Cabela’s project gets TIF approval

Following the lead of the city’s Planning Commission, Sidney City Council Tuesday night gave final approval to the Tax Increment Financing for Cabela’s downtown redevelopment plan.

The $9 million project would renovate not only the Cabela’s former corporate headquarters at 812 13th Ave., but also revitalize the area along Illinois Street, between 13th and 14th avenues.

As a result of the renovation, Cabela’s would add an additional 80 new jobs, and place even more permanent employees downtown at the former headquarters, which is currently being used for storage.

“We anticipate a population somewhere in the range of 110 to 120 employees working in the three-story building,” Dennis Armstrong, corporate facilities architect of Cabela’s, stated during a meeting of the Community Development Agency, prior to the regular council meeting.

The project site boundaries are Illinois Street, 13th 14th avenues and Hickory Street, Armstrong said.

“We also have control of ground on the south side of Illinois Street,” Armstrong said.

The south side would add three parking lots and 150 parking spaces for use of the facility.

A cost-benefit analysis was performed on the project, as required by law. The study encompassed a wide range of factors, and determined the project would have no negative impacts in any of the five main areas analyzed, and will result in many long-term positive impacts to the city.

Using figures of potential valuation, a five-percent interest rate and only 13 years of cash flow on the 15-year increment, the total recapture would be about $1.6 million, and, minus interest payments, would allow for $1.16 million of public improvement costs.

The total cost of the project is $9,073,000, with $2.03 million of that possibly generated through TIF funding. That money will be granted to Cabela’s for paying the costs of land acquisition and clearance; paying the costs of street, sidewalk, sewer, electric, storm sewer, lighting and landscaping; costs of any other public or site enhancement expenditures; and to provide other grant assistant to Cabela’s for costs of construction, which is set to begin in the spring and be completed by August 2013.

Cabela’s will be approved for TIF at a 100 percent level for 15 years.

“This certainly does enhance our Main Street program, helps the general business community, and obviously there will be more employees in the downtown area,” Sidney City Manager Gary Person said. “We feel that based on conservative estimates … we should be able to recapture all of the financing, with that burden not going on the taxpayers. This gives us an ideal project to address all of the (community) issues to prepare for the future.”

Site work is estimated to cost $1,955,075, which includes intersection improvements on Illinois at 13th and 14th avenues, signalization at 13th and Illinois, and parking.

Cabela’s building costs will run about $7,118,000, which figures in building renovation at $5,678,000.

The total project area is currently assessed at $649,059 and taxes for the current year are $15,123. Tax revenues from the project are expected to exceed $130,000. Once the TIF revenue bonds are retired, those revenues will be available for the various taxing bodies.

The council, serving in dual capacity as the CDA, first approved the recommendation at the initial meeting, then passed the measure again minutes later during its regular meeting.