2009-05-26 Revised Economic Development Program♦ 0
ECONOMIC DEVELOPMENT PROGRAM
June 1, 2006 — September 30, 2025
MAYOR:
COUNCIL MEMBERS:
CITY ADMINISTRATOR:
CITY ATTORNEY
JAMES REALPH
JOHN ABBOTT
CHRIS JENSEN
GARY FANOELE
KEITH CHRISTIANSEN
HAL KEPHART
MARTY SHEPARD
JON STEWART
FRANK WOLFF
RODNEY STORM
GEOFFREY HALL
Submitted by: Gateway Development Corporation
Revised May 26, 2009
Overview:
Nebraska's voters enacted a constitutional amendment in November 1990 granting cities and
villages the power to use local sources of revenue for economic or industrial projects and
programs. In 1991, the Unicameral implemented this amendment with the passage of Legislative
Bill 840, the Local Option Municipal Economic Development Act.
The Local Option Municipal Economic Development Act is based on the premise that
communities should use their tax dollars in ways that best meet local needs. While ongoing
planning processes in many towns have identified development, job creation and increased
economic opportunity as their highest priority for the future, a variety of constitutional and
legislative prohibitions kept them from investing local public funds in development programs.
The removal of these limitations gives municipality's greater latitude in determining and acting
upon local needs.
As communities have witnessed population declines and the loss of younger people, they have
thought about their futures and the types of actions and investments needed to reverse these past
trends. At the same time, smaller towns and cities are beginning to realize a period of significant
opportunity. In a period of uncertainty, complexity and growing concern about the problems and
quality of urban life, including cost and relative safety, the advantages offered by the smaller
communities have become uniquely attractive. Concurrently, the revolution in information and
communication technology as well as goods distribution has reduced the isolation of small
towns. As a result, it is increasingly possible to operate a significant business in growth areas
outside of major urban areas.
Economic Development Strategy:
The City of Blair's community and economic development strategy involves building on our
strengths to promote the expansion of existing industries and the accompanying creation and
retention of jobs and to recruit new industries and new jobs to the community. The principal
strategy is directed at maintaining a good quality of life, building a strong workforce, developing
community resources, attracting new capital investment, broadening the community's tax base
and ensuring economic stability and viability for the City of Blair.
Economic diversification will continue to be a critical priority for the City of Blair.
Diversification will be strengthened by the recruitment of new business from outside and
development of new businesses from inside the city. An economic development program can
establish the city as a nurturing environment for small and large businesses alike and provide
economic opportunity. This atmosphere, in turn will encourage people with skills and ideas to
move or return to Blair to live and do business.
In addition to recruitment, Blair can create job opportunities by helping existing businesses in the
city to expand their markets and compete more successfiilly. The successful marketing of Blair
as a center for opportunity is important to Blair's effort to expand its labor force and attract new
residents.
The City of Blair recognizes that the attraction of new business and industry to a community, or
the expansion of existing business or industry, takes place in a very competitive market place. In
order to keep Blair as competitive as possible in that market place, the community will strive to
use financial and human resources available in a partnership with federal, state, municipal and
private sources.
Statement of Purpose, General Intent and Goals:
It is the intent of the City of Blair to implement an Economic Development Program with the
purpose and goals as follows.
♦
Create New Jobs
♦
Generate Employment Opportunities
♦
Attract New Retail Business
♦
Attract New Capital Investment
♦
Broaden the Tax Base
♦
Expand the Labor Market
In addition to soliciting input for the development of this program, an effort has been made to
ensure consistency with other plans and goals of the City of Blair. Therefore, the City of Blair's
Comprehensive Plan has been reviewed and has been taken into consideration.
The objective of the Comprehensive Plan is to promote the health, safety and general welfare of
the city by providing harmonious development and proper arrangements of streets and utilities.
The plan also calls for adequate sanitary facilities and for the reduction of flood damage potential
to the greatest extent possible.
Eligible Activities:
Eligible activities under the Economic Development Program may include, but shall not be
limited to the following.
1) The purchase of real estate, options for such purchases and the renewal or extension
of such options.
2) Expenses for business recruitment activities.
3) Expenses for attracting and locating a qualifying business into the area.
4) Equity investment or loan guarantees in a qualifying business.
5) The authority to issue bonds pursuant to the act.
6) Grants or agreements for job training.
7) Small business development, including expansion of existing businesses.
8) The eligible activities described above are considered priority activities for the use of
funds generated under the local Option Municipal Economic Development Act. The
City of Blair recognizes that the attraction of new businesses to a community or the
expansion of existing businesses takes place in a very competitive market place. In
order to keep Blair as competitive as possible in that market place, and in the
creation of new jobs in the area, the City retains the right to include as eligible
activities those additional activities allowable by law under the Local Option
Municipal Economic Development Act.
