Stay up-to-date on the latest in local and national government and political topics with our newsletter.
Two redevelopment agreements would use a total of nearly $10 million in tax-increment financing — one for apartments where the Bishop Heights shopping center is and another for an apartment building near 48th and Holdrege streets.
Plans for redeveloping the Bishop Heights shopping center include three phases — and three different developers — that will ultimately include building about 230 luxury apartments, turning the old Shopko that anchored the shopping center for years into new commercial space, possibly with a 150-room hotel, adding new office space and making significant trail enhancements along bike trails that run along the east and north portions of the property.
On Monday, the Lincoln City Council considered a redevelopment agreement for the first phase — the apartments and some of the trail improvements, which will cost about $48 million and would use $6.5 million in tax-increment financing.
Tax-increment financing, or TIF, allows developers to use future property taxes generated by projects to pay for certain upfront costs.
The entire project will cost nearly $90 million, and will redevelop the shopping center, which has remained nearly vacant since Shopko closed in 2019 and the retailer declared bankruptcy. A Wells Fargo bank branch and an Arby’s remain there, and the fast-food restaurant is interested in updating its building.
Dan Marvin, director of the city's urban development department, said discussions about the project began before the pandemic.
"These things don't magically get put together," he said, especially a project like this that includes more than one developer.
EPC Real Estate Group, an Overland Park, Kansas-based company, plans to build a five-story, 230-unit luxury apartment complex.
RED Development, which owns the building that used to house Shopko and other businesses, plans to demolish it and develop either 70,000 square feet of commercial space with retail shops, restaurants and offices, or 50,000 square feet of commercial space and a hotel.
White Development Co. owns the former U.S. Bank branch building on the northwest part of the site, which it plans to demolish and develop into one larger office building or two smaller ones, with a maximum of 45,000 square feet of space.
During a public hearing on the redevelopment agreement for the apartments, Marvin said that instead of including affordable units in what will be a high-end development, the developer agreed to contribute $2,500 per unit — what will be about $500,000 — for the city to use for affordable housing. It could be used to rehab existing apartments or for new development.
Two bike trails run adjacent to the land, and developers plan to make significant trail upgrades, including adding three new sidewalk connections to both the Helen Boosalis and Rock Island trails from the apartments and commercial areas, additional landscaping and building shared trailhead parking stalls and installing bike racks along the south side of the property, where the Rock Island Trail runs along Nebraska 2.
TIF dollars will be used for those trail enhancements, including additional connections to the trail that will encourage people to come into the commercial parts of the development, Marvin said.
Some neighbors have expressed concerns about the potential for increased traffic, but a traffic study submitted with the plans shows that while traffic would increase in the morning, it would drop by 28% in the evening and by 18% overall.
The council also considered a redevelopment agreement for 115 market-rate apartments at 48th and Aylesworth streets, the second phase of a project that includes another apartment building just to the south at 48th and Holdrege streets.
The redevelopment agreement includes using $3.2 million in tax-increment financing for the second phase of the project, which includes the apartment building that will be bounded by 48th, 49th, Aylesworth and Martin streets.
It will include 23 studio apartments, 19 alcove apartments (with more separation for beds), 45 one-bedroom and 28 two-bedroom apartments. There also will be 122 surface parking stalls and nine single-stall garages.
The apartment building will look similar to the apartment building just to the south, but will have apartments, not commercial space, on the first floor, because there’s more demand for apartments than commercial space.
TIF dollars will be used for energy efficiencies, including solar panels, charging stations for electric cars and more bike storage, Marvin said. The developer also will work with StarTran to make improvements to the nearby bus stop, to encourage alternative modes of transportation.
The second phase will expand the planned unit development approved in 2016 for the first apartment building by a little more than 2 acres. The land now has a number of old commercial buildings on it and they will be removed.
The council will vote on both agreements Aug. 22.
LINCOLN, NEB. - 08/07/2022 - Arianna points to a rocket pop on a ice cream truck at Holmes Lake Park, Sunday, Aug. 7, 2022. NOAH RIFFE, Journal Star
Parade watchers race to collect candy thrown during the Wilber Czech Festival on Saturday.
Grammy award winning American blues singer Bonnie Raitt performs at the Pinewood Bowl on Tuesday.
