Lawmakers support moving state fair to Grand Island
Posted: Friday, April 04, 2008
LINCOLN, Neb. (AP) -- The Nebraska State Fair is leaving its 107-year-old Lincoln home for Grand Island barring a change of heart by lawmakers.
The Legislature gave first-round approval Thursday to a bill (LB1116) that will put the fair in Grand Island by 2010, and hand the current fairgrounds to the University of Nebraska. The university plans to develop a cluster of public research facilities in hopes of attracting high-tech companies that will capitalize on the work of university researchers.
Lawmakers described the move as a fresh start for the fair, which has struggled in recent years, and a chance to nudge the state into an economy defined more by information technology and cutting-edge science than manual labor and manufacturing.
"It's time for a change, it's time for new ideas," said Sen. Tom Carlson of Holdrege.
The vote essentially ratifies a deal reached recently by the fair board, the university and Grand Island officials after weeks of discussions.
Moving the fair would cost an estimated $42 million, with $21.5 million coming from the university. Grand Island would pitch in $8.5 million for the move; the state, $5 million; and the fair board, $7 million.
While senators had many questions about the move -- including whether the state is obligated to pay more in the future, specifics of the university's plan for developing the research park and if Grand Island could draw a large fair crowd -- none threatened to derail the bill. It got first-round approval with a 44-3 vote.
"We've provided a site that's going to be successful in the eyes of all who have looked at this," said Sen. Philip Erdman of Bayard, who led negotiations that produced the deal. "I believe the outcome of this is probably ... better than any of us anticipated."
At points during the monthslong talks over whether and where to move the fair, the parties involved seemed to be at an impasse. Lincoln was the early favorite to keep the fair and also have the research park, with leaders there planning to move the fair to another site in the city.
"Lincoln not only got a fair chance, they had an advantage" in the race to decide who would get the fair, Erdman said.
But the plan from a group of wealthy Lincoln businesspeople and city leaders was considered too expensive for the fair board, and fizzled out.
Under the bill advanced Thursday, the fairgrounds would share space with Fonner Park and be owned, maintained and managed by the Hall County Livestock Improvement Association. The fair board would lease the fairgrounds from the association for $1 annually.
The university would take ownership of the current fairgrounds in Lincoln, but the $21.5 million it would contribute would not be to purchase the land. Rather, the money would help relocate the fair to Grand Island.
The current fairgrounds haven't been appraised but are insured for $57 million, according to Erdman. That amount represents the cost of replacing the fairgrounds and could be different than what it would be worth on the market.
Sen. Tom White of Omaha said there are several unanswered questions about the deal, including the appraised value of the land, how much money the university may ask the state to contribute to develop the research park and whether the university could sell the land.
The $21.5 million from the university will likely include private donations and proceeds from the sale of other land. Because it will not come out of the university's operating fund, the state will not be asked to reimburse the amount, said Erdman.
He added that under the deal, the university isn't guaranteed any more money from the state to develop the research park.
"If the university comes back and says, 'We need help with the site,"' Erdman said, "we won't be obligated to do that. We'd be doing it out of the graciousness of our hearts."
University officials have said the research park could include $300 million worth of new, public facilities and $600 million to $700 million worth of private facilities.
Some lawmakers say the development of the research park will cost the state much more than $5 million included in the deal to help move the fair to Grand Island.
"This is not going to be a $5 million appropriation; this is going to be multi-multi-multi-million dollar appropriations" in coming years, said Sen. Tom Hansen of North Platte.
He called the State Fair deal a "historic land grab for university research" at a time when it is unable to financially support what it currently has.
Others see it as a historic opportunity for the school and state.
"We can do the same things at this park we're doing at the University of Nebraska Medical Center," said Sen. John Harms of Scottsbluff. "The investment you're making with the $5 million you'll get back 10 times."
On the Net:
Nebraska Legislature: http://www.nebraskalegislature.gov
The Legislature gave first-round approval Thursday to a bill (LB1116) that will put the fair in Grand Island by 2010, and hand the current fairgrounds to the University of Nebraska. The university plans to develop a cluster of public research facilities in hopes of attracting high-tech companies that will capitalize on the work of university researchers.
Lawmakers described the move as a fresh start for the fair, which has struggled in recent years, and a chance to nudge the state into an economy defined more by information technology and cutting-edge science than manual labor and manufacturing.
"It's time for a change, it's time for new ideas," said Sen. Tom Carlson of Holdrege.
The vote essentially ratifies a deal reached recently by the fair board, the university and Grand Island officials after weeks of discussions.
Moving the fair would cost an estimated $42 million, with $21.5 million coming from the university. Grand Island would pitch in $8.5 million for the move; the state, $5 million; and the fair board, $7 million.
While senators had many questions about the move -- including whether the state is obligated to pay more in the future, specifics of the university's plan for developing the research park and if Grand Island could draw a large fair crowd -- none threatened to derail the bill. It got first-round approval with a 44-3 vote.
"We've provided a site that's going to be successful in the eyes of all who have looked at this," said Sen. Philip Erdman of Bayard, who led negotiations that produced the deal. "I believe the outcome of this is probably ... better than any of us anticipated."
At points during the monthslong talks over whether and where to move the fair, the parties involved seemed to be at an impasse. Lincoln was the early favorite to keep the fair and also have the research park, with leaders there planning to move the fair to another site in the city.
"Lincoln not only got a fair chance, they had an advantage" in the race to decide who would get the fair, Erdman said.
But the plan from a group of wealthy Lincoln businesspeople and city leaders was considered too expensive for the fair board, and fizzled out.
Under the bill advanced Thursday, the fairgrounds would share space with Fonner Park and be owned, maintained and managed by the Hall County Livestock Improvement Association. The fair board would lease the fairgrounds from the association for $1 annually.
The university would take ownership of the current fairgrounds in Lincoln, but the $21.5 million it would contribute would not be to purchase the land. Rather, the money would help relocate the fair to Grand Island.
The current fairgrounds haven't been appraised but are insured for $57 million, according to Erdman. That amount represents the cost of replacing the fairgrounds and could be different than what it would be worth on the market.
Sen. Tom White of Omaha said there are several unanswered questions about the deal, including the appraised value of the land, how much money the university may ask the state to contribute to develop the research park and whether the university could sell the land.
The $21.5 million from the university will likely include private donations and proceeds from the sale of other land. Because it will not come out of the university's operating fund, the state will not be asked to reimburse the amount, said Erdman.
He added that under the deal, the university isn't guaranteed any more money from the state to develop the research park.
"If the university comes back and says, 'We need help with the site,"' Erdman said, "we won't be obligated to do that. We'd be doing it out of the graciousness of our hearts."
University officials have said the research park could include $300 million worth of new, public facilities and $600 million to $700 million worth of private facilities.
Some lawmakers say the development of the research park will cost the state much more than $5 million included in the deal to help move the fair to Grand Island.
"This is not going to be a $5 million appropriation; this is going to be multi-multi-multi-million dollar appropriations" in coming years, said Sen. Tom Hansen of North Platte.
He called the State Fair deal a "historic land grab for university research" at a time when it is unable to financially support what it currently has.
Others see it as a historic opportunity for the school and state.
"We can do the same things at this park we're doing at the University of Nebraska Medical Center," said Sen. John Harms of Scottsbluff. "The investment you're making with the $5 million you'll get back 10 times."
On the Net:
Nebraska Legislature: http://www.nebraskalegislature.gov
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