By Scott Carlson-North Platte Post
NORTH PLATTE, Neb.-The North Platte Mall renovation project is closer to reality after the North Platte City Council voted to approve funds from the Quality Growth Fund and the creation of an Employment Enhancement Area.
Councilman Pete Volz moved to approve a $1,000,000 loan from the Fund. The loan will be made to North Platte Mall, LLC in two installments. The motion was seconded by Councilman Ed Reiker.
The motion passed unanimously.
The meeting was then opened to a Public Hearing on amending the city's code to provide for a retail business occupation tax for the North Platte Mall, declaring it an Employment Enhancement Area.
This would amend the city's tax code and allow a tax that would be charged only at retailers on the designated property. The investors are currently asking the Council to set this at 1.95%. The tax would not be allowed on groceries.
The additional tax would be collected by the city and used to pay back the loan made to North Platte Mall, LLC.
Mike Works of Rev Development was the first to address the Council.
Works told the Post last week that the Council's decision tonight would determine whether they can do everything or very little of their plan.
Works said it's a three-pronged plan with the city for the project to be completed in its entirety.
Works said the first step was the passage of the loan from the Quality Growth Fund, which the Council passed earlier in the meeting
The next step was the creation of the EEA.
Works ran through a small list of things that needed to be done initially, including replacing the roof, sewer, and other items. The price tag is over $7 million.
Works said the EEA, created under State statute, works great for malls and has been used successfully for numerous malls in Nebraska.
"If Tax Incremented Financing was enough to cover it, we wouldn't be here tonight," said Works.
Works said malls across the nation are on a downward trend due to design and not catering to the modern shopper.
Works said if the Council passes this motion, the city would no longer have an indoor mall and would have a modern retail center.
Among the potential tenants mentioned by Works were Dunham's Sports and Gold Ticket Theaters.
Works said the tenants control negotiations in the mall business and that does not allow for costs to be recuperated by increasing lease amounts, therefore, requiring the involvement of the city, and making the EEA a necessity.
After hearing from many residents in favor of the project and some discussion from Council members, mostly in favor of the project, the motion passed five to two. Two more readings of the measure are required, with the second reading occurring at the May 18 Council meeting.
Councilwoman Donna Tryon and Councilman Ed Reiker voted against the measure, Councilman Ty Lucas abstained from voting due to his position at Nebraskaland National Bank. A source tells the Post that Councilman Mark Woods said he meant to vote "No" but hit the wrong button.
The crowd erupted in applause, then loudly exited the meeting. The Council took a ten minute break before reconvening.
The Council will have a first reading of the Mall project's request for TIF financing on May 18.