NC Council building housing momentum

NEBRASKA CITY - Nebraska City commissioners agreed Monday to use sales of lots in the city’s housing development to pay $150,000 to Nebraska City Utilities for the cost of materials to install electric service to the area.

The city has already used $460,000 in ARPA funds to buy 27 acres near CHI Health St. Mary’s Hospital in what is now called the Kreifels Hills Subdivision. To raise $2 million for grading, streets and storm sewers the city imposed a 1.25 percent increase in the utility franchise fee.

Jeff Kohrs and Stuart Abbott of the utilities told commissioners Monday that the board of public works typically does the work for electrical buildouts but charges the developer for materials. In this case, the developer is Nebraska City.

Parks Commissioner Patrick Wehling said he would like to find another source to refund the utility for the materials.

Wehling: “The city has already put forth a considerable amount of funds to purchase the land and so forth. I’m just seeing if the utilities discussed being able to step up and cover this $150 (thousand) without having to burden the city.”

Kohrs said the utility is willing to do the work and pay the cost up front for trenching and materials with expectation that enough lots will eventually be sold to pay the $150,000 back. The utility is also paying $80,000 to upsize the water main through the development area from eight-inch to 12-inch pipe.

Wehling said he would like to see the money from sale of the lots go back into the housing program for future development.

“We have talked about once those lots are sold that money comes back to the city. We can then repurpose that money any way we feel. The consensus was – I may not be here when that happens – is to repurpose that towards buying more land, phase two, phase three whatever happens down the road to keep this momentum going.”

Wehling

 

Wehling: “I would prefer for that money to go … You know that’s always been a discussion. It’s nothing that has been voted on, nothing’s been a hard ‘yes’ that money is going to go towards that. Who knows something could happen. Would could go in another direction.”

Public Works Commissioner Ron Ososvki said if it were a private developer they would have the expense for the electrical materials.

Mayor Bryan Bequette answered that if it were a private developer they would use TIF, a financing tool that uses increased property taxes to pay for development costs. Bequette said the city is not using TIF so that the housing project will benefit the school district.

Finance Commissioner Cole Sharp said he understands the vote to assign the $150,000 to the sale of lots comes with the understanding that an alternative source will be used if it becomes available before lots start selling.

Wehling: “I’m looking for bigger and better for the city with the housing development. I we get momentum building houses and we’re cranking it out I’m ready to just keep going.”

In other action, the city discussed using cash reserves for the purchase of a fire truck and ambulance.

 

Mayor Bryan Bequette invited Street Commissioner Joe Chaney and community organizer Jim Kuhn forward for the reading of the Veterans Day proclamation