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Council designates area around 70th and Mercy as community redevelopment area for potential TIF use

3281300 · March 4, 2025
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Summary

The council designated part of a census block near 70th and Mercy as a community redevelopment area after staff presented a study showing criteria under state law were met; the designation allows tax‑increment financing to be used for eligible projects within the area.

The Omaha City Council voted 6–0 to designate a portion of the city near 70 Second and Mercy as a community redevelopment area (CRA), enabling the use of tax‑increment financing (TIF) for redevelopment projects within the designated boundary.

Why it matters: A CRA designation is a prerequisite under Nebraska state law for TIF assistance. City planners recommended the designation based on analyses of income, unemployment and building age, and the designation was supported by the City Planning Board and the TIF Committee.

Staff presentation: Don Seaton of City Planning said the city launched a CRA study at the request of developer Urban Village, which proposed redevelopment of a vacant, damaged former hotel. Seaton said the study focused on Block Group 3 within Census Tract 6806 and that the planning department recommended designating only the portion shown in the staff study — excluding the cemetery, the hospital campus and an established single‑family neighborhood — as the CRA.

Seaton described key metrics in the staff study: per‑capita income in the block group was cited at about $15,600 versus roughly $40,000 citywide, the unemployment rate was cited at 19.4 percent in the staff presentation, and the average structure age was roughly 50 years — metrics the department said meet state thresholds for designation. During public comment, speakers questioned the unemployment figure and urged careful legal compliance; Council Member Harding and staff said the department used the five‑year American Community Survey (ACS) data required by state guidance and that they stood by the numbers.

Public comment and council discussion: Some nearby property owners and residents spoke either in favor of designation (citing redevelopment opportunities and community uses) or in opposition (questioning whether the area is blighted and urging the city to address other blighted areas first). Andrew Adams and Larry Storer sought clarification on the data; staff said the city compared its figures with the State Data Center at UNO.

Council action: After staff answered questions and defended the methodology, Council Member Harding moved to approve the designation; the motion passed by roll call 6–0.

Next steps: CRA designation allows project developers to apply for TIF assistance in the area; any TIF proposal would still require separate review and approval by council and applicable committees.