Saltdogs third baseman Ryan Long (left) beats the tag as Gary SouthShore second baseman Michael Woodworth drops the ball on Monday at Haymarket Park.
Fair attendees ride a motorcycle-themed merry-go-round during the Lancaster County Super Fair on Sunday.
A 26-year-old man told Lincoln Police he was "beaten, burned with a blowtorch and branded" with the word "thief" after he was ambushed by two men amid a drug deal at a warehouse near Interstate 80 and 56th Street, Investigator Christopher Schamber said in an arrest affidavit.
Layla Karee (left) comforts Shireen Jardo Alhanto who begins to sob while speaking of her family both missing and deceased during a ceremony to commemorate the eighth anniversary of the Yazidi genocide on Wednesday in Malcolm. Alhanto lost two brothers, and 15 members of her family are still missing.
Nebraska quarterback Casey Thompson claps hands during practice Monday at Hawks Championship Center.
Nebraska Wesleyan athletic training student Sabrina Ochterbeck is placed in an ice bath by athletic trainers (from left) Terry Adair of Bryan Health, Tyler Rediger of Lincoln Southeast, Bryan Butler of Lincoln Northeast and Charity Rainey of Lincoln High on Friday. With fall practice set to begin Monday, athletic trainers reviewed how to prevent and treat heat illnesses.
Artist Toan Vuong is shown on his front porch with his compositions created using date stamps. Vuong will participate in Porch-Art-Palooza, a sprawling art sale on 30 front porches in the Near South, Everett and South Salt Creek neighborhoods, on Sunday.
Luca Yeager slams down his mug after downing Kool-Aid in a quickest drinking contest, during the Kool-Aid Days Festival, at the Adams County Fair grounds on Saturday, Aug. 20, 2022, in Hastings. Thousands of “kids” of all ages gather to celebrate the invention of Kool-Aid®, Nebraska’s Official Soft Drink, by Edwin Perkins in 1927.
Lincoln Northwest High School students, including Noah Foreman (from right), Brohdy Ferguson and Delaney Ahl check out the cafeteria area Monday, Aug. 15, 2022.
Nebraska volleyball head coach John Cook observes the team's first practice of the season Tuesday, Aug. 9, 2022, at the Devaney Sports Center.
Drew Carlson celebrates after winning a competition during the Cornhusker Marching Band Exhibition at Memorial Stadium, Friday, Aug. 19, 2022.
Alex Kuepper rests in the shade after finishing the 150-mile race during the Gravel Worlds on Saturday, Aug. 20, 2022, in Lincoln.
Nebraska's Red team reacts after scoring a point during the Red-White Scrimmage Saturday, Aug. 20, 2022, at the Devaney Sports Center.
Workers remove the last few tiles of the Pershing Center mural, Friday, Aug. 12, 2022. The tiles will be stored until money is raised to restore and reinstall the 763,000-tile mural at another location.
Breckyn Erks observes a Lincoln Pius X football practice while hanging upside-down Tuesday, Aug. 16, 2022, at Pius X High School.
Work to demolish the home at 2636 Woodscrest Ave. began in earnest on Thursday, Aug. 11, 2022, to make way for a new home, which owners say will fit into the character of the historic neighborhood.
Anti-abortion demonstrators pray outside the Planned Parenthood clinic near 48th Street and Old Cheney Road on Tuesday, Aug. 9, 2022. A Planned Parenthood official said protest activity outside the clinic has surged since the Supreme Court ruling to overturn Roe v. Wade.
Tramesha Cruse poses for a photo at her restaurant, Lila Mae's Southern Kitchen and Lounge, Wednesday, Aug. 10, 2022.
A dog swims in the water during Dog Splash at Star City Shores sponsored by the Lincoln Parks Foundation and the Greater Lincoln Obedience Club on Sunday, Aug. 14, 2022.
A kayaker paddles on Holmes Lake on Wednesday, Aug. 17, 2022.
Nebraska's Jordan Zade (37) walks off the field after San Diego State scored in the final minute of the game, Thursday, Aug. 18, 2022, at Hibner Stadium.
