Sidney Nebraska Economic Development

SIDNEY / Cheyenne County

OUTLOOK 2008

Prepared by Gary Person (August 2008)

Sidney, NE City Manager

Sidney/ Cheyenne County Economic Development Director

The City of Sidney, Cheyenne County and the Cheyenne County Chamber of Commerce have provided a consolidated economic development partnership from 1991-2008 that has resulted in unprecedented growth and strong momentum heading into the future. Economic indicators surged significantly upwards and the 2008 economic demographics indicated the Sidney area has one of the strongest economies among Nebraska=s first class communities. We look for the trend to continue strong in coming years. Numerous expansion plans are underway by the industrial, business and residential sectors of the community despite a gloomy national economic forecast. Through eight months of 2008, Sidney=s building permits are at a record $36.1 million.

Sidney was named one of the TOP 100 Rural Communities in America for communities under 50,000 population by national economist and author Jack Schultz, who featured Sidney in his book ABoom Town USA@. This was based on a community and economic development analysis. Sidney is officially recognized as one of only 16 communities in Nebraska with a Certified Economic Development Community status by the Nebraska Diplomats.

The 17 year span from(1991-2008) saw $350 million in new community and economic development projects completed in the Sidney area creating a pro-business atmosphere where the economic indicators blossomed to record levels. The annual average wage income soared to the number one position of the 300 miles stretching over the 65 western Nebraska counties west of York. Cheyenne County now ranks in the top 5 counties for per capita wages for the state.

Many successful companies dot the Sidney landscape, with Cabela’s (World’s Foremost Outfitter) continued commitment to growth and success serving as the catalyst. Sidney leads all western Nebraska communities in population growth since 1990 and the smaller agriculture based communities in Cheyenne County are also seeing positive gains in population unlike most of their rural neighbors. The Sidney area economic development efforts have become the economic engine that is driving the well-being of the southern Panhandle and northeastern Colorado.

Building permits have averaged $15 million a year over the past 11 years, which compares to a $3 million average annually the previous decade. For 14 consecutive years the local economy hit or exceeded the $10 million permit economic barometer. The 2008 current total is an all-time record $36.1 million with four months to go.

Sidney has always enjoyed location advantages sitting on the east-west Interstate-80 (San Francisco to New York), north-south U.S. 385 (Canada to Mexico), east-west U.S. 30 and Highway 19 from the Colorado front rage; along with the two major railroads - Burlington-Northern Santa Fe and Union Pacific, which cross paths at Sidney and are connected by Sidney and Lowe Railroad.

Approximately 50 percent of the work force for Sidney’s 6,400 jobs commutes here from neighboring communities in a 60 mile radius. Much effort has went into this as 20 new housing subdivision developments moved forward in recent years. The Washington Post in 2005 pointed out that Sidney had more job opportunities per capita than any community in America. Sidney’s booming economy was also featured on the front page of the Wall Street Journal in 2002 and by national economist Jack Schultz in 2008, ranking Sidney in his Top 5 for jobs per capita.

The past 17 years brought diversification to the area economy with manufacturing and trade growth and interstate commerce development that helped offset the ups and downs of the agriculture sector. While the growth of the mid 1940's and 1950's were significant in the Sidney area due to the construction and operation of the Sioux Army Depot; the discovery of oil and gas; a strong farm economy and the eventual implementation of the Minuteman Missile system in the 1960's, those economic boosts eventually dwindled or suffered downturns. These were factors influenced by outside sources - the federal government and mother nature.

The private sector (home grown entrepreneurs and recruited industries) economic base that was established in the 1990's and continued to expand in the current decade has proved to bring more balance and stability to economic progress for many years to come. Since the formation of the City of Sidney / Cheyenne County Economic Development partnership the Sidney area economy has seen:

* Retail sales tripled. Taxable sales increased each year from $46 million in 1990 to $150 million in 2007. Sidney led all major Nebraska communities in retail growth during this time. Adding those retail sales that are non-taxable, approximately $200 million in annual sales occurred in Sidney in 2007, which ranks at the top on a per capita basis for Nebraska communities. With the local option sales tax, SIDNEY has $2.5 million annually now goes towards property tax relief, community development organizations and projects and economic development job creation incentive programs.

