Form RD 1980-88 (10/2021)

V. Agency Coordination

A. Program area(s) for which Section 6401 reserved funds are being requested (check all that apply):

Business and Cooperative Development - Rural Business Development Grant □ Program: Rural Community Facilities - Community Facilities Grant Program: □ Rural Community Facilities - Community Facility Loans: □ Rural Community Facilities - Community Programs Guaranteed Loans: □ Rural Utilities - Water and Waste Disposal Programs Guaranteed Loans: □ Rural Utilities - Water and Waste Disposal Loans and Grants: □ Rural Utilities - Community Connect Grants: □

B. Multiple Program Applications (if applicable). If you are submitting two or more program application for Section 6401 reserved funding in the same Federal fiscal year, provide the following information on each program application(s).

1a. Project Name: 2a. Program Area(s) for which Section 6401 reserved 3a. Date application funding is requested (check all that apply): submitted:

Business and Cooperative Development □ Rural Community Facilities: D Rural Utilities: D

1b. Project Name: 2b. Program Area(s) for which Section 6401 reserved 3b. Date application funding is requested (check all that apply): submitted:

Business and Cooperative Development □ Rural Community Facilities: D Rural Utilities: D

1c. Project Name: 2c. Program Area(s) for which Section 6401 reserved 3c. Date application funding is requested (check all that apply): submitted:

Business and Cooperative Development □ Rural Community Facilities: D Rural Utilities: D

C. Previous Program Application Information: If you previously submitted one or more program applications for Section 6401 reserved funding, provide Attachment B for each previous program application.

VI. Certification of Documentation and Acceptance:

CERTIFICATION AND ACCEPTANCE

I certify that, to the best of my knowledge and belief, the information included with this Form RD 1980-88, including all attachments, are true and correct.

Q_/�d--- Signature

By:

Title:

Date:

-�D�a�v�i�d_S�c�o�tt�------------- (Officer, Member, Partner, Proprietor)

Cit y Manager

February 28, 2024 x

Bringing the

Panhandle to You

Nebraska Panhandle

Comprehensive

Economic Development

Strategy 2021

Prepared by:

Contents Acknowledgements

Chapter 1: Executive Summary

Chapter 2: Population and Demographics

Chapter 3: Natural Assets

Chapter 4: Infrastructure

Chapter 5: Regional Economics

Chapter 6: Quality of Life

Chapter 7: Higher Education

Chapter 8: Regional SWOT Analysis

Chapter 9: Regional Action Plan

Chapter 10: Resiliency

Chapter 11: COVID-19

Appendices

Acknowledgements

Produced with funds and guidelines provided by:

The United States Department of Commerce – Economic Development Administration

Thank you to those who participated on the strategy committee:

Jamie Bright

Jordan Colwell

Pat Comfort

Jessica Davies

Brandon Hessler

Grant Hinze

Doug Hoevet

Faith Mills

Melissa Norgard

Yesenia Peck

Angela Scanlan

Thank you to all those who helped write this document, gave feedback, filled out surveys, and to all of those who participated in any part of the process over the past year!

Thank you to Jessica Rocha and Kimberly Sharples for allowing us to feature their

Panhandle wide photography throughout this document!

A special thank you to Megan Koppenhafer and Daniel Bennett for paving the way and building the structure for current and future CEDS updates!

Chapter 1: Executive Summary

The Region The Panhandle region of Nebraska is composed of the 11 western counties of Nebraska: Banner, Box Butte, Cheyenne, Dawes, Deuel, Garden, Kimball, Morrill, Scotts Bluff, Sheridan, and Sioux. Goshen County, Wyoming and Grant County, Nebraska are also referenced throughout this document as these counties are included in various regional data reports. The inter- and intra-connectedness of the region is also visible by analysis of commuting patterns, sales records, health trends, and a plethora of supporting data. This document will describe these relationships and strategize for the region’s future.

The Vision The Panhandle Economic Development Strategy is defined by several principles of the Panhandle: grow our own, perseverance, conservation, and history. The vision of growth in our region is one of using what you have and building on the strengths and history of the place you are from. In offering skills to develop youth, the Panhandle seeks to retain the younger demographic while also caring for those aging out and making room for people to move in. Development in the Panhandle will happen best by playing the long game and diversifying the economic sectors to create and encourage an environment which harbors creative problem solving to improve communities.

The Major Themes Existing themes and newly formed ones emerged from the development process that guide how this document is written as well as how strategies lead to a more ideal future Panhandle region.

Shrink Smart

Though the Panhandle’s overall population is decline, this theory provides the radical basis of not allowing population decline to negatively affect quality of life. The Shrink Smart theory was developed from European city and village models that identify which traits aid communities in maintaining quality of life despite a shrinking population. Part of shrinking smart is developing good fiscal management policy and budgeting for future improvements. Other components of this theory include community interaction, community volunteerism, and efficient use of community and regional resources.

Figure 1.1: The commuter patterns of the Nebraska

Panhandle Counties. Data courtesy of the 2010 Census. Map developed by Daniel Bennett.

