York City Council to have LB 840 discussion

YORK – Besides regular housekeeping tasks, there is only one agenda item scheduled this week for the York City Council’s meeting – to have a discussion about LB 840.

Back in 1991, Nebraska’s LB 840 created the Local Option Municipal Economic Development Act.

This act authorized incorporated cities and villages – if approved by local voters – to collect and appropriate local tax dollars, including sales and/or property tax, for economic development purposes.

According to the Nebraska Department of Economic Development, “to implement a LB 840 program, communities formulate a written economic development plan which, if voter-approved, becomes the foundation for the collection and expenditure of local tax revenues for economic development under which the municipality’s LB 840 program operates.”

All Nebraska cities and villages are eligible to seek local voter approval and participate in LB 840.

The NDED outlines eligible activities, with programs to include:

  • Direct loans or grants to qualifying businesses for fixed assets and/or working capital;
  • Loan guarantees for qualifying businesses;
  • Grants for public works improvements which are essential for the location or expansion of a qualifying business;
  • Grants or loans for job training;
  • The purchase of real estate, options for such purchases, and renewals or extensions;
  • Grants or loans to businesses to provide relocation incentives for new residents;
  • Payments for salaries and support of city staff or the contracting of an outside entity to implement the economic development program;
  • Grants or loans for the construction or rehabilitation for sale or lease of housing for persons of low or moderate income;
  • Grants or loans for the construction or rehabilitation for sale or lease of housing as part of a Workforce Housing Plan.

Many Nebraska communities have already implemented LB 840. The NDED said those communities are Ainsworth, Albion, Alliance, Arapahoe, Arnold, Atkinson, Bancroft, Bassett, Bayard, Beatrice, Beaver City, Beemer, Bellevue, Blair, Burwell, Cambridge, Callaway, Chadron, Chappell, Central City, Columbus, Cozad, Clearwater, Crofton, Curtis, Crete, Deshler, Doniphan, Decatur, Ewing, Fairbury, Falls City, Fremont, Fullerton, Geneva, Gering, Gothenburg, Grand Island, Hartington, Holdrege, Imperial, Kimball, La Vista, Lexington, Louisville, Loup City, McCook, Milford, Mitchell, Nebraska City, Neligh, Norfolk, North Platte, Ogallala, O’Neill, Ord, Oshkosh, Plainview, Plattsmouth, Ravenna, Sargent, Scribner, Schuyler, Scottsbluff, Seward, Sidney, South Sioux City, St. Paul, Stromsburg, Stuart, Superior, Sutherland, Sutton, Tecumseh, Tekamah, Valentine, Wakefield, Wayne and West Point.

The agenda point on Thursday, for the council, is discussion only with the purpose of being informational.

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