RES 2022-0082 - Amend to Downtown Northeast Redevelopment Plan - 1804 Capitol Avenue City Clerk Office Use Only:
2C22.---DIALPublication Date (if applic ble):
RESOLUTION NO. Agenda Date: 2 t)2Z
Department: 14
Submitter: Jc Orirfe(� T U /w
J
CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha, Nebraska
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS, the primary objectives of the City of Omaha's Master Plan and Community
Development Program are to encourage additional investment and development within inner-city
neighborhoods; and to eliminate conditions which are detrimental to public health, safety and welfare, by
developing underutilized property within these neighborhoods; and,
WHEREAS, the continued development of Downtown Omaha is a high priority for the City of
Omaha; and,
WHEREAS, the Downtown Northeast Redevelopment Plan, as previously approved and
amended, authorizes continued development of sites within the redevelopment area as necessary and
appropriate to continue the development in downtown; and,
WHEREAS, Section 18-2108 of the Nebraska Revised Statutes requires the City of Omaha to
adopt a redevelopment plan before taking an active part in a redevelopment project; and,
WHEREAS, the Redevelopment Project Area, as described in Exhibit "A" attached hereto and
made a part hereof, has been previously declared blighted and substandard and in need of redevelopment;
and,
WHEREAS, the Amendment to the Downtown Northeast Redevelopment Plan proposes the
redevelopment of an approximately 9-acre site to be subdivided into three separate parcels; and,
WHEREAS, the City proposes the sale of seven of the nine acres to be developed, with said
developer to construct market rate apartments, affordable housing units, retail/office space, townhouses and
parking; and,
WHEREAS, the Amendment to the Downtown Northeast Redevelopment Plan was approved
by the Omaha Planning Board on October 27, 2021.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
THAT, the attached Amendment to the Downtown Northeast Redevelopment Plan as the
redevelopment plan for a 9-acre project site consisting of housing, retail/office space and parking, as
recommended by the City Planning Department, be and hereby is approved.
APPROVED AS T
2Z
u
DEPUTY CITY ATTOR D�TE
RESOLUTION NO. 2D22-
Adopted: FEB 15 r..;_°.-?.
Attest:
City Clerk
Approved:
Mayor
omah0 City of Omaha Planning Department
Eitai Planning Board
PLANNING Memo
To: Chairman and Members of the Planning Board
From: David K. Fanslau
Planning Director
Date: October 27, 2021
Subject: Amendment to the DOWNTOWN NORTHEAST REDEVELOPMENT PLAN
An area generally bounded by Chicago Street on the north, 17th Street on the
east, Dodge Street on the south and 20th Street on the west
Case#C3-96-276
The Omaha City Council approved the Downtown Northeast Redevelopment Plan on December
17, 1996. The Downtown Northeast Redevelopment Plan established policies and general
directions the City of Omaha (the "City") will implement during the redevelopment of a portion of
northeast downtown. The Redevelopment Area identified in the Downtown Northeast
Redevelopment Plan included all or a portion of 33 blocks bounded on the west by 17th Street, on
the north and east by Interstate 480 and on the south by Douglas Street.
The Downtown Northeast Redevelopment Plan has been amended several times to include major
redevelopment projects for the Omaha World Herald, First National Bank, Union Pacific and the
Capitol District. It was amended in 1999 to add six blocks to the Redevelopment Area, which
were those under the elevated portion of Interstate 480 and bounded by 20th Street on the west,
Cass Street on the north, 14th Street on the east and Chicago Street on the south. The purpose
of the amendment was to allow for the redevelopment of several surface parking lots through the
use of redevelopment bonds.
In 2017, the Downtown Northeast Redevelopment Plan was again amended to add nine blocks
to the redevelopment area, which would be those bounded by 20th Street on the west, Chicago
Street on the north, 17th Street on the east and Dodge Street on the south. The 2017 amendment
allowed the City to facilitate the redevelopment of the Civic Auditorium site through the use of
redevelopment bonds to fund the demolition of the structures located on the site and preparing it
for future development. It was anticipated the Civic Auditorium site would be redeveloped into a
mixed-use center, including civic, commercial, office and retail uses. This amendment is in
furtherance of that intent.
The Civic Auditorium Site Redevelopment Plan ("Redevelopment Plan") is an amendment to the
Downtown Northeast Redevelopment Plan. The proposed redevelopment project will utilize
information and guidance from the Downtown Northeast Redevelopment Plan in order to
implement a cohesive Civic Auditorium Site Redevelopment Plan.
