Commercial site development bill amended, advanced

Senators expanded and gave second-round approval April 14 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.

As amended on general file, the bill would transfer $1 million per year for two years from the Affordable Housing Trust Fund to the Site and Building Development Fund. Continued funding would be provided by directing to the development fund 25 cents of every $1.75 remitted to the state annually from the Real Estate Documentary Stamp Fee.

Norfolk Sen. Mike Flood offered an amendment during select file debate, adopted 34-0, that would add to the bill a new Industrial Recovery Fund. The fund would be administered by DED and consist of unused funds remitted from projects receiving Affordable Housing Trust Fund dollars.

Flood said approximately $280,000 per year is returned by housing authorities across the state.

The amendment would divert up to $1 million of that returned money to the Industrial Recovery Fund to provide assistance to cities in which a significant private-sector entity downsizes or closes. Funds could be used to upgrade or replace vacant manufacturing facilities quickly, Flood said, preventing extended job loss.

“This emergency fund gives us the ability as a legislature to grant DED authority to step in and do something,” he said. “If this happens in your community, you don’t need affordable housing – you need jobs.”

After adopting the Flood amendment, lawmakers advanced LB388 to final reading by voice vote.