Omaha board peppers developers with questions about project in line for $90M in state funds
State Sen. Justin Wayne speaks to the Omaha Inland Port Authority board about the plan to spend $90M in public funds to get a site near Eppley Airfield shovel-ready for a business industrial park. (Cindy Gonzalez/Nebraska Examiner)
OMAHA — A $90 million plan to launch a business park near Omaha's airport faced continued scrutiny Thursday from a board that must provide a letter of support for the publicly funded project in order for it to proceed.
The questions from Omaha's Inland Port Authority board also raised questions about whether the development team would meet its deadline to get the project site shovel ready for job-producing industrial businesses to sprout.
State Sen. Terrell McKinney, who chairs the board, said he was more focused on "transparency" and getting firm financial details from the development team led by the Omaha Economic Development Corp., Burlington Capital and Greater Omaha Chamber of Commerce.
He said he could seek a legislative change if necessary to extend the deadline on state funds, which are to be obligated by the end of 2027.
"I still have a lot of concerns, especially with this project. We'll leave it there," McKinney said during a special board meeting during which the development team presented an overview of its plan.
'Disturbs me'
At one point, Michael Maroney, OEDC executive director, said he was disturbed by what to him appeared to be distrust of the nonprofit he leads and that has worked since 1977 to bring economic development to North Omaha.
"It's almost as if we're not being trusted with public funds, and that kind of disturbs me," Maroney said in response to a query by Thomas Warren, Mayor Jean Stothert's chief of staff.
The at-times tense exchanges were the latest turn in the quest for the business park project that was funded via legislation shepherded by McKinney and State Sen. Justin Wayne, who both represent areas of North Omaha.
In January, Gov. Jim Pillen and Stothert announced the nearly $90 million award to the OEDC-led team for preparation of the business park, which must be within two miles of a major airport. Wayne and McKinney were not present at that event. They have been critical about the process and by what they considered a lack of community input early on.
Both senators, seeking more local control over public funds coming into North Omaha, supported the creation of the Inland Port Authority to oversee growth in a 300-acre zone that is to include the business park.
The two lawmakers also pushed for legislation that requires a letter of support from the Inland Port Authority before developers can access the state funds.
Meanwhile, the developers' plan to clear a swath of land for the business park, on about 160 acres north of Carter Lake and west of Eppley Airfield, also has prompted an outcry from people who live on that property. OEDC has said it will not force any residents to sell their homes.
Historical viewpoint
Thursday, Wayne appeared before the board to provide historical perspective on the business park idea and potential for development around it. The project, he said, was designed to be a catalyst for growth and jobs for a community disproportionately impacted by poverty and neglect.
He said in an interview that he hoped the board would focus on the overall vision for the 300-acre Port Authority district — which in addition to the business park is to include the future state-funded Innovation Hub and a planned $45 million city-owned sports complex.
"You need a vision first and an overall plan on how it all will interact," he said. The Port Authority board met for its first time in August.
Burlington's George Achola, in presenting an outline of the business park plan, noted that it includes a second site option. He said he has been in conversations with the owner of that site, west of Carter Lake near 16th and Locust Streets. That property does not contain any residences.
Much of Thursday's discussion revolved around timing for the release of funds that will allow developers to move forward.
Asked for a 10-year financial plan for the project, Achola said his team would get that to the board in about a week.
Board members questioned a $5 million cost for a relocation contractor to meet with residents in the proposed business park site to discuss a possible sale.
McKinney called the amount "crazy" and that he'd have to "see more justification."
A couple of other board members agreed.
"That price seems outrageous to me," said Michael Riedmann, a board member who is president emeritus of NP Dodge Real Estate.
Buy in
Representatives of the development team said they would revisit the cost estimate.
Achola told the board members he'd get answers to other outstanding questions. He said after the meeting that he was confident the plan will move forward.
Carmen Tapio, a North Omaha businesswoman who is also on the board, said she considered the OEDC/Burlington/Chamber team a partner.
"We are completely bought into this project," she said. "We all want to see it done."
