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Record of Proceedings

Kearney City Council Meeting - September 26, 2023: TIF Approval, Sanitation Award, and NPPD Claim

City Council — Tuesday, September 26, 2023
BodyKearney, Nebraska
SessionCity Council
DateTuesday, September 26, 2023
StatusFILED
Video Record
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Transcript — Verbatim
0:09

Well good evening, everyone.

0:10

Welcome to our city council meeting for September the 26th.

0:13

If you'll rise, we'll have a moment of silence followed by the pledge of unions.

0:25

Thank you.

0:26

And join the pledge of wages.

0:29

I pledge to the flag of the United States of America.

0:33

And to the Republic for which it stands one nation under God, indivisible with liberty and justice for all.

0:41

In accordance with section 84 1412 of the Nebraska Revised Statute is a current copy of the open meetings act as available for you.

0:50

Bush Cutter.

0:52

Present Nicola Moore.

0:54

Okay, thank you.

0:55

We have no oral communication, no one finished business and no public hearings.

0:58

We'll jump right in the consent agenda items one through eleven.

1:01

Any item on the consent agenda made by the request of a council member be removed and considered for consideration.

1:06

We have any items need to be removed.

1:09

Okay, we have a motion.

1:11

Um I move to approve items one through eleven of the consent agenda.

1:16

Second.

1:16

Roll call, please.

1:17

Mayor Claus.

1:20

Hi, Bush Cutter.

1:22

All right.

1:23

Okay, we have no consent agenda ordinances.

1:25

Uh so we'll move to regular agenda item one.

1:27

That's to consider redevelopment uh project submitted by Carney Partnership for property located at 220 11th Avenue.

1:34

Yeah.

1:35

This year.

1:36

You guys got there quick.

1:37

Yeah.

1:41

Good afternoon, Kayla James, Director of Finance.

1:44

Carney Partnership is considering the construction of a 12,400 square foot single level office building.

1:50

The building structure will consist of exposed wood, glue loom framing, pre-engineered wood trusses, supplemental steel and wood framing, and concrete.

1:58

Exterior finishes will include brick veneer, fiber cement siding, metal, wall panels, and an aluminum storefront.

2:04

The building will be located at 220 11th Avenue.

2:08

The current owner of the land is Towmage Jam LLC, but they are in the process of selling it to Kearney Partnership.

2:14

The total new valuation of the property upon completion is estimated to be at 1,950,665.

2:22

And the current valuation of the property is 28,725.

2:27

The incremental valuation is estimated to be 1 million 921,940.

2:32

The annual increment in real estate taxes upon the completion of the project is estimated to be $35,776.

2:41

On September 13, 2023, the CRA moved that the project be granted 100% of the annual increment in real estate taxes not to exceed the certified eligible project costs over a period of not to exceed 15 years beginning with tax year 2023.

2:55

The CRA approved estimated project costs totaling 934,600.

3:01

After the redeveloper in the city have received the total of the certified eligible project costs, the political subdivisions will receive 100% of the taxes generated from the valuation increment.

3:11

Staff recommends that the city council approve the project be granted 100% of the annual increment in real estate taxes not to exceed the certified eligible project costs over a period not to exceed 15 years beginning with tax year 2023.

3:27

Thank you.

3:28

Any questions?

3:29

Comments?

3:31

No, that's I have a question.

3:33

I know we don't normally have questions on this, but I do.

3:35

And this doesn't really matter because it's to their detriment.

3:38

But how would the value only be?

3:40

I guess this is an accessory question.

3:41

Only be two million dollars in the building is going to cost five million dollars to build it.

3:44

Great, great question.

3:45

This has been a challenge in the last few projects.

3:49

Um that have been significantly under assessed.

3:55

And this is why we recommend the 100%.

3:58

And this one's a little bit different.

3:59

This is the first time that we've actually allowed them to capture the increase in valuation if that does occur, where normally it's limited to X.

