TIF funding approved for new sports bar

McCOOK, Nebraska -- Construction of a new local sports bar, touting live music and an outdoor patio area off of U.S. Highway 83, took a step forward Monday evening when the McCook City Council approved the use of Tax Increment Financing for the project.

The new business will be located at McCook's northern gateway, on property just west of Calvary Cemetery. Developers plan to construct a 3212 sq. ft. addition to the Four County Feed building already located at the site, as well as establish a 1681 sq. ft. patio area and parking for approximately 70 vehicles.

The council unanimously approved the project's redevelopment plan and "related matters," during their regularly scheduled meeting Monday evening. The approval authorizes the city to issue a bond in the amount of $100,000 against any increase in property tax resulting from redevelopment of the project. The additional property tax will be captured and applied to the debt for a period of 15 years.

McCook Economic Development Director Rex Nelson offered additional details Tuesday, pertaining to how the TIF process worked. Nelson said the city was not providing funds for the project and the bond issuance was part of the developer being sold the rights to future incremental property taxes and the ability to use that revenue stream to borrow funds for the project.

"The bond is a loan of sorts, but the developer has to give them a check for the loan amount to buy the bond. Then the city grants that amount back, so it is a zero sum transaction. What the developer gets with the bond is the stream of tax payments with which to borrow at a bank to do the project," said Nelson.

Adam Siegfried, representing the developer ATR LLC, spoke on behalf of the project Monday evening. Siegfried said construction was delayed by a fire marshal's inspection and although he would like to be open by October, a November or December opening was probably more realistic.

Nelson said Monday the project was a very appropriate use of TIF funds and indicated it would stimulate an approximate $500,000 investment by ATR LLC in the currently underdeveloped property.

The principal amount of indebtedness for the project is estimated at $100,000, according to city documents, with approximately $80,500 of the initial debt stemming from running a sewer line to the property.

Also during Monday's meeting, during a public hearing to discuss a special exception for construction of a commercial building in an agricultural district, local property owner Alan Bishop asked council members to reconsider their previous decision not to allow a commercial truck wash on a nearby property. The commercial building being considered for construction was most likely going to be leased to an oil field supply company, according to the property owner Richard Cappel. Bishop said a similar oil field supply business was already operating in the area and they washed their trucks on-site. He said chemicals from the oil field were likely more harmful than those from the ag industry, which the commercial truck wash originally intended to focus their business on.

Council members offered no response and subsequently approved the special exception for Cappel's property.

Cappel intends to construct a 13,000 sq. ft. steel building on the property, located south of Drive 716, neighboring Pioneer Seed and Stack and Store Storage.

The council suspended the three reading rule and unanimously approved the salary and compensation package for new city manager Nate Schneider without comment. Schneider's starting annual wage will be $86,000 plus other benefits, slightly more than the $85,000 former city manager Jeff Hancock started at in 2011. Hancock had 30 years experience as a city manager, city administrator or assistant city manager and Schneider brings with him 12 years experience as a practicing attorney.

Schneider's employment agreement also includes an additional $5,000 annual reimbursement to utilize his personal vehicle for city business, as well as covering the expense of a city provided smart phone. His retirement benefit was set at six percent of his annual wage.

Other items on the consent and regular agenda:

* Jason Michaelis was approved to rezone lots 28 thru 32 of the South McCook addition, which border South Street directly across the street from Parker Hannifin. Michaelis intends to purchase the lots from Donna Butler and construct an approximate 40 ft. by 60 ft. building/shop.

* A proclamation designating May 18-24, 2014, as Emergency Medical Services Week was approved.

"We are blessed in this community to have such great services available," said Mayor Dennis Berry.

* Club Paradise was approved for an addition to their liquor license to allow for an outdoor beer garden, approximately 20 ft. by 34 ft. in size.

* Council authorized the Young Professionals Group to utilize city streets for their "Color Me Crazy" fun run on Saturday, July 19, 2014, from 6:45 a.m. to noon.

* Ann Brown was also approved to use city streets and Norris Park from 7 a.m. to 9:30 p.m. on June 21, 2014, for a 5k road race, cake walk, dunk tank and musical entertainment, as part of the Longest Day Event for the Alzheimer's Association.

* CenturyLink was granted permission to occupy city right-of-way to install an underground phone cable to provide service to Booe Machinery and Salvage, located in the Industrial Park east of Valmont.

* A change order in the amount of $13,378 to the McCook Public Library elevator and vestibule addition was approved.

Other items on Monday's consent and regular agenda:

* Authorization to drill two additional groundwater monitoring wells on city right-of-way, as part of a monitoring effort related to an underground petroleum contamination near the McCook Taco John's restaurant, was granted to Panhandle Geotechnical and Environmental, Inc. Panhandle has already installed more than 30 monitoring wells, at the direction of the Nebraska Department of Environmental Quality. NDEQ requested an additional five monitoring wells be installed last month. City staff reported in December there was little risk to city drinking water from the petroleum contamination and indicated the nearest city well was one and a half miles away.

* A resolution approving a service agreement between the city and W Design Associates for engineering services related to a street improvement project on East Seventh/Seminole, East H Street to Park Avenue, was approved.

* Agreements between the city and the Nebraska Department of Health and Human Services, pertaining to providing home delivered meals, as well as exempting public transportation and local medical transportation, were approved. The annual contract with West Central Area Agency on Aging pertaining to operational responsibilities for the McCook Heritage Senior Center was also approved.