Nebraska lawmakers say developer Woodsonia ‘tied’ to Grand Island ‘good life district’
LINCOLN – Because Woodsonia Real Estate is the state-certified applicant establishing the Grand Island wellness district, participation in this development district cannot simply be waived.
That’s the words of two prominent Nebraska lawmakers, based on a legislative staff attorney’s review of applicable laws.
Wellness zone boundaries on Grand Island. (Courtesy of Woodsonia Real Estate)
The comment, while not a formal legal opinion, was intended to address questions raised earlier this week when Woodsonia leaders revealed that Grand Island city leaders had stopped communicating with them and wanted a different developer.
Woodsonia leaders said they were “stunned” by the cold-blooded treatment. They said their company has invested about $2 million so far and has been planning a multi-use development project that includes a regional tournament-style sports complex and surrounding entertainment venues for about three years. They had support, at least initially, from Grand Island city officials.
Grand Island executives declined to comment on the situation this week. The city recently issued a “request for proposals” seeking a contractor to perform the tasks Woodsonia said that they have already started their half-billion-dollar “Veterans Village” proposal for the wellness area.
Woodsonia President Drew Snyder said he requested a meeting with the Grand Island City Council. On Thursday, after Woodsonia developers went public with their concerns, Snyder said he received an email from the Grand Island city manager stating Woodsonia would be placed on the mid-May city council agenda.
This is after requests for proposals are due.
Snyder said he would have preferred the city pause the request for bids process, but it appears that process is ongoing.
Omaha State Sen. Brad von Gillern, chairman of the Legislature’s Revenue Committee, who spearheaded earlier changes to the wellness legislation, said he had spoken to Woodsonia officials seeking state intervention.
Von Gillern found that the staff’s legal interpretation of the wellness zone law showed that the City of Grand Island could not exclude Woodsonia from the wellness zone development because it was the approved applicant.
Von Gillern’s comment was not a formal legal opinion or advice to any party, he said, adding, “There is no capacity or ability to transfer this applicant status under the statute…”
State Sen. Dan Quick of Grand Island said he believes all parties involved want the city’s wellness district to succeed.
Grand Island contains one of five state-sanctioned wellness districts governed by laws intended to create economic development projects that encourage tourism through state tax incentives. Lawmakers agreed to waive half of the state sales tax generated within a district’s borders for up to 30 years. The idea was that this revenue would be directed to help finance the development of unique projects within the region, which would pay off over time in tourism-related development and tax revenue.
Quick agreed with von Gillern.
“I believe that because they are the applicant, the dollars are tied to them as long as the project continues,” Quick said of Woodsonia.
Snyder said he saw the meeting with the Big Island City Council in May as a positive step. He said he is still “shocked” by the city’s recent actions and hopes his team can get the wellness district and project off the ground.
“Let us move forward,” Snyder said. “Let’s do the development the way we told the state of Nebraska to do it.”
