Council hearing TIF request Monday

McCOOK, Neb. -- City Council will coordinate a public hearing Monday evening to review the latest commercial development hoping to utilize Tax Increment Financing as part of a construction project within city limits.

The developer, Next Generation, is contemplating construction of a $9 million, rail served, ag chemical handling and distribution facility in the McCook Industrial Park, just east of Valmont, according to Monday's meeting packet. The project is asking for $720,000 in TIF assistance, assuming the project generates an estimated property valuation of $4.5 million over the present property valuation base.

"Next Generation will be securing its own loan to pay the up front costs and the city will not incur any financial liability as a result of this plan," according to city staff. The McCook Planning Commission unanimously recommended approval of the redevelopment plan earlier this week.

According to the redevelopment plan, the project would not be economically feasible without the use of tax increment financing and would occur in the community without it.

The McCook City Council has approved more than $2.3 million in TIF assistance for local projects since March of 2015. The city now has more acreage within city limits designated as substandard and blighted, a prerequisite for property considering TIF assistance, than it does occupied for residential use.

In January of 2015, the City of McCook expanded its substandard and blighted area by an additional nine acres to approximately 685 acres in size. McCook has 660 acres occupied for residential uses, according to a 2013 community analysis compiled at the direction of the McCook Planning Commission.

TIF allows governing entities to redirect property taxes paid in excess of a property's value prior to development for a period of up to 15 years. Local taxing entities continue to receive tax receipts throughout a project's TIF commitment at the same level they received prior to the development project.

Other items on Monday's agenda, 6:30 p.m., at the Municipal Center:

* City Council will receive its annual audit report and review from Terry Galloway of Almquist, Maltzahn, Galloway & Luth, CPAs. Galloway's introductory letter includes input repeated annually stressing the importance of City Council remaining "involved in the financial affairs of the city to provide oversight and independent review functions," due to the size of McCook's administrative staff preventing internal controls that would typically remove "opportunity for employees to commit fraud that may go undetected."

* Property acquired by the city from John and Betty Nothnagel, between West R Street and West 7th Street and north of the Red Willow County Fairgrounds, will be considered annexation. The city intends to pave the property to connect West 7th and West R Street. The annexation will be considered immediately following a public hearing coordinated to discuss the item.

* Specifications for the 2017 Armor Coating Project will be considered for approval.

* City Council will host a public hearing to consider a replat request from Jay and Susan Hancock pertaining to a vacant lot north of Our Savior's Lutheran Church and west of Seminole Drive. Approval of the replat will be considering following the hearing.

The Hancock's intend to divide the lot into six separate residential lots. The McCook Planning Commission unanimously approved the replat earlier this week.

* A public hearing will be coordinated to receive a report from the Economic Development Plan Citizen's Advisory Review Committee on meetings held on Jan. 23, 2017, and Oct. 24, 2016.

* A public hearing will be coordinated to discuss an application from Citta Deli for a Class C (beer, wine, distilled spirits) liquor license. Immediately following the hearing councilors will consider a recommendation to the Nebraska Liquor Commission.