Scottsbluff takes action to make another area eligible for TIF supported development

The Scottsbluff City Council has moved forward on designating an area in northeast Scottsbluff as blighted and substandard, making development projects in that area eligible for tax increment financing.

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The Scottsbluff City Council has moved forward on designating an area in northeast Scottsbluff as blighted and substandard, making development projects in that area eligible for tax increment financing. The council approved designating an area in the general vicinity north of U.S.

Highway 26 and south of East 20th Street, along Delta Drive and 25th Avenue, as blighted and substandard during its council meeting Monday. Scottsbluff City Manager Kevin Spencer first spoke about plans to designate the area near the former Scottsbluff Inn to Menards as blighted and substandard in May. The area hasn’t seen a lot of activity in recent years.



The degradation of the former Scottsbluff Inn is particularly generating interest in improvements in that area. “We want somebody to come in and build there, either fix it (the former Scottsbluff Inn) up or build new,” he told the Star-Herald. During Monday’s council meeting, he said that a developer has expressed interest in the area.

The Scottsbluff Planning Commission recently considered a study of the area and made a positive recommendation, Development Services Director Zachary Glaubius told the council during its meeting Monday. The area encompasses an area of about 43 acres in the proximity of 21st Avenue and Highway 26. During the study, signs of vagrant activity, including disposed clothing, alcohol bottles and other trash, were observed.

Forty percent of the structures in the area were described as badly worn and 20% were described as dilapidated and posing a threat to health and safety, including the former Scottsbluff Inn. Photos in the survey showed the poor maintenance of the former hotel and the adjoining Silver Saddle Lounge. Poor sidewalks, street, curbs and gutters were also among the infrastructure noted as needing improvements or development.

He explained that state statute allows a municipality to designate 35% of the city as blighted and substandard, as long as it meets certain parameters, such as undeveloped streets or other infrastructure, vacant or undeveloped properties. With the most recent designation, Scottsbluff will have labeled 32.29% of the community as blighted and substandard.

Tax increment financing can be used by developers to cover costs such as land acquisition, site preparation and public improvements. A common misconception is that property owners using TIF do not pay property taxes, however, that is not the case. An owner pays the property tax, but it is refunded for allowable costs.

Earlier this year, two other areas were designated as blighted and substandard. One recently designated area encompasses from Fifth Avenue to Circle Drive, and East 26th to East 27th Street. Scottsbluff residents will be most familiar with the former Applebee’s location and the adjoining businesses in the shopping center on Fifth Avenue within the designated area, but the area includes other commercial businesses, including hotels, office and professional spaces and apartment buildings.

A second area, roughly covers undeveloped areas from Fifth Avenue to Avenue D on West 36th Street, portions of West 38th Street from Avenue D west to Avenue B, West 40th Street from Avenue D to Avenue B, and areas along 37th Street, and Highway 26 from Avenue B east. A large part of the area being studied is commercial, including office and professional areas, though there are some areas in which residential and housing developers may have interest in continuing constructing new homes. Contact Maunette Loeks: maunette.

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