Latest news with #GoodLifeTransformationalProjectsAct
Yahoo
21-03-2025
- Business
- Yahoo
Bellevue water park start marks first new major tourist build in a Nebraska ‘good life' district
Dirt is moving at the site of future Bellevue Bay Indoor Water Park at Highways 75 and 34. The groundbreaking event Thursday marks the first new major tourism construction project at a Nebraska good life district, officials say. (Cindy Gonzalez/Nebraska Examiner) BELLEVUE, Nebraska — Construction officially kicked off Thursday on what Bellevue called the 'crown jewel' of its state-approved good life district, despite uncertainty still swirling around a proposed revamp of the law governing such districts. Dozens of people, including federal and state lawmakers, attended the groundbreaking event for the Bellevue Bay Indoor Water Park, billed as the fourth-largest tourist attraction of its kind in the country. With dirt already moving, officials say it becomes the first major new construction venture to launch at any of the state's good life districts. Currently, the Nebraska Department of Economic Development has approved four districts as a result of the Good Life Transformational Projects Act that was passed in 2023, updated in 2024 and again is poised for legislative revisions. Mayor Rusty Hike told the gathered group that entertainment, retail and other development slated to rise at the 550-acre district northwest of U.S. Highways 75 and 34 should ease the local property tax burden and draw more tourism-related revenue to the city and state. 'This area will be the economic engine that does just that,' he said. 'We need to bring in more industrial type properties, high-paying jobs, retail, community services and entertainment dollars that will vastly increase our tax base.' Made of glass, height of a seven-story building Spans nearly 60,000 square feet 415,000 gallons of water 3,386 feet of slides, highest reaching 60 feet Grotto area with adult beverages; spaces for parties Bellevue Bay water park, expected to open by 2027, features a retractable roof, lazy river, slides, a surf machine, rock-climbing and private cabanas. It is one piece of the broader job-creating entertainment-centric site also to include hotels, retailers and restaurants that Hike said is projected to bring more than $1 billion in additional value to the city's tax rolls. The city-owned project, initially financed with $60 million in bonds, is to be paid off partly with revenue generated from the water park. Also helping is the incentive state lawmakers approved as part of the Good Life law. Under the law, the state sales tax imposed within good life districts is to be halved, from 5.5% to 2.75%. Bellevue officials say the city, in turn, plan to levy an occupation tax on businesses in the district to essentially recoup that eliminated sales tax. 'Visitors will come from distances within and greater than 300 miles of this location,' said Hike. In an interview, Hike acknowledged frustration with a proposal under consideration in the Legislature to revise and add to the Good Life law that was the foundation for Bellevue's project. He voiced some of his objections to Legislative Bill 707 during a public hearing Wednesday at the Capitol. Bellevue balks at proposed fixes to 'Good Life' law, though hearing draws mostly support Bellevue officials say they have a meeting next week with State Sen. Brad von Gillern of the Elkhorn area, who introduced the bill, now made a priority by Speaker John Arch of La Vista. Among other speakers at Thursday's event were State Sen. Victor Rountree of Bellevue, U.S. Rep. Mike Flood, R-Neb., K.C. Belitz, director of Nebraska's Department of Economic Development and Bellevue City Administrator Jim Ristow. Rountree, newly elected to the Legislature, talked about the growth of Nebraska's oldest city in one of its fastest-growing counties. 'I arrived here at Offutt Air Force Base back in March of 2008 … and over the course of that time I've seen tremendous growth here in the area.' Belitz said tourism lodging tax dollars to Nebraska hit a new record last year, and he expects the district to be a magnet that pulls many of those visitors. Said Belitz: 'This will change the face of Bellevue for seven generations.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
20-03-2025
- Business
- Yahoo
Bellevue balks at proposed fixes to ‘Good Life' law, though hearing draws mostly support
The City of Bellevue's planned indoor water park is the centerpiece of the state-approved good life district in that Sarpy County city. Revisions to the Good Life law were the topic of a public hearing in Lincoln on Wednesday. (Courtesy of City of Bellevue) LINCOLN — On the eve of a ground-breaking event for Bellevue's state-approved 'good life district,' Nebraska lawmakers considered proposed legislation that Bellevue contends could throw its mega tourism project into turmoil. Indeed, officials of the state's third-largest city believe that parts of Legislative Bill 707 and a related amendment — which are intended to update earlier versions of Nebraska's Good Life laws — appear aimed at 'harming' Bellevue's planned indoor water park. They cite the potential annual loss of more than $1 million in revenue the city had projected based on the previous law. And with Bellevue already having invested $40 million into its district, a city representative told the Nebraska Examiner that a lawsuit against the state may be on the horizon. 'It feels like they're trying to frame the discussion around the Bellevue district attempting some kind of shenanigans,' Harrison Johnson, Bellevue's director of community and economic development, said in an interview. 'We think the way we're approaching this is the most responsible and transparent way to deliver value for taxpayers.' Bellevue's opposition to the proposed legislation — introduced by State Sen. Brad von Gillern of the Elkhorn area and named a priority bill of Speaker John Arch of La Vista — is the latest uproar in an ongoing saga featuring the state's Good Life Transformational Projects Act, enacted in 2023 and an update passed in 2024. Mayor Rusty Hike of Bellevue was the lone opponent testifying at a public hearing Wednesday before the Legislature's Revenue Committee. Bellevue is one of four good life districts approved by the Nebraska Department of Economic Development. Five are allowed under the law. A representative of the City of Grand Island, where another good life district is underway, testified in a neutral capacity and briefly updated the committee on the local 875-acre project site led by a private developer, focused on sports tourism and projected to lure 300,000 out-of-state visitors a year. Grand Island City Administrator Laura McAloon did voice concern, however, that further delay and 'lack of certainty' about the law could cause problems firming up a financial plan. Also testifying was Nebraska Attorney General Mike Hilgers, who said he had no position on the proposed legislation but became involved because of legal questions stemming from the DED-approved good life district in Gretna and original applicant Rod Yates' request to withdraw. Hilgers helped bring bickering parties to the table and believes he found common ground and an 'agreed upon framework' for a few key points. 