City officials approved 25 of 35 tax increment financing (TIF) applications in 2021, according to an annual TIF report approved by the Omaha City Council Tuesday.
From a new downtown Omaha skyscraper to the construction of a $220 million casino, massive projects have put 2022 on track to be a record-breaking year for tax-increment financing loans in the city.
Upward of $105 million in tax-increment financing, or TIF, has been approved in 2022, already exceeding the total in all of 2021.
The $105 million was from eight redevelopment agreements approved by the Omaha City Council, a key step in the city’s TIF application process. The count does not include redevelopment plans approved by the City Council, a step taken before an agreement is considered.
Used in Omaha since 1980, TIF is a financing tool regularly sought in local development efforts.
Proponents of the economic incentive champion it as a tool to encourage private investment in areas that need housing and revitalization.
People are also reading…
Critics contend that the incentive is used too generously and is too often granted for developments that don’t contribute to civic improvements or affordable housing needs.
From 2015 to 2021, total TIF approvals averaged $42.3 million per year.
Since 2000, the highest single-year total was in 2016. Thirty projects yielded nearly $70 million in TIF loans that year.
In 2021, a total of 25 projects were approved for about $41 million in TIF loans, according to an annual report from the city.
In 2022, two developments make up the brunt of TIF projects approved so far.
An Omaha casino project accounts for $17.5 million.
Warhorse Gaming Omaha — a subsidiary of Ho-Chunk Inc., the economic development arm of the Winnebago Tribe of Nebraska — got the green light in 2021 for a planned $220 million renovation and expansion of the current Horsemen’s campus near 60th and Q Streets.
A redevelopment agreement for the project was approved by the City Council in January.
The project looks to create a “dynamic casino, racing and entertainment complex” that would include 1,200 gaming machines, live and simulcast horse racing, gaming tables and a stage for live entertainment, as well as a sports bar, food hall, coffee shop and central bar area, according to city documents.
A larger chunk of the $105 million comes from $68 million in TIF for the construction of a downtown Mutual of Omaha skyscraper.
That project, now estimated to cost $600 million, would reshape Omaha’s skyline and bring the Fortune 500 company to the current site of the W. Dale Clark Library at 15th and Douglas Streets in the heart of downtown.
Of the more than $68 million total TIF request, roughly $62.7 million would be for usable expenses. The rest would be from capitalized interest.
Also on track for this year is a redevelopment agreement that would finalize the largest TIF approval ever granted by the City of Omaha — a nearly $80 million TIF loan for the redevelopment of Crossroads.
Although the Crossroads redevelopment plan won city approval last year, it wasn’t counted in the 2021 TIF report because the project’s redevelopment agreement has not yet been approved.
Bridget Hadley, an economic development manager with the city’s planning department, said the project’s redevelopment agreement is in the works.
Under TIF, the developer of a city-approved project takes out a loan to help cover eligible redevelopment expenses tied to a project. The loan is paid back, generally over a 15- or 20-year period, by using the increased property taxes that are generated on the new development.
Normally, all property tax payments go to support schools, city and county government and other local tax-reliant bodies. But during the TIF period, the proceeds from tax payments are divided: Some tax money goes to local governments based on the valuation that existed before the improvements; the rest of the taxes, based on the added valuation from those improvements, are used to repay the TIF loan.
After the loan is repaid, all of the property taxes collected on the improved property start flowing to those local governments.
An additional three redevelopment agreements will be considered during the City Council’s June 28 meeting:
A 19-unit townhouse development near 54th and Leavenworth Streets has sought $1.65 million in TIF.
Another project that would construct an office building and warehouse space near 72nd and Grover Streets is seeking $390,000 in TIF.
And a $6.4 million project that would renovate a dilapidated building on North 24th Street into a theater is on track to move forward with $354,672 in TIF.
If all are approved, Omaha will roll into the second half of 2022 having already approved $108 million in TIF.
Also on the City Council agenda for June 28 is a redevelopment agreement that would create a special TIF district that would pay back the costs of designing and constructing a streetcar system.
If approved by council members, the agreement would allow for $354 million of funds from a special TIF district spanning the entire streetcar route, as well as three blocks north and south of the route. The TIF dollars would come from three streams within this special district:
New developments in the streetcar district would contribute 25% of their TIF proceeds. That element alone is projected to generate $218 million.
Using authority it has under state law, the city also plans to extend the timeline of already existing TIF projects along the route from the current 15 years to 20 years. Those five additional years of payments would generate an estimated $50 million.
The third part will come from existing properties that see increased valuations within the TIF district, raising $86 million.
The money would be used to pay back bonds issued by the city to construct the streetcar, a cost expected at $306 million.
TIF dollars collected beyond the $306 million needed for the streetcar would be earmarked for affordable and workforce housing solutions as part of the Urban Core Housing and Mobility Redevelopment Plan.
Our best Omaha staff photos & videos of June 2022

