Redevelopment process for former defense sites approved

Lawmakers gave final approval May 23 to a bill intended to provide greater latitude for economic development outside of city limits in Nebraska.

LB66, introduced by Ogallala Sen. Ken Schilz, creates a process for a city to use tax increment financing (TIF) for formerly used defense sites outside of 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 may use TIF to create a redevelopment project.

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

The bill passed on a 40-0 vote.