Mary Bernie, president of the Grand Island Area Economic Development Association, gives a semi-annual report to the Grand Island City Council on June 25, (Carol Bryant, Central Nebraska Today)
GRAND ISLAND – Grand Island’s City Council heard a semi-annual report Tuesday, June 25, from Mary Berlie, president of the Grand Island Area Economic Development Corp. (GIAEDC)
Berlie showed a slide listing projects funded by LB 840 since 2014. The Local Option Municipal Economic Development Act (LB840, 1991) authorizes incorporated cities and villages to collect and appropriate local tax dollars, including sales and/or property tax, for economic development purposes.
“LB840 truly serves as seed money,” Berlie said.
Projects funded in 2024 were Build Grand Island for $314,242 and Vermeer High Plains for $525,000.
According to the GIAEDC website, the goal of Grand Island Area Economic Development Corporation (GIAEDC)’s Build Grand Island program is to leverage Rural Workforce Housing Funds (RWHF) from the Nebraska Department of Economic Development to assist area housing developers to revitalize, rehabilitate, and add to the housing stock in the Grand Island area. Build Grand Island had these amounts: 2022, $2 million; 2023, $1,675,000; and 2024, $1,570-957 for a total of $5,245,957.
Later in the meeting, the City Council discussed another matter concerning GIAECD. On Feb. 3, 2024, the city and GIAEDC entered into a contract to compensate GIAEDC for the administrative services it provides to the city for the LB840 economic development program. As the year has progressed, the two entities have determined that there are additional administrative expenses not included in the initial contract price of $272,900.
The additional expenses were for site selector payments, advertising and marketing expenses related to the economic development program, and additional software subscriptions. In City Administrator Laura McAloon’s memo, an additional payment of $40,240 was recommended, for a total annual payment of $313,140. The City Council voted 9-0 to provide the increased payment of $40,240. Council member Jack Sheard was absent Tuesday.
Chief Financial Officer Patrick Brown gave a financial review. The anticipated casino tax revenue for FY25 (Oct. 1, 2024, through Sept. 30, 2025) is $1.2 million. The gross casino tax is 20 percent of the Casino’s Gross Gaming Revenue. The 20 percent is then divided as follows:
*The State General Fund receives 2.5 percent of the 20 percent.
*Compulsive Gamblers Assistance Fund receives 2.5 percent of the 20 percent.
*Property Tax Credit Case Fund (State Fund) receives 70 percent of the 20 percent.
*The City of Grand Island receives 12.5 percent of the 20 percent.
*Hall County receives 12.5 percent of the 20 percent.
The city’s share of the Casino Tax is deposited into the General Fund for General Governmental Operations.
For FY2024, the budgeted Casino Tax was $750,000, and the actual tax was $553,324.
In other business, the City Council voted 9-0 to approve a zoning change for Millennial Estates Third Subdivision located north of 13th Street and west of Claude Road from R2 Low Density Residential to R4 high Density Residential Zone.
