow area shows what the tip bond is doing for balances throughout this time. And I can go out of here and zoom in on this and and we'll take questions. We may have to refer back to this. Um, what's interesting about this one, just want to make it clear, this is five row houses with a 20-year tiff if everything was perfect. Okay. Based on reasonable uh construction cost and assessments and things like that. And this is I would fair to say, Ty, this is kind of how the banks look at this.

Yeah.

Yeah. And we used a 5% increase in tax assessment value every three years because the history in our area has been for them to look at a house's value approximately every three years. Okay. Thank you. So here's here's the summary of all of this. And I apologize everybody. I should have printed this out for everyone and my day just got busy. Um the [clears throat] number to look at and I'm going to exit so I can zoom in here just a second. This is the number I want to look at. Is this 37,376? Go through all that that massive spreadsheet and all those calculations and all the payments and what this works out to as loan proceeds per house. So this is what the redeveloper could actually get from the bank to contribute to building five row houses with all the infrastructure and all of the associated vertical tiff and all that. And in this perfect model and again it's perfect. So it's not going to be exactly like this in the real world. we would come up with $37,376 per house that the developer would be able to expend towards building this house. Now, Brent, per per linear foot, what is infrastructure on a on a neighborhood street with water, sewer, storm sewer, etc. going to cost on a typical neighborhood street, not a arterial? But what [clears throat] we need um on a budgetary type of estimate is a lot of variables. A lot of times we use about $1,000 per se.

Okay. Thank you. could vary a little bit if the developer had a better deal with the in installers, but it's just as an average that's about what it's going to be. So, my point in all of this is to point out that that amount of tip proceeds per house that can be borrowed to build the house works out to about what it costs to install the infrastructure. Okay, I'm going to go back to the presentation. Okay. Ty, do you have anything to add? The the rest of the numbers on here we can talk through, but it's it's very bankerish. Ed's already trying to fall asleep over there, so we might lose him for good if we go into the bank. But if anybody has any questions, we can come back to it. So,

the only thing I would add is that what we were really trying to solve for was at what amount will that tiff bond payments for those five houses for that phase pay back the borrowing at basically a neutral number. So at the end, the developer isn't short of having to pay off the loan under this scenario and they aren't there isn't a windfall at the end of it from the tiff outside of that. So we were trying to solve for something neutral and of course that assumes that the mill levy stays the same. And then Brent's number I don't think would include any land value or cost. Is that correct? So that's something to keep in mind as you're thinking about it too.

Okay, moving on. We have another one. This is for 10 single family homes. Same calculations, larger numbers basically. And this is for 10 homes rather than five row homes. 10 single family homes. So this is what most of us probably live in today. Just notice that down here, which is that year 20, there is not a zero. And that means that again, this is a perfect scenario. So it probably would reality probably would not be here. But in this one, the tiff bond did not pay off. And so the developer would be $29,547 short on the recovered amount or about $30,000 short in this particular model. Okay. On the t on the tiff. So [clears throat] this one zoom in again. It did it for me. Assumes around $46,400 in this model per house because it's a single family home. So there's going to be more eligible costs. Therefore, it's a larger amount of money rather than a row house which is typically smaller and less money. That's the the main difference. Okay, moving on. Now, we're going to start talking about paving assessments. Paving assessment districts. And again, this looks really good on my computer monitor. Does not look very good on these screens. Sorry. Paving districts are special assessment districts for street work. Cities use them to pave, repave, improve streets and char and charge contiguous property owners for the paving infrastructure. Payments on special assessments may be certified as an eligible tiff cost. Okay. And this this item number four that we're talking about tonight, uh this is a piece of that drawing. Francis Street is right above the red box. It says

assessment area. And what's proposed in this is uh the entire cost of that street being assessed to roughly that area. This is just me drawing a red box. This is not a surveyed box that is accurate. This is just at about that area. And um that's what's being proposed tonight so everybody's on the same page. These are uh this is a page from the redevelopment plan talking about the phasing and it's page five of 20 in the redevelopment plan amendment is what this is from the highlighted areas just point out phase one which talks about several several items involving East Phillip and Mabe. It also mentions in the highlighted area the installation of approximately 3100 linear feet of roadway. And what that is is that 3100 feet basically starts at the east edge of Brian Street and goes to just behind the post office roughly and kind of in a straight line and then curving down. And then phase two, which is the area that we're discussing tonight in item number four, um talks about in installing utilities and roads and such on roads two through four, which are kind of on the east end of the development, but also in phase two. It says, "This phase also includes the installation of approximately 2600 linear feet of East Francis as illustrated in exhibit B phase 2." Um, and so that that 2600 ft is approximately the distance of the area we're talking about assessing. That's what's in that yellow line that we that I showed you early in the in the presentation. It's that piece of Francis Street right there. Again, give or take a few feet. So this is right out of the redevelopment plan. And notice that it says re in phase two. It repeats the language in each of the phases, but it says redeveloper will build and pay for the installation of

roads and utilities for roads to solve phase also includes approximately 2600 ft, etc., etc. Okay, now we're down to some expert testimony here real quick. So, if I understood Councilman Garrick's question correctly, and his his concern from the last meeting was that you could we could end up in a scenario where a purchaser of property would end up paying off an assessment, which would be a significant number in this case, could very well be um or very likely to be, I should say, and then also have to pay property taxes, which would then be used or should have been used to pay for the street in the first place. Did I get it right? Okay. So, we had to do some research. I think several of us were kind of were not following necessarily what Councilman Garrick was saying right away, but after a while, we got there. And so, that's why I called in the experts was to kind of clear all this up tonight so we make sure we understand what's what could possibly happen and what's real here. So, anyway, to that end, I'm going to ask Lindsay Peterson to come up to the front here. Lindsay is the owner of one of our local title companies who deals with the sale of property many, many times every year. She has multiple locations across the state. So, Lindsay, I've asked you these questions kind of before. So, I Can you see it on that monitor right there? Okay, that's good. Probably looks better than this one. Okay, that's good. Uh, anyway, so I think you understand the scenario. So could you just tell us from the closing company perspective how would an assessment and a tiffen agreement those things how would those be found in your process so that a potential buyer could not be shocked duped surprised whatever by an assessment

developer they're selling the house to an individual then we do a search of that property and any and all of a incumbrances against that property. So if there were mortgages, um rented way and special are always shown as a on that property. Um then then as part of our closing process um at the closing in order transfer title um a warranty is used and a warranty is what the seller gives to the buyer that says I'm transferring the property to you free and clear. Our job as a title company is to make sure that that actually happens and and that we take care of the uncurrences special. So at the time of the closing the funds that subtracted from like the seller getting seller is the one that pay off the entire special assessment at the time of closing and so the buyer isn't and paying for it. Again, they're paying the purchase price, but then that incumbrance just like if just like if the seller had a mortgage um you would be paying a special assessment that mortgage and that come out of sellers at that point.

