1993-1996 Economic Development PlanEXHIBIT A
� `LAIR, NEBRASKA
ECONOMIC DEVELOPMENT PLAN
1993 - 1996
MAYOR:
Jerome Jenny
COUNCILMEMBERS:
John Abbott
James Fay
Bernard J. Kros
J. Merton Kuhr
James Long
Michael Mines
James Ryan
T. John Shotwell
CITY ADMINISTRATOR:
Rodney A. Storm
CITY ATTORNEY:
Wyman E. Nelson
9/2/92
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TABLE OF CONTENTS
BLAIR GENERAL COMMUNITY AND ECONOMIC DEVELOPMENT STRATEGY
STATEMENT OF PURPOSE DESCRIBING GENERAL INTENT AND GOALS
ELIGIBLE ECONOMIC ACTIVITIES/ELIGIBLE TYPES OF BUSINESSES
SOURCE OF FUNDING FOR ECONOMIC DEVELOPMENT PROGRAM
5. PROCESS OF QUALIFYING
FINANCIAL ASSISTANCE
6. ADMINISTRATIVE SYSTEM
BUSINESSES TO SUBMIT APPLICATION FOR
7. PROCESS TO ASSURE ALL APPLICABLE LAWS, REGULATIONS AND
REQUIREMENTS ARE MET BY THE CITY AND QUALIFYING BUSINESSES.
SECTION 1
BLAIR GENERAL COMMUNITY AND ECONOMIC DEVELOPMENT STRATEGY
The public and private sector in Blair and Washington County have
a history of cooperative efforts to attract new business to the city
and the county and to aid in the expansion of existing business.
Gateway Development Corporation hereinafter referred to as Gateway
Development, a non-profit corporation, is an effort of the Blair and
Washington County business community in coordination with the City of
Blair and Washington County. The general strategy for this Economic
Development Program, and the efforts to be undertaken under the Local
Option Municipal Economic Development Act (LB 840, 1991), is to
continue this cooperative relationship and significantly enhance
existing efforts with a stronger City involvement and leadership role
in development efforts.
While past efforts are viewed as having been successful, the
preparation of an economic development plan to guide future efforts
cannot, and should not, be done in a vacuum. The City Council and
Blair community leaders recognized the need to take a comprehensive
approach to generating input from the citizens of the community and
getting their ideas as to what was necessary for Blair and Washington
County to allow continued success in economic development. With the
assistance of the University of Nebraska At Omaha, Blair participated
in the Strategic Training and Resource Targeting (START) program.
Economic development continues to be a concern in Blair according
to the community and business surveys collected for the START program.
The task force assigned to this issue, with the help of economic
development consultants from UNO; came up with several goals that
would be beneficial to the Blair area. The task force thought it
important to stress not only the recruitment of industry, but the
retention and expansion of what we already have.
The overall goal of the START business development task force was
to recruit new businesses beneficial to Washington County -and promote
expansion of existing businesses.
Because of national, state and local employment trends there is an
intense, competition for new job creation present today between
communities. This forces states and municipalities, in order to
remain competitive, to provide assistance and incentives for new
business expansion or location. Restrictions of the Nebraska
Constitution which were eliminated by the voters' passage of a
constitutional amendment in 1990, and the passage of enabling
legislation LB 840 in 1991, allow Nebraska communities the opportunity
to determine their own destiny by being able to provide those
incentives considered necessary to new businesses considering the
community or existing business looking to expand. The Local Option
Municipal Economic Development Act allows communities to invest local
taxes for economic development purposes to create new jobs in the
area.
Blair's Economic Development Plan identifies those items necessary
for the City of Blair to provide in order to continue to be a solid
supporter of, and partner in, the economic development efforts of the
region and to facilitate the location of the recently announced
Cargill wet corn milling facility.
SECTION 2
STATEMENT OF PURPOSE DESCRIBING GENERAL INTENT AND GOALS
It is the intent of the City of Blair, Nebraska to implement an
economic development program, the purpose and goals of which will be:
to create jobs/generate employment opportunities within the labor
market of Blair and Washington County; to attract new capital
investment to the community; to broaden the tax -base and provide
economic diversification to ensure economic stability and vitality for
the community of Blair and the surrounding area.
The primary goal of the Blair Economic Development Program is to
provide direct or indirect financial assistance to Cargill,
Incorporated (hereinafter referred to as "Cargill") in the purchase of
land for their recently announced corn processing project in
Washington County to ensure that this facility is located in the
county and to show the support of the City of Blair and its citizens
for this important project. This .specific project is consistent with
all the general goals of the program and serves as an excellent
example of the importance of the program to the future economic
development of the area.
It is important in preparation of an economic development plan
that, in addition to soliciting input for the plan, an effort'be made
to ensure consistency with other plans and goals of the city.
The Comprehensive Plan of the City of Blair has as an Economic
Development goal: Encourage a stable economic base and an increase in
employment opportunities within the community in order to provide a
sound, total living environment.
