GRAND ISLAND — The Grand Island City Council has unanimously approved plans for a future State Fair site.

The council approved a 40-year lease with Fonner Park, where a 50,000-square-foot exhibition will be built. It also approved an amended management agreement that would allow the city to rent the property for recreational events.

In addition, the council approved a six-and-a-half-year lease-purchase agreement from Wells Fargo Brokerage Services for the $5 million exhibition building.

Earlier this week, the City Council passed a 1.5 percent occupation tax on restaurants and nonalcoholic beverages that would raise just more than $1 million annually to pay for the building project. Officials say the tax is scheduled to start Dec. 1.