LINCOLN — State lawmakers gave first-round approval Thursday to a measure that would allow communities, by a public vote, to provide a generous tax benefit for unique retail developments.

There was very little mention, however, of the “Good Life District Economic Development Act” during the debate over Legislative Bill 1317, a combination of several bills advanced from the Revenue Committee.

Instead, most of the discussion focused on one of the aspects of LB 1317 that dealt with installing electric-vehicle charging stations. It has generated a fight between service stations and public power over fair competition and who should be allowed to build the stations.

Amendment Coming Later

State Sen. Brad von Gillern of Omaha, a co-sponsor of the bill, said he will introduce an amendment during second-round debate to resolve some remaining issues surrounding the Good Life Districts.

Last year, the Legislature passed a bill to allow Good Life Districts, permitting half of the state’s sales tax — 2.75% — to be foregone and instead used to finance development costs.

To qualify, a development must cost at least $500 million, attract new-to-market retailers, like Crate & Barrel and IKEA, lure 600,000 visitors a year and generate at least 20% of its sales from out-of-state shoppers.

This year’s bill added a new wrinkle that requires local voter approval to impose a sales tax or occupation tax in the Good Life District. Proceeds from such taxes would be used to pay off construction bonds.

Districts To Be Limited At Five

Already, the state has OK’d two potential districts, one at Nebraska Crossing near Gretna and another at 192nd Street and West Dodge Road in Omaha called Avenue One. Bellevue and Grand Island are also seeking Good Life District designations.

Another bill making its way through the Legislature, introduced by Omaha Sen. Justin Wayne, would limit the state to no more than five such districts.

The idea marks a change in state tax policy by providing state tax incentives for retail development for the first time. In the past, it was thought that retail jobs don’t pay enough to warrant tax breaks and that new retail developments just shift where sales are made and don’t create new economic activity.

But promoters of the Good Life district concept say the unique nature of these developments will create more economic benefits than they will cost in tax incentives.

Nebraska Crossing Has Big Plans

Rod Yates, the developer of the Nebraska Crossing shopping complex, has said that he is planning a $5 billion development spanning 3,000 acres along Interstate 80. It would combine unique retailers and restaurants, a massive youth sports complex, high-rise apartments and high-tech businesses that will lure out-of-state visitors and help retain youth in the state.

Yates has often touted his plans as rivaling The Legends district in Kansas City, the largest tourist attraction in Kansas, which includes a NASCAR track, pro soccer stadium, and 100 shops, including a massive Nebraska Furniture Mart.

Yates has also said he wants to attract a National Hockey League franchise to Nebraska Crossing, though the Omaha World-Herald recently reported that the league is not seeking new franchises.

Nebraska volleyball coach John Cook joined Yates at a recent legislative hearing touting the possibility of relocating USA Volleyball’s Olympic training facility from Anaheim, California, to Gretna.

But repeated calls by the Examiner to USA Volleyball in hopes of confirming their interest have not been returned.

During a public hearing on the Good Life District concept, rival developers complained that the bill gave Yates too much power, which von Gillern said has been resolved in the new version of LB 1317.

Several Other Bills Merged

Among the other bills merged into LB 1317 were measures to:

• Correct a drafting error in a bill passed last year to exempt Social Security benefits from taxes. The error resulted in $12 million in benefits being paid out mistakenly to those on a federal pension.
• Provide property tax exemptions for nursing and assisted living facilities, as well as student housing owned by a charitable organization.
• Provide penalties if a nonprofit economic development corporations doesn’t develop properties it owns in high-poverty areas.
• Expand the recipients of benefits under the First Responder and Recruitment Retention Act.
• Promote establishment of real-time nitrate monitoring systems.
• Expand the tax credits available via the state’s ImagiNE Act for manufacturers of agricultural products to include equipment used to produce fertilizer.

This story was published by Nebraska Examiner, an editorially independent newsroom providing a hard-hitting, daily flow of news. Read the original article: https://nebraskaexaminer.com/briefs/bill-advanced-to-finance-development...