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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 0 1 No 3. 4. 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. 0 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.