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All revenue generated by any Local Source of Revenue which is appropriated or collected for this Program, and any earnings from the investment of such funds, shall be deposited into the Good Life District Program Fund which shall be a restricted fund.
The City is authorized to establish subaccounts in the Good Life District Program Fund as determined appropriate.
Any funds in the Fund may only be appropriated and spent for eligible costs of the Program in any amount and at any time at the discretion and direction of City Council, subject to any restrictions which may be established in connection with the authorization and issuance of bonds or pursuant to other contractual obligations as permitted by the Act.
All amounts deposited in the Fund which are not currently required or committed for purposes of the Program shall be invested as provided for in Neb. Rev. Stat. § 77-2341.
The City may pledge, grant, loan, or otherwise utilize any Local Sources of Revenue deposited into the Fund for the payment of any bond indebtedness incurred by the City for purposes of the Program. The City may disburse these funds, once appropriated or collected, only for Program purposes as set forth in Chapter 38, Article II of Grand Island City Code including the payment or reimbursement of eligible costs made pursuant to any supplemental terms and conditions contained in a duly awarded contract. Disbursements may be made to a qualifying business only upon receipt of evidence that such distribution is for the direct payment or reimbursement of an Eligible Cost for work which has been completed in the Program Area pursuant to an approved Application.
The City of Grand Island shall charge a quarterly administrative fee to the Good Life District Program Fund equivalent to 3% of the Local Sources of Revenue deposited with the Fund in the quarter preceding any disbursement. Each quarterly fee shall be charged by the City to the Program Fund within 45 days of the close of each fiscal quarter, and shall be paid prior to payment of any other eligible costs or debt service on bonds which may be payable from the Fund. This quarterly fee shall be used to cover the City’s internal administrative, financial, and legal expenses related to the administration of this Program including the cost of publication of any requests for proposals, meeting notices, or public hearings, and the cost of routine financial management of the Program Fund by employed City personnel. This administrative fee will not cover, and the City shall impose additional administrative charges against the Fund, for the cost of required independent audits, infrastructure expenses, or outside professional services related to a particular project or application, or any necessary contracted professional services or bond related expenses.
Any proceeds from the issuance and sale of bonds pursuant to the Act which provide funds to carry out the Program shall be deposited into the Fund or with a bond trustee pursuant to any resolution, trust indenture, or other security instrument entered into in connection with the issuance of such bonds or as otherwise provided in Neb. Rev. Stat. § 77-4423.
When the Program terminates by expiration of time, or in the event the Program is repealed by Council, the balance of money remaining in the Fund which are not otherwise pledged for the payment of bonds or otherwise committed by contract under the Program, shall be deposited into the general fund of the City. Any funds received by the City by reason of the Program, after the termination of the Program, shall be transferred from the Fund to the general fund as such funds are received.
Notwithstanding anything to the contrary in the Act, any bonds, contracts, or other obligations which remain outstanding or unpaid upon expiration of the Program on June 5, 2054, shall be deemed canceled and extinguished after all remaining amounts held in the Fund have been depleted to pay such bonds, contracts, or other obligations, and the City shall have no continued liability, express or implied, with respect to such bonds, contracts, or other obligations.
The Fund shall remain open after termination of the Program until such time as all bonds, contracts, and other obligations payable from such Fund are no longer outstanding or are extinguished as provided in Neb. Rev. Stat. § 77-4418, and such funds related to them fully accounted for, with no further City action required, and after the completion of a final audit pursuant to Neb. Rev. Stat. § 77-4416.
The Fund shall be audited, annually, as required in Neb. Rev. Stat. § 77-4416. Such audit shall be conducted by a qualified independent accounting firm who does not have any current or prior contractual business relationship with any qualifying business receiving funds or assistance under the Program. The costs of said audit shall be paid from the Fund. The results of such audit shall be filed with the City Clerk and made available for public review.
(Added by Ord. No. 9983, effective 09-03-2024)
Generally
Applications for assistance from the Good Life District Economic Development Program by Applicants other than the City of Grand Island may occur by:
(1) Qualified Response to any City issued Request for Proposals seeking development proposals within the District, or
(2) Direct Application for Program Funds made by a Qualified Business,
Direct Application Process
Direct Applications shall be made on a form to be developed by the City of Grand Island and will include all contents, qualifications, and materials required herein.
Each submitted application shall be accompanied by a non-refundable application fee. These fees shall be codified in the City’s adopted Fee Schedule. Fees shall be based on the amount of Program Funds requested. Should an applicant amend their request after making the initial application fee, they shall remit any increased fee due and owing prior to their application being placed on the Council agenda. No refunds shall be made for reduced requests.
