Kearney Planning Commission Meeting - December 30, 2020

The Kearney Planning Commission met virtually on December 30, 2020, to approve previous minutes, continue several development applications to January 2021, and hold a public hearing on proposed code amendments to Chapter 57 of the City Code regarding infrastructure cost sharing. The discussion focused on amending rules for distributing improvement costs, with staff recommending changes to eliminate city payments for fittings, valves, fire hydrants, and booster pumps in water lines, and lift stations in sewer lines. Commissioners expressed concerns about the impact on development costs and a lack of developer outreach, ultimately voting to continue the item to the January 15, 2021 meeting.

Consent Calendar

• Meeting Minutes: The commission unanimously approved the minutes from the November 20, 2020 meeting (roll call vote: 8 ayes, 1 abstention).

Continuation of Items 4-9

• Millennial Estates Fourth Addition: All items (Vacation No. 2019-04, Rezoning No. 2020-12, Preliminary Plat No. 2020-10, Final Plat No. 2020-10, Annexation No. 2020-10, and Planned District Development Plan Approval No. 2020-12) were continued to the January 15, 2021 Planning Commission meeting at the applicant's request. The motion carried with one abstention.

Discussion: Code Amendment No. 2020-02 (Chapter 57)

• Staff Presentation: Planning staff member Eric Halrigal presented a detailed analysis of the current code, which requires the city to pay for certain water and sewer infrastructure (fittings, valves, hydrants, booster pumps, lift stations) within developments. He compared Kearney's policies to peer cities (Grand Island, Fremont, Norfolk, Hastings) and showed that Kearney's participation is more generous. Staff proposed simplifying general obligation costs by removing those items from city responsibility, while continuing to pay for oversizing of mains. They also presented data on city infrastructure reimbursements from 2013-2019 totaling over $2.5 million, and payback periods using property tax revenue (e.g., 8 years for a 39-lot subdivision, 11 years for multi-family, 16-19 years for commercial).
• Commissioner Questions & Positions:
  • Commissioner John Rickard and others expressed concern that the change could increase developer costs and potentially price Kearney out of the market. They advocated for outreach to builders and developers before making a decision.
  • Commissioner Dave Malone noted that the city has the lowest property tax levy in Nebraska and suggested that modest property tax increases could support infrastructure; however, other members (Rich, Brent) cautioned against raising taxes.
  • Commissioner Joey Cochran observed that home values in Kearney are rising, and the city has been blessed with growth; he opposed hasty changes.
  • Commissioner Monte Dakan asked about growth comparisons with peer cities; staff noted Kearney's population grows about 1.5% annually and that sales tax grew even during the pandemic.
  • Commissioner Jeremy Fusener supported the staff position, arguing that stranded infrastructure is a real risk and that there is no guarantee that platted lots will be developed.
  • Chair Dave Malone suggested the commission could forward the item to city council without a recommendation, given the financial implications. Several members supported that idea.

Key Outcomes

• Vote on Continuation: The commission voted 6-3 to continue Code Amendment No. 2020-02 to the January 15, 2021 Planning Commission meeting. This allows time for staff to gather input from developers and the development community. The motion was made by Commissioner Fusener and seconded by Commissioner Dakan.
• Next Steps: Staff will provide the PowerPoint presentation to commissioners. The item will be addressed again in January, with the expectation that developer outreach will occur before then.