NE Chamber supports Community Improvement District legislation

LINCOLN, Nebraska — February 3, 2026 — Because Nebraska communities face infrastructure financing challenges that slow development, increase housing costs, and limit the ability of cities and villages to guide high‑quality growth, the Nebraska Chamber of Commerce & Industry today testified in support of LB1130 as a responsible and highly structured solution by authorizing Community Improvement Districts.
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CIDs are voluntary, property‑owner‑driven districts that finance public infrastructure improvements within municipal boundaries without creating financial liability for communities.

Nate McHargue, Government Relations Leader at Olsson, represented his organization, the Lincoln Chamber of Commerce, and the NE Chamber at the Nebraska Legislature’s Urban Affairs Committee in support of LB1130.

“LB1130 is a balanced, responsible, and locally driven tool that empowers communities, supports housing and industrial development, and strengthens Nebraska’s competitiveness—while fully respecting municipal authority and protecting school funding,” McHargue told the committee on Feb. 3. Olsson is a nationally recognized design firm based in Nebraska with over 2,400 employees across 11 states.

CIDs enable long‑term, tax‑exempt financing of public infrastructure, reducing upfront development costs and lowering the final price of homes and commercial lots, McHargue said.

They support redevelopment and infill by allowing property owners to reinvest in areas with aging or inadequate infrastructure. Municipalities retain full zoning, permitting, and regulatory authority, ensuring that every project aligns with local goals.

Beyond housing, LB1130 is also a significant tool for industry and commercial development, McHargue said. Nebraska employers—manufacturers, logistics firms, agribusinesses, and others—consistently identify infrastructure readiness as a barrier to expansion. CIDs help by enabling:

• Industrial site readiness: Roads, utilities, stormwater, and other public infrastructure can be financed upfront by the district instead of relying entirely on municipal budgets or private capital.
• Accelerated project timelines through coordinated planning with municipalities—critical when competing for regional and national investment.
• Lower initial capital outlays for employers, making Nebraska industrial sites more competitive by spreading infrastructure costs over 20–30 years using tax‑exempt financing.

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LB1130 sponsor Senator Mike Jacobson of North Platte said: “LB1130 would give communities across Nebraska a voluntary, locally controlled way to fund and deliver the infrastructure they need to grow, without relying on state dollars or shifting costs to the general taxpayer. It gives cities and property owners another tool to address local infrastructure needs while keeping decisions and responsibility local.”

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