* Lodging revenues rose dramatically from $1.1 million annually to $6 million in 2007 Motel rooms increased from 220 to 550 during the decade and a Holiday Inn conference center was built and helped land approximately 600 regional and statewide conferences in the past 12 years here. A local lodging tax is overseen by the Cheyenne County Visitors Committee, for tourism promotions. A new Visitors Center on the I-80 corridor opened in 2008.

* Building permits have totaled $10 million, $10 million, $16 million, $12 million, $20 million, $14 million, $11 million, $13 million, $10 million, $11 million, $16 million and $36.1 million respectively the past 11 years, setting an all-time record this year. There has been over $165 million issued in building permits the past decade compared to $75 million in the 1990's and $27 million in the 1980's.

* Employment growth in the private sector climbed by 85 percent from 1980-2005, according to the Nebraska Department of Labor. The Department of Labor said in Cheyenne County had 6,400 jobs and less than 2 percent unemployment. A Target Industry Study conducted in 2003 by the nationally known research firm of Deloitte-Touche-Fantas for the Nebraska Department of Page 3 - Sidney / Cheyenne County Outlook 2008

Economic Development ranked Cheyenne County #1 among the state’s 93 counties and Sidney #1 among the state’s 531 communities for “most jobs per capita!”

* Valuation of commercial and residential properties in the City of Sidney nearly tripled from 1987 to 2007 spreading the tax base over a larger area. Total valuation in 1987 was $119 million. That figure rose to $332 million in 2007. Valuation in Cheyenne County rose to an all-time record level of $830 million in 2007 compared to $350 million in 1987.

* The 2007 overall tax rate is now $2.32 with the addition of a $16 million school bond issue to build a new high school in Sidney. While it bumped the overall tax rate (school, county, city, natural resources district, wncc, esu, etc.) it is still less than a decade ago when it was $2.60 cents per $100 of value in 1996.

* Housing starts jumped significantly in the past decade. In 1989 there was only 1 housing permit issued in all of Cheyenne County, followed by 2 permits in 1990. The subsequent years, housing units built in Sidney included 1991 (8), 1992 (14), 1993 (24), 1994 (22), 1995 (15), 1996 (37), 1997 (60), 1998 (67), 1999 (40), 2000 (18) 2001 (51) 2002 (17), 2003 (38), 2004 (22), 2005 (29), 2006 (55), 2007 (41). As mentioned earlier 20 new housing subdivisions were created in the past 15 years. Additional housing development is the key to future growth to keep up with job creation. Sidney was one of three Nebraska communities selected in 2007 for a $1 million New Neighborhoods Initiative grant to help build more affordable work force housing.

* Traffic patterns on the three major arteries leading into Sidney - Interstate-80, U.S. 385 and Highway 19 off the front range of Colorado - increased by 154 percent since 1988. Total vehicles on those three main arteries totaled 6,680 per day in 1988. By 2004, the latest year that traffic statistics are available, that total escalated to over 17,000 per day. If each vehicle represents 2.5 people, approximately 15.5 million people annually travel to Sidney on those highways each year.

All of these statistics are strong indicators of economic strength of the Sidney area. Agriculture has also had major production price gains the past couple of years. The community=s emphasis to diversify by adding emphasis on the industrial sector and interstate development over the past 20 years has helped strengthen riding the highs and lows of other sectors of the economy.

The 1997 citizens’ 92 percent "yes" vote to establish a Sidney Economic Development Plan and allocate $2.5 million in development incentives for future expansions in the community, continues to pay dividends to the area. This was the highest favorable vote on an economic development plan in the history of the state of Nebraska for any community. This plan was renewed by Sidney voters in 2007 for another 10 years, allocating $3 million. Nebraska adopted a new economic development incentive plan in 2005 known as the Nebraska Advantage Act and the combination between the state / local incentive package along with Sidney’s experience with Redevelopment Project and Tax Increment Financing makes our community very competitive with other expanding industry markets.

Eight times in the past 17 years, Sidney was named the “Nebraska Community of the Year” by various statewide organizations, including the Nebraska Diplomats, Nebraska Department of Economic Development, Nebraska Municipal Power Pool, Municipal Energy Agency of Nebraska, Nebraska Community Improvement Program and Nebraska Department of Aeronautics.

