48th & O negotiations slowed on north side

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BY DEENA WINTER / Lincoln Journal Star

Lincoln - Negotiations with a developer interested in building a grocery store, bank and strip mall on the north side of the intersection of 48th and O streets have been stalled by a financing gap.

In August, the City Council declared blighted 42 acres bounded by 48th, 52nd, R and N streets, making the area eligible for city-assisted redevelopment and tax increment financing.

The city is negotiating with developers to build a Hy-Vee, Pinnacle Bank and strip mall on the north side and with another developer to build a West Gate Bank, Braeda Fresh Express Cafe and Walgreen’s on the south side, according to the mayor’s chief of staff, Mark Bowen.

While negotiations on the south side are progressing quickly and nearing completion, the north side has run into a financing gap that the city hoped to fill with federal New Market Tax Credits.

A few weeks ago, the City Council authorized the Urban Development Department to apply for the tax credits, which are designed to trigger investment in low-income areas.

But the city learned Friday that the area doesn’t qualify for the program, which could slow negotiations on the north side as the city looks for other revenue sources.

“We’re back on the drawing board looking for other sources,” said the city’s economic development coordinator, Darl Naumann.

Once a redevelopment agreement is reached on the south side, the council must give its stamp of approval.

Councilman Dan Marvin said the latest development may mean the city has to reexamine its restrictions on access to the property due to safety concerns. Marvin said the north side may also have to be developed in parcels, rather than as a whole.

The council will get another update on the situation in early October.