Bellevue pitches Bellevue Bay indoor water park as an economic engine, financed by Good Life District tax

Harrison Johnson, Bellevue's economic development director, told the City Council on Aug. 19 that site work for the proposed Bellevue Bay indoor water park is under way and that the city plans to use a Good Life District occupation tax and bond proceeds to finance the first phase of the entertainment district.

Johnson said the city recently received a permit approval from the Nebraska Department of Transportation to remove a surcharge that allows compaction work for footings and foundations. He said pipeline relocation by Northern Natural Gas is also underway to align utility infrastructure with Tenth Street as part of the site work.

"We recently got approval with the NDOT," Johnson said, pointing to progress on the basic site compaction and foundation work. He told council members the first 30-acre phase will include the water park, two hotels already under contract and two retail bays.

Why it matters: Johnson said the district is intended to broaden Bellevue's tax base and provide property tax relief over time by capturing visitor spending and commercial activity. He presented revenue estimates meant to show how the district would cover debt service and city services.

How it would be financed and what the city expects

Johnson said the city will use the Good Life District's occupation tax, a local occupation surcharge meant to replace part of the state sales-tax reduction, to help pay bonds and cover project debt. For Phase 1 (the 30-acre parcel and water park) he gave the following estimates: $5,570,000 in annual district revenue and roughly $2,400,000 in annual net revenue from the water park operation.

"We estimate for phase 1, which includes the water park, 2 hotels which we already have secured, and then 2 retail based centers at $5,570,000 annually for just that phase 1 30 acre parcel and the water park is projected to get roughly $2,400,000 annually in net revenue," Johnson said.

Johnson told council members the $2.4 million figure is conservative because it came from a Hotel Leisure Associates study based on 2020 numbers; he said inflation since 2020 would likely raise the figure. He also described how retail revenue was estimated by using national retail sales-per-square-foot averages but applying a conservative $250-per-square-foot assumption.

Timeline, scale and regional reach

Johnson said the city hopes the first 30-acre area will be constructed and operational within about five years and that full build-out of later phases could take 10 to 15 years. He projected a 25-year macroeconomic contribution of roughly $9.3 billion in wages, salaries and benefits for the larger 200-acre concept.

Traffic, parking and prices

In response to council questions, Johnson said the city has completed a traffic study and plans traffic signalization off Highway 75 and along Tenth Street. He said initial Phase 1 parking will be roughly 500 stalls and that the water park's maximum capacity will be about 1,500 people at any one time; the two hotels will total about 300 rooms.

On pricing, Johnson offered current market comparables: a single-day family pass in today's dollars at comparable indoor parks runs about $55'$65; a summer season family pass he cited at about $350'$400 in today's dollars, with final prices to be set closer to opening and adjusted for market and inflation.

Questions and next steps

Council members pressed Johnson for conservative assumptions and traffic mitigation details; Johnson cited the Hotel Leisure Associates study and conservative retail assumptions as the bases for the projections. He said the city is evaluating whether to sell individual parcels to private developers or to contract with a master developer; the city currently owns roughly 70 acres of the land discussed and is preparing plats and bid materials.

No formal regulatory action on the water park occurred at this meeting. Johnson said the water park and related infrastructure appear in the preliminary capital plan presented later in the meeting and that bond proceeds are being considered as one funding source for capital work.

Sources and speakers

The presentation and quoted figures are drawn from the Aug. 19 staff presentation by Harrison Johnson and the question-and-answer exchange recorded in the council's public meeting.