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Kearney approves 10-year, 50% tax abatement for Prejuve Properties commercial project
Summary
The Kearney Board of Aldermen approved an ordinance granting a 50% ad valorem property tax abatement for 10 years to Prejuve Properties LLC for a roughly 25,200-square-foot commercial building in the city's enhanced enterprise zone.
The Kearney Board of Aldermen approved an ordinance Monday granting a 50% ad valorem property tax abatement for 10 years to Prejuve Properties LLC for a commercial building planned in the city's enhanced enterprise zone.
The project is planned as a roughly 25,200-square-foot building at Premier Drive in the Innovation Business Park and includes office space and indoor recreation uses; the board voted unanimously to approve the first and second readings of the ordinance. "The total abated amount, if we do 50% for 10 years, [is] projected to be $315,000.66," Economic Development Director Caroline Yatsuk told the board.
Why it matters: The enhanced enterprise zone program aims to attract capital investment and jobs by reducing property taxes on new improvements within the zone. Yatsuk said the project meets the city's economic development policy, sits inside the certified enhanced enterprise zone, and is in an approved industry cluster (NAICS 71: arts, entertainment and recreation).
Details from the presentation: Yatsuk described the planned building as having about 7,200 square feet of office space for chiropractic, physical therapy and aesthetician care; roughly 10,000 square feet for basketball courts; about 3,000 square feet for batting cages; and about 5,000 square feet for tennis courts. She reported a capital investment of just under $2.7 million and a year‑1 estimated assessed value of new improvements of $691,107. Yatsuk said the packet includes a full cost‑benefit analysis prepared by Gilmore & Bell and the Enhanced Enterprise Zone board's resolution recommending approval.
Board comments and review: Alderman Turner asked whether the performance agreement would survive if the project ceased operations partway through the abatement term; Yatsuk confirmed the performance agreement contains provisions that would negate the abatement if the project discontinued performance within the term. The board also confirmed that representatives of the fire district and the school district sit on the EEZ board; Yatsuk said the EEZ board's recommendation was unanimous.
Action taken: The ordinance authorizing the tax abatement was read and approved on first and second readings. During the roll call on second reading the mayor recorded votes in favor from Aldermen Lehman, Bargard, Holt and King; the mayor declared the vote unanimous and the ordinance passed.
Next steps: Yatsuk said the final ordinance and performance agreement will include the statutory language required by state statute and will incorporate the exhibits presented to the board. No effective date or additional implementation timeline was specified in the public record.
