Money generated by the half cent LB840 sales tax that Chadron voters approved in 2003 primarily to help fund construction of the new Chadron Community Hospital building has been approved as part of the financing package for a building to house a retail womens’ clothing store.
Acting on the recommendation of the LB840 economic development committee, the Chadron City Council on Monday unanimously approved a $100,000, ten year loan from the LB840 fund to Chadron Development Group LLC for construction of a 5,000 square foot retail facility.
Documents related to the loan show a Green Bay, Wisconsin address for Chadron Development Group. The company’s principals, each with 50 percent ownership, are listed as Richard Johnson and Patrick Flynn.
The total cost of the project is $727,000, Annie Loutzenhizer, LB840 committee spokesperson said Monday. In addition to the city loan, $500,000 of the cost will come from Northwest Nebraska Development Corporation and First National Bank of North Platte, and $127,000 will be the corporation’s equity, she said.
The building, located west of the Taco Johns restaurant at the intersection of highways 385 and 20, will be leased through a corporate leasing company, according to the LB840 committee’s report. The name of the prospective tenant was not released.
A Colorado general contractor has already been selected for the project, the report said. The committee’s only recommendation was that the developer be strongly encouraged to use local contractors for the construction, Loutzenhizer said.
The report said that the development is expected to add about 12 jobs, according to the report.
The pool of money generated by the LB840 tax directed 90 percent the proceeds to economic development, with 75 percent of that to the hospital project and the balance to other qualified economic development efforts. The remaining 10 percent of the tax is to be used for community improvement projects.
A public hearing on the loan proposal drew testimony only from Loutzenhizer, and there was no comment from council members other than Mayor John Chizek, who said it is important to develop more business in town, and that a survey showed “this is one business we need.”
In an unrelated matter, the council approved two items related to improvements at the city airport. The first was an agreement to have the state Department of Aeronautics act as the city’s representative for a project to refresh pavement markings at the airport. The project, like most other airport improvements, will be largely financed by federal funds, with the city paying only a small part of the total cost, said Public Works director Milo Rust. If the project isn’t completed in a timely manner, the city would likely have to pay the entire cost itself, he said.
The second item was approval of a grant application for improving runway lighting at the airport, a project expected to cost about $820,000, with $37,949 of the amount paid by the city. The money has been budgeted for this year, said Rust.
Council member Levi Grant questioned the wisdom of the expenditure if the federal government cuts the Essential Air Service subsidy that keeps commercial air service operating into Chadron, but Rust said the runway lights will still be needed even if the airport is only used for general aviation.
Grant also asked if there are additional airport expenses coming in future years. Many of the projects at the airport are done to comply with Federal Aviation Administration requirements, and are largely paid with federal funds, replied City Manager Sandy Powell. If the EAS subsidy is ended, it isn’t certain that federal funding for the airport projects will continue, she said.
For council member Karin Fischer, the decision was clear. “We get an $800,000 project at a cost to the city of $38,000. That’s a good deal,” she said.
Other business at the meeting included:
•approval on a 4-1 vote of a paving district on Arrow Drive, off Sixth Street, at the request of property owners Larry and Thelma Provance. The project is related to plans for construction of a fire department training center on the as-yet undeveloped street. Grant cast the dissenting vote;
•first reading of an ordinance amendment adopting a Federal Emergency Management Agency flood plain map. The change will allow participation in the national flood insurance program, said city planning officer Janet Johnson;
•a report from Police Chief Tim Lordino that two motorcycles belonging to the department have been sold, and that money from the sale, plus about $15,000 from a drug case seizure will go towards purchase of a new police cruiser and a car for the undercover drug investigator;
•an appeal from resident Joseph Applegarth for the council to find a space with more seating for its meetings, because attendance at the meetings is on a rising trajectory;
•approval to declare as surplus and sell a $699 bullet proof vest that was tailored for police officer Jeanie Milton, who is now employed by the Dawes County Sheriff’s department and would like to buy the vest for use in her new job;
•approval of a form for use by citizens who wish to have an item brought before the council for discussion/action, or to address the council on an item. The form will be made available for submission in print or in electronic format online.