Objectives of the Comprehensive Plan include:
* Strive to develop a diverse employment base within the
community;
Y
" Continue to support the growth and expansion of existing
industries;
* Provide ample space for industrial development with convenient
access to major transportation sources; and
* Allow for an expanded industrial base within Blair.
SECTION 3
ELICIBLL ECONOMIC ACTIVITIES/ELIGIBLE TYPES OV BUSINESSES
ELIGIBLE ECONOMIC ACTIVITIES
The location of a Cargill wet corn milling facility i;n Washington
County, Nebraska near Blair will have a significant 1
Y g posi'tivo economic
Impact on the city of Blair, the surrounding region, and the Nebraska
agricultural community. During the negotiation process,; commitments
were made by Gateway Development to Cargill to provide direct or
indirect financial assistance to ensure their selection of Washington
County as the location for this new facility. Included in those
commitments was assistance by Gateway Development i'n purchasing
property as a site for that new facility.
Section 2 of the Blair Economic Development Plan identifies as the
primary goal of the plan the provision of direct or indirect financial
I
assistance to Cargill for the purchase of land in Washington County,
Nebraska as a site for their recently announced wet ;corn milling
facility. As a priority eligible activity, proceeds of funds
generated from the Local Option municipal Economic Development Act (LB
040) shall be primarily used to defray or reduce the Joat of real
as -Late sold to Cargill by providing funds to Gateway Development for
the purpose of compensating existing landowners for a portion of the
coat of reel estate sold to Cargill. This :funding will be in amount -
not to exceed $975,.000.00. ,
They Council recognizes that the location of the Cargill wet corn
milling facility will act as a catalyst and a magnet for other
vusineaisea that will provide a product or a service to Cargill or will
uAe or purchase products from Cargill. The attraction and
accommodation of these and other new businesses will bean important
part of the future economic development efforts of Blair.
Consequently, this Economic Development Plan provides that the
proceeds of funds generated from the use of the Local Option Municipal
Economic Development Act (LB 840) may be used to fund any project or
program providing direct or indirect financial assistance to these or
other qualifying businesses and the payment of related costs and
expenses as allowed by Section 6 of such LB 840, except the creation
of a loan fund.
Eligible activities include the purchase directly or indirectly
through Gateway Development of commercial or industrial site(s) and
obtaining options for the purchase of such real estate. Land to be
purchased or optioned may be within or outside the corporate limits of
the City of Blair and will be identified through local analysis by the
City of Blair and/or Industrial Site Evaluation teams organized by the
City of Blair or the administrator of the Economic Development
Program. These identified' sites may then be considered for option or
purchase and further development.
In addition, the funds may be used to provide the infrastructure
to these sites or other sites to make them attractive "to new or
expanding businesses. Eligible infrastructure improvements will
include, but not be limited to, street, storm drainage, water, sewer,
gas, electric or railroad extension. Infrastructure improvements and
costs may extend beyond the corporate limits of the City of Blair.
The funds may also be used to construct facilities, structures,
and/or appurtenances for new or proposed development or on a
speculative basis to attract new business or industry. These
facilities, structures and appurtenances are not required to be within
the corporate limits of Blair, Nebraska.
These sites and facilities will improve the attractiveness of
Blair, Nebraska as a location for new business and industry and may be
used as an incentive to aid in the location, relocation or expansion
of a business. These sites and facilities may be sold or leased at a
price at or below current market value. The proceeds from the sale or
lease of land purchased and developed with funds generated by LB 840
may be used for the purchase and development of additional land and
may be used for all other eligible activities.
While the attraction of a new business or industry may require an
incentive to ensure its location in Blair, any investment of the type
mentioned above can provide that incentive while at the same time
providing a benefit that will remain in the community. Developed
industrial sites, buildings, and infrastructure will be of long term
benefit to the community regardless of future ownership.
Eligible activities also include the payment of the costs of
salaries and support of city staff to implement the Economic
Development Plan or the costs of contracting with an outside entity to
implement the Economic Development Program for the City of Blair. Any
entity selected to implement this program will be bound by legal
agreement with the City to follow and adhere to the eligible
activities described in' this section and all applicable laws,
regulations and requirements of the Local Option Municipal Economic
Development Act.
Further examples of eligible activities include expenses related
to business recruitment, promotional activities and related
administrative expenses and could include, but not be limited to, such
costs as salaries, travel, office expenses, advertising, legal and
related costs.
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, Nebraska as competitive as possible in that market place
and in the creation/retention of jobs in the Blair area, the use of
funds for any project or program for the purpose of providing direct
or indirect financial assistance to a qualifying business and the
payment of related costs and expenses as allowed by Section 6 of LB
840, except the creation of a loan fund, shall be eligible activities
under this Economic Development Plan.
