05/06/2008 MinutesCITY OF GRAND ISLAND, NEBRASKA
MINUTES OF CITY COUNCIL STUDY SESSION
May 6, 2008
Pursuant to due call and notice thereof, a Study Session of the City Council of the City of Grand
Island, Nebraska was conducted in the Council Chambers of City Hall, 100 East First Street, on
May 6, 2008. Notice of the meeting was given in the Grand Island Independent on April 30,
2008.
Mayor Margaret Hornady called the meeting to order at 7:00 p.m. The following members were
present: Councilmember's Brown, Haase, Zapata, Nickerson, Gericke, Carney, Gilbert, Ramsey,
Niemann, and Meyer. The following City Officials were present: City Administrator Jeff
Pederson, City Clerk RaNae Edwards, City Attorney Dale Shotkoski, Public Works Director
Steve Riehle, and Finance Director David Springer.
INVOCATION was given by Mayor Hornady followed by the PLEDGE OF ALLEGIANCE.
Discussion ConcerningLState Fair Funding, and Infrastructure. Jeff Pederson, City Administrator
introduced the item and purpose of the Study Session. Dale Shotkoski, City Attorney reviewed
LB-1116 that was approved by the State Legislature and signed by Governor Heinemann to
move the Nebraska State Fair to Grand Island in the year 2010. The state fair would be located at
Former Park and would require several new buildings, upgrades and refurbishment of existing
facilities and enhanced infrastructure to the utilities and streets. A fund of $42 million was to be
provided with $8.5 million funded by local sources. $3 million needed to be raised by October 1,
2008, $6 million by February 1, 2009 and $3.5 million by July 1, 2009. Mr. Shotkoski stated the
community of Grand Island would be required to raise the money.
Discussion was held on the cooperation and coordination of financial participation of new
construction and other capital improvements at Former Park. Representation of the City on the
Nebraska State Fair Board was discussed.
Ray Aguilar, 706 Grand Avenue commented on the State Fair Board representation which was
an appointed position.
David Springer, Finance Director covered the cost and financing of the State Fair. The following
options were presented:
Option #1: City and County Bonds; 75%/25% 7 yrs @3.25%
Option #2: City and County Bonds; 75%/25% 10 yrs @3.60%
Option #3: Facility Corp Bonds - No City/Co. 5 yrs @ 3.0%
Mr. Springer stated a food and beverage tax could be used to service the $5 million bonds. The
city would have to match 10% of lottery funds. Bond rates right now were very good. Mr.
Springer stated timing was of the essence if the Council decided to go with a bond.
Page 2, City Council Study Session, May 6, 2008
Mr. Springer stated the increased sales tax, food and beverage tax if implemented would help the
economy in Grand Island. Appr-oximately $200,000 to $400,000 in sales tax could be expected.
Cindy Johnson stated the economic benefits to Grand Island would be hard to compare with that
of Lincoln. Jay Vavricek commented on a marketing report in 2006. He stated this was an
economic catalyst for the City of Grand Island. Attendance was discussed along with projections.
Mr. Springer stated there had been no formal discussions with Hall County. Donald Dunn stated
the group working to get LB-I I16 passed would be meeting with the County Board to give a
presentation. The county was restricted in certain ways of raising monies but may have lottery
funds available in the future.
The question of a business plan and/or marketing plan was discussed. LB-1116 stated the
Nebraska State Fair was to be based upon a dynamic public-private partnership that included the
active participation of the state and local governments, the private sector, and the citizens of
Nebraska. Mr. Dunn commented on the responsibility of the State Fair Board, the Nebraska State
Fair Relocation Cash Fund, and sponsorships to the State Fair. Funding from surrounding
communities was discussed.
Budget impacts with regards to Police, Fire etc. were discussed. Mr. Dunn stated the State Fair
Board would cover law enforcement costs on the State Fair grounds. Intangible benefits were
discussed regarding the number of opportunities available in having the State Fair in Grand
Island.
Marlan Ferguson, Economic Development Corporation President commented on the impact to
economic development the State Fair would provide to Grand Island. He stated it would help sell
the community to other companies wanting to locate here.
Steve Riehle, Public Works Director commented on project costs that could be used toward the
$8.5 million. match from the community. Mr. Dunn stated if money was budgeted for a specific
project on the Former Park grounds it would be counted toward the $8.5 match.
Gene Graves, 1711 South Stuhr Road commented on the importance of the
facilities/infrastructure needed to have a successful State Fair. Mr. Graves hoped we could look
at this as an investment.
Lewis Kent, 624 East Meves spoke in opposition and wanted the council to put this to a vote of
the people.
Scott Zana, 209 Lakeside Drive representing the Food and Beverage industry spoke in favor of
the tax. The restaurants as a whole wanted to get this started right away with a sunset clause
included. He suggested a 1.5% tax for 5 years on food and beverage to service the $5 million
bond.
Discussion was held regarding ongoing operational costs, funding above the $5 million, and
ownership of facilities.
Page 3, City Council Study Session, May 6, 2008
Barry Sandstrom, 2117 West Charles Street, ex-oi~cio Fonner Park board member commented
on the commitment of Fonner Park to make this move forward. Ultimate responsibility of the
infrastructure would fall on Fonner Park.
Dale Shotkoski, City Attorney stated if it was the wish of the council we could bring forward a
resolution at the next council meeting to go forward with pursuing the bond funding for the
relocation of the State Fair.
ADJOI;JJEtNMENT: The meeting was adjourned at 9:05 p.m.
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RaNae Edwards
City Clerk
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