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Arena task force 'moving away from' post office site

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By DEENA WINTER / Lincoln Journal Star

Monday, Sep 04, 2006 - 01:15:03 pm CDT

A task force studying possible locations for a new entertainment arena in Lincoln is now stepping back from one of the three finalists: the site of the city’s downtown post office.

In late June, the task force narrowed nine potential arena locations down to three, which are all near the Haymarket District: the site of the post office near Seventh and R streets, west of Lincoln Station in the Haymarket District, or south of Harris Overpass just south of the Haymarket. The Lincoln Station could serve as a front door to an arena, convention center or hotel.

The post office has often emerged as a favorite location, but that may be changing.

Story Photo
Possible site of a new convention center (LJS File)

“I think we’re probably moving more and more away from the post office site exactly,” said Tom Lorenz, general manager of the Pershing Center and chairman of a subcommittee studying locations.

He said it’s not about the fact that the U.S. Postal Service is considering consolidating Lincoln’s downtown post office with another city’s — which would cause Lincoln to lose hundreds of jobs — even though having to relocate the post office could make construction of a new post office in another city more tempting.

Lorenz said the two other sites are probably “cleaner” and would take less time, but the post office site may still work down the road, particularly if it’s abandoned by the Postal Service anyway.

“That may be a great location for a second or third phase (convention center or hotel),” Lorenz said.

It’s been nearly a year since a task force appointed by Mayor Coleen Seng recommended the city replace the Pershing Center with a new arena with up to 15,000 seats and enlist a private developer to build a hotel and convention center nearby.

After Seng made the group’s recommendations public, the task force was divided into four subcommittees and said it would report back to Seng in late May or early June. They’re a little behind schedule.

The subcommittees are now largely studying the cost of various scenarios.

City Finance Director Don Herz chairs a subcommittee studying ways to pay for the new arena. Herz said the arena could generate money from parking, the lodging tax, naming rights, premium seating, tickets and tax increment financing from the hotel or convention center.

Lincoln leaders will also try again to get legislation passed to allow sales tax revenue from nearby hotels to be used for startup costs, and sales tax revenue from the arena and new businesses in the area to pay off bonds to finance the arena.

As for one-time revenue sources, Herz said he’s looking at something similar to a revenue bond.

“I think what we would like to do is see if we have enough revenue sources that would be sufficient to amortize the cost of a bond issue without having to pay for any of that with property taxes,” he said.

If that’s not feasible, a general obligation bond is possible but would require voter approval.

The committee is also trying to estimate the cost of combining the State Fair and Lancaster Event Center onto one of their two campuses. The task force has talked about a land swap because the University of Nebraska owns several hundred acres of land near the Lancaster Event Center.

Kent Morgan, assistant director of the city-county planning department, is a one-man subcommittee who’s been looking at flood plain, utilities and ground contamination issues near the Haymarket.

“At this point we haven’t found anything that would preclude the development of that site,” he said.

He is working with the city’s stormwater management division on analysis of the flood plain for both the potential arena sites and the State Fair and Event Center sites, in light of possible new regulations for the Salt Creek drainage area the city is working on.

A Kansas City consultant that did flood plain work for the city was also hired to look at the impact of the city’s potential new regulations on basins at the arena sites and co-located State Fair and Event Center sites. Morgan said the consultant was paid about $10,000.

Other than that, everyone else’s time has been donated to the effort to study an arena.

The chairman of the full arena task force, Dick Campbell, said the committee plans to meet again later this month and hopes to have a final report ready for the mayor by October.

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.


