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Housing Stimulus Proposal Receives Mixed Feelings Save Email Print
Lincoln, Neb.
Posted: 4:49 PM Jul 7, 2008
Last Updated: 5:58 PM Jul 7, 2008
Reporter: David Jespersen
Email Address: david.jespersen@kolnkgin.com

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As part of his budget, Mayor Chris Beutler announced a new economic stimulus idea last week. The stimulus would provide about $1,000 to residents who are beginning new home construction, but not everyone is sold on the idea.

Some say it's a good idea while others have written in to the city council calling it the "worst idea ever." The mayor wants to use some $600,000 in left over storm-water bond interest to boost the local home construction industry. Not everyone thinks his plan would work.

"We've got to be able to respond to economic opportunities," Beutler said.

The idea is simple: Beutler wants to use leftover interest from a storm-water bond to help boost the local housing economy by offering a $1,000 incentive to build a new home. The implementation could get tricky.

Not everyone agrees with the mayor's plan to fill in these new lots. The city council has received many e-mails from angry citizens, some who say the funds can be better used elsewhere, others are calling it the worst idea they've ever heard.

Economist Eric Thompson said the mayor's idea is sound, and should provide a little help, but fears the amount of rebate won't spur enough change to get the market back on track.

"The smaller the size of the incentive, the more it goes to people who were going to purchase home anyway, versus people who will make purchase because of incentive," said Eric Thompson, UNL Bureau of Business Research.

Thompson isn't alone in his concern. Several council members are also unsure if the proposal will do what it's intended to do.

"My initial reaction? I thought it was a good idea, but the more I've been thinking about it, I have a variety of questions and concerns about the money," said John Spatz, Lincoln City Council.

"I guarantee if you're looking for new house, you can negotiate a thousand off. Will another thousand help? I don't know. We need to find out if get bang for buck, if we don't we have to question it," Spatz said.

"$1,000 is not a big enough incentive to move people into a new house this summer. That $600,000 might be better spent somewhere else on budget," said Ken Svoboda, Lincoln City Council.

Beutler doesn't want to use this money on the budget. He said it would perpetuate an old problem and the city shouldn't rely on one time funds for regular use. He said these types of funds should go for the future.

Thompson said the stimulus could help, but won't solve the problem and says the city may be better off looking at long term solutions like lowering property taxes to spur growth.

The mayor is set to expand on his proposal soon.

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Posted by: JENNIFER Location: LINCOLN on Jul 9, 2008 at 04:13 PM
I think we should divide the money for prgrams like headstart, schools, and after school programs(not daycare). Many children need tutors and their are not enough volunteers. Maybe at local libraries have more programs, during the year for personal/learning enrichment.The children are our future!!! We can't keep locking them up, without more direction, substance and ability to feel like they can lead a produtive life. It is not easy to rehabilitate someone after they have been in the system for so long, juvenile lock up. I once had a study hall teacher that helped us about 20 students al with a rough life. One student was cross with everyone, my teacher reutted with one thing. The rate for kids in her class to graduate was 6 out of 20. Needless to say they were right. I wish thinhs were different. Now I am 30 almost and I didn't go to a bad school. Think south, very middle class it happens to everybody.

Posted by: bones Location: lincoln on Jul 9, 2008 at 04:28 AM
This is your mayor give the rich more so they can build new houses,hotels,arenas,but what about helping out the ones that really need it,small and i mean small busineses,side walks,pot holes,street lights etc. but we know the mayor and the city council wiill give in to the good ole boys THE RICH BIG BUINESS people of lincoln and all there friends because they care so much about the little people yea right

Posted by: Dumb Idea on Jul 8, 2008 at 11:05 AM
$1,000 doesn't even cover the outrageously high impact fee. However, $1,000 isn't going to make or break anyone that can afford to build a new home in the first place, so let's just save that 600k and we've already got NIFA anyway.

Posted by: J Location: Lincoln on Jul 8, 2008 at 09:32 AM
Here is my take, Why give extra money to people who can afford to build new houses??? Maybe he should give it to the homeless shelter to the people who actually need it. I thought when we got Seng out of office the stupid ideas went with her but apparently not!!!

Posted by: What a joke! Location: Lincoln on Jul 8, 2008 at 08:16 AM
Here's an idea - why don't you make the incentive available to anyone buying a house PERIOD!! Why on Earth do we need to build more houses!!! Take a drive through my neighborhood and see 20 houses for sale - let's get those sold before we build news! Half of those 20 houses are brand new ones already!!!!! Please Beutler resign before you actually get a chance to waste any money!

Posted by: Barb Location: Lincoln on Jul 8, 2008 at 05:56 AM
This idea is the stupidest one our mayor has come up with yet. $1000 is such a drop n the bucket to anyone considering building a new home that it's not going to make a bit of difference in a decision to build. There has to be many places this can be put to better use.

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