By Tracy Overstreet
tracy.overstreet@theindependent.com

"It's time to finalize the funding," said Don Dunn, chairman of the Grand Island Area Chamber of Commerce. "We haven't come to any agreement or any conclusion. Where's the money coming from? It's the question we all have."

Former Grand Island Mayor Jay Vavricek said the local committee that bid to bring the State Fair to Grand Island "doesn't have the answers," but does have some ideas on how the money could be obtained.

Chamber President Cindy Johnson said it includes the cost of any new road and infrastructure that the city could contribute to development of the State Fair grounds at Fonner Park.

"Anything within the bounds of Fonner Park counts towards the $8.5 million," Dunn said.

That could include a new $600,000 north/south road with a roundabout proposed to link Stolley Park Road and Fonner Park Road near existing soccer and ballfields.

It could also include about $600,000 of electrical infrastructure needed to wire the proposed midway for the State Fair.

City Finance Director David Springer said the city and county could jointly issue a $5 million bond any bond larger than that would require a public vote.

Paying back the $5 million bond over 10 years would cost $615,000 annually. Paying it over 15 years would cost $425,000 a year. Annual payments over 20 years would be $375,000, he said

To make the annual bond payments, Springer said the county could contribute $150,000 of keno proceeds, the Community Redevelopment Authority could kick in $125,000 and the city's Local Option Municipal Economic Development Fund (LB840) could put in $125,000.

The remainder of the annual debt service could come from an increase on the occupation tax for local motels and hotels. A 2-percent tax would raise about $235,000 a year, he said.

The city could then apply for funds from LB551 the Local Convention and Civic Act. The city received $500,000 of those funds to help with the Heartland Events Center a few years back, Springer said.

Johnson said Grand Island could also ask the legislature for a "turn-back tax," such as what was used to help finance the Qwest Center in Omaha. A "turn-back tax" returns the state sales tax on lodging in a geographic area to the local government for a specific purpose. In Omaha's case, the sales tax on lodging within 450 yards of the Qwest Center was returned to Omaha to pay for the center, she said.

Dunn said about $1 million of private donations are also expected to be raised.

The Hall County Agricultural Society may also be able to raise its property tax levy.

All of that local money, plus another $33.5 million of outside funds pledged by the state and the University of Nebraska would be used to develop Fonner Park into a State Fair complex, Dunn said.

It would include a 100,000-square-foot exhibition hall, a 50,000-square-foot exhibition hall, a 100,000-square-foot enclosed livestock arena, a 100,000-square-foot open livestock arena, two new equine barns and a new maintenance shed. It also includes remodeling of the Fonner Park concourse and grandstands and the removal of the Big Red Barn and 10 horse barns original to Fonner in 1953.

"The maintenance (of the new buildings) is solely the responsibility of Fonner Park, and Fonner Park must give up the entirety of Fonner Park during the duration of the State Fair," Dunn said.

But Grand Island and Fonner Park would get to use the new buildings and infrastructure the remainder of the year

"This is a 107-year opportunity," Dunn said.

The 107-year-old State Fair is moving out of Lincoln to make way for a University of Nebraska research and innovation park on the current State Fair grounds.

Grand Island's $8.5 million doesn't have to be "in the bank," Dunn said. It needs to be "legally available" by set deadlines. A total of $3 million must be secured by Oct. 1. Six million must be raised by Feb. 1, 2009, and the full $8.5 million has to be committed by July 1, 2009.

That means the city could include funds in the 2008-09 budget and that would constitute the money being "legally available."

The city also needs to match 10 percent of the state lottery proceeds that come to the State Fair. It's about $200,000 a year, Dunn said. City officials believe increased activity from the State Fair will result in an increase in sales tax that could serve as the match money.

"The community of Grand Island must come up with $8.5 million or the State Fair doesn't come to Grand Island," Dunn said. "The city has to be a player in that or it won't happen. The county has to be a player in that or it won't happen.

"If we don't meet that, all bets are off and the fair doesn't come to Grand Island," he said.

Hornady said it's time to "roll up our sleeves and get to work."

She advised the city council that many study sessions will be set this spring to work out the details of the State Fair.

"I'm excited about the opportunity and amazed you could make it happen," Councilwoman Peg Gilbert told Dunn, Vavricek and Johnson.

"Sometimes you have to dream. Now we have to put it in reality," Vavricek said.