By Janice Podsada WORLD-HERALD STAFF WRITER
The City of Gretna would pick up more than half the cost of
redeveloping the Nebraska Crossing outlet mall under a proposal being
considered by city officials.
The city would provide $57.4 million
of the estimated $111.1 million in redevelopment costs through a
package of measures including tax-increment financing, a sales tax
rebate and occupation tax proceeds, according to a plan submitted by the
city's Community Redevelopment Agency that assumes the project would
create 500 full-time jobs.
The plan was reviewed at a Feb. 5 City
Council meeting, but a vote is pending a cost analysis. It was not clear
when the analysis would be ready or when the council would take up the
issue again. City offices were closed Monday.
Kent Seacrest, an attorney working for the city, said he was not
authorized to comment on behalf of the city. Mayor Jim Timmerman could
not be reached for comment.
The written proposal indicates that
certain incentives offered by city and state law for qualified
redevelopment projects would be needed for Nebraska Crossing and that
the project meets the requirements.
With public incentives in place, the projected rate of return on the
project would be 12.7 percent; without those incentives the project
would return less than half that, or 6.1 percent, the plan says.
As
outlined, the city's $57.4 million portion includes highway upgrades
and new public streets, additional land acquisition, demolition, site
work, tenant improvements and marketing costs.
The city's investment, as proposed, would include:
>>
$12.8 million in tax-increment financing, which uses part of the future
property taxes from a development to help pay for financing.
>>
$14.3 million in turn-back sales tax incentives, which would return 1.5
percent in local sales tax on transactions for 10 years within the
redevelopment area.
>> $26.2 million from an occupational
tax on businesses in the development of 1.95 percent on sales in the
area for up to 25 years.
>> $4.1 million of general obligation bonds paid back by residents through property taxes.
Two
years ago, in February 2011, Gretna residents approved diverting some
of the city's sales taxes to help redevelop the mall in a special,
vote-by-mail election. The plan was approved on a 1,342-to-93 vote.
State law allows cities to divert the city's portion of the sales tax,
up to 1.5 percent, for qualified redevelopment projects.
Under the
proposal, the city would pay about $10.3 million to upgrade utilities
and sidewalks, while developers would pay $530,000. Developers would
contribute $22 million for the mall's construction and the city would
kick in $2 million.
The cost of tenant improvements would be closely split between developers, $13.2 million, and the city of Gretna, $12.3 million.
The
city would pick up the bulk of the communication and marketing costs
for the mall — $15.5 million, while developers would contribute
$389,000.
The mall's developers — Frank Krejci of Omaha's Century
Development and Rodney Yates of Arizona-based OTB Destination LLC — said
last month that they had 25 committed tenants for the planned Gretna
shopping center, including Ann Taylor, J. Crew, Polo Ralph Lauren,
American Eagle, Gymboree, Kay Jewelers and a Scooter's Coffee.
Yates could not be reached for comment Monday.
As
proposed, the outlet mall at the intersection of Interstate 80 and
Nebraska Highways 6 and 31 would be demolished and rebuilt, housing more
than 60 tenants in 350,000 square feet and offering customers a fully
“wired” shopping experience, developers have said.
