Bill would allow city/county redevelopment projects

The Urban Affairs Committee heard testimony Feb. 14 on a bill that would allow a city to develop land within a 3-mile radius as part of a tax increment financing (TIF) project without acquiring or annexing the land.

Currently, a city can develop land for a TIF project within a 3-mile radius of the city only if it acquires or annexes the land.

Under LB1132, sponsored by Lincoln Sen. Amanda McGill, a city would be allowed to develop land for a TIF project that is essential to redevelopment of a substandard or blighted area without acquiring or annexing the land if a county board approves the project.

“Currently, counties have no authority over city TIF projects,” McGill said.

David Lutton, member of the Saunders County Board of Supervisors, testified in support of the bill, saying the change would allow Ashland and Saunders County to work together to develop abandoned sand and gravel pits north of the city.

Annexing the land currently is not feasible, Lutton said, but developing the site would benefit both the city and county. The city would have an incentive to annex the land eventually and the county would increase its tax valuation, he said.

“We need to find ways of generating tax dollars,” Lutton said.

Larry Dix of the Nebraska Association of County Officials also supported the bill. Counties currently are very limited in their ability to encourage economic development and would appreciate an additional tool, he said.

Omaha Planning Director Ricky Cunningham opposed the bill, saying it would add another layer to the TIF approval process. He said counties should not have veto power over a city’s ability to engage in a TIF project.

Lynn Rex of the League of Nebraska Municipalities agreed. The Nebraska Constitution gives the power to use TIF to cities and villages only, she said.

“Counties do not have the authority to do that,” Rex said. “We’re concerned about the public policy of it.”

The committee took no immediate action on the bill.