GRAND ISLAND – Grand Island’s City Council voted 8-0 Tuesday, July 23, to approve Tax Increment Financing for a project that would add a hotel and restaurant/bar in southwest Grand Island.
Council members Michelle Fitzke and Mark Stelk were absent from the July 23 meeting. The project requested by developer Innate 2 is located north of Husker Highway and west of Prairieview Street.
The Tax Increment Financing for the $30 million project is $5,761,697 over a 15-year period, according to a memo from Regional Planning Director Chad Nabity to City Council. The project will have a final estimated valuation of $20 million.
Developer Chad Rief of Grand Island and hotel owner Paul Younes of Kearney spoke in favor of the project. It was asked whether Grand Island already had enough hotel rooms.
Younes responded, “The competition is good for everyone.” He pointed out that a lot of hotel rooms are needed for events such as the Nebraska State Fair and Husker Harvest Days.
Gerald Poels of Grand Island pointed out that land for the project had already been purchased before Tax Increment Financing was approved.
In another matter, the City Council voted 8-0 to approve having the city participate in direct negotiations with NorthWestern Energy regarding its application to the Nebraska Public Service Commission for a natural gas rate increase.
On June 6, Northwestern Energy filed an application for a natural gas rate increase with the Nebraska Public Service Commission that would increase residential natural gas bills by 7.44 per cent and commercial natural gas bills by 3.66 percent.
The communities affected besides Grand Island are the city of Kearney, the city of North Platte, and the village of Alda.
A rate application has not been filed since 2007.
The City Council voted 8-0 to participate in direct negotiations with NorthWestern Energy. Also, the City Council voted 8-0 to approve an interlocal cooperation agreement with the city of Kearney, city of North Platte, and village of Alda regarding direct negotiations of rate changes with NorthWestern Energy. Each City Council would retain the ability to approve any proposed settlement agreements concerning the the issue.
In another matter, Jaime Parr of the Nebraska State Fair gave a presentation about the 2024 Nebraska State Fair. Under the consent agenda, which was approved by an 8-0 vote, the City Council approved an interlocal cooperation agreement between the city and the State Fair. By approving the agreement, the city will have two sponsored days at the 2024 Nebraska State Fair. Aug. 25 will be titled “Welcome to Grand Island Day, and Sept. 1 will be labeled “Come Back to Grand Island Day.
According to a memo from Communications Manager Spencer Schubert to the City Council, on those days, city staff and city partners will greet fairgoers at the front entrance while also providing a variety of marketing materials including logo branding and public address announcements at the fair on the days of the sponsorships.
Next, the Railside Business Improvement District met on June 26 and approved a 2024-2025 budget that provides for a total special assessment of $151,478, which is a 6 percent increase of the 2024 special assessment. The City Council voted 6-0-2 to approve the increase and the 2024-2025 annual budget. Council members Mitch Nickerson and Jack Sheard abstained from voting on the issue. According to a memo from Finance Direct Matthew Gleason to the City Council, the change in assessment value will add $8,574 of revenue to the 2024-2025 budget. The Railside improvement District was established in 2018.
The City Council also considered a special assessment for the 4th Street Business Improvement District. The 2024-2025 budget provides for a total special assessment of $40,000. The Business Improvement District was created in 2023. The budgeted assessments of $40,000 will be charged to property owners in the district based on their valuations. The City Council approved the special assessment and annual budget by an 8-0 vote