NEBRASKA CITY – The Nebraska City Planning Commission voted Wednesday to recommend tax increment financing for a proposed development of the former VF Mall property into an industrial hemp facility.

Developer Derek Kats said Kore Holdings has a plan for ‘vertical integration’ at the Nebraska City site.

Kats: “It’s really big in the ‘hemp sphere.’ It’s basically taking it from seed to table. Where we would end up doing the propagation of the seed, the actual cultivation of the product and then we would be doing the manufacturing, packaging and processing, if needed to be. Then potentially, if zoning permits, to have retail store front around the outside, as well.”

An outdoor and indoor cultivation areas are proposed, but Kats said the outdoor cultivation area could be eliminated. He said  an indoor cultivation facility helps the company  keep proper THC levels.

The vote to recommend came after the reading of a letter from the Nebraska City Area EDC saying the eight full-time jobs in the original proposal do not warrant the use of public funds.

 

EDC Director Dan Mauk told the planning commission that the board’s letter was drafted before the developer,  KORE Holdings, gave its presentation to the directors.

Kats said up to 20 jobs could be created as the facility is put into full use.

Dr. Dan DeFreece, a member of the board, said directors are concerned about the stigma of hemp production and how it will be received by the community.

 

Kats said CBD oil is leading the market right now, but he expects a shift toward fiber and textiles. He said hemp was once a common agriculture product that is only now shedding its association with marijuana.

Kats: “We understand the stigma about hemp. Definitely it’s a needed one at that point in time. To those in the industry we understand that hemp and marijuana are completely separate forms. Ultimately, the hemp that we are growing is the enemy of the actual marijuana that most people are concerned of. The cross pollination that our flowers provide will actually ruin a marijuana plant, so we are the enemy.  In multiple areas, where it’s been legal to grow marijuana and cannabis, the people who are growing marijuana will be flushed out by cannabis growers, who grow male plants to get the marijuana growers away from them.”

Economic developer Dan Mauk

Kats: “So,ultimately it’s not only a different product, but one another are enemies of each other.”

Kats said the development not only fits into Nebraska City's redevelopment strategy for the closed mall area, but the city’s cultural roots of production agriculture and the concepts of sustainability that are ingrained with the Arbor Day Foundation.

The Planning Commission also received a letter from the owner of the Holiday Inn Express that said the hotel could be adversely affected by a hemp-producing neighbor.