GRAND ISLAND, Neb.—An occupation tax on meals served at drive-through and sit-down restaurants in Grand Island probably will be used to help pay for the State Fair’s move from Lincoln in 2010, Mayor Margaret Hornady says.
The city plans to unveil its financial pledge at a city council meeting Sept. 9. Final details are still being worked out, Hornady said, but the council likely will decide on a bond for a building agreement with Fonner Park and creation of an occupation tax to pay for the bond.
Hornady said she believes the tax would be less than 2 percent on served meals and would begin Oct. 1. The tax would not apply to groceries or alcoholic beverages, as was proposed earlier.
The bond amount has not been finalized, but Hornady said she expects it to be just under $7 million. That amount could be paid off in five to 10 years, she said.
The building agreement is likely to be similar to the agreement for the Heartland Events Center, Hornady said. The city is paying off a $7.5 million contribution and will eventually own the facility, which is managed by Fonner Park and was built on land owned by Fonner Park.
“We don’t care if we own it,” Hornady said of the State Fair building. “But we feel we owe it to the taxpayers to give them something for their money.”
Hornady said there could be a lease-purchase agreement on one of the proposed State Fair exhibition halls. The city has said it wants a 100,000-square-foot, temperature-controlled exhibition hall. City officials said the hall could be used for recreational events during the State Fair’s offseason.
The Legislature is requiring Grand Island to contribute $8.5 million toward the relocation of the State Fair. The first $3 million must be committed by Oct. 1. The second $3 million must be committed by Feb. 1, 2009, and the balance by July 1, 2009.
The city’s contribution of nearly $7 million will be coupled with a $1 million pledge already made by Hall County and the Hall County Agricultural Society.
That would leave less than $1 million to be raised privately.
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Information from: The Grand Island Independent,
