Councilman criticizes hotel center developers
BY DEENA WINTER / Lincoln Journal Star
A $16 million proposal to redevelop half of a Haymarket block into a hotel and arts center took an odd turn Monday when Councilman Jon Camp criticized the developers behind the proposal.
They’re the same developers the city recently chose to develop a portion of the city’s possible arena hotel and conference center project.
Real estate developers Robert and Will Scott of WRK LLC want to demolish a warehouse at the corner of Eighth and R streets to make way for a 130-room, U-shaped hotel with retail on the ground floor. In conjunction, the University of Nebraska plans to renovate a press warehouse at Ninth and R into an arts and humanities center.
WKR also heads up a team called Lincoln Traction Partners that the city chose to develop a possible hotel and conference center in conjunction with the city’s proposed arena west of the Haymarket District. If voters approve the new arena, WRK would be heavily involved in the project.
The hotel and arts center ultimately gained City Council approval Monday, but only after Camp raised a long list of questions and concerns about the Scotts’ latest project in the Haymarket, the historic district he was instrumental in developing and where he owns eight buildings.
The redevelopment project requires City Council approval because it may qualify for up to $1.8 million in tax increment financing.
Camp raised several issues:
* Although nothing has been set in stone, he opposes the Scotts’ request for a guarantee of 100 of the 409 parking stalls in the city-owned Haymarket Garage at Ninth and Q streets.
* He questioned whether the project should get tax increment financing, an urban renewal financing tool in which the additional property taxes generated by the hotel are essentially funneled back into the project. It could be used to purchase property, demolish the warehouse or improve the sidewalks, dock or street.
* He accused WRK of being behind schedule on another city redevelopment project, a proposed mixed use building adjacent to a new police station the city leases from WRK in northeast Lincoln.
This is the second phase in WRK’s redevelopment of the Haymarket block, which began last year with renovation of the Sawmill Building into several new offices, including theirs, and the Bread & Cup restaurant. Camp asked a lot of questions about how TIF was used on the Sawmill project and whether the Scotts had delivered what they had promised.
He said WRK projected the Sawmill Building would create 43 new jobs, but by his count, it only created three; he said most of the jobs just relocated from other Lincoln sites. Will Scott and Josh Berger of WRK disputed his figures, saying their office alone created five jobs.
Camp also questioned whether the new jobs created by the hotel would pay more than about $18,000 annually. WRK is estimating the hotel and retail development will create up to 68 new jobs.
City officials said about $267,000 in TIF was used on the Sawmill phase, primarily for electric utility improvements and streetscape improvements. Hallie Salem of the Urban Development Department said they were also guaranteed 60 parking spaces in the Haymarket Garage. She said they’ve asked for about 100 spaces for the hotel project.
“Our intent is not to take every stall, but it… is obviously very important,” Will Scott said. “We’re trying not to be overly greedy.”
Camp made it clear he doesn’t think the city should give WRK so many parking stalls, saying other Haymarket property owners don’t get such perks. Salem said the parking director has said the garage has enough capacity to offer the stalls.
Councilman Ken Svoboda also said he won’t support guaranteeing WRK so many of the parking stalls.
Camp also questioned the impact of another hotel on existing downtown hotels, saying he supports economic development, but the city can’t “give away the store to one project.” Camp also said $1.8 million in TIF “is a substantial amount” and that some council members are privately concerned at the number of TIF projects the city is doing.
“This is quite a bit for just half a block of a large area,” Camp said.
Will Scott said the hotel is not being designed to compete with the other downtown hotels, and he said the Sawmill Building has “pulled the Haymarket District a block north.” He said it’s now a new destination point that benefits Camp’s properties, the Haymarket and the city. He said the Haymarket needs more energy and vitality 24/7.
“We’re talking about existing warehouses,” Will Scott said. “They’re dry storage.”
Camp also questioned WRK’s progress on its police station redevelopment. WRK redeveloped the old Alltel switching station at 49th and Huntington streets into a police substation and planned to build an adjacent building on city-owned land for retail, housing and offices.
“You got four lots from the city,” Camp said. “There was an agreement, but you haven’t done it.”