Figure 1.2: Summary of Panhandle Commuting Patterns –

2015 Census On the Map data. Prepared by the Nebraska

Department of Labor.

Collaboration is Key

A recurring theme among various regional documents, Panhandle agencies across all sectors are well-versed in the importance of collaboration. The continued efforts of programs and organizations to work more regionally in the Panhandle results in greater resource distribution efficiency and a better service industry offered to residents.

Asset Based Development

Each community plays a unique role in the economy and functionality of the western Nebraska Panhandle. Some act as bedroom communities while others stand as tourist destinations and yet still some are marked as regional economic trade centers. Communities act in many roles, sometimes placed at the hub of a county to serve in high capacity or placed at the hub of the entire region to serve all 11 Panhandle counties and surrounding neighbors, such as Gering and Scottsbluff do as the “twin cities”. By cultivating the strengths specific to each community, smarter investments and more efficient resource distribution is likely to take place to better satisfy residents.

Sustainability

The future of the

Panhandle’s economy is intrinsically linked to the environment because of the agricultural base. Thus, the sustainability of natural resources is dire to all industries but especially to agriculture and tourism. Strategic planning must align with this idea for the region to remain functioning and for the potential to thrive.

Consideration and plans of the future of natural resources is as important as those made for the regional communities.

The Process The process for developing the Comprehensive Economic Development Strategy (CEDS) is a continuation of efforts over several years. This document provides a roadmap for regional economic efforts and investment assistance for member communities of PADD.

Every year an annual CEDS report is completed to present updates and progress within the region. Previously, the CEDS was redevelopment process took place every five years to reflect the new priorities and trends of the region, however, all districts were required to perform this task by September 30, 2021, to create one timeline for all going forward.

The 2021 CEDS was a collaborative project between elected officials, municipal staff, and the general public. A strategy committee representing council, economic development, large industry, small business, government agency, non-profit, and multiple ages led the planning process and met via video calls several times to discuss trends, goals, strategies, and public engagement practices. This committee also participated in the document

Combine working in field during fall harvest. Image courtesy of Jessica Rocha.

revision and advocacy efforts especially at the time of the public comment period in July 2021. Due to the ongoing pandemic, surveys became the go-to engagement practice, and the following were conducted:

• Municipal ranking – sent out to all city managers, mayors, clerks, village board, city council, etc. This survey was also sent out to the Strategy Committee.

• Community survey – sent out to all those listed above as well as marketed to the general public via social media, newspaper, community newsletters, etc.

The economic development strategy for the region focuses on better identifying the Panhandle, finding ways to help establish the younger demographic, learning how to retain the existing population, creating a marketing strategy for the Panhandle and its communities. These focus areas are outlined throughout the document and will become the driving force of PADD’s work over the next five years in an effort to continue bettering the Panhandle.

The Organizational Structure The document is divided into five sections for easy navigation.

Current Context

The beginning chapters (1-7) will address the current context of the Panhandle region, new data, and future trends to plan for. Data in this section includes population and demographics, green and gray infrastructure, regional economics, higher education, and quality of life indicators. The region’s assets and challenges are based on findings from analysis of this data.

SWOT

Chapter 8 compiles the data from previous chapters, feedback from the strategy committee, and results from the community survey to create the regional SWOT analysis. The SWOT strategy is utilized in this capacity to determine the strengths, weaknesses, opportunities, and threats of the region. This strategizing and feedback from engagement practices helped construct the next section.

Action Plan

The action plan outlined throughout Chapter 9 highlights themes and goals of the Panhandle with strategies to maintain, reach, or further imagine how to better the region. Strategy falls on a one, three, or five plus year timeline to ensure each goal is reasonable and achievable.

Resilience and Recovery

Resilience and recovery following major traumatic events in not something PADD directly offers aid for but rather provides assistance and resource guidance for. The most recent and continuing COVID-19 pandemic has closed many doors but created new opportunities and resources that PADD has remained at the forefront of in an effort to return to normal, efficiently. In collaboration with other regional agencies, PADD will continue participating in regional forums that focus on resiliency and recovery planning for all types of disasters.

Appendices

The appendices contain the bibliography, community survey data, and statistical information that does not format well within the document.

Chapter 2: Population and

Demographics

First Nations The population of Nebraska’s Panhandle has always been diverse and resilient. The region’s semi-arid climate required the inhabitants of this beautiful, dry country to be creative in their settlement. The American Indian people who occupied the Panhandle were from several different tribes, most notably the Oglala Sioux, Lakota, Arapaho, and Cheyenne (Figure 2.1). Deemed uninhabitable for the white population, the government set

Nebraska aside for the American Indians but as missionaries and traders moved west, the land was settled.

Westward Expansion The Spanish and French traders established relationships with the tribes in the 16th and 17th centuries. The British and Americans followed in the late 18th century. The Platte River was a highway for trappers and traders, providing early infrastructure for the Oregon Trail. Several westbound trails ran through the region and created the blueprint for the major east-west roads that run through the region today. American settlement of the

Panhandle counties took place in the late 1800s, but successful agriculture and population expansion did not occur until the development of irrigation systems.

