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The property is currently farm ground that calls for extensive
infrastructure surrounding it, as well as the new building and
display lot that would be constructed. A preliminary planning plat
was presented to the Lincoln Planning Commission earlier in October.
The engineering plans, prepared by Greene and Bradford, called for a
340-foot extension of Connolley Road, which runs to the west of the
property, as well as storm water drainage for the property along an
extension of Madigan Drive.
The planning commission asked that the plans be modified to
extend Connolley Road and drainage another 260 feet to reach the
back of the property. The plans entail a lot of costs to manage
storm water flow toward an off-site pond. That infrastructure will
also be usable by future businesses that might develop to the west
of the property.
Chris Graue made a first appearance before the Lincoln City
Council on Oct. 24 to review a proposed development agreement. In
the agreement the company asks for sales tax rebate to cover
infrastructure costs. The plans call for new roads, sewer, storm
water drainage tiles and culverts, and waterlines.
Graue explained the costs of the infrastructure, which include
increased costs of extending Connolley Road according to the
planning commission's modifications. The 260-foot extension adds
$180,000 to the costs.
He also said there were some unanticipated extra costs that they
encountered, the major one being that they had expected to tap into
water already running to the east side of the property for fire use.
It would have cost about $2,000 to run a line off it.
However, the water company has asked that the water be run to the
property from the south. This entails running a pipe under Route 10
at a cost of $75,000. This line would also serve as the water source
for future developments to the west.
There is the possibility that there would be an additional
business in the form of a satellite office located in the new
facility.
Another later possibility is for another business to be built and
about an acre that is adjacent to the property. Both of these
businesses would contribute to the tax base with no additional
infrastructure costs to the city.
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In the agreement Graue asks for $750,000 reimbursement for
infrastructure going to the property. Payback would be made with new
sales taxes -- over what the company now generates for the city --
over a 20-year period. The city would continue to receive sales
taxes up to $130,000 each year; anything coming back over that
amount would be used to pay down those infrastructure costs.
Comments from the council were mostly favorable toward the request.
Finance chair Verl Prather asked council members to take into
consideration the family business' reputation for longevity, their
financial history, as well as current and projected business figures
that were supplied in the agreement, and their community service
commitment.
He also briefly reflected on what has been done for other
businesses that have come to the council in recent times with
development requests. He said that more was spent for the (signal)
lights at Taylor Court (on the east end of the new business
district) than what is being considered here. He said he didn't find
what is being asked for out of line.
Alderman Buzz Busby said that he wanted to see a cap placed on
the amount Graue would receive back in any one year. That is what
has been done on some other agreements, he said. He proposed that it
be between $160,000 and $180,000. So sales taxes under $130,000 and
over the chosen amount would come back to the city. In between,
sales taxes would go back to Graue to pay down the infrastructure
costs.
Graue said, "We're open to suggestions, and we're willing to make
adjustments to try to make this thing work."
Aldermen discussed awareness of setting a precedent and how to
address that. Prather said that the council has and will continue to
take each situation on a case-by-case basis. "You can't set a dollar
amount," he said. "Each type of business is different."
Managing storm water in that area of town has been the topic at
numerous city meetings over the last several years. In light of
anticipated development in the area, the city commissioned an
engineer to do a flow study of the area over two years ago. That
work is in progress.
Essentially what we're requesting is assistance with the storm
water system, Graue said. It brought chuckles when he added, "Water
complicates things."
The company hopes to get an agreement approved at the Monday
evening council session.
[Jan
Youngquist] |
