Council decides on LB840 grants, industrial park

Sidney is taking a new direction in issuing LB840 grants and selling industrial park lots following a special meeting of the City Council Monday with Ed Sadler, city manager, and Melissa Norgard, economic development director.

LB840 grants will be offered to prospective businesses within a range of 20 to 40 percent of overall payroll, rather than based on individual pay rates.

“It makes more sense to us to do it based on the entire payroll of the company that’s moving here,” Norgard said. “Not everyone is going to make the same amount of money.”

At 20 percent, for example, a company bringing in an annual payroll of $125,000 in new jobs would receive $25,000 from the city in LB840 funds.

“We did put some minimums on it,” Norgard said. “The jobs have to pay at least $25,000 a year and you have to bring at least five new jobs to even qualify. If you’re going to just bring one or two jobs at $10 per hour, there’s probably other things we could chase after that would be more lucrative to the economy here.”

Mayor Joe Arterburn agreed with the need to have a specific range.

“I think it’s a good idea to set that number, whether it’s 20 percent or whatever, so prospective employers coming in will know what to expect,” he said. “They’ll come in and we won’t have to waffle.”

The funds would be used to attract both established companies and start-ups.

“A job from a start-up is just as good as an existing company. You’ve just got more risk,” Sadler said. “So you structure your deal to mitigate your risk.”

Industrial park lots will be sold at $25,000 per acre for smaller lots and $20,000 per acre for its large lot.

The prices are only slightly greater than the city’s total investment in the land, and can be offset based on the number of jobs the prospective business will bring to Sidney.

“The economics here have changed since you first started on that project,” Sadler said. “There was some high priced land values around here. Not so much as late.”

One lot has already been sold, to David Evertson of Longhorn Investments, for use as a veterinary hospital with outdoor pens, though it has not been developed.

The lots have electricity and water, streets, and rail access.

Offering the lots at the lowest possible cost will help to attract interest from more companies.

“You’re in this to get jobs,” Sadler said. “Not to make money.”

Purchase requests will not be considered unless they provide Sidney with a substantial number of jobs. Two acres, for example, should come with 10 jobs “or it’s not worth selling.”

“This isn’t about the warehouse that brings in five jobs,” Sadler said. “We have criteria.”

Sidney’s industrial park has more than 80 acres available, in one large lot and several smaller lots.