Mayor announces proposal to tear down Star Ship
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By DEENA WINTER / Lincoln Journal Star
Mayor Coleen Seng said Monday that she wants to demolish the Star Ship 9 discount theater, a Chinese restaurant and a Japanese restaurant to make way for a new downtown parking garage topped by a high-rise building. She envisions housing, offices or a hotel, or a combination of those. Related: Star Ship likely to close in June Map: Downtown Master Plan | Theater's fans upset at proposal
The parking garage could have retail outlets or a hotel lobby, for example, on the ground floor.
Seng also proposed that the city buy and demolish the now vacant Douglas 3 theater on the same block to make way for a future civic square, as recommended by the new Downtown Master Plan. Seng said planning of the civic square would begin after a developer is selected to build the high rise.
Seng said she has reached an agreement with Douglas Theatre Co. to buy the Star Ship for $2.1 million and Douglas 3 for $1.1 million — the value the county assessor has put on the buildings, according to Assistant City Attorney Joel Pedersen.
However, the City Council would have to sign off on the deal. If all goes as Seng plans, the Star Ship would close in June, when the city would take ownership.
The site could appeal to Missouri hotel magnate John Q. Hammons, who wanted to build a hotel just a few blocks east of the Star Ship last year. That block was home to four businesses. However, the project was derailed after the City Council declined to allow the use of condemnation and Hammons backed away.
On Monday, Hammons said he might be interested in the site — which he was instantly familiar enough with to ask, “Is that between P and Q on 13th?”
“I’ll take a strong look at it,” he said.
He said he still wants to build an extended stay hotel near the University of Nebraska-Lincoln downtown campus and has two or three sites in mind.
If Seng succeeds, much of the downtown block would be demolished, though a Chipotle Mexican Grill, Cold Stone Creamery and Valentino’s Pizza on the northwest corner of the block and a string of businesses on the south side of the block would be untouched.
But the high-rise would require relocation of the Taste of China Chinese restaurant and Wasabi!, a Japanese and international grill on the northeast corner of the block.
Seng said the project would expand the tax base, encourage investment and add parking downtown. She said the city has planned to build a new parking garage downtown for several years, and the Star Ship site was suggested in the Downtown Master Plan.
Aside from the cost to purchase the Star Ship, the parking garage would cost about $7 million to build, according to City Parking Manager Ken Smith. Those costs would be paid for through a revenue bond, which would be paid off with parking revenue.
City officials said the new parking garage would not require another increase in parking rates.
Parking rates in the city’s seven parking garages increased in November, in part to help pay for a new parking garage. At the time, city officials said there were more than 400 people on a waiting list to reserve parking stalls downtown. The new garage would have 400 to 600 parking stalls on up to a half dozen floors.
Tax increment financing, which would allow property taxes generated by the project to be used for improvements, and possibly city “advance land acquisition” funds would be used to purchase the Douglas 3.
City officials said removing the two restaurants in the way of the parking garage wasn’t crucial to its construction but would provide access to the garage from 14th and Q streets and make the project more cost-effective. Asked whether the city would use eminent domain, if necessary, to purchase the buildings, Seng said she couldn’t offer any promises.
“We’re trying to keep it nice and friendly,” she said.
The assistant director of the Urban Development Department, Dallas McGee, said, “Our intention is to assemble the site without the use of eminent domain.”
Wasabi! owner Robert Burns said the prospect of having to move his restaurant is “not pleasant.”
“Now we are faced with a situation of starting over,” he said.
While he understands the goal of improving downtown and increasing the tax base, a parking garage won’t accomplish that, he said. Ground floor retail will, however, and he said he’d like to relocate there.
He said he would “try to keep everything as positive as possible” as long as “our friends at the city” help him make things work. He doubted the city would use eminent domain to get his property.
The co-owner of the Taste of China, Chan Hua, was unwilling to comment publicly on how he feels about the project since he’s negotiating with the city.
Reach Deena Winter at 473-2642 or dwinter@journalstar.com.
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