Amount of Program Funds Requested | Application Fee |
Under $500,000 | $2,500 |
$500,000 to $1,500,000 | $5,000 |
$1,500,000 to $3,000,000 | $7,500 |
$3,000,000 to $5,000,000 | $10,000 |
$5,000,000 to $10,000,000 | $20,000 |
Over $10,000,000 | $50,000 |
The City Administrator, or their designee, shall be tasked with developing and implementing the necessary documentation and schedule for initial application review. This process, and any required forms, will be made available and public on the City’s website when developed.
Application materials shall be held in confidence as permitted by Neb. Rev. Stat. § 77-4412(d) and shall not be considered public records until such time as a final application packet is prepared for Council consideration by the City Administrator. Once an applicant has authorized submission of their reviewed application to City Council, the contents of the application packet presented to Council shall no longer be held in confidence. In the event an applicant chooses to withdraw their application prior to submission to City Council, all application materials provided by the applicant will be disregarded and will remain confidential and shall not be a public record. Application materials provided by the applicant during preliminary review, but not forwarded to Council by the City Administrator, shall remain confidential and shall not be a public record.
The Application process will include at least the following steps, procedures, and requirements:
(1) A completed written application and required supporting materials shall be submitted to the City Administrator.
(2) The City Administrator, or their designee, shall review the application to ensure it is complete and includes all supporting materials.
(3) The application will undergo a preliminary, confidential, review by the Administrative Review Team which shall include the following officials or their designee(s): City Administrator, the Finance Director, the Community Development Director, the Public Works Director, the City Attorney, and any other department heads the City Administrator deems necessary.
a. During the preliminary review, each member of the Administrative Review Team may:
i. Request supplemental materials or information from the Applicant.
ii. Make investigatory findings as to eligibility of the applicant and/or project.
iii. Make written recommendations to be forwarded to Council to include suggestions as to schedule es, restrictions, conditions, compliance procedures or modifications necessary.
(4) Upon the conclusion of the preliminary review by the Administrative Review Team the City Administrator will meet in consultation with the application to provide the applicant with the opportunity to:
a. Review the Application Packet prepared by the City Administration for forwarding to City Council for their approval, and/or
b. Present the Applicant with suggested modifications or changes recommended by the Administrative Review Team and permit the Applicant the ability to modify their proposal for no additional application fee, and/or
c. To notify the Applicant that the Administrative Review Team intends to recommend denial of the application and to provide the Applicant the opportunity to withdraw their application, and/or
d. To provide an opportunity for the Applicant to Withdraw their application from consideration by Council for any reason, or no reason at all.
(5) Once Administrative review has been completed, the City Administrator shall cause a packet to be prepared for Council’s consideration which shall include all application materials submitted, recommendations by the Administrative Review Team, and any other materials members of the Administrative Review Team or Applicant deem necessary.
(6) The Applicant shall be entitled to notice that the Administrative Review Process has been completed, notice of the date and time of the City Council meeting at which their application will be considered, and notice that upon submission of their application to City Council all contents of their application shall become public record except for redactions necessary to shield confidential information such as dates of birth, social security numbers, banking/routing information, or items which include information that may jeopardize public safety like the location of critical infrastructure, security features of buildings, or other safety items which serve no public purpose by their release.
(7) City Council shall consider all applications submitted by City Administration during their regular meetings or a special meeting called for the purpose of application review.
(8) After consideration of a properly presented application Council shall pass a resolution reflecting required findings and a determination that an application be approved as submitted, approved subject to restrictions or modifications, rejected with instructions for resubmission directly to Council, or rejected outright.
(9) In addition to their approval, Council shall designate in their resolution whether they are:
a. Authorizing the Mayor to sign any agreements, contracts, or other legal documents submitted by the Applicant, and/or
b. Authorizing the City Administrator and City Attorney to negotiate terms of any agreements, contracts, or other legal documents consistent with the Application for the Mayor’s signature without further action by Council, and/or
c. Will require the applicant to present all proposed agreements, contracts, or other legal documents consistent with the Application for Council review and future approval.
Applicant Qualifications
An Applicant for Program Funds other than the City of Grand Island must be a qualified applicant. To be a qualified applicant the person, entity, or group of persons and entities must:
(1) Be a Qualified Business.
(2) Have, or be able to obtain, minimal insurance coverage which names the City of Grand Island as an additional insured.
(3) Be able to obtain a performance bond in an amount sufficient to guarantee performance of all deliverables for which any Program Funds are requested.
