County commits State Fair funding

Grand Island is now $1 million closer to bringing the Nebraska State Fair to town.

The Hall County Board of Supervisors Wednesday morning committed the first $1 million in public funds toward the community's $8.5 million share in the cost of moving the State Fair to Grand Island.

"That's huge," said Jay Vavricek, a member of the local State Fair committee who attended a county board budget session on Wednesday. "We can build on this."

County supervisors, who have been working on the county's annual budget, agreed to raise $1 million for the State Fair move through two sources.

The first half-million will be raised through an increase in the property tax levy for the Hall County Agricultural Society, which operates the Hall County Fair.

The second half-million will come from county keno dollars.

The ag society had asked for its existing property tax levy to be raised by 0.6 of a cent. That would have raised an additional $204,000 annually for improvements to Fonner Park, which is the site of the Hall County Fair and would also host the State Fair when it moves to Grand Island in 2010.

Supervisor Scott Arnold moved to support the full tax increase during budget talks Tuesday, but his motion failed for lack of a second.

He came back during Wednesday morning's budget work and moved for an ag society property tax increase of only half that size. The motion passed 4-3, with Supervisors Pam Lancaster, Jim Eriksen and Bob Rye voting no.

"It's not the $100,000, it's where it comes from that makes a difference to me," Lancaster said, citing her objection to a property tax increase.

"I support it, but I support it with the keno fund," Rye said.

Eriksen said he would only support a $50,000 contribution from property taxes.

"The amount isn't as important as to show support for the State Fair coming here," ag society member Duane Donaldson said.

The ag society formed 53 years ago and has never before asked for property tax dollars for capital improvements, he said. The fair has an annual operating levy, which would bring in about $152,000 next year, to run the fair. However, Fonner Park has borne all the maintenance costs of the fair buildings and grounds.

Donaldson said the Big Red Barn is more than 40 years old, and the county fair would need those improvement dollars to maintain existing buildings even if the State Fair didn't come.

But because it is coming, the tax increase could provide a portion of the $8.5 million that Grand Island needs to raise. The improvements to the fair site will help both the county fair and the State Fair, he said.

"It is a great asset that will come to Fonner Park and will benefit us and Fonner Park," Donaldson said. "And what's good for Fonner Park is good for Grand Island."

The increase in the ag society's property tax levy will generate $100,000 per year for five years, beginning with this year.

The second half-million will come from county keno proceeds. It will be raised over six years, beginning next year, when the county is on its final payment to the Heartland Events Center.

That final payment is a reduced payment of $100,000, down from the $150,000 a year the county had been contributing annually toward its $1 million contribution to the events center construction.

For the State Fair funding, the county would commit $50,000 in keno proceeds that first year, followed by four years of $100,000 and a sixth year in which the county would commit $50,000 in keno funds.

The final payment from keno funds would be completed in 2014, county board assistant Stacey Ruzicka said.

The board voted 5-2 to pledge the keno dollars. Eriksen and Supervisor Dan Wagoner voted no.

Eriksen said Wagoner said the county budget is very tight, and after making numerous cuts this year in critical areas, they questioned whether the county has the financial health to make such a contribution. Both alluded to the need for keno dollars to be used for road improvements.

"The State Fair is coming -- you can get behind it or get run over by it," ag society member Bill Leiser told the supervisors Wednesday.

As part of LB1116, which the Legislature passed earlier this year, the community of Grand Island faces a July 1, 2009, deadline for raising $8.5 million for the community's share of moving the State Fair to town. The first $3 million must be committed by Oct. 1, the second $3 million by Feb. 1, 2009, and the balance by July 1, 2009.