Municipal infrastructure aid program created

Senators gave final approval April 11 to a new program intended to help certain Nebraska cities pay for infrastructure improvements needed to attract manufacturers and other companies.

LB600, introduced by Sen. Loren Lippincott of Central City, creates the Municipality Infrastructure Aid Act.

Under the act, first or second class cities or villages with a redevelopment plan approved under the Community Development Law may apply to the state Department of Economic Development for a grant to finance water and sewer systems, roads, bridges and activities related to site development.

In its application, a city or village must describe how the proposed improvements would attract and support any new business or business expansion and how that activity would create additional jobs in or near the city or village, among other information.

Applications also must include a cost-benefit analysis of the redevelopment plan. Only applications with a positive analysis may receive a grant.

Grants are limited to no more than $5 million per application and grantees must provide matching funds equal to at least 25% of the amount of the grant.

As amended on select file, the bill requires the state treasurer to transfer $5 million from the state Cash Reserve Fund to the new program’s fund before July 15, 2024.

LB600 passed on a vote of 47-0 and takes effect immediately.