Nebraska cities make key strides in pursuit of activating ‘Good Life Districts’

GRETNA, Neb. ( Nebraska Examiner ) - The pursuit of the "good life" in Nebraska made a few key strides this week — as measured by progress toward building Good Life Districts aimed at luring new tourism, retailers and other pizzazz to the state.

To date, the Nebraska Department of Economic Development has designated four geographical areas as Good Life Districts. Five in total are allowed under recently passed state legislation, which makes the districts eligible for public incentives to help create unique tourist-oriented campuses expected to generate jobs and economic activity.

Among the latest developments:

In Omaha, unofficial election results show that voters approved a measure on Tuesday's ballot that empowers city officials to create an "economic development program" to guide development in a Good Life District near 192nd Street and West Dodge Road. Voter approval is needed to tap financial incentives that private developer Curt Hofer can use to help build out the 200-acre Avenue One district, which anticipates luring $1.4 billion in investment and 4,083 jobs.

In Gretna, City Council members on Tuesday voted to schedule a Jan. 14 special election that will ask local voters to pass a similar Good Life measure. Gretna's is the largest of the state's Good Life Districts, with boundaries including and surrounding the Nebraska Crossing shopping center. Rod Yates, who owns the mall and also is the district applicant, envisions up to 4,500 acres of sports-centric training facilities, professional teams, residential buildings and more.

Time of the essence Per Good Life legislation passed in 2023 and refined in 2024, the state has reduced the state sales tax within the boundaries of the Gretna area and Omaha Good Life Districts — from 5.5% to 2.75%. The idea was for that money to be redirected instead to help develop the respective districts, but first needed is the voter approval.

Perhaps nowhere more than Gretna is time, at this point, of the essence. That's because an average of nearly $300,000 a month in state sales tax has been forfeited since the rate was reduced in April.

Nebraska Crossing stores are within the district's boundaries. According to the Nebraska Department of Revenue, the state has forgone nearly $1.3 million in state sales tax from April through August. April collections were incomplete, and figures for the last two months were not available.

Yates said in an interview he had asked that the state sales tax rate not be reduced until after his proposal was farther along. He said he was told that was not possible, and that the timing related to the DED approval date and legislation language.

Grant Pille, president of the Gretna Area Chamber of Commerce, urged Gretna not to dawdle.

"The longer this is delayed, the longer the city misses out on $300,000-$500,000 per month in Good Life revenue," he said in a letter urging the council to move on scheduling the special election.

City officials said that the council earlier had delayed setting the election, upon the state's recommendation.

No 'gap' in Grand Island In Grand Island — where a Good Life District is being led by Omaha-based Woodsonia Real Estate — there was "no gap" in which revenue was lost, said City Administrator Laura McAloon.

That city held its special election related to a Good Life District on Aug. 14. Voters approved it, and the City Council adopted an economic development program the following month.

The program called for the city to essentially recoup the eliminated portion of the state sales tax via a new 2.75% occupation tax on all items subject to the state sales and use tax.

All revenue derived from the occupation tax is deposited into a fund to be used for development within the 875-acre Grand Island district, which includes an existing retail corridor as well as a largely undeveloped city-owned tract.

"We're not losing any revenue," McAloon said. "We're moving quickly. We don't want a penny to go unused."

McAloon said the city will use a portion of the new occupation tax revenue to pay for a master planning process aimed at transforming the city tract within the district into a sports complex that will serve locals but also draw regional tourism.

According to its DED application, the Grand Island project estimates creating $550 million in investment and 5,000 new jobs.

Statewide updates Updates on other districts:

In Omaha, unofficial election results as of Thursday showed about 97,000 voters for and 78,500 against establishing an economic development program for Omaha's Good Life District.

Next, the Omaha City Council would create the program that lays out how to capture and redirect the eliminated state sales tax to help pay for what developer Hofer envisions as a 200-acre western gateway to Omaha.

Meanwhile, the reduction of the state sales tax rate within the Omaha district's boundaries since April has had relatively little impact, as the area is still largely undeveloped and waiting for Hofer's proposed stores and commercial structures to rise.

According to his DED application, the estimated $1.4 billion project site would create 4,083 jobs. Hofer said he hopes to announce significant tenants in the spring, and "go vertical" with new buildings later next year.

"We've been very patient," he said, adding that he is courting unique residential, restaurant and entertainment venues.

In Bellevue, the applicant for the Good Life District is the city, not a private developer. The biggest regional and national draws at the site near Highways 75 and 34 will be either city-owned or city-supported projects.

Since the city won't be remitting any tax revenue collection to a private developer, there is no need for a special election, said Harrison Johnson, director of community and economic development.

Occupation taxes assessed in the district essentially will recoup the eliminated state sales tax, he said, and help the city pay for infrastructure and construction of amenities on the site.

The entertainment-focused project is to be anchored by a water park with a retractable roof and a resort-style recreation area. A mix of commercial venues includes a theater and golf sports complex.

"The project's new-to-market feature will be the year-round climate controlled walkways facilitating the resort recreation style development that will act as the center draw for all future attractions," said a city document outlining the district vision.

According to Bellevue's application, the estimated $1.36 billion investment is to create 7,820 jobs. Approved in July, the Bellevue district was the fourth approved by the DED.

One more opening Still under the agency's review are competing applications for Good Life Districts in Papillion and in Kearney. The Papillion project, according to a DED spokeswoman, would create $1.6 billion in estimated investment and 2,906 new jobs. The estimated $225 million Kearney project is envisioned to bring more than 6,500 jobs.

Certain criteria must exist to become a Good Life district eligible for related incentives. The applicant, for instance, must demonstrate minimum levels of new investment, tourism, jobs and new-to-Nebraska retail entertainment and dining attractions.

The expectation is that economic activity will multiply in and around the districts.

Gretna Mayor Mike Evans said he is looking forward to his city's special election related to the Good Life District. The City Council voted unanimously to set the Jan. 14 election date.

While the Gretna City Council on Tuesday also unanimously rejected the terms of Yates' Good Life District proposal, Evans said the city remains open and ready to negotiate.

Another property owner within the district is also interested in developing a tourism-related project, said Evans. He said the city believes that property owners beyond Yates, who applied for the district designation, can seek to use revenue derived from a "replacement" tax the city would approve to recoup eliminated state sales tax.

"We feel there can be multiple developers within the district," said Evans. "As long as they're meeting the expectations of the DED and the statute — transformative change, tourism, et cetera."