LB840Economic Development Sales TaxProgram UpdateAdministered by MEDC

Fund Activity Thru 12/2014

• Total Tax Receipts 2007/2014 $2,308,000• Approximately 7 ½ years

• Interest and loan repayments $75,000

Activity Annual Total• Keystone renovation bond $108,000 $810,000• Keystone bond reserve $112,000• Other Projects & Programs $682,000• Operations, staff $103,000 $688,000 • Available $ 91,000

LB840 Economic Development“McCook Opportunity Fund”

Strategic Focus: 1. Existing Businesses • Workforce - People Attraction • Workforce – Housing• Business transitions to New Generations

2. Entrepreneurship - Support Startup Businesses 3. Business Recruitment4. Make McCook more Attractive & Competitive

Workforce – people attractionHeaded up development of Go To McCook Logo, Tag Line and Website

Workforce – People AttractionSupported Website Featuring Life in Southwest NebraskaSeen by 40,000 visitors per month

Over 20 articles have featured McCook area businesses & attractions including the following:

Business transitions

Others Include: Olsen Ag Lab McCook Eye Clinic CrittersvilleTypically requires gap financing

Helping businesses transition from retiring owners to younger generation

MEDC – Helping Businesses Grow

• Substantial work with 26 businesses:• Received $682,000 from multiple funding sources• Attracting over $8 Million in private investment• Seven new businesses• Creating over 75 direct jobs

• Focus on Supporting Existing Businesses• Six+ business transitions assisted• Five+ business expansions

Company Type Program

McCook Eye Clinic Transition CDBG

Heartland Cattle Co. Expansion FHLB

Willow Creek Meats Trans/Expansion CDBG

Olsen's Ag Lab Transition CDBG

JLB Welding New CDBG

Crittersville Transition LB840

Purple Moon New LB840

CRT Teleservices Retention MCDC LLC

East Ward Village Housing LB840

JLB Welding Expansion FHLB

Bombers Sports Bar New TIF

Booe Metal New Business Park

Business Park Paving CDBG/LB840

North Pointe Housing TIF, LB840

Valmont Expansion Workforce, housing, training

Community Hospital Expansion Workforce, housing

American Ag Lab Expansion DED, USDA, LB840

Larger Businesses Served

MEDC – Helping Small Business• Technical Assistance to over 125 in past four years• Finding Locations• Financing, • Fill funding gaps with six + Ec. Dev. sources

• Navigate City & State regulations, zoning etc. • Business transition assistance• Business Planning assistance• Extensive referral network

Keystone Business Center

“A One Stop Shop for business”• 16 Tenants• 5 New Businesses• 3 Anchor Businesses• 6 Service providers• 3 New Business “Graduates”• 34 jobs created

Copperstone Foods

Engineering International

Keystone Floral

KBC Businesses COMPANY TYPE

American Family Insurance Transition

Copperstone Foods Start-up

20-20 Technologies Start-up

Chipperfield Ag Erectors LLC Start-upSew Blessed Quilt Shop Start-up

Keystone Floral Start-up

Tidyman/Engineering International Start-up

Plains Equipment Group - Tech Support New Division

McCook Net AnchorSuccessful Exits

Frontier Ag LLC Start-up

Boardman Counselling Start-up

Stull Incorporated Expansion

Larissa O'Brian Photography Start-up

White Thumb Bakers Guild Start-up

Service Providers

MEDC Service Provider

MPCC Center for Enterprise Service Provider

Red Willow County Tourism Committee Service Provider

Nebraska Business Development Center Service Provider

REAP/Rural Enterprise Assistance Project Service Provider

McCook Community Foundation Service Provider

Bison Alumni Association Service Provider

Keystone Business Center• $4.2 Million rehab - Goes back on tax rolls in

in 2025• $1.1Million in LB840 matched by 74%

federal & private funding • Prevented $600,000 demolition• Supports local property valuations• Contributes to Historic Downtown image

• McCook Business Park paving grant match - $72,000 matches $165,000, • Serves six lots in the Business Park• One new business investing $550,000• Two prospects

Revolving loan program • Two Business Loans:• Crittersville – business transition• Purple Moon Cookery – new business• All loans are current• One pending, $75,000 committed

• Important replacement for closed County CDBG fund• Have been constrained by limited funds available • With Keystone paid off, we can do a lot more with this

program

Façade Program• Make McCook more attractive to out

of town shoppers• Six Completed – Four more pending• KDS Building• Home Spun• McCook Art Guild• Nielsen Chiropractic• Fox Theater Marquis• Sports Shoppe

• $29,000 awarded, $45,000 private investment

Workforce – Housing Rehab • Captured over $1.3 Million in State housing

grants for McCook• Purchase Rehab Resell (PRR) program

• Renovated 11 Homes, 2 more identified• Created $369,500 in new taxable

valuation

MEDC Housing • Down Payment Assistance• Assisted 77 first time homebuyers w/$4000 - $5000 ea.

• Homebuyer Education• Helps first time buyers succeed

Housing – East Ward Village

•$105,000 Gap Loan on $3.9 Million project

Housing – North Pointe• Facilitated securing TIF with City• Finance TIF Bonds for Infrastructure $208,000

Clary Village

• Secured LIHTC Grant for 8 Duplexes• LB840 Equity Loan - $120.000 • Will finance TIF Bonds - $180,000• $2.6 Million in new construction

How Is McCook Doing?

• Since 2000• Over 220 net new jobs in Red Willow Co

(NE Dept. of Labor)• Per capita income increased 26.6% (Census

estimates)• Average earnings per job increased 35.3%

(adjusted for inflation)• 10% increase in 25 to 34 year old population!

(Census estimates)• Stabilized Population

Red Willow County

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010 2011 2012 201310700

10800

10900

11000

11100

11200

11300

11400

11500

11600 Population

ProgramInception

Ballot Question #2• Adopts the Economic Development Plan • Allocates 1/4 cent of City Sales Tax approved under Ballot

Question #1• If Ballot Question #2 is not passed funds go to City

Procedures:• Citizens Advisory Committee will review quarterly• Advisory Committee reports to City Council• McCook City Council maintains oversight of funds

Growing Forward!Possible Future Efforts:• Community Event Center• Fund a stronger business recruitment loan fund• Housing development to support business growth• Infrastructure investments• Business Façade Improvements• Retail Recruitment