Mauk Answers 'What's The Real Opposition'

 

NEBRASKA CITY  - Nebraska City economic developer Dan Mauk was asked at the city council meeting what is the real opposition to a proposal that would convert the former Vanity Fair Outlet shopping mall into a hemp cultivation and production facility.

Mauk said he is in an awkward position because he has worked with the developer KORE Holdings since February, but was recently directed by the Nebraska City Area Economic Development Corporation to draft a letter in opposition to using TIF financing for the project.

The Nebraska City Area EDC’s executive board had a second letter drafted saying there are economic benefits to the hemp proposal and stating a neutral position.

Mauk: “What’s the real opposition here? In my opinion, the real opposition is an understanding of the difference between hemp and marijuana ...

 “The products that Mr. Kats and his partners would make are regulated and tested by the state to be less than .3 percent THC, so, if you snuck in and got a bushel of it and smoked it, you would just ruin your lungs. You wouldn’t have any pleasure."

He said the benefits of the hemp proposal are strong, including a $5 million investment in renovation and paying an $80,000 lien the city placed on the property when it extended utility infrastructure beneath the Highway 2 interchange.

Mauk wrote the first of two letters from the Nebraska City Area EDC prior to the Sept. 2 hearing of the planning commission.

The letter says concerns about the production of hemp and hemp related products were discussed, as well as limited job creation with the proposal.

 A subsequent letter followed a conference call with developer Derek Kats.

Mauk says the number of proposed jobs was more than doubled from eight and the expected pay of $50,000 per year was offered for the first time. The executive board voted 3 to 1 to take a neutral position.

Letter: “It is recognized the proposed project may have a positive economic impact to the region through job creation, investment and a new alternative agricultural crop.”

 

It references a Nebraska Supreme Court hearing on Sept. 4 regarding CBD products as grounds for taking a neutral position.

The Nebraska City Area Economic Development Board of Directors is comprised of Chairman Jason Esser of OPPD, Vice Chairman Kelly Bequette of The Keeping Room, Secretary Jeff Kohrs of Nebraska City Utilities, Treasurer Rick Freshman of Otoe County Commissioners and Past Chairman Brent Shanholtz of Ambassador Health.

There are also 11 board members, including the mayor and interim City Administrator Marty Stovall.

At the Sept. 8 city council meeting, Economic Developer Dan Mauk addressed city commissioners regarding the EDC’s position.

Mauk: “What’s the real opposition here? In my opinion, the real opposition is an understanding of the difference between hemp and marijuana. Marijuana being an illegal product, currently in the United States. Even in the states where it has been legalized, it’s illegal on a federal basis, but those products contain higher levels of the psychogenic component called THC.

 

“The products that Mr. Kats and his partners would make are regulated and tested by the state to be less than .3 percent THC, so, if you snuck in and got a bushel of it and smoked it, you would just ruin your lungs. You wouldn’t have any pleasure.

“The other benefits are strong. There may be some that consider the possibility in the future of medical or general legalization of marijuana and that’s probably a realistic assessment. In my lifetime it will probably happen and I’m kind of old. It has certainly happened in a lot of states. 33 states do allow medical marijuana.”

Mauk: “The current project is a legal project, a legal product. If the law changes and full marijuana becomes a legal product, then it’s still going to be a legal product -  whether we like it or not. We as voters in the state have declined on multiple levels at multiple times. We’re conservative. Perhaps we would be the last state to legalize marijuana, unless it’s done on the federal level.

 “To me, that’s not what’s before us here. Is this a project that creates enough value to justify the use of tax increment financing  and it’s really just a purely political decision."

 

Mauk: "You are the leaders of the community. The citizens elected you to this position and I probably wouldn’t trade to be standing here for one of your shoes tonight, but you’re the ones that get to make that decision.”

City commissioners voted 3 to 2 not to amend the city’s redevelopment plan to make way for TIF financing , although the city has an $80,000 lien on the former mall property to be paid back by TIF proceeds.

The lien was put into place during the construction of the Holiday Inn Express for the cost of extending utilities under the Highway 2 interchange.

KORE Holdings was not informed of the $80,000 lien until prior to the planning commission meeting, but Mauk said the company is willing to proceed even though it will have to pay the $80,000 for the utilities.