Grand Island City Council Regular Meeting - January 14, 2025

The Grand Island City Council met on Tuesday, January 14, 2025, at 7:00 PM in the Council Chambers. The meeting included a presentation of the 2025 Housing Study, approval of most consent agenda items, several public hearings, a resolution to transfer funds to the Heartland Events Center, and first reading of an ordinance to clean up hotel tax language.

Consent Calendar

• Approved minutes of the December 17, 2024 regular meeting.
• Approved payment of claims for December 18, 2024 through January 14, 2025, totaling $7,813,819.69.
• Approved councilmember appointments to boards and commissions for 2025.
• Approved bid awards, purchases, change orders, agreements, easements, and a certificate of final completion as listed in items 7d through 7n.
• Item 7o (Update of Designated Depositories List) was postponed to the January 28, 2025 meeting after councilmembers expressed concerns about vetting banks for collateralization.

Public Comments & Testimony

• Daryl Pools spoke during the housing study discussion. He expressed concerns about the costs of new housing development, including impacts on schools, property taxes, and infrastructure. He questioned whether the city should continue subsidizing development given the housing crunch and rising property taxes, and urged consideration of student counts and school capacity in future planning.

Discussion Items

• 2025 Housing Study Presentation (Item 6a): Chad Nabity introduced Amy Hazi of RDG Planning & Design, who presented the city's five-year housing study. Key findings: Grand Island needs about 3,000 new housing units over the next 10 years to support projected growth to 62,000 population. The study emphasized preserving existing housing as the best source of affordable housing, and noted the city lacks a nonprofit housing developer focused solely on Grand Island. Councilmembers discussed challenges such as high construction costs, interest rates, TIFF usage (noting $50,000 per unit in some projects), valuation increases burdening seniors, and the need for a variety of housing types. Councilmember Nickerson outlined a pipeline of over 1,300 potential units (rental and owner-occupied). Mayor Steele and others explored the possibility of establishing a nonprofit developer.
• Update of Designated Depositories List (Item 7o): Finance Director Matthew Gleason proposed adding several banks to the city's approved list for depositing funds, to increase flexibility for CD rates. Councilmember Hawsey and others questioned the lack of prior commitment letters from banks regarding collateralization. The item was postponed to the January 28 meeting so staff could verify each bank's ability to collateralize deposits.
• Hotel Tax Ordinance Cleanup (Item 10,005): City Administrator Laura McElhoon presented a cleanup ordinance to remove references to the former Fonner Park Exposition and Event Center, updating language to direct lodging tax revenues to the Heartland Event Center. The tax currently sunsets at the end of 2025, and staff plans to bring a broader discussion to a study session later this year. Councilmember Hawsey noted the need to consider how the tax funds can support multiple facilities (casino, state fair, etc.). Councilmember Stelk requested a joint study session with all partners (Fonner Park, VenuWorks, state fair, casino) to align plans. The ordinance passed on first reading.

Key Outcomes

• Consent Agenda: Approved 15 items (7a through 7n) unanimously; item 7o postponed to January 28.
• Public Hearings:
  • Approved Class I liquor license for Tabs Carts, LLC dba Swing 18 Indoor Golf (Resolution 2025-13).
  • Approved utility easements for Teta Hospitality (2025-14), Starostka Group (2025-15), Schumacher (2025-16).
  • Approved public right-of-way acquisition for South Locust Street Improvements (2025-17).
• Resolution 2025-18: Approved transfer of $200,000 to the Heartland Events Center/VenuWorks operating account. Councilmember Hawsey requested monthly financial reports be made available on the city's finance website.
• Ordinance 10,005: Approved on first reading (suspended rules) amending Article 23, Chapter VI (Hotel Tax) to clean up language. A study session on the lodging tax's future will be scheduled later in 2025.