Omaha is a 'Business town' from the Omaha City-Weekly..

[Omaha Cowboy]

City-Weekly columnist Jeff Beals writes another insightful column making the point that Omaha's greatness does not lie within some geographic feature unique to our city (i.e. Denver has mountains), but rather because of it's citizens..Making Omaha a great business town..

The Jeff Beals piece:

'Business Town
Like it or not, Omaha is a “business” town. Some places are “beach” towns. Other communities are “ski” towns, “snow-bird” towns or “college” towns. Upon finishing graduate school, I lived in Santa Fe, New Mexico, which was definitely a “tourist” town. Most state capitals could be called “government” towns. Washington, D.C. is a “federal” town.

There are no mountains or beaches in Nebraska’s largest city. The weather is either too hot or too cold depending on the month. The seat of state government is located 60 miles southwest in Lincoln, and while Offutt Air Force Base is the area’s largest single employer, Omaha’s economy does not rely disproportionately on federal-government spending.

Despite what we are not, Omaha is a great place, a wonderful city, which is improving on a daily basis. But the reason for our greatness has nothing to do with some geographic feature, which draws tourists. It has nothing to do with a guaranteed supply of public-sector jobs. Omaha is great because of its people and the things those people create. One of our most important creations is a vibrant economy and the good jobs that go along with it.

Omaha has benefited mightily from its strong business community. Our unemployment rate and cost-of-living are both low. Our per capita household income is higher than the national average. While the business community is far from perfect, it contributes directly to our quality of life. When visiting Omaha’s museums, performing arts facilities and world-class zoo, one will see local corporate names all over the place. To make Qwest Center Omaha a reality, supporters were able to raise $75 million in a month from the local business community, a feat that amazes leaders in other cities. There’s no doubt about it: there are benefits that come from living in a “business” town.

While things are good in the Big O, we must be careful to avoid complacency, for there are storm clouds on the horizon that threaten our economy, and consequently, our quality of life. Over the past few years, we have become a little intoxicated on our own civic success. We have watched our skyline grow up and have proudly embraced the redeveloped Riverfront. We have expanded freeways and more restaurants and retailers than we can count. Luxury condos are going up downtown and “McMansions” are covering the hills of west Omaha.

As we have enjoyed this progress, we have taken our eye off the future. While we have been basking in our glory, other states and municipalities have worked harder to make their business environments more competitive than ours.

Nebraska is in a battle with every other state, especially those in our region, to attract and retain jobs. Back in the 1980’s, Nebraska’s economy was reeling. The brain drain was flowing as the farm economy struggled. Nebraska’s cities were stagnant. Enron, one of Omaha’s largest employers, abandoned the city for a more lucrative deal in Houston. Across the state, there was a feeling of economic malaise. As a high school senior in 1987, I can remember talking with my friends about getting the heck out of Nebraska.

In a period of economic crisis, the people of Nebraska took action. After the Nebraska Unicameral passed Legislative Bill (LB) 775 in 1987, the Cornhusker state suddenly had some of the most desirable business incentives in the nation. Under LB 775, companies that created at least a minimum number of jobs and invested a certain amount of capital qualified for state tax credits.

The result of LB 775, and some accompanying economic development bills, was a sustained period of growth. On the February 26, 2005 episode of Grow Omaha, local attorney, Nick Niemann, the principal designer and drafter of most of Nebraska’s business tax incentive programs, said LB 775 initiatives have resulted in more than 70,000 new jobs and $15 billion of investment from more than 500 expansion and relocation projects.

However, the pace of business expansion has slowed recently. Nebraska’s business incentives are now 18 years old and patently out of date. A recent KPMG study commissioned by several chambers of commerce in Nebraska compared this state to nine other states, the six that border us plus Minnesota, Oklahoma and North Carolina.

The results were not good. Without its incentive program, Nebraska ranked dead last in most economic development categories. Even with the existing incentive programs, Nebraska consistently trailed Minnesota, Kansas and Missouri. Several other states ranked above us in certain categories. While Nebraska does have a number of strengths, Niemann cited several weaknesses in the state’s economy:
Poor overall business climate;
Poor tax climate;
Uncompetitive economic development tools;
Lack of venture capital and entrepreneurial resources;
Lack of job-training funds;
Bureaucratic regulatory environment;
Uncompetitive image.

