Council asked to OK TIF modification

McCOOK, Neb. — The McCook City Council, acting as the McCook Community Development Agency, will be asked to transfer a tax increment financing project currently underway to an affiliated organization.

The council will meet for its regular meeting Monday, 5:30 p.m. at City Council Chambers at the City Municipal Building.

The McCook Community Development Agency (CDA) and Smoker’s Outlet, doing business as N-Stant Convenience, entered into a tax increment financing redevelopment agreement in April 2020. According to a section in the agreement, the redeveloper cannot transfer or convey any part of the project site during the 15-year TIF period without the consent of the CDA.

The project, a fuel station with eight fuel pumps, or four-island double sided fuel canopies, is currently being constructed directly across from N-Stant Convenience at 1111 West B.

The redeveloper is seeking the CDA’s consent and approval of the conveyance of the project site to an affiliated entity, Nothnagel Holdings LLC. Under the proposed assignment, Nothnagel Holdings LLC would assume the obligations of the redeveloper under the original Redevelopment agreement. Nothnagel Holdings, LLC, has acknowledged its obligation to complete the project and pay all real estate taxes due on the project site.

The redevelopment TIF agreement in April 2020 assigned a $196,500 TIF note for 15 years at 5%, that will be financed with proceeds from TIF. Approximately $18,785 is the anticipated tax shift and will be available to the redeveloper to pay TIF-related indebtedness.

TIF works by capturing projected property tax increases, created by the project, and then using the captured increases to assist a developer with their startup costs.

The area where the gas station is located was designated in January 2020 as “blighted and substandard” as Redevelopment Area No. 4, making it available for TIF projects.

Up to 35% inside city limits can be designated as blighted or substandard in first class cities, according to the Nebraska Legislature. First class cities, as defined by the state legislature, are those with populations of 5,000 to 100,000. The City of McCook’s percentage of blighted/substandard areas is at 28.6%.

While convening as the CDA, the city council will be asked to approve the resolution that allows the assignment and assumption of the Redevelopment Agreement entered into by the Community Development Agency of the City of McCook and Smoker’s Outlet, Inc., d/b/a N-Stant Convenience, with Nothnagel Holdings, LLC to stand as assignee.

Other than the CDA meeting, there are no other regular agenda items slated for Monday’s meeting. On the consent agenda, the council will be asked to approve a resolution certifying that the City of McCook is considered to be capable of providing public transportation for its citizens for the two-year grant period of fiscal year July 1, 2021 to June 30, 2022 and fiscal year July 1, 2022 to June 20, 2023.