Papillion council approves purchase agreement with Urban Waters LLC for long‑delayed redevelopment site

The Papillion City Council on Jan. 7 approved terms of a purchase and sale agreement with Urban Waters LLC for a long‑discussed public works redevelopment site, voting 5-0 to authorize the agreement’s terms while preserving multiple contingencies.

The approval, recorded as Resolution R25-0016, moves the city and the buyer closer to a sale that city leaders said will help the developer secure financing and signal city intent to proceed, but does not complete entitlement steps such as zoning, planning approvals or tax‑increment financing (TIF) agreements.

“I’ll note this is a little unusual item because I think it's one of the first times we've ever done that some little bit for the public,” Mayor Black said as the council considered the purchase agreement. He said the city and buyer view the purchase agreement as a way to give the prospective developer assurance that the land can be sold so the buyer can pursue financing, and to signal intent to the planning commission and redevelopment committee.

Councilman Glover moved approval of the resolution; Councilman Stuebbe seconded. The council voted 5 ayes, 0 nays.

City staff and the council described a lengthy history behind the redevelopment effort. The council said the property has been the subject of redevelopment discussions for five to seven years, slowed in part by COVID‑era delays, proposed changes to flood maps and market conditions. Officials said the original developer chosen after a request for proposals continued to express interest and later worked with staff on site planning and possible TIF arrangements.

Council members noted the purchase agreement contains multiple contingencies that must be satisfied before closing. Those contingencies include entitlement approvals such as zoning changes, planning commission signoffs and TIF agreements. “You'll have a lot of votes prior to closing,” Mayor Black said.

A representative of the purchaser was present at the meeting. When a council member asked whether the land currently generates tax revenue, the purchaser’s representative replied, “It's got a 0 valuation right now. So by giving TIF financing, we're not per se giving anything up in terms of tax revenues,” and another council member confirmed that without current tax receipts the city is not currently receiving taxes from the site.

Council members and staff also described the property as within a blighted area, which they said is a factor in TIF eligibility and in the council’s appraisal of redevelopment incentives.

The motion passed unanimously. Council members said additional votes will be required on zoning, planning and TIF agreements as the project proceeds through the entitlement process.