Grand Island City Council Regular Meeting - December 17, 2024

The Grand Island City Council held its regular meeting on December 17, 2024, at 7:00 PM. The meeting included recognitions of All-State musicians and a 25-year service award, a budget presentation for the Heartland Event Center, approval of the consent agenda with discussions on two pulled items, public hearings on a liquor license and utility easements, and resolutions for a Camp Augustine grant application and the Heartland Event Center transition agreement. The meeting concluded with the passage of an ordinance for the sale of property on Webb Road.

Consent Calendar

• The consent agenda (items 7A-7G, 7I-7N) was approved unanimously, excluding items 7H and 7O which were pulled for separate discussion.
• 7H (Fire Department Grant Application): Approved (7-0). Chief Schmidt explained the grant would be for dive rescue equipment (approx. $50,000 with $5,000 local match), but noted the grant may not be eligible; however, the council voted to approve the application. The department aims to train 6-8 personnel with a total estimated cost of $55,000.
• 7O (CAPER Report): Approved (7-0). The 2023 Consolidated Annual Performance and Evaluation Report for CDBG funding was presented by Amber Alvidrez, highlighting that despite the COVID pandemic shifting priorities, the city helped over 13,000 people through public services. The new five-year consolidated plan focuses on housing rehabilitation programs.

Public Comments & Testimony

• Heartland Event Center Transition: Mr. Baberczyk addressed the council, raising concerns about the discrepancy between VenueWorks' proforma (projecting $7 million revenue) and the initial budget presented ($2.69 million revenue, $3.19 million expenses). He questioned whether the city's lodging tax would be used to cover the operating loss and the legality of using lodging tax after the transition. He also noted points about the Heartland Event Center Board, the $265,000 payment for personal property, and the Nebraska State Fair agreement. Mayor Steele stated they would review his points.

Discussion Items

Recognitions & Proclamations

• All-State Musicians: The council recognized All-State musicians from Grand Island Senior High School (choir and instrumental), presenting certificates and pins. Instructors Jesse LeBrie and Bob Linneman spoke about the students' achievements.
• 25-Year Service Award: Chad Nabity, Community Development Director, was recognized for 25 years of service with the City.

Heartland Event Center Budget Presentation

• Kyler Tarwater, executive director of VenueWorks, presented a nine-month budget (January to September 2025) for the Heartland Event Center.
• Revenue Forecast: $2,688,514, including contractually obligated revenue ($277,000), reimbursed event expenses ($309,207), food & beverage ($531,716), and other revenues ($1,570,591). Notably, a new five-year Pepsi deal brings $120,000.
• Expense Forecast: $3,187,514, including cost of goods sold ($1,268,000), personnel ($970,000), occupancy ($447,000), service & operations ($161,000), event expenses ($287,000), and food & beverage expenses ($40,341).
• Net Operating Loss: approximately $499,000, to be covered by the city's hotel occupation tax, resulting in net income of $0. Councilmember Nickerson inquired about upside in food & beverage; Mr. Tarwater noted potential improvements from internal catering and grab-and-go stations.

Fire Department Grant Application (7H)

• Chief Schmidt requested approval to apply for an AFG grant for dive rescue equipment ($50,000 grant, $5,000 local match). He reported a decline in volunteer dive rescue capabilities; the department has two certified divers and aims for 6-8 personnel. The council approved the application despite uncertainty about eligibility.

CAPER Report (7O)

• Amber Alvidrez presented the CAPER, noting that due to COVID, the city pivoted to public services, helping 13,000 people instead of the planned 150. The new consolidated plan focuses on housing rehab, including owner-occupied and rental programs in partnership with Habitat for Humanity and Heartland United Way.

CCCFF Grant Application for Camp Augustine (Resolution #2024-343)

• Matthew Gleason presented a grant application for $1,800,000 (50% grant, 50% local match from general fund) for pre-design services, central green space development, renovation of park operations/maintenance buildings, and event parking at Camp Augustine. The project is the first phase of the master plan. The letter of intent must be submitted by January 15, 2025. Councilmember Hossey asked about remaining budget authority; Gleason agreed to provide details. Motion approved.

Heartland Event Center Transition Agreement (Resolution #2024-344)

• City Administrator Laura McAlloon presented the transition agreement between the City and Fonner Park Exposition and Event Center, which had operated the event center since 2004. The final bond payment was made December 15, 2024, transferring ownership to the city. VenueWorks will take over management.
• The agreement includes a payment of $265,000 to Fonner Park for personal property acquired over 20 years.
• Councilmember Baberczyk raised questions about budget discrepancies and lodging tax usage. City staff noted the lodging tax expires December 2025 and the agreement with VenueWorks may require future transfers from lodging tax to cover operating losses.
• Councilmembers thanked Fonner Park and staff for their service. Liquor license for VenueWorks is still pending but expected before major events in February/March.
• Motion approved.

Key Outcomes

• 7H (Fire Dept Grant): Approved (7-0).
• 7O (CAPER): Approved (7-0).
• 8A (Liquor License for Grand Island Casino Resort): Public hearing held; motion approved (vote tally not specified, but passed).
• 8B (Utility Easement at Central Community College): Approved.
• 8C (Right-of-Way Acquisition for South Locust Street): Approved.
• Resolution #2024-343 (Camp Augustine Grant): Approved.
• Resolution #2024-344 (Heartland Event Center Transition): Approved.
• Ordinance #10,004 (Sale of Property on Webb Road): Passed after suspension of rules.