9) The Local Option Municipal Economic Development Act has been changed in
several Legislative sessions since it was signed into law on June 3, 1991. It is
reasonable to assume the law will change during the course of Blair's Economic
Development Program. This program is written with the intent that future changes to
the Act which are beneficial to the City and citizens of Blair are expressly included
in this program.
Qualifying Businesses:
A qualifying business shall mean any corporation, partnership, limited liability company, or sole
proprietorship which derives its principal source of income from any of the following:
1. Retail;
2. The manufacturing of articles of commerce;
3. The conduct of research and development;
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4. The processing, storage, transport or sale of goods or commodities which are sold or
traded in interstate commerce;
5. The sale of services in interstate commerce;
6. Headquarter facilities relating to eligible activities as listed in this section;
7. Telecommunications activities;
8. Tourism -related activities;
9. Any other business deemed as a qualifying business in the Local Option Municipal
Economic Development Act or through future action of the Nebraska legislature.
A qualifying business does not have to be located within the territorial boundaries of the city if
the Blair City Council determines that there is a clear economic benefit to the city, but it must be
located in the City's two-mile extraterritorial jurisdiction or on land held in the name of the city.
Eligible qualifying businesses may apply more than once and receive program benefits more
than once.
Source of Funds, Length of Program, Preliminary Budget, Bonding Authority:
This section describes the source of funds and a preliminary budget for Blair's Economic
Development Program. It is important to note that this budget must be developed annually and
may be modified from time to time by the Blair City Council. In the field of economic
development, it is impossible to anticipate every condition or requirement. The City of Blair
should maintain the flexibility to respond to specific requirements and opportunities on a short-
term basis.
Source of Local Option Funds
The City of Blair's source of public fiends for this Economic Development Program will be the
local option City Sales and Use Tax.
Length of Time the Program will Exist
The City of Blair's Economic Development Program will exist from June 1, 2006 until
September 30, 2025. Miscellaneous revenues and funds, including but not limited to repayment
of loans, return on investments, fees for activities such as loan guarantees, and sales proceeds
from properties, may continue to be used for activities contained within this Economic
Development Program during the life of this program.
Preliminary Budget
The City of Blair shall establish an Economic Development Fund and shall contribute an amount
not to exceed one-tenth of one percent (0.1 %) of the taxable valuation of the city per year for the
life of the program, as appropriated annually by the City Council. The annual amount of local
option sales tax to be placed into this fund shall be included in the City of Blair's budget each
year and approved by the Blair City Council. Any proceeds from the issuance of bonds to
provide funds to carry out this Economic Development Program and any proceeds fiom land or
building sales associated with this Economic Development Program shall be deposited in this
fund. The City of Blair shall not transfer or remove funds other than for the specific uses outlined
in this program during the life of this program.
Bond Authority
Following a public hearing, the Blair City Council may authorize the issuance of bonds to carry
out this Economic Development Program. Future contributions of local option sales tax to the
Economic Development Fund shall be used to payoff these bonds.
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Administrative Process:
The City of Blair shall contract with Gateway Development Corporation, a non-profit economic
development organization, to administer this Economic Development Program. Gateway
Development Corporation, in conjunction with the Mayor of Blair and the Blair City Council,
will develop an Advisory Committee to administer the application process of the program. The
committee shall consist of seven (7) residents from the City of Blair who shall be appointed by
the Mayor of Blair subject to approval from the Blair City Council. At least one member of the
committee shall have expertise in the field of business finance or accounting. The Mayor of
Blair, with the approval of the Blair City Council, will designate an appropriate City Official to
assist in the administration of the Economic Development Program and also serve on the
Advisory Committee as an ex -officio member. The City Official will be responsible for
providing assistance, information and advice on the Economic Development Program. Also
serving on the Advisory Committee as an ex -officio member will be Gateway Development
Corporation's Executive Director, who will serve as the Economic Development Program
Administrator.
The City of Blair may contract with Gateway Development Corporation or other entities to
provide staffing and other support services to assist the Advisory Committee in the
administration of the program.
The Advisory Committee will meet to review applications on an as needed basis; they will also
meet on a quarterly basis to review the progress of the Economic Development Program. The
committee will report its findings and suggestions to the Blair City Council on a semi-annual
basis.
The Blair City Council may assign additional responsibilities necessary to carry out the program
or program changes as dictated by changing project needs and economic conditions.
Application Process:
To be considered for financial assistance through Blair's Economic Development Program,
applicants must provide the following information.
1. A detailed description of the proposed project.
2. A business plan that includes employment and financial projections, current financial
statements, financing requirements for the project and total projected costs.
