City Council Discusses New Business Assistance Program

The Sidney City Council was approached Wednesday about a new program to help relocate businesses to the city, and help local businesses.

The City of Sidney is benefitting from State funding for economic stimulus, and is hoping to add another option for businesses looking to open in the city. LB840 is a State Bill designed to provide funding for job creation. The City of Sidney has had it in place since 1997. Voters recently approved a 10-year extension to the program. Wednesday morning, Economic Development Director Melissa Norgard and City Manager Ed Sadler met with the city council in a work session to discuss a similar but different idea to draw “good paying jobs to Sidney,” according to the memo distributed for the work session.

“We don’t have enough money to fund all the projects,” Norgard said.

She asked the council at what point does the City decide one business plan is better than another.

The concept is for a fund to be established and a board of directors determined by the investors. The goal, according to the memo, is to create a fund of $5 million to $10 million. Of that amount, 60 percent will go towards startup and investment opportunities and 40 percent will go towards attracting existing businesses to Sidney.

The City’s role, according to Sadler’s presentation, is the initial investment of $500,000. Sadler encouraged the council to view the project as non-governmental. He said the more government is involved, the less private investors will be willing to support the project.

“We’re proposing that it not be part of the government,” Sadler said Wednesday. “If we start controlling, then its just another government,” he said.

Council members Wendall Gaston and Roger Gallaway agreed that the City’s role should be as facilitator to get the process started.

Part of the concern is the requests for LB840 funds are greater than the funds available.

“We’re about to run out of money, and that concerns me,” Sadler said.

Council discussion compared the concept to an “Angel Fund,” except it is focused on Sidney.

“Right now, we don’t have that opportunity. We don’t have that Angel Fund, if you will,” Sadler said.

Sadler recommended the City commit $500,000 from the General Fund to start the Job Investment Fund. The proposal is for the fund to help accelerate economic growth in Sidney by attracting a minimum of 150-200 new jobs in Sidney within six to 12 months of commitments from investors. Initially, potential investors would be approached by City staff, council members and key members of the community, according to the memo.

Sadler and Norgard were given the go-ahead to continue pursuing the program.

The council also discussed how to make necessary improvements at the landfill. Sadler said the facility is in need of new equipment. Equipment considered include a baler, shredder and compacter. Sadler recommended the City purchase a compactor and shredder. The challenge is finding the funds to purchase the new equipment. He said the city can expect to spend about $750,000. A new baler is expected to last about 10 years.

“You cannot wait until you can afford this kind of issue,” Sadler said.