Council hears detailed plan for downtown "Project O Street" TIF extension, bond ordinance and CIP amendment

City staff presented a package of redevelopment items for the downtown "Project O Street," including a redevelopment-plan amendment to extend tax increment financing (TIF) from 15 to 20 years, a bond ordinance that would allow up to $31.2 million in tax allocation bonds, and a related capital improvement program amendment that adds $29 million in TIF-funded capacity.

John Carlson, speaking for the mayor's office, told the council the items would allow the city to pull funding forward to complete a comprehensive set of improvements on O Street between Ninth and 20th (twenty-eighth) streets. "We're gonna improve infrastructure with new water main, smoother streets, upgraded sidewalks, safer pedestrian crossings, streetscape improvements, enhanced lighting, landscaping, public amenities," Carlson said, describing the package as a way to deliver the work faster and reduce repeated disruptions to businesses and residents.

The plan would remove Constellation Studios from the current redevelopment area (it already has its own TIF project), extend the TIF period for the district from the 2035 end date to 2040, and update the plan's "up to" financing numbers to reflect the extended TIF availability. Carlson said the legislation authorizing 20‑year TIF periods for "extremely blighted" areas (state law change referenced in discussion) already makes the project eligible for the extended period and that the proposed bonds would be structured over the remaining 15 years (2025–2040) to match the financing horizon.

Carlson said the financing approach is intended to minimize repeated mobilizations and reduce construction inflation: "We wanna use the TIF bonding to pull the money forward right now, go in, close down when it needs to get closed down, do the improvements, get finished, get back out." He also explained the CIP amendment would reflect $7.25 million in federal funding and other sources alongside the proposed bond financing.

Council members asked about the geographic footprint (one member said they were "surprised that it goes to 28th and P Street" and noted residential areas in parts of the boundary) and about business access and contractor security during construction. Carlson said access for foot traffic would "constantly be maintained" and described an outreach and engagement team and a single-call system to respond to questions. On security for contractor equipment, staff said they would work with contractors to ensure appropriate barricades and safeguards.

Todd Ogden, president and CEO of the Downtown Lincoln Association, testified in support of the package. "This project's long, long, long overdue," Ogden said, adding that the association would lead outreach to downtown businesses during construction and help channel complaints to the city's project team. Ogden emphasized the need to combine underground water-main work with streetscape improvements so businesses would not face repeated disruptions.

The presentation and public testimony focused on scope, financing, business access and outreach; city staff and bond counsel were present to answer technical questions. At the time of the transcript excerpt, the council had not taken a final recorded vote on the redevelopment plan amendment, bond ordinance or CIP amendment; staff indicated they were available for questions and for further public testimony.