Gov. Dave Heineman announced Wednesday that he has asked Lincoln Mayor Chris Beutler to coordinate talks between the University of Nebraska and the Nebraska State Fair Board about possible joint use of the state fairgrounds.

Heineman began a speech Wednesday to the Chamber of Commerce at the Country Club of Lincoln with the news that the two groups “have agreed to meet and discuss opportunities for both parties to achieve their goals at State Fair Park.”

Before moving on to his thoughts on the 2008 legislative session and other subjects, the governor said he had already spoken to Beutler about being the middle man on a possible resolution to competing plans for 251 acres north of the downtown area.

Beutler confirmed that contact later Wednesday and called it “a great turn of events.”

“It’s up to us now to make the most of it,” he said.

Responding to questions later,  Heineman said it made sense for the city to preside over attempts to craft some sort of partnership, because it has a significant economic stake.

He warned that the city may not be able to count on an outcome recommended last year by Lincoln civic and business leaders. That recommendation calls for the state fair to move several miles east to 84th Street, near the Lancaster Event Center, to free up space for a university research center on what is now State Fair Park.

The governor said the feedback he’s getting on that subject suggests “if the state fair moves, it won’t move to 84th Street. It will move outside Lincoln. And I think that’s a concern to Lincoln people. It should be a concern to Lincoln people.”

Heineman’s announcement is the latest development in an issue that started to take shape last year.

That’s when some Lincoln leaders recommended the fair move to the Event Center area so the university could occupy the space and concentrate high-tech research in a showcase setting between UNL’s City and East campuses.

Ten of the 13 state fair board members subsequently voted to keep the fair where it is.

More recently, matters moved onto the Legislature’s agenda. A consultant team told the Agriculture Committee in October that creating the ideal site for the fair could cost as much as $175 million.

The consultants and committee members have a second public meeting scheduled for 1:30 p.m. today.

That’s when the second and final part of the report will delve into how State Fair Park might be upgraded to host a better fair.

Although that session is open to the public, the opportunity for public comment won’t come until a public hearing set for Dec. 14.

University of Nebraska President J.B. Milliken was in the audience during Heineman’s speech on Wednesday.

He said later that the governor had approached him recently to ask if he’d be willing to meet with fair leaders to discuss shared use of State Fair Park.

“I told him, of course we will do it. We’ll be happy to do it,” Milliken said. “I think that’s a fine idea to have people get together and talk about that.

“Whenever the governor asks us to participate in a conversation, we’re pretty highly motivated to do so.”

Milliken didn’t name any specific ways NU and the fair could share the land, but said he’s open to ideas. Still, he isn’t wavering in his belief that the best use of State Fair Park is to convert it to a research and development campus for NU.

“We are very happy to sit down and talk. Of course, we come with our own set of beliefs, that we think the best use of the State Fair property is for an R&D park related to the university,” he said. “The bottom line is we’re very happy to be a part of these discussions.”

Milliken said he hadn’t heard from Beutler on when the first meeting between NU and fair leaders might be, but said he hopes it will be soon.

In the meantime, the university is moving forward in developing its own plans for how it might use the 251-acre State Fair Park. Those plans should be unveiled in the next few weeks, Milliken said.

State Fair board member Tam Allan of Lincoln said Heineman sought him out last week “just to let me know this was what he was thinking about saying.”

In a telephone interview, Allan — among the most outspoken advocates of keeping the fair where it is — called the governor’s idea an “exciting opportunity.”

“We’ve never been asked to consider utilizing, looking at the opportunity to do things together at State Fair Park,” he said.

Barney Cosner, the fair’s executive director, offered a similar perspective.

“The state fair, all along, has talked about having some opportunity for input and allowing the discussion to center on this property versus looking for a huge amount of funding to relocate,” Cosner said.

While indicating the fair board would be open to talking about shared tenancy, he said he’s yet to hear anything similar from the university.

“I think maybe there are some issues on the other side of the fence that we’re not fully aware of, and now they’ve stepped up and said they’ve got to have the whole park.”

Ever since the recommendation to move the fair was raised, Heineman has said he would not be agreeable to contributing state tax money for that purpose.

In responding to questions at the Country Club, he suggested he might take a different view of spending at State Fair Park.

“Primarily, the funding has got to come from local resources, I don’t ever want to close the door, but the door is not very open. I’d say that.”

Beutler declined to speculate on the fair leaving town.

“My objective is to keep the state fair in Lincoln and to help them reach some sort of amiable solution with the university. And I think that can be done.”

He was also reluctant to talk about tapping the city budget to achieve some sort of solution at State Fair Park. However, he said, “I’m really pleased the governor has opened the door a little bit to state participation.”

Beutler said he didn’t know how practical it might be to construct buildings to be used by both the university and the fair, labeling it “kind of a late-breaking idea.”

But he welcomed the governor’s involvement.

“What he and I are both trying to do is bring the two groups together to build a better vision for the city and the state of Nebraska.”

Sen. Phil Erdman of Bayard, chairman of the Legislature’s Agriculture Committee, said Heineman “can do whatever he wants. He’s the governor of Nebraska.”

“His involvement is not going to change what we’re doing. It will not be changing our process.”

If Lincoln officials come up with a new option, they can put it on the table at the Dec. 14 hearing, Erdman said.

In a related development, Roger Jasnoch of the Kearney Chamber of Commerce released a statement late Wednesday afternoon, citing a recent meeting of a task force there.

“Kearney’s intentions are focused on what is in the best interest of the State Fair,” the statement said. “If a new home is deemed a good option, Kearney would surely want to be considered.”

Reach Art Hovey at (402) 523-4949 or ahovey@journalstar.com. Journal Star reporter Melissa Lee contributed to this story.