Will Scott said the project is taking longer than anticipated because it has grown in scope and they’re trying to make the building LEED-certified rather than “a stick building with a brick front.” He said the project is “close.”
Camp implied that WRK’s plate is getting a bit full.
“You’re doing lots of other projects,” Camp said, referring to the arena and Sawmill projects. “You’re not completing what you (promised).”
In the past, Councilwoman Robin Eschliman has also questioned the delay on the police station project, and she said Monday, “We do have some concerns that have been expressed here.”
But other council members seemed a bit taken aback by Camp’s public needling of the developers. After Camp finished, Councilman Dan Marvin said, “I want to thank you for your investment in our community.”
Councilman Doug Emery said he hoped in the future such questions would be asked in “a less public forum.”
And Councilman Jonathan Cook noted that if Camp had questions about the police project, all he would have had to do is walk a few steps from his office to Urban Development, which leases space in his Haymarket building.
Camp failed in his request for a three-week delay on the matter, and after Marvin suggested Camp shouldn’t vote on it because he has a possible conflict of interest, Camp abstained from voting on the redevelopment and it passed unanimously. Now negotiations between the city and WRK can commence and their agreement will go back to the council for final approval.
Reach Deena Winter at 473-2642 or dwinter@journalstar.com.

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Crazy wrote on July 8, 2008 2:59 am:
dennis wrote on July 8, 2008 3:17 am:
Really getting annoyed wrote on July 8, 2008 4:38 am:
another give away wrote on July 8, 2008 5:23 am:
me wrote on July 8, 2008 6:04 am:
Unbelievable wrote on July 8, 2008 6:08 am:
WHat wrote on July 8, 2008 6:18 am:
Terry wrote on July 8, 2008 6:38 am:
TG wrote on July 8, 2008 6:42 am:
Ted wrote on July 8, 2008 6:57 am:
Darrell wrote on July 8, 2008 7:31 am:
Ros wrote on July 8, 2008 7:35 am:
Doug Emery wrote on July 8, 2008 7:36 am:
J wrote on July 8, 2008 7:43 am:
Ricky wrote on July 8, 2008 7:46 am:
If it gets passed the city should manage the project; don't get an entity like our MECA involved.
Ricky From Omaha "
Mark wrote on July 8, 2008 7:56 am:
John Q wrote on July 8, 2008 8:05 am:
wrong wrote on July 8, 2008 8:08 am:
GO Jon Camp wrote on July 8, 2008 8:14 am:
JB wrote on July 8, 2008 8:19 am:
go for it wrote on July 8, 2008 8:19 am:
russell wrote on July 8, 2008 8:20 am:
Erik B. wrote on July 8, 2008 8:20 am:
as wrote on July 8, 2008 8:22 am:
Outside the Box wrote on July 8, 2008 8:22 am:
That probably is completely unrelated and not a conflict of interest. "
corruption rules wrote on July 8, 2008 8:33 am:
Vern wrote on July 8, 2008 9:13 am:
Cody wrote on July 8, 2008 9:31 am:
RE JB wrote on July 8, 2008 9:37 am:
Outsider wrote on July 8, 2008 9:38 am:
Mark wrote on July 8, 2008 9:39 am:
JB, Terry is right. Most educated voters and property owners ARE NOT supporting the proposed arena. I talk everyday with many people, and have yet to hear any support for it. It's just to costly in these uncertain economic times. The city and county are already proposing tax increases this year. You can bet LPS will soon follow. If you think the majority of the city supports this, please show us your "facts" to back that up. A few people claiming to support it on local blogs IS NOT a majority by any stretch of the imagination. "
dewboy wrote on July 8, 2008 9:48 am:
BYOB wrote on July 8, 2008 9:50 am:
So much for Historic Haymarket wrote on July 8, 2008 9:51 am:
Tired routine wrote on July 8, 2008 9:56 am:
Disappointed in my city wrote on July 8, 2008 9:56 am:
CS wrote on July 8, 2008 10:01 am:
Stacy wrote on July 8, 2008 10:07 am:
Not in support of Camps antics wrote on July 8, 2008 10:13 am:
Eric wrote on July 8, 2008 10:16 am:
Anyone else wrote on July 8, 2008 10:25 am:
JB wrote on July 8, 2008 10:31 am:
JoBeth wrote on July 8, 2008 10:41 am:
Yup wrote on July 8, 2008 10:43 am:
Huh wrote on July 8, 2008 10:57 am:
Artical wrote on July 8, 2008 11:10 am:
If the Haymarket is such a destination why are there any available parking spaces to "give" to anybody? When did any part of Lincoln become a 24/7 town?? How much TIF money did Mr.Camp recieve when he invested in the Haymarket when it was a destination for only bums?? How many parking spaces did he recieve for his buildings at taxpayer expense??
