Erdman Edition: Future of the Fair is bright in Grand Island

The Legislature has advanced LB 1116 to Final Reading. This bill facilitates an agreement between the State Fair Board, University, and Grand Island to relocate the State Fair to Fonner Park in Grand Island. The relocation permits the existing state fairgrounds to be utilized as a research campus by the University, after the improvements needed for a successful fair have been built in Grand Island.

Specifically, LB 1116 declares the intent of the Legislature that the State Fair shall be held at Fonner Park in Grand Island no later than 2010. The University of Nebraska has pledged $21.5 million, the city of Grand Island $8.5 million, the State Fair Board $7 million with the State of Nebraska contributing $5 million. The bill contains safeguards and benchmarks to ensure these commitments are met before State Fair Park would be transferred to the University by December 31, 2009.

The source of the University's contributions is from private sources such as donors who support the University's Innovation Campus and/or the sale of other University assets. Likewise, the city of Grand Island's contribution is expected to be raised from private donations, grant funds and other revenue sources. The State Fair Board's contribution is from money it has already set aside for capitol improvements and from operating revenues of the Fair Board. The state's $5 million contribution is made out a transfer from the Cash Reserve Fund and does not reduce or affect the budgets of any other program.

LB 1116 is the result of the negotiated solution of the affected parties. This solution ends an exhaustive study which lasted over a year. The Agriculture Committee began this process with no preconceptions that the fair should be moved at all or if moved what alternative location offered the best prospects for long-terms success. Throughout, all members of the committee held to the principle that the Fair should not be evicted. It was important to us that any relocation should be by negotiated agreement that provides new opportunities for the Fair to be successful. That was accomplished through this proposal.

During this process, it became clear there were three viable solutions; the fair could remain at State Fair Park, the Fair could co-locate at the Lancaster County Fairgrounds in East Lincoln, or it could move to Grand Island. All three of these options offered opportunities for the fair but also presented obstacles; most notably the costs of improvements needed to upgrade the site. For example, if the fair remained at State Fair Park, $30 million or more of improvements were needed and the Fair would still be hindered with the costs of maintaining its aging infrastructure. Similarly, relocating the Fair to Lancaster County Fairgrounds required the State Fair Board to take on substantial debt to finance new construction. While relocating to Fonner Park in Grand Island was the least cost option it allows the Fair to take advantage of excellent existing facilities present there. The livestock and exhibition space to be built, combined with the Heartland Events Center, the grandstands and livestock facilities in place will provide the Fair Board a site for the Fair with over $100 million of capitol improvements, most of which will have been built within the previous five years. Additionally, the Fair Board avoids the considerable expense it currently incurs for facility maintenance, including $1 million per year budgeted for depreciation.

LB 1116 answers the question on the location of the Fair and will end a decade long conversation on the future of the Fair. This is an agreement between the Fair Board, the University, Grand Island and the State of Nebraska. It is a solid foundation for State Fair and the University to advance the future of their institutions.

The Legislature is nearing the end of the session and many major issues await debate. I welcome your opinions, insights, and comments. Please contact me at my Lincoln office either by mail: Sen. Philip Erdman, District 47, P.O. Box 94604, Lincoln, NE 68509-4604; by email: perdman@leg.ne.gov; or by phone: (866) 800-7445.