Could there be a case where that district sticks with those with the seller with the buyer?

Um maybe one example would be like if the developer sold to another developer and and that developer wanted to RA they didn't negotiate that in the purchase price. So maybe in purchase price is a little bit more reduced because the buyer is going to continue to pay that district cost. Um I I know Austin has been working with reputable realers in town. Um I mean do I think that there is a remote very slim possibility that if somebody wasn't using a car company or whe um potentially could that sneak by on a quick deed that that's not um I mean it's not 100% uncertain but if they're going through the process which I know they've been doing I know they've been working everything that has been paid off. Um, now now we have also done like with commercial properties where perhaps maybe they've also negotiated in in a purchase price that the purchase price is lower because they're going to continue to pay off. But but that's again if you're going through the title company, we've got the commitment. We're showing you what's on the property and and so at that point um that the buyers are going to be aware of that being a part of they be aware that that should have gone to their tip proceeds. So So what you're saying is they're going to be aware which I understand appreciate that but if it should have been paid off at tip piece I still have concern. So, so just just just a second, Lindsay, let me just So, just remember that in order for the redeveloper to claim that they paid for the street, in order for them to turn it as a and as a TIFF eligible expense, they have to have paid for it. So,

they can use other tip eligible expenses besides the street to get their 37 million. Well, but they would have to build something to do that. So it would still be a benefit to the overall scenario. So yes, you you you can move things around inside of a tiff bond. Yes, that's true. But they would have to account for it somehow. So some positive product would have to be created in the event that the money was used differently. So but we have we have some more

to that. [clears throat] So on for example single family home if somebody's buying in 2026 the 2025 tax by the seller the 202 they're not going to be getting double the buyer not going to be getting

well they are paying They're going to have to pay the real the seller's going to have to pay the real estate taxes up to the point of the sale and then after that the buyer is paying whatever the real estate tax the value of the property, right? That that has nothing but the payment district stays with paid off at the time of closing. Correct. Okay. If if that's a true statement and the pavement district doesn't move forward then I goes away. I just haven't seen anything in writing that says

and that's exactly what happened that the city did a really good job of separating per partial but her parcel is um that part of that district and so when we close that that piece gives me just like if there's like a water hooked up that sometimes we'd have to pay that to make that clear it might be the rest of But the one sold that there's no additional district that's being paid on.

Yeah. Yeah. Correct. That percentage of I do understand that there's a map. That's my concern. How is that? Hold on.

We'll get there in just a second. Okay, sorry. Okay, Lindsay, thanks. We'll hang around if you would in case there's some more questions. So then that naturally um brings up a couple more things, which is how exactly does this work from the seller's perspective? And so it kind of answer asks the question, in what manner does the redeveloper, which is the seller, uh intend to resolve paving district assessments? And then what financing provisions are required by the banks and financeers because they're involved in all this to make sure that the property is cleanly transferred. So Austin, would you address those questions please?

Going back I think it was the second or third slide where he showed the future phases of the development. Um, right here. Uh, a couple more back. It's a little bit more clear. You want the pictures? Yes, please. Okay, there you go.

Yeah. So, the left hand picture is the first phase. So, we're only my team's only doing the single family development. We have a co-developer that's looped under our same redevelopment plan that's handling all the multifamily. So, our first phase is on the east or right side of the lefthand photo. Um, I think it's probably appropriate to get into a little bit mechanics on how we plan on doing this. So, I don't know if everyone can see the numbering. Road 8 9 10 11 is right below the yellow highlighted section. So, that's going to

be phase. So mechanically what we plan on doing is proportionately spreading the even though the assessment is specifically on certain portions uh on future phases we're going to start prepaying that early. Our plan is to try and get that paid off before we ever start building on where the current assessment is on utilizing a per square footage basis for the paving district. if we ever were to get to a portion of the current assessment, we would pay off um the lot itself that is needed. And this gets into the second question a little bit that the mayor had on the screen, but um from our side, we have Midwest Land Development, which is our infrastructure company and the company that's tied to the redevelopment plan. We also have a housing company. We have separate partners in both companies, separate financing in both companies. a requirement before I can even start housing construction on the lot with our housing company. Our bank requires a priority lean on that property. So, the bank won't even let me start housing construction unless we have a free and clear title that's provided from a title search. Um, so I I think it's a great question that uh the council member brought up. Um, I'm happy even put in writing that we won't even start construction until on on that specific portion of the assessment until that's paid for because that's a requirement that we have today.

It would make more if it was just writing clean real simple language. Yeah, I'm happy to do that. I don't know if that requires us to do an amendment through the CRA what that process is, but I'm happy to put that in. [clears throat] So, we'll bring up the attorney in a minute and he can tell us. So, okay. Thanks, Austin. We reserve the right to call you back, [laughter] Mr. Bacon, if you don't mind. Mhm.

Um I suppose the initial question right out of the b out of the gate is kind of um what's the best way to to guarantee that those uh in writing that the assessments would be paid three paving assessments would be paid off prior to uh a piece of property being sold. Actually pretty simple. cost certification. If you take a look at the bond in this case, it has a index on the back and the bond.

Please get in front of the microphone. Thank you. You have a tendency to wander so please. Sorry.

