Grand Island council adjusts Good Life District funding following legislative changes

The June 10, 2025, City Council meeting in Grand Island, Nebraska, focused on significant updates regarding the Good Life District following recent legislative changes. City Attorney Fisk presented a detailed overview of a new legislative bill that modifies various statutes related to the district, emphasizing that many provisions do not apply to Grand Island but may affect other jurisdictions.

A key change highlighted was the adjustment to the funding formula for the Good Life District. Previously, the city anticipated generating approximately $7.5 million from the Good Life District occupation tax, which was implemented after a state sales tax reduction. However, starting October 1, the state will revert to its original sales tax rate, and the city will now receive a maximum of $5 million from the 2.75% sales tax collected from existing businesses within the district, along with a portion from new businesses. This change significantly reduces the expected revenue and will require the city to amend its program ordinance to align with the new funding structure.

Fisk noted that the new legislation introduces complex definitions and reporting requirements, particularly distinguishing between expenses eligible for public versus private developers. A notable restriction is that private developers can only allocate 20% of their expenditures to non-revenue generating items, reinforcing the goal of ensuring that every dollar spent generates sufficient returns.

Additionally, the legislation has fixed the boundaries of the Good Life District, removing the city's previous flexibility to expand the area. This change will impact future development plans and funding strategies.

Following Fisk's presentation, Ms. McAloon provided an update on the Woodsonia project, which had applied for funding under the Good Life District program. She explained that the city had been in discussions with Woodsonia regarding their application but paused any final agreements pending the legislative changes. Woodsonia is currently evaluating how the new law affects their proposal.

The council was advised that the city plans to present an updated ordinance in July to reflect the new funding formula and clarify eligible expenses. McAloon expressed urgency in moving forward to avoid complications with the next legislative session, which is only nine months away.

In conclusion, the meeting underscored the need for the city to adapt quickly to the new legislative landscape affecting the Good Life District, with significant implications for funding and development strategies moving forward. The council will reconvene in July to discuss the proposed ordinance changes and the future of the Woodsonia project.