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Bomgaars Waterline Project Moves Forward With Financing

8/10/2015

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Bomgaars is now two votes away from receiving tax increment financing for a water main project, thanks to action Monday night from the Re-development Authority of the City of Neligh.

TIF is possible since Bomgaars is now inside city limits due to annexation. TIF funding comes from property taxes from the project itself, not from other people’s taxes. It’s also not a grant; it is a low-interest loan that will be paid back over a 15-year period. 

Greg Ptacek, Neligh Economic Development Director, told board members Bomgaars will pay $12,520 annually, which is an increase of $7,622 to be captured to pay for the water main. 

The board, which is also the Neligh Economic Development Board, unanimously adopted a resolution (2015-05) to authorize the use of TIF for the project. Al Stelling made the motion with Dennis Anderson seconding. It passed 4-0; Ryan Koinzan was absent.

The resolution will now go in front of the Neligh Planning Commission next week. Pending its passage, the City Council will hear the resolution at an Aug. 20 special meeting. 

The board held a public hearing regarding the declaration of an area of Neligh being blighted and substandard and in need of redevelopment pursuant to the Nebraska Community Development Law and to adopt a redevelopment plan for the area. The hearing was also on an amendment identifying a redevelopment project utilizing TIF for the Bomgaars project.

No one spoke at the hearing. The only other individuals attending the hearing were media. 

Two other resolutions were also adopted at the meeting. Anderson made a motion to adopt 2015-03 with Stelling seconding, making a recommendation to the City Council to declare a portion of Neligh blight and substandard. It passed 4-0.

This area is located along the western corridor of Highway 275. 

The third resolution (2015-04) recommended the approval of a redevelopment plan for the City of Neligh. Anderson made the motion with Stelling seconding. It passed 4-0.

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