Grand Island Citizens Advisory Review Committee Meeting - June 7, 2024

The Citizens Advisory Review Committee (CARC) met on Friday, June 7, 2024, at 2:30 PM to fulfill its duties under the LB 840 Local Option Economic Development Act. The meeting included approval of prior minutes, election of officers, public comment, and presentations from the city attorney, finance director, and economic development director. The committee was briefed on its oversight role, the financial status of the LB 840 fund, and ongoing economic development projects. The committee will prepare recommendations for the next meeting.

Consent Calendar

• Approval of Minutes: The minutes from the September 14, 2023 meeting were approved unanimously (motion by Tom, second by Susan).
• Election of Officers: Tom Rowe was elected Chairman (nominated by Tom, second by Susan, unanimous vote). Susan Bullington was elected Vice Chairman (nominated by Tom, second by Susan, unanimous vote).

Public Comments & Testimony

• Gerald Pools (West Highway 30) spoke against the LB 840 program, calling it a socialist program that wastes taxpayer money. He cited an 84% increase in his property taxes, criticized a proposed 6% utility rate increase that could fund economic development, and questioned the program's transparency. He noted that average annual wages divided by jobs created equaled roughly $16.00 per hour. He expressed concern that subsidies go to companies like Hornady that don't need them.
• Tom Rowe (committee member) responded, stating that studies show every dollar loaned through the program returns ten times to the community through taxes and supporting jobs. He argued the program is necessary for the town to grow and compete, and offered to provide the public member with data.

Discussion Items

• City Attorney Carrie Fisk explained the committee's statutory role as a watchdog and steward of taxpayer dollars. She outlined that the committee must review audits, compare program performance against the adopted plan, and make recommendations to the City Council. The committee can recommend expanding the definition of eligible businesses to include retail, but that is not currently allowed under Grand Island's plan. She emphasized the committee's access to confidential application data and the need to maintain confidentiality.
• Finance Director Brian Schultz presented financials as of May 31, 2024: cash balance of approximately $1.9 million, with city administrative fees of 3%, EDC administrative costs, and LB 840 commitments totaling $1.4 million. The newest commitment is to Vermeer. He noted that the fund is supported entirely by sales tax dollars, and the city follows a pooled cash investment strategy to maximize interest. Finance and EDC jointly audit participating businesses for compliance.
• Mary Burley (Grand Island Area Economic Development Corporation) presented the semi-annual review. Highlights include:
  • Grand Island ranked #22 out of 384 metro areas nationally by Area Development Magazine, #3 in economic indicators, #11 in economic strength, #30 in wage and salary growth.
  • Over 20 years, Grand Island invested $8 million in LB 840 (last 10 years: $4 million), resulting in 2024 direct jobs.
  • Active projects are exceeding contracted jobs and wages: actual employment is 100 more than promised, and wages are $13.33 per hour higher than contracted.
  • Taxable property value increased by $60 million from program participants.
  • New project: Vermeer High Plains will build a 20,000 sq. ft. facility on 8 acres in Platte Valley Industrial Park East, with no other state or local incentives.
  • Housing initiatives: Groundbreaking on 50 new units (first use of Nebraska Trust Funds, $750,000), and the Build Grand Island program (zero-interest construction loans) now totals $5.2 million after new city council allocation of $314,000 in LB 840 funds.
  • Other activities: inland port authority district potential after Highway 30 realignment, grant applications for rail and infrastructure (LB 600), and entrepreneurship competition.
• Committee Role Clarification: Carrie Fisk reiterated that the committee's primary task is to analyze the program and make recommendations to the City Council at the next meeting. Members can request additional resources in advance.

Key Outcomes

• Unanimous approval of the September 2023 minutes.
• Election of Chairman Tom Rowe and Vice Chairman Susan Bullington.
• No formal votes on program or policy changes; the committee will prepare its findings and recommendations for the next meeting (likely within six months).
• Directive: Members are encouraged to read the city's LB 840 program plan (in packet) and submit requests for additional data or resources to the city program administrator (Laura McAloon) before the next meeting.