Grand Island’s selection as the new host community for the Nebraska State Fair is the result of a lot of preparation, debate, planning and hard work. With the move comes a financial obligation that is shared by a number of entities including Grand Island.

Of the total of $42 million to relocate the State Fair to Grand Island, our community is responsible for $8.5 million, while the University of Nebraska, the State of Nebraska and the Nebraska State Fair are responsible for the remaining $34 million. The graph below shows what percentages of the whole each entity is responsible for.

Under Legislative Bill 1116, Grand Island was required to have committed funds totaling $3 million by October 1, 2008. These funds were made available through a loan from Wells Fargo Bank. This loan will be repaid through the City of Grand Island’s Occupation Tax on food and beverage at sit-down restaurants, drive-thru restaurants, caterers and bars.

In addition, another $3 million was paid on February 1, 2009 utilizing the remaining occupation tax. The remainder of the letter of credit is secured by Hall County Keno funds and the Hall County Ag Society tax asking.

The final payment of $2.5 million will become due on July 1, 2009. These funds will be paid through:

• Private and Public Donations
• Naming rights for state fair buildings.
• Community Redevelopment Authority
• Lodging Tax
• Other

LB1116 required the University of Nebraska to make payments of $7 million on October 1, 2008, and again on February 1, 2009. The final installment of $7.5 million is due on July 1, 2009.

The State of Nebraska Share of $5 million was paid on July 1, 2008.

The final partner, the State Fair is required to have $7 million available to the project as needs require it.

The City of Grand Island will be the primary beneficiary of the new $42 million facilities. With increased demand for the facility, so too will the city realize additional revenues in the form of sales and lodging taxes from year-round visitors to Grand Island.