Relaxed creative district grant requirement clears first round

A measure intended to give the state Department of Economic Development more flexibility when granting certain funds advanced from general file Feb. 19.

Currently, the department may award grants to municipalities under the Civic and Community Center Financing Act. Grants are funded by a portion of the state sales tax revenue generated by arenas and associated hotels and retailers.

Municipalities currently must partner with a certified creative district to be eligible for a grant. Authorized by the Legislature in 2020, creative districts are certified by the Nebraska Arts Council and distinguished by geography and artistic or cultural activities or facilities.

LB778, introduced by Lincoln Sen. George Dungan, instead would require the department to give preference to any municipality that is partnered with a creative district when awarding grants under the act from July 1, 2027, to June 30, 2028.

Dungan said the change would prioritize communities that partner with creative districts without preventing otherwise eligible cities from receiving grants.

The bill advanced to select file on a vote of 31-0.