County may consider tax for interstate businesses

Hall County supervisors seemed open to the idea of contributing keno money in the future to aid in the relocation of the Nebraska State Fair to Grand Island.

On Tuesday, they also directed Chief Deputy Hall County Attorney Michelle Oldham to research the county's ability to levy an occupation tax on businesses at the Highway 281/Interstate 80 interchange -- at the businesses' request.

Chuck Bosselman, president of Bosselman Inc., said he and Bill Marshall met recently and want to be a part of the State Fair project.

"We voluntarily want to go on record that we will let you tax us -- sales tax us, if you can implement a sales tax," Bosselman told the county board.

Bosselman Inc. has a truck stop and travel center at the Highway 281/Interstate 80 interchange. Marshall has a motel business there.

County board Chairman Bud Jeffries said the county doesn't have the legal authority to implement a sales tax. But it does have the authority to levy occupation taxes, such as a food and beverage tax being considered by the city of Grand Island to help with the State Fair.

Oldham said the county can also implement a lodging tax on motels and hotels, but she believes the county has already maxed that out locally. She'll research a county food and beverage tax, which would requires a public vote, and report back to the county board.

No such public vote is required for a city occupation tax on the food and beverage businesses.

Grand Island/Hall County Convention and Visitors Bureau Executive Director Renee Seifert has done some research on a county occupation tax and believed it could be implemented only outside corporate areas. That would mean the interstate businesses would be subject to the tax, but businesses in Grand Island, Alda, Doniphan, Wood River and Cairo would be exempt.

It's a tax plan that may capture the "visitor dollar" that the State Fair committee had favored.

"I'm very encouraged that Mr. Bosselman came forward and spoke in support," said Don Dunn of the local State Fair committee. "We have a lot of money that goes up and down the interstate every day."

Dunn, who also chairs the Grand Island Area Chamber of Commerce board of directors, said the overall budget to relocate the State Fair to Grand Island is $42 million. The local share of that is $8.5 million.

He stressed to county supervisors that the $8.5 million is the local share, but it's not a legal commitment.

"We didn't commit anybody's checkbook," Dunn said.

If the Grand Island community doesn't want the fair, the money simply isn't raised and the State Fair doesn't come, Dunn said.

Jeffries said he spoke with a local car dealer, who believed the extra traffic of State Fair attendees certainly couldn't hurt the local retail market. Jeffries said State Fair officials also reported distributing more than 900 W-2s to State Fair workers.

Supervisor Pam Lancaster said bringing the State Fair to Grand Island is a great way to upgrade Fonner Park's aging facilities. The community would get $42 million of upgrades at a cost of just $8.5 million.

The current proposal is for a new 100,000-square-foot temperature-controlled exhibition hall, a 50,000-square-foot temperature-controlled exhibition hall, a 100,000-square-foot livestock barn with adjacent temperature-controlled show arena, a 100,000-square-foot open-air barn/arena, two new 75,000-square-foot equine barns, a new maintenance shop, 14-acre midway area, new north/south road into the Fonner campus and three new parking areas, Dunn said.

Any local improvements to the Fonner campus, including the cost of water, sewer and electrical extensions and upgrades, count toward the community's $8.5 million contribution, Dunn and chamber President Cindy Johnson said.

The city is considering issuing a $5 million bond to help with some of those improvements.

Supervisor Bob Rye said anything positive has risks and challenges.

"We'll do the best we can," he said of help from the county.

While having the State Fair is a benefit, the real opportunity is beyond the fair -- the other 350 days of the year -- when the upgraded campus would be available for the community, Rye said.

Supervisor Scott Arnold said he favored using keno dollars as a "good start" to bringing the State Fair to Grand Island.

"We will do whatever we can. … However, we can't always do a lot," he said.

Jeffries feared the current county board may not be able to commit a future board by allocating keno dollars toward the State Fair, but the county is currently making annual payments of $150,000 from keno funds to the Heartland Events Center. Those payments end in fall 2009.

Dunn said he also asked the Hall County Agricultural Society, which runs the Hall County Fair, to consider raising its property tax levy to aid the State Fair. The improved Fonner Park campus will be a huge benefit to the county fair, he said.

Supervisor Dan Wagoner said he applauded the group's efforts, but his rural constituents are "cautious" about the State Fair project. They don't want to bear any financial cost of the fair, like they feel they have had to do with the Heartland Events Center.

Lancaster said, if Grand Island doesn't bring the State Fair to town, it will be left with an aging Fonner Park campus and few resources to make improvements on its own.