Presentation on theme: "ENGAGE & PARTICIPATE Cities compete every day to get businesses to locate or expand in their jurisdiction. Some cities win the competition, some cities."— Presentation transcript:
ENGAGE & PARTICIPATE Cities compete every day to get businesses to locate or expand in their jurisdiction. Some cities win the competition, some cities lose….. and many cities never know they were in the battle!
WHY WOULD BUSINESSES LOCATE IN BELLEVUE? Low Utility Costs Strong Work Ethics Low Cost of Living Educated Workers Quality of Life
WHY NOT BELLEVUE? Lack of large “pad site ready” parcels Lack of Business Incentives Lack of Industry Diversification
LOCAL OPTION MUNICIPAL ECONOMIC DEVELOPMENT ACT – LB 840 Constitutional and legislative prohibitions prevent cities from investing local public funds in development programs. LB 840 removed these limitations and provided municipalities greater latitude in determining and acting upon local needs. Economic diversification is a critical priority for the City of Bellevue through recruitment of new business in the Highway 34 Corridor.
HIGHWAY 34 CORRIDOR
The core of the LB 840 process involves formulation of a local economic development program. Bellevue City Council approved program August 25, Voters determine approval of plan November 4, LOCAL OPTION MUNICIPAL ECONOMIC DEVELOPMENT ACT – LB 840
ELIGIBLE ACTIVITIES Any project or program for the purpose of providing direct or indirect financial assistance to a qualifying business, or for related costs and expenses
EXAMPLES OF ELIGIBLE ACTIVITIES Construction of Infrastructure Improvements Purchase Real Estate for Development Loans, Grants, and Loan Guarantees for Qualifying Businesses Job Training Grants and Loans Recruit New Businesses, Promote Expansion of Current Businesses
QUALIFYING BUSINESSES Manufacturing Research and Development Processing, Storage, Transport, Sales of Goods or Commodities Headquarter Facilities Telecommunication Facilities Tourism-related activities Retail
SOURCE OF FUNDS Existing City Sales Tax, Lodging Tax, Occupancy Tax, and Real Estate Tax Additional Funds from Non-City Sources (i.e., grants) No New Taxes unless Approved by Voters
COMMUNITIES USING LB 840 Ainsworth Albion Alliance Arapahoe Arnold Atkinson Bayard Beatrice Beaver City Beemer Blair Burwell Cambridge Central City Chadron Clearwater Columbus Cozad Crete Crofton Curtis Doniphan Fairbury Falls City Fremont Geneva Gering Gothenburg Grand Island Hartington Holdrege Imperial Kimball LaVista Lexington Louisville Loup City McCook Milford Mitchell Nebraska City Neligh Norfolk North Platte O’Neill Ord Oshkosh Plattsmouth Ravenna Sargent Schuyler Scottsbluff Seward Sidney South Sioux City St. Paul Stromsburg Superior Sutton Tecumseh Valentine Wakefield Wayne West Point
LB 840 SUCCESS STORIES Local TotalJobs CityIncentiveInvestmentCreated Beatrice$610,000$28,000, new (ACCUMA) Rail Spur56,000 sq. ft. bldg.$10-$15/hour Blair$1,000,000$400,000, new (Cargill) Land & Utilities$30,000 avg. Salaries Scottsbluff$500,000$1,000, new (OROCOM) $9 -$16/ hour Sidney$500,000$10,000,0001,200 jobs (Cabela’s) retained
BELLEVUE’S ECONOMIC DEVELOPMENT PROGRAM Targets the Highway 34 Corridor District with the following purpose & goals: Create new jobs Generate employment opportunities Attract a variety of new businesses Attract new capital investment Broaden the tax base Expand the labor market
HIGHWAY 34 CORRIDOR
BELLEVUE’S ECONOMIC DEVELOPMENT PROGRAM Goals to be achieved in Highway 34 Corridor: Construct infrastructure improvements in Hwy 34 Corridor Provide grants to qualifying businesses Establish loan fund for use by qualified businesses Purchase real estate for development Promote development of the new Hwy 34 corridor as an industrial area
SOURCE OF FUNDS FOR BELLEVUE PROGRAM Existing City Sales Tax, Lodging Tax, Occupancy Tax, and Real Estate tax No new taxes City may contribute an amount not to exceed $375,000 for any on-half year and $750,000 per year if budgeted
DOES BELLEVUE HAVE POTENTIAL FUNDS?
WHEN APPROVED AT ELECTION The Economic Development Program is established by ordinance Appointment of Citizen’s Advisory Review Committee Establish an Economic Development Fund City Council determines whether to provide funds in the annual budget
WHAT IF WE DON’T APPROVE PROPOSITION 1? Bellevue remains limited on economic development tools - Other Communities with LB 840 possess a valuable advantage in business retention and recruitment No new industrial growth likely, and continued loss of business development which could result in: - Increased property taxes - Loss of services - Limited employment opportunities - Deterioration of educational opportunities Highway 34 infrastructure improvements remain unfunded