Some estimate as much as $500 million will be invested in North and South Omaha as a result of the historic and unprecedented legislation and other related bills
Published: Thursday, June 1, 2023
The bill to provide funding for North Omaha and South Omaha cleared a significant hurdle and won final approval from the Nebraska State Legislature today. The legislation once referred to as the North Omaha and South Omaha Economic Recovery plan, LB1024 in 2022 and LB531 this year won approval today on a 37-8 vote.
“We got it across this finish line,” said Senator Terrell McKinney. “I’m looking forward to the projects getting started and doing what we said we were going to do.”
Read the most up to date bill here: LB531.pdf (nebraskalegislature.gov)
It now expected to be signed into law by Governor Jim Pillen.
With support from the community and nearly 50 testifiers in 2022, State Senators Justin Wayne and McKinney introduced the legislation and worked with South Omaha senators Tony Vargas and Mike McDonnell to gain approval of $335 million in 2022.
“This is a huge win for the community,” said Willie Barney, CEO and Founder of the Empowerment Network. “Senators Wayne and McKinney have done an amazing job leading and navigating this historic legislation through the Legislature. The community also participated in the process at an unprecedented level. Now, the goal is to make sure the community, small businesses, contractors, developers and organizations help lead the development efforts.”
Senators Wayne and McKinney reviewed plans developed by the community over the years and put together the North Omaha Recovery Plan. South Omaha then developed a proposal and it was added to the original North Omaha legislation and the bill became the North and South Omaha Recovery Plan. As the plan was making its way through the state senate last year, Sen. Wayne added funding elements to include high poverty census tracts from around the state.
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Some projects were identified in the legislation to move forward immediately through an RFP process implemented by the Department of Economic Development. Projects including internships, IHUB, the airport business park planning grant, tourism and others were approved for funding.
For the remaining $225 million, the state legislature instructed the Economic Recovery Committee to contract with an engineering firm to put together a master plan. The North and South Omaha communities were then engaged in stakeholder meetings, planning sessions and submitted over 367 applications.
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Olsson, the engineering firm which was selected to collect the submissions and develop the master plan, reviewed the proposals and made recommendations to approve 37 of the plans for funding. Other projects were identified as high scoring and listed as supplemental plans that could be funded if more dollars were allocated by the State. Find the Olsson report here: https://www.nebraskalegislature.gov/pdf/reports/committee/select_special/econrec/LB1024_2023.pdf
After some concerns were voiced by the community, small group meetings and two large town halls were held to attempt to address additional high priorities that were not among the initial recommendations.
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Groups and individuals representing small businesses, contractors, the Malcolm X Foundation, Charles Drew, arts and culture organizations, immigrants and refugees, and potential economic development projects along the corridors of Ames, Sorensen and 30th Street all made their case to be considered for funding. The community also recommended an additional $200 million in funding and a desire to have an accountability committee.
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State senators agreed to take the additional amendments to the Economic Recovery committee for consideration. With that agreement, nearly 50 residents, leaders, small business owners, neighborhood representatives, organizational leaders and others traveled to Lincoln to support the legislation. Others wrote letters, sent emails and made phone calls.
![](https://reviveomahamagazine.com/wp-content/uploads/2023/05/LB-531-Town-Hall-3-scaled.jpg)
State Senator McKinney has said he shared the other suggested amendments with the committee but had difficulty gaining support with the limited time available and the filibustering that has taken place during the entire session.
Three amendments were introduced. One for a museum tied to an individual listed in the hall of fame. A second for federally qualified health centers. And, a third for a cultural museum was introduced by Senator McDonnell.
Senator McKinney said the best way for the other groups to be considered is to resubmit their proposals to the Department of Economic Development once the bill is approved in the final round and signed by Governor Pillen.
“This gives everyone another opportunity,” said McKinney.
What happens next?
The process moving forward after the legislative vote and Governor’s signature is that DED will issue RFPs and accept proposals as early as July. DED will then review and score the proposals.
State Senators are encouraging DED to use the recommendations and amendments identified in the Olsson report, but the current understanding is that DED will review and score everything again using the criteria outlined in the legislation with a heavy emphasis and focus on economic development, entrepreneurship, job creation, housing and tourism.
State senators are recommending that all proposals that were submitted to Olsson be considered eligible for funding and those recommended should receive priority.
Because of the filibustering that has occurred this session, State Senators have been combining bills into “mega bills” incorporating as many as 5-25 bills in one vote.
Even LB 531 passed with multiple amendments and bills included. In addition, the current legislation has switched funding from ARPA to general funds to allow more flexibility and more time for projects to get completed. The use of ARPA funds comes with more restrictions than general funds. And, the ARPA funds must be used by 2026.
State Senators representing the Economic Recovery Plan and Governor Pillen agreed the switch to general funds was a good move.
The legislative update regarding LB531 can be found here: http://update.legislature.ne.gov/?p=34381
The Economic Recovery program can be tracked here: https://opportunity.nebraska.gov/programs/recovery/
The funding allocated can be tracked at https://opportunity.nebraska.gov/programs/recovery/#dashboard