20th Century Expansion The region’s agricultural success in the 1900s brought immigrants from Mexico, Russia, and

Japan to work in the Panhandle counties.

These immigrants sought solace from unstable political conditions, intending to return to their home countries after the political climate had stabilized. Yet, they settled the Panhandle after the sugar beet production boom and the success of the pathfinder irrigation system brought many jobs to the area.

In the 1920s, the Panhandle experienced its largest period of population growth. The intersection of job availability and irrigation success allowed the region to maintain stability during the great depression relative to

Figure 2.1: Map of American Indian tribes that inhabited the land which is now the State of Nebraska. (“Native

American Tribes of Nebraska”).

Modern day beet harvest. Image courtesy of Jessica Rocha.

the rest of the country; a testimony to the resiliency of the people who live here. However, in the 1960s the region experienced steady decline. This is likely due to the increase in mechanization and invention of the monogerm sugar beet seed. Both of which resulted in the decline of available work for farm laborers and factory workers.

The spirit of hard work and resiliency still defines the region today as farmers find new ways to remain viable.

Forces of Change

Population decline is a common trend throughout rural America. Understanding the mechanisms of population loss provides a context for the strategies that can be used to help the population sustain or grow. The Panhandle’s population has steadily decreased since the 1960s while the population of Nebraska has steadily increased over time. Much of Nebraska’s growth has been in its metropolitan areas.

The number of births in the region has steadily declined overtime to match the death resulting in a net change of zero for natural population change.

Births have decreased due to youth outmigration and smaller family size. Population gains will need to come from in-migration. Currently, migration patterns show the net in-migration of adults 26-45. Population centers such as Chadron, Alliance, and Scottsbluff have higher in-migration among adults over 65 but this is not reflected regionally because in-migration pulls from areas within the Panhandle.

The Panhandle’s migration patterns parallel those of other rural Midwestern regions. Research shows that the shift from an industrial economy to a post-industrial one weakens agriculture and manufacturing especially in rural communities. Because of the Panhandle’s strong manufacturing and agricultural identities, these market shifts have contributed to a decline in employment opportunity for Panhandle residents who are specialized to work in these sectors.

Residents moved to large population centers seeking diverse employment opportunities. This population consolidates in the Panhandle’s main trade centers. This phenomenon of population consolidation is not new and occurs in rural communities throughout the world.

Banner County

1%

Box Butte County

13%

Cheyenne County

11%

Dawes County

10%

Deuel County

2%

Garden County

2%

Kimball County

4% Morrill County

6%

Scotts Bluff County

43%

Sheridan County

6%

Sioux County

2%

Percent Population Distribution by County

Figure 2.2:

Population distribution by county.

Prepared by

Julia Hertaus, PADD. 2019

ACS 5-year

Estimate.

Looking to the Future The above projections show continued patterns of consolidation. This will contribute to a more stable population for larger Panhandle counties and accelerating decline in population for smaller counties. Appendix A has projections for each county.

Age The region’s age date shows a strongly pronounced baby boom generation but a thinning of the pyramid where the baby boom “echo”, the children of the baby boomers should be. This implies the loss out of young adult population and lack of available caretakers for an aging population that is continuing to grow. Decreased family sizes also contribute to the loss of youth.

A closer look shows that large Panhandle communities, those with population greater than

5,000, have retained a considerable amount of their youth in the baby boom echo and other younger generations. In small towns with populations under

5,000 people and rural areas, populations have decreased in young adult populations.

Figure 2.3: Population distribution by sex and 5-year age cohort in the Panhandle. Prepared by Julia Hertaus, PADD. 2019 ACS 5-year Estimate.

-4000 -2000 0 2000 4000

Under 5 years

5 to 9 years

10 to 14 years

15 to 19 years

20 to 24 years

25 to 29 years

30 to 34 years

35 to 39 years

40 to 44 years

45 to 49 years

50 to 54 years

55 to 59 years

60 to 64 years

65 to 69 years

70 to 74 years

75 to 79 years

80 to 84 years

85 years and over

Panhandle Population Pyramid

Male Female

0 500 1000 1500

Under 5 years

5 to 9 years

10 to 14 years

15 to 19 years

20 to 24 years

25 to 29 years

30 to 34 years

35 to 39 years

40 to 44 years

45 to 49 years

50 to 54 years

55 to 59 years

60 to 64 years

65 to 69 years

70 to 74 years

75 to 79 years

80 to 84 years

85 years and over

Persons

A g e C o h o rt s

Panhandle Counties <5,000

Population

0 1000 2000 3000 4000 5000 6000

Under 5 years

5 to 9 years

10 to 14 years

15 to 19 years

20 to 24 years

25 to 29 years

30 to 34 years

35 to 39 years

40 to 44 years

45 to 49 years

50 to 54 years

55 to 59 years

60 to 64 years

65 to 69 years

70 to 74 years

75 to 79 years

80 to 84 years

85 years and over

Persons

A g e C o h o rt s

Panhandle Counties >5,000

Population

Figure 2.4 and 2.5: Population distribution by 5-year age cohort in the Panhandle counties with population less than and greater than 5,000. Prepared by Julia

Hertaus, PADD. 2019 ACS 5-year Estimate.

