Council OKs Prairie Gold Homes lease

McCOOK, Neb. -- The City of McCook approved a one-year lease with Prairie Gold Homes Monday evening, setting the stage for the non-profit to expand Department of Corrections inmate training options available locally.

The lease agreement provides a rent-free facility for the non-profit at the now-vacant Public Safety Center on West B Street and is anticipated to strengthen the Work Ethic Camp, as well as assist McCook in addressing a local housing shortage.

Prairie Gold Homes constructs on-site and modular homes utilizing a select group of inmates and partners in the construction and housing industry. Representatives from the nonprofit previously touted their ability to provide quality job training options to inmates and affordable housing to rural Nebraska, in addition to four full-time jobs in McCook.

The inmates enrolled are typically near the end of their sentence and the skills they learn ease their transition back into society, according to representatives from the non-profit. The program touted a zero recidivism rate as of January and indicated the Public Safety Center building was an ideal location for a Southwest Nebraska location.

"It could be a really good partnership between the City of McCook and Prairie Gold Homes. There are two reasons why I think that," said City Manager Nate Schneider during Monday's City Council meeting. Schneider said McCook has struggled to stimulate construction of residential homes and Prairie Gold Homes would compliment efforts to address the housing shortage, as well as strengthen the case for expansion of the Work Ethic Camp.

City leaders traveled to Lincoln in recent months to lobby for expansion of the Work Ethic Camp as part of the effort to address the state's Department of Corrections overcrowding issues.

"Whether they are going to build or not, I think it makes it that much more attractive to consider expanding the Work Ethic Camp site," said Schneider.

The lease agreement commits the non-profit to cover any expenses related to maintenance or renovations at the building, as well as any property tax that may be required. Schneider indicated the initial interpretation of the law, pertaining to the scenario of a non-profit leasing a city owned building, pointed to property taxes not being owed. He said requesting an exemption from the county assessor was also an option discovered during the review.

Wayne Michaelis of McCook addressed City Council and said he read a recent Omaha news report indicating Prairie Gold Homes had received a near $1 million grant from the Department of Corrections, to be used for home construction training. Michaelis said he thought the non-profit could afford $1,000 a month and should pay the city rent for the building.

"That's what that grant is for, is for training, all the expenses that go with it," said Michaelis, adding "I think they should pay the city, I just don't think we should give our property away."

Councilors thanked Michaelis for his comments before unanimously approving the lease agreement.

Other items on Monday's consent and regular agenda:

* Drawings and bid specifications for renovations of a heat exchanger, digester gas piping and replacement of the motor control center at the Waste Water Treatment Plant were approved. Utilities Director Jesse Dutcher recapped the project, which he said replaces and refurbishes equipment, much of which, has been in place since 1978. The project will be funded via funds already budgeted in the 2014-15 Sewer Enterprises Fund Capital Outlay Budget.

* An amendment to a lease agreement between the city and Verizon Wireless, pertaining to equipment on the west water tower, was approved. The amendment authorizes installation of additional equipment and will increase the monthly lease Verizon pays the city by $250, for a monthly total of $2,450. The change increases annual revenue to the city by $3,000.

* Jesse Stevens was approved to replace Lonnie Anderson on the Planning Commission.