OMAHA, Neb. (KMTV) — Avenue One will be Omaha's Good Life District. Here, state sales tax would be 2.75%. In order for that to happen Omaha voters will decide in November if a Good Life Redevelopment Fund is established.
- Avenue One is estimated to be a $1.4 billion investment and create over 4,000 new jobs.
- We spoke to State Senator Lou Ann Linehan and Omaha City Councilman Brinker Harding.
- "So that was part of it is to expand our retail and what's available in Nebraska, which in turn would increase our sales tax because we're losing a lot of sales tax taxable sales to other states."
BROADCAST TRANSCRIPT:
To get Omaha’s Good Life District Avenue One approved, it’s gone from the developer to the Nebraska Department of Economic Development (DED) back to the Omaha City Council and the next step is you and your vote in November.
Avenue One is a new development with retail, housing, office space, and green space. When finished will encompass 200 acres in fast-growing west Omaha.
The DED tells us it is estimated to be a $1.4 billion investment and create over 4,000 new jobs.
The state sales tax rate in a Good Life District is reduced by 50%, so it would be 2.75% on purchases made in these districts.
The DED says that tax would continue to go to the state and the developer would not receive any portion of the tax collections.
In order for that to happen it has to go through a vote of the people to establish what would be called the Good Life Redevelopment Fund.
But why is the state willing to part with tax revenue while trying to cut property taxes?
State senator Lou Ann Linahan says the goal is to bring more retail to shoppers so they stay in state.
"So that was part of it is to expand our retail and what's available in Nebraska, which in turn would increase our sales tax because we're losing a lot of sales tax taxable sales to other states,” said Senator Linehan.
Omaha City Councilman Brinker Harding says this fund would act as a pass through from the city through revenue bonds to help pay off some of the portions of development.
"What amenities or, or what public improvements or what part of the development is included in that, which will then be paid for by those funds by those additional sales tax funds that the state is giving up,” said Harding.
He says there is no risk to the city and there's a benefit for the people.
"And it will also be a magnet to, to draw in visitors from outside the city of Omaha again with those first to market retailers and some of those opportunities. I think that's gonna be part of the draw,” said Harding.
Omaha voters will decide at the General Election if the funding will be there for this Good Life District in the city’s near future.
