Redevelopment process for former defense sites advances

Lawmakers gave first-round approval April 29 to a bill intended to provide greater latitude for economic development outside of city limits in Nebraska.

LB66, introduced by Ogallala Sen. Ken Schilz, originally would have provided a process for cities of the first class to annex certain noncontiguous land.

An Urban Affairs Committee amendment, adopted 24-0, replaced the bill. As amended, LB66 would create a process for a city to use tax increment financing (TIF) only for formerly used defense sites outside of the city limits, but within the same county.

A formerly used defense site is defined as real property that was formerly owned by, leased to or otherwise possessed by the United States and under the jurisdiction of the Secretary of Defense. Missile silos are excluded from the definition.

Under the bill, an area to be developed must be inside a sanitary improvement district (SID) and the city must file an ordinance declaring intent to annex the formed SID. The city then could use TIF to create a redevelopment project.

Currently existing service areas of electric and natural gas utilities and communications companies would be preserved.

Schilz said there are 69 sites across the state that could qualify for TIF under the bill, and that Nebraska needs to expand opportunities for rural redevelopment projects. He said the bill would encourage manufacturing and other development that could help stem the tide of population decline in rural areas.

“We need greater diversification in our rural economies,” he said. “TIF has been one of the most effective economic development tools that we’ve seen.”

Omaha Sen. Bob Krist supported the bill, saying it would allow cities to take advantage of sites no longer being used for military purposes, rather than having them sit idle.

“Those former military installations already have infrastructure,” he said.

Sen. Scott Price of Bellevue agreed.

“I think it is prudent and good stewardship to utilize the investments that [have been] made,” he said. “It only makes sense to … be good stewards of the tax dollars that we’ve already expended.”

The bill advanced to select file on a 36-0 vote.