City sales tax increase, TIF request, up for approval by council

McCOOK, Neb.— The McCook City Council will be asked Monday night to increase the city sales tax by .5%, from 1.5% to 2%, following the Nov. 8 election when the majority of city voters approved the recreational bond ballot question.

The council will also be asked to approve a project at East Fourth and B for tax increment financing and ordinances concerning the creation and use of a land bank, at the regular meeting Monday, 5:30 p.m., at city council chambers at the Municipal Building.

At the Nov. 8 election, voters approved to increase local city sales by .5% for a recreational bond by 61.30% to 38.70%, or 1,524 in favor of and 962 against. The recreation bond will be used to fund a swimming pool and ballpark facilities. The new tax could start by April 1, 2023, if the Nebraska Department of Revenue receives from the city the required documents by Dec. 2, 2022. The effective date of the tax has to be at least 120 days after the Nebraska Dept. of Revenue receives the documents.

Because of that, the council will be asked if it wants to suspend the three readings and instead approve the ordinance increasing the city sales tax on first reading. When an ordinance is changed or amended, it must go three separate readings, unless the majority of the council votes to suspend the readings.

The meeting Monday night will begin with a public hearing regarding a Redevelopment Plan for the Engineering International Redevelopment Project at 410 East B. The McCook Planning Commission has already approved the plan.

The redevelopment plan addresses how the project complies with the City of McCook’s Comprehensive Plan and the State of Nebraska’s Community Development Law. Approval of the plan is required for tax increment financing (TIF) assistance.

The council, acting as the Community Development Agency (CDA), will be asked to approve several items and recommend approval of those items to the council for TIF, including a redevelopment plan, cost benefit analysis, the use of tax increment financing and an agreement between the city and Restored Homes LLC, the developer of the project.

The developer has proposed renovating a 6,000 square foot building at the location, formerly an automotive repair shop built in 1952, to create professional office and retail space.

Upon completion, the redeveloper plans to lease space in the building to Engineering International, an architecture design and engineering firm owned by Jeff Tidyman in McCook and Kitchen Solvers, a kitchen remodeling company, owned by Jeff and Patty Tidyman.

According to the redevelopment plan, the current valuation of the property is $109,600. After completion of project, estimated valuation would be $625,000, with the difference in valuation at $515,400. With a tax levy of 1.929606, annual projected tax shift is $9,945 and $104,000 of public improvements can be financed with the proceeds of TIF. These funds are the eligible amounts available to pay back the TIF note over 15 years.

From the regular agenda, the council will be asked to approve an ordinance that allows the city council and city staff to enter into an interlocal agreement with other municipalities to create a land bank and have the authority to use the land bank process to address nuisance properties. Other towns interested in participating are Cambridge, Holbrook, Curtis and Beaver City.

Annual membership fees are based on population, so if the council decides at $4 per person, the cost to the City of McCook would be $29,424 per year, using 7,356 as the population. The council will be asked if it wants to suspend the three readings and approve this on first reading.

The council will also be asked to approve a resolution that ratifies the Interlocal Agreement approving the Southwest Nebraska Land Bank. This would give the city authority to enter into an interlocal agreement forming a land bank and establishes the basic structure of the land bank, including how it’s funded and how projects are approved and completed.

Consent agenda items for Monday, that can all be approved in one motion, are:

Receive an update on the installation of four monument-style welcoming signs at the entrances coming into McCook.

Approve an Abandonment of Utility Line Agreement between the City of McCook and Siegfried Holdings, LLC, for property located in Block 4, Armory Addition to the City of McCook.

Approve Resolution No. 2022-18 amending and updating the City of McCook's Employee Handbook.

Authorize City Manager Nathan A, Schneider to sign a Memorandum of Understanding between the City of McCook and the McCook Professional Firefighters Association, Local 2100, allowing for two additional holidays (Veterans Day and one floating holiday) to be added, per the Collective Bargaining Agreement.

Approve the application for a Special Designated Liquor License submitted by Uppa Crik Hops LLC of Parks, Neb., for a wedding reception at the McCook Municipal Auditorium, 302 West 5th Street, on Dec. 31, 2022 from 4 p.m. to 12 a.m.