Mercantile (Conagra campus development)

[Garrett]

Drury filed for a new building permit on August 5: 8 stories (same as before) 210 rooms (up from 201 before), 138,000 sqft (down from 187,000 sqft). Not sure where the lost 50,000 sqft is coming from.

https://aca-prod.accela.com/OMAHA/Cap/C ... nspection=

[thenewguy]

Drury filed for a new building permit on August 5: 8 stories (same as before) 210 rooms (up from 201 before), 138,000 sqft (down from 187,000 sqft). Not sure where the lost 50,000 sqft is coming from.

https://aca-prod.accela.com/OMAHA/Cap/C ... nspection=

better than nothing? Yes.

better than what we thought? No.

[ita]

Drury filed for a new building permit on August 5: 8 stories (same as before) 210 rooms (up from 201 before), 138,000 sqft (down from 187,000 sqft). Not sure where the lost 50,000 sqft is coming from.

https://aca-prod.accela.com/OMAHA/Cap/C ... nspection=

Maybe it's a level of parking?

[Garrett]

Drury filed for a new building permit on August 5: 8 stories (same as before) 210 rooms (up from 201 before), 138,000 sqft (down from 187,000 sqft). Not sure where the lost 50,000 sqft is coming from.

https://aca-prod.accela.com/OMAHA/Cap/C ... nspection=

Maybe it's a level of parking?

The permit they pulled in April for infrastructure work does claim its 47k sqft but the scope of work they list feels more limited than that? But you may be right.

https://aca-prod.accela.com/OMAHA/Cap/C ... nspection=

[thenewguy]

so is the cost of the garage $5.8M? It can't be the entire thing...

[nebport5]

Drury filed for a new building permit on August 5: 8 stories (same as before) 210 rooms (up from 201 before), 138,000 sqft (down from 187,000 sqft). Not sure where the lost 50,000 sqft is coming from.

https://aca-prod.accela.com/OMAHA/Cap/C ... nspection=

Maybe it's a level of parking?

The permit they pulled in April for infrastructure work does claim its 47k sqft but the scope of work they list feels more limited than that? But you may be right.

https://aca-prod.accela.com/OMAHA/Cap/C ... nspection=

That sounds like it may not bode well for getting their 10th & Harney surface lot developed.

[ita]

Drury filed for a new building permit on August 5: 8 stories (same as before) 210 rooms (up from 201 before), 138,000 sqft (down from 187,000 sqft). Not sure where the lost 50,000 sqft is coming from.

https://aca-prod.accela.com/OMAHA/Cap/C ... nspection=

Maybe it's a level of parking?

The permit they pulled in April for infrastructure work does claim its 47k sqft but the scope of work they list feels more limited than that? But you may be right.

https://aca-prod.accela.com/OMAHA/Cap/C ... nspection=

That sounds like it may not bode well for getting their 10th & Harney surface lot developed.

Not necessarily. I am not a building/construction expert, so just conjecturing here, but maybe for some reason the garage and the hotel itself needed two separate permits.

[bldgengineer2015]

The two separate permits just allows them to start work on the podium/foundation/below grade items prior to final approval of the rest of the building.

[jjjjhskr]

They’re really working hard on the Drury this morning.

[Louie]

They’re really working hard on the Drury this morning.

More like dreary on a morning like this amirite

[jjjjhskr]

A bit

[iamjacobm]

Will be nice to see both the market and hotel go up at the same time. Really pulling the built environment east here.

I did notice there was a ton more bird poop on the HOA lake trail today, the birds really liked to hang out on the market site haha.

[thenewguy]

i hope they can do something to draw them away from there. That's always irritating to walk through a field of goose nuggets

[Brad]

Wonder if the Drury will have a tower crane?

[skinzfan23]

Wonder if the Drury will have a tower crane?

I would think so, the one in Lincoln did when it was built.

