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Omaha Economic Development Corporation
2221 North 24th Street Omaha, NE 68110
Same
www.oedc.info
Facebook (https://www.facebook.com/OEDCOmaha); Instagram (https://www.instagram.com/oedcomaha/)
Michael B. Maroney
President/CEO
mmaroney@oedc.info
+1 (402) 346-2300
Yes
This project relies on the expertise of Omaha Economic Development Corporation and its consultants: Alley Poyner Macchietto Architecture (Architecture); Ehrhart Griffin & Associates (Engineering Firm); LundRoss Constructors (General Contractor); McGill Gotsdenier Workman LEPP ( Legal Consulting Firm); Thompson, Dressen & Dorner, Inc. and Alvine Engineering.
OEDC Organizational Chart is uploaded as an attachment.
Founded in 1977 to address blight and poverty, OEDC's mission and goals are to transform the quality of life of the residents of North Omaha by implementing economic development and community revitalization projects that result in the creation of diverse housing choices, commercial space, jobs, networked training and business ownership opportunities. As an organization, we invest in people and projects so that individuals and families are empowered to become financially self-sufficient and to actively participate in the community. Our strategy is to connect multiple facets of revitalization through a common plan, on a place-based, place-driven level. Organizationally, we believe that the root of poverty lies in the political and economic structures that have and continue to limit equality of opportunity and restrict economic mobility. We prioritize equity through activities that, based on local data and national best practices, will generate a better standard of living for all residents within our service area; activities that provide affordable places to live, across income ranges; that re-shape locally based economic systems in a sustainable way; and that have a scalable impact on people’s day to day experience. Our vision is to transform North Omaha into a viable, residentially and economically successful community that enables its residents to grow and live in a prosperous environment by working in partnership with local residents and community stakeholders. Our website, www.oedc.info, shares the details of our responses to adversity, trauma and tragedy in North Omaha. Our economic activities have created commercial space opportunities for minority owned start-up/emerging businesses and job creation include: Long School Shopping Center, the Learning Center of North Omaha, the Fair Deal Village MarketPlace, North End Teleservices, and the renovation of the Omaha Star. We have assembled nearly $15 million of investment dollars, leading to the provision of low cost commercial space for 28 small businesses. We invested $2.4 million to seed the start-up of one urban job center – North End Teleservices. Our residential activities have addressed physical deterioration and the lack of diverse housing types for a variety of income levels, taking blighted/abandoned properties and transforming them into than 500 multi-family and single-family housing units, to stabilize living conditions that are critical to building on our vision. We have taken bold steps in constructing housing that is both environmentally responsible and healthy for tenants, including: The Margaret, a completely green (solar and geothermal energy) affordable multi-family development; Neighborhood Stabilization Program Single Family homes with renewable energy technologies (5 owner occupied; 5 rentals); and the Fair Deal Village East Senior Apartments (healthy indoor/outdoor living features for seniors). Currently, we have six new single-family houses, for sale to middle income households (80-200% AMI), under construction and an adaptive reuse project, the Larimore, converting the facility into 45 units of senior housing. OEDC’s Total Dollars assembled, invested and managed for residential real estate development is in excess of $60,000,000. OEDC has been recognized for its ability to manage and administer Federal grants, including three Office of Community Services, Community Economic Development awards. Staff have successfully completed semi-annual and annual fiscal and performance reporting requirements, annual and bi-annual onsite monitoring visits, and all grant closeout processes.