Why should homeowners,renters and business owners pay a property tax increase only to have that money re-invested in a hotel owner by two politically connected "developers"?
Lastly what less public forum should these questions be asked in? I believe that Mr.Emory,Mr.Marvin,Mr.Cook and the Mayor need to come terms with the fact that they work for ALL of the citizens and the citizens don't "WORK" for them and as such these are the types of questions that should be asked more often in a public forum! the afore mentioned may want to revisit the concerns of the Dallas company that builds arenas and convention center all over the country and examain why they said "We have never bid on a public project that was surrounded by so much secrecy and we have built them all over the country"
In closing I believe Mr.Marvin should be thanking Mr.Camp for investing in a "blighted" area of Lincoln's oldest neighborhood long before the Scott twins ahd fallen off their "big-wheels" for the first time! "
Arena support here wrote on July 8, 2008 11:29 am:
And, I have property in town valued at $550,000 so I'm well aware of the property taxes in this town. It's not cheap, but it's not the worst in the country either, so quit making it sound like it. "
To JB and J wrote on July 8, 2008 11:44 am:
The Qwest Center has been one of the most profitable arenas in the U.S. recently, and most of the recent arena studies here have shown the city can build it without public taxation.
Pershing loses money because it is completely inadequate and beyond repair. I can't imagine anyone wanting to the city to pay tens of millions to attempt to remodel and repair it, when it would still lose money because it wasn't designed for 21st century concert tours and events. "
To Doug Emery from Roger wrote on July 8, 2008 12:04 pm:
Also I always find it funny when a few people get on here and post that the "majority" of Lincolnites are going to vote this way or that way. I think when the arena vote comes up the "retireds" who know how everyone is going to vote are going to be very surprised. "
Mrs. Johnson wrote on July 8, 2008 12:28 pm:
SB wrote on July 8, 2008 12:59 pm:
J wrote on July 8, 2008 1:06 pm:
Oh please people... wrote on July 8, 2008 1:18 pm:
Try selling alley space wrote on July 8, 2008 1:28 pm:
Facts wrote on July 8, 2008 1:46 pm:
Bubba wrote on July 8, 2008 2:19 pm:
Douglass wrote on July 8, 2008 2:27 pm:
The problem is that an arena will not bring the money to Lincoln that we need. What Lincoln needs is business and industry to bring jobs which, in turn, will bring the need for entertainment venues. The proverbial cart is before the horse on this one.
If the City of Lincoln (Mayor and Council) made as much incentive for industrial and/or businesses to move in, the city would be in better fiscal shape.
Another big problem Lincoln has is that a giant chuck of land in the city is for State facilities (Capitol, UNL, State Fairgrounds, East Campus). The city cannot tax that land. The "benefit" is that we reap the money spend by those who inhabit and use those facilities. Unfortunately, that is not the same as property tax, which is sky-high to accomodate these areas. Based on Lincoln Police calls to local bars during college season, I'm sure a lot of the money washes out.
Property taxes are stupidly high. I have a friend that lives in Maryland. His $250,000 home (in a comparable to Lincoln area) has an annual property tax rate of $787. In Lincoln, my home that is valued at $122,000 has an annual property tax bill of $2,400. Ummm...okay.
These are some reasons that taxpayers and property owners cry "foul" to these "improvements". "
Arenahotel wont work wrote on July 8, 2008 3:23 pm:
Lincolnites, learn from Des Moines... you can't compete with the big boys in Omaha and KC. Right now big concerts often either pick one or the other facility to go to. Lincoln will not be a third. And to add to that the new baseball facility in Omaha is expected to hold large outdoor concerts during the summer months and there is a new 9,000+ seat ampitheater to be built just five blocks north of the quest for smaller acts.
