OMAHA — The appointment of the first-ever Omaha Inland Port Authority board, poised to happen Tuesday, should trigger a start on multiple projects within a roughly 300-acre zone in northeast Omaha.

Among initiatives that the new nine-member body — enabled by state law to spur economic development — is expected to oversee:

• A $90 million industrial business park west of Eppley Airfield.
• A $30 million innovation hub.
• Construction of 150 new housing units.
• Hiring of a consultant to “create a vision” for the broader district.

Overshadowing the appointment process, however, is a protest from some neighborhood leaders who believe that the nine nominations from Mayor Jean Stothert lacked community input and “transparency” — things they said the Inland Port Authority was supposed to promote.

Transparency?

For months, North Omaha’s elected officials had raised public concerns about a lack of community engagement into the plan for the airport area business park, which is one of the biggest initiatives proposed within the boundaries of the port authority, and likely the first to start materializing.

That business park plan, which is to be funded with about $90 million in state funds, was crafted and to be carried out by a partnership between the Greater Omaha Chamber, Burlington Capital and the nonprofit Omaha Economic Development Corp.

“This is just more of the same,” Joe Higgins, president of the Levi Carter Sherman Neighborhood Association, said of the board appointment process. “What happened to being more transparent?”

Higgins and others said they only learned of the slate of proposed board members on Thursday, when the agenda for the Tuesday City Council meeting was made public.

Joe Fox Jr., president of the East Omaha Neighborhood Association, said he has been asking the city for updates, since its members live within the inland port boundaries and are subject to forced relocation to make way for the business park poised to span 160 acres north of Carter Lake and west of the airport.

He said information has not come easy.

“We get two business days to find out who these nine people are that are going to be representing our close-knit neighborhood of families that have lived here, many of us, our entire lives,” he said.

Fox said neighborhood association members have been “scared to death” wondering about their future. Most want to be left alone, he said. If they have to start anew somewhere else, Fox said, they’re worried that the compensation might not allow them a replacement home of similar value to their current acreages.

Members plan to be at Tuesday’s public hearing to relay concerns and comment on board candidates.

Mayoral Prerogative

To be sure, both the city ordinance and state law pertaining to the port authority say that the mayor has the power to appoint the governing board and that confirmation lies with the City Council.

Carrie Murphy, a spokeswoman for Stothert, said many candidates were recommended by the mayor, her staff and community leaders. She said a vetting and interview process narrowed the group, and that the mayor during her May 20 “State of the City” address mentioned that the appointments would be submitted to the council in early June.

“These appointments are consistent with the process for all boards and commissions,” Murphy said in a statement. “All board appointment resolutions appear on the council agenda when it is published.”

City Councilwoman Juanita Johnson, whose district includes the inland port district, acknowledged that Stothert has the authority. But she said she would have appreciated being consulted about business affecting her constituents, and she was not. She expects a lively discussion Tuesday.

Cheryl Weston, a longtime North Omaha advocate, questioned potential conflicts of interest among some of the nine candidates. She cited, for example, banker Ernest White.

According to its website, White sits on the board of the Omaha Economic Development Corp., which was part of the developer team awarded the $90 million business park grant.

Inland port authority legislation that applies to Omaha restricts individuals from serving as commissioners if they own an interest in or are directly affiliated with an entity that received a financial benefit through the grant.

Another candidate, Carmen Tapio, founder of North End Teleservices, is listed as a board member of the Greater Omaha Chamber, another partner in the business park to be developed within the inland port authority zone.

“There is something wrong with this picture,” said Weston. “Why is it always the same people?”

Disqualifier

Asked about the situation, State Sen. Justin Wayne, a lawyer whose legislative district includes neighborhoods in the inland port area, said it appears that White and Tapio would be disqualified under the law because of their board affiliations.

He said he otherwise supports the recommendations. “We gotta start moving ahead,” said Wayne.

State Sen. Terrell McKinney of North Omaha is another of the mayoral recommendations.

He said that he was not involved in the selection process but that he had encouraged area residents to submit names of qualified people to the city.

Once a board is installed, it is to create a nine-member community advisory committee to assist the mayor-appointed governing board. That advisory board can include area homeowners.

At this point, said McKinney, he is mostly encouraged that the inland port district is moving forward.

Many proposed improvements for the area have been discussed for years. Talk of the business park, for instance, goes back to at least 2012.

“It’s never going to be perfect,” he said, adding that adjustments can be made along the way.

Trail Of Criticism

Wayne and McKinney led criticism starting last year that the multimillion-dollar effort to develop the airport area business park lacked community engagement.

The two had sponsored the original 2022 legislation that helped carve out the public funds for that project.

At one point, Wayne urged legislative colleagues to put a halt to the Department of Economic Development’s process of selecting the developer for the business park project.

He and McKinney instead wanted to redirect the $90 million in state funds to the inland port authority that, at the time, the City of Omaha was in the process of establishing.

Wayne and McKinney said then that the port authority would be more accountable to the public, in part because of mandated public input sessions and reporting requirements.

Ultimately, Gov. Jim Pillen and Stothert held a press conference in January announcing that the nearly $90 million award would go to the Chamber/Burlington/OEDC partnership to carry out the plan that Wayne and McKinney had criticized.

That award still stands, but an updated law governing municipal inland port authorities, passed in the 2024 legislative session, does require the Chamber/Burlington/OEDC team to obtain a letter of support from the Omaha inland port authority board before the funds can be released.

As a result, and until the board is installed, movement on the business park essentially has stalled, said Burlington’s George Achola.

“Essentially, we have put our pens and pencils down,” said Achola.

He said he is optimistic the project will continue as proposed.

I-Hub, 150 New Housing Units

The updated legislation specified other elements pertaining to Omaha.

For instance, it calls for the inland port authority board to create and operate an innovation district, or I-Hub. That venture is to be funded through the transfer of $30 million already allocated for an I-Hub in a different fund.

According to a legislative fiscal analysis, nearly $27 million is to be directed over two fiscal years to the inland port district from interest earned on state funds set aside for other projects including the state prison and Perkins Canal project.

Because interest gains can change, the amount can vary somewhat.

But that funding is intended to fund construction of 20 single-family homes and a minimum of 150 new housing units.

The legislation also calls for a consultant to create a vision of the inland port district.

The City of Omaha’s planned $45 million Levi Carter multipurpose sports complex, funded by state grants, is set to rise within the port authority boundaries. But McKinney said that will not be under the oversight of the new board.

Powers To Spur Development

Inland port authority districts, which must be approved also by the DED, exist in a few other cities across the state, including Fremont, Hershey and Bellevue. They come with economic development powers, such as the ability to:

• Sell revenue bonds for construction and infrastructure development within the zone.
• Pledge revenue derived from the sale or lease of property within the district to pay off the bond debt.
• Charge fees to businesses and customers that use services offered by the district.
• Employ people to recruit businesses and apply for grants.

The boards do not have the power of eminent domain.

McKinney said he is encouraged that the new port authority will help keep an eye on millions of public dollars coming into northeast Omaha.

Unprecedented amounts of state grants, including about $235 million carved out originally in 2022 legislation and awarded in 2024, are to flow into North and South Omaha for economic development projects.

“We’re trying to make sure we hold people accountable to what they say they’re going to do and that the community is not messed over,” said McKinney. “I’m just happy things are moving forward, honestly.”

This story was published by Nebraska Examiner, an editorially independent newsroom providing a hard-hitting, daily flow of news. Read the original article: https://nebraskaexaminer.com/2024/06/02/controversy-arises-over-process-...