An independent review of the City of Omaha’s Tax Increment Financing (TIF) program concluded that the city is compliant with state law. The review was completed by Forvis Mazars, an outside CPA and advisory firm.
The City hired Forvis Mazars following State Auditor Mike Foley’s September 2024 letter to the Nebraska Legislature on the use of TIF in Nebraska, and the suggestion from then-Senator Mike McDonnell that the City of Omaha should pause its use of TIF. The report provided no justification for pausing TIF, an effective economic development tool.
The city’s use of TIF has become an issue in the current mayoral race, which is now heating up. The primary is April 1st. The top two finishers will then compete in the general election on May 13th. McDonnell is one of several candidates challenging incumbent Jean Stothert.
Despite the campaign rhetoric, all indications are that TIF is being used properly and is boosting the city’s economic growth and development.
Forvis Mazars reviewed the city’s TIF program and processes for approving development projects, verifying of financing and affording opportunities for public input and information as required by the state’s Community Development Law.
As part of the study, Forvis Mazars randomly selected for review five TIF redevelopment projects approved in 2022 or 2023 including:
Aksarben Keys (2022) 64th & Center
Blackstone East (2022) 37th & Farnam
Mutual of Omaha headquarters (2022) 15th & Farnam
Digs Apartments Mason (2023) 3066 Mason
Square Apartments (2023) 30th & Leavenworth
The study reviewed the cost-benefit analysis for each project, the process for declaration of blighted or extremely blighted areas and publication on the city website.
The review also confirmed that the city submitted complete and on-time annual reports to the State of Nebraska Property Tax Administrator, the Omaha City Council, Douglas County and other affected taxing entities.
Forvis Mazar selected eight projects paid off between 2021 and 2023 and found all of them were in compliance.
Forvis Mazars did find two minor administrative findings in the study, both of which have been rectified by the city.
City finance director Steve Curtiss said the report shows that Omaha uses TIF appropriately for economic growth. “TIF does not put the city or taxpayers at risk,” he said.
Planning director Dave Fanslau said the city has a “well-vetted process that ensures only projects that qualify are approved.”
Since 2015, Omaha has approved 196 TIF applications for a total value of $548 million, resulting in $4.6 billion in new investment. Fanslau said his department disqualifies many TIF inquiries/proposals before they even reach the planning board.
In 2023, the Omaha City Council approved 23 projects for TIF financing. Six previous TIF loans were paid off.
