Omaha City recently issued the following announcement on March 2.
The Omaha Planning Board has approved two initial and important steps for development of the modern streetcar and Mutual of Omaha’s planned downtown headquarters.
The Board approved the Urban Core Housing and Mobility Redevelopment Plan which focuses on three significant areas; transit and mobility improvements, affordable housing, and job growth.
The Redevelopment Plan area boundaries are the Missouri River west to 50th Street, and Woolworth to Cuming.
The Urban Core Housing and Mobility Redevelopment Plan notes the need for affordable and workforce housing and includes a goal of adding 1,000 new units of affordable and workforce housing in the next 20 years. It also recommends reducing surface parking to create additional development sites.
“We’ve had a chance to look at communities around the country and we have a very good idea of what will happen,” said Jay Noddle, chairman of the Greater Omaha Chamber’s Urban Core Committee. “This opens up our community to another, bigger stage and to become a first choice city.”
The Planning board also approved Mutual of Omaha’s TIF financing application for the downtown headquarters. Mutual plans to build an 800,000 square foot office tower on the current site of the W. Dale Clark library. Mutual estimates the building will cost $433 million and is asking for $62 million in TIF.
“This is for the next generation,” said Jason Lanoha, president of Lanoha Real Estate Company. “This is more than just a building. You get talent by being at the forefront and building a building people want to work in.”
Lanoha told the Planning Board Mutual will be back in about a year to present a “big vision” for Mutual’s current midtown campus, including new corporate tenants, housing and entertainment.
The TIF application and the Redevelopment Plan will now be considered by the Omaha City Council in April.
The Redevelopment Plan also identifies Tax Increment Financing (TIF) as the primary funding source for construction of the streetcar, and creates guidelines for new and redevelopment that will include requirements for density and valuation. The Omaha streetcar is expected to bring at least $3 billion in new development to midtown and downtown Omaha.
The streetcar construction financing plan announced in January includes three sources of TIF funding totaling $356 million, greater than the $306 million estimated cost of streetcar construction.
TIF projects already approved in the redevelopment plan area will generate $50 million, utilizing additional revenues generated between years 15 and 20.
New TIF projects in the plan area will contribute 25% of TIF proceeds to the streetcar, totaling approximately $218 million, based on current projections of $3 billion in new development in the redevelopment plan area.
The TIF District, within the boundaries of the Redevelopment Area, will generate $86 million based on projected property valuation increases along and within three blocks of the streetcar route. Modern streetcars have been shown to increase the valuation of properties within several blocks of the line by 10%-30%.
Original source can be found here.
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