I do. Apologies. So, uh, the TIFF bond is like a draw note at the bank. So, if in a normal, uh, case, let's say that there's a $100,000 worth of street put in, they're not going to endorse, Don is not going to endorse that on the bond, on the draw note, unless you prove that you paid the $100,000. Okay? So the benefit doesn't go to the TIFF bond holder, his banker or himself, unless he's actually spent the money and then it draws interest. The way you do it with special assessment district is you don't get to claim interest or repayment unless you make the special assessment payment. You come in with a cancelled check, a receipt from the treasurer saying, "I paid the special assessment. Endorse it on my bond." If they don't do that, they're not if they don't write the check, they don't get repaid for that. Okay? So, they're not double dipping. Simple. developer has to make the payment period. If we want to put it in uh more more planer English, we can certainly do that as a part of a redevelopment contract amendment uh which I would recommend in this case because this started out that the developers are supposed to put it all in, pay for it all, and then get it back. This thing [clears throat] is really uh cooked up to be a pretty good deal for

that arterial uh because it gets there faster uh is a good deal for everybody and and uh will kickstart the development. So that process was not contemplated in the redevelopment contract. A proposed amendment is out there uh that's not been signed off that would require them to pay that. So, it's a fairly simple fix uh to make sure that there's the concern that you have is not there and that be required. And the penalty provisions under the redevelopment contractor are just uh staggering. They're liquidated damages. So, they can't do it in turn around without you taking the money back away out of the tiff bond. So

I understand the reasoning behind the district expedites the process and jump starts the project. It's it's win-win for everybody. Sure. I just want to make sure that the little guy who buys a lot of is getting you know taxed both ways. So if we could put some real simple language into that and you know that would that would completely remove my concerns. And that has to be blessed by the other lawyers, Mr. and and the redevelopment authority. So, everybody's got their bill. Yeah. The more lawyers you have, the slower it goes. That's right.

Okay. All right. Bill, you had something to add? Yeah. And and just to clarify that point, Mike, that that is an amendment to the redevelopment contract which includes both the developer the CRA and the city. So, all three parties would have to agree to it. Certainly, it's still to to Councilman Garrick's point. It would come back to city council for Yeah. You'll get you'll get to read the language and approve it. All right. Thank you, Mr. Bacon. Appreciate you being here. Okay, [cough] that pretty much concludes my presentation. Anyone has questions, I'll try to convince Ty to answer them. So, I'm just kidding. Or we'll get Go ahead. didn't account for time having a question.

You know, I don't I don't have the same concern because I live in a world where everybody's watching for those assessments. I I understand your concern, but I live in a world where you basically have to be a real fool to get stuck with a property. I mean, no lawyer, no realtor, no title company, no bank. Not to say it couldn't happen, but it's very unlikely. What what I think while we're thinking about all this, what we can't lose sight of is just making sure that by being this if we're going to be that stringent on that requirement that which it sounds like they plan to follow anyway, so maybe it doesn't matter that we're not shrinking the amount of property or collateral that's in our assessment district because that's still what I care about is making sure that, you know, in other words, if if if they want to agree that yeah, we're going to clear all the assessments but it's on five acres of property. Well, I'm more concerned that the 15 acres of property that should be assessed gets assessed. So, as we're as we're thinking about it, I I wouldn't want everybody agrees to it. I think that's great. Let's make that amendment. But if it shrinks the base of the assessment because they're trying to limit the properties that are agreeing to that, then we would shoot ourselves in the foot with that. So, I just to me, if we're going to do that, I think that's great, but we got to be really careful we're not shrinking our district as part of it.

Okay. Any other Nick? What they agreed to today, correct me if I'm wrong, the way I read today is um if the city puts an assessment on that property, that assessment is there until it is paid for. If they don't use the TIF money to pay for that assessment, then they won't be double taxed, right? So, if they leave that assessment on there and use that tiff money for something else, it's not a double tax. Is that correct? I I'm not sure I'm following you correctly. Uh so let I think I have a slide to address what you're asking about here. So hold on. Let me let me see if I can clarify a little bit. Okay.

So they have to have the receipt of that assessment being paid before um they can receive the tip eligible money. Correct. Okay, there we go. That's okay. That's what I was trying to get at. Okay. So if if they pay it and it's gone, then it's Then they get the they don't get the tiff funds unless they pay it. Correct. Okay. That's is Was there a slide in here that said that they are responsible for paying for that pavement district? Yeah. Already build right on there. Right there. Will build and pay for the installation. Yeah. So we we already have that in the redevelopment contract.

That's a picture of the existing redevelopment contract. So what are we wanting to add to this? Are we wanting to amend this or no? The the I think Mr. Bacon has some input since he's moving. So, and and if we do go to amend this, is this going to prolong this street? Well, it doesn't have to. So, I'll let uh Mr. Bacon answer here. So, that contract says that the developer is going to do it. You all change your mind and say the city's going to do it and charge them for that. that needs to be cleaned up and say and you will pay not stick it to some bushmuck. Okay,

we'll clean that language up a little bit. I guess my concern is trying to move this forward. Well, we can still proceed with this because all we're doing potentially is approving a district something we can get this uh amendment cleared up that nothing happens on the district for several months in the event that something goes haywire, we could can't [laughter] do it again. But we we do need Excuse me just a second, Jim. I'll give you the floor. But we do need to get this these streets out for bid uh because we're missing the prime bid construction season here. If we don't get it done fairly soon, we'll end up paying a lot more money for it. So yeah, uh Jimmy has something

I just wanted to address. I [clears throat] when the person like the the the title person talked about here, when you buy the piece of real estate, that's part of the lean search. They check whether the title is good. They would see that lean. That assessment has to be removed before they would close the sale. So any purchaser of that property will buy that property if they go through the proper procedure with a warranty deed free and clear. The only thing they would have to do is pay taxes in the future. That's all they have. But they could never be assessed for that street because that was paid at the time of closing. U that's important that you're worried about the small guy. They'll never get hurt by this

because because the the the assessment will be paid before they get titled with the property under this new deal. I would agree with your statement, but there's there's some potential liability, but the sounds like everybody's amendable to clean. They've done that for that's the way they do real estate transactions is they won't pay the the buyer won't pay until that lean is released. And so as far as that buyer's concerned, it's always released. Whether the tip bond is paid or not, once you get that title and get the lean release, whether the tip bond is paid doesn't make any difference to the buyer. That property is free and clear. That's an issue for us. That's what I'm trying to say. The small guy won't get hurt. That's that that's my concern. So

[clears throat] All right. Anybody have anything, Ed? Make a motion. We got a motion. We have a motion already. So, unless unless you'd like to to make an amendment of some kind. Okay. Everyone have their questions answered on this one. [clears throat] Angie, would you go back, please? I'd like to thank you for the clarification.

