Now
Rain Fog/Mist
51°
High
63°
Low
42°
Full Forecast

Jobs

Cars

Homes

Rentals

Alerts

Subscribe
Home > News > Local
Bookmark Us   •   Make Us Your Homepage

Council approves redevelopment of old Rosewood Inn

Comments 34 comment(s)  
E-mail Story E-mail Story
Print Story Print Story
Share  Share
Text Size: 
Tools Sponsor

BY DEENA WINTER / Lincoln Journal Star

Monday, Jul 14, 2008 - 04:21:35 pm CDT

A now-demolished hotel at an Interstate entryway to Lincoln will soon be redeveloped with a little help from the city, under a redevelopment approved by the Lincoln City Council on Monday.

The former Rosewood Inn — a vacant eyesore that sat vacant for about eight years until being largely demolished recently — has been the subject of many citizen complaints in recent years.

But now the council has approved an agreement to help redevelop the former hotel at 2301 N.W. 12th St., which had fallen into disrepair and had been the target of graffiti, vandalism and arson.

Story Photo
The Rosewood Inn came down June 19 after more than a decade of being an eyesore at 2301 N.W. 12th St., southeast of the Lincoln Airport. (LJS file)

It is visible from Interstate 80.

Speedway Properties has owned the hotel since 2003 after buying it out of bankruptcy. Prior to Speedway’s purchase of the building, it already had been vacant for three years.

Now Speedway intends to redevelop the site into an upscale strip center with retail and office uses and a fast-food restaurant.

The council approved diverting up to $300,000 in tax increment financing into the roughly $2.2 million project, although additional development could push the total project cost higher.

TIF is an urban renewal financing tool in which the additional property taxes generated from the redevelopment are used to help pay for public improvements. In this case, the TIF money could be used to help rehabilitate the building, build sidewalks, relocate utilities and cover other costs.

Urban Development Department Director David Landis said the project will enhance a highly visible entryway to Lincoln. He said the project truly meets the “but for” test laid out in state law. In other words, “but for” the city’s contribution of TIF money, the project would not happen.

Mark Hunzeker, an attorney representing B&J Partnership, said B&J originally planned to rehabilitate the hotel, until it was stripped of plumbing, wiring and other metals.

“I can assure you that but for the availability of TIF, this project would not be going forward as it is today,” Hunzeker said.

Instead, the old hotel likely would have been converted into mini-warehouses, with storage space for RVs. After discussions with the city, B&J agreed that was not the most “attractive use” for an Interstate entryway.

Councilman John Spatz said he’s glad to see the hotel come down, saying Lincoln “desperately lacks commercial eye candy” along the Interstate to entice travelers to stop.

In other business, the council voted to request the City Audit Advisory Board audit the city’s fund account balances to make sure they’re at appropriate levels. Councilman Dan Marvin proposed the audit, in light of the recent decision by the mayor to dip into a $10 million special assessment fund that hasn’t been used much in recent years.

Councilman Doug Emery said the audit would help limit the amount of “found money” that crops up in the future, which he said undermines the city’s credibility.

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


$1 Sunday Delivery - Subscribe Today!
Local > Back to Top of Story

Post Your Comment

Standards and Rules
All posts to JournalStar.com are subject to our Terms and Standards.
Your posted comment will appear after it has been approved.
Frequently asked questions about story commenting.
(optional)
   
Hide Comments Hide Comments   Newest First Newest First  
Soylent Green wrote on July 14, 2008 12:59 pm:
" Are you kidding me? An upscale strip mall in this area? Just who do they think is going to shop there? It is too far from anything else plus that parcel of land is difficult to get to not to mention that it is practicaly under the I-80 bridge...Please rethink this plan before throwing more money down the toilet! Oh wait, this is Lincoln and our leaders ALWAYS give away the farm to every little promise of jobs and income, whether they are true or not. "

 Handouts wrote on July 14, 2008 1:01 pm:
" Why do all these developers think they are entitled to government handouts? Projects like this one and the proposed Haymarket hotel will make the developer money if the developer produces a good project. I believe in encouraging growth but I'm sick of paying for portions of their projects out of my pocket. "