(4) Be committed to legal compliance and must be able to certify that they will conduct all operations consistent with all required local, state, and federal laws.
(5) May not have been debarred, disqualified, or otherwise restricted from participation in any public project within ten (10) years preceding the application.
(6) For payment of eligible costs which are improvements to or related to real property, provide: (1) proof of ownership in property for which program funds would be expended; and/or (2) an exclusive interest in property that can be enforced and encumbered by restriction for a period of not less than 30 years; and/or (3) evidence that any improvements proposed on public property are designed in accordance with relevant industry standards; and/or (4) authorization from all involved property owners for submission of an application and consent for negotiated encumbrance of the property for a period of not less than 30 years.
Application Contents
The City Administrator shall develop an application form or guidance documents to include these documents or their equivalents. In the event an applicant is unable to provide any of the requested materials, the City Administrator may reject the application without submission to Council as an incomplete application. Applications should include:
(1) Supporting documentation to demonstrate the application is made by a qualified applicant.
(2) A Project proposal which shall include, at a minimum:
a. A concise written summary of the project.
b. The total cost of the proposed project and a summary of the financial structure proposed.
c. A developer capital stack for the project prepared by an attorney or financing professional which includes documentation of commitments for financing of the project.
d. A summary of the request for Program Funds including the amount of funding, a proposed disbursement schedule, and whether the request is for payment of project expenses or reimbursement after project completion.
(3) For each request for Program Funds, applicant shall provide written support highlighting how use of the proposed Program Funds exemplifies the Program purposes and goals and outlining why this request should receive funding priority.
(4) For each request for Program Funds, the applicant shall include a developer gap analysis detailing the necessity for the City to provide incentives for the project from Program Funds. This gap analysis should highlight what benefit or return on investment use of Program Funds would provide to the Program that would not exist but for the use of Program Funds, any “but for” analysis which supports that the project benefits would not occur or would be substantially delayed but for use of the Fund.
(5) A draft site plan to include visual site plans, studies, surveys, or other documents.
(6) An estimate of the number of new permanent jobs created within the project.
(7) An estimate of the number of temporary, seasonal, or construction related jobs created within the project.
(8) A list of all occupied structures to be built; to include the type of structure, approximate square footage, and proposed use.
(9) Developer governance documents for each involved developer or sub-developer. If applicable, corporate structure charts showing equity ownership for the project, developer, or landowners.
(10) Projected annual sales estimated for development within the project to include the following details: annual estimated taxable sales, annual estimated non-taxable sales, percentage of taxable sales estimated to be made to out-of-state residents.
(11) Projected annual out-of-state visitors to project.
(12) Supporting documentation for any estimates used in support of sales, visitor, or jobs projections.
(13) Documentation of land acquisition or executed contracts supporting acquisition for such land.
(14) Any purchase agreements, sale agreements, leases, memorandums of understanding, or other commitment documents from businesses described in the site plan or who intend to occupy any buildings included in the list of occupied structures.
(15) Pro forma documents for any hospitality, leisure, recreational, or athletic-related business described in the site plan or who intend to occupy any buildings included in the list of occupied structures.
(16) Proposals for contracts, agreements, deed restrictions, or other encumbrances which provide assurances to the City that the project will be executed to completion or will be sufficiently encumbered so as to leave the City with a demonstrable return on investment should the project fail to be completed.
(17) A summary of any annexations, rezoning actions, or blight studies which are or may be necessary for the project, including a proposed schedule for all preliminary actions which must occur prior to distribution of Program Funds.
(18) Identification of any professionals, consultants, or third parties which may be needed to assist the City or Applicant in the development of the proposed project for whom the applicant is requesting payment or reimbursement of expenses from the Program Fund.
(19) Either: (1) An affidavit confirming that no tax increment financing is, or will be requested, as part of the Project so long as Program Funds are expended or (2) A summary of what tax increment financing is, or may be, requested as part of the project, and a draft of any proposed Redevelopment Plan pursuant to the Nebraska Community Development Law, if tax increment financing is requested for any part of the Project, and a cost-benefit study which includes and incorporates any requested Program Funds.
a. Note that any application for Project Funds is not, and will not be, considered as an applicant for tax increment financing but is merely required as an aid to the City in evaluating the range and scope of incentives requested.