3. A complete City of Blair Local Option Municipal Economic Development Program
application.
In determining eligibility, additional information may be requested by Gateway Development
Corporation, the Blair City Council's Finance Committee and the Blair City Council.
The Advisory Committee will review applications in the order they are received. Using program
guidelines, the Advisory Committee will determine the applicant's eligibility and will provide a
project qualification recommendation to the Blair City Council's Finance Committee. The Blair
City Council's Finance Committee will review the Advisory Committee's project qualification
recommendation, review all applicable documents and make a project funding recommendation
to the Blair City Council for consideration. The Blair City Council has final approval on the
amount of funds that are allocated to the applicant.
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All applications are subject to a financial verification process that will be completed by Gateway
Development Corporation. The financial verification process will be completed prior to the
application being presented to the Advisory Committee, the Blair City Council's Finance
Committee and the Blair City Council.
Once an application is approved, Gateway Development Corporation will be responsible to
execute the legal agreements made between the applicant and the City of Blair. Gateway
Development Corporation will also be responsible to report to applicants whose applications
have been disapproved.
Requirements for Purchase or Option to Purchase Land:
The following criteria shall be applied for the purchase of or option to purchase real estate:
1. The property shall be properly zoned without any excessive easements, covenants or
other encumbrances.
2. The property shall conform to the City or County's Comprehensive Plan.
3. Selection of sites shall be based upon sound economic development location criteria
or specifications for special projects.
4. All purchases and options for purchase shall be approved by the Economic
Development Program Advisory Committee, the Blair City Council's Finance
Committee and the Blair City Council.
Proceeds from the sale of real property purchased pursuant to the Economic Development
Program shall be returned to the City of Blair's Economic Development Fund for future use.
Administration of Economic Development Program:
It is the intent of the program that the majority of the funds are used to support eligible activities
and that only a minimal amount is spent on administrative costs. The administration of this
program will be shared by four separate entities. The entities are as follows.
Program Administrator — Gateway Development Corporation's Executive Director
1. Will be responsible for the day-to-day operations of the program.
2. Will assist applicants and recruit potential applicants.
3. Will serve as an ex -officio, non-voting member of the Advisory Committee and will
provide the Advisory Committee with all necessary advice and information.
Advisory Committee
1. The Advisory Committee will be comprised of seven (7) residents from the City of
Blair. The Mayor of Blair will appoint the committee members after receiving
approval from the Blair City Council. Advisory Committee members may not be
elected or appointed officials, employees of the City of Blair, an official or employee
of any qualifying business receiving financial assistance under this Economic
Development Program or an official or employee of any financial institution
participating directly in the Economic Development Program. The committee will
have at least one individual with expertise or experience in the field of business
finance or accounting. The Advisory Committee will also have a Blair City Official
and a representative from Gateway Development Corporation serving as ex -officio
members.
2. The Advisory Committee will meet as needed to review applications and provide a
project qualification recommendation to the Blair City Council's Finance
Committee. The Advisory Committee will also meet on a quarterly basis to review
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the progress of the Economic Development Program. The committee will present
findings and suggestions to the Blair City Council on a semi-annual basis.
Blair City Council's Finance Committee:
1. The Blair City Council's Finance Committee will review applications and project
qualification recommendations received from the Advisory Committee on an as
needed basis.
2. The Blair City Council's Finance Committee will provide project funding
recommendations to the Blair City Council.
Blair City Council
1. The Blair City Council has final authority on expenditure of funds in support of the
economic development program.
2. The Blair City Council will contract with Gateway Development Corporation to act
as Program Administrator and will approve the membership of the Advisory
Committee.
3. The Blair City Council has ultimate responsibility for the Economic Development
Program.
Confidentiality, Laws and Regulations:
To ensure applicant confidentiality, the following measures will be instituted and enforced.
1. Each member of the Advisory Committee (including ex -officio members) will sign a
"Statement of Confidentiality".
2. Applicant's business and financial information will be available to the Advisory
Committee during the approval/disapproval process only. After the
approval/disapproval process, Gateway Development Corporation will keep all
permanent files and records. Access to these files and records will be limited and on
a need to know basis only.
Gateway Development Corporation, in conjunction with the Advisory Committee, will establish
procedures to ensure that the municipality and the qualifying business are meeting all applicable
laws, regulations and requirements. These procedures are subject to review and approval by the
Blair City Council.
Gateway Development Corporation, the Blair City Council's Finance Committee and the
Advisory Committee may utilize the services of the City Attorney to review contracts, official
documents, land transaction procedures or any other official actions as deemed necessary.
Separate counsel may also be retained with the permission of the Blair City Council.
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