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Economic Development
The Grand Island Advantage
Incentives and Other Financial Resources for Business
Community Redevelopment Authority (CRA) Resources
The following programs can only be used in areas of the city that have been declared blighted and substandard. For a map of Grand Island’s blighted and substandard areas, click here.
Tax Increment Financing (TIF): Through this program, increased taxes on a project can be captured and after they are paid annually, the county treasurer will send the revenue to the CRA, which will use the funds to make payments on a bond issued as part of the redevelopment contract. This process takes between three and six months, depending on the project and if city council needs to consider declaring an area blighted and substandard prior to the TIF application. The typical cost for the entire process is between $7,500 and $50,000, depending on the project. Learn more.
Micro-TIF: These are small TIF projects involving a single property. This is a simplified form of TIF, requiring a $50 fee. Single family projects are limited to final valuation of $350,00 for commercial properties, while multi-family projects are limited to $1.5 million and historic projects are limited to $10 million. Applications are available from the Nebraska Department of Economic Development but are submitted to the CRA with the City of Grand Island. Learn more.
Facade Improvement Program: This is only available for commercial properties in Areas 1-6 of the city. It requires a match of $7 for every $3 received — and the applicant must work with an architect on the design. The CRA typically has about $300,000 available each year. Applications are accepted throughout the year. Grants are available on a first-come, first-serve basis and are typically awarded in October of each year. Learn more.
Other Sources of Funding
PACE (Property Assessed Clean Energy) Financing: This program aids developers that are making energy efficiency improvements to new or existing buildings. Upgrades are paid over time using a property tax assessment. The City of Grand Island facilitates this process by creating the assessment. Learn more.
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Railside Business Rental Assistance: This program may be used anywhere in CRA Area 1. It provides 80% of rent for up to six months. Learn more.
Community Development Block Grants (CDBG): The city receives approximately $400,000 annually in CDBG funding each year. This is federal funding. Applications are accepted in early spring of each year. These funds are designed to provide assistance to low- to moderate-income families, as well as businesses serving those families in Grand Island. Learn more.
Community Development Block Grant (CDBG) Re-Use Funds: The DDBG Re-Use Funds provide communities and businesses with resources to address a wide range of unique community development needs. Businesses expanding and creating employment opportunities for low-to-moderate income persons may be eligible to receive CDBG Reuse Funds. These grants are currently limited to $15,000 and based on the number of jobs created or retained. Learn more via the Grand Island Area Economic Development Corp.
LB840 Funds: LB840 funds are business recruitment/expansion funds provided by the City of Grand Island and its taxpayers. These funds are managed by the Grand Island Area Economic Development Corporation on behalf of the City. All applications are approved by the City Council. Learn more via the Grand Island Area Economic Development Corp.
Electric Utility/Water Utility
To encourage more single-family, multi-family, and commercial/industrial development, the City of Grand Island provides multiple incentives for building, rebuilding, and expansion. Some of these incentives are driven by the location of the development; others are available citywide.
Discounts for Primary Service: If Three-Phase Power energy is metered on the primary side (7.2 KV or above) of the service, a 3% reduction will be made in the energy billed. In addition, if the user owns and maintains all necessary transformation equipment and structures, a 5% reduction will be made in the demand billed. These discounts, however, do not apply to the minimum stated. Learn more.
Waiver of Demand Charge: For customers developing a new site, or significantly expanding an existing facility, the city’s utilities department may waive the charge on the incremental demand for the first 12 months of service. Customers developing a new site must have an anticipated load of at least 500 KW; these customers will have the entire demand charge waived for the 12-month period. Learn more.
