Small Nebraska Town Sparks $6M Growth in Five Years

A small Nebraska town is showing America that rural communities aren't disappearing—they're reimagining what's possible.

O'Neill, home to fewer than 4,000 people, has generated over $6 million in local investments over the past five years. The Nebraska Department of Economic Development recognized the city on February 25th for its success in the Leadership Certified Community program, which O'Neill first joined in 2020.

The numbers tell a story of renewal. Since 2020, local developers have helped launch 269 new businesses across Holt County, including 111 in O'Neill itself. Economic leaders assisted in more than 50 business transitions to new owners during that same period.

Much of this growth stems from O'Neill's voter-approved economic development program, started in 2012. The initiative dedicates a portion of local tax dollars to economic development projects. Since 2020 alone, it has pumped $5.6 million into the community.

That funding has supported 58 businesses with over $3 million, resulting in $8.4 million in total investments. The program has also helped create or retain 170 jobs.

"The program has been a great incentive to help bring families, either new or returning, back to O'Neill," said City Clerk Sarah Sidak. Funding covers everything from startup assistance to building acquisitions to working capital.

Housing has been a major focus. In 2022, the state awarded O'Neill $1 million for single-family homes. The first three houses on Kros Drive were completed in late 2024, with more planned.

Downtown O'Neill is coming back to life too. Business owners have restored historic buildings, including one that now houses a coffee shop, taproom, and retail spaces. The former Shopko building got a second chance as a storage facility.

The Ripple Effect

The transformation goes beyond business metrics. Mayor Scott Menish says the city has invested heavily in what makes communities feel safe and welcoming—a new police department, K9 unit, fire and rescue equipment, and two new ambulances.

Schools are drawing families back. New facilities at O'Neill Public High School and renovations at the O'Neill-St. Mary school signal long-term community commitment.

Holt County Economic Development created the North Central Nebraska Youth Entrepreneurship Challenge to keep young talent local. Their Hometown Leadership Institute has graduated more than 238 residents, educating community members about rural development possibilities.

The investment continues. Senator Deb Fischer recently announced $3.5 million in federal funding to replace the boiler and water heating system at Avera St. Anthony's Hospital, which suffered a natural gas explosion in 2024.

O'Neill is one of 29 Nebraska communities in the Leadership Certified Community program, which encourages strategic collaboration among local leaders to support businesses, childcare, housing, and workforce development.

What started as a certification program has become a blueprint for how small towns survive and thrive in modern America.