The City will participate in the Redevelopment Project as allowed by and provided for in the
Nebraska Community Development Law. The City will transfer a portion of the Redevelopment
Project Area, as identified above, for fair value to the developer, for uses in accordance with the
Redevelopment Plan and in furtherance of the City's objective to provide equitable, diverse and
ECE
affordable housing options in downtown Omaha in support of increased employment opportunities
and workforce development for the City's local employers. The City will also participate in the
Redevelopment Project through the use of Tax Increment Financing, as appropriate and only as
allowed by Nebraska Community Development Law. Any such use of Tax Increment Financing
shall be pursuant to this Redevelopment Plan and a future Redevelopment Plan that further
demonstrates the Redevelopment Project's continuation of the City's goals and objectives.
RECOMMENDATION: Approval
ATTACHMENTS: Civic Auditorium Site Redevelopment Plan
}
Case Number: C3-96-276
Page 2
ECE
CASE: C3-96-276 7 !
APPLICANT: Planning Department on behalf of the City of Omaha
REQUEST: Approval of an Amendment to the DOWNTOWN NORTHEAST
REDEVELOPMENT PLAN
LOCATION: An area generally bounded by Chicago Street on the north, 17th Street on
the east, Dodge Street on the south and 20th Street on the west
SUBJECT AREA IS SHADED - NOVEMBER 2021
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PLANNING Feet
THE CIVIC AUDITORIUM SITE REDEVELOPMENT PLAN
(AN AMENDMENT TO THE
DOWNTOWN NORTHEAST REDEVELOPMENT PLAN)
Introduction
The Omaha City Council approved the Downtown Northeast Redevelopment Plan on December 17,
1996. The Downtown Northeast Redevelopment Plan established policies and general directions the
City of Omaha (the "City") could implement as part of the redevelopment of a portion of northeast
downtown. The Redevelopment Area identified in the Downtown Northeast Redevelopment Plan
included all or a portion of 33 blocks bounded on the west by 17th Street, on the north and east by
Interstate 480 and on the south by Douglas Street.
The Downtown Northeast Redevelopment Plan has been amended several times to include major
redevelopment projects for the Omaha World Herald, First National Bank, Union Pacific and the
Capitol District. It was also amended in 1999 in order to add six blocks to the Redevelopment Area,
which were those under the elevated portion of Interstate 480 and bounded by 20th Street on the west,
Cass Street on the north, 14th Street on the east and Chicago Street on the south. The purpose of the
amendment was to allow for the redevelopment of several surface parking lots through the use of
redevelopment bonds.
In 2017, the Downtown Northeast Redevelopment Plan was amended to add nine blocks to the
redevelopment area,which would be those bounded by 20th Street on the west, Chicago Street on the
north, 17th Street on the east and Dodge Street on the south. Figure One, attached hereto, is a current _ _
map of the Downtown Northeast Redevelopment Area. The 2017 Amendment to the Downtown
Northeast Redevelopment Plan allowed the City to facilitate the redevelopment of the Civic
Auditorium site through the use of redevelopment bonds to fund the demolition of the structures located
on the site and preparing it for future development. It was anticipated the Civic Auditorium site would
be redeveloped into a mixed-use center, including civic, commercial, office and retail uses. This
amendment is in furtherance of that intent.
The Civic Auditorium Site Redevelopment Plan ("Redevelopment Plan") is an amendment to the
Downtown Northeast Redevelopment Plan. The proposed redevelopment project will utilize
information and guidance from the Downtown Northeast Redevelopment Plan in order to implement
a cohesive Civic Auditorium Site Redevelopment Plan.
The Redevelopment Project Area
The Redevelopment Project Area is generally known as 1804 Capitol Avenue, includes property
bounded by 19th Street on the west, Chicago Street on the north, 17th Street on the east and Capitol
Avenue on the south, as shown on Figure Two, attached hereto and incorporated herein, and shall
include associated rights-of-way.
Existing Conditions in the Project Area
Land Use, Occupancy, Condition and Zoning
The Project Area covers approximately 7 acres, including rights-of-way. The Project Area includes
former Civic auditorium Site, and is immediately adjacent to a parking facility and vacant land to the
west, offices and a parking facility to the east, multi-family residential, Trinity Church and a parking
facility to the south, and surface parking lots and I-480 to the north. The site is currently vacant. The
Redevelopment Project will allow for the construction of a mixed-use development,to include multi-
family residential structure with some retail and office on the main level, in addition to a diverse
development of other residential uses. Major land uses in the area include hotel, office, residential,
retail,parking garages, and public rights-of-way. The Project Area is currently zoned CBD ACI- 1
(PL)(Central Business District with an Area of Civic Importance Overlay).
