Grand Island City Council Meeting, December 30, 2025

The Grand Island City Council convened in an open meeting to address budget approvals, license transfers, and a critical discussion regarding the renewal of the hotel occupation tax to fund Heartland Event Center maintenance and livestock shows. While routine items and two public hearings were approved, the council tabled a proposal to increase the lodging tax to 5% in favor of continuing the current 2% rate pending further study and stakeholder engagement.

Consent Calendar

• Item 6A: Approved the Annual Report of Tennis Center Utilization and Availability. Councilmember Brown expressed appreciation for the pickleball group's ability to co-habitate with the tennis facility.
• Item 7F: Approved the request from Madre (I.M.E. Madre LLC) to change the location of their Class C liquor license from 316 East 2nd Street to 112 West 3rd Street. Councilmember Nickerson expressed concerns based on a police report citing 11 calls over three years at the previous location but ultimately voted in favor after the applicant, Ruth Carvajal, attributed the issues to poor parking and lighting at the old site and confirmed increased security measures at the new location.

Public Comments & Testimony

• Janice Katulak (Hotel Industry): Expressed strong opposition to the proposed increase to 5% (a 3% increase from the current 2%), stating it would burden hotels during off-seasons and potentially cause them to lose business. She argued that the hospitality industry should not bear the full cost of the Heartland Event Center.
• Brad Maleta (Grand Island Tourism): Cautioned that a 5% rate would make Grand Island the highest in Nebraska, potentially damaging the city's competitiveness. He argued that tourism is an ecosystem and that funding capital improvements should not decimate the demand source (livestock shows) that drives hotel occupancy.
• Junior Robeck: Expressed concern that the ordinance, currently written to only fund "city-owned facilities," would not benefit Fawnler Park or livestock shows, despite the intent. He advocated against a 150% increase in lodging taxes without broader dialogue.
• Jamie Parr (Gilka/Livestock Shows): Stated that high hotel costs are a primary reason livestock shows might leave. She argued that if shows leave, the city loses a significant driver of tourism and hotel revenue, urging a diversified funding approach rather than relying solely on the lodging tax increase.
• Chris Katulak (Fawnler Park): Clarified that Fawnler Park and the State Fair can no longer provide funding for livestock shows, creating a financial shortfall. He warned that the proposed tax solution leaves these shows in a "lurch" and emphasized the critical need to fund them to maintain economic activity.

Discussion Items

• Item 9A: Approved Resolution 2025-437 for a $1,975,005 contract to replace three boilers at the Heartland Event Center. Councilmember Brown noted the urgency as the facility was down to one boiler but expressed concern about the funding source, which is tied to the hotel tax. Councilmember Shear confirmed a budget contingency exists if the broader funding package fails.
• Item 10A (Hotel Occupation Tax): A discussion ensued on amending Chapter 23 to renew the tax at 5% to fund $11 million in deferred maintenance (boilers, lighting, ice rink, etc.) over 20 years.
  • Councilmember Nickerson and Councilmember Hazi opposed the 5% increase, citing the total tax burden of 14.75%, the risk to competitiveness with Colorado Springs (2%), and the need for a more comprehensive financial plan involving food/beverage taxes or casino revenue.
  • Councilmember Sheard and Councilmember Conley initially supported the increase but acknowledged the need for more information regarding the legal scope of the tax for non-city-owned facilities.
  • Action: A motion was made to amend the ordinance to keep the tax rate at 2% rather than increasing it to 5%, ensuring continuity while a study session is scheduled to explore all funding options (including food/beverage and casino revenue) and address the livestock show shortfall. Councilmember Lanfear seconded the amendment to postpone the final decision.
• Item 10B: Approved an ordinance to repeal and rename U.S. Highway 30 to simply "Old Highway 30" to correct a clerical error from a previous ordinance.

Key Outcomes

• Consent Agenda: Approved with the exception of Item 7F, which required a separate vote and was adopted.
• Liquor License: Item 7F approved for Madre LLC; Council expressed full support contingent on the new location and security measures.
• Resolution 2025-437: Approved (100% support) for boiler replacement at the Heartland Event Center, contingent on future funding approval.
• Resolution 2025-435 (Napolese): Approved unanimously following the public hearing for the Class I liquor license.
• Resolution 2025-436 (Chamber Building): Approved unanimously the redevelopment plan amendment and TIF request for the 309 West 2nd Street building (Starkel Real Estate).
• Ordinance 10055 Amendments:
  • The motion to postpone the original proposal to increase the tax was debated; the motion to table (postpone) the 5% increase was voted down.
  • An amendment was adopted to reduce the proposed rate from 5% back to 2%, ensuring the tax continues without increase.
  • The amended ordinance was adopted, maintaining the 2% tax rate.
  • Council agreed to pursue a study session to discuss a comprehensive funding strategy for the Heartland Event Center and livestock shows, rather than voting again on a tax increase immediately.
• Ordinance 10056: Adopted to correct the name of Highway 30 to "Old Highway 30."
• Adjournment: Meeting adjourned at 7:00 PM with a directive to continue the conversation on hotel taxes and facility funding.