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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Grand Island City Council Special Meeting – June 18, 2024: Good Life District Election Resolution

City Council — Tuesday, June 18, 2024

BodyGrand Island, Nebraska

SessionCity Council

DateTuesday, June 18, 2024

StatusFILED

Video Record

0:00 / 32:39

Transcript — VerbatimClick a timed line to jump · ⧉ to share it

0:16

Welcome to our meeting.

0:18

The date is June 18, 2024.

0:21

The time is 7 p.m.

0:23

This is an open meeting of the Grand Island City Council.

0:27

The City of Grand Island abides by the Open Meetings Act in conducting business.

0:31

A copy of the Open Meetings Act is displayed in the back of this room as required by state law.

0:37

The City Council may vote to go into closed session on any agenda item as allowed by state law.

0:45

Please stand and join me in the Pledge of Allegiance.

0:51

I pledge allegiance to the flag of the United States of America.

0:56

And to the Republic for which it stands.

1:00

One nation under God and divisible with liberty and justice for all.

1:09

The city clerk will now perform roll call.

1:12

Councilmember Mendoza.

1:14

Present.

1:14

Councilmember Kaczynski present.

1:16

Councilmember Hazi.

1:18

Present.

1:18

Councilmember Sheard will be absent.

1:20

Councilmember Pollack?

1:22

Present.

1:22

Councilmember Fitzkey.

1:24

Present.

1:24

Council President Stelk will be absent.

1:27

Councilmember Nickerson?

1:28

Present.

1:29

Councilmember Lanfair?

1:30

Present.

1:31

Councilmember Conley.

1:32

Present.

1:33

And Mayor Steele.

1:34

Present.

1:35

Also present or Jill Grenier.

1:38

The City Clerk.

1:39

Laura McAloon, the city administrator.

1:42

Patrick Brown, the assistant city administrator, Carrie Fisk, the city attorney, and Matthew Gleason, the finance director.

1:52

Individuals who have appropriate items for city council consideration should complete the request for future agenda items form located at the information booth.

2:02

If the issue can be handled administratively without council action, notification will be provided.

2:10

If the item is scheduled for a meeting or study session, notification of the date will be given.

2:33

State your name and the agenda topic on which you will be speaking.

2:45

Good evening.

2:57

Thank you.

3:10

Thank you.

3:10

Thank you.

3:23

We will now take up six resolutions 6A, Good Life District Economic Development Program Election.

3:33

Mrs.

3:33

McAloon.

3:34

Thank you, Mayor.

3:36

Council, on June 5th, the Department of Revenue notified the city that our sales tax rate would be changing effective October 1st, or at rather the state sales tax rate would be changing October 1st of this year in a portion of the city because the Woodsonia real estate application for a good life district has been approved by the Department of Economic Development.

4:01

So with that approval, the state then uh reduces its state sales tax by half from 5.5% to 2.75%.

4:12

What that does, and that's what has triggered uh the uh special meeting tonight on short notice for you all, um what that does is that um creates an opportunity for the city to ask the voters to approve a good life district economic development program as our bond council Mike Rogers recently briefed us on, luckily.

4:37

Um it allows you to call that special election and ask the voters whether you as a city council should create that economic development program.

5:00

And what that economic development program would do is it would authorize the city council to impose a local tax, either a sales tax or an occupation tax, and a rate not to exceed the 2.75 percent that the state has foregone and recapture those funds and keep them in the city of Grand Island, using them for economic development programs within the boundaries of the good life district, or on public infrastructure that benefits and serves the good life district.

5:18

So the first opportunity, and one of only two opportunities remaining in 2024 for an election is the August 13th special election date.

5:30

So what we have done with Mike Rogers' assistance uh is we've prepared a resolution for your consideration calling that special election.

5:41

We um I have spoken with the county elections office, and they are aware that there's a possibility that the city would be calling a special election tonight.

5:53

They are ready and prepared to go forward with that, and um, it's up to the city council to make the decision whether to go forward and approve that resolution.

6:14

Do you want to do a motion?

6:18

Councilmember Hawsey has a motion.

6:23

Thank you, Mayor.

6:24

I would move to approve the good life district economic development program call for an election.

Discussion Breakdown — Share of Meeting

Economic Development█████████████████████████████████████████████73%

Public Engagement██████████16%

Procedural████7%

Public Finance██4%

Summary of Proceedings

Grand Island City Council Special Meeting – June 18, 2024

This special meeting of the Grand Island City Council was convened at 7:00 PM on June 18, 2024, to consider a single agenda item: a resolution calling a special election to authorize the creation of a Good Life District Economic Development Program. The council heard public testimony, debated the merits of the proposal, and ultimately voted to approve the resolution, setting the special election for August 13, 2024.