(20) Applicant will include clear and concise statements detailing how their project fits the Program Goals listed below, if applicable:
a. How does the proposed project promote the goals and purposes contained in the Good Life District Transformational Projects Act and Chapter 38, Article II of Grand Island City Code?
b. What makes this project unique and transformational as opposed to normal or routine economic development and growth?
c. How does the project expand the tax base within the Program Area?
d. Does the project demonstrate an ability to generate additional Local Sources of Revenue in an amount equal to, or greater than, the requested initial grant of Program Funds?
e. What impacts will the project have on the provision of public services to include police, fire, schools, and public works?
f. How will this project draw visitors from outside the State of Nebraska?
g. Does this project fill an identified gap in available resources in the City of Grand Island? If so, how?
(21) Per Neb. Rev. Stat. § 77-4412(e):
a. The Applicant will provide adequate documentation to demonstrate the existence of sufficient infrastructure to serve the program area; or how such infrastructure will be created, funded, and maintained by and through the proposed Project.
b. The Applicant will provide required data showing that sufficient capital investment in buildings and facilities exist to generate enough Local Sources of Revenue to Sustain the Program.
c. The Applicant will provide sufficient assurances that substantially all of the eligible costs will be used for the benefit of the Program Area.
Notwithstanding the foregoing, if the Good Life District Applicant is an Applicant for funding from the Program, the Good Life District Applicant shall not be required to submit any additional information about the business structure, business entity, or historical business information of the entity which is the Good Life District Applicant than what was included in the original application to the Nebraska Department of Economic Development for establishing the Good Life District.
City Applications
City Administration may present proposals for the City’s use of the Program Fund directly to City Council who may grant approval of any presented proposal so long as the use of funds is for eligible costs. Such uses may occur within the Program Area which serve the goals and purposes of the Program, provides infrastructure in support of growth within the Program Area or is otherwise related to the Program Area, or other permitted eligible costs.
City Administration may make application to City Council for the ability to use or pledge Program Funds in conjunction with the issuance of any bonds authorized under this Program.
No fee shall be charged for requests made by the City, processed in response to a City-issued request for development proposal, or in furtherance of the issuance or processing of authorized bonds made by the City.
Limitations on Eligible Costs
The City specifically authorizes all defined types of eligible costs contained in 38-14 City; however Council reserves the right to limit, on a per-application basis, the amounts or types of eligible costs as are determined to be in the best interest of the City and the Program, including per-project maximums or maximum portions of project expenses eligible for funding by the Program.
Further Considerations
City Council shall specifically consider, when reviewing applications:
(1) Whether there is sufficient existing infrastructure to serve the Program Area with the addition of this Project; or whether this Project creates the required infrastructure.
(2) Whether any proposed or necessary infrastructure is adequately constructed and funded by and through the proposed Project.
(3) Whether the proposed Project includes sufficient capital investment in buildings and facilities to generate enough Local Sources of Revenue to sustain the Program.
(4) Whether the proposed Project provides sufficient guarantee that substantially all of the eligible costs will be used for the benefit of the Program Area.
(Added by Ord. No. 9983, effective 09-03-2024)
No Projects shall be eligible if the project includes a licensed racetrack enclosure or an authorized gaming operator as such terms are defined in Neb. Rev. Stat. § 9-1103, except for infrastructure or facilities that are publicly owned or are used by or at the direction of the Nebraska State Fair Board, so long as no gaming devices or games of chance are expected to be operated by an authorized gaming operator within any such facilities;
No Projects shall be eligible if the project received funds pursuant to the Shovel-Ready Capital Recovery and Investment Act or the Economic Recovery Act.
No Project shall be eligible if the project includes any portion of a public or private university.
Pursuant to Neb. Rev. Stat. § 77-4405(7)(b), Chapter 38, Article II of the Grand Island City Code shall serve as notice to the Department of Economic Development that the City intends to fully preserve its right to pledge any or all local sources of revenue for the payment of bonds issued pursuant to the Good Life District Economic Development Act and that the City believes removal of any property from the boundaries of an approved Good Life District would not be in the best interest of the City, would be contrary to the goals and purposes of the approved application for the Good Life District, and would jeopardize the City’s ability to honor the voter’s directive that transformational growth be pursued as allowed by the Act.
Should City Council identify parcel(s) of land which are appropriate for removal from the District it may pass a resolution determining that said removal is in the best interest of the City by a two-thirds vote of its Members.
As the City of Grand Island and its citizens have relied on the local sources of revenue needed to fund this Program, any property owner, applicant, or other entity, other than the City of Grand Island, wishing to modify the District as approved, including adding or removing real estate from the District, shall be responsible for all costs and expenses incurred by the City of Grand Island including all administrative and legal expenses, the cost of removing or modifying any infrastructure funded in whole or in part by the Program, the cost of any necessary bond refinancing, and shall remain obligated to impose and collect the Good Life District Occupation Tax so long as the subject property would have been within the approved boundaries of the District but for the modification of the District as approved. Should any costs be so attributed, the City Council shall certify the amount due and owed each quarter and shall cause the same to be levied as an assessment against any real property and may pursue other legal actions as needed to enforce this section.
