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Lexington city council self-storage redevelopment plan

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Phase one, which will begin in June of 2022, will include the construction of 3 separate self-storage buildings consisting of 27,000 square feet.

LEXINGTON — The Lexington city council approved a re-development agreement for self-storage units on the southeast side of town during their meeting on Tuesday, June 14.

The lots in question are south of Commerce Road, east of Eilers Machine & Welding, both are each four acres.

Hamilton Builders, LLC, has expressed interest in creating self-storage units on the lots. According to the Nebraska Secretary of State site, Hamilton Builders is registered to Jodi Hamilton of North Platte.

Both Jodi and P.J. Hamilton were in attendance at the meeting, represented by Gothenburg attorney, Colten Venteicher.

Venteicher said the project will create 73,000 square feet of self-storage facilities in a three phase project, with additional facilities that could be constructed in the adjacent 4.5 acre lot in phase four.

The facility would be paved, featuring outdoor storage with overhead doors, perimeter fencing and significant outdoor lighting for security, Venteicher said.

The initial plan is to add 150-200 storage units on the east lot first and then possibly create storage for larger items, recreational vehicles as an example, on the west lot in the future.

“Phase one, which will begin in June of 2022, will include the construction of 3 separate self-storage buildings consisting of 27,000 square feet. Phase two, which is anticipated to begin in 2023, will consist of four separate storage buildings consisting of 36,000 square feet. Phase three, which is anticipated to begin in 2025, will consist of one 10,000 square foot storage building containing larger 20 by 50 feet self-storage units,” according to the redevelopment plan.

The total cost of the first three phases is estimated to be $2,815,000.

Venteicher said Hamilton Builders is seeking $650,000 in tax increment financing (TIF) to complete the project.

“Given supply chain issues and the current inflationary period impacting cost of materials and interest rates…this project would not be feasible without the use of TIF and will not be financed without a grant funded by tax increment financing,” the redevelopment plan states.

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When asked by council members, P.J. Hamilton said he had the buildings ordered and the fencing purchased. He said he is waiting for final approval but is ready to move on the project.

Hamilton said he anticipates around 10 days of dirt work and then will have TL Sund pour the concrete pads.

The council approved the redevelopment plan. With the approval, the plan will return one final time before the Lexington Community Development Agency for approval.

The next agenda item was a development agreement between the City of Lexington and Dawson County.

Both the city and the county have been discussing the possibility of a land swap. The city would take over the county Road Department building on the corner of W. 8th and Ontario St., while the county would take over a 10 acre tract near E. Prospect Road and Road 434 so they can build a new road building.

The Dawson County Commissioners had some questions about the exact wording of the agreement and took no formal action during their June 1 meeting.

City Attorney Brian Copley asked that the item be tabled until the next meeting while he continues to work with Deputy County Attorney Katherine Kühn on the agreement. The council approved.

Paulsen, Inc. presented closeout documents for the 18th St. and Kirkpatrick Memorial Park paving improvements project, including a third and final pay request for $29,338.93, a change order subtracting $2,969.50 and the certificate of substantial completion.

City Manager Joe Pepplitsch said engineering certified the work and the council approved all three documents.

Another pay request came from Walters-Morgan Construction for the 2021 Wastewater Facility Improvements project in the amount of $128,657.61. Pepplitsch said this ninth payment is a progress payment and that the work at the facility is around 30 percent complete. The council approved the request.

The last agenda item was a contract request for provisions of services to senior citizens for fiscal year 2023 with the West Central Nebraska Agency on Aging, which the council approved.

The council then entered executive session for 45 minutes to discuss real estate negotiations. No formal action was taken after the meeting.

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