The Panhandle’s population of adults 65 and older is projected to increase substantially as the baby boom generation ages. The cohort is projected to grow substantially, creating the greatest need for caretakers than ever before. In 2030, the growth will have peaked, and the population will decline.

An aging population has consequences including the loss of valuable workers and businesses through retirement and lack of succession. Panhandle economic development professionals and residents alike recognize the negative impact that a lack of business succession will have on the Panhandle’s economy. Another possible outcome is the return of the baby boom generation as they move closer to aging parents to provide care which could stabilize the region.

Race and Ethnicity Racial and ethnic patterns were historically, and still are, measured in order to reveal social patterns of inequity. Examining social and economic patterns along racial and ethnic lines can reveal whether these inequities are improving or worsening and can mobilize citizens to think critically about opportunity, economic mobility, and the health of all citizens. The racial diversity of the Panhandle is representative of the racial diversity of the state as a whole. Several counties have higher populations of racial and ethnic minorities than the state average.

Maintaining or growing the region’s diversity depends on providing equitable opportunity, mobility, and health.

In the Panhandle and in Nebraska as a whole, the majority race is White with the next largest population being Latino of any race. Scotts Bluff and Morrill counties have the highest Latino populations while Sheridan

County has the highest American Indian population. Like the rest of Nebraska, yo8unger generations of new

Nebraskans born to Latino families drive the growth of Latino populations in the region. However, in the

Panhandle, new generations of Nebraskans born to families with Latino heritage are often second, third, or fourth generation Americans as compared with other communities where the population growth comes from in-migration.

Younger age groups are much more diverse than the general population. In Box Butte, Morrill, Scotts Bluff, and

Sheridan counties, over one third of all children under the age of five were of a minority race or ethnicity (not

White). A slightly higher percentage of the Panhandle’s population under five years old was of minority race or ethnicity than the population under 5 years old in the state of Nebraska by 2010 Census counts.

Despite minority populations being present in the Panhandle for generations, a significant gap remains in the economic opportunities between minority and majority populations as indicated by the rates of education and

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

Race Distribution by County and State

Two or more races

Native Hawaiian and Other Pacific Islander

Asian

American Indian and Alaska Native

Black or African American

White alone

Figure 2.6: Race distribution by county in comparison to the State of Nebraska

Prepared by Julia Hertaus, PADD. 2019 ACS 5-year Estimate.

income for these two populations in Scotts Bluff County. Analyzing these discrepancies helps identify the root causes of the gaps in opportunity and address them through a social justice lens.

A society strengthens its capacity by supporting all sectors of the population. When everyone has equitable opportunity, everyone succeeds. Aside from the humanitarian argument for supporting diversity within communities, there is an economic argument for diversity developed by the W.K. Kellogg Institute.

According to the W.K. Kellogg Business Case for Racial Equity, closing these opportunity disparities could mean an $8 trillion gain in our national GDP by 2050.6 When all races of a community can participate equitably in the job market and in their communities, community vitality and quality of life improvements touch every person in that community. In the Panhandle, the new workforce will be increasingly made up of Latino and American Indian community members. Creating an environment that makes room for people of color at the table for decision-making and community visioning creates economic opportunities for growth as it did in the middle of the 20th

Century according to Kellogg.

Other groups must also be included in the conversation around equity. This includes equity of opportunity on the basis of sex, gender, sexual orientation, race, ability, class, veteran status, etc. The business case for racial equity is easily transferred to the case for equity for these other groups as well.

Meeting the Future Needs Understanding the changes that will likely occur in a region helps communities plan for future residents whole continuing to meet the need of today’s residents.

Population Size

A declining population ca mean an increase in blight and redevelopment challenges and a loss of political voice on the state level. While population decline is unlikely to reverse itself, small towns need not resign to a withering future. Iowa State University researchers have found it possible to be small and maintain a thriving quality of life.

This framework is called Shrink-Smart. If we assess the Panhandle from the shrink-smart framework, then we find there are opportunities to maintain or rebuild a thriving way of life. To be a shrink-smart community, it is necessary to:

- Connect resources across sectors

- Increase civic engagement

- Create a culture of openness and support

Equity

Meeting the needs of a diverse community requires braining many different voices to the table as possible. When you can build a community vision inclusive of the needs of a changing community, you provide equitable opportunities for all members. This includes planning for:

- Increasing diversity on community committees in a meaningful way

- Addressing downsizing to maintain community character and address blight

- Community gathering and meeting spaces that are age and ability friendly

- Meeting housing needs for all levels of income

- Addressing social determinants of health – access to green space, nearby business impacts, walkability, access to healthcare, etc.