 Ill be wrote on July 14, 2008 1:20 pm:
" Once AGAIN the taxpayers MUST finance a private owners development and he
REAP all the rewards and fill their pockets with the taxpayers money.
Our council will set there and say, sure let the taxpayers drain their
bank accounts supporting the rich to get richer. I'm fed up with this
constant tax increment. After all he got a good deal buying it out of
bankruptcy and he knew the council would shovel taxpayer money into his
pockets. When is the council going to wake up, after the citizens are
broke?????? If the guy couldn't afford to develope, bulldoze it to the
ground and forget it until somebody sees financial fit and worthwhile to develope something in this stupid town. This is a constant thing, the
council calls something blight, give taxpayer money away like candy,
and needs to stop. You tell me who is going to EVER pick up their own
shovel and turn one hand when they know they can get the taxpayers to
pay for it!!!! Unbelievable, greed follows greed in this town!! "

 Well worth it wrote on July 14, 2008 1:26 pm:
" I think it's great to have redevelopment occur in the area. It's well worth the investment. Thank you speedway! "

 Come on wrote on July 14, 2008 1:45 pm:
" Speedway has enough money to build this on their own. Oh wait unless you build something where no sensible business person would have a business. Hey speedway how's the strip mall on 6/7th and Van Dorn, sitting pretty empty. "

 Dano wrote on July 14, 2008 1:52 pm:
" Have to agree with the other posts. This is a poor location for a development. No one is going to go there. Just clean up the demo process and leave it vacant if you can't finance the property yourself. Building a strip mall here will be just like the vacant one on Van Dorn and HWY 2( and that location far better).

Best use for that would be a better off ramp, if there weren't other businesses already in the way for that improvement. "

 TG wrote on July 14, 2008 2:37 pm:
" I think a strip mall is a dumb idea. However, I like the idea of a fast food restaurant there. Or maybe even 2, instead of a strip mall and one restaurant. The choices for food off that exit are terrible! Basically McDonald's or a lame food court. "

 MattS wrote on July 14, 2008 2:41 pm:
" Wait, "a poor location for a development"?? So you're saying, "if it's already run down, don't bother building anything new"? Wow, with that attitude, no wonder the "core" is the way it is. Way to go Lincoln... "

 Orson wrote on July 14, 2008 2:59 pm:
" How about a skate park?...HAHAHAHA...*whew*.
How about a 15,000 capacity arena?..HAHAHAHA...*whew*
How about a new hotel?...HAHAHAHA...*whew*
How about an Amigos?...HAHAHAHA...*whew*
How about a Runza?...HAHAHAHA...*whew*
How about a Quilting Museum?...HAHAHAHA...*whew*
How about a Douglas Theater?...HAHAHAHA...*whew*
etc....etc....etc... "

 We are so lucky wrote on July 14, 2008 3:29 pm:
" Man, What we need is another Fast Food Restrauant. Now that is progress.

It must be nice that the property set vacant for over 5 years with it all most falling down and the city did nothing!. Why did they not ask them to fix it up or tear it down. It if was a house it would of been gone long ago.

But no the city wants to give them money to put up a Upscale Strip mall, What ever that is. With a Fast food place. Man are we living!!!
What a Joke.

You can thank all the City Council members we reelected again! Which they should of been kicked to the curb. I wonder how much they made of this deal? "

 jll wrote on July 14, 2008 3:35 pm:
" Does anyone realize that this location is right off of the interstate exit? How is that a poor location for development? There are hundreds of cars that pass through this location every day. A decent food franchise could make a killing in this area, and how about a coffee shop? "

 Imagine That wrote on July 14, 2008 3:44 pm:
" I would not say dont build there but I'm sure Speedway can afford this on there own after all they have more money than the City does. But yet they feel the need to drain more from the tax payer Yee Haa This is what Lincoln seems to be all about screw the people that keep the city afloat.
The taxpayer. "

 JP wrote on July 14, 2008 3:52 pm:
" I agree with most of the post. Why use the average man's tax dollars to help build a strip mall for some one who has lots of money. That will probably sit empty. Then they will want more tax dollars to try to add an off ramp or something to lure people there. It sounds like it is lose lose for the tax payers and win win for the rich businessman. And the city does not have enough tax money to keep the libraries and pools open. Why can't this government think? Or is somebody in government lining there own pockets here. "

