Local Option Municipal Economic Development Act (LB840)

The Local Option Municipal Economic Development Act (LB840, 1991) authorized incorporated cities and villages — if approved by local voters — to collect and appropriate local tax dollars, including sales and/or property tax, for economic development purposes. To implement an LB840 program, communities formulate a written economic development plan which, if voter-approved, becomes the foundation for the collection and expenditure of local tax revenues for economic development under which the municipality’s LB840 program operates. Eligible Communities All Nebraska cities and villages — or any group of two or more cities acting under the Interlocal Cooperation Act — are eligible to seek local voter approval and participate in LB840. LB840 Program Guide Eligible Activities Any project or program that provides direct or indirect financial assistance to a qualifying business is an eligible activity for local funds to be collected for the economic development program, or for any payment of related costs and expenses. Programs could include, but are not limited to: Direct loans or grants to qualifying businesses for fixed assets and/or working capital. Loan guarantees for qualifying businesses. Grants for public works improvements which are essential for the location or expansion of a qualifying business. Grants or loans for job training. The purchase of real estate, options for such purchases, and renewals or extensions. Grants or loans to businesses to provide relocation incentives for new residents. Payments for salaries and support of city staff or the contracting of an outside entity to implement the economic development program. Grants or loans for the construction or rehabilitation for sale or lease of housing for persons of low or moderate income. Grants or loans for the construction or rehabilitation for sale or lease of housing as part of a Workforce Housing Plan. Qualifying Businesses A qualifying business is any liability company or sole proprietorship that derives its principal source of income from one of the following: Manufacturing Headquarters facilities relating to eligible activities Research & Development Telecommunication Activities or sales of goods or commodities in interstate commerce Tourism-related activities Sale of services in interstate commerce Production of films or television programs. In cities with a population of less than 100,000 it may also include: Construction or Rehabilitation of Housing (either as LMI or under a Workforce Housing Plan). In cities with a population of 5,000 or less, any activities may qualify. In all cases, businesses do not have to be located within city limits. For information, please consult the guide for implementation. Current LB840 Communities A-B C-F G-M N-R S-Z Ainsworth Albion Alliance Arapahoe Arnold Atkinson Bancroft Bassett Bayard Beatrice Beaver City Beemer Bellevue Blair Burwell Cambridge Callaway Chadron Chappell Central City Columbus Cozad Clearwater Crofton Curtis Crete Deshler Doniphan Decatur Eustis Ewing Fairbury Falls City Fremont Fullerton Geneva Gering Gothenburg Grand Island Hartington Holdrege Imperial La Vista Lexington Louisville Loup City Lyons McCook Milford Mitchell Nebraska City Neligh Norfolk Nelson Ogallala O’Neill North Platte Oshkosh Palmer Ord Plattsmouth Ravenna Plainview Pawnee City Sargent Scribner Schuyler Scottsbluff Seward Sidney South Sioux City St. Paul Stromsburg Stuart Superior Sutherland Sutton Tecumseh Tekamah Utica Valentine Wakefield Wayne West Point Questions about the Local Option Municipal Economic Development Act? Amanda Sindelar [email protected]   |   531-350-7721