Yes. [clears throat] I was just going to say I appreciate the opportunity to let indulge me in in trying to answer the questions. I think it's always good when we have a strange question that we get all the facts. I'm sorry, not strange, but an unusual question that we that we get uh all the facts out there so everybody can kind of understand we're talking about because this stuff is complex. It is very complex. and to try to, you know, to Brad's point, we could we could have the best of ideas and make one wrong move and 10 years from now a bunch of people are sitting here goes, "Well, why did those idiots do that 10 years ago?" You know, it could happen. So, anyway, calling the question on item number four. Item number four has passed. Item number five, third reading and action to adopt ordinance number 4206 to create paving extension district number 841 on proposed Francis Street from Bsentennial Avenue to Newberry access. Laying the ordinance, please. Ordinance number 4206, an ordinance for the creation of paving district number 841 on proposed Francis Street from bsentennial Avenue to Newberry access in the city of North [cough and clears throat] County, Nebraska and ordering the construction of street improvement therein. Mr. Mayor, I move to adopt ordinance number 4206 to create paving extension district number 841 on proposed Frances Street from Bsentennial Avenue to Newbury access on third reading.

Second motion by BS, second by Dy. Okay, Brent, please. We're basically talking about the next piece of Francis Street which runs from bsentennial to Newberry. Is that correct?

That is correct, Mayor Council. This next portion we've kind of labeled it is the grant portion that we're running. We have a Department of Economic Development grant through the state of Nebraska which has no federal backing or strings behind it. It's just state funds. So the requirements on it are much smaller than what we get from per say a CDBG project and it's 7525. So 75% grant 25% match and this portion would go from bsentennial to Newberry which would close the section of the road that we're talking about for Francis. And we have according by the grant we have to have this piece done by September of this year otherwise we lose the grant funds for it.

Correct. The grant funds is about one and a half 1.6 million I believe. And what do you anticipate the total cost of this section of the road to be? I realize it's an estimate but around 2.2 million is what we're looking at. Okay. So it's a 7525 split. Correct. Correct. 75% grant. 70. Yeah. 25. And what's what's in our proposal today is that the 25% would be assessed to the contiguous property. Right. Correct.

Okay. And I just want to make sure everyone is aware of that. So Brent, have a chair for a second. Austin, since you would ultimately be responsible for paying that 25% again in a district, I just want to make sure that everything on your end is arranged and because that property doesn't belong to you today. It belongs to someone else unless you've purchased it in the last few weeks anyway. So, no, we're going to take full responsibility of paying that 25% difference. Um yeah, we probably talk more details into what that all needs to look like, but we'll assume the responsibility. So, is it fair to say that you have an arrangement with the current owners?

Yeah. Uh within the easement for the current owners to allow for a portion of the land to be dedicated to the city for that road. Uh we assumed responsibility for all financial payments. Okay. So, they're not going to be in my office tomorrow after they watch this video, right? Uh they shouldn't be. Okay. Thanks. [laughter] Just want to make sure we aren't surprising anybody. So, all right. Thank you very much. [snorts] Okay, that's kind of it in a nutshell. Other than that, the mechanics of this would work the same largely as the last piece of land. So, anyone have any questions or comments?

So, similar question. The tiff is supposed to pay off that road. Now, we got a $ 1.6 million grant essentially. Do that they just take that $1.6 $6 million grant, take their tiff money and that just a $1.6 million boon to the developer. Well, they would have to spend it. So, agreed, but they there's other ways they could spend tiff eligible ways they could spend that money. Austin,

what's your plan for this scenario? So, as we've gone through the um the planning process and like earlier stated, it's very complicated trying to forecast future construction expense with inflation and everything else. So, um based upon the the tiff dollars and the price point we're trying because this really comes down to the price point we're trying to get housing to. We're not coming in and building $450,000 homes. um our our current model home that's going up. We have a 1500 foot house that we plan on listing on the market for uh $260,000. So to my basis from the research we've done um it's about $25 a square foot cheaper than what's currently on the market. So what what the tiff does is allows us to bring down the cost of the infrastructure burden and in inevitably reduce the cost of the housing to that buyer. So, what we're looking at doing and there's more conversation past this, right? Like I can't make this decision, but um as we continue looking at our estimates, as you saw in the numbers that the mayor presented earlier, the infrastructure isn't fully covered by the cost of um what tiff is provided from the the tiff generated from an individual property doesn't pay the full portion of the infrastructure. So what we'd like to do is redirect what that horizontal infrastructure cost for Francis was and utilize it for additional infrastructure that's not currently being assessed with the only result of reducing housing price. Right? We make our margin on building the house. You don't make money on infrastructure. So what we're trying to do is reduce that. So in later years as we get to these future phases and you know five or six years from now when housing prices and construction costs goes up we're able to offer a lesser amount than we otherwise would be able to do. So I know within the

redevelopment plan there's all sorts of language on cost shifting and it's really just flexibility on where you get to our goal isn't to try and pocket any sort of money on infrastructure. It's taxpayer dollars. We're utilizing it to bring down construction price. And I think from day one, we've been been holding true on what the, you know, type of housing we're building and the price of the housing we're building. Right? If I come back in five years, I'm selling $400,000 homes. That's a different story. But as of now, we're trying to come in at [clears throat] a price point that I believed when I first came to North Flat and still believe while we're here building, it's a it's a portion of the market that's being missed. From our housing studies, the feedback from the realtor team, everyone is saying you need more housing in that $250 to $300,000 range. And in the last x amount of decades, 25 homes a year have been built. The data we're seeing is the average price of a new home being constructed right now is $450,000. So when you talk about, right, your average median income in North Plat, you can't afford a $450,000 home. There is no $450,000 spec homes being built. We want to track housing that's got amenities that I think a lot of people expect today, but it's at a price point. your uh you know your your household income in North Black can afford.

So just so I'm gonna transfer all those words, but yeah, that's it. This is a $ 1.6 million boon to your bottom line. Is that that's incorrect? Because you're going to shift it over to other things is what you said. We're going to utilize it to continue bringing down the cost of infrastructure so we continue bringing the price of housing at the lowest price possible. Our margin is set on housing. Every dollar of infrastructure that's not covered by TIF, your residents pay for. That's how the development works. And that's not just us. That's every developer I've met and talked to. So, how is it not a $1.6 million boon if you're going to utilize it other places? Brad, excuse me. Forgive me. You keep on talking about the boon. That is not correct. That is not correct.

