Commercial site development bill advanced

Senators gave first-round approval March 22 to a bill intended to facilitate development of industrial sites and buildings in Nebraska.

LB388, introduced by Lexington Sen. John Wightman at the request of the governor, would create the Site and Building Development Fund to provide financial assistance to public and nonprofit developers for land and infrastructure costs associated with development.

The fund would be administered by the state Department of Economic Development (DED) and could provide loans, grants, subsidies, credit enhancements and other financial assistance.

Developers would be required to provide 100 percent matching funds and at least 40 percent of the fund would be earmarked for nonmetropolitan areas, defined as counties with a population under 100,000.

Wightman said low utility rates and a favorable tax structure make Nebraska attractive to developers but a lack of industrial sites ready for development causes businesses to look elsewhere.

“Nebraska has little capacity in terms of industry ready sites or assets,” he said.

As introduced, the bill would have transferred $3 million from the Affordable Housing Trust Fund to the Site and Building Development Fund in October 2011. Continued funding would be provided by directing to the development fund 30 cents of every $1.75 remitted to the state annually from the Real Estate Documentary Stamp Fee.

Wightman offered an amendment that would lower the transfer from the Affordable Housing Trust Fund to $1 million per year for two years and would lower the documentary stamp tax transfer from 30 cents to 25 cents.

Wightman said the transfers combined with stamp tax revenue would provide adequate funding for commercial economic development while protecting the state’s interest in supporting affordable housing.

“The state remains committed to affordable housing development,” he said. “But people must have jobs to afford any housing.”

Schuyler Sen. Chris Langemeier supported the bill but opposed Wightman’s amendment, saying it would fail to provide sufficient funding to attract businesses to Nebraska.

“I think you’ve watered it down so far that it doesn’t do anything,” he said.

Following defeat of the Wightman amendment on a 21-20 vote, Lincoln Sen. Danielle Conrad filed a motion to reconsider the vote.

Conrad said senators should respect the amendment as a compromise between the DED and those concerned about adequate funding for affordable housing and should move the bill forward as a critical component of the governor’s overall budget package.

“They had reached a sound and important compromise,” she said.

Norfolk Sen. Mike Flood supported the motion, saying the bill’s funding formula could be revisited during the next round of debate.

“I think there is more discussion that can happen,” he said.

After agreeing to reconsider the vote, lawmakers approved the Wightman amendment on a 34-1 vote and advanced the bill 38-0.