CeCe Mlady (left), 4, and her sister Grace Mlady, 10, cheer as they try to get the attention of Husker players throwing gifts to the stand before a soccer game between Nebraska and San Diego State on Thursday, Aug. 18, 2022, at Hibner Stadium.
Lincoln Northeast's Micah Quirie kicks a field goal as teammate Trevor Vocasek holds the ball during practice Thursday, Aug. 18, 2022.
Lincoln Lutheran players gather around the hydration station during practice Wednesday, Aug. 17, 2022, at Lincoln Lutheran High School.
The Nebraska State Capitol on Wednesday, {monthameap} 24, 2022, in Lincoln, NE. KENNETH FERRIERA, Journal Star
WarHorse Gaming hopes to open the state's first licensed casino at Lincoln Race Course in September. Crews continue work to convert the horse race simulcasting space to a temporary gaming floor with 433 slot machines.
LINCOLN, NEB. - 08/26/2022 - Marcee Metzger of Voices of Hope poses for a portrait at the group's office, Friday, Aug. 26, 2022. NOAH RIFFE, Journal Star
Nebraska's Hayden Kubik (top, first right) celebrates with her team after scoring the match-ending point of a 3-0 win against Texas A&M Corpus-Christi on Friday at the Devaney Sports Center.
Mike Comstock picks up his daughter, Brooklynn Comstock, at the end of the first day of school at Robinson Elementary on Monday. The new school in northeast Lincoln opened two weeks late because of construction issues.
Friday's game between Lincoln Northwest and Ralston is seen through temporary fencing at Union Bank Stadium. It was the inaugural game at the stadium.
Kearney's Sawyer Schilke carries the ball as he narrowly avoids a tackle by Lincoln East's Connor Shelton on Thursday at Seacrest Field.
The family of Hulda Roper, including step-grandson Craig Roper (from left) and stepson Charlie Roper, talk with Lincoln Police Chief Teresa Ewins and Cedars president and CEO Jim Blue as the youth service organization names its conference room after Hulda Roper, the city's first female police officer.
Sen. Ben Sasse (from left), Rep. Don Bacon, Rep. Adrian Smith and Rep. Mike Flood attend the annual federal legislative summit on Thursday at Strategic Air Command & Aerospace Museum.
Mike Meyerle (left) and Steph Meyerle of Beatrice watch Nebraska play Northwestern on Saturday at McKinney's Irish Pub.
Wahoo coach Trina Christen hugs Jaiden Swanson the Warriors defeated Beatrice in eight innings Tuesday in Beatrice.
Lincoln Pius X players run through a banner before taking on Scottsbluff on Friday at Aldrich Field.
Lincoln East's Kooper Barnes dances with her teammates before the Spartans took on Norris in the LPS Classic on Saturday at Doris Bair Softball Complex.
Lincoln Southeast's Gunnar Gottula flips his hair back after taking off his helmet in the fourth quarter against Elkhorn South at Seacrest Field on Friday at Seacrest Field.
Lincoln Lutheran's Elecea Saathoff (3) tips the ball past Waverly defenders Thursday at Lincoln Lutheran High School.
Reach the writer at 402-473-7226 or mreist@journalstar.com.
Stay up-to-date on the latest in local and national government and political topics with our newsletter.
Margaret Reist is a recovering education reporter now writing about local and county government and the people who live in the city where she was born and raised.
Email notifications are only sent once a day, and only if there are new matching items.
"This case, your honor, is about his mental illness, it is about how he was coping and dealing with his mental illness," Adam Schutte's attorney told the judge.
Two downtown bus stops will move across the street to get out of the way of Gold's redevelopment, city fees bring in millions, and Lincoln's parking guy gets an award.
A proposal to add sexual orientation and gender identities as protected civil rights categories drew more scrutiny and praise than other proposed charter amendments during a public hearing.
The Lincoln City Council found that plans to redevelop 7 acres along the MoPac Trail between 66th and 70th streets into an animal clinic, 29 town houses should move forward.
The city's definition of family -- highlighted by a sober living home seeking a zoning exception -- is similar to other college towns where students often live together near campus.
The Lincoln Skatepark Association is holding an open house Sept. 18 to explore plans for a destination skate park in Lincoln.
Get up-to-the-minute news sent straight to your device.