NEBRASKA CITY - City commissioners advanced an increase in the utility franchise fee to pay for public infrastructure needed for the city's housing development on the old Grundman Airport property.

The city used $500,000 in American Rescue Plan Act funds to purchase about 30 acres near the Morgan Drive neighborhood and CHI Health St. Mary's. The city says an additional $2 million is need for grading the entire site with some storm water retention, as well as utilities and streets to connect Morgan Drive with Grundman Boulevard.

Construction and facilities manager Marty Stovall said the final plat for the housing project is scheduled to go before the planning commission on May 3. He expects it to be ready for bid in July.

Phase one of the housing project will make 21 residential lots and four multi-family lots available for construction.

Mayor Bryan Bequette said the franchise fee increase will raise about $157,000 a year. He said, if the funds had been raised through property tax, it would have raised the levy four to five cents.

Economic Developer Dan Mauk said the city expects to collect $3,000 in sales tax for each unit built, as well as property taxes of $1,500 per year on each house. Once the grading and infrastructure is in place, the city will sell lots to builders.

Stovall said increasing the franchise fee by 1.25 percent will finance $2 million for the improvements, but will not raise the franchise fee above what is typical for Nebraska cities.

Mayor Bequette asked city staff to organize a town hall meeting regarding the franchise fee before an ordinance is passed by the council. A May 10 town hall has been scheduled.

https://rivercountry.newschannelnebraska.com/story/46902516/after-100-years-city-gets-aggressive-for-housing