Community Innovation Campus
11830400.0
9000000.0
Capital project
The Community Innovation Campus is a collaborative project undertaken between OEDC and CHI Health to support the relocation of CHI’s commissary kitchen and to create a new dietary call center. The project will relocate a function that had been moved deep into the suburbs of Omaha, where North Omaha residents, many of whom previously staffed the kitchen, couldn’t work due to transportation and commute time constraints. To support this project, OEDC will rehab a 19,000+ SF facility located in North Omaha at 1127 North 20th Street. The Community Innovation Campus addresses the issues of income inequality and access to urban jobs with significant career ladder opportunities for local residents. All of the jobs will pay in excess of the Living Wage, offer benefits, and are well above current per capita income levels in the targeted QCTs. The Community Innovation Campus meets the preliminary criteria in LB1024, including funding commitments, timing and project readiness. The Campus aligns with our mission, and that of the Legislature, to be transformational, improving the quality of life of North Omaha residents. The Campus is a strategically designed project that demonstrates how a well-shepherded, public-private partnership can lead to sustainable economic outcomes. It will cause a next level change in the economic performance of North Omaha, providing opportunity to low-income residents to raise household income levels, which brings more dollars to circulate within the surrounding neighborhood businesses. A key strategy included with this project is the targeted disadvantaged recruitment and hiring of local residents who are low income. The negotiated lease terms contribute to long lasting economic growth that is sustainable. Construction Documents are complete, have been reviewed by the City of Omaha Planning Department, and the building permit is ready. We anticipate rehabilitation on/conversion of the facility into the Community Innovation Campus to begin within 90 days of state-approved ARPA funds for this project. In working with our General Contractor, LundRoss Constructors, we are monitoring lead times for materials and equipment orders. With fluctuations in delivery times, we anticipate the project will be completed within 12-18 months of the Notice to Proceed for the contractor.
Concept (2017) and schematic (2019) design for the Community Innovation Campus are complete. Following several interruptions to the process (CHI merger with Dignity Health to form CommonSpirit, change in local CHI leadership, reopening lease negotiations with CommonSpirit and COVID-19), Construction Documents are complete, have been reviewed by the City of Omaha Planning Department, and the building permit is ready. We anticipate rehabilitation on/conversion of the facility into the Community Innovation Campus to begin within 90 days of state-approved ARPA funds for this project. In working with our General Contractor, LundRoss Constructors, we are monitoring lead times for materials and equipment orders. With fluctuations in delivery times, we anticipate the project will be completed within 12-18 months of the Notice to Proceed for the contractor.
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Fundamental Change (i.e., a proposal that will continue to elevate North or South Omaha's presence and perception within the region, significantly improving the lives of area residents through physical development) Long-Lasting Economic Growth (i.e., a proposal that will foster gainful employment opportunities and financial investment in the area, leading to the creation of generational wealth and widespread economic vitality in North and South Omaha) Transformational (i.e., a proposal that will help energize, recharge, or spur significant and favorable advancements in North or South Omaha's function or appearance)
Other Infrastructure (i.e., develop or improve broadband, business districts, roadways, sewer, etc.) Quality of Life (i.e., create or enhance natural spaces, mixed uses, parks, safety, etc.) Sustainable Community (i.e., create or enhance housing, services, education, civic uses, recreation, etc.)
The Community Innovation Campus specifically addresses the following identified community needs identified in Appendix A: 1) Sustainable Community: Development within the Specific Context for General Business Uses, Industry/Workforce, Office Uses; 2) Other Infrastructure: A Business District Establishment or Space; 3) Quality of Life: Safety. It aligns with the objectives listed in Appendix B: create sweeping economic growth through investing in employment and job creation that will foster multi-generational wealth in North Omaha. The Campus is a collaborative project by OEDC and CHI Health to support the relocation of CHI’s commissary kitchen and to create a new dietary call center. The project effectively repatriates a function that was moved deep into the suburbs of Omaha, where North Omaha residents, many of whom previously staffed the kitchen, could no longer work due to transportation and commute time constraints. To support this project, OEDC will rehab a 19,000+ SF facility located in North Omaha which will be leased to CHI Health under a 10-year NNN lease, with an option for (4) renewal 5-year terms. The kitchen facility will operate 24/7 to provide fresh healthy foods to patients and others across its footprint. At full staffing, CHI anticipates 6,000 meals per day will be prepared and distributed across its service area geography in Nebraska and Iowa. The dietary call center will offer/receive information from the clinical staff and will coordinate the management and control the food service dietary restrictions for patients to ensure the best nutrition for those patients. The biggest threat to a sustainable community has been/remains income inequality. The Per Capita Income of residents in QCT 11 and 12/Zip Code 68110 and 68111 is $13,921, compared to Douglas County, $42,815 (2016-2020 ACS 5 Year Estimates). This equates to an average hourly wage of $6.69/hr/QCT vs $20.58/hr/County. When measuring Median Household Income (MHI), within the project target QCTs it is $29,365, compared to $89,914 Douglas County. Using the US Census OnTheMap application, we found that 22% of employed workers earn $1,250 or less per month ($7.81/hr); 35% earn between $1,251 and $3,333 per month. The impact of these economic conditions has caused the formation of concentrated, persistent poverty tracts where individuals and households live well below a living wage level. For Douglas County, NE, this ranges from $17.30/hr for a single person household, $34.08/hr for 2 person household, and $42.68 for 3 person household. The project addresses the issues of income inequality and access. It will provide easily accessible, urban jobs for local residents, and career ladder opportunities for employees. All of the jobs will pay in excess of the Living Wage, offer benefits, and are well above current per capita income levels in the targeted QCTs. Because CHI Health is in a growth mode, the facility will accommodate future growth with immediate employment starting at approximately 75 FTEs, and a goal to grow that to 175 FTEs within 3-5 years of occupancy. The executed lease contains a special provision detailing CHI’s commitment to “having at least 75% of all new or replacement jobs be prioritized for low-income residents”, household incomes to be validated by an employee income affidavit. Additionally, the rehabilitation of the site will create approximately 34 construction FTEs earning a projected median wage of $20.74 per hour (based on the most recent BLS Labor Statistics). Located at 1127 North 20th Street, Omaha, NE, the Campus strengthens the connections between the neighborhoods and the emerging N 24th business district. With improvements to the sidewalks, street and parking lot lighting, and landscaping the facility will elevate a sense of safety and security.
In reviewing the Visioning Workshops SWOT summary found in Appendix B for North Omaha, OEDC identified several gaps/needs that the Community Innovation Campus project addresses including: - the perceived inability to positively impact economic development strategies for sustainability/longevity, - the lack of spatially connected businesses and the related impact on lack of safe, walkable streets, - land ownership by entities outside the local community, and - most importantly, the project addresses the ongoing concern over the lack of jobs within the area. The Campus is a strategically designed project that demonstrates how a well-shepherded, public-private partnership can lead to sustainable economic outcomes. As stated in the response to the previous question regarding community needs, the Campus is a collaborative project undertaken by OEDC and CHI Health to support the relocation of CHI’s commissary kitchen and to create a new dietary call center. Negotiations and planning began in 2017; both parties have remained committed to getting this project done. The terms of the executed agreement guarantee a minimum ten year lease period, with the possibility of the business continuing up to another twenty years, contingent upon 5 year renewals. In creating its second urban job center in North Omaha, OEDC worked through terms that contain a special provision that CHI is committed to “having at least 75% of all new or replacement jobs be prioritized for low-income residents”, household incomes to be validated by an employee income affidavit. At full scale operations, this facility will employ up to 175 full-time individuals across a variety of career paths. Pay scales are above the 2022 livable wage calculation for Douglas County and benefits offered equate to an additional $3/hr above paid wages. This project will be implemented on property owned by OEDC (evidence of site control included in attachments) and will remain under the organization’s ownership for the duration of the lease. Located at 1127 North 24th Street, the Community Innovation Campus strengthens the south entrance between the neighborhoods and the emerging business district along North 24th Street. The activated facility will elevate a sense of safety and security as residents benefit from its 24/7 operations.
LB 1024 directs the use of ARPA funds for “the economic recovery of those communities and neighborhoods within qualified census tracts…that were disproportionately impacted by the COVID-19 public health emergency. Legislative priorities emphasized housing needs, assistance for small businesses, job training and business development within these communities and neighborhoods. It is our understanding that expected outcomes should foster desirable transformation, lead to fundamental change, and result in long lasting growth. The Community Innovation Campus meets the preliminary criteria in LB1024, including funding commitments, timing and project readiness. The Campus is located in a Qualified Census Tract, 12, and with a targeted hiring strategy directed to low-income persons, it is a direct benefit to residents of all Qualified Census Tracts in North and South Omaha. The 2.1 acre site is owned by OEDC. With an allocation of an ARPA grant in the amount of $9,000,000, this project is ready to begin in late spring, 2023; all construction documents have been reviewed and approved by the City of Omaha Planning Department and the Building Permit is ready. All additional funding has been secured through a combined capital stack of Office of Community Services Community Economic Development Grant ($800,000); a Douglas County ARPA Grant ($500,000); a Weitz Family Foundation Grant ($500,000); Tax Increment Financing ($385,000); and Owner Equity ($645,400). The Campus aligns with our mission, and that of the Legislature, to be transformational, improving the quality of life of North Omaha residents. Similar to the job creation impact our first job center (North End Teleservices) generated, it will cause a next level change in the economic performance of North Omaha, providing opportunity to low-income residents to raise household income levels, which brings more dollars to circulate within the surrounding neighborhood businesses. The terms of the lease contribute to long lasting economic growth that is sustainable; our capital stack demonstrates the ability the project has had to attract outside investment.
