Regional Planning Director Chad Nabity talks to the Grand Island City Council March 24 about a TIF request for $4,014,535 for the third phase in constructing The Sterling Apartments in the Sterling Estates subdivision. (Carol Bryant, Central Nebraska Today)
GRAND ISLAND – The Grand Island City Council voted 7-1 March 24 to provide $4,014,534 in Tax Increment Financing for the final development phase of Sterling Estates apartments.
City Council member Doug Lanfear voted against the motion. City Council members Maggie Mendoza and Mike Paulick were absent from the meeting.
According to a memo to the City Council from Regional Planning Director Chad Nabity, the property is located east of North Road and south of Capital Avenue.
TS25, LLC, is proposing to build 120 apartment units across four buildings.
Grand Island attorney Zach Butz, representing the apartment developers, said that the TIF financing was mandatory in order to pay for the project.
“Phase one and two of the development were completed without the use of Tax Increment Financing,” Nabity wrote. “Due to the rising cost of development, phase three was deemed not feasible. No development has occurred at this site since 2017.”
The proposed development would begin in April 2026 and is expected to be completed in 2028. The project is expected to cost $20,180,589 with a final estimated valuation of $15,450,681, Nabity wrote.
Butz said that the current apartments have a 98 percent occupancy rate.
City Council member Mitch Nickerson said that at some point, the City Council would reach a “tipping point” for approving Tax Increment Financing.
Nabity said that the city has approximately 14,000 single-family dwellings, and recently only 16 homes were listed for sale. The estimated number of apartments is 22,800.
In other action, the City Council voted 8-0 to approve purchase of a UV disinfection system for the Grand Island Wastewater Treatment Plant. The current system is nearing the end of its useful life and was installed in 2005. A request for proposals was published on Feb. 25. One proposal was received and opened on March 10.
Trojan Technologies Corp. of London, Ontario, submitted the bid. An agreement has been reached for a price of $1,205,115. Trojan Technologies Corp. was designated as the single source provider for Trojan UV systems parts, materials, and service for the proposed system.
The City Council voted 8-0 to approve a $50,000 funding request through keno funds from the Railside Business Improvement District for a downtown speaker system. The system would replace three or four speakers along each linear block between Elm and Sycamore on existing pedestrian lighting. Railside has secured $25,000 in funding from the Convention and Visitors Bureau and $50,000 from the Community Redevelopment Authority. The five-year-old system was installed in three locations between Sycamore and Elm in 2021. City Council member Jack Sheard said that having a good speaker system “creates a vibe” downtown. City Council member Mark Stelk noted that good communication through use of the speaker system was important in case of inclement weather.