You have no chance for a 15,000 seat arena to work in a small market that is within 1 hour of one large facility and 2.25 hours from another. "
J wrote on July 8, 2008 3:31 pm:
Doug Emery wrote on July 8, 2008 3:46 pm:
As for the "stunt" with Hy-Vee, I am sorry you feel that way. I simply attempted to represent my constituents. Amazingly in my discussions with Hy-Vee no one ever mentioned it. I believe if you talk to Hy-Vee's leadership they will tell you all of our discussions were professional and, ultimately fruitful for both parties. Additionally, even though I voted against Hy-Vee on their liquour licence I did NOT attack the person who spoke to the council about it. "
In response wrote on July 8, 2008 3:54 pm:
dewboy wrote on July 8, 2008 4:49 pm:
Investigage Camp wrote on July 8, 2008 5:34 pm:
kerryk wrote on July 8, 2008 6:13 pm:
Dont buy into arena wrote on July 8, 2008 6:28 pm:
Notice anything???? Yeah... they progressivly have less events scheduled with Des Moines having hardly anything in its arena besides a few B-list acts! And the Des Moines arena serves a much larger area (Cedar Rapids, Iowa City, etc etc) than Lincoln besides it's 600,000 metro area due to being 2 1/2 hours from the next large arena (quest).
I'm telling you lincolnites, don't let these Scott Brothers, the mayor or Vision 2015 fool you into thinking this thing will get paid without raising property taxes. And it's not just building it, but the continual maintenance and upkeep will cost the city millions each year besides financing of the initial debt. "
How Campy wrote on July 8, 2008 8:37 pm:
Dont buy into the new arena wrote on July 9, 2008 9:23 am:
Arena Lesson wrote on July 9, 2008 10:12 am:
It's true that it's the importing of businesses and industry that grows the tax base, that's not rocket science. The idea is that if you have a city with modern amenities (i.e. arena, convention center, University affiliated research centers, etc.), that it will help to attract new business and young business people. One of the things business look at when exploring to expand to new locations is "can they convince potential employess to relocate to City X"? What will give them incentive to do so? Right now, there is none.
I will gladly donate more property tax to benefit the future with this.
Does this help? You're welcome. "
Smart person Arena Lesson wrote on July 9, 2008 11:17 am:
Was anyone around the Haymarket this past weekend when 6000 people visited the "Bob" for religious activities? Amazing how many restaurants and ice cream shoppes were full with visiting people. I'm sure UNL didn't make a killing on the rent for that activity, but the businesses in town were grateful.
It's all about growth, and I want to be a part of it. "
Lincoln Taxpayer wrote on July 9, 2008 11:51 am:
Arena a no go wrote on July 9, 2008 12:19 pm:
Seriously, unless the arena gets cut back to 10,000 with the option of adding 3,000 seats much like the quest added seats, I see no reason to build it in the next 10 years. After that maybe, but not now when the city needs to concentrate on finishing the antelope valley project, working with UNL and the research park, developing/constructing the east main sewer line running along stephens creek for future housing/economic development and many other projects that have been sitting due to lack of funds.
An arena is the last thing on many residents lists. Just put it to a vote, it will be put down 70-30. And it will lose by that or a greater margin because many (25,000+) of the "youngins" that go to concerts are not registered lincoln voters due to being in college or cheating the system by not paying wheel tax/higher insurance for being a lincoln resident like they should after living here 90 days. "
To Arena lesson.... wrote on July 9, 2008 12:35 pm:
just like wrote on July 9, 2008 1:32 pm:
Ever been wrote on July 9, 2008 2:43 pm:
UNL wrote on July 9, 2008 3:19 pm:
Now THERE'S a smart 70-ish year old. "
Buck McIlvey wrote on July 9, 2008 7:25 pm:
Rick Poore wrote on July 16, 2008 4:30 pm:
You can sign at 2630 North 27th or pick up a petition and circulate it yourself.
We need to make sure that people who are elected are in it because they believe in public service, not personal gain. "