OMAHA — A $62 million apartment complex with 255 dwellings is the latest development piece announced for a site that once bustled as the city’s premier hotel and convention center.

Decades ago, the project area northeast of 72nd and Grover Streets, 15 acres in all, hosted horse racing fans, Berkshire Hathaway shareholders and Ak-Sar-Ben queen pageantry. In more recent years, it was known as the CoCo Key hotel and water park resort.

Now slated to rise on a four-acre portion of that cleared ground is a five-story apartment complex that will feature some Brownstone-style units and amenities such as an outdoor pool, courtyards and a rooftop sky lounge.

Parkway Development and J Development, partners in the venture, are asking for about $6.6 million in public tax increment financing from the City of Omaha.

Parkway’s Ryan Spellman said the development team owns other land and has developed other real estate in the area and is hoping that the latest mixed-use site builds on that neighborhood’s success.

“It’ll be a nice southern bookend to what is happening at the Aksarben area,” he said.

With Jim Royer of J Development, Spellman bought about nine of the 15 acres owned by hotelier and developer Dan Marak.

Marak, of MH Hospitality, earlier announced plans to build a Fairfield Inn & Suites by Marriott and a commercial office building on much of the six acres he still owns. Marak said he has a couple of parcels facing 72nd Street that he still hopes to sell to restaurant venues to create a campus of various uses.

Spellman said the other half of the nine acres he owns with J Development also are available and could attract retail or commercial buyers.

Spellman said his partnership group chose to develop luxury apartments, which will rent for about $1,200 for a one-bedroom to $1,600 for a two-bedroom, because they continue to see an unmet demand in the area.

Their nearby 162-unit Centerline Apartments, a few blocks to the north along 72nd Street, have been at 98% occupancy, he said. The 158-unit Swivel apartments at 72nd and Dodge are renting up swiftly, he added.

Their 175-unit Clove apartments currently are under construction near 78th and Dodge Streets on the site of an old hotel and Village Inn.

Spellman anticipates the newest and still-to-be named complex to gain some “spillover” residents who are filling new jobs at and around the University of Nebraska Medical Center and other area medical facilities.

“We anticipate attracting a very strong health care demographic which we already have with our Centerline apartments,” he said. “As long as we see demand in the market, we’re going to try and meet that demand.”

The Planning Board on Wednesday is to consider the TIF request by Parkway and J Development companies.

Under TIF, new property tax generated by the new development is directed to pay off a developer’s TIF note, generally for 15 years. TIF is to be used to offset eligible costs such as site preparation, building demolition and public improvements.

After the 15 years, the property tax revenue then reverts to traditional recipients such as local school districts or governments.

The final valuation of the apartment project is projected to be $38.2 million.

According to city documents, the apartment site would contain about 160 parking stalls inside and about 135 in an outdoor surface parking lot.

Just to the north of the 15-acre campus is a separate three acres developed earlier by Marak into a 138-unit, dual-brand hotel complex for Tru and Home2Suites by Hilton.

City planners have given their green light to the proposed apartments that would rise on the old hotel property, which had gone through numerous changes since it opened in 1965. Demolition was completed last year.

The planners said the new proposal meets city master plan goals, including providing quality housing options that promote diverse neighborhoods and reverse deterioration in older areas of the central city.

Already, a new section of 70th Street has been paved through the project site.

If the City Council approves the project and the TIF request, Spellman said, construction could begin this December and wrap up at the end of 2024.

This story was originally published by Nebraska Examiner, an editorially independent newsroom providing a hard-hitting, daily flow of news. It is part of the national nonprofit States Newsroom. Find more at nebraskaexaminer.com.

Author Profile: Cindy Gonzalez