4:11

They can't it can't exceed, but that's the reason the CRA did it, is because we know the project is nowhere near 1.9 million dollars.

4:18

I wish.

Discussion Breakdown — Share of Meeting
Environmental Protection█████████████████████████████████████████████58%
Procedural██████████13%
Technology and Innovation████████10%
Economic Development█████7%
Parks and Recreation████5%
Energy Management███4%
Fiscal Sustainability██3%
Summary of Proceedings

Kearney City Council Meeting - September 26, 2023

The Kearney City Council met on September 26, 2023, at 5:30 p.m. in City Council Chambers. The meeting covered routine business, a consent agenda, and three regular agenda items: a tax increment financing (TIF) request for a new office building, a staff update on the Sanitation Department (which received the Nebraska Recycling Council Green Team of the Year Award), and an open account claim to Nebraska Public Power District (NPPD). All consent agenda items were approved unanimously, and the regular agenda items were acted upon with one abstention on the NPPD claim.

Consent Calendar

  • Approved Minutes of the Special Meeting on September 11, 2023, and Regular Meeting on September 12, 2023.
  • Approved Claims as presented.
  • Received Planning Commission recommendations and set October 10, 2023, at 5:30 p.m. for public hearings.
  • Adopted Resolution No. 2023-139 revoking a prior interlocal financing agreement and approving an updated agreement with Buffalo County for shared costs of constructing Talmadge Street from 15th Avenue to Yanney Avenue and north.
  • Adopted Resolution No. 2023-140 removing an approximately 80-foot section of parking on the west side of Central Avenue east of Hobby Lobby (11 East 39th Street).
  • Adopted Resolution No. 2023-132A setting the 2023 City of Kearney property tax request at a different amount than the preliminary request.
  • Adopted Resolution No. 2023-141 approving a real estate purchase agreement for Lot 5, Block 2, Tony H. Addition (property from William G. Hines Jr. and Becky A. Hines).
  • Accepted proposals for Millennial Park Playground Structure (Cunningham Recreation, $85,000) and Millennial Park Splashpad (Outdoor Recreation Products, $124,221.98).
  • Adopted Resolution No. 2023-142 approving Change Order No. 3 for the Terminal Building Expansion Project at Kearney Regional Airport (increase of $34,651 and 21 days).
  • Adopted Resolution No. 2023-143 approving revised Park and Recreation Rules and Regulations as recommended by the Advisory Board of Park and Recreation Commissioners.

Discussion Items

  • Tax Increment Financing for Kearney Partnership (220 11th Avenue):

    • Finance Director Kayla James presented the proposal: a 12,400-square-foot single-level office building with exposed wood, glue-laminated framing, and brick veneer. The total new valuation is estimated at $1,950,665, with an incremental valuation of $1,921,940 generating an estimated annual increment of $35,776. The Community Redevelopment Authority (CRA) recommended granting 100% of the annual increment for up to 15 years, not to exceed certified eligible project costs of $934,600.
    • Council Member Pete Kotsiopulos questioned why the building's estimated value was only $2 million when construction costs were around $5 million. James explained that recent projects have been under-assessed, and the CRA approved 100% to allow capturing future valuation increases if they occur. The incremental amount is capped at eligible costs.
    • The council approved the finding that the project would not be economically feasible without TIF, that it would not occur otherwise, and that it is in the long-term best interest of the community. Resolution No. 2023-144 was adopted, granting 100% of the annual increment for up to 15 years starting with tax year 2024 (per the motion; the agenda stated tax year 2023, but the motion specified 2024).

