Council approves TIF financing for Crossroads Redevelopment – Omaha, Nebraska

Omaha, Nebraska 2021-02-23 20:06:57 –

Omaha, Nebraska (KMTV) —This is one of Omaha’s largest projects in history, one of the city’s most important and busiest areas, standing on 72nd Street and Dodge Street for decades. It will replace the old mall that was there.

An expanse of modern, urban shops, apartments, offices, bars and restaurants that cost more than $ 500 million.

The project first required city council approval to raise tax increases, also known as TIF.

Omaha Mayor Jean Stozart said the new development would be a cultural, entertainment and leisure destination for the city.

“Without our support and approval of the TIF application, this project will not move forward,” says Stothert.

That raises the question, how does TIF work exactly?

Think of it as a loan that repays with property tax.

In this case, the developer has earned $ 79 million to get the project started quickly. Due to the significant increase in real estate valuation, the owner will repay it through property tax for 15 years.

In this case, the value of the property is expected to increase by 3200% to about $ 13 million to $ 418 million.

The city never spends money explicitly, but critics have problems with it, saying that those property tax dollars should go where they are supposed to go. .. Specifically, government-funded organizations such as school districts.

However, TIF supporters have pointed out the millions of additional property tax revenues that local governments have after a 15-year period.

In this case, developers expect an additional $ 9.5 million annually paid to various local organizations. They include Westside Public Schools, Douglas County, and Omaha City.

There were some opponents who questioned the TIF Fund and were concerned that the city had bigger problems.

“I think your goal as a city council is to scrutinize these projects and make sure they really benefit the city as a whole. Now, not 15 years after taxes have finally caught up. “Let’s do it,” said Sara Johnson, who said she wanted Congress to focus on affordable housing.

The Crossroads project is huge. It is estimated to cost $ 554 billion and is fully equipped with residential, office, entertainment, retail and restaurant spaces.

The developers believe that 3,200 part-time and full-time jobs will be added, making this area very easy to walk around, with squares, open spaces and sidewalks. Proponents said it should look like future developments.

“It’s not just a neighborhood, it’s not really just 2022, 23, 24 … it’s 2039,” said project supporter Marty Hosking.

The council unanimously resolved to approve TIF funding. Pete Festersen, the district’s representative, said it was important to maintain the emotional center of the city.

“My members and my neighbors have been waiting for a long time to see this happen. This is a major redevelopment of our city and a positive in the heart of our city. It will be a big addition and a positive reinvestment, “said Festersen.

Councilor Amy Melton said the project wouldn’t raise taxes and, in fact, might help them go down, or at least prevent them from going up.

“This is the way we prevent property taxes from rising. We will expand our earnings base to raise more money from development. This is the best way to grow our city,” Melton said. It was.

The developers plan to maintain some parts of the crossroads mall area. The area where the cut will be made will include the parking lot they plan to renovate and the Target Building owned by Target Corporation.

Council approves TIF financing for Crossroads Redevelopment Source link Council approves TIF financing for Crossroads Redevelopment

Back to top button