Staffing at this new urban job center will grow from the current 75 employees to 175 positions (approx.), entry level to high level management, with benefits. Jobs housed at the facility include: Division Director; Operations Directors; Clinical Nutrition Director; Central Diet Office Supervisor; Nutrition and Operation Assistants; Executive Chefs; Cooks; Executive bakers; Truck Drivers; Tray and Dish Line staff. Average hourly wages range from $18.48/hr to $43.58/hr, related to the position.
175
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Average hourly wages range from $18.48/hr to $43.58/hr. related to the position. Projected median wages of $20.74 per hour for construction jobs is based on the recent BLS Labor Statistics.
While OEDC will not be involved in the day-to-day business of CHI Health, concept development discussions have always included the possibility that, as the Campus evolves, space may be dedicated to start-up/emerging locally owned businesses that would complement the needs of the healthcare system, such as wheel chair repair service, etc.
With the incorporation of the North Omaha Village Revitalization Plan into the City of Omaha’s Master Plan in 2011, OEDC re-focused its economic development activities toward the diversification of real estate that accommodates large and small businesses. The vision is intentional: reverse the North Omaha business desert, with a particular focus on the historic North 24th Street Corridor. We initiate projects to improve property value and promote job creation. The community has benefited from this decision in our generation/housing of 28 new small business and an urban job center in QCTs 11 and 12. This has contributed to modest improvements in the business climate in/around North 24th Street. The community has also benefited from visible signs of improvement in physical assets which has increased the area’s livability. The Community Innovation Campus is our second urban job center project. It furthers our commitment to implement projects that provide meaningful employment opportunities, good wages and benefits for low- income residents. A key strategy included with this project is the targeted disadvantaged recruitment and hiring of local residents who are low income.
Our experience reinforces our commitment to build strong, sustainable neighborhoods and communities in North Omaha; our efforts address income inequality and social injustice. We use our real estate development activities as a mechanism to foster access for those who live, because of their race/ethnicity, a poor quality of life filled with the stress of living in concentrated, persistent community level poverty, un/underemployment, limited access to higher wage occupations, rent cost burdens, and significantly reduced capacity to build wealth. This project promotes equity and inclusion by incorporating hiring strategies for those who have been marginalized economically when seeking opportunities for security and advancement. While not comprehensive, it is how we are working to fundamentally transform systems that have previously constructed barriers to security and advancement. In this way, the Campus contributes to the long-term sustainability of the community.
The Community Innovation Campus incorporates proven community building strategies that focus on hospitals as active partners with nonprofit community development organizations in building the local economy and community wealth, specifically in low-income communities. This concept of hospitals as “anchor institutions” emerged in the early 1990’s where groups such as Catholic Healthcare West (now Dignity Health) in San Francisco, Gundersen Lutheran Hospital in Wisconsin, and Mayo Clinic implemented policies and investment strategies to target pressing economic and health challenges in the communities where they had a physical location. Since then, more and more hospital systems have leveraged their financial and human resources to become leading employers in local economic engines. One of the best examples of success with this practice is Evergreen Cooperatives, Cleveland, OH. University Hospitals and Cleveland Clinic along with the Cleveland Foundation financed the group that hires from target neighborhoods, providing low-income individuals with jobs and the opportunity to own part of a business and build wealth. The Brookings Institute found that anchor institution hospitals account for 35% of the locally employed workforce. Research from The Initiative for a Competitive Inner City notes that anchor institutions are an essential part of the strategic framework for potentially increasing incomes and helping reduce poverty and unemployment in underserved communities. From the beginning, the Community Innovation Campus was framed to hire locally, provide livable wages and benefits, and have the future potential to generate small locally owned businesses.
