Council grants new hotel use of city property for parking

McCOOK, Neb. — Two other business owners objected to the new Holiday Inn being allowed to use three or four feet of city-owned West H Street right of way for parking, but the City Council apparently agreed with City Manager Nate Schneider’s argument that it’s important to encourage investment that will pay off in property tax income in the long run.

The council voted 5-0 to grant the new hotel license to use the strip of property it said it needs for angle parking about 84 cars at its West H and North U.S. 83 location.

The $8 million project is being built with more than million in tax increment financing as well as about $6.5 million in private investment.

Local tax entities will continue to collect taxes on the current value of the property, approximately $60,000, Schneider said, but after the TIF financing is paid off, after a maximum of 15 years, the hotel will be taxed on an assessed value of $6.5-7 million.

More property value is needed to offset other losses and meet fixed costs such as streets, utilities and services.

‘If you’re not growing, you’re probably going to die,” Schneider said, referring to a city’s future.

Ron Tompkins, who returned to his hometown from California and purchased the Cedar Inn, said he has grown to be “disgusted” with the situation in the 18 months since his return.

“I feel we should not be using city parking for private use.”

Janice Sides of T-J’s Family Fun Center said she objected to the new motels receiving TIF funding and it “added insult to injury” to see a private business using public property while others pay for it.

Schneider said “grants of license” were routinely granted to a number of other entities such as churches, businesses, the hospital, and even for the new city building itself.

Councilman Bruce McDowell, who originally voted against the TIF project for the Holiday Inn, voted in favor of the proposal, saying he “can’t see letting three or four feet of property get in the way of the project.”

“I don’t want to be the city that says (to developers) ‘we don’t want to work with you,’” he said.

The grant of license will only be used for parking and will not affect dimensions of West H street in any way, Schneider said.

“The property tax situation is not pretty,” the city manager said. “We want to make sure McCook is still here 15, 50 or 100 years from now,” he said.

The city granted about $10 million in new construction recently, he said, which is preferable to annexing new property.

In other business:

* Dan Stramel, commander of local American Legion Post 203, asked during citizen comments that the council consider letting the local post use the former council chambers in Memorial Auditorium for meetings. The post is solvent, he said but can use help in continuing its activities.

* While concerns were raised about possible cockroaches or other vermin coming in with the cardboard, the Thinkery of Southwest Nebraska was given permission to store cardboard in the former city offices in advance of a Global Cardboard Challenge child creativity project in October. Community betterment funds will be used to pay fees for the actual event Oct. 13-14.

Utilities Director Kyle Potthoff helped sway the council be noting that the city’s solid waste department would end up with the cardboard anyway, so the Thinkery was basically acting as volunteers to remove materials from the waste stream.

* Terry Shipshock of the Community Hospital Health Foundation received to display a ‘Remembering Our Fallen” memorial display in the Heritage Senior Center. Community Hospital is the local sponsor for the visit. Community betterment fees will be used to offset rental fees for extra time the center is open. It will be on display Aug. 14-19.

* While Councilwoman Janet Hepp said she had received a couple of complaints about truckers using loud engine braking “Jake Brakes” coming into town, Councilman Jerry Calvin said he found Fourth of July fireworks more objectionable and felt the city police department had ‘bigger fish to fry on the grill.”

City Attorney Nate Mustion said it would be hard to prosecute in court, and City Manager Nate Schneider noted there is no state law concerning use of the devices — it’s up to individual cities.

While signs might discourage truckers from using Jake brakes, there are usually only about three police officers on duty at any time, leaving effective enforcement doubtful.

The issue will probably be brought up again at a future council meeting.

* The council approved on first reading a city ordinance to allow bars to serve liquor until 2 a.m. The issue will come up again at the council’s Aug. 21 meeting. Police Chief Ike Brown said, if the ordinance is passed, his department will keep track of any problems and report back to the council.

* The public is invited to attend a budget workshop Monday about 6:30 p.m., following a planning commission meeting at 5:15 p.m.

* Councillors Bruce McDowell and Jerry Calvin will serve on a committee to make a recommendation concerning replacement of the city’s E911 system, which is nearing the end of its useful life.

The council went into three separate executive sessions; one to discuss a confidential medical claim, another for collective bargaining strategy with the Fraternal Order of Police, and another for the annual evaluation of the city manager.

The sessions lasted until about 9:30 p.m., but no action was taken following the closed sessions.