Opponents to proposed high-rise at Ninth and P streets turn out in force to testify

Those opponents urged the council to deny or delay approval of a redevelopment agreement for the 22-story mixed-use building they said is the wrong project for that spot — where Melichar’s 66 gas station has been for years.

Russ Bayer, who owns condos in the Haymarket and is a former planning commission member, said if it’s such a good project it will happen in a better location.

“If you vote no, if it’s such a great project and so good for Lincoln, if Lincoln Bold decides not to build someplace else, someone else will,” he said.

Steve Glenn, one of the developers of the Lincoln Bold project, painted a different picture, saying the project will be a striking addition to Lincoln’s skyline that will attract people from the high-tech centers on the coasts to what developers believe will be the most beautiful building between Chicago and Denver.

“I think people in Lincoln will be very proud of this project and I think we’ll be able to attract tremendous people to our community,” Glenn said.

But opponent after opponent argued that the project would be detrimental.

A significant concern included a lack of notice of the project, with several Haymarket business owners saying they found out about it in the newspaper. The fact that no one showed up to testify at a Lincoln-Lancaster County Planning Commission hearing is evidence that the city did not adequately notify those most affected, they said.

“Give us a seat at the table,” said Joel Schossow, who owns McKinney’s Pub. “We need to have a voice.”

They also argued that the project would have a negative effect on already limited parking both during and after construction; that it is inappropriate to use $24.1 million in tax-increment financing (TIF) to subsidize luxury apartments and condos; and that the modern building doesn’t fit with the historic character of the Haymarket.

Opponents filled the council chamber at a public hearing on a redevelopment agreement for the 254-foot high-rise that would include 36,000 square feet of office space, 70 luxury apartment units and 33 condos. The high-rise would become the second-tallest building in the city, surpassing the Lied Place Residences at 11th and Q streets by 6 inches.

The council gave its initial approval in December, when it found the project conformed with the comprehensive plan. The redevelopment agreement, which the council will vote on March 13, sets out the parameters for a record $24.1 million in TIF.

TIF would divert taxes paid on the improved property for 20 years to pay for infrastructure improvements and some up-front costs of the project, which includes a $90.8 million private investment.

DaNay Kalkowski, the attorney representing the developers, said the use of TIF means the city gets input on the project, which is a benefit to the community. As a result, developers have made several design changes, $3.2 million of the TIF will go directly to streetscape and right-of-way improvements and developers will contribute $721,000 to the city’s affordable housing efforts.

Opponents said subsidizing luxury apartments and condos is not an appropriate use of TIF.  

“How is deferring $1.9 million for the next 20 years good for taxpayers?” asked Mike Martin, a business owner in the Haymarket.

Zoning downtown does not require that businesses provide their own parking but Haymarket business owners say the number of residential buildings added downtown in recent years has — and will — add considerable parking demand.

But city officials presented the council with parking numbers that show parking usage in the Haymarket has declined significantly since the pandemic, as more people continue to work remotely. 

In most garages, occupancy doesn't exceed 50%, said Urban Development Director Dan Marvin.

The redevelopment agreement includes allowing the developer to lease up to 200 parking stalls at the Market Place parking garage at 925 Q St., and to make up to 30 parking stalls available to the developer for valet parking during construction. Occupancy in that garage at night is about 15%, Marvin said.

The Downtown Lincoln Association and Lincoln Haymarket Development Corp. have supported the project, and DLA President and CEO Todd Ogden said they’re doing all they can to mitigate the negative effects, especially parking.

Much of the testimony Monday was about how the disruption during three years of construction — particularly the loss of parking — would hurt surrounding businesses.

A group calling itself Save the Historic Haymarket, which represents 50 Haymarket businesses, estimates businesses would lose $14 million in revenue, as well as a loss in sales and occupation tax revenue to the community.

The developers have said they’d offer free valet parking for patrons of businesses along P Street during construction, and have committed $250,000 to the effort.

But Kevin Witcher, who owns Screamers, said valet parking won’t make a difference because if patrons think traffic congestion and parking is an issue, they’ll just stay away.

“This feels like a second wave of COVID,” he said. “It will have a similar effect.”

He also disagreed that the luxury high-rise would attract people from the coasts. Instead, he said, they will be owned by wealthy people in other parts of Nebraska so they have a nice place to stay during Husker gamedays.

Other business owners recalled how redoing the nearby Harris Overpass on O Street years earlier hurt their businesses and it wasn’t even directly in the Haymarket.

“People avoided the Haymarket and we suffered tremendously,” said Melinda Martinson, who owns Crescent Moon Coffee. She said she nearly lost her business that year.

Schossow, McKinney’s Pub owner, said one of the biggest problems with construction is that it will prevent his and other businesses from holding annual special events.

“There’s a chance over the next three years we won’t be able to do those events,” he said. “That’s part of our brand. We’ve invested a lot and that’s a lot of lost revenue over those years.”