Paloucek: North Platte learns about optimism | Chroniclers
The unicameral has just allocated $ 10 million over the next two years for the development of a “rail fleet” that could help finance direct access to Union Pacific rails, an irresistible attraction for rail companies. processing and logistics, at a site just east of Hershey.
In the past two weeks, K&M Tire Inc., a nationwide tire supplier, announced plans to open a 50,000 square foot distribution center in the Twin Rivers business park in North Platte.
Our recent experience suggests that economic development may be subject to its own version of the physical law of conservation of momentum. It is the concept that, in the absence of an intervening force, an object at rest tends to remain at rest and a moving object continues to move. Until recently, we knew a lot about the “object at rest” side of the dynamics of economic development. So what intervening force has sparked our economic snowball down the hill?
One undeniable factor is that North Platte has thankfully lost its reputation for being unwelcoming, to say the least, to projects that will seek funding through tax increases and other government incentives. Our civic leaders and citizens have come to realize the reality that the desired development often requires incentives that local government can provide that the “free market” alone cannot generate. The TIF may briefly divert the increase in property tax revenue generated by development to the developer to help pay for eligible expenses, but this minimal delay in government revenue beats the development devil that never occurs for lack of financial sustainability. .