OMAHA, Nebraska (KMTV) — Avenue One will become Omaha’s Good Life District, where the state sales tax would be 2.75%. To make this possible, Omaha voters will decide in November whether to establish a Good Life Redevelopment Fund.

• Avenue One is expected to represent an investment of $1.4 billion and create over 4,000 new jobs.
• We spoke with State Senator Lou Ann Linehan and Omaha City Councilman Brinker Harding.
• “Part of that was to expand our retail and offerings in Nebraska, which in turn would increase our sales tax because we lose a lot of sales taxable sales to other states.”

TRANSCRIPT OF THE MISSION:

Getting approval for Omaha’s Good Life District Avenue One went from the developer to the Nebraska Department of Economic Development (DED) and back to the Omaha City Council and the next step is you and your vote in November.

Avenue One is a new development featuring retail, residential, office and green space. When completed, it will cover 200 acres in fast-growing West Omaha.

According to DED, this is an estimated investment of $1.4 billion that will create over 4,000 new jobs.

In a Good Life District, the state sales tax is reduced by 50%, amounting to 2.75% for purchases in these districts.

According to DED, the taxes would continue to go to the state and the developer would not receive any share of the tax revenue.

For this to happen, a referendum must be held to establish the so-called Good Life Redevelopment Fund.

But why is the state willing to forego tax revenue by reducing property taxes?

State Senator Lou Ann Linahan says the goal is to bring more retail to customers so they stay in the state.

“Part of that was to expand our retail and our offerings in Nebraska, which in turn would increase our sales tax because we are losing a lot of sales taxable sales to other states,” Senator Linehan said.

Omaha City Councilman Brinker Harding says this fund will serve as the city’s pass-through fund through municipal bonds and help pay for some of the development work.

“Whatever amenities or public improvements or whatever part of the development is included in it will then be paid for out of the funds, out of the additional funds from the sales tax that the state is foregoing,” Harding said.

He says there is no risk to the city and the population benefits.

“And it will also be a magnet to bring visitors back from outside the city of Omaha, with the first-to-market retailers and some of those opportunities. I think that will be part of the attraction,” Harding said.

In the general election, Omaha voters will decide whether there will be funding for this Good Life District in the near future.