Grand Island City Council Regular Meeting - September 9, 2025

The Grand Island City Council met on September 9, 2025, at 7:00 PM in the Council Chambers. The meeting included the Board of Equalization, approval of the consent agenda with three items pulled for discussion, public hearings, resolutions, ordinances, and an executive session on litigation. The council approved the FY2025-2026 budget, a land lease for digital infrastructure, an agreement for a new summer collegiate baseball league, and multiple business improvement district assessments.

Board of Equalization

• #2025-BE-1 – Approved reductions for Railside Business Improvement District: 11 property owners eligible for a 30% discount, totaling $1,037, reducing the assessment to $150,440.79. Motion carried.
• #2025-BE-2 – Approved the assessment of $150,440.79 for Railside Business Improvement District. Motion carried.
• #2025-BE-3 – Approved reductions for 4th Street Business Improvement District: 5 property owners eligible for 30% discount, totaling $575.90. Motion carried.
• #2025-BE-4 – Approved net assessment of $39,424.10 for 4th Street Business Improvement District. Motion carried.
• #2025-BE-5 – Approved special assessment of $53,202 for Fonner Park Business Improvement District. Motion carried.

Consent Calendar

• Approved the consent agenda (items 7A through 7W) with the exception of items 7H, 7R, and 7U, which were pulled for separate discussion. The consent agenda included approval of minutes, payment of claims totaling $7,020,593.37, re-appointments to boards, and numerous routine contracts and approvals.

Public Comments & Testimony

• Councilmember Gerald Pools (speaking on item 7H – Waiver Fine Schedule) expressed concern about fines for spilling contents of a vehicle (cattle trucks) and engine braking, suggesting the fines should be increased. He noted these are public nuisance and quality of life issues.
• Jerry Pools (speaking on item 7R – Land Lease for Digital Infrastructure) raised concerns about the company receiving reduced electricity rates, arguing that if they paid residential rates, the city would generate more revenue. He questioned the overall benefit to the city.
• Jerry Pools (speaking on item 7U – Burdick Station Generation Project) questioned how the city would fund the estimated $100 million for 35-40 megawatts of generation over five years, especially given other large expenses like school rebuilding. He asked about the financing plan.
• Jay Vavricek (former mayor) provided public comment on the budget, commending the council for the seventh consecutive year of reducing the mill levy. He also suggested that the CRA tax rate should be considered for increase to support redevelopment, and advocated for increased compensation for the mayor and council.
• Jerry Pools (on the budget) criticized the $16 million Island Oasis water park project, noting it is open only 90 days a year and has high maintenance costs. He also expressed concern about TIF programs contributing to inflationary property taxes.

