These days there is a high degree of competition among states and municipalities in their effort to provide incentives for businesses to expand or locate in their respective jurisdictions. A municipality’s ability to encourage the provision of new services or business location and expansion has a direct impact on the economic well-being of its community and residents, and the City of Beatrice is no exception. For this week’s blog, I will be highlighting some of the great financing tools the City of Beatrice has to offer to businesses interested in locating or expanding here in Beatrice.
To start, I will discuss the City of Beatrice’s Economic Development Program, commonly referred to as LB840, which provides financing through loans to qualifying businesses. LB840 Funds are a tool that encourages and stimulates the growth of quality jobs, attracts permanent investment, broadens the tax bases, and diversifies the economic base. The overall goal of this program is to decrease the unemployment rate and increase the per capita and median household incomes throughout Beatrice and Gage County. This program is overseen by the City’s Citizens’ Advisory Review Committee (“CARC”).
Another financing tool offered by the City is known as Tax Increment Financing (“TIF”). TIF is a tool used to assist in financing redevelopment projects that are located in areas designated by the City as blighted and substandard, and that would otherwise not be possible without TIF. TIF is not a grant or loan, but rather, a program that uses the taxes generated from the increased valuation of a development site to finance eligible public improvements. A TIF project may be able to capture future property tax payments for up to fifteen (15) years. The City’s TIF program is overseen by the City’s Community Redevelopment Authority (“CRA”).
For certain qualifying projects, a new process known as Micro TIF can now be utilized, which, while having more restrictions for the types of eligible projects, allows redevelopers to skip some of the initial requirements of regular TIF Projects. An added benefit to using Micro TIF is that the requirement that the project be impossible but for the use of TIF financing does not apply. One key difference, however, is that Micro TIF projects can only capture future tax payments for up to ten (10) years. Ultimately, the maximum amount of funding available to redevelopers under both TIF and Micro TIF depends on the amount of eligible public improvements involved with the project.
Yet another great financing tool, the City offers loans through the City’s Property Assessed Clean Energy (“PACE”) Program. PACE loans are a mechanism for financing energy efficiency and renewable energy improvements on private property. PACE programs allow commercial (including multifamily residential property comprised of more than four (4) dwelling units) and industrial business owners to finance the up-front cost of energy or other eligible improvements on a property and then pay those costs back over time through a voluntary assessment. This program is intended to encourage and support the use of energy efficiency and water conservation measures and reductions in energy and water usage by commercial property owners.
These three (3) financing tools offered by the City of Beatrice promote the growth of local businesses and attract new businesses to our community. All of the financing tools mentioned in this blog can be found on the City’s website. You can read more about whether you or your business may qualify for one or more by reviewing all of the applications and program pamphlets here.
Taylor Rivera
City Attorney