Good Life District – Special Election

An area of approximately 2,000 acres generally south of Gretna Crossing Park. A map of it is posted on the City’s website. The Good Life District is not a separate entity, it does not have its own board or powers, and does not operate separately from the City or any other political subdivision. As of today, the Good Life District is only a geographic area with a reduced State sales tax rate. For the portion within the City limits, the State’s sales tax rate has been reduced from 5.5% to 2.75%.

The Good Life District may be expanded in the future by request from the original applicant or by the City of Gretna. Any change in boundaries of the Good Life District would need to be approved by the Nebraska Department of Economic Development. The Good Life District in Gretna is expected to exist until February 2054, which is 30 years after the State approved Gretna’s Good Life District.

The City has established an Economic Development Advisory Committee to advise the Mayor and City Council on the Good Life District development and potential incentives. The Committee’s first meeting was held on June 12, 2024, at City Hall. The City has also hired national finance and economic development experts to assist it with establishing processes to evaluate proposed developments, finances, and stability of a Good Life District incentive program.

The City Council expects to rely on the advice provided by the Committee and the City’s advisors for all proposals submitted to the City for development in the Good Life District.

The short answer is that just reducing the State sales tax rate doesn’t help as much as originally expected by the Legislature in 2023. In 2024, the Legislature gave cities like Gretna a funding mechanism to realize the full benefit of the 2023 legislation and spur economic development – but it requires voter approval.

In 2023, the Legislature decided to lower the State sales tax rate in Good Life Districts to promote and develop the economy of the State and its communities, and believed that lowering the State sales tax rate would provide support for unique Nebraska projects that will attract new industries and employment opportunities and further grow and strengthen Nebraska's retail, entertainment, and tourism industries.

In 2024, the Legislature determined that cities like Gretna were unable to effectively assist the development within Good Life Districts under existing law, so the Legislature enacted the Good Life District Economic Development Act. This legislation promotes local economic development in Good Life Districts, authorizes new sales tax and occupation tax powers for the City that can be tailored to meet the needs of the local community and benefit the State. Without this new legislation, the Legislature determined that development within Good Life Districts would fall short of reaching its full potential as intended by the original Good Life District legislation in 2023, and thereby result in lower sales tax revenues for the State.

But first, voters must weigh in on whether to allow the City to establish a Good Life District Economic Development Program and impose such sales tax and/or occupation tax.

In 2024, the Legislature authorized the City to establish a local “replacement” sales tax and/or occupation tax for a new Good Life District Economic Development Program, so the funding can be utilized for development costs anywhere in Gretna’s Good Life District. The legislation gives the City broad authority over how those funds are used locally in the Good Life District.

Voters must first give authority to the City to establish the Program and establish “replacement” sales taxes and/or occupation taxes.

With voter approval, Gretna may establish a Good Life District Economic Development Program for the portion of the Good Life District within the City – both that portion now located in the City, and expanding into other parts of the Good Life District if the City annexes more of that territory. Gretna may impose either or both of the following for the Program within the portion of the Good Life District inside the City limits:

• Local option sales tax of 2.75% (to replace the sales tax given up by the State).
• Occupation taxes, similar to the occupation tax currently imposed at Nebraska Crossing Mall.

These sales and/or occupation taxes are in addition to the City’s 2% sales tax, which will not be reduced in the Good Life District because of the Program. The City’s existing 2% sales tax will remain in the City’s control, just as it is today. One additional feature of the 2024 legislation is the City could decide to dedicate a portion of the City’s 2% sales tax collected in the Good Life District if determined beneficial to the City.

The Program tools and authority given to the City by the Legislature will give the City additional flexibility for how this important Program is managed for the full 30 years of the Good Life District to benefit not only the City of Gretna, but the State of Nebraska as well.

Based on publicly available information and news reports, the City understands there are developers considering retail, youth sports facilities, hotels, entertainment, office and residential uses, recreational interests, and more within Gretna’s Good Life District.

