This illustration shows the expansion planned by Olsson Associates to its headquarters in the West Haymarket with a four-story building south of its current location at Canopy and P streets. The $19 million project would create 67,000 square feet of office space and 5,800 feet of retail space.
Olsson Associates is growing so rapidly that it's run out of space in its West Haymarket headquarters — only four years after the building opened.
So the solution for the engineering and design company is to build another building next door.
Olsson Associates on Monday announced plans for a nearly $19 million, four-story office building directly south of its existing headquarters at 601 P St.
That four-story, 86,000-square-foot building opened in summer 2014. Olsson took about 46,000 square feet of space, leasing out the rest to other tenants, and assumed that would be enough for several years.
But a growth spurt in which the firm has acquired several other companies over the past four years has led to the addition of more than 50 employees in Lincoln, boosting job numbers at the local headquarters to more than 300 and companywide to more than 1,100.
"And we can see that growth continuing," said Olsson Associates CEO Brad Strittmatter.
Plans for the new building, which Olsson hopes to break ground on later this year and move into in early 2020, call for 67,000 square feet of office space and 5,800 square feet of retail space.
Strittmatter said the company intends to take some of the office space for itself and lease out the rest. He said he already has letters of intent signed with several businesses and will likely announce tenant names in the next couple of months.
Though it has expanded its footprint nationwide over the past few years, Strittmatter said Olsson Associates is "committed to staying in Lincoln, and this new project ensures that we have the space to continue to grow our business."
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The company expects to spend about $16 million on the building, with the city kicking in an estimated $2.8 million in tax-increment financing.
Tax-increment financing allows the additional property taxes created by new development to pay for portions of the project that have a public benefit.
Mayor Chris Beutler said the city is happy to partner on the project with Olsson Associates.
"This project is about our history and our future — a company founded in Lincoln more than 60 years ago expanding in the newest area of the Capital City,” Beutler said. “I appreciate Olsson’s continuing investment in our growing community."
He pointed out that this will be the seventh private project in the West Haymarket since the area was created with the building of Pinnacle Bank Arena, "which adds up to over $112 million in private investment in the area."
"This new project on the south half of the block continues the momentum to bring more redevelopment down Canopy Street and into South Haymarket," Beutler said.
More renderings of Olsson Associates' planned expansion