NEWS
Update on LB531: Bill to Fund Projects in North & South Omaha gains second round approval
Published: Tuesday, May 23, 2023
The bill to provide funding for North Omaha and South Omaha continues to make its way through the Nebraska State Legislature. The legislation once referred to as the North Omaha and South Omaha Recovery plan, LB1024 in 2022, LB531 this year and now amendment AM 1880 received 2nd round approval on Thursday, May 18 with a 37-3 vote. AM1880 was submitted by Senator McKinney and incorporates more funding and additional projects.
Read the most up to date bill here: https://nebraskalegislature.gov/FloorDocs/108/PDF/Final/LB531.pdf
The third and final vote should occur sometime this week and is 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 Terrell McKinney introduced the legislation and worked with South Omaha senators Tony Vargas and Mike McDonnell to gain approval of $335 million in 2022.
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, business park planning grant, tourism and others were approved for funding. The process to approve these funds has been slow, but dollars are starting to reach the community.
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
For the remaining funds, $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 then submitted over 300 applications.
Olsson, the engineering firm which was selected to collect the submissions and develop the master plan, reviewed the proposals and made recommendations to approve 35 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.
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.
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.
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 in a district 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.
What happens next?
The process moving forward after legislative approval 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.
Because of the filibustering that has occurred this session, State Senators have been combining bills into “mega bills” incorporating as many as 10-25 bills in one vote.
Even LB 531, now has 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
Community Features
95% increase in the number of Black-owned businesses with employees in Omaha
A recent story by the Brookings Institution highlights a 95% increase in the number of Black-owned businesses with employees in the Omaha metro.
The Brookings reports leads with the statement that Black-owned businesses are driving economic growth in America.
The report uses data from the Census Bureau’s Annual Business Survey showing an increase of 182 Black-owned businesses with employees in Omaha from 2017 to 2022.
That is great news for the organizations and businesses working to increase the number and size of Black-owned businesses.
“This is incredible. A 95% surge in Black-owned businesses with employees in Omaha is more than a statistic—it’s a testament to resilience, innovation, and economic empowerment,” said Frank Hayes, CEO and Founder of Hayes & Associates. “This growth fuels generational wealth, strengthens communities, and drives the local economy forward. When Black businesses thrive, Omaha thrives!”
The Brookings report shows that minority businesses are driving economic growth in the entire country.
Some neighboring cities in the Midwest and partner cities also performed very well when it comes to increasing the number of Black owned businesses.
“We set a goal in 2015 to work together to help create or scale 250 more Black-owned businesses with employees by 2025,” said Willie Barney, CEO of the Empowerment Network and co-owner of the Revive Black Business Network and Carver Legacy Center. “We’ve partnered with many organizations to host expos, markets, workshops, networking events and assist with raising capital and securing investments.”
“Even with the pandemic, we have collectively made substantial and measurable progress. This proves what can be accomplished in just five years and we want to help create or scale 250 more businesses before 2030.”
Locally, there are many support organizations and the entrepreneurs working to make things happen in Omaha:
- Nebraska Enterprise Fund
- Grow Nebraska
- Omaha 100
- Start Center
- Omaha Economic Development Corporation
- Revive Black Business Network
- Empowerment Network
- Carver Legacy Center
- Metro Omaha Women’s Business Center
- Hayes & Associates
- Business Seals
- Small Business Administration
- DreamBusiness
- Greater Omaha Chamber
- Urban League of Nebraska
- Midlands African-Chamber
- and others are focused on entrepreneurship and business growth.
“When we invest in small businesses, we invest in the heartbeat of our communities. These businesses don’t just provide services, they create jobs, generate local spending, and fuel economic growth. By empowering entrepreneurs in low to moderate-income communities, we build ecosystems of opportunity where every dollar earned circulates locally, strengthening neighborhoods and paving the way for generational prosperity,” said Veta Jeffery, CEO of Jeffery Consulting.
“These achievements are encouraging and proof that the focus on building an entrepreneurial economy-system is vital to building vibrant communities,” said Jim Reiff, Executive Director of Nebraska Enterprise Fund. “While a confirmation of our collective efforts, I see this as a call to action for the next five years and beyond. Each small business that expands or successfully starts improves all of the community.”
MOVING FORWARD
“The timing is perfect for this report as we turn our attention to Transformation 2030,” said Barney. “This should be a celebration point for Omaha and other cities and also inspire us all to push even harder after seeing what is possible.”
Investments through the North and South Omaha Recovery Program and other sources should help accelerate the pace of growth even more in Omaha over the next five years.
The additional funding is made possible through the partnership of the community and leadership of Senators Justin Wayne and Terrell McKinney to gain passage of LB1024 and LB531.
After a nearly unanimous vote in the Nebraska State Legislature and the signatures of former Governor Pete Ricketts and current Governor Jim Pillen, the legislation became law.
Awards were announced in January 2024 and The Department of Economic Development has led the allocation of funding and many Black-owned businesses benefitted from grants ranging from $50,000 to $2,000,000.
The future $30 million investment in the IHUB and $90 million business park in North Omaha will also make an impact.
These funds and other strategic investments will support the continued progress and help to increase the number of Black-owned businesses with employees. It also has an impact on future generations.
“When young people grow up seeing businesses start and thrive around them, they begin to dream bigger, knowing they, too, can build and contribute. This cycle of inspiration and opportunity fuels long-term economic resilience, ensuring that thriving businesses lead to thriving communities for generations to come,” said Jeffery.
Read the full Brookings report here: Driving prosperity: How Black-owned businesses fueled recent economic growth
For a listing of Black-owned businesses in Omaha. Revive Black Business Guide – Revive! Omaha
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More Details by Sector:
Analysis by Raheem Sanders, CEO of PPRP Innovations.
The growth in Black-owned businesses has not been confined to a single industry – it has been spread across multiple sectors of Omaha’s economy, with every major industry seeing increases. A U.S. Census Business analysis noted that from 2017 to 2019, the number of Black-owned firms grew in all sectors of the U.S. economy, and this broad-based growth has been reflected in Omaha as well.
Growth by Sector:
- Health Care & Social Assistance has been the #1 industry for Black-owned businesses in Omaha by total count of firms. In 2022, there were about 75 Black-owned health care/social assistance firms with employees, making up roughly 20% of all Black-owned employer businesses in Omaha. This sector saw about +56% growth from ~48 firms in 2017 to 75 in 2022. Nationwide, health care is also the top industry for Black business owners (49,872 such firms in 2022) (4).
- Professional & Technical Services and Construction each account for ~10–12% of Omaha’s Black-owned firms. By 2022, there were roughly 45 Black-owned professional service firms and 37 construction companies in Omaha – both nearly doubling since 2015.
- Other Services (personal services, nonprofits, etc.) nearly doubled to 30 by 2022.
- Transportation & Warehousing saw explosive growth from about 12 to 37 firms (~200% increase). Nationally, transportation/warehousing was the fastest-growing sector for Black owned businesses (nearly +150% from 2017–2022) (4).
- Administrative & Support Services also doubled (from ~15 to 30).
- Retail Trade and Accommodation/Food Services each expanded significantly (~100% growth).
- Real Estate doubled from ~6 to 15 (≈+150%), mirroring a national real estate surge (~102% growth) (4).
- Finance & Insurance remains the smallest category (growing from ~2–3 to ~4).
(Data Sources: Estimates for 2015–2017 are based on available Census percentages (1) and Omaha’s share of statewide data. Actual 2022 figures from Census/Brookings Institution (3)(4). 2025 is a projection assuming continued growth. All figures rounded.)
