Council Approves Additional Funding for Highby Forest Products

The Sidney City Council Tuesday approved expanding Economic Development Funding (LB840) for Highby Forest Products.

In its April 10 meeting, the city council approved funding assistance Highby’s forest products division and its outdoor sports division. On May 8, Economic Development Director Melissa Norgard stressed the two divisions are separate companies.

Tuesday’s decision expands the benefits to Highby Forest Products for $67,500 over three years. In exchange, the company will be adding at least 10 employees to the current staff of four new employees. The 10 new employees will be an investment of about $270,000, according to Norgard.

Councilman Wendall Gaston said he is glad to see the program working as it is designed.

“We’re here to produce jobs. I’m excited it worked out the way we planned,” he said.

Norgard said the company is targeting a 100-mile radius of Sidney to expand the business. Highby Forest Products is currently working with Agri-Plastics and Lukjan. She said both companies are doing better than first forecasted.

The council later discussed how to keep economic development projects funded. City Manager Ed Sadler said the City has “just under $300,000 left.” He was asked about applying the $500,000 of the General Fund toward the LB840 economic development or start the business/government organization.

“At some point, you’re going to have to put some more thought to it,” Sadler said to the council.

Norgard was asked if the State is helping with economic development funding.

“The problem is their money is tied up as well. They can only do what they can do,” she said.

Mayor Joe Arterburn asked why Sidney isn’t participating in the Economic Opportunity Zones. Some of the issue, according to Norgard, is the program is so new officials don’t know how it works.

The program was announced recently by Gov. Pete Ricketts. Gov. Ricketts announced in a press release dated April 9 that the U.S. Department of Treasury grated approval of Opportunity Zones nominated by the State of Nebraska. The Tax Cuts and Jobs Act of 2017 created the Opportunity Zones program to spur economic growth by supporting new investment in designated zones, according to the release. The Tax Cuts and Jobs Act authorized the governor of each state and territory to nominate a certain number of qualifying census tracts as “Opportunity Zones.” Nebraska’s designations were officially confirmed by the Treasury Department on April 9.

Each state was allowed to nominate 25 eligible census tracts or 25 percent of the total eligible census tracks within the state, whichever is greater. Census tracts eligible for nomination, according to the State release, have a poverty rate of 20 percent or more, median family income did not exceed 80 percent of the median family income of a metropolitan area, or of the statewide family median income if of a non-metropolitan area. Nebraska was eligible to nominate up to 44 census tracts. Gov. Ricketts nominated the state’s 44 Opportunity Zones on March 21, and the nominations were submitted to the US. Department of Treasury.

In other business, the council approved the purchase of a new bus. The bus is funded by Federal, State and local funds with the State and City responsible for 10 percent of the cost each. According to the memo from Transportation Supervisor Dave Doty, federally funded vehicles are to be replaced after four years or 100,000 miles. Doty said the City has a Dial-A-Ride bus that has been in use for 4 ½ years and has 85,000 miles. Delivery is expected to take three to six months. The City’s share, $6,000, is already budgeted. Doty said the oldest bus in the fleet will be offered at the next city auction.

The council also approved transferring a donation to the Cheyenne County Community Center foundation. The endowment was mistakenly routed to the City of Sidney instead of the Community Center Foundation. The endowment totals about $33,000.