- Accessible economic opportunity for everyone

Summary Population projections predict a population that will continue to shrink. Polls show 9% of Panhandle residents are planning to move and 19% are uncertain of whether they will move.7 Thus, shrinking smart will be an important strategy for the region to maintain or improve its quality of life.

Connecting resources across sectors has long been a strength of the Panhandle.

However, some remaining territorialism among service providers, municipalities, and business owners leaves room for improvement.

Service providers and municipalities are consistently asked to do more with less everywhere, especially in rural regions.

Combining resources and sharing information through the Panhandle Partnership helps use resources more efficiently. The region values autonomy, thus important partnerships have not yet been executed especially between municipalities and hospitals. Succession planning as the baby boomers age out of business ownership, non-profit management, and the tourism industry is a major problem in the area. People are not thinking about retirement early enough to train new owners. Supporting this type of planning will become increasingly important for the region.

The Panhandle’s communities consist of dense social networks and benefit from significant community participation. Engaging youth in these efforts in a meaningful way will serve the region by encouraging public participation at a young age. This could aid in retention by showing youth opportunities to make a different in their local communities.

Creating a culture of openness and support will maintain and grow the region’s diversity and build a thriving workforce. Creative solutions like internships, job training programs, and new higher education offerings should be strengthened. These solutions support learning new skillsets that will be useful to the local population.

Shrinking smart is a new way to look at economic development that honors where we are currently and asks, “How are we still providing for our citizens?”

Revitalizing businesses and buildings remain a focus for the region to create jobs and opportunities. Image courtesy of Kimberly Sharples.

Chapter 3: Natural Assets

Water The Panhandle lies above the widest, deepest part of the Ogallala aquifer. As a result, the depleting water resources of the aquifer feel from home. However, the map below illustrates the connectedness of our water resources with the rest of the Southwest and points out some alarming water loss trends in the South Central and North Central

Panhandle.

Over-pumping has reduced flows of rivers fed by the aquifer ground water. Regulatory mechanisms are in place that limit groundwater usage for irrigation in the Panhandle, however, groundwater from the aquifer accounts for a much smaller proportion of irrigation water than surface water.

Groundwater is highly regulated by the regional

Natural Resource Districts (NRD) based on suggestions from the Department of Natural

Resources (DNR). The DNR also gives guidance on appropriate usage of surface water for irrigation.

The 136 rivers and creeks in the Panhandle supply water for irrigation. The surface water irrigation rights come from approximately 30 irrigation districts and water delivery companies in the

Panhandle. The main source of surface water in the region is snow melt from the Colorado and

Wyoming mountains.

It is equally important to pay attention to the moisture accumulation in Colorado and Wyoming as it is to track rainfall recharge of groundwater here Nebraska. Cropping acres are not projected to grow in the near future but monitoring appropriate water usage should remain a priority for the region.

Soil and Agriculture Western Nebraska soils are generally sandy and well-drained. The Nebraska soil map provides a generalization of soil types in the Panhandle and the rest of the state and can be found in the appendices of this document.

Knowing our soils helps us understand the properties that support our unique agriculture.

The dominant soil types in the Panhandle are the chestnut soils which provide ideal conditions for winter wheat, oats, dry edible beans, and root crops like beets. The alluvial valley soils are most fertile because of constant river deposits of nutrients and fresh sediment. This soil provides the best growing environment for a diversity of crops and supports corn growth in the Platte Valley of the Panhandle. The Panhandle gets very little rain compared to

Eastern Nebraska, which also poses constraints for the type and amount of agriculture possible in the Panhandle.

Figure 3.1: Map of the Ogallala Aquifer (Sanderson)

According to the Nebraska Panhandle Extension and Outreach office, 75% of the agricultural land in the 16 counties they cover is rangeland ad natural wildlife habitat while the remained 25% supports crop agriculture.

Sixty percent of the cropland in the

Panhandle Extension District does not receive irrigation water, so these lands support dryland agriculture. Predominantly, dryland crops are grown in Scotts Bluff, Morrill, Garden, Banner, Kimball, Cheyenne, and Deuel counties, with additional dryland crops grown in Box Butte and Sheridan counties. These dryland practices necessarily use soil moisture conservation practices like no till, extended rotations, and fallow periods.

While Scotts Bluff, Morrill, and Box Butte counties grow significant dryland crops, they also support over half of the irrigated crops in the Panhandle.

Most irrigation water comes from surface water. The Ogallala and High Plains aquifers support water wells used for irrigation as well. The Natural Resource Districts determine whether to expand groundwater usage, which is important for our water sustainability.

Despite our cropland’s importance, the livestock industry provides for the majority of the Panhandle’s agricultural economy in the form of grazed cattle and feedlots to finish calves. In the 11-county Panhandle district, short grass prairie forage makes up most of the cattle land with a smaller percentage coming from the Sandhills rangeland.

