Grand Island’s City Council discussed the effects of LB707 on Grand Island for its Good Life District, (Carol Bryant, Central Nebraska Today)
GRAND ISLAND – “The state giveth, and the state taketh away.”
That’s how Grand Island City Council President Jack Sheard summarized at the June 10 City Council meeting the effects that LB707 would have on the Good Life District in Grand Island.
According to a memo to City Council from City Attorney Kari Fisk, “Grand Island had anticipated approximately $7.6 million annually in revenue generated by existing businesses and retail sales levels and the local funds available from existing retail businesses and sales is now capped at $5 million annually.” The Legislature passed LB707 on June 2.
The Good Life District provisions cover a 30-year period, so Grand Island would receive a total of $150 million.
Previously, from Oct. 1, 2024, to May 31, 2054, the city would have imposed a Good Life District Occupation Tax in the amount of 2.75 percent on all establishments located within the Good Life District Program Area.
City Administrator Laura McAloon said that Woodsonia Real Estate of Elkhorn, which wants to develop the Good Life District, is having its attorney study LB707 and determine the effects on the business.
McAloon said that the city, for instance, could issue an RFP just for a sports complex to be constructed in the Good Life District area north of Capital Avenue.
In a memo to City Council, Fisk wrote that the state Tax Commissioner will allocate a portion of the State Sales Tax, with certain exclusions, for use as a local source of revenue for the City’s Good Life District.
LB707 “removes certain revenue options available under the original act and clarifies provisions surrounding the use of a general business occupation tax.”
She wrote that “nothing in the Good Life District Economic Development Act authorizes the use of eminent domain to acquire property for the purpose of giving or selling such property to a private individual or corporation.”
LB707 removes the ability to add property to the Good Life District or expand its boundaries. Boundaries may be reduced through a public process for the impacted property owners and with the mutual consent of the applicant and the city.
The legislative bill “creates a cap of 20 percent of disbursements from the program for nonrevenue producing costs.”
LB 707 “allows the city to designate a portion of its local option sales and use tax as a local source of revenue for the District,” Fisk wrote.
She recommended that amendments to the City’s Good Life District Economic Development Program will need to be created prior to Oct. 1, 2025, to address changes in funding and other program restrictions.
“Any distributions considered prior to Oct. 1, 2025, should be reviewed carefully to ensure that they are consistent with the provisions of LB707,” Fisk wrote.
Sheard asked whether the state would refund the cost of the local September election for the Good Life District. The answer was no.
“We still want a sports complex. We still want an aquatics center,” Sheard said.
“ My advice is that we go forward as soon as possible,” Sheard said.
City Council member Mitch Nickerson said, “I don’t see a $5 million cap as being a deal breaker.”
Nickerson asked if Woodsonia pulled out, whether there would still be a Good Life District Program. The answer was yes.
The reduction to $5 million a year “doesn’t sound as ominous as it appears,” Nickerson said.
“It’s very clear that the community wants this sports complex,” he said.
Nickerson said there needs to be a reasonable time limit set for Woodsonia to make a decision about its involvement.
City Council member Chuck Haase said he was grateful for the $150 million in 30 years.
“I think we need to move faster than slower,” he said. He does not want to wait until the next Legislative session starts before proceeding.
City Council member Mark Stelk said he wanted to be transparent with the voters of Grand Island. He said he would really support the sports complex.
“It’s still an incredible opportunity,” he said.
City Council member Ryan O’Neill said that voters wanted a “transformational project.”
City Council member Doug Brown said he also supported getting a sports complex and aquatics center in the Good Life District.
