By Scott Carlson-North Platte Post
North Platte-A fairly large crowd gathered at City Hall in North Platte for the monthly city council meeting.
The attraction to the meeting was the final reading of an amendment to allow for an occupational tax and the creation of an Employment Enhancement Area, or EEA, for the proposed North Platte Mall redevelopment.
The amendment would allow for the addition of a 1.9% tax that will only be paid by those who choose to shop at the mall.
Councilmember Ed Reiker spoke right after the reading of the amendment and stated that he felt it was important for him to clarify his reasons for his previous votes against the creations of an EEA and Tax Increment Financing, or TIF, for the mall, even after voicing his support for the project.
"Number one, I really don't believe this application for TIF and EEA falls within the purview of government," said Rieker.
"To take public funds, or in this case to secure a tax on a transaction, then remit this collection back to a private entity for either enhanced profitability or fiscal integrity impinges on the difference between private enterprise and government," said Rieker.
Rieker acknowledged that while it was legal, that doesn't make it the right thing to do and said it harms the competition by subsidizing the applicant, in this case, Rev Development.
Councilmember Donna Tryon echoed Rieker's comments saying she hoped the project was successful but it is a private enterprise that should stand on its own merits.
"It's not the role of government to solve our shopping needs," said Tryon.
Tryon said she campaigned on smaller government and not one of her constituents told her they wanted to pay more taxes.
Tryon cautioned the public on depending on the government to do for us.
"It's trickling down and we have a chance to stop it in our own community," said Tryon.
Next to speak was councilmember Pete Volz.
"We throw the term government around like it is a four-letter word, a lot of times it is, but we are the government right here in this case today in this council chamber," said Volz.
"Government is not turning this into a Socialistic endeavor, it is facilitating a means to an end," said Volz. "This is not government intervention."
Volz said dictating to the community what needs to be done is government intervention, the council is facilitating a means to achieve an end.
Volz noted his appreciation for his fellow councilmembers' opinions but stated they had a philosophical difference in government.
A member of the community attempted to speak and Mayor Brandon Kelliher reminded those in attendance that it was not a public meeting.
Councilmember Tryon asked if someone could be allowed to speak if they wanted to and had contacted the Mayor. Mayor Kelliher said he would make an exception even though the rules prohibited it.
Chuck Matson of North Platte then spoke and said there was plenty of time to discuss the amount of money being spent through TIF and voiced his support for the council members taking a stand against the project.
Local banker and President of the North Platte Redevelopment Authority Mike Jacobson was next to speak.
"I think that all but one of the people sitting behind me is in favor of the project and the most of the council has made their decision on how they want to vote, I think it's important that those that are viewers that are watching on TV understand a couple of issues," said Jacobson.
Jacobson explained that TIF starts out with a base land value and none of that tax value goes away and stays on the tax rolls.
"Those dollars that are being collected on that mall property today in property taxes will continue going to the taxing authorities even with the approval of TIF," said Jacobson.
Jacobson said the only thing that will be redirected for up to 15 years is the incremental increases that occur as a result of this project moving forward.
"The developers have proven and made it clear that this project is not moving forward without the approval of TIF and EEA," said Jacobson.
Jacobson said this prevents the creation of new taxes if the developers just hang onto the property, like the previous owner, losing tenants and forcing them to find a different use for it.
"If that's what we want for our town, vote no, " said Jacobson. "It's easy to say I support something but if I'm not willing to bring forward the funding mechanism to make it happen then I'm not for it, I don't care how you justify it you're not for it," said Jacobson.
Jacobson also reminded the council that EEA is a voluntary tax that will only be paid if you choose to shop at the mall.
Jacobson said many Downtown merchants and competitors of the mall are for the project.
"A rising tide lifts all boats," said Jacobson. "If we can bring more shoppers to North Platte they are going to shop at all of our merchants, this is a no-brainer," said Jacobson.
After a brief discussion, Mayor Kelliher called for the question, and the final reading of the amendment passed with a 4-3 vote.
Council members Tryon, Rieker, and Mark Woods voted no.
The crowd erupted in applause with the passing of the amendment.
The mall renovation projection is now closer to reality with the final approval of TIF being the final hurdle.
Watch the meeting HERE.