Oklahoma volunteer assistant coach Reggie Willits, left, Carson Atwood , far right, Kendall Pettis, comfort Trevin Michael after Michael gave up the winning runs to Ole Miss in the College World Series on Sunday.

Charles Schwab Field grounds crew member Alex Loosbrock uses a lawnmower to clean up the confetti after Ole Miss defeated Oklahoman 4-2 to win the College World Series on Sunday, June 26, 2022.

Ole Miss celebrates their win over Oklahoma in the College World Series on Sunday.

Oklahoma's Peyton Graham (20) stands in a strip of light during the Ole Miss vs. Oklahoma baseball game, the first of the championship series, of the College World Series in Omaha on Saturday. Ole Miss won the game 10-3.

Wyatt Martin, of Atlanta, celebrates the final out of the seventh inning during the Ole Miss vs. Oklahoma baseball game, the first of the championship series, of the College World Series in Omaha on Saturday. Ole Miss won the game 10-3.

A grounds crew member retrieves a beer from the outfield warning track during the Ole Miss vs Oklahoma College World Series game on Saturday.

Oklahoma's Kendall Pettis makes a diving catch in the ninth inning against Ole Miss during a College World Series game on Saturday.

Oklahoma’s Sebastian Orduno watches as Ole Miss celebrates a win in a College World Series game on Saturday.


Oklahoma's Peyton Graham poses for a portrait in the dugout before the finals of the College World Series on Friday.

Ole Miss fans react and the Rebels win the 2022 College World Series on Sunday.

Ole MIss' Dylan DeLucia celebrates Arkansas' Brady Slavens making the last out in the seventh inning during the College World Series on Thursday.

The five starters of the 1976 Cathedral High girls basketball team were, from left, Marjie Ducey, Nancy Soener, Eileen Halpine, Rose Smagacz Parfitt and Judy Howard. The Cathedral girls were named the unofficial state champions because a tournament didn’t exist in their sport after Title IX was slowly rolled out.

Arkansas' Zack Morris yells after inducing a pop out by Ole Miss' Jacob Gonzalez to win a College World Series game on Wednesday.

Arkansas' Hagen Smith throws a pitch against Ole Miss during a College World Series game on Wednesday.

Arkansas' Gabriel Starks throws a ball to some kids before their game against Ole Miss in the College World Series on Wednesday.

Beachballs set just on the other side of the outfield fence as the sun sets on Auburn and Arkansas as they play in the College World Series on Tuesday.

Auburn vs. Arkansas the College World Series on Tuesday.

Ole Miss fans Joanne Mitchell and Michael Combs check out their tickets after standing in line since early in the morning before a College World Series game on Sunday.

The Auburn bench looks on as Arkansas' Chris Lanzilli rounds the bases after a two-run home run during a College World Series game on Tuesday.