They're talking about selling a house for $250,000. You have land cost. You have the improvement to make it. and you have the construction cost. What this man's been trying to tell you is is they make their money on the construction cost. The land and is is the land and then you get into the what the infrastructure and the sewer. That's what the tip pays for. And if you don't get that paid for, it increases the top line at the other end.

You also stood in front of us and said that the tip was going to pay off this road. Now $1.6 million of it is going to be paid another way. I'm just trying to talk through the logistics of that. Yeah, I I I just I think if you'd sit down and because I you're an intelligent man and I respect you tremendously, Brad, but you sit down there and take a look at numbers, you'd be understand this isn't a boom. He's telling you the money they make on these projects is the construction cost. But they got to have a place to put that house and you got to keep that price low enough that people can pay for it. If they don't do it with tiff, they're going to add another what 25,000 onto the price.

Depends how many houses you spread it across. But what what [clears throat] we're going to be able to do in five years, buyers would have to pay. I understand that. I'm just trying to understand the mechanics of where how this this uh grant money fits into the tiff which is supposed to go towards the road. Mayor, may I ask Austin item? Go ahead. Up here. I think one thing we're losing sight of in this too is that under the original plan this segment of road would it have been targeted for like year three or four is my memory right on that Austin if we started today?

Yeah it uh so I believe the first ordinance was for phase two uh which was if I remember right that would have started next year uh probably been completed in 2028 and then the following phase would have been I think 2029. I'm going off of me from a couple years, but we're we're moving the schedule substantially farther ahead.

Yeah. What one thing I I think we want to don't not lose sight of in that is that this phase, the last piece was really targeted. I figured in my head it'd be four or five years after the first parts of phase one if things went really well. And so that grant has sped this whole process up and all of a sudden we're going to have a road that that works for the community. It's going to go all the way out to Newberry, which is just such a fantastic thing. The other thing is I think people people still sight of in my mind there's no such thing as tiff dollars. There's there's tiff costs. There's money you spend that you can certify and then you get tax rebates and then you can try to go borrow money against or get an investor to front you some money on the money you think you're going to get out of that. So if they don't if they don't spend the certified costs and they don't build anything, they don't max out the building. I wor I worry way less about how how what the face amount of a tiff bond is and worry more about what's the interest rate, what's the time frame and all that because that's really what you're committing to. What you're committing to is hey you guys are going to get these tax rebates. So, I hope they build so much that the tiff money comes back way faster, maxes out, and and it's and everybody's just had, you know, the town has just boomed as a result of it. And so, I I but I think we don't want to lose sight of that time thing because if if you did push that out a few years with the time value of that money and the cost of construction going up, it it would eat into that million six quite a bit, I think.

Correct. Well, if you think about it in those terms, t I I totally agree. Getting the road done faster is in everybody's benefit. I'm I'm not trying to trying to make sure that we manage tax dollars well is really all I'm trying to do. Uh that $1.6 million, if they really take it out to 2030 rates, that 1.6 million or two million with with the full 100% will be more like $2.8 million in construction costs because it goes up every year. So doing this faster is in your benefit also because it's saving you a ton of money on increased construction costs over the next five six year or four or five years. So um that's a that's definitely in your benefit also.

It's it's in my benefit that from my team we don't have to put as much equity to get the work done for sure. But it doesn't come out of my profit.

We just raise lot pricing and the resident pays for it. That that's the piece with infrastructure again that we build the infrastructure as cheap as possible to bring down the cost of housing as much as possible. That's when we get into density and working with the city on you know road design and everything that we can do. Our goal is to get the infrastructure as cheap as possible. So when we build housing that's where we make our money. So we go back you know 50 60 years ago city put in infrastructure right. I I would love to actually come to Northbot and let's say you say, "Hey, we have 450 lots. We can convey to you and you can build housing." The amount of risk, you know, you get you get way into the details and tiff monetization, a 20-year guarantee, and everything else that comes with the risk of getting into development. That's why it's discussed as the most risky piece of real estate. We want to do it as effective and cheap as possible and utilize the tax dollars the best we can so we can get in and build housing as fast as we can because that's in the end of the day the only way we get paid. So I it's a totally valid concern. I'm happy to sit down individually and go through some more of the details and probably everyone wants to sit here for a couple hours and go over. Um but yeah, I mean this is a I think a fair to say a current discussion with the CRA because this is an amendment to our plan. We have to get approval from all parties involved and we need to go through that process to come back with consensus with everyone. All right. Does anyone else have any questions or comments? Seeing none, calling the question on item number five, please. Item number five is passed. Item number six. Thank everyone for being here that came for this purpose. Appreciate your help. Item number six, adopt the resolution providing for the designation of Equitable Bank as a warrant lender,

authorizing the execution and delivery of a warrant purchase agreement with such designated warrant lender and referring to and incorporating the terms and conditions of ordinance number 3874 relating to warrant financing. Mr. Mr. Mayor, I move to approve the resolution providing for the designation of Echo Bank as a warrant lender, authorizing execution of the warrant purchase agreement with such designated warrant lender and referring to and incorporating the terms and conditions of ordinance number 3874 relating to warrant financing.

Second motion by Raker, second by McNe. Any discussion on item number six? Seeing none, calling the question on item number six, please. Item number six has passed. Item number seven, adopt the resolution approving claims and authorizing the issuance of 25 warrants to Equitable Bank totaling 7,587,2857 to pay approved claims and referring to and incorporating the terms and conditions of ordinance number 3874 relating to warrant financing. Mr. Mayor, I move to approve the resolution authorizing the issuance of 25 warrants as presented in the materials. Second.

Motion by RER, second by Flanders. Any discussion on item number seven? Seeing none, calling the question on item number seven, please. Item number seven is passed. [clears throat] Now we have a series of public hearings. We'll open the first public hearing on item number eight to approve just approve that agreement for sale of real estate at 2900 West 6th Street with DNC Group LLC and authorize the mayor to sign necessary documents. We're opening the public hearing on this subject. If anyone would like to make any comments on this property, please approach the microphone, tell us who you are, where you live, and we will listen to your comments. It would appear that no one has a comment on this property.

