Scott gives update on Von Loh building, Elk Ridge, Bear Creek
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Scott gives update on Von Loh building, Elk Ridge, Bear Creek
Don Harrold, Contributor
“I don’t know of any plans in the works where anybody actually has put a down payment down and said, ‘I’m going to buy this building and I want to do this,'” David Scott, assistant city administrator of operations for the City of Blair, said of the “Von Loh building” (former Fernando’s at the corner of 16th and Washington) downtown. “Hasn’t gotten to that point yet. I wish it would.”
Scott said he believes “the bank owns it now.” “I know there were some people they were talking to, but they haven’t really introduced … Like, we don’t know what their plans are yet. I just know somebody might be interested …,” he said.
The Enterprise asked what tools the city has to say something has to happen with the building. “It depends on what you want to happen to the building,” Scott said. “I mean, if somebody was to speak to the owner, which again, I think is the bank, and wanted to talk to the city about what their plans were for that property, there are a number of economic drivers we have available. We have our LB840 program. We could work with them if it involved job creation or something like that. I’m sure the city would be happy to talk about that with them depending on what they’d want to do there.”
“There’s always state economic development programs that you could look at, depending on what they were going to do,” he said. “Again, whether they were going to keep it as what it was intended to be, as residential. Of course, with it being so hollow, I don’t know why anything wouldn’t be on the board.”
Scott said that “certainly we would want to look at whatever economic driver we could find to work with them, because we know it’s important to the community. And it’s important to us.”
The Enterprise asked whether there are punitive tools, such as LB256, that could be used to encourage owners to do something with their property. “I think you’re absolutely right, and I think a lot of communities are using those types of programs,” Scott said. “… I don’t think that’s probably the best choice at this point. I think we should probably give them time to see what they can make happen. But you’re right. I mean, nothing should ever be off the table.”
Elk Ridge is a new housing development in Blair on property that was at one time being developed by Justin Von Loh. “I know that they’re doing the design. I got the first update of the engineering that they’re doing … So that’s good. It’s moving forward,” Scott said.
Scott said that “they did take out a bond against what they were going to do for their engineering.” “Why would we put ourselves at risk, right?” he said.
“Sometimes cities just pay and hope for the best. I don’t know that that’s always the best way to do things,” Scott said. “It was smart to make sure they backed what they were going to do.”
Bear Creek is a planned 137-home development in Blair being built by McCune Development with D.R. Horton. It is expected to use a community improvement district, or CID, under LB1114, a new state law.
A CID is a special taxing district within a city or village that can borrow money to pay for public improvements such as streets, sidewalks, water lines and sewers. The debt can be repaid over time through additional property taxes within the district and special assessments on properties that benefit from the work.
The arrangement can help a development move forward while reducing the amount the city would otherwise need to finance through its general budget. New construction could also expand the city’s tax base, although property owners within the district can face additional taxes and assessments to pay for the improvements. Under LB1114, a default on the district’s bonds or warrants does not become a debt or obligation of the city, county or state.
The Enterprise asked whether Scott thinks the CID is “a pretty good deal for the city.” “I think it is definitely a tool that nobody had before, and we have now, and it takes a lot of the risk away from the city and the property taxpayers in other areas of the city, so which is good for them, right?” Scott said. “I own property. I don’t want to pay more.”
“I believe that it was my predecessor, Phil Green, who had maybe even lobbied for this legislation. In fact, I know he lobbied for this legislation to pass, so he had a very vested interest in it. That’s probably why it’s not a surprise that we’re first,” Scott said. “He had something in mind right away, right? That’s why he was down there lobbying for that legislation to pass that allows this type of development.”