By JEAN ORTIZ Associated Press Writer

OMAHA, Neb. (AP) -- Grand Island officials said Monday that they expected to meet their deadline to pay their share of the $42 million needed to move the Nebraska State Fair from Lincoln to Grand Island.

The city has until Wednesday to make the $2.5 million payment to the State Fair Board. The payment includes a credit for $1.5 million to relocate some city athletic fields to make way for a fairgrounds parking lot.

"I'm feeling extremely good at where we are today," Grand Island Chamber of Commerce President Cindy Johnson said Monday. She added that the payment should be delivered Tuesday.

The city previously put down $6 million of its $8.5 million obligation, relying heavily on donations.

Fair Executive Director Joe McDermott also said Monday he didn't see problems with the finances and expects construction to begin on the fair's new 225-acre home in coming weeks.

McDermott said the project has already overcome its last hurdle: A Lancaster County District judge last week dismissed a lawsuit that tried to block the move.

Now he's looking ahead to Aug. 1, 2010 - the date he says the new fairgrounds will be ready.

The construction plans include a 290,000-square-foot livestock building among other exhibition buildings and a swine barn.

Improvements are expected to total $42 million, with the University of Nebraska covering nearly half that cost. The state and fair board are chipping in, too.

State law authorized the move, which will have the fair leaving behind its home for more than a century when it heads 95 miles west to Grand Island in 2010. That will clear the way for the university to build a high-tech research and development park on the land.

This year's fair will be the last in Lincoln. It's set for Aug. 28-Sept. 7.

With most of the legal and financial issues addressed, Johnson said a committee is turning its attention to ensuring the community is ready to host the fair. That means considering a wide range of issues from how the city will accommodate campers to planning other events for visitors.

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