Council nixes one TIF, passes another

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BY DEENA WINTER / Lincoln Journal Star

The City Council seems to be losing its taste for some tax increment financing projects.

On Monday, it unanimously voted not to approve TIF, an urban renewal financing tool, for a project off West O Street, and narrowly approved, by a 4-3 vote, its use near 10th and Van Dorn streets.

The council rebuffed a proposal by the Urban Development Department to use TIF for landscaping and new sidewalks abutting new Capitol Cold storage buildings at 301 S.W. 32nd St. because the buildings already are built. They found it hard to meet the state’s requirement that “but for” the financing tool, the project wouldn’t fly.

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At 10th and Van Dorn, Republicans were uneasy about using TIF to make sidewalk, alley and trail improvements because the developer didn’t want any of the city’s “free money.”

B&J Partnership plans to build a retail and office park in the area bounded by Ninth, 10th, Hill and Van Dorn streets, but declined TIF, though it agreed to allow the city to use the increase in property taxes to make public improvements to the area.

Republicans wondered how the project meets the “but for” test. City officials argued TIF was intended to help revitalize old, blighted areas.

Councilman Jonathan Cook fought to keep the TIF, saying it would send a terrible message if the council declined to use the tool in a clearly blighted area.

Councilwoman Robin Eschliman said it felt like the city was “making a grab” and headed down a “slippery slope.”

However, Councilman John Spatz joined Democrats in supporting the redevelopment plan, which passed 4-3.

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.