Public Comments & Testimony

One member of the public spoke in opposition: The speaker criticized the special election, arguing it would be poorly attended compared to a general election and that the proposal was a “scam” benefiting corporations at taxpayer expense. He expressed concern about taxpayer-funded subsidies and urged the council to place the measure on the November general election ballot.
Former Mayor Vavrchek spoke in support: He praised the council’s leadership and called the Good Life District a “gigantic opportunity” for economic development, tourism, and job creation, comparable to past successful initiatives like the state fair. He noted that the state would reduce its sales tax by half, allowing the city to recapture the 2.75% for local projects, and that the boundaries could be expanded for broader community benefit.

Consent Calendar

No consent calendar items were on the agenda.

Discussion Items

Resolution 6A – Good Life District Economic Development Program Election: City Administrator Laura McAloon explained that the Nebraska Department of Revenue had certified a sales tax rate change effective October 1, 2024, due to the approval of a Good Life District application by Woodsonia Real Estate. The state’s sales tax will drop from 5.5% to 2.75% within the district. To capture that revenue, the city must create an Economic Development Program, which requires voter approval. The resolution calls a special election on August 13, 2024, one of two remaining dates in 2024.

Council members and the mayor discussed the following:

Councilmember Nickerson emphasized that the proposal is “no tax increase” — it simply redirects state revenue to local development. He displayed a map of the district (bounded by Highway 281, 13th Street, Capitol Avenue, Claude/Webb, and Broadwell) and noted the area is mostly undeveloped.
Councilmember Kaczynski (spoke as “Mr. Hossee” in transcript) called it a “once in a lifetime” opportunity and noted that only five communities in Nebraska are eligible.
Councilmember Pollack (Ms. Gazinski) expressed concerns about corporate subsidies but supported sending the question to voters because there is no immediate economic impact on citizens. She cautioned that the developer’s original request included a higher tax ask, and that an extra tax could still be imposed.
Councilmember Lanfair agreed with concerns about taxpayer subsidies but supported the special election as a way for citizens to have a direct voice.
Councilmember Nickerson also requested clarification of the ballot language, which was read aloud: it asks voters whether the city may establish a Good Life District Economic Development Program and appropriate local option sales/use and occupation taxes collected within the district (excluding property taxes and taxes from outside the district). City Attorney Carrie Fisk confirmed that the city, not the developer, controls the funds and may use them for public infrastructure serving the district.

Mayor Steele concluded by reiterating that the vote does not create a new tax; it simply allows the city to capture the state’s foregone sales tax for local needs like roads, sewers, and water lines. He praised the council’s action as a “historic vote” for local control.

Key Outcomes

Motion and Vote: Councilmember Hawsey moved to approve the resolution calling for a special election; Councilmember Conley seconded. The motion carried (no formal roll call was recorded in the transcript, but the mayor stated “Motion adopted” and congratulated the council).
Decision: The council approved the resolution to call a special election on August 13, 2024, for voters to decide whether to establish a Good Life District Economic Development Program.
Next Steps: The city will conduct the special election by mail-in ballot, as permitted by state law. The ballot language will be as presented in the resolution. The city also posted a map, the resolution, and an FAQ on its website for public education.

Meeting Transcript

Welcome to our meeting. The date is June 18, 2024. The time is 7 p.m. This is an open meeting of the Grand Island City Council. The City of Grand Island abides by the Open Meetings Act in conducting business. A copy of the Open Meetings Act is displayed in the back of this room as required by state law. The City Council may vote to go into closed session on any agenda item as allowed by state law. Please stand and join me in the Pledge of Allegiance. I pledge allegiance to the flag of the United States of America. And to the Republic for which it stands. One nation under God and divisible with liberty and justice for all. The city clerk will now perform roll call. Councilmember Mendoza. Present. Councilmember Kaczynski present. Councilmember Hazi. Present. Councilmember Sheard will be absent. Councilmember Pollack? Present. Councilmember Fitzkey. Present. Council President Stelk will be absent. Councilmember Nickerson? Present. Councilmember Lanfair? Present. Councilmember Conley. Present. And Mayor Steele. Present. Also present or Jill Grenier. The City Clerk. Laura McAloon, the city administrator. Patrick Brown, the assistant city administrator, Carrie Fisk, the city attorney, and Matthew Gleason, the finance director. Individuals who have appropriate items for city council consideration should complete the request for future agenda items form located at the information booth. If the issue can be handled administratively without council action, notification will be provided. If the item is scheduled for a meeting or study session, notification of the date will be given. State your name and the agenda topic on which you will be speaking. Good evening. Thank you. Thank you. Thank you. We will now take up six resolutions 6A, Good Life District Economic Development Program Election. Mrs. McAloon. Thank you, Mayor. Council, on June 5th, the Department of Revenue notified the city that our sales tax rate would be changing effective October 1st, or at rather the state sales tax rate would be changing October 1st of this year in a portion of the city because the Woodsonia real estate application for a good life district has been approved by the Department of Economic Development. So with that approval, the state then uh reduces its state sales tax by half from 5.5% to 2.75%. What that does, and that's what has triggered uh the uh special meeting tonight on short notice for you all, um what that does is that um creates an opportunity for the city to ask the voters to approve a good life district economic development program as our bond council Mike Rogers recently briefed us on, luckily.

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