 Highlands wrote on July 14, 2008 4:11 pm:
" Maybe the people in the Highlands are tired of having to drive 15 minutes to get anything. "

 Sue wrote on July 14, 2008 4:11 pm:
" Just get rid of that eye sore already! Not that another strip mall with a check cashing place and a dumpy nail salon will improve it much. "

 Disagreed wrote on July 14, 2008 4:26 pm:
" I'm just glad the building is being torn down. I have been driving past that nasty rundown building since 2000. I've always wondered what was going to happen to it, I thought it was the forgotten building. A stripmall in that part of town is ridiculous, very out of place. I say tear the entire building down and build a park or something more pleasing to look at than a strip mall. "

 Mrs. Johnson wrote on July 14, 2008 5:24 pm:
" What would you say if someone told you one of the richest guys in Lincoln could buy a delapadated property for cheap, then let it deteriorate some more AND THEN the city would give him money to fix it up? Maybe we could make the signs posts look like big candycanes to catch peoples eye and pull them off the interstate? Maybe Doc Johnsons would be interested in a spot in the strip mall? "

 Mr. Reality wrote on July 14, 2008 6:19 pm:
" I see so many complaints but so few solutions about the "eyesore" so whine all you want, but nobody else wanted to take the risk of investment on the site, so Speedway did, and they stand to get return on their investment. That is what free enterprise is all about, you don't like it, don't shop their. Once the site is built I am sure that dozens of cars driving down I-80 are going to stop in and get their drink, food, and shopping on, regardless of how unfair you think a government "handout" is. "

 Hmmmm wrote on July 14, 2008 6:43 pm:
" Since there is already an adult book/novelty store in the area, why not ok the zoning and put in an upscale "Gentlemens Club?" haha only kidding "

 JoBeth wrote on July 14, 2008 6:48 pm:
" Oh great another strip center. WOW, like that's something Lincoln doesn't have already. Let Sppedway finance it themselves. If a homeowner had an eyesore like that on their property, the city would have forced them to tear it down at their own expense. How is this fair? "

 ta wrote on July 14, 2008 7:19 pm:
" Nice Job of ripping the public of to make the Smith family more millions.

The city councilman needs to spend some time in Jail of these types of crookery. "

 Good grief wrote on July 14, 2008 8:28 pm:
" I don't care what the owner puts there. Just do it with your own money.
Why does the taxpayers always have to dig in their pockets to make these
rich guys richer!! The city council are the biggest crooks in town.
One of these days this will come back to you, you will reap what you sow!!
The damn council sure didn't help me buy my house, they only come after me
with their shovel to get all they can. This is just plain WRONG!!!! "

 mc wrote on July 14, 2008 9:19 pm:
" Posters, Tax payers please figure out what a TIF fund is before you start whining. Their surley is not a lot of tax money, (sales or Property) coming from the current development. Also if you want your city to thrive compared to a very succesful city (Omaha) mabey you do not want one of the first things that you see coming from the West to be this dump. If it me and I am coming from the West, C_U later Lincoln I will stay and eat and spend my money in a town 50 miles up the road. Good for you council to bring in dollars in the near future to a city that needs it. "

 sixteen wrote on July 15, 2008 12:01 am:
" mc, I agree. Tax Increment Financing (TIF) is simply a redirection of property tax dollars. The developer still pays the full amount of property taxes assessed on the final product. The tax that was originally on the run down motel will still go to appropriate political subdivisions (city, LPS, etc). The increase in taxes based on the final valuation will be used for costs associated with project infrastructure ( in this case sidewalks, utility placement, etc.) After a max of 15 years the full amount will be distributed to the political subdivisions again. TIF is an economic development tool that is used throughout Nebraska and without it millions of dollars and hundreds of employment opportunities would not have been created. It's time to get with the program. "

 bones wrote on July 15, 2008 4:04 am:
" just another example of big buinesses has the clout within the council,it shows how much they care about the tax payer,speedway could build a hundred shopping malls using there own money,until the people say no to the council it will continue,big rich companies will get bigger and richer thanks to your mayor and council,show them in nov. that we have had enough,they are not doing this for the betterment of the average hard working person,go to the coffee shops and listen to what they are talking about,all they talk about is how they can get more,city-state-federal money,there not talking how this or that can heip the people of the city "