Acting on the recommendation of the LB840 economic development committee, the Chadron City Council on Monday unanimously approved a $100,000, ten year loan from the LB840 fund to Chadron Development Group LLC for construction of a 5,000 square foot retail facility.
Documents related to the loan show a Green Bay, Wisconsin address for Chadron Development Group. The company’s principals, each with 50 percent ownership, are listed as Richard Johnson and Patrick Flynn.
The total cost of the project is $727,000, Annie Loutzenhizer, LB840 committee spokesperson said Monday. In addition to the city loan, $500,000 of the cost will come from Northwest Nebraska Development Corporation and First National Bank of North Platte, and $127,000 will be the corporation’s equity, she said.
The building, located west of the Taco Johns restaurant at the intersection of highways 385 and 20, will be leased through a corporate leasing company, according to the LB840 committee’s report. The name of the prospective tenant was not released.
A Colorado general contractor has already been selected for the project, the report said. The committee’s only recommendation was that the developer be strongly encouraged to use local contractors for the construction, Loutzenhizer said.
The report said that the development is expected to add about 12 jobs, according to the report.
The pool of money generated by the LB840 tax directed 90 percent the proceeds to economic development, with 75 percent of that to the hospital project and the balance to other qualified economic development efforts. The remaining 10 percent of the tax is to be used for community improvement projects.
A public hearing on the loan proposal drew testimony only from Loutzenhizer, and there was no comment from council members other than Mayor John Chizek, who said it is important to develop more business in town, and that a survey showed “this is one business we need.”
In an unrelated matter, the council approved two items related to improvements at the city airport. The first was an agreement to have the state Department of Aeronautics act as the city’s representative for a project to refresh pavement markings at the airport. The project, like most other airport improvements, will be largely financed by federal funds, with the city paying only a small part of the total cost, said Public Works director Milo Rust. If the project isn’t completed in a timely manner, the city would likely have to pay the entire cost itself, he said.
The second item was approval of a grant application for improving runway lighting at the airport, a project expected to cost about $820,000, with $37,949 of the amount paid by the city. The money has been budgeted for this year, said Rust.
Council member Levi Grant questioned the wisdom of the expenditure if the federal government cuts the Essential Air Service subsidy that keeps commercial air service operating into Chadron, but Rust said the runway lights will still be needed even if the airport is only used for general aviation.
Grant also asked if there are additional airport expenses coming in future years. Many of the projects at the airport are done to comply with Federal Aviation Administration requirements, and are largely paid with federal funds, replied City Manager Sandy Powell. If the EAS subsidy is ended, it isn’t certain that federal funding for the airport projects will continue, she said.
For council member Karin Fischer, the decision was clear. “We get an $800,000 project at a cost to the city of $38,000. That’s a good deal,” she said.
Other business at the meeting included:
•approval on a 4-1 vote of a paving district on Arrow Drive, off Sixth Street, at the request of property owners Larry and Thelma Provance. The project is related to plans for construction of a fire department training center on the as-yet undeveloped street. Grant cast the dissenting vote;
•first reading of an ordinance amendment adopting a Federal Emergency Management Agency flood plain map. The change will allow participation in the national flood insurance program, said city planning officer Janet Johnson;
•a report from Police Chief Tim Lordino that two motorcycles belonging to the department have been sold, and that money from the sale, plus about $15,000 from a drug case seizure will go towards purchase of a new police cruiser and a car for the undercover drug investigator;
•an appeal from resident Joseph Applegarth for the council to find a space with more seating for its meetings, because attendance at the meetings is on a rising trajectory;
•approval to declare as surplus and sell a $699 bullet proof vest that was tailored for police officer Jeanie Milton, who is now employed by the Dawes County Sheriff’s department and would like to buy the vest for use in her new job;
•approval of a form for use by citizens who wish to have an item brought before the council for discussion/action, or to address the council on an item. The form will be made available for submission in print or in electronic format online.
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