Drinking Water The Nebraska Department of Environmental Quality maintains water quality data through the Assessing

Wastewater Infrastructure Needs program, which provides communities with information to estimate future water needs. The program looks at a community’s ability to improve their infrastructure in a sustainable matter in order to help them make important decisions and prioritize the communities for certain loans. According to the data, more than half of Panhandle communities face a moderate or high risk for their ability to sustain infrastructure needs in the future.

Three communities in the Panhandle: Clinton, Lisco and Harrisburg, do not have public sewer systems. These communities rank as high risk for non-sustainable growth pressure on their wastewater systems. Fifteen other communities rank in this high-risk category, so simply not having public sewer systems is not the only risk factor.

Many of the systems are old and require expensive updates. Estimated repairs to wastewater treatment systems across the Panhandle total $28,296,075 and the estimated cost to repair drinking water systems across the

Panhandle totals $44,217,865. These improvements, while costly, are essential for the future of many of these small towns to continue to meet the needs and wants of current and future residents.

Figure 3.2: The UNL Panhandle Research and Extension Center covers

16 counties in northwestern Nebraska. (Ostdiek)

Energy Resources Overall, the mapped energy infrastructure in the Panhandle is limited compared with surrounding states. Use of oil resources in the Panhandle has tapered off over time with decreasing oil prices and consolidation of small oil companies. Over the last 80 years, oil wells in the Panhandle have produced nearly half a billion barrels. New oil resources could strengthen the tax bases of Panhandle communities. The Natural Resource Districts monitor all oil exploration and require preventative wells to protect against contamination or spills. Most oil wells were drilled in Southwestern Nebraska. The Nebraska oil and gas commission believes there is continued opportunity in the Panhandle for oil and gas resources, however, the monetary risk to drill exploration wells prevent expansion.

Western Nebraska possesses strong solar and wind potential, making the Panhandle a prime location for alternative energy development. However, the regional job market relies on coal and oil industries. Railroad jobs in particular are very connected because the trains running through the region transport coal and oil.

Mechanisms to train people into jobs that are entering the region through alternative energy should be developed in order to offset negative impacts from any jobs lost because of a reduction in oil and coal production.

Scottsbluff, Nebraska leads the region in integrating solar power into the city’s electric grid. The city recently passed a resolution to support wider solar infrastructure. Much of the sun-soaked Southwestern Panhandle would benefit from enhanced solar infrastructure.

Wind energy in the Panhandle is more reliable in Banner County. Banner County residents have recognized their competitive advantage and formed a community initiative group to support thoughtful wind development in the region. They took initiative and hired a lawyer to investigate companies coming to the region to support residents when they were approached to lease land for wind turbines. The future of wind energy in Banner County promises increased county revenue, providing money for increased services to citizens. With no incorporated communities, the county school district would benefit the most. Wind development, while in progress, has developed slowly due to poor infrastructure for carrying the energy out of the county. Adjacent economic opportunities include regional manufacturing jobs, infrastructure projects, and reduced property taxes for farmers within the county.

Biomass, timber used for energy production, in the Panhandle is less of an opportunity than in the eastern side of the state, however, woody biomass in Dawes County has not been fully tapped. As a whole. The states underutilize waste wood resources. Realizing the most efficient use of these resources, especially in the Northern Panhandle, could provide a significant alternative energy source.

Oil wells found throughout the Panhandle. Image courtesy of Kimberly Sharples.

Tourism The varied topography of the sandhills, bluffs, valleys, and forests provide the context for beautiful sites and structures of the Panhandle’s tourism industry. Panhandle tourism is rich in history both human and natural.

The trail system connecting the Panhandle’s parks is not very extensive, but the trail systems within the parks are well developed. Several groups in the Panhandle focus on developing connecting trails to bring together the natural assets of the Panhandle.

Because of the varied topography, the region is home to many different animals which attract tourists from the

Front Range looking for a quieter encounter with nature. Lack of education about the Panhandle’s tourism opportunities inhibits the region’s potential in this area.

Summary The Panhandle region’s identity is tied to the natural resources. Outdoor recreation opportunities and beautiful landscapes are often what people enjoy the most about the area. For the major agricultural employers, the unique soil and climate combination creates ideal growing conditions for sugar beets, chicory, and dry edible beans. A strong economic development strategy must build on these valuable natural assets. The combination of the Panhandle’s natural resources and a small population makes the area attractive to folks living on the Front Range who are looking for a slower pace, less traffic, and fewer people. Newcomers from the Front Range have already been drawn to the area for these reasons, both in permanent life and tourism.

Year-around tourism activity will help encourage the movement of people from surrounding states to the

Panhandle. These activities will provide a glimpse of life here while showcasing our area’s unique natural beauty.

Additionally, preventing overdevelopment of land will be an important planning consideration for future business endeavors. Agriculture will remain the base of the region, but value-added agricultural products and technology are the next steps to pursue as the land reaches is agricultural carrying capacity.