[nebport5]

RE: Drury Hotel

The City Council voted today in favor of "an Enhanced Employment Area (EEA), as
described in Exhibit "B", and the City’s authorization of a general business occupation tax
in an amount up to $7,550,000.00".

Agenda attachment.


The plan includes 160 underground parking spaces.

[thenewguy]

this is the rendering from the document. Not bad, not great, will fit with the area. 8 stories

[iamjacobm]

There is a bit sharper rendering at Drury's development page.

https://www.drurydevelopment.com/properties/omaha-ne/

[BRoss]

I think it looks pretty good. It adds height and density and should add to the skyline a bit. Plus Drury is a fairly nice family-owned hotel. My parents have told me they usually seek these out when they travel.

[thenewguy]

i do think it looks a lot better in this rendering than the computer renderings that were posted earlier. gives a way better sense of scale, and the whole area is starting to look like what could have existed decades ago if jobbers canyon wasn't removed.

[BuildTaller]

There is a bit sharper rendering at Drury's development page.

https://www.drurydevelopment.com/properties/omaha-ne/

[Garrett]

An AI editing of a google maps screenshot where they couldn't even be bothered to remove the street label? Nice.

[Mapguy]

Its an ok hotel----Im struggling to see why it needs TIF. Its in a prime location by the riverfront, the mall, the old market. Its not a terribly special hotel brand that requires incentives---and its not that large---the developers are taking virtually zero risk at this location. The plot of land is a greenfield. Why does it need TIF to happen???

The argument is always well nothing would have been developed without TIF and we get a munch denser quality development----does anybody really believe that for this location downtown?

With the planning boards rejection and the councils unanimous approval I cant help but think corruption is at play here. I mean why even have a planning process and standards if you can just buy 7 people off???

[buildomaha]

Its an ok hotel----Im struggling to see why it needs TIF. Its in a prime location by the riverfront, the mall, the old market. Its not a terribly special hotel brand that requires incentives---and its not that large---the developers are taking virtually zero risk at this location. The plot of land is a greenfield. Why does it need TIF to happen???

The argument is always well nothing would have been developed without TIF and we get a munch denser quality development----does anybody really believe that for this location downtown?

With the planning boards rejection and the councils unanimous approval I cant help but think corruption is at play here. I mean why even have a planning process and standards if you can just buy 7 people off???

My best guess is that nobody on the council would want to vote against a new large development alone. And if one doesn’t lead the charge, then the rest won’t go along and pay the potential political tax of voting against development.
The general public doesn’t understand TIF, or city taxing authority in general, and they vote that way. Just look at the commentary you see about the streetcar–how upset people are that city money is going to it…(us on this forum know that there is zero taxpayer dollars going to the streetcar, but most people aren’t development nerds).

[Mapguy]

Im not strictly against TIF---Im against using it on everything under the sun east of 72nd St. The old Market, the Gene Leahe mall, and streetcar should make this property desirable enough to not need additional incentives to happen----the public investment of amenities is already there---the pump is primed enough!!!

This hotel 100% would have happened with or without incentives because they were already building the foundation before they got approval---they were THAT SURE that they wanted to do this.

IDK if the council knows this??? but you can deny TIF and still approve a projects building permit. Which is what should have happened if it met all the codes---which it did

[Garrett]

Yeah this is a weird approval by the council for me and smells slightly fishy. The city changed the hotel policy based on recommendations from planners, the planners said this shouldn't get incentives, the board said this shouldn't get incentives, Drury filed for permits and started construction even though the board said no, and then the council unanimously approves it anyway?

[jomaha9]

I'm guessing this was approved so that Drury sells the other vacant lot they own closer to 11th and Farnam. Quid pro quo.

[nebport5]

First, just to be clear, the incentive here is EEA, not TIF.

The EEA breaks down to be an additional tax only on future guests of this hotel.

During the City Council meeting Drury reps made the case that the city does not have an official hotel policy, but rather only a guiding philosophy. Council members conferred with various city departments and agreed. Drury went on to present that the qualifications for said incentive required by the state were all met. There was also extensive discussion regarding the STR scale and assurances from Drury that the hotel will meet the upper upscale level in finishings and amenities.