Not all is gloomy, however, because problems create opportunities. While we can’t build mountains and oceans, we do have the power to improve our business climate. Three legislative bills, together known as “Advantage Nebraska,” are in front of the Unicameral now. If legislators approve the three bills, Nebraska will again become one of the most competitive states in region.

The first bill, LB 716, would improve Nebraska’s workforce by encouraging and funding the training and education that is essential in attracting manufacturing jobs. According to lobbyist Natalie Peetz, also a recent guest on Grow Omaha, Nebraska’s peer states dedicated an average of $13 million annually to job training. Nebraska committed only $600,000, just five percent of the regional state average.

LB 716 would create the Advantage Nebraska Workforce Training Institute within the State Department of Economic Development. The program would provide custom training programs to ensure Nebraskans have the skills they need to compete for job opportunities. The program would focus especially on manufacturing and technology training.

A second bill, LB 695 would improve Nebraska’s ability to recruit and retain industrial jobs by exempting manufacturing equipment from sales and use taxes. Advantage Nebraska’s literature claims that 13,500 manufacturing jobs in Nebraska have disappeared since June 2000. Nebraska is one of only 13 states that currently tax manufacturing equipment. By reversing this uncompetitive policy, Nebraska will stand a much better chance to not only attract new manufacturers but to encourage existing ones to expand.

Finally, LB 646 is the proposal that will actually update the old LB 775. This improved bill would use a performance-based formula to stimulate economic activity and increase net revenues for Nebraska. LB 646 would allow smaller companies to qualify benefits. It would do more to help Nebraska’s rural areas, while still providing the incentives that Omaha needs to bag the big corporate elephants.

I am convinced that all of Nebraska (and Omaha especially) will see a flurry of economic development activity if these bills pass. Corporate headquarters, regional offices and manufacturing plants will come. The jobs they create will generate great opportunities for our future. Omaha will be infused with new creative energy as college graduates from around the region flock here to start their careers.

Some Omaha people acknowledge that the state’s economy is lackluster but that Omaha is thriving. While it is true that Omaha has been on a roll, there have not been as many economic development announcements lately. Our labor force is not growing as fast as it once did. What’s more, think of how successful this Omaha could be if our state’s business climate was competitive!

Regardless of one’s political ideology, it is important that we all work to build the economy. In this day and age, business incentives are a critical part of the game. Almost 93 percent of corporate executives say incentives are “important” or “very important” when deciding where to locate their businesses. We must fight hard if we are to maintain what we have, let alone achieve what we deserve. Nebraska and Omaha have to do what it takes to stay in the game. This state and its largest city are full of talented, competitive people, so let’s win the economic development battles of the future. After all, we’re a “business” town, not a “tourist” town.'..

..Ciao..LiO....Peace

[Omaha Cowboy]

Moral of the story (or piece that is)..

Support LB716, LB695 and LB646..

Good for Nebraska..Good for Omaha..



..Ciao..LiO....Peace

[edsas]

Great piece. I agree completely.

[projectman]

Nebraskans for Peace, or whatever they are called, the ones opposing these bills, could make Nebraska real peaceful for the animals if everyone leaves because all the new jobs go bye bye. I would like to see what they have proposed as an alternative to these bills that they claim are giving away the farm to the large corporations. Nebraska needs these incentives to help more companies, jobs and people move here. Because the people aint gonna come for the scenery.

[OmahaDevelopmentMan]

Good article. I hope those pass, the result could be great for Omaha.

[DTO Luv]

I wisk we could bread away from the state so we don't have to worry about things like this not passing for us.

[Coyote]

I wisk we could bread away from the state so we don't have to worry about things like this not passing for us.

Is this like leaving a trail of bread to find our way back?

[DTO Luv]

I even spelled wish like wisk.

I wish we could break away from the state so we don't have to worry about things like this not passing for us. That's butter.. I mean better.

[OmahaRules]

Are they voting on these now? Should we call our state legislator and express our interest in these bills?

[Omaha Cowboy]

Posted by OmahaRules:

'Are they voting on these now? Should we call our state legislator and express our interest in these bills?'..

All 3 are before the Unicameral now and ABSOLUTELY..I'd write, email or call your state legislator and express your suport for these bills..

..Ciao..LiO....Peace