7/18/2024 Minutes CITY OF
GRAND ISLAND
City Council Meeting Minutes
Council Chambers
City Hall
100 East First Street
Special Session of July 18, 2024
7:00 PM
1. CALL TO ORDER
Mayor Roger Steele called the meeting to order at 7:00 p.m.
2. PLEDGE OF ALLEGIANCE
3. ROLL CALL
The following City Officials were present: City Administrator Laura McAloon, City Clerk Jill
Granere, Assistant City Administrator/CFO Patrick Brown, Finance Director Matthew Gleason
Public Works Director Keith Kurz and City Attorney Kari Fisk.
The following City Council Members were present: Maggie Mendoza,Bethany Guzinski, Chuck
Haase,Mike Paulick,Michelle Fitzke,Mitchell Nickerson,Doug Lanfear andJason Conley.Mark
Stelk and Jack Sheard were absent.
4. SUBMITTAL OF REQUESTS FOR FUTURE AGENDA ITEMS
5. RESERVE TIME TO SPEAK ON AGENDA ITEMS
6. Good Life District Economic Development Program Election
Cover Page
Resolution
Boundary Map
City Administrator Laura McAloon reported on December 19, 2023 the City Council approved
Resolution No. 2023-329 at the request of Woodsonia Real Estate, Inc., stating the City's support
of the filing of an application with the Nebraska Department of Economic Development (DED).
Woodsonia's application to DED requested the State's approval of a Good Life District in the
northwest area of Grand Island, generally covering an area along Highway 281 from 13th Street
to Capital Avenue and largely undeveloped land from the intersection of Capital Avenue and Webb
Road to the intersection of Highway 281 and Broadwell Avenue (Eagle Scout Lake).
Woodsonia's application was formally approved by DED on June 5, 2024 and the Department of
Revenue(DOR)notified the City that the state's sales tax rate of 5.5%will be reduced on October
1, 2024 to a rate of 2.75% within the area of the Good Life District (GLD) included within City
limits. The GLD and the related reduction of the state sales tax rate is expected to exist until June
2054. The State's creation of a Good Life District in Grand Island creates an opportunity for the
citizens of Grand Island to vote on the establishment a Good Life District Economic Development
Program (Good Life EDP) within the same geographic area where the State had reduced its sales
Page 2 of 3,City Council Study Session,June 18,2024
tax rate. But first, voters must weigh in on whether to allow the City to establish such a Program
and impose a "replacement" local sales tax and/or occupation tax.
McAloon reported the 2024 legislation authorized the City to establish a local"replacement"sales
tax and/or occupation tax to recoup the eliminated state sales tax for a new Good Life EDP. The
funding could be utilized for development costs anywhere in Grand Island's Good Life District.
The legislation gives the City broad authority over how those funds are used locally within the
Good Life District. If approved, the City Council may establish a Good Life EDP for the portion
of the Good Life District within the City or as it may be expanded by DED in the future. If the
creation of a Good Life EDP is approved by the voters, the City Council could impose either or
both of the following for the Program within the portion of the GLD located inside City limits:
• Local option sales tax of 2.75%(to replace the sales tax given up by the State).
• Occupation taxes, similar to the occupation tax approved for the former Conestoga Mall.
These sales and/or occupation taxes are in addition to the City's local option sales tax,which would
not be reduced in the Good Life District. Also, the City would have the discretion to dedicate a
portion of the City's local option sales tax collected in the Good Life District if determined
beneficial to the City.
If the Voters approve the ballot question,the City would adopt a program ordinance to govern the
Good Life EDP. The program ordinance was expected to include requirements, guidelines, and
expectations for every developer and property owner to meet in order to access Program benefits.
Because the Good Life District was established with certain goals of the State in mind, not every
development idea or plan would be approved for benefits from the Program. Good Life EDP funds
could be used to pay for both public and private improvements within the area of the GLD or
public infrastructure that benefits the development within a GLD.
The Legislature made sure the program being considered by the voters remains available to any
property owner or developer in the Good Life District who meets the program requirements
established by the City. The City would need to use the program as intended by the Legislature: to
help spur the type of transformational development envisioned for the Good Life District by the
State when it approved Grand Island's Good Life District.
If the voters do not approve the creation of a Good Life EDP,the City Council has no authority to
"recapture"the State's foregone sales tax.The State will reduce it's sales tax rate by half on October
1, 2024 regardless of whether Grand Island citizens approve the creation of a local economic
development program. Therefore, the combined state and local sales taxes paid by consumers
within the approved Grand Island GLD will be lower than sales taxes collected by businesses
located elsewhere in the City.
Based on the State's approval of a Grand Island Good Life District and the new economic
development opportunities provided by the Legislature to cities with a good life district, City staff
and bond counsel have prepared an election resolution for the Council's consideration. The
resolution calls for a special election for August 13, 2024 to allow Grand Island citizens to vote
on whether the Council should be authorized to establish a Good Life EDP within the approved
boundaries of the GLD and impose local sales or occupation taxes that would recapture the State's
Page 3 of 3,City Council Study Session,June 18,2024
foregone sales tax rate of 2.75% for the City's use in facilitating economic development, growth
and opportunity for all property located within the GLD.
Gerald Poels spoke in opposition.
Jay Vavricek spoke in favor.
Motion by Chuck Haase, second by Jason Conley to approve. Roll Call: Ayes: Maggie Mendoza,
Bethany Guzinski, Chuck Haase, Mike Paulick, Michelle Fitzke, Mitchell Nickerson, Doug
Lanfear, Jason Conley. Jack Sheard and Mark Stelk were absent. Motion adopted.
7. ADJOURNMENT
The meeting was adjourned at 7:32 p.m.
J. Granere
City Clerk