New ag business, TIF project approved

From left, Next Generation Inc. President Todd Reed and McCook Economic Development Executive Director Kirk Dixon discuss a redevelopment plan to invest approximately $9 million in a new agricultural chemical handling and distribution facility in McCook. (Bruce Baker/McCook Gazette)

McCOOK, Neb. -- The McCook Industrial Park is set to welcome its third tenant, and second addition in two years, after more than a decade with one tenant occupying the 20-acre development. A redevelopment plan from Next Generation Inc. was unanimously approved by the McCook City Council Monday evening advancing the $9 million project.

When asked why the company chose McCook, Next Generation President Todd Reed was quick to praise McCook Economic Development Director Kirk Dixon.

"Kirk did a really good job representing your town," said Reed, pointing out Dixon's knowledge and ability to work under pressure. Representatives for the company came to town with a lot of questions and a limited amount of time to find the answers, a situation Dixon and other community leaders thrived in, according to Reed.

McCook proved to Reed it was a community capable of making decisions in a timely manner, an environment he indicated was ideal for new business. "We shouldn't be the only one [new business], to come to your town with offers," he predicted.

Dixon was quick to share the credit and said the support he receives from other community leaders was a big part of any success he experiences. "McCook makes it easy for me to do my job," he said, adding city leaders are quick to respond when new business representatives visit, often on multiple occasions. "We have a great team," said Dixon.

Dixon said the McCook location will represent the first location for Next Generation Inc. west of the Mississippi. Expansion in later years has historically followed a new location and Dixon said he felt really fortunate the company chose McCook.

Reed said the ag company was best suited for smaller communities and the McCook location would service neighbors up to 200 to 300 miles away. He also said Next Generation strives to make each community it is a part of proud to have them in town.

The approved redevelopment plan for Next Generation Inc. plans construction of an agricultural chemical handling and distribution facility at the industrial park, directly to the east of Valmont. The new business will be located just west of Booe Machinery and Salvage, which opened in 2014. Anchor tenant Silverstone Inc. of Omaha was the lone tenant before that.

City Manager Nate Schneider recapped the cost-benefit analysis for the redevelopment plan, prior to it receiving City Council approval. The analysis indicates the project has an overall cost of $9,061,907 and will receive up to $720,000 in financial assistance from Tax Increment Financing.

Schneider reiterated previous comments that the redevelopment plan was in accordance with state TIF laws and no city funds would go towards the project. He said local taxing entities would continue to receive property taxes they received prior to the development occurring and the development would not occur without the use of TIF assistance.

TIF allows the city to redirect property taxes paid in excess of the undeveloped value of a property, for a period of up to 15 years, which will be used to fund the $720,000 in TIF assistance approved for the Next Generation project.

Schneider said the TIF revenue is projected at $79,500 annually, assuming the property is valued at $4.5 million after construction is completed. The project includes construction of a rail-served, agricultural chemical handling and distribution facility.