The North Platte city council approved an additional $3.3 million in tax incentives for improvements at District 177, the former shopping mall, after an hour-long discussion Tuesday evening behind closed doors.
Councilmen Brad Garrick and Ed Rieker voted against increasing the tax incentive, and Councilman Ty Lucas, a banker, recused himself from the vote due to a conflict of interest.
The vote was 5-2.
The council’s approval was an answer to a 10-month-old request from District 177 co-owner Mike Works, who asked to amend an existing ordinance and allow an additional $3.3 million in the occupation tax — a 1.95% tax on retail items that are purchased at shops and stores in the district.
Before the redevelopment began in 2020, the district was declared an “Enhanced Employment Area,” allowing about $8 million to be collected through the tax over the ensuing 20 years, incentivizing the $70 million development and the jobs, business activity and revenue it would bring.
The money from the EEA tax goes to the developer — Works’ company, Rev Development.
Works’ request for more money was initially tabled in May, after it came to light that five contractors had not been paid for their work and were filing liens against District 177 and general contractor New Generation Construction.
In early January, Works again asked the council for the $3.3 million over 17 years to help renovate the mall’s east side, and to also construct a mixed-use building on the southeast corner of the property, south of the Golden Ticket cinema, with retail shops on the ground floor and apartments on the upper floors. His request would bring the total EEA bond to $10.8 million.
Works said the disputes with unpaid contractors had been settled, except in two cases. He did not mention a third contractor in North Platte, Hall’s Electric, who filed four lawsuits on Jan. 8.
In a relatively heated discussion at the council’s Jan. 21 meeting, some council members asked for specific construction to be accomplished by specified dates. Works said there were too many moving parts to the project to set specific dates, but pointed out that he does not receive the EEA tax revenue until work is completed.
The council tabled his request.
The request was back on the agenda Tuesday. The council went into executive session for just over an hour. There was no discussion of the issue when they returned to open session.
Councilmen Brian Flanders and Nick McNew thanked the council, Works, and everyone who worked on the contract. They expressed appreciation for what the district brings to the city. The vote was then taken and the additional funds were approved.
In recent weeks, Works said he has an offer from Ollie’s Discount Store to move into the back half of the old JC Penney store once the renovations are complete. Ollie’s front door entrance would be on the east side of the original building.
Funds for softball
In other business, the council unanimously voted to use $83,743 from the city’s Keno fund to renovate the softball fields at the Dowhower Complex. The city will contract with Golf and Sports Solutions for the renovations, which will include removing the grass “lip” between the infield and outfield, squaring up the run paths, laser leveling infields, and adding soil conditioner. The laser leveling will allow the field to be crowned to help with water drainage.
Councilman Pete Volz said maintenance of the fields will be essential once renovations are complete. He said it would take time and upkeep to ensure that the upgrades last.
Councilman Ty Lucas asked why the city was funding renovations fully for these fields instead of splitting the cost with the users, as they did with the North Platte Youth Baseball group for renovation of little league fields at Centennial Park.
City Administrator Layne Grroseth said the fields at Centennial are primarily used only by little league teams, while the fields at Dowhower complex is used by multiple teams, from high school to the semi-pro North Platte 80’s.
Lisa Burke, the executive director of Visit North Platte, said the overall revenue generated by four tournaments held at Dowhower Complex between April 1-June 8 amounts to nearly $2.3 million for the city’s economy.
Lakeview Apartments
In December, the council approved an amended redevelopment plan for Lakeview Apartments on the west side, allowing the project $825,000 more in tax increment financing. The amendment adds five more buildings to the existing plan for 25 of the eight-plex buildings.
The lots for the five apartment buildings were initially zoned for commercial use. However, with little interest in commercial development, the developer, North Platte Apts Investments, asked to build five more apartment buildings, which required rezoning.
On Tuesday, the council held public hearings Tuesday about the rezoning. No one from the public spoke at either of the two hearings. The first was to amend the land use from commercial to medium-density single-family, duplex, and multi-family buildings. The second was to rezone the property from a B-1 neighborhood commercial district to an R-3 dwelling district.
The council voted unanimously to approve both the land use change and the rezoning, paving the way for construction to begin.
In other business, the council approved:
- A resolution for the Nebraskaland Days parade on June 21 on the same route as last year.
- The second reading of the amendment of the animal control ordinance from a fixed fee to a sliding scale fee.
- The minutes of the Jan. 21 meeting.
- The treasurer’s report for December.
- Paying the claims (the bills).
Editor George Lauby contributed to this report.
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Never even heard of a ollies store before. That extra tax incentive makes me avoid shopping in store. No thanks
“Secret and behind closed doors” is never good
In the interests of clarity — Closed-door discussions are allowed in government by the affirmative vote of a majority of the body’s voting members if it is clearly necessary (1) for the protection of the public interest, or (2) for the prevention of needless injury to an individual.
Some examples are — collective bargaining, real estate purchases, pending litigation, deployment of security personnel or devices, and investigative proceedings regarding allegations of criminal misconduct, according to the Nebraska Attorney General.
The term “secret,” which was initially used in this report, is not meant to imply that the existence of closed-door session was unknown to the public.
WTF! Secret behind doors meetings is what messed up OUR country in the first place! STOP HIDING AND BE TRANSPARENT OR GET OUT OR WE WILL VOTE YOU OUT!!! We are sick and tired of this BS!
Just because they’re allowed doesn’t make it right. Closed meetings are used to hide things they know Citizens won’t go along with. Our Council needs to be replaced.
Since the council approved the extra $3.3 million then the first thing that I will be looking for is the back parking lot to be redone (as well as the south side especially the corner around the building). The north side parking lot needs to be redone as well. Get those things done first and I will be happy.
Steve Smith Owner Mike Works said at the Jan. 21 meeting they plan to fill the pot holes fairly soon. They will reseal and stripe the parking lot as development needs.
Can someone please explain to me how taxpayer dollars can now be funneled to private party businesses? It has always been my understanding that taxes are to improve the community,NOT to line someones pockets.Maybe THIS is why it was a closed door meeting held during the day with no notice of itinerary…
Terry, the possibility of an EEA (enhanced employment area) tax was created by a state law. Its intention is to pay for infrastructure improvements such as paving and utilities for new developments that create jobs and boost the economy. The closed-door discussion was held during the publicized city council meeting at the appropriate time on the agenda. The meeting was not a secret, just the discussion.
Randy Sanchez you do realize almost every town in Nebraska our size or bigger has this same extra tax you pay when shopping there right? Its to help pay for infrastructure improvements and without it there would not be any.
There are over 500 Oillies Discount stores currently. The closest one is in Hays Kansas.
The mall looks nothing like what we were promised, no sorely needed grocery store or big box store. All this council is worried about is providing apartments for the new employees of the packing plant. It appears to me it’s nothing but a gift for special interest groups.
These extra taxes make it an uneven playing field. Most businesses must (and do) have the ability to manage the cost of construction and financial awareness to manage costs. Making the taxpayer pony up so that a business may maintain its probability is a slap in the face to its consumers and constituents that voted these lawmakers into place. You can’t preach being fiscally conservative and hand out money to a very very small group of individuals.