Historic Significance
There are no structures in the Project Area which are either listed on the National Register of Historic
Places or designated by ordinance as a local landmark.
Present Valuation
The Redevelopment Project Area is currently assessed at $o, as the property is owned by the City of
Omaha and exempt from real property taxes.
Redevelopment Project
Given the current challenges of transporting the workforce to the jobs that exist in the City of Omaha's
Urban Core, creating thoughtful and well-designed affordable housing within the Urban Core itself
would further the City's goals of increasing and supporting diverse residential and employment
opportunities in downtown Omaha.However,significant barriers to building affordable housing in the
Urban Core, and specifically in downtown Omaha, make accomplishing those goals extremely
difficult. The biggest challenges to the development of affordable housing in downtown Omaha are
related to the acquisition of land at a rate which, when combined with the cost of development and
reduced income opportunity, can support a reasonable rate of return for the project owner.
The cost of acquiring land is not considered eligible for basis in Low Income Housing Tax Credits
(LIHTC). It's a project cost that is absorbed by the developer and directly impacts the required rate of
return on investment for the developer. The Department of Housing and Urban Development dictates
the amount of rent that can legally be charged for certain types of affordable housing. These rents are
based on Area Median Income(AMI).As a result,affordable housing often does not generate sufficient
income to support the costs of land acquisition at appraised value,particularly in the Urban Core where
land values significantly exceed those in suburban or undeveloped areas. If the affordable housing
development requires a Land Use Restriction Agreement(LURA),which restricts the land use for the
benefit of the affordable housing for 30 years(15 compliance+ 15 extended use),the value of the land
will be reduced for as long as that restriction is in place, further reducing the ability of the developer
to obtain a reasonable rate of return.
Therefore,the City can further its goal of increasing diverse residential and employment opportunities
in downtown Omaha by assisting or participating in the private development of affordable housing.
Such public-private partnerships are a practical and successful way for municipalities to provide
equitable and affordable housing opportunities in urban areas that are otherwise cost prohibitive to
such development. Providing these affordable residential opportunities in downtown Omaha increases
the available workforce for downtown Omaha employers, increases the universe of residents utilizing
public transportation, and reduces the need for localized employee parking
The Redevelopment Project affords an opportunity to provide mixed-income housing within the Urban
Core. A site plan for the proposed Redevelopment Project is shown on Figure Three("Redevelopment
Project"), attached hereto, and incorporated herein. Including a variety of affordable housing
opportunities as part of the Redevelopment Project is integral to furthering the City's goals. The
Redevelopment Project Area is a nine (9) acre site that will be subdivided into three (3) separate
parcels. The City proposes the sale of 7 of the 9 acres to the proposed developer to construct the
Redevelopment Project. Of the seven (7) acres to be developed, the developer proposes to construct
the Redevelopment Project for housing opportunities the would include approximately:
• 250-300 market rate apartments
• 120-140 affordable housing units
• Retail/office on the main level of one multi-family building
• 20-25 townhouses for sale surrounding the site on either side
• Parking solutions, in conjunction with the City parking, as needed and appropriate
The remaining two (2) acres would be reserved for a potential commercial office or civic user to be
determined by the City, in conjunction with the developer.
Streets,Grades and Utilities
It is anticipated that little, if any, change in street grade will be needed. The implementation of the
Redevelopment Project will incorporate improvements as required by the Omaha Municipal Zoning
Code, as particularly required for the compliance with the Ara of Civic Importance Overlay.
Improvements will be made to the pedestrian crosswalks and the street surfaces where necessary and
required by the City. Updated streetscape additions will be made to the public rights-of-way in
accordance with all applicable City guidelines and urban design requirements, and with the City's
approval. The developer will undertake any utility relocation necessary and appropriate, in
collaboration with the City to ensure that all utilities are suitably located.
Project Costs and Public Financing
The City will participate in the Redevelopment Project as allowed by and provided for in the Nebraska
Community Development Law. The City will transfer a portion of the Redevelopment Project Area,
as identified above, for fair value to the developer, for uses in accordance with the Redevelopment
Plan and in furtherance of the City's objective to provide equitable, diverse and affordable housing
options in downtown Omaha in support of increased employment opportunities and workforce
development for the City's local employers. The City will also participate in the Redevelopment
Project through the use of tax increment financing, as appropriate and only as allowed by Nebraska
Community Development Law. Any such use of Tax Increment Financing shall be pursuant to this
•
Redevelopment Plan and a future Redevelopment Plan that further demonstrates the Redevelopment
Project's continuation of the City's goals and objectives.
•
•
•
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