Finally, ensuring that drinking water and wastewater resources are upgraded to support new residents is critically important. Potential new residents will not be interested in moving to a location where the drinking water is not deemed safe for their children. Taking care of the land in the Panhandle is not only a moral imperative but an economically smart choice as the land is and will continue to be our greatest asset.

Chapter 4: Infrastructure

Reliable access and availability to transportation, public infrastructure, and distribution channels strongly influence how an area looks to potential investors and new residents. A region can either lead with proactive steps that exceed the future needs of new generations and markets or continue with reactive solutions which generally only meet current needs.

Broadband Access to fixed wireless coverage, fiber, mobile wireless coverage, and cable or wire line coverage in the Panhandle remains inconsistent across the region. Generally, cities have more reliable access to these services while rural and unincorporated areas have even a lack of infrastructure available to gain access. Still, coverage remains sporadic whether in the city or most rural areas.

Improvement to these services have been made in the communities with hospitals associated with the Rural Health

Care Network.

The excess fiber from the improvements made to the hospitals then became available for other providers to lease. This fiber network has made the communities in which it is available attractive to a new class of workers looking to get away from the busy city life. Efforts are being made regionally to attract these workers to live in the Panhandle and telecommute to their job in Denver or other large metros.

Most recently, efforts by the Nebraska Regional Officials Council (NROC) may finally push broadband expansion statewide. NROC launched a statewide broadband mapping initiative in which residents in the state of Nebraska are encouraged to participate in a one-minute speed test from all internet-enabled devices to track current providers’ speed, find gaps in service, and record how much residents are paying for services. The future of broadband expansion in the region will be important in order to keep rural communities competitive.

Transportation The Panhandle location along the historic westbound trails provided a foundation for its well-placed corridors

(Hwy 20, Hwy 30, and I-80) and two north-to-south routes (Hwy 71 and Hwy 385) that run through the region.

However, improvements can always be made and there are some market factors that affect the efficiency and effectiveness of those corridors.

Figure 4.1: Screenshot of NROC Speed Test results as of July 23, 2021. Image courtesy of Julia Hertaus, PADD.

The Panhandle agricultural economy creates inefficiencies in its road systems because harvest necessarily requires an uneven traffic flow during the peak season. The field-to-distribution center roads are congested during harvest but are used significantly less during the rest of the year. These uneven distributions along with a shrinking roads budget pose challenges when planning future road improvements. One project that has support from many of the communities along the route is the Heartland Expressway. This is a four-lane highway that would increase safety and economic development along the route and in the region. Additionally, the expressway has the potential to reduce shipping costs with increased traffic and more efficient trips for trucks carrying cargo once completed.

Railroads The Panhandle’s railroad infrastructure is also deeply connected to past transportation routes. Therefore, the distribution of rail throughout the region lines up organically with population centers. Two major railroads serve the region: Burlington Northern Santa Fe (BNSF) and Union Pacific (UP). These two railroad groups represent a large economic base.

Railroad work is turbulent by nature. For communities that rely heavily on the railroad for a bulk of their employment, large layoffs affect the workers and the larger local economy. Additionally, as talks of renewable energy continue to grow louder, questions arise about the future of railroad jobs as many are tied to coal.

Airports There are 10 airports in the Panhandle ranging from small boutique airlines to the regional airport in Scottsbluff run by United Airlines. The availability of air travel makes the region more accessible for tourism and political purposes. The ability to have air service in the region is supported by a federal program called the Essential Air

Service.

Figure 4.2: Image from the NDOT report on the Heartland Expressway Association website.

Future Transportation The Nebraska Department of

Transportation (NDOT) and the

Nebraska Public Power District

(NPPD) are both considering the prospect of autonomous cars and electric vehicles. Gas taxes pay for road upkeep and with the loss of gas operating vehicles, officials are considering what will happen to the road infrastructure if a solution on how to capture the lost income is not created. Autonomous cars could increase the number of cars on the road which will further burden the infrastructure. However, the promise of the safety that would come with this technology is exciting for an area with such heavy truck traffic. Opportunities to capitalize on these trends include strategic placement of charging stations along the Heartland Expressway and proactively addressing the road tax structure.

Figure 4.3: Map of Nebraska Airports. https://www.nebraska-map.org/airports.htm

Electric vehicle charging station found at the Best Western Plus Hotel Sidney Lounge in

Sidney, Nebraska. https://www.bestwestern.fr/en/hotel-Sidney-BEST-WESTERN-PLUS-

Sidney-Lodge-28072

Chadron

Housing One reason for a lack of workforce frequently cited by Panhandle communities is the lack of quality, safe, affordable housing available to the potential workforce. On average, houses in the Panhandle were built in 1957 compared with the state of Nebraska’s average build year of 1971. Despite a shrinking population, this aging housing stock is failing to meet the needs of new and current residents.

The Panhandle has lower housing and rental costs when compared to Nebraska as a whole, but there are still gaps between what is available and what is affordable and suitable for prospective home buyers.

