Urban Affairs Committee
January 28, 2025
Committee Chair: Sen. Terrell McKinney | Bills Heard: 4 | Full Transcript (PDF)
LB286: Changes application deadlines under Nebraska Innovation Hub Act and Rural Projects Act
Introduced by: Sen. Terrell McKinney | Testimony: 0 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
McKinney fixes drafting error in innovation hub deadline. LB286 corrects an oversight from last year's legislation by establishing a December 31, 2025 application deadline for the Nebraska Innovation Hub Act and Rural Projects Act.
Why it matters: The deadline was supposed to be added in 2024 but was omitted during drafting. Without it, applicants lack clear guidance on when to submit applications for these economic development programs.
What they're saying: - Sen. McKinney: The bill "provides clear guidance and transparency to applicants" and is "a simple change" to fix the prior year's error. - Sen. Andersen sought clarification on whether there were specific challenges prompting the extension, which McKinney confirmed was simply ensuring the deadline got properly codified.
What's next: No testimony was offered for or against the bill. McKinney waived closing remarks. No vote was taken during the hearing.
Committee sentiment: Unclear: Sen. Bob Andersen
Sentiment estimated from questions and comments — not stated positions.
LB289: Municipal governance and economic development provisions
Introduced by: Sen. Terrell McKinney | Testimony: 3 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
McKinney's municipal bill tackles recruitment crisis and retail restrictions. LB289 addresses three separate governance challenges: allowing villages to shrink boards from five to three members, removing LB840 restrictions on large retail chains, and letting city councils serve as zoning boards of adjustment.
Why it matters: Nebraska municipalities report severe difficulty recruiting qualified citizens for boards and committees. The Village of Surprise cannot achieve quorum. Meanwhile, LB840 restrictions designed to protect small businesses have hampered downtown development in communities like Seward, where empty storefronts persist despite available economic development funds.
What they're saying: - Proponents: Greg Butcher (Seward): "Retail breeds retail." Small independent retailers—coffee shops, bookstores, craft breweries—are "the lifeblood of our communities." Lynn Rex (League of Municipalities): 50 of 93 counties already operate with three commissioners, proving viability. - Skeptics: Sen. Clouse raised separation-of-powers concerns, citing a York case where a board of adjustment required city council to sue for correction. Sen. Sorrentino worried about a 40% reduction in board representation and whether "very few" would speak for the majority.
By the numbers: 377 villages in Nebraska; 50+ counties with three commissioners; Kearney's board of adjustment met once last year.
What's next: No vote was taken. McKinney indicated the committee should explore the bill further and coordinate with the League on implementation details.
Committee sentiment: Skeptical: Sen. Bob Andersen, Sen. Stan Clouse, Sen. Tony Sorrentino Unclear: Sen. Dan Quick
Sentiment estimated from questions and comments — not stated positions.
LB290: Expands geographic flexibility for Omaha Inland Port Authority economic development funding
Introduced by: Sen. Terrell McKinney (presenting for Sen. Mike Jacobson) | Testimony: 2 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
McKinney seeks flexibility for Omaha airport business park facing environmental and displacement hurdles. LB290 removes the 2-mile airport proximity requirement for Economic Recovery Act grants to the Omaha Inland Port Authority, allowing development anywhere within the 3,000-acre authority boundary instead of a constrained area near Eppley Airport.
Why it matters: The current preferred site faces two major obstacles: environmental contamination requiring expensive cleanup, and potential displacement of residents facing community opposition. The Board voted to give developers a predevelopment grant to explore alternatives. The project also faces a $100 million funding gap against $90 million in allocated state funds, making site flexibility critical to project viability.
What they're saying: - Proponents: Jake Hoppe (Inland Port Authority): The 2-mile restriction creates "limited available sites" and removing it provides "flexibility" while maintaining north Omaha focus. Davielle Phillips (Vice Chair): Identified over 100 acres of vacant lots on North 24th Street and industrial land between Highway 75 and 24th-30th Streets that could minimize displacement. - Skeptics: Sen. Andersen questioned whether COVID-19 recovery rationale still applies in 2025 and whether lack of investment in north Omaha is truly pandemic-related. McKinney acknowledged the funding gap but argued the project remains needed for job creation and poverty reduction.
By the numbers: 3,000-acre Inland Port Authority boundary; approximately 2,000 acres buildable; $100 million funding gap; $90 million allocated.
What's next: No vote was taken. McKinney promised to provide a map of the Inland Port Authority boundaries to clarify the geographic expansion.
Committee sentiment: Skeptical: Sen. Bob Andersen Unclear: Sen. Tony Sorrentino, Sen. Vic Rountree, Sen. J. Cavanaugh
Sentiment estimated from questions and comments — not stated positions.
LB240: Adjusts TIF administration deadline for county assessors
Introduced by: Sen. Mike Jacobson | Testimony: 2 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Jacobson moves TIF deadline earlier to give county assessors breathing room. LB240 shifts the deadline for submitting TIF project decisions to county assessors from August 1 to July 1, providing one additional month for assessors to complete valuations before they must certify totals to local governments by August 20.
Why it matters: County assessors must divide tax bases between frozen baseline amounts (going to taxing authorities) and new valuation increases (funding TIF bonds). The August 1 deadline leaves insufficient time for comprehensive review, especially as property valuations have surged and the number of TIF projects has grown. The change affects a self-sufficient economic development tool that has been critical since 1978.
What they're saying: - Proponents: Candace Meredith (NACO): The August 1 deadline is "a little bit short" for comprehensive review; July 1 gives assessors "ample time." Sen. Jacobson: TIF is "probably the only economic development program" that is "fully self-sufficient" and takes "no taxpayer dollars." - Questions: Sen. Cavanaugh asked when cities have the information needed to meet the July 1 deadline. Rex noted it depends on project development but that municipalities understand the importance.
By the numbers: One-month extension; August 20 certification deadline for counties; TIF in place since 1978.
What's next: No vote was taken. Both NACO and the League of Municipalities testified in support. Jacobson did not remain for closing remarks.
Committee sentiment: Unclear: Sen. J. Cavanaugh, Sen. Stan Clouse
Sentiment estimated from questions and comments — not stated positions.
Session Notes
Committee Chair McKinney opened the hearing with procedural instructions regarding testifier sheets, time limits (5-minute green light system), and written position submission deadlines (8 a.m. day of hearing via nebraskalegislature.gov). Committee members present: Sen. Dan Quick (District 35), Sen. Tony Sorrentino (District 39), Sen. Bob Andersen (District 49), Sen. Stan Clouse (District 37), Sen. Vic Rountree (District 3), and Sen. J. Cavanaugh (joined during LB290 testimony). Legal counsel: Elsa Knight. Committee clerk: Sally Schultz. Pages: Emma Jones and Arnav Rishi (both UNL political science majors). The committee heard four bills. LB240 was initially scheduled but Sen. Jacobson was in another committee, so the order was adjusted to hear LB290 first. Sen. Jacobson presented LB240 later and did not remain for closing remarks due to other committee obligations. No votes were taken on any bills during the hearing.
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