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Buff wrote on September 4, 2006 1:19 am:
" ...."the U.S. Postal Service is considering consolidating Lincoln’s downtown post office with another city’s — which would cause Lincoln to lose hundreds of jobs"......Once again, Lincoln is losing out to bigger and better places. Maybe the convention center/arena discussion should be tabled until the City finds a way to keep the downtown post office here, and those hundreds of jobs. "
Rick wrote on September 4, 2006 7:57 am:
" Once again our city leader show their stupidity. All they have to do is look to the Quest center in Omaha. This was going to be the big draw, and I believe it has not been in the black or self-supporting yet. Lincoln will never become a convention city, because of one big issue “Lincoln is not a friendly city” we are too restrictive and up tight. I could go on about the problems, but the people with any common sense already know this and the others will never understand. "
Stella wrote on September 4, 2006 8:40 am:
" While the Postal Service maybe considering a consolidation, the Chamber of Commerce and LIBA could be challenging the idea with dta based rebutal to keep joba here. As the capitol city and with location an hour closer to "central-western" Nebraska there should be a logistical advantage for relocation TO Lincoln. Lincoln could be in a defensive position because her offense line has not been develope and the "O St" gang never adapted when a "West Coast" strategy could and should be implemented. The od puppet masters, as evidenced by the obstructionists of widening 27th St, could be rising for dynamic chage, instead they are playig games ad that is leaving the entire city and growth behid. "
Jeanette wrote on September 4, 2006 9:52 am:
" Doug- if the Processing and Distribution postal center is consolidated with Omaha, there will be a loss of around 200 jobs in Lincoln- clerks, mail handlers, custodians, maintenance etc. Furthermore- there are many bulk mailers in and around Lincoln who rely on the Lincoln P&DC to make their businesses work. I can't see them staying here if they have to truck their mail to Omaha to be cancelled. It would not make good business sense. Unfortunately, while this silly idea may have run its course, this administration has already sent the message to the USPS that they don't want them here. Not real smart, do ya think? With the many many vacant businesses in Lincoln (possible places to put an arena), this location should never have been considered. We don't need to force more good jobs out of Lincoln. Omaha has enough of them already. "
WJ wrote on September 4, 2006 11:42 am:
" I agree with Rick. Theres nothing to be happy or friendly in Lincoln about. The main thing that keeps people up tight is the property tax. As a retired person and have to start using my savings just to pay my property tax, means its over time to leave this state. And thats before the Nov. increased tax bill coming. To add to that are the insurance companies increasing property insurance 11% plus a year for years. Now not only is there uninsured health people because they can't afford it they are seeing uninsured property because they can't afford insurance. Would you want to start or move an industry to Lincoln or Nebraska when they are nearly the highest taxed state in the U.S.?? You can talk about the underpaid teachers all you want, but this year I've seen several retired teachers buy new top of the line cars. I can't because I guess I didn't get in on the big teachers pay from the tax payers. With Lincoln's taxes, somebodies are getting a nice big paycheck!!! "
Steve wrote on September 4, 2006 12:02 pm:
" I wounder if the location subcommittee has considered the Fair Grounds? I don't know if it would work, but should at leased be looked at, if it already hasn't. It would be a great way to upgrade the fair grounds. w With a new city arena and private convention center. I beleive I read, in the Journal Star, recently that the State Fair is looking at tearing down the livestock barns north of the Devany Center and building new ones else where on the grounds. This would free up this area for an areana. It would also alow the two arenas to be used in conjuntion with each other if needed, such as the State High School Basketball Tournies. "
Robert James wrote on September 4, 2006 3:14 pm:
" Lincoln - lets use the expansion space in SW lincoln to build a big new areana that will set empty for 3/4 of the year. Like the "event Center". No better yet - move the state fair to Waverly - it would be closer to Omaha, leave the event center where it is - costing thousands of dollars annually to maintain - and build a new convention center in Ashland. It would serve SE Nebraska????? I've heard all lthese ideas in the last 20 years and no one has really set down and discussed what economic development for Nebraska, and for SE Nebraska Means. I include Omaha and Lincoln as one Metro plex. Unitl Lincoln's government gets off its "clean industry" kick Lincoln will always be second place. Get in there, have surplus of electricity, surplus phone lines, surplus gas and utility as well as infrastructure of roads and then start looking for high grade heave industry to shore up the sagging local job market. With 60 of my frinds in "entry level jobs" with and without PH.D.'s isn't time we really look at what we have. Dive the O street gang out and get progressive LEADERSHIP in to the fair city. Yes we have a University town - now lets marry university and industry. "

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