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LB 290

Change provisions relating to grant funding for a business park under the Economic Recovery Act

109th Legislature (2025-2026)

Directs up to $90 million in grants for developing a business park within inland port districts in metropolitan cities, prioritizing QCT-adjacent areas and implementing strict pre‑

Approved by Governor on May 30, 2025
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Bill Summary · LB 290

Summary — LB 290 (2025)

Title: Change provisions relating to grant funding for a business park under the Economic Recovery Act
Statute amended: Section 81-12,241, Reissue Revised Statutes of Nebraska
Introduced: January 15, 2025 (Urban Affairs Committee) — Approved by Governor: May 30, 2025

Main purpose

LB 290 revises the Economic Recovery Act’s grant rules to direct additional grant funding for development of a business park that is located within or adjacent to one or more qualified census tracts (QCTs) and also within the boundaries of an inland port district in a city of the metropolitan class. The bill replaces an earlier geographic requirement that a project be within two miles of a major airport.

Key provisions and changes

  • Amends section 81-12,241 to authorize up to $90 million in grants to a nonprofit economic development organization for development of a business park:
    • Must be within/adjacent to one or more QCTs and within an inland port district in a city of the metropolitan class.
    • Grant funds are prohibited for use in the downtown area or northern downtown area of such a city.
    • Innovation hubs (per section 81-12,108) are ineligible.
  • Preconditions and oversight before release of funds (beyond planning grant):
    • Grantee must provide a ten‑year financial pro forma and complete due diligence.
    • Grantee must hold two public input meetings.
    • A letter of support from the inland port authority managing the inland port district is required.
    • Grantees must attend all community advisory committee meetings (per §13‑3306.01).
    • Grantees must keep grant funds in a separate bank account.
    • Proceeds from lease/sale/purchase of business park real property must be used for the business park for at least 15 years.
  • Payment terms for grants under the section:
    • 50% advance up front; remaining funds paid monthly until paid in full or by Dec 31, 2026, whichever is sooner.
    • Division may require return of unused funds or reduce future payments by unused amounts.
  • The bill retains and clarifies other grant allocations under the Qualified Census Tract Recovery Grant Program (examples included in statute):
    • Up to $10M for QCTs in a city of the primary class; $10M for QCTs outside metro/primary class; remaining funds prioritized to QCTs in a metro class city.
    • Additional enumerated grants: up to $6M (internships/crime prevention), $5M (film project), up to $40M combined for affordable housing interventions ($20M metro / $20M primary class), $5M (county agricultural society), $1M (postsecondary financial literacy).
    • Definitions and eligible activities for preparing land parcels for affordable housing are provided in the statute.

Who is affected

  • Primary: nonprofit economic development organizations and developers proposing business park projects within inland port districts in metropolitan-class cities (e.g., Omaha).
  • Local stakeholders: inland port authorities, residents of adjacent QCTs, city governments, community advisory committees.
  • Secondary: entities eligible for other grants listed (nonprofits, postsecondary institutions, county agricultural societies, affordable housing developers).

Procedural/timeline notes

  • Committee hearing: Jan 28, 2025 (Urban Affairs). Committee advanced bill to General File.
  • Legislative action: Advanced through Select and Final Reading; Final Reading passed 31–18–0 on May 28, 2025.
  • Presented to Governor: May 28, 2025. Approved by Governor: May 30, 2025 (now law).
  • Effective operation: amends existing Economic Recovery Act grant program (section 81‑12,241) and supersedes the prior airport‑proximity criterion.

Potential impacts

  • Concentrates up to $90M in state-funded recovery grants toward business park development tied to inland port districts in a metropolitan city, with specific public‑input and financial safeguards.
  • Redirects the prior airport‑proximity emphasis to inland port geography, likely focusing investment on port‑adjacent industrial/logistics development and nearby disadvantaged QCT neighborhoods.

Compiled from official sources — confirm details with the bill’s official record.

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