NEBRASKA CITY – A proposal to use American Recovery Funds to establish housing incentives in Otoe County’s villages and small cities is gaining traction.

Dan Mauk of the Nebraska City Area Economic Development Corporation met with county commissioners Monday with the idea of using about a third of the $3.1 million the county expects to receive.

Mauk said the EDC typically gets about eight prospects for job creators each year, but since the pandemic that number has grown to 28.

He said while the interest is surging, the lack of housing is working against the county.

Mauk: “Having a work force is one of the key arguments I have to make (to prospects who ask) ‘you have low unemployment, how are you going to fill these new jobs. We do that if these 3,000 people driving into the county live here and they have a place to stay.”

County Commissioner Rick Freshman said housing would broaden the tax base and increase the county payroll if businesses see promise in a growing workforce.

Freshman: “If we could do 50 or 60, 70 of them in the county over the course of the next two to three years, what that would do, as far as return on investment going forward, the numbers are just astronomical.  That’s what the ARPA is for. To look toward putting something for the future. Not that a bridge or road is in there too, but as a board we need to look at where the best bang for the buck will be. I think this program is one of the programs.”

Commissioner Jerad Sornson said he has not ruled out the use of recovery funds for county bridges.

Sornson: “I’ll be honest with you. If stuff comes out where we can use it for infrastructure, we’re struggling in a lot of spots in our county with bridges and infrastructure.”

The National Association of Counties say the government’s interim final rule says counties can not use the funds for general infrastructure outside of water, sewer and broadband investments.

  

Responding to the pandemic’s negative impacts on workers, families and small business are focus areas for use of the funds. Housing that benefits health care workers or front-line workers in food service and manufacturing appear to directly qualify.

Mauk: “When you look at  the long-term value that keeps on giving, I think that the investment in housing is going to be the beneficial one for all of us .”

Nebraska City Parks and Rec Commissioner Patrick Wehling said a newer housing stock and growing population will benefit the school system and businesses in every aspect.

 Wehling: “Long term it’s a great idea because, as a lot of people understand, most understand that our housing has been very minimal in terms of growth, especially in Nebraska City, so we’re looking to doing what we can … I’m looking to propose and push ARPA funds to be used for housing.”

Mauk said a program is needed to encourage developers to include rural Nebraska in plans, even as metropolitan areas continue to grow.

Mauk: “The risk to a developer is much higher. There’s not economies of scale in a smaller community, where you can go in and build 200 homes in a neighborhood. There distance from suppliers is further, so the cost per square foot is higher, so without some kind of incentive to take some of that risk off the table you see just a very few trickle of builders come in, doing mostly custom homes for people.”
He said to make an impact for working people, a little bit of incentive goes a long way.

Sornson said the county expects guidance on uses for ARPA funds this winter.