Riverfront development authority proposed

A new economic development tool aimed at riverfront areas was proposed Feb. 16 in an Urban Affairs Committee hearing.

LB806, introduced by Omaha Sen. Heath Mello, would adopt the Riverfront Development District Act. Mello said the bill would provide a framework for city leaders that could be tailored to the needs of an individual municipality.

“LB806 would create a new organizational tool for strategic and intentional municipal economic development and tourism efforts focused on riverfront areas across Nebraska,” he said.

Under the bill a metropolitan, primary, first- or second-class city could create a riverfront development district and appoint an authority of five or more members to oversee and manage the district. Two or more cities with a contiguous riverfront could enter into a joint authority.

Among other provisions, the authority would have the power to:
• invest in instruments, obligations, securities or property;
• develop, manage and coordinate public activities and events within the district;
• install pedestrian shopping malls or plazas and other facilities;
• fix, charge and collect rents and fees; and
• issue limited obligation bonds secured by a pledge of any revenue of the authority or by mortgage of property owned by the authority.

No member of, or employee of, an authority could have any interest in or contract with the authority.

Mello said several technical issues and concerns had arisen since the bill was introduced. He said he would be offering an amendment to clarify a cap on bonding authority and address a potential overlap of levies with business improvement districts.

Gary Krumland of the League of Nebraska Municipalities testified in support of LB806, saying approximately 25 municipalities would be eligible to utilize the bill’s provisions. Several cities have expressed an interest in using a riverfront development district to enhance their community for residents and tourists, he said.

“It would allow cities to take advantage of the natural resource of the rivers that flow along or through them,” Krumland said.

Stan Staab, co-chairperson of the Norfolk Development Group, also supported the bill. A riverfront development district could help Norfolk continue to develop the area along the Elkhorn River, he said.

“Passage of this bill will allow both metro and rural communities to develop and promote usage of our rivers for economic and recreational purposes,” Staab said.

No one testified in opposition to the bill and the committee took no immediate action on it.