ELIGIBLE TYPES OF BUSINESSES
1) A qualifying business shall mean any corporation, partnership, or
sole proprietorship which derives its principal source of income
from any of the following:
1. The manufacture of articles of commerce;
2. The conduct of research and development;
3. The processing, storage, transport, or sale of goods or
commodities which are sold or traded in interstate commerce;
4. The sale of services in interstate commerce;
5. Headquarters facilities relating to eligible activities as
listed in this section;
6. Telecommunications activities; or
7. Tourism -related activities.
2) If a business, which would otherwise be a qualifying business,
employs people and carries on activities in more than one city in
Nebraska or will do so at any time during the first year following
its application for participation in an economic development
program, it shall be a qualifying business only if, in each such
city, it maintains employment for the first two years of its
participation in the economic development program at a level not
less than its average employment in such city over the
twelve-month period preceding participation.
3) Any other businesses deemed -as a qualifying business through
future action of the Nebraska Legislature.
SECTION 4
SOURCE OF FUNDING FOR ECONOMIC DEVELOPMENT PROGRAM
The Blair Economic Development Program will be funded by the
proceeds from a 1/2 cent city sales and use tax for Blair with a
maximum amount to be appropriated in each year for the economic
development program of $400,000. A maximum of four hundred thousand
dollars.. ($400,000) will be collected each year for a period of three
years for the Economic Development Program, from April 1, 1993 to
March 31, 1996. The total maximum amount of money that is proposed to
be collected from local sources of revenue to finance the Economic
Development Program is $1,200,000.
Preliminary Proposed Budget
Total to be collected:
$1,200,000
Land Acquisition for *Cargill Wet Corn $ 975,000
Milling Project
Additional land acquisition; industrial
development; infrastructure construction;
promotion/recruitment marketing; contractual
and administrative expenses including fees
and costs to Gateway Development. 225,000
$1,200,000
SECTION 5
PROCESS OF QUALIFYING BUSINESSES TO SUBMIT
APPLICATION FOR FINANCIAL ASSISTANCE
The intent of the City of Blair is to contract with Gateway
Development, a non—profit corporation, or another outside entity
(herein referred to as "Contractor"), to administer the Economic
Development Program. Contractor will be responsible for development
of procedures to insure the confidentiality of business information
received from applicants for financial assistance. These will include
a restriction on the number of people with access to the files with
the contractor responsible for their safekeeping. These procedures
will be subject to approval by the Blair City Council.
To be considered for direct or indirect financial assistance under
the Blair Economic Development Program an applicant must provide to
Contractor financial and business information, as necessary, to
determine the economic viability of the proposed project(s).
Contractor will review applications and requests for direct or
indirect financial assistance in the order in which they are received
by contractor. Application review and approval, or disapproval, by
contractor will be based on project feasibility as determined by
review of and the potential future economic benefit to the community
of Blair.
Contractor will be responsible for verification of information in
the applications of those eligible businesses which receive a
recommendation for financial assistance before recommendation is made
to the City Council. The City Council will consider recommendations
and the final decision on the provision of financial assistance or on
the purchase or sale of land will be made by the City Council.
In the event of termination
between the City and Contractor,
of the contractual relationship
the above described responsibilities
will be carried out by another contractor, by existing city staff or
by an economic development specialist hired by the City.
SECTION 6
ADMINISTRATIVE SYSTEM
The intent of the City of Blair is to contract with Gateway
Development, or another outside entity (hereinafter referred to as
"Contractor"), for the administration of the Economic Development
Program. As administrator of the Economic Development Program,
Contractor will have the responsibility of:
* General administration of the program
* Providing the Citizen Review Advisory Committee with necessary
information and advising the committee on the economic
development program.
* Reviewing applications of qualifying businesses for direct or
indirect financial assistance and making recommendations to the
city council for their action.
* Tracking employment figures for participating businesses for two
years if business employs person in other Nebraska communities.
* Additional responsibilities, as determined by the City of
Blair, necessary to carry out the program or program changes as
dictated by changing project needs and economic condition.
Additional administrative responsibilities of the Economic
Development program that the City may be required to perform will be
carried out by existing city staff. In the event of the termination
of the contractual relationship between the City and Gateway
Development Corporation for administration of the Economic Development
Program the City may contract with another outside entity, administer
the program with existing city staff or hire an economic development
specialist to carry out the administrative and promotional 'activities
currently anticipated to be' handled contractually by Gateway
Development Corporation.
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SECTION 7
PROCESS TO ASSURE ALL APPLICABLE LAWS, REGULATIONS AND
REQUIREMENTS ARE MET BY THE CITY AND QUALIFYING BUSINESSES
1) Contractor as administrator, will be responsible for procedures to
insure that all applicable laws, regulations and requirements are met
by the municipality and the qualifying business which receive
assistance. These procedures will be subject to review and approval
by the Blair City Council.
2) The City of Blair will direct the City Attorney to review all
contracts, official documents, land transactions and other official
actions related to the economic development program to ensure
compliance with existing law and to monitor changes in the law to
ensure future compliance.
3) A Citizen Advisory Review Committee will be created to:
A) Review the functioning and progress of the economic development
program at regular meetings and advise the City Council of the
City of Blair with regard to the program; and
B) Report to the City rnmicil on its findings and suggestions at a
public hearing called for that purpose, at least once in every
six-month period after the effective date of the ordinance.