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Omaha Inland Port Authority turns attention to ‘innovation district’ set for $30M

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Omaha Inland Port Authority turns attention to ‘innovation district’ set for $30M

Oct 03, 2024 | 9:15 pm ET
By Cindy Gonzalez
Omaha Inland Port Authority turns attention to ‘innovation district’ set for $30M
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Inland Port Authority boundaries. (Courtesy of City of Omaha)

OMAHA — A $30 million pot of money set aside by Nebraska lawmakers for an Omaha innovation hub up to now has drawn little public attention — though that’s likely about to change.

The Omaha Inland Port Authority opened the door Thursday to seeking a consultant that would lay out a framework for how such an urban hotbed of leading-edge institutions, business and entrepreneurs could operate within its 300-acre jurisdiction.

“So far it’s been a footnote,” Trevon Brooks, a former Nebraska Department of Economic Development manager, said of the iHub.

Delayed action

A state law passed this year directed $30 million to the Omaha port authority to fuel creation of an innovation district. In the four months since the entity’s governing board was installed, however, it has been busy with its own startup activities as well as a controversial business park proposal.

The iHub

“Geographic areas where leading-edge anchor institutions and companies cluster and connect with start-ups, business incubators, and accelerators. They are also physically compact, transit-accessible, and technically-wired and offer mixed-use housing, office and retail.”

Bruce Katz and Julie Wagner, describing the emerging trend in a 2014 report for the Brookings Institution, “The Rise of Innovation Districts”

That business park, to be funded with a separate $90 million state allocation, is to be another anchor within the port authority boundaries that stretch west of Eppley Airfield. The area is seen as key to producing jobs and economic development for North Omaha residents.

During the port authority’s monthly meeting, board members ultimately delayed the effort to seek requests for consulting services for the innovation district. Members said they wanted to further review verbiage.

No one from the public testified either for or against the proposal to seek the contractor.

According to public records, the consultant would, among other things, recommend strategic and financial approaches to shaping the innovation district. It would involve community members, local businesses and governmental entities to develop a shared vision.

‘Slap in the face’

Leaders of two existing state-designated iHubs in Omaha were present for the board’s discussion.

Julian Young, of the Julian and Brittany Young iHub, said after the meeting that his organization would like to partner with the Omaha Innovation Connection Hub to build the innovation district within the port authority.

Young believes it would be a duplication of services to hire a consultant when two iHub organizations have launched similar efforts.

“The idea of hiring an outside consultant is kind of a slap in the face to those who have been doing that work,” Young told the Nebraska Examiner.

Brooks, the former DED official, who now is CEO of Omaha Innovation Connection Hub, said his organization was interested in pairing with the Young group to create the iHub activities in the port authority boundaries. The $30 million would help further their mission within that area, he said.

State Senator Terrell McKinney leans against a column during the Nebraska Legislature's special session to address local property tax
State Sen. Terrell McKinney of North Omaha also chairs the Inland Port Authority board.  (Zach Wendling/Nebraska Examiner)

State Sen. Terrell McKinney, who chairs the port authority, said that while the two organizations are designated as iHubs by the state, he has not seen “a lot going on.”

McKinney said the board could tap an existing iHub designee to manage the innovation district with the allotted state funding — or, he said, the port authority could choose to run the district itself.

‘Put our hands in the air’

According to reports recently submitted to the state, the Youngs say their iHub has raised $2.4 million in capital for businesses, enrolled 78 entrepreneurs in its program and helped 59 grow revenues.

The Omaha Innovation Connection Hub, in its report, said it has delayed programming but has raised more than $3 million. Brooks said in an interview that his team has been busy building partnerships and investors.

He said more than $80 billion in federal funds are expected to be distributed in coming year for iHubs activities across the country, and his team is building a foundation.

“Omaha needs to be in the game, and put our hands in the air,” Brooks said.

Young and Brooks said they were excited to hear the port authority board discussion, as iHubs in places such as Kansas City, Atlanta, Des Moines and St. Louis already have taken off.

No action on business park

Also Thursday, the port authority board again delayed action on the business park proposal by a partnership led by the nonprofit Omaha Economic Development Corp.

The OEDC team — which includes Burlington Capital and the Greater Omaha Chamber — needs a letter of support by the board. The team said it is hamstrung without a release of at least part of the $90 million to carry out pre-development activities.

Omaha Inland Port Authority turns attention to ‘innovation district’ set for $30M
George Achola of Burlington Capital answers questions Thursday from the Inland Port Authority board. Achola represents the partnership led by the Omaha Economic Development Corp., which was awarded a $90 million contract by the Nebraska Department of Economic Development to create a shovel-ready business park near Eppley Airfield. The Legislature later passed a law that, among other things, required a letter of support from the Inland Port board before the project could move forward in its boundaries. (Cindy Gonzalez/Nebraska Examiner)

The OEDC-led group seeks to use the $90 million to prepare a shovel-ready business park where industry can build factories and create jobs. It has focused on two potential sites: One is a former dump site and the other is occupied by dozens of homes. Many of those residents have said they either don’t want to leave or don’t believe they’ll get a fair deal on relocation.

Board members during the meeting also mentioned the possibility that a third site might be in the mix now.

McKinney again raised concerns about the OEDC partnership, saying it has failed to provide information he has asked for and has not engaged the community enough.

Moving the goalpost

George Achola of Burlington Capital said, however, the board has moved the goalpost since the DED awarded the contract.

“We are literally right now at an impasse,” he said.

Said McKinney: “We’re not moving the goalposts. You just dropped the ball.”

Achola said he wouldn’t continue the disagreement. “It’s not going to serve any purpose at this point.”

Board member Jacob Hoppe said that without the release of some funding, it appeared “they’re kind of stuck.”

In the end, Davielle Phillips, board vice president, asked board members to submit questions that “outline the rules of the game” and that would provide a comfort level to finally vote on the letter of support.

Achola said the team would answer additional questions.