Discussion Items

• 7H – Waiver Fine Schedule Update (Pulled): City staff explained the update mirrors state statute effective September 3, 2025, for speeding fines. Councilmember Pools raised concerns about fines for spilling vehicle contents and engine braking. Staff clarified that fines for traffic and criminal citations are set by state statute and cannot be altered by the city. The money goes to the state and is distributed to schools. Motion to approve carried.
• 7R – Land Lease for Digital Infrastructure (Pulled): Ryan Schmitz presented a 20-year land lease for a cryptocurrency/load center facility on a 2/3-acre site. The city conducted extensive research on noise, setting a threshold 5 decibels lower than other entities, and added a sound barrier wall. The facility is 100% interruptible and will not affect city generation capacity. The lease is $18,000/year with a 3% annual increase, escalating to 4% after 10 years and 5% after 5 years. The building reverts to the city if the tenant defaults. The facility could reduce the fuel cost adder (PCA) by up to 30%. Multiple council members expressed support after due diligence on noise, financial benefits, and protection of ratepayers. Motion to approve carried.
• 7U – Engineering Services for Burdick Station Generation Project (Pulled): Ryan Schmitz explained the first step in building new generation: analyzing generator types and entering the SPP process. The contract with Burns & McDonnell was the most value and includes design, procurement, and construction oversight. The project timeline targets 2031. Councilmember Brown noted the lead time of 5-6 years for generators. Councilmember Hawsey recalled the 1977 Platte Generating Station ($100 million) paid off in 20 years, providing 25 years of debt-free power. Motion to approve carried.
• 9A – RFP Contract for Public Baseball Entertainment at Ryder Park Legion Field: Todd McCoy introduced an agreement with National Sports Services to bring Diamond League Baseball (summer collegiate) to Grand Island, starting in 2026. The league will have 60 games (30 in Grand Island) from late May to July. The company will invest $250,000 in the facility. Matt Perry (National Sports Services) presented details: the company owns all teams initially, uses host families, and operates food and beverage. Councilmember Hawsey questioned the city's maintenance responsibility and the food and beverage clause. Perry clarified that the Legion and school will still benefit from concessions, and the company will work with them to ensure no loss of revenue. Councilmember Nickerson asked about scheduling and financial model. The company generates revenue from tickets, concessions, and sponsorships (each about a third). Artificial turf is essential for multiple users. Motion to approve carried.
• 9B – LB840 Grant for Business Blueprint Workshop: Patrick Brown and Mary Burley (GIEDC) presented a new program modeled on the successful Community Kitchen Pilot Program. The pilot used a $20,000 National League of Cities grant to support 9 cottage food entrepreneurs with $2,000 microgrants each. The Business Blueprint Workshop targets high-wage, high-skill, high-demand (H3) industries (e.g., welding, HVAC, electricians). The program will run three workshops over 1.5 years, serving 30 participants, with $3,000 grants per participant and $15,000 admin costs, totaling $105,000 from LB840 funds. The LB840 balance after approval would be $443,880. Councilmember Nickerson asked about marketing and participant outreach. Councilmember Sheard praised the program. Motion to approve carried.
• 9C – Contract Amendment 2 with Hwy 281 Woodsonia LLC for Conestoga Marketplace: Chad Nabity explained the amendment allows TIFF bonds to run up to 20 years, with funds from early payoff cascading to other bonds. No increase in TIFF or occupation tax. Motion to approve carried.
• 9D – FY2025-2026 Annual Budget for South Locust BID: Budget of $180,010 with special assessments of $104,617, using cash reserves. Board of Equalization date set for October 14, 2025. Motion to approve carried.
• 9E – Setting Date for Board of Equalization for Parking District #3: Special assessment of $80,000 for FY2025-2026, with credits reducing collectible to $7,020. Board of Equalization date set for October 14, 2025. Motion to approve carried.
• 9F – FY2025-2026 General Property and CRA Tax Request: Patrick Brown presented the city's property tax request. The 2025 valuation increased by $378 million (8.1%). The city's mill levy will be reduced from 0.261049 to 0.241484, and the CRA levy from 0.0178086 to 0.015805, resulting in a total tax ask of $13,065,30 (unchanged for six years). Councilmember Vavricek commended the reduction but suggested the CRA rate could be increased to support redevelopment. Councilmember Nickerson and Hawsey discussed that CRA funding is demand-driven; if projects are available, the council would consider increasing the levy. Motion to approve carried.
• 9G – Downtown Improvement District #2 (Ramp) Property Tax Request: Valuation increased 7.8%, but no increase in property tax request, reducing mill levy from 0.010470 to 0.00971. Revenue request $9,090. Motion to approve carried.
• 10A – Salary Ordinance: Aaron Schmidt presented the annual salary ordinance, including changes from union contracts, wage survey results, and classification updates. It does not include Aspian wastewater contracts still under negotiation. Councilmember Pools questioned comparability with private sector wages. Schmidt explained that state statute requires comparing to cities of similar size in a 50-mile radius, mostly out-of-state. Motion to approve carried.
• 10B – FY2025-2026 Annual Single City Budget and Appropriations Bill: Patrick Brown presented the budget overview. Total disbursements and transfers are 8.3% higher ($25.9 million) than FY2025, mainly due to parks projects, Good Life District, and grants. Total revenues increased 1.2% ($3.4 million). The property tax mill levy is reduced for the seventh consecutive year. Personnel expenses are up 6.5%, operating expenses down 3.48%. Total expenses increase 4.3% ($2.2 million). Sales tax forecast $29.7 million, up 2%. Capital improvement projects total $82 million. The budget adds FTEs: one police officer, 2.5 community service officers, one parks maintenance worker, one attorney, and five part-time library workers. The Island Oasis project is $16 million, with $4 million from cash and $11.6 million in bonds. The city will use $15 million of $22 million excess cash reserves, leaving $7 million. Councilmember Nickerson expressed concern about the low cash reserve and the lack of a final voting meeting. Councilmember Lanfear voted no, citing high-dollar projects and poor use of public money. Councilmember Sheard voted yes, praising the budget. Councilmember O'Neill commended spending down reserves to benefit the community. Motion to approve carried (8-1, Lanfear dissenting).
• 10C, 10D, 10E – Assessments for Railside, 4th Street, and Fonner Park Business Improvement Districts: All three ordinances approved unanimously after suspending the rules.

Key Outcomes

• Board of Equalization approved all reduction and assessment items for Railside, 4th Street, and Fonner Park BIDs.
• Consent Agenda approved with three items pulled and individually approved.
• Public Hearings for right-of-way and utility easement acquisitions approved.
• Resolution 2025-307 approved: 20-year land lease for digital infrastructure (cryptocurrency mining) with noise mitigation, financial protections, and interruptible power.
• Resolution 2025-308 approved: $105,000 LB840 grant for the Business Blueprint Workshop targeting H3 industries.
• Resolution 2025-309 approved: Contract amendment for Conestoga Marketplace TIFF.
• Resolution 2025-312 approved: Property tax request for city and CRA at $13,065,30, with mill levy reduction.
• Ordinance 10,032 approved: Salary ordinance for FY2025-2026.
• Ordinance 10,033 approved: FY2025-2026 annual budget of approximately $1 million per day, with $16 million for Island Oasis and $11.6 million in bonds.
• Ordinances 10,034, 10,035, 10,036 approved: Assessments for Railside, 4th Street, and Fonner Park BIDs.
• Executive Session held to discuss litigation threat; council authorized settlement by mayor and city attorney.
• The council set October 14, 2025, for Board of Equalization meetings for South Locust BID and Parking District #3.