As the atmosphere was created to enhance business and industry developments, area industries found the local economy conducive for growth and expansion, new investment and job creation. Industry expansions occurred several times at Cabela=s, ADC Telecommunications-Prestolite Wire, Memorial Health Center, Egging Company, Progress Rail, Pennington Seed, Nienhueser Construction and Excavation, Adams & Son Trucking, Glover Industries, Master Trading / Convert-a-Ball, Hooter Industries, Crossroads Cooperative, Scoular Grain, KSID Radio, Sidney Sun-Telegraph, U.S.Aprons, Anderson Forest Products, Sidney Warehousing & Industrial Sites, Sioux Meadows Industrial Park, Con-serv Flag, Commercial Resins, PerforMax Stone and 21^st Century Equipment. Several additional projects are in the planning stage.

Three industrial park areas have now been established. Sidney recently purchased a 90 acre tract on the east edge of the community for future development. Utilities were extended in 2008. New ownerships in the past decade and additional emphasis in development has taken place at the Sioux Meadows I-80 Industrial Park and Sidney Warehousing and Industrial Sites northwest of Sidney. Sioux Meadows and SWIS both continue to work with many new active prospects with the availability of commercial and industrial floor space. Both parks are served by a short line railroad that ties directly to the Union Pacific and Burlington-Northern Santa Fe main line railroads. Numerous trucking companies also serve this area. Over 500,000 square feet of warehouse / commercial space exists.

The Interstate-80 development opened in 1988. Now 30 businesses doing $250 million in annual retail sales with $100 million of new investment with 3,500 jobs are located in this area. The Sidney / Cheyenne County Economic Development Partnership is working on additional projects at the I-80 Exit 59. Wal-Mart Super Center opened in January, 2004 and its been home to Nebraska=s number one tourist attraction in 2007 with Sidney Cabela=s retail store.

Downtown improvement also saw significant change. Following the agriculture crisis of the 1980's there were several vacant buildings downtown as retailers closed their doors due to the sagging economy. The 1990's again saw a resurgence of this area and $3 million in additional public improvements were invested. A Sidney Main Street program directed at revitalizing Sidney’s historic corridor was adopted in 2003. An incentive program provided by the City of Sidney for historic restoration in the downtown area was adopted in 2005 and is administered by the newly formed Downtown Historic Preservation Board. Currently $800,000 in local economic development funds are available to the downtown business owners to do historic improvements. A rental assistance program has also been established for new businesses locating in the downtown area. Sidney is currently one of eight finalists for a $500,000 downtown improvement project through the State of Nebraska.

A major downtown drainage project was undertaken and funded by the City in 2006 and a second phase is scheduled to be completed in 2008 or 2009. A downtown street scape program has been completed. The Main Street program has been adopted along with a Certified Local Government program to enhance development and preserve the community’s rich history. The Main Street is also administered by the Cheyenne County Chamber of Commerce with four active committees on Economic Vitality, Promotions, Design and Organization. The Keep Sidney Beautiful Program is also administered by the Chamber and is making a significant impact on the community. A community wide assessment project is under way that will document each residential and business property in Sidney for the City’s emergency and public service entities and also to target rehabilitating certain properties. A $300,000 downtown improvement grant was secured in 2008, which will be matched by local funds.

Over $10 million in state and federal grants were secured by community leaders to enhance the development that took place in the community over the past 17 years. The financial community also strengthened its presence in the community, including First National Bank, American National Bank, Security First Bank, Sidney Federal Savings & Loan and First Tier Bank. Three new banking facilities were recently constructed and another historically renovated.

Numerous major infrastructure projects have been undertaken in preparation for the 21^st Century. A $14 million new water well field and distribution system was implemented in 2005 for Sidney, which also tied in the industrial park area northwest of the community that resolved long standing quality and quantity challenges for generations to come. A new regional Subtitle D landfill was constructed in 1996. The City continues to upgrade its electrical distribution system and generating power plant and has secured a 30 year long term contract for energy supply in 2008. The City constructed a flood plain control ditch that provided safety and eliminated much of a flood plain that previously restricted building projects. A popular new fishing pond was completed in 2007 through volunteer donations and an ice skating rink will be added in 2008. A $4 million wastewater upgrade will be completed by 2009.