Without the Program, the Legislature determined that development within Good Life Districts would fall short of reaching its full potential as intended by the original Good Life District legislation in 2023. That’s because the City’s existing tools are less effective than the Program would be in utilizing the sales tax given up by the State. If the Program is not approved, development in the Good Life District would likely continue, but the City could be asked to utilize more of the City’s own resources resulting in scaled down development and lower tax revenues for the City to utilize in the future.

Benefits from the Program, if approved by the voters, will not be limited to the applicant or any other one developer or property owner in the Good Life District. Every property owner and developer in the Good Life District (inside the City limits now or after annexation) will be able to apply for benefits from the Program. Also, the City will have the authority to utilize funding in the Program for public infrastructure costs in and related to the Good Life District.

If the voters approve the ballot question, the City will adopt a program ordinance to govern the Program. The program ordinance will include requirements, guidelines, and expectations for every developer and property owner to meet in order to access Program benefits. Because the Good Life District was established with certain goals of the State in mind, not every development idea or plan will be approved for benefits from the Program. The City and its advisors, including the new Economic Development Advisory Committee, will evaluate proposals to determine whether development ideas are consistent with the Legislature’s vision for the Good Life District and the set of projects included in the application for the Good Life District, viability of the development concept, the necessity of providing benefits for a particular project, and similar criteria which are features of programs like this in other parts of the country.

There are many property owners within Gretna’s Good Life District, and many possible development ideas in the area. Neither the City nor any one property owner knows exactly how development in the Good Life District will proceed and what will be constructed.

The Legislature made sure the Program being considered by the voters remains available to any property owner or developer in the Good Life District who meets the Program requirements established by the City. The City expects to use the Program as intended by the Legislature: to help spur the type of transformational development envisioned for the Good Life District, and by the State when it approved Gretna’s Good Life District.

Yes, the Good Life District takes nothing away from existing property owners’ rights, it only adds the availability of a new incentive. And any property owner not wishing to take advantage of the Program incentives is free to develop (or not develop) their property without regard to the Good Life District, subject to the City’s zoning rules and other similar restrictions which the City has had for years before the establishment of a Good Life District.

One important note for a property owner wishing to take advantage of the benefits of the Good Life District is that property can be removed from the Good Life District by request of the original applicant under limited circumstances, but only after a public hearing and evaluation of the reasons for such a request by the Nebraska Department of Economic Development. A number of different factors must be present for any removal, but one requirement is that removal of the property must be consistent with the goals and purposes of the approved application for the Good Life District.

This provision is intended to provide incentive for property owners and developers to pursue development ideas that are generally harmonious with the concept of the good life district and the ideas brought forward by the original applicant.

No City property taxes are permitted to be levied for the Program, and the City is not permitted to appropriate any City property taxes to the Program. Further, the City is not permitted to appropriate any City sales tax collected outside the Good Life District to the Program.

The rules for approval of Tax Increment Financing under the Community Development Law have not changed and will continue to operate separately from the Program being considered by the voters.

There is nothing in the Good Life District statutes that impacts the school district or school district funding. The school district might be impacted by tax increment financing, but that is always the case and not unique to the Good Life District.

While the Good Life District is supposed to draw many new people to Gretna, most are expected to be short term visitors from outside of Gretna and many from outside of the State who come to enjoy the shopping and other experiences offered within and around the Good Life District. In fact, in order for the Department of Economic Development to approve the application for Gretna’s Good Life District, the applicant had to demonstrate that the Project will attract New-to-Market Retail to the state and will generate a minimum of three million (3,000,000) visitors per year.

City costs attributable to operating the Good Life District Economic Development Program are payable from Program funds (sales tax and/or occupation tax revenues), which means City property taxes or other City funds are not expected to be impacted by operating the Program being considered by voters.

The State’s goal of increased sales tax through establishing the Good Life District should also help the City. The City’s existing 2.0% City sales tax will remain in effect for the Good Life District, which means any enhanced sales tax revenues would likely benefit the City’s finances more broadly, in addition to the City’s costs of operating the Program being covered by Program revenues. And as mentioned earlier, one feature of the 2024 legislation would allow the City to dedicate a portion of its 2% sales tax collected in the Good Life District to the Program if determined beneficial to the City.