LINCOLN — The COVID-19 pandemic was not kind to the state’s Civic and Community Center Financing Fund, which awarded far fewer grants in 2022 than prior to the onset of the pandemic in 2019.

The Nebraska Department of Economic Development announced Friday, April 1 that it was awarding $1.2 million in grants this year from the fund. The grant money is produced by sales tax at hotels near the arenas in Omaha and Lincoln and by retailers near an area in Ralston.

Previously in the fiscal year 2017-2018, the first full year before the COVID-19 pandemic began, the state was contracted to grant $4.5 million.

As people stayed in hotels less during the pandemic, less money was available to grant out.

In an effort to help finance large sports/entertainment arenas, the state passed a law that "turns back" state sales tax paid within the vicinity of Omaha's CHI Health Center, Lincoln's Pinnacle Bank Arena, and Ralston's Liberty First Credit Union Arena.

Of these taxes collected, 70% are going towards retiring the arenas' debts while 30% is devoted to grants to help communities build libraries, swimming pools, and other civic structures.

Additionally, 10% of the state sales taxes turned back to Omaha will go towards grants for gang violence reduction programs.

Legislative Bill 927, introduced in the 2022 Legislature, would double the amount of turnback taxes granted to the CHI Health Center and the Ralston arena to help build parking structures. The bill awaits second-round debate.

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