City staff says NC3 funding is advancing; Sarpy County Museum closure prompts city review of options

Bellevue City Council ยท March 5, 2026

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Summary

City staff told the Bellevue council the NC3 project has a $20 million state tranche in hand and a $30 million state tranche appropriated, with federal funding still pending; staff also reported the Sarpy County Museum has closed and is evaluating mitigation and relocation options after a reported $895,000 repair estimate.

City staff provided updates on the NC3 development project and the Sarpy County Museum during the council's administration reports on March 3.

On NC3, staff said the city has received a first state tranche of $20 million and expects a second appropriated state tranche of $30 million within about 30 days. A federal funding source in the neighborhood of $30 million is also being pursued, though staff said it is unclear whether the full federal amount or a smaller portion ("we're not sure 16 of that comes to us") will come to the city. Staff said lease agreements with a university for two floors are a key element that would reduce project complexity; if funding and required federal letters (from NDRC and STRATCOM) come through, staff estimated grading and site work could begin in roughly 60 days.

Regarding the Sarpy County Museum, staff reported the museum had closed and that county officials were seeking a move-out date. The city is concerned about the building's condition (possible mold) and the potential cost to mitigate the structure. Staff cited a company report estimating mitigation at about $895,000 and said the city plans tours and follow-up meetings with the museum board and interim leadership to consider options for keeping the museum in Bellevue or finding alternative arrangements.

Council members raised neighborhood access concerns related to NC3 and Normandy Hills; staff said the city would prefer to time a second access with the NC3 grading but would install a separate second exit late summer to fall if the larger project is delayed.

What happens next: staff will continue to pursue federal approvals and university lease agreements for NC3, and will tour the museum property, evaluate the mitigation report and discuss potential short-term storage or relocation options with county and museum leadership.