One thing that didn't get much discussion was the fact that the hotel is already under construction.

[almighty_tuna]

Nice insight, nebport!

[BRoss]

I think there were a few different factors at play.

One, if this had been rejected and Drury pulled out, how long would this lot stay vacant? Maybe not long, maybe years. And would the next thing even be as tall? If I was on the council, I wouldn't want to vote against something that adds good density and adds more to the skyline. It's not the nicest brand, but it's above average and won't negatively affect the area.

Second, to add to nebport5, I'm guessing Drury met with city leaders behind the scenes to let them know they'd challenge this in court since it sounds like they actually met the qualifications. And the city attorney told the council that they had a valid case so they came to an understanding that the council would proceed with awarding Drury the incentives at the next city council meeting to where Drury felt comfortable moving forward. The city council meeting was just a formality so citizens could object/provide feedback.

That said, I have no behind the scenes insight and my thoughts here could be entirely wrong.

[ricko]

So, no TIF, but EEA? What’s EEA? Can someone explain to me who benefits? I can’t find any information about it online.

[nebport5]

So, no TIF, but EEA? What’s EEA? Can someone explain to me who benefits? I can’t find any information about it online.

see above post link.

In a nut shell it's an occupation tax that is only paid for by future Drury guests.

EEA requested
Amount: $7,550,000
Terms: 30yrs at 7.0%


EEA requirements involved:

-project investment greater than 3 mil

-creates more than 30 new jobs

-project greater than 135k SF

-gross sales of 10 mil or more

*The planning board recommended denial based upon the "city hotel policy" which doesn't officially exist.

Also keep in mind that the goal of the "policy" largely was to attract upper upscale and above hotels for the sake of convention business. Given this location and number of rooms(210) this hotel does little towards that goal other than being another "overflow" hotel. We currently do not have a hotel in the recommended 800+ rooms to attract larger conventions we've been missing. Drury acknowledges this fact, but is happy to work with the tourism board towards any of limited benefits.


The bigger question is why do we not have an RFP out now given the progress of the convention center expansion?

[Garrett]

The bigger question is why do we not have an RFP out now given the progress of the convention center expansion?

Hadn't there been an RFP for lot B put out sometime in the last few years of the Stothert admin?

[nativeomahan]

I think that all in all it’s a nice looking structure, it fits in well with the surrounding neighborhood, it will bring in more typical tourists than conventioneers, it’s a well regarded brand in their service area, and just a win for downtown Omaha and in particular the Old Market.

[thenewguy]

I think that all in all it’s a nice looking structure, it fits in well with the surrounding neighborhood, it will bring in more typical tourists than conventioneers, it’s a well regarded brand in their service area, and just a win for downtown Omaha and in particular the Old Market.

i agree. it fits. If they are looking for an 800+ room hotel, this isn't the spot for it. There are a few lots a few blocks west that would be fantastic for that, though.

[nebport5]

I think that all in all it’s a nice looking structure, it fits in well with the surrounding neighborhood, it will bring in more typical tourists than conventioneers, it’s a well regarded brand in their service area, and just a win for downtown Omaha and in particular the Old Market.

i agree. it fits. If they are looking for an 800+ room hotel, this isn't the spot for it. There are a few lots a few blocks west that would be fantastic for that, though.

Yes.

As for an 800+ hotel that would likely only be in a place that could connect to the convention center.

[nebport5]

The bigger question is why do we not have an RFP out now given the progress of the convention center expansion?

Hadn't there been an RFP for lot B put out sometime in the last few years of the Stothert admin?

Hmm, I vaguely recall some discussion but even if there was an RFP that long ago would it have had the desired specs pre convention center expansion?


Edit: The next MECA meeting could shed some light with a "Convention Center Sales & Marketing Update" and updates from the Real Estate Committee.