{"id":25282,"date":"2019-03-06T16:21:40","date_gmt":"2019-03-06T22:21:40","guid":{"rendered":"http:\/\/update.legislature.ne.gov\/?p=25282"},"modified":"2019-03-06T16:59:17","modified_gmt":"2019-03-06T22:59:17","slug":"tif-repayment-extension-proposed","status":"publish","type":"post","link":"https:\/\/update.legislature.ne.gov\/?p=25282","title":{"rendered":"TIF repayment extension proposed"},"content":{"rendered":"

Communities could extend the maximum length of time to repay tax-increment financing indebtedness in certain cases under a proposal heard March 5 by the Urban Affairs Committee.<\/p>\n

\"Sen.
Sen. Justin Wayne<\/figcaption><\/figure>\n

LR14CA, introduced by Sen. Justin Wayne of Omaha, would place a proposed constitutional amendment on the November 2020 general election ballot. The amendment would authorize the Legislature to extend the maximum repayment period for TIF indebtedness from 15 to 20 years if more than half of the property in a project area was designated as extremely blighted.<\/p>\n

The committee held a joint hearing on LR14CA and LB648\u2014a bill introduced by Wayne that would implement the provisions of LR14CA if the proposed constitutional amendment is approved by voters.<\/p>\n

Wayne said that many Nebraska cities struggle to attract developers to revitalize neighborhoods that are designated substandard and blighted, a challenge that becomes even more difficult in areas that are extremely blighted\u2014those with high poverty levels and high unemployment rates.<\/p>\n

\u201cLR14CA will help incentivize the use of TIF where it is sorely needed,\u201d Wayne said. \u201cThis is a targeted approach.\u201d<\/p>\n

Only Nebraska and Montana currently have a 15-year maximum length of time for TIF bonds to be repaid, he said, however Montana allows for projects to be extended up to 25 years, making Nebraska\u2019s repayment period the most restrictive in the country.<\/p>\n

David Landis, urban affairs director for the city of Lincoln, testified in support of the proposal. Developers always will choose a project that is easier if given the choice, he said, so cities need to incentivize them in order to bring development to areas with extreme poverty and unemployment.<\/p>\n

\u201cYou get the behavior you reward,\u201d Landis said.<\/p>\n

Jennifer Taylor, assistant city attorney for the city of Omaha, also testified in favor. She said that in some areas of north Omaha developers have to put in streets, sewers and sidewalks along with physical structures.<\/p>\n

\u201cThose are all significant infrastructure costs,\u201d she said, adding that allowing a developer additional time to amortize their debt service could make the difference in development decisions.<\/p>\n

Lynn Rex of the League of Nebraska Municipalities also supported the measure, saying it\u2019s important for Nebraska to provide the kind of assistance to cities that neighboring states do.<\/p>\n

\u201cIt\u2019s an investment in your community,\u201d Rex said. \u201cThese are projects that wouldn\u2019t happen but for tax-increment financing.\u201d<\/p>\n

Jon Cannon, deputy director of the Nebraska Association of County Officials, testified in opposition to LB648.<\/p>\n

Cannon said that expanding the repayment period could encourage developers to try to get more areas designated as extremely blighted in order to qualify for the longer repayment period. This would keep property off the tax rolls for an additional five years, he said, requiring taxpayers in surrounding areas to pay for increased services.<\/p>\n

\u201cIf you paint the bullseye, don\u2019t be surprised when someone is going to aim at the target,\u201d Cannon said.<\/p>\n

The committee took no immediate action on the proposal.<\/p>\n","protected":false},"excerpt":{"rendered":"

Communities could extend the maximum length of time to repay tax-increment financing indebtedness in certain cases under a proposal heard March 5 by the Urban Affairs Committee.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[23],"tags":[191],"class_list":["post-25282","post","type-post","status-publish","format-standard","hentry","category-urban-affairs","tag-sen-justin-wayne"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/25282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25282"}],"version-history":[{"count":3,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/25282\/revisions"}],"predecessor-version":[{"id":25293,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=\/wp\/v2\/posts\/25282\/revisions\/25293"}],"wp:attachment":[{"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/update.legislature.ne.gov\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}