Proposed Blighted and Substandard Areas

The term “blighted and substandard” not a label placed on a neighborhood, but rather is a legal definition. Why these terms were used by the State is unclear, but what is clear is that the designation opens the door for stimulating new development, redevelopment, and allowing developers- in fact all citizens, the ability to make significant public improvements related to their projects. The mechanism allows property owners the use of real estate property taxes (normally paid to other government agencies) for improvements including land acquisition and site preparation. Tax money can be used up to 15 years for this purpose.

This designation allows the use of most of the new taxes generated by way of redevelopment. An owner pays the property tax but it is later “refunded” for the purpose of land acquisition, site preparation, and placing public improvements on the site. The program has worked well in Alliance with it most recently being used for the Holiday Inn Express, Scooter’s Coffee kiosk, Runza restaurant, and 385 Apartments. While the term “blighted and substandard” may seem objectionable, the results can be positive for the entire community.

The Nebraska Unicameral enacted legislation, often referred to as the “Community Development Law”, which addressed the existence of areas within communities that needed incentives to redevelop. These areas tended to be older and out of date. Oftentimes, spotty improvements have been made but the overall condition is not conducive to the expansion of existing businesses or attracting new development and investment. The Community Development Law enables cities to take steps to address various forms of decline through acquisition, clearance, and disposition of property for redevelopment, or through the conservation and rehabilitation of property.