OMAHA, Neb. (AP) - The Omaha City Council has approved a special occupation tax for a mixed-use development site that is slated to become an entertainment district.
The council voted 6-1 on Tuesday to make the development the city’s first “enhanced employment district.” Such districts allow taxes to be collected from consumers in a certain area to fund public infrastructure and other development, the Omaha World-Herald (https://bit.ly/2tqhMnz ) reported.
The area, dubbed the Capitol District, is slotted to have a Marriott Hotel, stores, restaurants, apartments and office space. Already under construction, the development also is expected to be the city’s first entertainment district where attendees can take their alcohol outside to a common area.
The district ordinance outlined a 0.5 percent tax on retail purchases and a 0.3 percent tax at some businesses south of the district. A 25-cent fee will apply to each square foot of office space per year, and a tax of $95 will be charged annually to each apartment.
Councilwoman Aimee Melton was the only dissenting vote, saying she supports the development but not the tax.
“I’m just fundamentally opposed to the tax,” she said, but added: “If one deserved it, it was going to be this one.”
Developer Mike Moylan expects about $250,000 to be collected through the tax each year.
The vote on the tax was initially delayed at the council’s June 27 meeting because two members said they hadn’t been made aware of an amendment to the ordinance in time to decide. The amendment made it clear that there’s a 20-year limit on the tax, removed one piece of property from the taxed area and allowed Mayor Jean Stothert to sign administrative agreements relating to the ordinance.
Councilman Pete Festersen said that the process could have been handled more smoothly.
“I think it’s a really bad message we send to the development community if redevelopment agreements that are previously committed are not approved or not followed,” he said.
The tax will take effect in August, around the same time the district’s hotel and apartments will open.
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Information from: Omaha World-Herald, https://www.omaha.com
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