A four mile walking, hiking and biking trail was built, expanded in 2001 and will expand again in late 2008 or early 2009. A new $3 million indoor community center was built in 1991, and expanded in 2008. Several new ball fields and soccer fields have been redesigned and built. County fairgrounds building improvements were added, Legion Park and Lodgepole Valley Youth Camp improvements were made, a Kiwanis Park was established on Sidney=s north side with new youth recreation amenities and the Community Building in Legion Park remodeled. A new skate park and tennis courts opened in 2002. A new Sidney Shooting Park featuring skeet and trap shooting and other types of shooting competitions and archery opened in 2006. A volunteer driven $400,000 new fishing pond was added in 2007 and a skating rink will be added this winter. A disc golf course and a sheltered horseshoe pitching arena were added in 2007.

Numerous airport improvements have been implemented in recent years as traffic continues to grow. Approximately $2 million in additional airport improvements are planned for the future. Fire Department equipment upgrades have been made throughout the county with an all volunteer force. A new $1 million fire truck capable of greater fire fighting abilities was purchased in 2008. A County / City 24-7-365 Communications Center has been established.

Sidney continues to build upon its reputation in attracting tourists. Highway traffic leading into the community has grown by 164 percent and the community boasted the No. 1 tourist attraction in Nebraska in 2007 with the Cabela’s retail store. The downtown historic designation tied together much of the history that draws visitors such as the Fort Sidney Museum and Post Commander’s Home. Memorial Gardens has continued to add improvements including a gazebo and a War Memorial honoring local veterans with the State’s tallest flag pole in tact. U.S. 385 received a scenic by-ways designation. Efforts are now under way to re-establish Sidney’s famed historic Boot Hill that traces its history back to 1867 and in 2008 it was announced the National Pony Express Association plans to build its national monument in Sidney.

A community web site was also created at www.sidney-nebraska.com that allows for all websites in the community to be accessed. The City of Sidney website www.cityofsidney.org and the Cheyenne County Chamber of Commerce is www.sidneychamber.com. A regional interactive employee recruitment website hosted by Sidney will be introduced in 2008 promoting the Tri-State area of western Nebraska, northeastern Colorado and eastern Wyoming as the High Plains Compass with community sharing of information for attracting new employees, companies and tourists. Increased local shopping awareness can be found at www.shopsidney.com

Sidney’s scenic 18-hole Hillside public golf course wraps around a picturesque canyon and is considered one of the top public golf courses in Nebraska. A new club house in a public / private venture partnership opened in the fall of 2005 and offers all of the amenities with a pro shop, restaurant and lounge. A record amount of play was established in 2007, exceeding 18,000 rounds, but green fees are still only $25 for 18 rounds.

On the education front, Western Nebraska Community College built a new downtown Center in a cooperative development effort with the City in 1995 with expansion plans ahead. It continues to strengthen its business relationship with area industries and has established relationship with Chadron State College and the University of Nebraska regarding four year degrees. WNCC and the community partnered together to build the new WNCC Aviation Maintenance School at the Sidney Municipal Airport. A community child care development center opened in 2002 on campus and a nearby housing complex serves for housing for the college students was secured in 2006. WNCC has gained national recognition and exposure with the formation of Cabela University for training, serving as the flagship for the college’s business and industry training.

Sidney Public Schools recently adopted a $17.3 million bond issue to build a new high school in 2008. Ground breaking took place on May 13, 2008. Sidney also expanded and restructured is elementary school system. West Elementary built a new gymnasium. An industry technology program was established in the school system. The city and school district worked together to build a fiber option interconnection between schools that now allows 450 computers to be linked to web site Internet connections. Sidney Public Schools ACT scores ranked above the state and national averages in the latest testing. Consolidation of the rural schools have been very successful at Dalton-Gurley (Leyton), Potter-Dix and Lodgepole-Chappell (Creek Valley), enhancing rural educational opportunities for area students.

On the natural resources front, a groundwater quality management area was established, an Integrated Management Plan to further protect water resources in the area was implemented in 2008 along with previously adopted groundwater guardian program and an Environmental Trust wildlife refuge area developed.

The successes from 1991-2008 was a result of a very strong public - private partnership between the City of Sidney, Cheyenne County, the Cheyenne County Chamber of Commerce and a strong base of private sector employers. This effort has made Sidney a shining example of a rural community that diversified and has gained state and national acclaim for its efforts. We are proud of all of these outstanding accomplishments and we feel confident in saying Sidney will continue to grow and prosper through our hard work and partnership efforts. Our community motto sums it up best...

Sidney, Nebraska . . .. Small Town Values . . . Big Time Opportunities!