I move we close public hearing. Second. Second. Motion by V, second by D to close public hearing. Calling the question on closing the public hearing. Public hearing is now closed. Council will now consider item number eight. approve the agreement of for sale of real estate at 2900 West 6th Street with DNC Group LLC and authorize the mayor to sign necessary documents. Mr. Mayor, I move to approve the agreement for sale of real estate with DNC Group LLC and authorize the mayor to sign necessary documents. Second motion by Lucas, second by WS. Uh, Bill, I think this one's yours. You want to quickly describe what you got going on?

Um, sure. I Thank you. Um, I tried to put a little bit more information in the uh council materials for some of those properties. So hopefully that helped answer uh any specific questions folks might have. But um this particular property uh just came up on our list as we work through. It's been on the property resolution list for a little while. Um so as I had time to work through that, I reached out to owners along the way and this particular owner indicated that they would be willing to sell. And so then we just had discussions as to what they would be willing to accept and and that's what you're seeing is the uh purchase agreement the the proposed purchase agreement that's in front of you tonight

questions or comments. Go ahead. So uh I I don't have a question specifically on this property but more the process in general. Uh maybe Judy, could you walk us through the the federal uh what the requirements are moving forward when we go to sell those properties? Uh I think they have to stay residential. I think they have to is it low-income housing? Like how how does that work with the federal strings? Are you the expert?

I don't know that I would call myself the expert. Um Bill probably knows just as much if not more than I do. But um yes. So, with the federal grant funds, the grant funds that we received for this, you do have to put a uh uh uh what's it called? A covenant on the property. Covenant. Yeah.

For all of the properties that we've purchased thus far, uh we've had to uh have executed um an approved covenant from the department, the Nebraska Department of Economic Development uh that contains some of the restrictions from the federal grant. So, uh there are certain um requirements regarding income limitations as to uh folks that would purchase the house. So, um it's not all necessarily low income. Um, and it's not necessarily um I forget I don't have it in front of me right now, so I apologize Brad, but um it's kind of um there's a term of art and it's like maybe workforce housing I want to say, but I I I can find it for you after the meeting. But

you it's meant to be workforce housing. So somebody can't buy this and build a five, six, $700,000 house on it. It has those income guidelines in there and that remains in perpetuity, doesn't it? for 20 years. 20 years. Okay.

Yeah. And that's to be honest, that's why um we've been quite selective with the properties that we're looking at because there there are other properties around town. I've talked with some of the other council members that we've kind of ruled them out with this grant because they don't fall within what we feel like are truly residential areas. So, we're trying to keep a lot of that stuff in mind as we go through this process. a lot a lot of like the planning and zoning type stuff that we're looking at too. Um and and so we we try to keep all of that in mind as we try to bring properties forward for you to consider. Other questions or comments? [clears throat] Seeing none, calling the question on item number eight, please. [laughter] Item number eight is passed. Item number nine, another public hearing to approve the agreement for sale of real estate at 2705 West 6th Street with Bradley D. Nelson and authorize the mayor to sign necessary documents. We're opening the public hearing on this subject. If you'd like to make a comment on 2705 West 6th Street, please approach the microphone, tell us who you are, where you live, and we'll receive your comment. We always try to wait about 10 seconds. No one's moving. Mr. Lucas,

I motion that we close the public hearing, please. Second. Motion by Lucas, second by Dy to close the public hearing. Calling the question on closing the public hearing. Public hearing is now closed. Council will now consider item number nine. Approve the agreement for sale of real estate at 2705 West 6th Street with Bradley D. Nelson and authorize the mayor to sign necessary documents. Mr. Mayor, I move to approve the agreement for sale of real estate with Bradley D. Nelson and authorize the mayor to sign necessary documents.

Second motion by VS, second by McNe. We have questions or discussion on item number nine. Mr. Mr. Lucas, very quickly, I just want to commend the work on this. This neighborhood has some really junky properties and some really great properties. I'm sure a lot of you have looked at it. Everything we can do. This is a neighborhood that could be transitioned with with a little bit of help. And so I think and these two houses are very dilapidated. So this this is exactly what I think you'd hope for in this program. So thank you for the work on it.

Thank you. Other questions or comments? Seeing none, calling the question on item number nine, please. Item number nine is passed. Item number 10 is another public hearing. Approve the agreement for sale of real estate at 18, excuse me, 118 South Sycamore Street with Eric Bentley and authorize the mayor to sign necessary documents. We're opening the public hearing on item number 10, which is 118 South Sycamore Street. If you have a comment, would you please approach the microphone and tell us your comment? I move we close public hearing. Second.

Motion by V, second by Lucas to close the public hearing. Calling the question on closing the public hearing. Public hearing is now closed. Council will consider item number 10. approve the agreement for sale of real estate at 118 South Sycamore Street with Eric Bentley and authorize the mayor to sign necessary documents. I move to approve the agreement for sale of real estate with Eric Bentley and authorize the mayor to sign necessary documents. Second motion by McNe, second by Vols. We have discussion on item number 10. Just go ahead

real quickly. Thank you. Um, on all of these, I noticed it says no current utilities on the property due to it being vacant. Just to clarify, does that mean that there's utilities there? They're not being used or there's none at all to these properties? Um, there are utilities to the properties. They're just not turned on. Um, this particular one is is a lot um that my understanding is that the prior house had burned down. Okay. Um, some time ago. So they're all the utilities that are available here. Um but with the other ones that do have structures on them, they have utilities. They just haven't been on. So I I included that just to kind of show that, you know, they're not producing any additional revenue for the city. They're

um you know, they're they're just vacant. Yeah. No, I appreciate you putting all that information in here. It really helps going through this. Um where it was a vacant lot, that's why I was curious about if it had any going to the property or not. So thank you, Mayor Keller. Go ahead. I grew up in the house is catacorder from this house on Sycamore Street and there was a nice little white house there that burned down and people live there for years and there's houses all the way around this thick. I mean be great if somebody builds a house. It's a great lot. The city has to mow that has been mowing that for years. So it will be nice it [laughter]

well we would like to sell it to someone to build house on. That would be the preferred approach. But but but honestly that's why we went after this one is because it's been um on our list for properties that haven't been mowed by the owners. So um so it's been kind of on a it's been red flag for us and so I was happy to be able to bring it forward. Well, it seems like it's a bargain if there's not even a house on it already. So got a good start. Is there anything in the grant saying we can not buy [laughter] vacant lots? No, we're okay with buying them. Okay. We purchased a couple already. Yeah. Okay. I thought we had but I wasn't pausing. Bill, do you know is there any assessments because of the mowing the city's done on this lot?