 For whats it worth wrote on July 15, 2008 9:37 am:
" You can use tif to fix up or build to get a return of tax money. The thing is, you have to build something that will show a return to tax. A strip mall in that area is not going to work. Have you driven through the area lately? One run down shack after another, with x rated stores, convience stores, cheap motels, and seedy characters. The airport is about on its last legs so people getting off to go there is slowing. Most people go to the 27th st exit anymore for more motels and food. Its another scam brought to you from the city council and friends. "

 BYOB wrote on July 15, 2008 9:51 am:
" If it was anyone other than the Smiths, the city would have condemed the property and given them X-amount of time to clean it up or else.
The little city of Ashland does just that then gives them the bill.
Good ole Lincoln says, here's some money, please clean it up, O.K?
where was this money when several business' closed on west "O" street because the city chose to completly shut down the bridge??? Small business people like the little dollar store in Westgate plaza lost everything and devastated their familys but here you have Speedway motors property and the city throws money at them when in fact they could probably fund the whole state for a couple years. Oh, I guess this is what the old folks meant by, the rich get richer and the poor get poorer, now I get it, CRUSH the little guy like a pesty bug and FEED the big guy, like U.N.L, Haymarket park and B&J properties (Speedway motors). This city has no heart and feels no guilt. "

 Chris wrote on July 15, 2008 12:02 pm:
" It is unfortunate that the opinionated people on this blog do not understand Tax Increment Financing (TIF). TIF allows the city to put money up front for infrastructure needs, i.e. relocating utility lines, sidewalks, and streets, by bonding the future revenue over and above what is currently being paid at the site. It's a wonderful tool in that the city doesn't actually spend any money, and they continue to receive the tax revenue that they would if nothing would happen. After the TIF bond is paid off with the tax revenue received at the higher appraised value, then the city gets to keep all tax revenue from the higher appraised value. These projects WOULD NOT HAPPEN, "but for" the use of this redevelopment tool. Knowledge is power! "

 Chris wrote on July 15, 2008 12:04 pm:
" Again... Tax payers are paying nothing for this. Understand? Nothing. All the money to pay for the TIF comes from the future property tax revenue generated by a higher appraisal value. "

 Tacres wrote on July 15, 2008 1:30 pm:
" It is evident that many of the naysayers here didn't even read the article, or certainly lack the capability to comprehend and "do the math". This property is currently valued at about $250,000 and total property taxes paid has been about $5,000 per year for the last five years. An increase in assessed valuation of approximately two million dollars would yield a tax increment increase of about $40,000 per year. The City portion of this incremental increase is used to repay the TIF bonds (with interest) within fifteen years. After that, the City taxpayers enjoy the windfall of the tax increase, AND the schools and the county enjoy the increase in the very first year. In the worst case scenario, isn't an empty strip mall preferable to the recent use of the land?

I personally have no interest in this deal, and I often share the public's skepticism towards certain civic projects. But in this case, a private owner is willing to commit a few million dollars to a project in a rundown area and in return is only receiving $300,000 in public-assisted financing to be spent on infrastructure improvements. Keep in mind that they have already spent tens of thousands on property taxes over the last several years, apparently without a penny of income. "

 Can anyone... wrote on July 15, 2008 1:38 pm:
" list a strip mall that Speedway has that is successful? How about a few restaurants and a movie complex? "

 Chris wrote on July 15, 2008 1:52 pm:
" For What its Worth: That is incorrect. The property will be appraised and taxed for the value of the building, regardless if the building sits completely vacant. The owners of the property will still have to pay the property taxes, which is where the TIF comes from. "

 zippy wrote on July 15, 2008 4:07 pm:
" finally - be gone! short of 'force majeure' - i feared good, law abiding people would have to resort to unlawful means to accomplish this! "

 jeff wrote on July 15, 2008 11:50 pm:
" I guess this deal is alright when one considers they give TIF on vacant land. Take a jaunt around Lincoln and check out all the vacant Speedway (B&J) property. VERY strange that this property sat so long in that condition and the city done nothing. Gosh, now I wonder if the city will have to upgrade the Oak Creek Levee to protect Speedways property. Like Chris said, thank god for TIF AND school taxes. "

Ads by Yahoo!