A $16 million proposal to redevelop half of a Haymarket block into a hotel and arts center took an odd turn Monday when Councilman Jon Camp criticized the developers behind the proposal.
DEENA WINTER / Lincoln Journal Star | Posted: Monday, July 7, 2008 7:00 pm
A $16 million proposal to redevelop half of a Haymarket block into a hotel and arts center took an odd turn Monday when Councilman Jon Camp criticized the developers behind the proposal.
They’re the same developers the city recently chose to develop a portion of the city’s possible arena hotel and conference center project.
Real estate developers Robert and Will Scott of WRK LLC want to demolish a warehouse at the corner of Eighth and R streets to make way for a 130-room, U-shaped hotel with retail on the ground floor. In conjunction, the University of Nebraska plans to renovate a press warehouse at Ninth and R into an arts and humanities center.
WKR also heads up a team called Lincoln Traction Partners that the city chose to develop a possible hotel and conference center in conjunction with the city’s proposed arena west of the Haymarket District. If voters approve the new arena, WRK would be heavily involved in the project.
The hotel and arts center ultimately gained City Council approval Monday, but only after Camp raised a long list of questions and concerns about the Scotts’ latest project in the Haymarket, the historic district he was instrumental in developing and where he owns eight buildings.
The redevelopment project requires City Council approval because it may qualify for up to $1.8 million in tax increment financing.
Camp raised several issues:
* Although nothing has been set in stone, he opposes the Scotts’ request for a guarantee of 100 of the 409 parking stalls in the city-owned Haymarket Garage at Ninth and Q streets.
* He questioned whether the project should get tax increment financing, an urban renewal financing tool in which the additional property taxes generated by the hotel are essentially funneled back into the project. It could be used to purchase property, demolish the warehouse or improve the sidewalks, dock or street.
* He accused WRK of being behind schedule on another city redevelopment project, a proposed mixed use building adjacent to a new police station the city leases from WRK in northeast Lincoln.
This is the second phase in WRK’s redevelopment of the Haymarket block, which began last year with renovation of the Sawmill Building into several new offices, including theirs, and the Bread & Cup restaurant. Camp asked a lot of questions about how TIF was used on the Sawmill project and whether the Scotts had delivered what they had promised.
He said WRK projected the Sawmill Building would create 43 new jobs, but by his count, it only created three; he said most of the jobs just relocated from other Lincoln sites. Will Scott and Josh Berger of WRK disputed his figures, saying their office alone created five jobs.
Camp also questioned whether the new jobs created by the hotel would pay more than about $18,000 annually. WRK is estimating the hotel and retail development will create up to 68 new jobs.
City officials said about $267,000 in TIF was used on the Sawmill phase, primarily for electric utility improvements and streetscape improvements. Hallie Salem of the Urban Development Department said they were also guaranteed 60 parking spaces in the Haymarket Garage. She said they’ve asked for about 100 spaces for the hotel project.
“Our intent is not to take every stall, but it… is obviously very important,” Will Scott said. “We’re trying not to be overly greedy.”
Camp made it clear he doesn’t think the city should give WRK so many parking stalls, saying other Haymarket property owners don’t get such perks. Salem said the parking director has said the garage has enough capacity to offer the stalls.
Councilman Ken Svoboda also said he won’t support guaranteeing WRK so many of the parking stalls.
Camp also questioned the impact of another hotel on existing downtown hotels, saying he supports economic development, but the city can’t “give away the store to one project.” Camp also said $1.8 million in TIF “is a substantial amount” and that some council members are privately concerned at the number of TIF projects the city is doing.
“This is quite a bit for just half a block of a large area,” Camp said.
Will Scott said the hotel is not being designed to compete with the other downtown hotels, and he said the Sawmill Building has “pulled the Haymarket District a block north.” He said it’s now a new destination point that benefits Camp’s properties, the Haymarket and the city. He said the Haymarket needs more energy and vitality 24/7.
“We’re talking about existing warehouses,” Will Scott said. “They’re dry storage.”
Camp also questioned WRK’s progress on its police station redevelopment. WRK redeveloped the old Alltel switching station at 49th and Huntington streets into a police substation and planned to build an adjacent building on city-owned land for retail, housing and offices.
“You got four lots from the city,” Camp said. “There was an agreement, but you haven’t done it.”
Will Scott said the project is taking longer than anticipated because it has grown in scope and they’re trying to make the building LEED-certified rather than “a stick building with a brick front.” He said the project is “close.”
Camp implied that WRK’s plate is getting a bit full.
“You’re doing lots of other projects,” Camp said, referring to the arena and Sawmill projects. “You’re not completing what you (promised).”
In the past, Councilwoman Robin Eschliman has also questioned the delay on the police station project, and she said Monday, “We do have some concerns that have been expressed here.”
But other council members seemed a bit taken aback by Camp’s public needling of the developers. After Camp finished, Councilman Dan Marvin said, “I want to thank you for your investment in our community.”
Councilman Doug Emery said he hoped in the future such questions would be asked in “a less public forum.”
And Councilman Jonathan Cook noted that if Camp had questions about the police project, all he would have had to do is walk a few steps from his office to Urban Development, which leases space in his Haymarket building.
Camp failed in his request for a three-week delay on the matter, and after Marvin suggested Camp shouldn’t vote on it because he has a possible conflict of interest, Camp abstained from voting on the redevelopment and it passed unanimously. Now negotiations between the city and WRK can commence and their agreement will go back to the council for final approval.
Reach Deena Winter at 473-2642 or dwinter@journalstar.com.