By Allison Peck
Listen to the full interview with Brandon Kelliher on our Kubota Podcast
The North Platte City Council approved the Newberry Village redevelopment plan and associated tax increment financing (TIF) request Tuesday night following discussion from council members, city officials and residents who voiced questions about the project.
Speaking during his weekly City Council recap with North Platte Post News Director Allison Peck, Mayor Brandon Kelliher said the proposal generated significant discussion both online and at City Hall before receiving approval on a 5-3 vote.
Kelliher said several residents attended the meeting to ask questions about how TIF works and how the project could affect property taxes.
"Most of the comments from the folks who came up to the mic and spoke had to do with their concerns about how tax increment financing might affect their property taxes," Kelliher said.
According to Kelliher, the project is intended to address a shortage of affordable homes for first-time homebuyers in North Platte.
He said homes in the $125,000 to $200,000 price range are often purchased quickly by investors and converted into rental properties, limiting opportunities for residents hoping to purchase their first home. The Newberry Village project is designed to create housing that could sell in the roughly $150,000 range.
Kelliher said homeownership remains one of the primary ways families build long-term wealth and believes the development could provide opportunities for residents who might otherwise be priced out of the market.
The mayor also addressed differences between commercial and residential TIF projects. He noted that major developments such as Menards, Walmart and Sustainable Beef relied on TIF assistance, but said the Newberry Village proposal functions differently because the requested TIF reimbursement is tied only to increases in the value of the land rather than the homes themselves.
Kelliher said the developer plans to invest just under $13 million in infrastructure, including streets, water and sewer improvements, while requesting approximately $1.27 million in TIF assistance. He said homes built within the development will be taxed normally, with those property taxes flowing directly to local taxing entities including the city, county and school district.
The mayor estimated it could take a decade or longer for the developer to recover the approved TIF amount through the increase in land value generated by the project.
Kelliher said council opposition came from differing perspectives. One council member opposed the project because of concerns about creating what he characterized as another trailer park, while another has historically opposed most TIF projects on philosophical grounds. The mayor said he was unsure of the reasoning behind the third dissenting vote because it was not specifically stated during discussion.
The council also discussed a proposed ordinance regarding pedestrian safety and the use of traffic medians. That item was tabled for additional revisions and is expected to return for consideration at a future meeting.