Welcome 2010 Nebraska State Fair!

The purpose of the Nebraska State Fair is to educate and entertain, recognize individual achievements, celebrate excellences in agriculture, industry, commerce, arts, sciences and technology, and reinforce a sense of community and shared culture for the citizens of Nebraska.

Infrastructure/Buildings

Photo Gallery

Finances

Developments/Updates

Preliminary Infrastructure and Buildings
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Proposed Park for Fair - Overall View of Park - Layout Plan for Park

Preliminary Proposed Improvements
Exhibition/Multi-Purpose Buildings
· 100,000 square feet building
· 50,000 square feet building
· Remodel Fonner Park Grandstand and Concourse
Livestock Barns
· 100,000 square feet (enclosed)
· 100,000 (open air)
Equine Barns
· 2 - 75,000 barns

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Bill Signing Photo Gallery
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Finances

Total Improvements = $42 million
Outside Funding = $33.5 million
Community Funding = $8.5 million

Community Funding Opportunities
· Public/Private Partnerships
· Support from corporations, individuals, local and state-wide foundations
· Potential revenue stream from public sources
· City occupation tax expansion paid by non-residents
· Hall County Agricultural Society
· Economic Development and/or CRA funds, County keno proceeds


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Developments/Updates

The selling of Grand Island as the new home for the Nebraska State Fair was successful in Lincoln, but now the sales job begins in earnest back home.

Tuesday night, the Grand Island City Council is to discuss whether it wants to be involved -- and if yes, to what extent.

Under state law, Grand Island is to provide $8.5 million in local funds to relocate the fair from Lincoln to Grand Island by 2010.

"We do not believe that the statute necessarily obligates the ’city' as an entity to any portion of the $8.5 million," Grand Island City Administrator Jeff Pederson said, emphasizing "city." "Nonetheless, I think it's understood -- and probably expected -- that the city be a participant in that."

If the city does want to be involved, Pederson and his administrative team have some specific thoughts about involvement.

A $5 million bond

The city could help in raising immediate capital by issuing a bond, Pederson said, but he recommended no more than $5 million.

A bond in excess of $5 million would require a public vote. There is no available, regularly scheduled election before the Oct. 1 deadline when the first $3 million must be committed to keep the project alive.

A total of $6 million must be committed by Feb. 1, 2009, and the full $8.5 million must be committed by July 1, 2009.

City Finance Director David Springer advised the bond be paid off in 10 years or less. He's preparing numbers for Tuesday's study session that illustrate bond retirement in five, seven or 10 years. Retiring the debt in 10 years would require an annual payment of $615,000.

Need a new tax

A new tax would be required to pay off the bond, Pederson said.

"A hotel tax has been mentioned. A food and beverage tax has been mentioned," he said.

"Some sales tax is a possibility coming out of the existing sales tax levy that the city has -- it's a possibility although whether it's feasible or not is another question because the city's existing tax levies, be they sales or property tax, are already fully committed for general fund operations," Pederson said.

That commitment includes the $750,000 of sales and property tax that goes annually into the LB840 Local Option Municipal Economic Development Program funds and the $500,000 of property tax collected annually for the Community Redevelopment Authority (CRA).

The Grand Island Area Chamber of Commerce committee that successfully lobbied to move the State Fair to Grand Island has suggested a type of financial cocktail that would draw upon a number of taxes and private donations to reach the $8.5 million funding level.

The ingredients of the financial cocktail could annually include $150,000 of Hall County keno proceeds, $125,000 of LB840 funds, $125,000 of CRA funds and $235,000 from a 2 percent hike in the hotel/motel occupation tax.

Pederson objects to pulling taxes away from existing city accounts.

Local hotels and motels opposed an increase in the occupation tax. Motel and hotel rooms are already subject to taxes totaling 14 percent. That's 1 percent more than rooms in Hastings and the same percent charged for rooms in Kearney.

Pederson is also concerned about possible suggestions of the Hall County Agricultural Society -- the organization that runs the Hall County Fair -- raising its property tax levy. It currently brings in about $153,000 a year.

"The Ag Society tax would be borne directly by residents of Hall County and … would add to the corporate property tax levy of Grand Island as well as Hall County. Well, who wants to do that?" Pederson asked.

The leading taxes for consideration, in Pederson's mind, are the hotel/motel tax and food and beverage tax.

A 2 percent hotel/motel tax is estimated to generate about $235,000 a year. A 1 percent tax on the local food and beverage industry is estimated to generate $725,000 a year.

"What's similar (with a hotel/motel tax and food/beverage tax) is that it's not a 100 percent obligation of residents of Grand Island such as what property taxes would be," Pederson said. "A certain percentage of that is paid by visitors who come to the community."

"We really need for the county to be participating in this," said Grand Island Mayor Margaret Hornady.

City needs to own a building

Pederson said if the city does issue a bond to help pay for improvements to the State Fair campus at Fonner Park, its bonding agents require some collateral.

"We believe if the city were to bond for some of the $8.5 million, that through the bonding obligations would come city ownership or ongoing city interest in building or buildings for which that money would be directed," Pederson said.

"We think it's (mandatory) if we issue bonds," he said. "We don't know that it's mandatory by the State Fair statute, but through the issuance of bonds -- public bonds to be retired through public money -- we think we need to have an ownership position in whatever that money was used for."

That ownership could be a partial interest in a number of buildings or a greater interest in a few buildings, Pederson said.

Besides the question of a bond and a new tax, the city could also consider providing infrastructure improvements.

Pederson said the chamber committee suggested a new north-south road that would connect Stolley Park Road and Fonner Park Road. A roundabout at the new road's midpoint could serve as a new main entrance.

Total road cost is estimated to be $650,000 to $670,000, Pederson said.

Water and sewer improvements to the State Fair campus are also estimated to cost $650,000, Pederson said. Electrical improvement costs have yet to be calculated, but are expected to be available by Tuesday night.

The infrastructure numbers already totaled show that the chamber committee's estimates "were low," he said.

Bottom line is that the city council needs to decide if it's going to be involved -- and if it is, an acceptable, workable, feasible funding option needs to be determined, Pederson said.

The council can't make formal decisions at a study session, but can articulate the direction it may want to proceed.

The council study session is open to the public and begins at 7 p.m. Tuesday.

City funding highlights

‰ $5 million is the maximum bond the city wants to consider.

‰ A new tax is needed to pay off any level of bond.

‰ The bond should be paid off in 10 years or less.

‰ The city must own all or part of one or more new buildings built with the bond.

‰ About $200,000 of additional money is needed to match state lottery proceeds that go to the fair.

If you go

What: Grand Island City Council study session.

When: 7 p.m. Tuesday.

Where: Grand Island City Hall, 100 E. First St.

Topic: Possible city funding and infrastructure commitments to bring the Nebraska State Fair to Grand Island.

-Provided by The Independent

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