Arkansas' Jalen Battles forces out Auburn's Brody Moore while turning a double play during a College World Series game on Tuesday.

A deer looks back at a fallen tree on Terry Avenue near Sherry Drive in Bellevue, Nebraska on Wednesday. A storm came through overnight bringing high winds.

Rick Trapani clears out a storm drain after a car got stuck in floodwaters near 40th and Valley Streets in Omaha on Tuesday. Rain and hail from a storm pelted the area.

A sea lion swims under tree debris that washed into the Owen Sea Lion Shores exhibit at Omaha's Henry Doorly Zoo and Aquarium on Tuesday. A hail storm the night before shredded leaves of many plants in parts of Omaha, Nebraska, leaving piles of plant debris. "I am sure some of the animals were startled by the storm, like the rest of us, but they don’t mind the debris and 'messiness" as much as us humans. To a lot of the animals, the leaves and twigs, like in the photo with the sea lions, are considered enrichment and new things to explore, " said Dennis Schnurbusch, Senior Vice President and COO of Omaha's Henry Doorly Zoo and Aquarium

Jerry Swiercek uses a leaf blower to clear hail and leaves stripped from trees following a hail storm outside the home he shares with his wife, Annette, at 44th Avenue and F Street in Omaha on Tuesday evening.

Haydn Nichols, 9, rides the Musical Chairs ride during Taste of Omaha at Elmwood Park in Omaha on Friday.

Andrea Vanderheyden, the artist behind this community art project, ties a ribbon to help create a pride flag on the corner of the Ashton building on Tuesday to kick off the start to Pride month.

A man sprays down the roof of a neighboring building while also filming the scene of a three-alarm fire at Nox-Crete, near 20th Street and Woolworth Avenue, in May.

Flames shoot up at the scene of a three-alarm fire at Nox-Crete, Inc., 1415 S. 20th St on Monday.

Lighting can be seen behind the scene of a three-alarm fire at Nox-Crete, Inc., 1415 S. 20th St on Monday.

Drone photography after a three-alarm fire at the Nox-Crete chemical warehouse in Omaha on Tuesday.

Ben Crawford, a Native American Graves Protection and Repatriation Act assistant with the Winnebago Tribal Historic Preservation Office, watches as dogs search for the cemetery site.

Stanford gathers in the field before their game against Arkansas in the College World Series on Saturday.

Stanford 's Braden Montgomery can't catch this triple on the first pitch of the game off of the bat of Arkansas' Braydon Webb in the College World Series on Saturday.

Arkansas' Robert Moore, left, and Jalen Battles celebrate their win over Stanford in the College World Series on Saturday.

Texas Assistant Coach Troy Tulowitzki waits in the dugout before their elimination game against Texas A&M in the College World Series on Sunday.

Texas' Dylan Campbell slides into second base on a steal attempt knocking the glove off of Texas A&M's Ryan Targac in second inning of an elimination game at the College World Series on Sunday.

Texas' Douglas Hodo III walks up the tunnel at Charles Schwab Field before the Longhorns’ game agains Texas A&M on Sunday at the College World Series.

Texas head coach David Pierce and Texas A&M head coach Jim Schlossnagle chat before their College World Series game on Sunday.

The Chicken In A Pickle features a bread and butter pickle aioli, crinkle cut dill pickles, and fried pickles. It is one of the items available at this year's College World Series.

People cool off in the water feature at Elmwood Park on Sunday. High temperatures hit Omaha Sunday and are expected to continue through the week.

Maddie Breathnach, 22, chants with the crowd at Friday's Roe Response Rally. The rally followed the Supreme Court decision that overturned Roe v. Wade, taking away the constitutional right to an abortion.

Ole Miss' Dylan DeLucia pitches against Auburn in the seventh inning of the College World Series on Saturday.

Ole Miss celebrates their national championship after the second game against Oklahoma during the College World Series Finals on Sunday.
jwade@owh.com, 402-444-1067