'They will unlock value in Gretna, but I think they are valuable for all the projects,' he said. One point involves control over the property within a district. In Gretna, Yates wanted to develop the entire 2,000 acres, even though he owned just a slice. Gretna officials balked at Yates' demands, which they said could have led to the use of eminent domain. A proposed solution specifies that other property owners could develop their own land. Said von Gillern: 'There's language coming … to ensure no one developer can negatively stifle another development opportunity. Again, furthering development potential and increasing sales tax revenue for the state.' Another point would require the city, state and developer to agree to a memorandum of understanding covering various potential conflicts and ensuring 'transparency' in protecting taxpayers, said Hilgers. Von Gillern told committee members that it became obvious as the previous Good Life legislation played out that 'additional guardrails' were needed to clarify confusion. Several elements created concern, said von Gillern, including how over $2.2 million in state sales tax revenue was lost as progress on the Gretna district was delayed. The law, as originally written, created a major incentive: State sales taxes imposed within good life districts were to be cut in half, from 5.5% to 2.75%. The idea was to recapture the difference to help finance unique entertainment and shopping districts that over time would draw more tourists and rake in more money for the state. But to collect the difference and direct it to district development efforts, the approval of local voters is required to trigger the host city to create an economic development program for the new district. An average of $300,000 a month in state sales tax revenue was forfeited in Gretna, the state's biggest and most high-profile good life district. A successful January vote has now allowed Gretna to start, this month, collecting that revenue for future use in the district. Von Gillern said his bill proposes a resolution safeguarding against that same situation. Among other other changes: Specifies that eminent domain will not be used to force the sale of land in a district. Firms up the definition of new-to-market retail and transformational projects, which are required of districts. Some language changes are still being hammered out, he said, including details involved in terminating a district's special designation that opens the door to the incentive. While the applicant for Omaha's approved good life district did not testify, applicant Curt Hofer of Avenue One in west Omaha submitted a written objection to von Gillern's proposal. State Sen. Eliot Bostar of Lincoln, a committee member, asked von Gillern about Omaha, noting that Hofer said the proposed changes would 'destroy' his project. In response, von Gillern said he believed Hofer's complaint stems from the developer's request to expand the 200-acre retail and entertainment district. A proposed change in LB 707 says the state 'may,' not 'shall,' grant a request by an applicant for expansion of boundaries. Hofer was not immediately available for comment. Two proponents representing Kearney questioned why state officials had not yet responded to the application for a Kearney good life district featuring a $225 million retail, restaurant and entertainment project envisioned to bring more than 6,500 jobs. Applicants from Kearney and Papillion have requested to be the fifth and final district allowed under the law. Bellevue was the fourth to be approved (last July) by DED. The anchor of its estimated $1.36 billion site — an indoor water park believed to be the fourth largest of its kind in the country — would have a retractable roof and resort-style recreation area. A mix of commercial venues at the site includes a theater and golf sports complex. Bellevue stood out among the good life districts because the applicant was the city and not a private developer. Johnson has said that since the city wouldn't be remitting any of the eliminated state sales tax to a private developer, there was no need for a special election. Occupation taxes assessed in the district essentially would recoup the eliminated state sales tax, he said, and help the city pay for infrastructure and construction of amenities on the site. Bellevue officials took issue with a handful of provisions in the von Gillern proposal. One aimed at Bellevue, Johnson said, prohibits an applicant, if that applicant is a political subdivision, from being exempt from sales tax on building material purchases for a new business that will offer taxable sales in the district. Another, he said, allows the DED to terminate a district if the host city has not created an economic development program within three years of being established. Such a program would follow an election, said Johnson, and Bellevue's plan did not call for an election. Johnson said Bellevue sees von Gillern's proposed changes in LB 707 and Amendment 615 as being 'extraordinarily hostile' to Bellevue's plans and 'punishing its taxpayers with what amounts to significant fines for using a law the Legislature passed in 2023.' Hike told the committee the amendment would cap an occupation tax in a way that would 'endanger the tax receipts the city would require and has projected to fund the project.' Von Gillern did not hold back on his concern about Bellevue. 'It was never intended for a public entity to own or operate a good life district,' he said. 'A tax exempt would not collect sales tax on materials used in construction and under some circumstances not collect sales tax. Again, clearly not the intention of the bill.' Von Gillern said he did his own calculations on tax exemptions related to building materials. 'I don't think the state should be subsidizing the construction of a pool complex that is being built with the complete intent of increasing tax revenue for the state of Nebraska. It's working in the exact opposite direction.' Von Gillern said he was a fan of good life districts before, and remains so, if changes are made to existing law. He said he believes both his and Hilgers' recommendations are applicable to all districts. The public hearing was combined with Bellevue State Sen. Rick Holdcroft's LB 510, which also related to good life districts. Holdcroft said he would defer to von Gillern's bill and amendment as the preferred course. Holdcroft, when he introduced LB 510 in January called it a 'placeholder' to be defined later, but he said it proposed to look out for the needs of Gretna taxpayers and a prohibition of eminent domain was a key element. Eight people submitted written objections to LB 707 and no one wrote in support. The Revenue Committee took no action, though several committee members commented that the changes moved in the right direction. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
