OMAHA, Neb. (AP) — The developer of the former Omaha Civic Auditorium has pulled out of the project after being denied incentives.
Project 19 LLC, the partnership led by the Tetrad Property Group, pulled out of the deal Tuesday, less than a week after the city had made a counteroffer to the incentives they were seeking.
Tetrad had proposed multiple incentives in February regarding parking at the site. It urged the city to provide free parking at the existing parking garage at the site for 20 years. Developers also hoped the city would give land for an additional parking garage and fund the construction.
The developers were also hoping not to pay back the city for demolition costs, said Mayor Jean Stothert. Those incentives combined with $50 million in tax-increment financing totaled about $90 million, she said.
“Their ask was far beyond what we have offered other developers,” Stothert said.
The city’s counteroffer said it would build a garage and lease it to the developer if the project included an office tenant with 400,000 square feet of leased space and at least 1,500 employees. The city also offered to lease space at the existing garage and acquire additional parking lots. The city offered to sell land for an additional parking garage for $8 million, but would waive the fee if a major office tenant committed to the project.
“As we continued to evaluate the city’s offer it became evident that the terms presented were not aligned for what the market is demanding,” a spokeswoman for Project 19 said in a statement.
The developer couldn’t overcome some of the obstacles it faced, such as development delays and the city’s focus on redeveloping other properties, said Zach Wiegert of Project 19.
The city will begin looking for other developers for the project, Stothert said.