Revolving loans to be offered for new housing, rehab

McCOOK, Neb. — The McCook Economic Development Fund will create a $660,000 revolving loan fund for workforce housing, with loans for new construction, substantial rehab and upper floor housing.

Workforce housing is defined as housing affordable to households earning between 60 and 120 percent of area median income (AMI). It targets middle-income workers such as police officers, firefighters, teachers, health care workers and retail clerks, according to the Urban Land Institute. 

The MEDC board approved up to $90,000 from LB840 funds for the Rural Workforce Housing Fund grant application, said MEDC director Andy Long at Monday’s city council meeting. Based on local contributions, only $54,3000 from the MEDC was needed for the community to reach the match level. This is a state program that provides matching funds from the Department of Economic Development and Nebraska Investment Finance Authority (NIFA) to create a revolving loan fund for workforce housing. The MEDC recently received over $166,000 from NIFA and $250,000 from the state, creating a $660,000 revolving fund for housing, Long said.

The McCook Growth Fund (LB840) Economic Development Program is funded by the McCook City sales tax. Of the 1.5% city sales tax, the MEDC program receives one-half of the .5%.

Long updated the council on other economic development programs, including:

-Housing match, $20,000: A bid was accepted by Wardcraft for a new house at West Ninth and Q later this year with construction to begin in October. A $405,000 innovative housing grant was awarded to McCook, Benkelman and Cambridge to be used among the three communities for capital to build workforce housing.

-Early childhood education, New Provider Scholarship, $20,500: This incentive program is for providers to increase the numbers of infants they have and to provide scholarships for students in childhood education programs. With state grants and local support, local providers are also given incentives to participate in the state’s quality initiatives. Long said because of the programs, the area now offers 120 new childcare spots, more than the 25 that a new daycare center would provide.

-The “digital facade” program, $10,500: The program gives guidance and financial assistance to help businesses increase their in-store and online revenue and upgrade their online presence. Applicants are reviewed by a committee before being approved. Long said Sehnert’s Bakery used the program and it was a key part of adding an online marketplace last Christmas. “They said they sold more stollen bread than ever,” he said. VK Electronics is the other business that has utilized the service, Long said and has grown from a regional business that can now sell products nationwide.

-Housing Purchase, $70,000: the MEDC moved fast in purchasing 12 lots of property on Seminole and Park, Long said, with the property pre-made for housing with infrastructure in place. The purchase was $210,000 and the MEDC board approved the initial payment of $70,000, with a loan covering the rest of the price, but allocated up to the full purchase price using the LB840 fund. The board elected to borrow a portion of this initially as rates are low. Developers are now being sought, Long said.

- Housing study, $18,000: Two firms were interviewed for an updated housing study and MEDC chose Hanna:Keelan. This study will help to market property to developers and allow the MEDC to expand its use of tax increment financing for a workforce housing plan.

-North Pointe Purchase, $150,532: The MEDC board approved the purchase of this property from a private investor. The ability to control this property will allow MEDC to recruit developers for workforce housing, Long said. There will be significant infrastructure costs (sidewalks, water), but as it’s in a redevelopment area, i.e., designated as blighted, tax increment financing (TIF) can be used. There are about 24 lots in this property.

-Fiber Optic network: an MEDC program offers a $150,00 low-interest loan and received three proposals. Two companies are already expanding their service not using this program.

-Anna and Tanner Powell, owners of Aphrodite Hair Design, borrowed funds from the MEDC’s revolving loan fund for businesses and paid them off eight months ahead of time.