Planning commission backs text amendment to allow smaller units for workforce housing

The Bellevue Planning Commission on July 24 approved a text amendment to Section 5.17 of the subdivision overlay that would allow the Planning Services (PS) overlay to relax minimum unit-size requirements to encourage workforce housing. The commission’s approval forwards the amendment to City Council for a public hearing on Sept. 2, 2025.

The amendment was prompted by an application associated with a proposed multifamily development presented by representatives of Great Lakes Capital. Brent Beller, speaking for the applicant, described a proposed 96-unit project with a unit mix of 22 one-bedroom units, 45 two-bedroom units, 19 three-bedroom units and 10 four-bedroom units and said the developer seeks the option to reduce the PS-overlay minimum unit size from 800 square feet to 675 square feet. “We are trying to provide what NYFA encourages,” Beller said, adding that the development aims to serve workforce households and that construction costs have risen to roughly $30,000,000 for the project.

Why it matters: Bellevue and other Nebraska cities have been directed by state law to increase workforce housing, and staff materials note the city’s Affordable Housing Action Plan and state reporting requirements. The commission’s approval of the text amendment allows density to be considered case by case under the PS overlay; site plan approval would still be required at City Council for specific projects.

Supporting details: Beller explained distinctions the team uses between “low-income” housing (about 30% of area median income, or AMI) and “workforce” housing (roughly 30%–80% of AMI). In testimony he used Metro Omaha AMI figures cited in the presentation: AMI $113,000; roughly $67,000 at 60% for a single individual and about $90,000 at 80% AMI. He also stated that the developer initially proposed 120 units but reduced the proposal to 96 units after discussions with staff to make financing work, and that tax increment financing, low-interest bonds and tax credits are part of the financing strategy.

Concerns and process limits: Commissioners who spoke supported allowing higher density as part of an overall zoning update, but emphasized that PS-overlay approvals and individual site plans give the city a chance to review whether specific locations are appropriate for greater density. Staff also noted that two letters related to the application were received (one from Freedom Village and one hand-delivered by a person identified as Pillen) and were distributed to commissioners prior to the vote.

Outcome: The motion to approve the text amendment passed at the Planning Commission; the item will move to City Council for a public hearing on Sept. 2, 2025.

Looking ahead: If City Council approves a zoning change and associated site plan in the future, the reduced minimum unit sizes under the PS overlay would be one tool available to enable the kind of unit mix the applicant described.