Two lawmakers want Nebraska to have less control of North Omaha economic development | Nebraska Examiner

OMAHA — More than 300 acres near Omaha’s airport would be designated an inland port district and led by a new body of mayoral appointees with powers to acquire, develop and manage property for economic development.

Put forth by Mayor Jean Stothert’s administration and backed by two North Omaha lawmakers, the plan showed up as the last of 98 items on this week’s City Council agenda.

Its first public airing will be next Tuesday.

If green-lighted by the council, State Sens. Terrell McKinney and Justin Wayne said they’ll ask the Legislature to redirect at least $120 million of funds from the Nebraska Department of Economic Development to the governing board selected to oversee the new inland port district.

Both lawmakers have expressed frustration with DED’s attention to delivering economic recovery funds to North Omaha projects.

They believe that the proposed inland port district, to be governed by a nine-member board of Omaha residents, would be more effective in offering local control and spurring business and job growth.

“We just need more focus right now,” said Wayne. “DED is all over the state. We’ve got to focus.”

Said McKinney: “North Omaha deserves an entity that is dedicated to steering its future forward and entirely focused on maximizing the impact of these once-in-a-lifetime dollars.”

‘Critical for the future of North Omaha’

The $120 million that Wayne and McKinney want redirected includes the already earmarked $90 million for a business park and $30 million for an innovation hub, both of which are to be within the district boundaries but have yet to materialize.

Another state-funded project planned within that area is a $35 million multipurpose facility. McKinney said he and Wayne would like to see that under the management of the new entity as well.

“These investments are critical for the future of North Omaha and cannot fail,” Wayne said. “DED’s approach to programming in the area has not been coordinated, and currently there is no requirement that any proceeds of the funds be reinvested into North Omaha.”

Among the inland port authority powers are the ability to issue and sell revenue bonds to construct buildings and infrastructure within the zone. The board can pledge revenue derived from the sale or lease of property within the district to pay off the bond debt.

It also can acquire rights-of-way, employ people and is expected to recruit businesses to build up the district.

Separate from the inland port process, McKinney said, is the roughly $225 million in state grants that has yet to be distributed to North and South Omaha for economic development projects. 

DED has said that it hopes, by the year’s end, to announce most of those North and South Omaha grant recipients, which will come from a pool of about 365 groups that applied for funding under the Nebraska Economic Recovery Act of 2022.

As for the proposed inland port district, City Council President Pete Festersen said he is supportive. He sees it as a mechanism that can help secure state appropriations and create industrial sites and jobs in the target area within a few miles of the airport.

City Councilwoman Juanita Johnson, who represents North Omaha, said she was not provided information beyond the proposal submitted to the council, and is looking forward to collecting more. She said she is wary that the governing board is to be appointed by the mayor, subject to council approval. To date, she said, many city boards lack diversity.

“Given the fact this is in my district, I am very much concerned about that,” said Johnson.

A span of more than 300 acres

According to City Council documents, the proposed inland port district would cover more than 300 acres around Eppley Airfield.

The creation of such a district and governing board is guided by the Municipal Inland Port Authority Act, which was led by Wayne and passed by the Legislature in 2021.

As many as five inland port authorities are allowed across the state under the law. Fremont and Hershey have already designated inland ports.

A twist: The DED must endorse the Omaha designation, said McKinney and Wayne.

Said McKinney of DED: “If they’re feeling like they’re overwhelmed, why not relieve some of the burden?”

When contacted Wednesday for comment, DED officials referred a reporter’s questions to Gov. Jim Pillen’s office.

Wayne and McKinney have called on Pillen to support the reappropriation of funds from DED to the City of Omaha’s inland port district and its board. Wayne said he met with the governor’s staff Tuesday and was told the governor would get back to him.

Pillen’s office did not respond Wednesday to a reporter’s questions.

Tools to spur growth

McKinney and Wayne noted that inland port authorities have access to economic development tools and resources that can leverage further investment.

Indeed, part of their purpose, according to the council documents, is to provide tools to acquire and develop large shovel-ready commercial and industrial sites, and to provide a location for major companies wanting to locate or expand.

The proposal before the council lays out other various responsibilities and powers. Among them is the ability of the inland port authority to establish and charge fees to businesses and customers that use services offered by the district.

The board can acquire, own and lease real estate in the district. But it does not have the power of eminent domain. 

Wayne said he foresees a key benefit of an inland port board to be as a central organizer of multiple projects coming down the pike. 

“We’ve got the business park, I-Hub … we can’t have six different organizations trying to do it. It needs to be coordinated.”