  • Sanitation Department Update and Green Team Award:

    • Sanitation Superintendent Steve Hart and Household Hazardous Waste Coordinator Shauna Petzold presented an overview of the recycling and household hazardous waste programs. Key statistics: approximately 8,000 homes participate in curbside recycling, 500 commercial accounts, and over 215 semi-loads of recyclables shipped annually. The household hazardous waste program recycles 11,000–12,000 gallons of used motor oil each year. The department has received over $2 million in grants over 30 years.
    • The department recently received the Nebraska Recycling Council Green Team of the Year Award.
    • Council members asked about electronic waste, food waste, plastic contamination, and participation rates. Hart noted that about 5–6% of collected materials are not recyclable, and that the city's simple co-mingling system leads to high participation. He also mentioned future plans for solar energy and rigid plastics recycling.
    • Council praised the program and staff for their efficiency and environmental impact.

  • Open Account Claim to NPPD:

    • The council considered an open account claim to Nebraska Public Power District in the amount of $120,144.58. The motion to approve was made and seconded. On roll call, Mayor Nikkila abstained; Council Members Buschkoetter, Lear, and Nicola voted in favor. The claim was approved.

Key Outcomes

  • Consent agenda items 1–11 approved unanimously.
  • Resolution No. 2023-144 approved (TIF for Kearney Partnership) with a vote of 4 in favor (Council Members Moore, Kotsiopulos, Schmidt, and James Moore? The roll call: "Mayor class more. Nicola. Hi." It appears all present voted yes; no opposition noted. The motion passed.
  • Sanitation Department update received; no formal action required.
  • Open account claim to NPPD approved (4-0-1, with Mayor Nikkila abstaining).
  • Council Member comments: Mayor Nikkila noted upcoming projects (Millennial Park, Talmadge Street paving, Yanney Park pavilion, airport terminal ribbon cutting, hangar construction) and announced his retirement, receiving appreciation from colleagues.

Meeting Transcript

Well good evening, everyone. Welcome to our city council meeting for September the 26th. If you'll rise, we'll have a moment of silence followed by the pledge of unions. Thank you. And join the pledge of wages. I pledge 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. In accordance with section 84 1412 of the Nebraska Revised Statute is a current copy of the open meetings act as available for you. Bush Cutter. Present Nicola Moore. Okay, thank you. We have no oral communication, no one finished business and no public hearings. We'll jump right in the consent agenda items one through eleven. Any item on the consent agenda made by the request of a council member be removed and considered for consideration. We have any items need to be removed. Okay, we have a motion. Um I move to approve items one through eleven of the consent agenda. Second. Roll call, please. Mayor Claus. Hi, Bush Cutter. All right. Okay, we have no consent agenda ordinances. Uh so we'll move to regular agenda item one. That's to consider redevelopment uh project submitted by Carney Partnership for property located at 220 11th Avenue. Yeah. This year. You guys got there quick. Yeah. Good afternoon, Kayla James, Director of Finance. Carney Partnership is considering the construction of a 12,400 square foot single level office building. The building structure will consist of exposed wood, glue loom framing, pre-engineered wood trusses, supplemental steel and wood framing, and concrete. Exterior finishes will include brick veneer, fiber cement siding, metal, wall panels, and an aluminum storefront. The building will be located at 220 11th Avenue. The current owner of the land is Towmage Jam LLC, but they are in the process of selling it to Kearney Partnership. The total new valuation of the property upon completion is estimated to be at 1,950,665. And the current valuation of the property is 28,725. The incremental valuation is estimated to be 1 million 921,940. The annual increment in real estate taxes upon the completion of the project is estimated to be $35,776. On September 13, 2023, the CRA moved that the project be granted 100% of the annual increment in real estate taxes not to exceed the certified eligible project costs over a period of not to exceed 15 years beginning with tax year 2023. The CRA approved estimated project costs totaling 934,600. After the redeveloper in the city have received the total of the certified eligible project costs, the political subdivisions will receive 100% of the taxes generated from the valuation increment. Staff recommends that the city council approve the project be granted 100% of the annual increment in real estate taxes not to exceed the certified eligible project costs over a period not to exceed 15 years beginning with tax year 2023. Thank you. Any questions? Comments? No, that's I have a question. I know we don't normally have questions on this, but I do. And this doesn't really matter because it's to their detriment. But how would the value only be?

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