Despite these discrepancies, Nebraska benefits from the lower housing costs than

Colorado. As retirees are looking to downsize, Wyoming and Nebraska are very attractive because of the lower cost of living. However, there are many Panhandle communities that do not have the quality of housing that new buyers desire. In addition to the poor housing stock, the shortage of contractors and high costs prevent potential home updates. This has made it very challenging for any regional groups to make a dent in housing rehabilitation in the region.

The regional economic development districts across the state agree than land banks may be the answer to the stagnating housing markets in our region. Land banking allows the accumulation of properties with unpaid taxes and forgives back taxes. The land bank would then be in charge of getting the property remediated and stabilized enough to support new development, allowing for more housing projects in the Panhandle. In the meantime, several communities are exploring downtown housing options which support revitalization and the housing market.

Summary The Panhandle region struggles with aging infrastructure. Many communities have not planned for the future of their civic infrastructure including drinking water and wastewater systems, broadband, and housing. In part, this is because many communities put in these systems when the population was at its peak and ample monetary resources were available.

Aging infrastructure will deter those looking to move into our communities. Working with communities to plan infrastructure improvements over time, helping them to get grants and bring in businesses are all ways to support community development that will attract and retain community members.

The regional transportation systems are reasonable well-suited but are also aging. Improving roadways to be safer and to support economic development will add value to the region.

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Age of Panhandle Housing

Figure 4.4: Housing stock age in the Panhandle. Prepared by Julia Hertaus, PADD. 2019 ACS 5-year Estimate.

Chapter 5: Regional Economics

Economic health is the driving force for opportunities and prosperity in a region or community. While it is not the only indicator of good quality of life, robust economic opportunities contribute heavily to the level of income and the access to education and health care of residents. Thriving local and regional economies also contribute to the vibrancy of communities and provide a base for shared investment in things like infrastructure, law enforcement, public spaces, and maintaining positive neighborhood environments.

Workforce Patterns The Nebraska Panhandle is rooted in a strong agricultural economy, as shown in the previous section, and has fared well in economic downturns, maintaining unemployment rates often much lower than the nation.

Wages and professional opportunities, however, lag behind the states and nation as the region has struggled to compete with the metropolitan area’s pool of talent and innovation. Lower wages were cited by the focus groups as being the major reason for the lack of youth returning to the area. The perception of not being able to make back one’s investment is a hindrance to young people who have advanced degrees and loans to pay off.

Workforce Development The Panhandle hosts a diverse range of workforce development opportunities. While an educated workforce is important, it is not necessary to attend an institution of higher education in order to learn advanced skills. In the

Panhandle, creative strategies for workforce development have been implemented, including technical training programs and certifications. The high schools in Scottsbluff and Gering have career development programs that allow students to get their nursing assistant certification, associate degree, or certification in a trade skill like welding.

Lower levels of educations attainment in the Panhandle reflect the fact that many of the jobs available in agriculture, transportation, and manufacturing do not require a bachelor’s degree.

High levels of high school graduation in the Panhandle reflect the trend throughout the state. Nebraska has the fourth-highest graduation rate in the nation, with 89.3% of students graduating and the rate has increased since

2010. Still, opportunity lags for students reporting their race/ethnicity as Asian, Latino, Black/African American, or Native American despite increases in graduation rates. The quality of schools in the Panhandle is mixed based on test scores but largely satisfactory based on focus group feedback.

About 74.0% of Nebraska community college graduates were working in-state in the first quarter of 2013, compared to 62.0% of state college and university graduates. However, annual median wages were higher for

University of Nebraska-Kearney (UNK) graduates. Unfortunately, disparate opportunities for minority graduates exist. The estimated average annual wage for white Western Nebraska Community College (WNCC) graduates was 19.4% higher than it was for minority graduates. Any strategies to further opportunity and workforce development in the Panhandle must face realities and address the inequitable opportunity for graduates from diverse backgrounds.

In addition to traditional educational institutions, Nebraska and the Panhandle have non-traditional workforce development strategies in place that are becoming more popular. The Nebraska Department of Economic

Development (DED) has several cost-share programs to support apprenticeships and internships in the state. There are also several short trainings available through the Panhandle Partnership, along with several other locally run programs that teach particular skills such as digital marketing and childcare classes.

Unemployment remains slightly higher in the Panhandle than in the state of Nebraska but has been consistently lower than average national unemployment. These numbers give an incomplete account of employment trends in the region as they do not account for underemployment or those working multiple jobs. Unemployment measures also do not account for the size of the labor force which has seen a steady decline since 2000. It is worth noting that 48.0% of Panhandle residents are dissatisfied with available job opportunities.

People leave the labor force when they stop looking for work, move away, or retire. Box Butte, Kimball, and

Sheridan counties all recorded double digit percentage decreases in total labor force. This trend continued through the recession and has persisted even while the national economy has recovered. Dawes, Scotts Bluff, and Grant counties show modest growth in the labor force since 2000.

One possible reason for the loss of labor force is the lack of jobs in high wage, high demand industries. Another reason for the loss of labor force is the aging population in the Panhandle.