Demonstration to the State of Nebraska that the required new development costs have been met will include demonstration made by evidence submitted by the District applicant or the City of Grand Island, or any other person who submits satisfactory evidence to the Department of Economic Development.
All persons or entities receiving Good Life District Funds or other financial assistance under this Program shall certify to the City of Grand Island annually the amount they have committed for investment within the District and the amount they have actually expended. This sworn certification shall be due no later than January 15th of each year. Any person or entity failing to make said sworn certification shall be ineligible to receive additional Program funds and will be considered in breach of any funding agreements.
The City shall be authorized to pass any actions necessary to impose and enforce any Local Sources of Revenue as needed to develop and fund the Program Fund.
(Added by Ord. No. 9983, effective 09-03-2024)
City Council reserves the right to amend the authorizing Ordinance and this Chapter of City Code at any time by a two-thirds vote of the members of Council.
City Council may repeal this ordinance in its entirety, subject only to the provisions of any outstanding bonds or existing contracts relating to such program and the rights of any third parties arising from such bonds or contracts. Any effort to repeal the Program Ordinance must be approved by a two-thirds vote of the members of Council.
The City retains the express authority to issue bonds, enter into contracts, or incur other obligations as allowed by the Act subject only to the approval of City Council.
As set forth in Neb. Rev. Stat. § 77-4426, no consent of any department, division, commission, board, bureau, or instrumentality of the State is required and no other proceedings or happenings, or any other conditions or things than those actions required by Council shall be required. The validity of and security for any bonds, contract, or other obligations shall not be affected by the existence or nonexistence of any such consent or other proceedings, conditions, or things. No other proceedings except those required under this Program shall be required. No other laws shall apply to bonds, contracts, or other obligations issued or entered into pursuant to the Good Life District Economic Development Act.
Pursuant to Neb. Rev. Stat. § 77-4427, In any suit, action, or proceeding involving the validity or enforceability of any bonds, contract, or agreement of a city pursuant to the Good Life District Economic Development Act, or the security therefore, brought after the lapse of thirty days after the authorization by the City Council for the issuance of such bonds or entry into such contract or agreement, any such bond, contract or agreement, and the security therefore and provisions therein, reciting in substance that it has been authorized by the city pursuant to the Good Life District Economic Development Act or to provide financing for a Good Life District Economic Development Program shall be conclusively deemed to have been authorized for such purpose and such bonds, contracts, or agreement, and security therefore and provisions therein, issued or delivered pursuant to such authorization shall be conclusively deemed to have been issued, entered into, provided, and carried out in accordance and compliance with the purposes and provisions of the Good Life District Economic Development Act, and deemed to be valid and binding obligations and agreements of the city for the duration of the term of such obligations and agreements as provided therein.
All State actions brought pursuant to the Program shall be brought in the District Court of Hall County, Nebraska. All Federal actions shall be brought in the District of Nebraska.
All applicants for Projects or Program Funds which involve one or more persons, entities, or owners shall waive its right to bring any cause of action related to the Program or any Program Project or any contract for Funds except for those causes of action filed jointly by all impacted persons, entities, or owners other than the City of Grand Island. In the event an action is filed with the consent of all involved parties other than the City of Grand Island, while said cause of action is pending no additional appropriation or distribution of Program Funds or any other public financing authorized by the Act, or as part of any project approval, shall be made until such time as said cause of action is resolved and all applicable appeal times have lapsed. Any appropriations or distributions which would have been made between the filing of said cause of action and the expiration of any opportunity to appeal shall be deemed waived by the applicant for Funds.
If any provisions of the Act are inconsistent with the provisions of any other law of the State of Nebraska, or ordinance of the City of Grand Island, the provisions of the Act shall be controlling.
The powers conferred to the City by the Good Life District Economic Development Act shall be in addition and supplemental to the powers conferred by any other law of Nebraska, including, without limitation, the Local Option Revenue Act, the Community Development Law, the Local Option Municipal Economic Development Act, and the Good Life Transformational Projects Act.
The Good Life District Economic Development Act and all grants of power, authority, rights, or discretion to a city under the act shall be liberally construed, and all incidental powers necessary to carry the act into effect are hereby expressly granted to and conferred upon a city. Nothing in this Program or the Act shall be construed to limit the existing statutory authority of the City of Grand Island.
(Added by Ord. No. 9983, effective 09-03-2024)