Council okays RDA purchase of lots for senior housing
Four public hearings top city agenda.
The Redevelopment Authority will bankroll the purchase of six lots for senior housing.
Following a public hearing last Wednesday noon, the Gothenburg City Council passed a resolution that allows the RDA to buy the lots on which a redeveloper will build duplexes.
Dana Point Development Corporation will build three duplexes for low-income seniors and will pay a dollar per lot.
The estimated cost of the lots is $65,000.
City attorney Mike Bacon said city sales tax will pay for the lots that will eventually be repaid from property taxes through tax-increment financing.
TIF supports a project by allowing the tax revenue generated by the property for up to 15 years to help pay for its development.
Construction of the three-bedroom duplexes in the Jefferson Square area will begin in August.
The other three lots will be available for future growth, city officials said.
Because the council didn’t have a quorum at its regular meeting on May 20, four public hearings were continued until last Wednesday.
After another public hearing, the council passed a resolution on a redevelopment contract for Nebraska Barn & Grill.
Developer Terry Jessen received $350,000 in TIF funds for fill when the restaurant was constructed and to pave a parking lot.
The money will be repaid through tax revenue generated from the property.
More resolutions, for special use permits, were approved following two more public hearings. Both were recommended by the planning and zoning commission. They were:
For Nebraska Salt & Grain, to install an 8-foot security fence on their property at 1320 Second Ave. The permit is needed since an ordinance allows only 6-foot fences within city limits.
For Horvath Communications to construct a 149-foot telecommunications facility, including a tower, ground equipment and security fence, west of 16th Street and Second Avenue.
Planning and zoning commission members recommended that a light be installed on the tower for visibility which the council agreed to as part of the permit.
During community comments, Bacon announced that Van Kirk Brothers Contracting of Sutton was the lowest of two bidders to install sewer and water from Cottonwood Drive to the GIC industrial tract in the southeast part of town.
Paulsen Inc. of Cozad got the bid to put in paving.
Bacon is president of the Gothenburg Improvement Company that owns the industrial tract.
Van Kirk will begin installation of sewer this summer and will complete the project sometime in 2015 which resulted in an $85,000 reduction in the bid price, he said.
He noted that the work is funded with a $500,000 grant from the Nebraska Department of Economic Development and a $360,000 Rural Economic Development Loan & Grant Program loan.
The balance will be paid through city sales tax funds.
In other action, the council approved an application designating Roy Syrek as the manager on a liquor license for Shopko Hometown.
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