The Neligh City Council unanimously approved using tax increment financing to assist in redeveloping the area that previously was Helmer’s Furniture and the Neligh Locker.
Craig and Melissa Smith of Neligh own Mill Pointe LLC and plan to construct a building on the property with four commercial spaces, as well as a public parking lot with 24 new spaces.
No one spoke during Tuesday’s public hearing on the adoption of the redevelopment plan and approval of the redevelopment agreement, which will allow tax increment financing (TIF) to be utilized for the public parking lot. Steph Wanek made the motion to approve the Mill Point Project Redevelopment Agreement, while Ted Hughes seconded.
TIF is a state authorized public funding mechanism for municipalities that helps pay for public improvements associated with redevelopment projects in blighted and substandard areas. The same process was used when The Willows Assisted Living was transitioned from a trailer park to a property that’s added nearly $1.5 million to the tax base.
Economic Development Director Greg Ptacek told council members the project currently generates $288 in property taxes and is estimated to bring in $11,362 when complete.
“The difference will be $11,074, and we will use that over 15 years to pay for the public infrastructure - specifically the parking lot, which will be completely open to public access,” Ptacek said.
Estimates for the parking lot expense is $125,000. Ptacek said Mill Pointe LLC will gain $107,848 out of TIF for that infrastructure.
Hughes asked if the infrastructure would be paid off sooner than 15 years. Ptacek said TIF would be capped, meaning once the funding is paid out, the property would be added back to the tax roll. He said that could be sooner than 15 years.
On Monday, both the Community Redevelopment Authority (CRA) and Neligh Planning Commission unanimously approved sending the resolution to the City Council for approval.