The Omaha City Council heard public testimony this week on the anticipated Union Omaha stadium Tax Increment Financing application. Following the public hearing, the council was scheduled to vote on the resolution to approve the application for about $49 million in TIF to help finance the more than $300 million project but voted 5-2 in favor of laying over the vote one more week.
Several council members wanted additional time to review information regarding the environmental condition of the site and the financial stack that was provided the morning of the city council meeting.
Council members voiced concerns about the possible environmental issues, but a full geotechnical drilling cannot be done until the city takes ownership of the property, which is anticipated to occur by the end of the month. Jennifer Taylor, a city attorney, explained that the city has a fairly good idea about the potential environmental concerns based on the city’s experience developing the CHI Health Convention Center and Lot B, which were similarly used by Union Pacific as the soccer stadium site.
Additionally, council members were concerned about the unknown status of the State of Nebraska’s approval of the stadium turnback tax application that provides essential financing to the overall project. The turnback tax allows a portion of new sales tax generated within defined boundaries around the stadium development to help pay for development costs.
David Levy, the Baird Holm attorney representing the development team, confirmed that the project will not happen without the turnback tax. The team has been awaiting state approval and will have a hearing later this month. The development team optimistically expects a response from the state by the end of June, but that is the best-case scenario.
Relatedly, because the city is closing on the purchase before the state gives its final decision on the turnback tax, the council wanted clarification as to whether the purchase would end up being a sunk cost if the state rejects the turnback tax package.
According to Taylor, the property will also be used to locate a combined sewer overflow and the 10th and 11th streets connector, referred to as the “truck route.” Both are important infrastructure improvements for North Downtown and the Millwork Commons District.
Additionally, even if the soccer stadium project falls through, the City is likely the only entity in position to remediate the property for redevelopment.