Additional Resources/Events To Encourage Economic Development
Big Idea Grand Island - Encourages entrepreneurs to submit business ideas (Website)
Center for Rural Affairs – Small business loans for businesses that may or may not qualify for a traditional bank financing (Website)
State-Funded Invest Nebraska (Website) & Privately-Funded Proven Ventures (Website) are angel investors
South Central Economic Development District (SCEDD) offers revolving loan funds (Website)
State of Nebraska
Business coaching and mentoring
LB840 Funding
Local Option (LB840) is the primary incentive offered by The Grand Island Area Economic Development Corporation. LB840 is a cash payment made directly to your company based on job creation and training needs for your employees. A structured payment system is established between expanding businesses and the GIAEDC. Training incentives can be paid up front to jumpstart your business, while job creation incentives are an annual payment delivered over a three-year period of time. We are also capable of structuring a low interest and/or forgivable loan to meet your business's needs. You can see a full list of LB840 Funding Recipients HERE.
Eligible Activities
The Economic Development Program may include, but shall not be limited to, the following activities:
1) A revolving loan fund from which performance based loans will be made to non-retail qualifying businesses on a match basis from the grantee business and based upon job creation and/or retention, said jobs to be above the average wage scale for the community.
2) Public works improvements and/or purchase of fixed assets, including potential land grants or real estate options essential to the location or expansion of a qualifying business or for capital improvements when tied to job creation criteria or when critical to retention of jobs of a major employer within the community, which equity investment may be secured by a Deed of Trust, Promissory Note, UCC filing, personal and/or corporate guarantees or other financial instrument.
3) The provision of technical assistance to businesses, such as preparation of financial packages, survey, engineering, legal, architectural, or other similar assistance and payment of relocation or initial location expenses.
4) The authority to issue bonds pursuant to the Act.
5) Grants or agreements for job training.
6) Interest buy down agreements or loan guarantees.
5 Exhibit A to Resolution #2022-132
7) Other creative and flexible initiatives to stimulate the economic growth in the Grand Island area (activities which may be funded through the Economic Development Program or General Fund as authorized by Section 13-315 R.R.S.).
8) Commercial/industrial recruitment and promotional activities.
9) Payments for salaries and support of City staff or the contracting of an outside entity to implement any part of the Program.
10) Tourism related activities.
11) Reduction of real estate property taxes for City of Grand Island to stimulate local economy.
12) Direct loans or grants to qualifying businesses for fixed assets, working capital or both.
13) Grants or loans for the construction or rehabilitation for sale or lease of housing as part of a workforce housing plan of the City.
14) Grants, loans, or funds for early childhood infrastructure development.
Description of Types of Businesses That Will Be Eligible
A qualifying business shall mean any corporation, partnership, limited liability company or sole proprietorship that derives its principal source of income from any of the following:
1. The manufacturer of articles of commerce;
2. The conduct of research and development;
3. The processing, storage, transport, or sale of goods or commodities which are sold or traded in interstate commerce;
4. The sale of services in interstate commerce;
5. Headquarters facilities relating to eligible activities as listed in this section;
6. Telecommunications activities including services providing advanced telecommunications capability;
7. The production of films, including feature, independent, and documentary films, commercials, and television programs;
8. Tourism-related activities;
9. Construction or rehabilitation of housing;
10.Early childhood care and education programs; and
11.Any other activities deemed sufficient to establish eligibility for a Qualifying Business through future amendments to the Act, and incorporated into this Plan and the Program by ordinance of the City Council after amendment to the Act.
A qualifying business must be located within the City limits or the two mile planning and zoning jurisdiction of the City. Any exceptions to this policy must be approved by the City Council.
Qualifying business does not include a political subdivision, a state agency, or other governmental entity.
If a Qualifying Business employs people and carries on activities in more than one city in Nebraska, or will do so at any time during the first year after its application for participation in the Program, it shall only be a Qualifying Business if, in each such city, it maintains employment for the first two years after the date on which the business begins operation in the City as a participant in the Program at a level not less than its average employment level in the other city during the twelve months before participation in the Program.
To learn more about assistance opportunities and if your business is eligible, visit the Grand Island Area Economic Development Corporation website HERE.
You can also read the City of Grand Island Economic Development Plan.