Um we could bring forward some assessments um which we've kind of had some internal discussions on that and we're refining our processes on how we um issue notices for those assessments. So because of some of the requirements of the ordinance and how some of the notices have gone out, we haven't brought them forward. Um, but yeah, that's something I would say council will start seeing more of this next mowing season. Other questions or comments on item number 10? Seeing none, calling the question on item number 10, please. Item number 10 is passed. Item number 11, public hearing to approve the agreement for sale of real estate at 606 East Fifth Street with Southwest Farm and Auto Supply LLC and authorize the mayor to sign necessary documents. Opening the public hearing on item number 11. If anyone has a comment, please approach the microphone. Not getting a lot of input tonight, folks.

I move we close public hearings. Second. Motion by BS, second by Lucas to close the public hearing. Calling the question on closing the public hearing, please. Public hearing is now closed. Council will now consider item number 10. Approve the agreement for sale of real estate at 118 South Sycamore. Oops, I read the wrong one. Sorry, number 11. Um, Council will now consider number 11. approved the agreement for sale of real estate at 606 East Fifth Street with Southwest Farm and Auto Supply LLC and authorize the mayor to sign necessary documents.

Mr. Mayor, I move to approve the agreement for sale of real estate with Southwest Farm and Auto Supply LLC and authorize the mayor to sign necessary documents. Second motion by Flanders, second by BS. Bill, this is just slightly unusual. You want to talk about this one for a second?

Absolutely. Um, so this particular property has been vacant for some time. Um, it was recently purchased, if you notice, from the council materials, uh, by the now new owner of the Napa Auto Auto Store that was on Fourth Street. Um, so he purchased it, um, along with several other properties. I think all but the car wash that's on the corner of like Fifth and Popppler. Um, he purchased all of those properties here this last year. um just as part of the the purchase of the the Napa store. Um he in our discussions he uh indicated that he had done that just so he you know made sense to him to have control over all those properties so he could decide what would happen with them. Um so with these two particular houses, this one for item number 11 and the next one for item 12, they're right next to each other. uh they've been vacant for a very long time and um and he's just decided that it would uh be best for him to sell them uh under this program. Um they seem to be good good size lots where nice houses could go up. Um the house to the uh west of these uh he's considering what his options are for that, but that has existing tenants in it. Um it's it's rented out. Um, so, you know, in going by and taking pictures and everything of this, it seems like it would really help the neighborhood out to have these cleaned up. Um, and then, uh, the o the other thing I would point out for both of these, you might have noticed that the, um, the proposed purchase price is a little bit over what the assessed value is on the properties. Um and the in my negotiations with the property owner uh he provided me some documentation from his accountant because what happened as I mentioned he purchased the um all of these properties

as one lump item and so uh it's difficult for us to look at the the deed where he purchased them and be able to figure out from the doc stamp taxes what he paid for them. Um, so he provided me this additional information from his accountant to show what he was using as his basis in the property. And so the purchase price that you're seeing here is just it it's exactly uh what he's using as his purchase price uh the basis for that from his accountant. So he wouldn't be realizing any gain from it. Um and uh you know I suppose if he wants to write off some of the taxes he'll have to pay for the short time he's owned it. he might realize some small loss on it, but um but that's how we arrived at the purchase price. He didn't want to take a a large hit on it. Um but he he wasn't looking to make money on it either.

Rod, I thought you gestured and had a question. Uh I was looking at uh on the map and that is them properties are located in a B2 zone, I believe it was. So is that going to cause us any problems building houses back there? because that's what the grant requires us to do. I'll let you guys have heard enough from me. Judy, [clears throat]

um what we can do is reszone the property, take a look at it, see um all the residential areas around there. Got a couple of different options. We could go with um a strictly residential or we could do a BT and just require business transitional district and just require that a house be put on there. But yeah, it's very doable. it'll have to come back through um be reszoned and that's part of what the grant is for is to get these ready to build houses. So yeah, it will take its own change. Is the owner of the Napa place, does he know that it'll be a house that's built back there? He he does. Yes. Okay. Yep. He's he's in favor of that. Okay. That's

Pete. Judy, the compre the we haven't seen the new comprehensive plan. What do you think that'll be a BT zone area? Something like that. And that because there is it's a mix of business and residential and right like right across streets all residential but then there's business either way. So I could see that happening pretty easily. Okay. Which would leave it open to um definitely requiring a house on there. In your opinion, do you think that's the best use of this property of residential? Yeah. I mean as it is now because you have so many other residential areas right around there. I mean it on the other sides of the streets they're all residential. So yeah. Yep.

Okay. Yeah. And I would say being on Pit Street as opposed to being directly on Topppler. Like there's some other houses uh that this this uh gentleman owns that are on popppler that we just didn't consider. Um for the reason that I mentioned earlier in our meeting where you know we look at that and from a planning perspective, it seems like along popppler is probably more appropriate for commercial type businesses as opposed to u requiring somebody to have a residence there for the next 20 years. Other ty Yeah, I'm glad you're still up here, Judy. This is this is an just when you think you've run into every weird thing in a city that you could run into. Maybe you find something else. Tell you a story. Yeah, I know. I know you can. [laughter]

But what's to me what's so interesting about this one is if you go through the tax assessment history, it was like 13,000 and then it popped up to like in the 40s and actually it's down. Well, it's it's assessed more. I'm sure of it. I didn't call the assessor, but it's because of the B2 zoning. And so, here we are. We're going to pay for it with B2 zoning with not our money though. That's important. [laughter] And when but it's not. And and um and we're going to pay for a zoning that we're going to get rid of. And we're going to have a lot that's going to be worth $10,000 when we're done.

So there's there's a lot to think about there. You know, as as I tried to look at it, I think the lot could probably be used either way. I mean, I would imagine if we didn't do this, at some point he's probably going to demolish them and try to get commercial value out of it, but the homes are really nice across the street. And these are going to need torn down, aren't they? Oh, yes. Yeah. These are these are in rough shape, it looks like. Okay.

