The Beatrice City Council approved three redevelopment plan modifications on Monday night that would allow for Tax Increment Financing to be used in construction and renovations on three building sites around town.
Following recommendations from the Community Redevelopment Authority and the Planning and Zoning Commission, the council gave its unanimous approval for one structure downtown and two in the Gage County Industrial Park in Beatrice to use TIF funding for three projects.
The first was for the renovation of 301 Court Street in downtown Beatrice that’s currently underway by Hydo Properties, LLC.
The base project site valuation for the building that was originally constructed in 1883 was $22,790. The completed project was assessed by the county assessor to be $219,725 and the estimated annual projected tax increment was assessed at $3,835.
Approximately $27,000 in TIF funding will be used for an elevator that is anticipated to cost the developer around $100,000, which may be a bit unusual but is still an eligible TIF expense, said Tobias Tempelmeyer, city administrator.
“The portion that's being TIF-ed is just the elevator,” Tempelmeyer said. “They're going to install a passenger elevator on the inside of the building.”
Tempelmeyer also said that the numbers were a bit conservative, as the county assessor couldn’t put a definite number for the valuation after all improvements are made.
The next approval was for a building for Exmark Manufacturing.
In February, the council approved applying for a Site and Building Development Fund grant from the Nebraska Department of Economic Development for $250,000 for the building, located at 415 Industrial Row in Beatrice.
Exmark, which builds lawn care products at its current location in the industrial park, has plans to turn the 84,000-square-foot building into storage and office space for the company’s divisional office.
Most of the TIF-eligible expenses in the project will be for site acquisition of the Blue Valley Automation building, which currently houses vendors for Exmark and Neapco, in addition to serving as the bus barn for Mid States School Bus Inc., which provides the bus services for Beatrice Public Schools.
The estimated base project valuation for the site is $875,000, with an estimated completed project assessed valuation of $2 million. Most of the TIF-eligible expenses for the project are for site acquisition of the new building.
The third project is a planned spec building by R.L. Tiemann Construction in the industrial park. The 38,000-square-foot building is being planned for a lot in the industrial park north of Precise Fabrication.
A cost benefit analysis of the project said that the completed project's assessed valuation would be $1.4 million, with an estimated annual projected tax increment of $27,160. The CBA goes on to say that the developer anticipates approximately $1.7 million for the acquisition and related improvements, including expenditures for eligible public improvements and that approximately $194,000 of the public expenditures will be financed with TIF funds.
With the recent construction of the Hybrid Turkeys hatchery north of the site, the infrastructure is already in place, Tempelmeyer said.
“Most of the tax financing eligible expenses will be some site aquisition, grading work, site prep and maybe some parking lots outside,” Tempelmeyer said. “Some of those types of things.”