Company gets green light on TIF

Thursday, September 6, 2018

McCOOK, Neb. —  The McCook City Council gave the green light Monday night for an agricultural chemical company in McCook to use tax increment financing to expand its facility.

Next Generation Inc. is located in McCook’s Industrial Park east of Valmont and first started business in McCook in 2017 when the council gave approval to use $720,000 in TIF for construction of its $9.06 million facility. The company handles and distributes agricultural chemicals.

The company is doubling its facilities at the Industrial Park and requested $1.024 million in TIF for the $6.5 million expansion. The amended Redevelopment Plan that the council approved as the Community Development Agency Monday night outlines the project and stipulates elements required to comply with state law for TIF.

A total of $5.24 million in private investment is part of the project and Next Generation Inc. will secure a loan to pay for upfront costs.

No city funding will go toward the project and local taxing entities, such as the county and school, will receive the same amount of taxes from the undeveloped portion of the property.

Per the contract the council also approved Monday night, the TIF bond will be paid back with using the difference in increased property taxes attributed to the improved property, with the re-capture period of 14 years. Typically, TIF bonds have 15-year re-capture period, but due to Next Generation’s initial TIF bond in 2017, one year has already elapsed.

According to the TIF cost-benefit analysis in the amended Redevelopment plan, the project will increase the assessed property valuation to $5.67 million in 2018, $6.87 in 2019 and $10.48 million thereafter.

Several addressed the council during the public hearing about Next Generation Inc.

McCook Economic Development Corp. director Andy Long called the project a great opportunity, with other communities competing for projects like this one. City Manager Nate Schneider elaborated on that and said the company had other options but chose McCook (in 2017) to locate its facility. And Todd Reed, president of Next Generation Inc., addressed the council and said the past year was good for the company and that they were happy to be here.

The McCook City Council will be asked to approve the bond resolution for the project at its Sept. 17 regular meeting.

How Ravenswood Road will be improved

The city will receive a $137,000 grant from the Nebraska Department of Transportation toward improvements for Ravenswood Road.

City Manager Nate Schneider told the McCook City Council that Next Generation Inc. applied for the grant, to help pay for improvements on Ravenswood Road due to increased truck traffic. Next Generation is located in the McCook Business Park, across from Ravenswood Road.

Total costs of improvements are $250,000. Additional funds for the improvements will come from LB 840 motor vehicle taxes, at $75,000, with the MEDC kicking in $39,000.

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