So, it it is a little scary to trap those lots in 20 years of zoning jail with with residential zoning. I mean, seriously. But but I I guess where I keep leaning, I guess if the owner wants to do it, but I think we have to recognize we're throwing away some money because of the zoning that, you know, if we did run out of grant money in the cycle, we might wish we didn't do this one because we're overpaying for it because of the zoning that's there today. We're not going to run out of grant money, you know. I know. I [laughter] know. So that's probably where I lean on my vote, but I don't know. I'm just babbling because it's such a weird situation, I guess. Yeah. Yeah. Trust me, there'll be something new every week. Yeah, I know. Anybody else have Oh, Ed, go ahead. Sorry.

Yeah, Mr. Mayor, thank you. And Ty, you hit on it right there. Um, we're going to be we're going to be buying property that says that it has to have a house on it for the next 20 years. Our town is growing. It's growing rapidly. We don't know what the developers there. We've just locked it out of any commercial development to do this. Um, I guess when I I'm going to vote no, you know that [laughter] weird.

But if this was my money, which it is, and I looked in the mirror with my money, would I do it? Hell no, I wouldn't do it. because it doesn't make any sense.

Other Nick, thank you. I think with houses being directly across the street, I think keeping it residential is probably okay with me just because I mean we've voted to keep residential residential on this council before. So, I think locking it in, I mean, it's we don't know what's going to happen, but I think keeping it residential, I'm I'm okay with doing that and locking it in. These houses do need to go. They are kind of isores, and I think that uh I think that we're doing the right thing by getting them cleaned up, and it we are losing money, but we need to continue on this path of getting properties like these and the previous ones taken care of and addressed and and moving forward. One one quick question that I had though, they have to be residential. There's no way to consolidate these two lots to do apartment complexes or anything. Oh,

that's possible. You could do an apartment complex. Okay. So, that is possible. Okay. I I just we keep saying houses. I just wasn't sure if that was a possibility or not. Dwelling units, right? And you can use them. So, you can buy it yourself, put your own house on there, live there. Mhm. You can buy it as a rental property, but again, you do still have um some criteria as to how much you can charge. So, what what's the cap or what's the criteria? Do we know on what sort of apartments they were? Because I mean, like, could they be $2,500 a month apartments or Okay. So, they do they do have regulations in there on the amount you can charge per month. That's the the income criteria. Yes. Got this the bill was speaking about earlier.

Well, I knew they had that for the residential. I wasn't sure if they had that. It applies across the board. Got it. Okay, Mr. Mayor. Oh, sorry. Go ahead. So, given the scenario, we buy it, we raise it, we've got a lot now. It's it's rated for it has to have a house built on it. We're going under the presumption that the location is not very desirable desirable for building a new house that's going to cost somewhere between 150,000 to maybe $200,000. What if nobody wants to buy it? What if nobody wants to buy the home?

I think they'll buy it. I I [clears throat] really do. You've got your anybody's going to buy this lot. Well, there's no guarantee. You're right. But you've got your infrastructure all ready to go. The lot's going to be free and clear of all incumbrances and they're going to get a lot for a very low price as compared to what they can do.

Everybody's going to want to build a house there given the location of the property. That's anyway. Well, I I think all I can tell you is about every month, probably on average, I get a call from local builders wanting more lots, and I tell them that these will be available at some point in the future, and they all want to be aware when they're available. So, I'm not arguing with you, but I I don't I don't think it will be a big issue selling them. So, go ahead, Nick.

And that's kind of to my point is it could be apartments. It doesn't necessarily have to be a house. I think that would be a good place where Sunny didn't want to build a house, they could build apartments there because we have apartments in business districts all over the city. So, that's why I was bringing up the apartment. So, so to Nick's point, this actually apartments there make a lot of sense. So, it really does. Uh, but to Ed's point, uh, I know there's a lot of people that are looking for lots, but we're going to have a ton of them come up at the same time. So, I I I do have some concerns that that's going to drive the price of these down fairly significantly when we have 30 or 40 lots come available essentially at the same time.

And to your point, Brad, and what the mayor brought up, we we're keeping a list of these people that are interested and it gets longer all the time. I couldn't tell you how many are on there right now, but I mean, I think we're going to have a number and because of the criteria, maybe each one is only going to want one or two, maybe three lots. I don't it it could be I mean it could obviously be an issue but I think we are going to have enough interest that there's probably going to be numerous builders that are going to want two or three lots at a time. So I think we

and I hope that's right but but with with the workforce housing restrictions and the just the the volume of lots we have potential to where that's going to drive that price down. Just something to be to be cognizant of. The other thing we need to keep in mind is the houses across the street from a couple of these places are pretty darn nice houses. And if you lived across the street and had to look at this all the time, I think you'd be tickled if the city demolished it and you had a vacant lot and it will eventually sell. Somebody will build something there. Other questions or comments on item number 11? Seeing none, calling the question on item number 11, please. Item number 11 is passed. Item number 12, approve the agreement for sale of real estate at 608 East Fifth Street with Southwest Farm and Auto Supply LLC and authorize the mayor to sign necessary documents. Opening the public hearing on item number 12, which is highly similar to item number 11. Anyone would like to make a comment, please approach the mic and let us know your thoughts. I move to close the public hearing.

Second. Motion by McNe, second by Lucas to close a public hearing. Calling the question on closing the public hearing, please. Public hearing is now closed. Council will now consider item number 12. approved the agreement for sale of real estate at 608 East Fifth Street with Southwest Farm and Auto Supply LLC and authorize the mayor to sign necessary documents. Mr. Mayor, I move to approve the agreement for sale of real estate with Southwest Farm and Auto Supply LLC and authorize the mayor to sign necessary documents.

Second motion by Lucas, second by Vols. Again, highly similar to the last one. Any discussion on this one? Seeing none, calling the question on item number 12. Item number 12 passes.

Okay. Item number 13, approve the claims. Mr. Mayor, I move to pay the bills. Second. Motion by REUR, second by Volos to pay the claims. Mr. Mayor, I'd like to abstain from voting. Okay. Record show Mr. I abstain from number 13 and calling the question on item number 13. Please number 13 is passed. Mr. Mayor, I move that we go into close session discuss potential real estate transactions to protect the public interest. Second.

Motion by BS, second by Dy. Go into close session. Calling the question on close session. [clears throat] Ed close session. Calling the question on close session. What's in those mints you've got there? Okay. [laughter] Council is now in close session. Thank you everyone. Mic off please.