Drury Hotel (10th & Harney)

[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.

[swinquest]

I like the idea of having Drury in Omaha. My family first stayed at one in the KC area and was so impressed that we look for Drury locations in every city we travel to. We really like their evening snacks / meals....helps with the travel budgets a little bit.

[CBJason]

I like the idea of having Drury in Omaha. My family first stayed at one in the KC area and was so impressed that we look for Drury locations in every city we travel to. We really like their evening snacks / meals....helps with the travel budgets a little bit.

Same here! While I wish this was going to be a few stories taller, it seems to fit in well enough. This will be my go to when bringing the family back for visits.

[stadsborgare]

Drury is seemingly more than half-way through its "big dig", for what I presume is underground parking.

(Perhaps Drury should have its own thread?)

[NEDodger]

Drury is seemingly more than half-way through its "big dig", for what I presume is underground parking.

(Perhaps Drury should have its own thread?)

Wow! What’s the timeline for this? Completed by the 2028 CWS?

[nebport5]

A lot of digging in the dirt...why this thing should be going vertical in no time.

[thenewguy]

Looks like they are making progress quick, fast, and in a hurry. I wonder if they'd be getting after it so hardcore if it wasn't for the streetcar, or if they'd have been gettin after it regardless?

[Busguy2010]

That feels a little disappointing given the streetcar is right there. It seems like something that would have been built as-is regardless. As a streetcar proponent, you kinda expect to see the streetcar in the building designs put forth from here on.

It does look nicer than the nearby Hyatt though, in that it isnt half garage. Is there no garage here? From looking at the front, it looks like not, but from the back, it seems like most of the first two floors are not the actual rooms. So 6 over 2?

[stadsborgare]

The hotel will use a post-tension concrete structure, as far as I know. And I would like it if most of the parking is underground. That Hyatt over there in the Old Market is an ugly behemoth. At least Mutual disguises its parking structure on 3 sides so you can't tell from the front.

[Linkin5]

The hotel will use a post-tension concrete structure, as far as I know. And I would like it if most of the parking is underground. That Hyatt over there in the Old Market is an ugly behemoth. At least Mutual disguises its parking structure on 3 sides so you can't tell from the front.

It sure beats that hole in the ground we had for years though. I’ve never really had a problem with the aesthetics of the OM Hyatt.

Although the Drury design was disappointing compared to what some of us were hoping for the increased foot traffic in the area will be great.

[thenewguy]

i mean, honestly, i think it fits in just fine. Everything around there is comparably sized, so it won't look out of place. In fact it will look more like it's been there a while, which is (i'm sure) what they were going for

[Greg S]

Yeah I am good with the Drury. I haven't seen the final version released but if it's similar to Lincoln's (which i just walked by Saturday) it will be fine. I agree the additional foot traffic will be nice. This will be the most family friendly hotel downtown. When my boys were younger and we traveled, we always looked to see if there was a Drury in the area. They have the most "extras."

For those unfamiliar:

Free Hot Breakfast: A fresh, hot breakfast served every morning. Free 5:30 Kickback®: An evening event from 5:30 PM to 7:00 PM with rotating hot food, snacks, and three free alcoholic drinks for adults. Lobby Snacks: Complimentary popcorn and soft drinks available in the lobby. Free Wi-Fi: High-speed wireless internet access throughout the hotel .In-Room Extras: Every room comes equipped with a mini-fridge and a microwave.

My kids loved the unlimited popcorn machine in the lobby and free pop (the machine also had gatorade and lemonade so it wasn't just caffeine and sugar stuff). The evening reception had enough to make meals, many times hot dogs, chilli and fritos. Great for families on a budget.

I really hope the Children's Museum gets restarted. I could see families walking from the Drury.