Board considers dues, potential downside of TIF

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Like Seward County’s varied departments, the Seward County Chamber and Development Partnership made its pitch to the Seward County Commissioners on June 24 for a place in the county’s 2025-26 budget.

The county’s dues for the SCCDP in the current fiscal year were $60,100, but SCCDP CEO and President Jonathan Jank said they are asking for a 6% increase in that number, making it $63,706.

SCCDP asked for a 6% increase last year, but the county was the only one of the four public entity members who did not increase their 2024-25 dues by that amount. 

The county deferred its decision until further into its budget process, but Commissioner Raegan Hain said “this year is going to prove to be more difficult than last year.”

She said the board might consider a 3% increase, while Commissioner Darrell Zabrocki proposed no increase.

Hain and the other commissioners said they were concerned about the use of Tax Increment Financing in economic development projects. 

TIF involves the inclusion of some financing in a business development plan that allows them to forego a portion of their property tax for 15 years as they pay back that loan.

Zabrocki said TIF can be a wonderful tool but has negative aspects, as well. Commissioners Ken Schmieding and Scott Pekarek expressed similar concerns

Utica business owner and SCCDP Board Chair Scott Gierhan appeared with Jank and said his community has benefitted from SCCDP’s work.

Part of the reason for the membership rate increase is the SCCDP’s commitment to provide its employees competitive wages and, for the first time, insurance benefits.

The Seward City Council, Milford City Council and Utica Village Board will soon be considering 2025-26 membership rates for the SCCDP as part of their budgeting decisions, also. 

A common document going to these entities listed the 2024-25 rates they paid as: $78,186 for Seward, $13,320 for Milford, and $6,950 for Utica, and may be asked to consider a higher payment next year, but Jank said it would be less than the 6% increase.

Jank said the partnership between private entities in the SCCDP and the government entities is important because attracting new businesses, housing and programming always involves public services and public-private partnerships.

A promotional flyer shared by SCCDP listed many of its projects and achievements, including a few that involved the county, like a rural housing fund grant, workforce housing funds, an early childhood education workforce program, the broadband task force, county-wide clean up day, a young professionals group, the Rising Stars leadership program and a variety of educational programs. 

Jank said when they started SCCDP, he had the opportunity to look at a variety of organizational models and nearly all had some public sector involvement. 

“I think it is working out exactly as we had hoped,” Jank said in a later interview.

Jank said the county, Seward, Milford and Utica have anchor seats on SCCDP’s 15-member board, as do the Seward County Visitors Bureau, Concordia University Nebraska and Southeast Community College. 

Three of the organizational members participated in the 2015 visioning exercise that led to SCCDP’s creation and a view for what Seward County could be by 2035.

The individual agreement Jank shared with the commissioners said SCCDP will use the public entities’ funds to “encourage immigration, new industries, and investment and to conduct and carry on a publicity campaign, and advertising the various agricultural, horticultural, manufacturing, commercial and other resources, including utility services” in the county.