Sale of Lerner Building approved

A development group has stepped forward to buy downtown's Lerner Building at 16th and Harney Streets right as the City of Omaha is trying to revitalize 16th Street.

The City Council on Tuesday approved the sale of the city-owned property for $157,500 to Dicon Inc., an Omaha construction company working with Seldin Co. on a redevelopment project.

The developer is considering a retail, office and apartment project, the city says. Along with renovating the former home of the Lerner Shops clothing store and Brodkey Jewelry, the developer also is looking at the possibility of building additional floors onto the two-story building.

However, Randy Lenhoff, Seldin's president, said it was too early to discuss specifics on the project. Still, he said he believes the development team will come up with a plan that people like.

“We're excited about that corner,” he said Tuesday.

The city has owned the property since 1995, when it received the building as a donation.

As recently as 2005, the Lerner Building was targeted for a grocery and condos. Despite previous development plans, the building has sat empty for years.

At the same time, the 16th Street corridor downtown has become run-down. But by next year, the city and major anchors along the corridor are hoping to start construction on a potential $6 million makeover of the streets, parking, sidewalks and landscaping.

With that project on the way, Planning Director Rick Cunningham said he will be happy to see the building redeveloped.

The developer is under a two-year deadline to start the project or the property will revert back to the city.

The city included that provision in the purchase agreement following the failure of the WallStreet Tower project, which saw the city lose ownership of the former Union Pacific headquarters site downtown with no development to show for it.

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