The Wording

CITY OF LA VISTA, NEBRASKA
ECONOMIC DEVELOPMENT PROGRAM
PROPOSAL

Shall the City of La Vista establish an Economic Development Program as described here by appropriating annually from local sources of revenue a maximum of $4,000,000 for a period of 25 years?

_________ YES

_________ NO

Terms, Conditions and Goals

The Mayor and City Council of the City of La Vista propose to continue providing for an Economic Development Program in the City for an additional 25 years after the September 30, 2029 expiration date of the City’s current Program. Terms, conditions and goals of the proposed Economic Development Program include the following:

a. Length of time the program will be in existence. The length of time the Economic Development Program will be in existence is 25 years beginning on October 1, 2029 and ending on September 30, 2054.

b. The years that funds from local sources of revenue are to be collected. Collection of the funds from local sources of revenue for the Economic Development Program shall be established each year in the municipal budget for a 25-year period beginning October 1, 2029 and ending September 30, 2054.

c. Sources from which funds are to be collected. The sources from which funds are to be collected will be a combination of funds from various local sources of revenue, limited to funds derived from the City's existing 1% local option sales tax or any other general tax levied by the City or generated from municipally owned utilities or grants, donations, or state and federal funds received by the City, subject to any restrictions of the grantor, donor, or state or federal law; provided, however, property tax shall not be a source of funds or collected, appropriated or used for purposes of the Economic Development Program.

d. Total amount to be collected for the program from local sources of revenue. The total amount to be collected from local sources of revenue for the Economic Development Program will not over the 25 years of the Program exceed $100 million. The Mayor and City Council will determine the portion of total collections of local sources of revenue that actually will be allocated for the Economic Development Program each fiscal year as part of the City’s budgeting process.

e. Proposal to issue bonds to provide funds to carry out the Economic Development Program. The City of La Vista proposes to have authority to issue bonds pursuant to the Local Option Municipal Economic Development Act to provide funds to carry out the Economic Development Program.

f. Additional funds to be sought from other non-city sources. Additional funds from other non-city sources will be sought beyond those derived from local sources of revenue.

g. Goals of the Economic Development Program. Goals of the Economic Development Program are to increase the overall community tax valuation within the La Vista area, attract new investment capital to the community, create jobs and generate employment opportunities, develop tourism opportunities, broaden the tax base, support or capitalize on La Vista’s existing or future commercial developments, rehabilitate residential neighborhoods, expand industrial development, and increase economic stability, diversification and vitality for La Vista, Nebraska and the surrounding area.

Our Explanation

Many years ago (1999), the Nebraska State Legislature passed LB840 that invented the Economic Development Program – or more completely stated:

Local Option Municipal Economic Development Act (LB840)  

In 2003, La Vista voters approved starting that Economic Development Plan (EDP) to last for 25 years.  The current plan expires in 2029.   In all that time only 3 projects have actually been approved by the Citizen Advisory Review Committee and then passed on to the City Council to approve.  The committee consists of mayor appointees approved by the City Council.

Simplistically, the EDP allows cities to use local funds to help establish businesses.  They are allowed to gather $4 million a year into the EDP, none of which can come from property tax.  Then they can use that money to provide grants and loans.  For example, $7.6 million in grants and loans went to the Embassy Suites.  That money was paid back with interest and has resulted in $40 million of income to the city. 

The City website has lots more information:  https://www.cityoflavista.org/2426/Economic-Development-Program-EDP-Electio

Those who support the idea point to the major success the entire Southport area has been.  Setting up the hotel/conference center helped attract other businesses as well – Cabella’s and Costco, especially, but many small businesses as well.  That has created significant sales tax income.  It has allowed the city to provide better services like for the library and parks and recreation.

Those who oppose the idea didn’t agree with LB840 in the first place with what looks like the mixing of public and private monies.

Voting “yes” will keep the system as is, allowing for $4 million to be designated each year all the way to 2054!

Voting “no” will mean the system will cease on September 30, 2029.