OEDC uses the following criteria to measure the success of job creation projects. The criteria are part of the Office of Community Services Community Economic Development program reporting requirements and were developed in partnership with The Community Action Partnership and are applicable to this project. Typical Key Employment Outcomes measured are: - Total # of full-time positions created for low-income and non-low-income individuals - Total # of full-time positions created for low-income individuals - Total # of part-time positions created for low-income individuals - # of full-time positions that were created for low-income individuals at least six months ago - # of full-time positions created for low-income individuals that have been or were operational in the community for AT LEAST six consecutive months - Total # of full-time positions created for low-income individuals with health care benefits - Total # of full-time positions created for low-income individuals with paid sick leave - Total # of low-income individuals trained in skills for the jobs created - Average STARTING wage of all low-income individuals, placed in full-time positions - # of individuals in full-time positions created who received job promotions - # of individuals in full-time positions created who received pay raises - Total # of low-income individuals who retained their full-time jobs for AT LEAST six consecutive months.
Data is collected, aggregated and analyzed by OEDC’s Research and Development Director, using an Excel Spreadsheet. Reports are typically provided semi-annually in a Word table format, facilitating risk management of identified outcomes.
No
Yes
The collaborative partner in this project is CHI Health. OEDC will work with the Urban League and Heartland Workforce Solutions to refer potential employees to CHI.
Our partnership with CHI has been formalized by a 10 year lease agreement with multiple renewal options.
No
OEDC owns the building and site of the Community Innovation Campus, 1127 North 20th Street, Omaha, Nebraska 68102. The building has been vacant for several years. The site measures 2.05 acres, including an industrial building measuring 19,060 square feet.
Within one or more QCTs
Documents are uploaded.
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Within 12-18 months of a $9,000,0000 Omaha Economic Recovery ARPA grant, the Community Innovation Campus will be operationalized. This project will provide meaningful employment opportunities, good wages and benefits for low- income residents of North Omaha. This request is for those non-recurring construction and equipment costs associated with the repurposing of 1127 North 20th Street to meet CHI’s needs for a commercial kitchen and dietary call center that will ultimately employ 175 individuals to meet production demand for 6,000 meals per day. When concept design began in 2017, preliminary construction costs estimates were $4.8 million; equipment, $1.8 million. With price fluctuations and interruptions to supply chains across the scope of this project, these costs have escalated to $7.24 million on the construction side and $2.4 million on the equipment side. This does not include soft costs. Response for fiscal support of this project was initially strong. However, over time, private funding for this project has become limited. While the Weitz Foundation provided a $500,000 grant, other foundations have not. We have reached our five-year deadline for fulfilling our obligations under the Community Economic Development grant; as a result, the $800,000 may be at risk. Since 2021, we have been working with the TAG Group, CityScape Capital, and US Bank to secure a New Market Tax Credit Allocation. All 2022 allocations were expended. We are continuing to work with TAG to identify a possible 2023 allocation, but there are many projects already in line for NMTC. With an Omaha Economic Recovery grant, work on the Community Innovation Campus project can begin within 90 days of award. All post rehab recurring expenses are covered by the lease terms.
As shown in the Table of Uses document, LB1024 grant funds will be used to support construction and equipment costs associated with the rehab of the facility.
Yes
The Campus project is an economically sound investment on the part of OEDC. Anticipated cash flow from rent revenues generated to OEDC from this project will cover the ongoing future recurring expenses and have a positive impact on our operating budget. The tenant, CHI Health, is committed to a 10-year lease based on the following terms: Years 1-3: $8.00/sf; Years 4-5: $9.00/sf; Years 6-7: $10.00/sf; Years 8-9: $11.00/sf; Year 10: $12.00/sf. This is a NNN lease. Tenant is the sole tenant and will pay all expenses. Lease terms include options to renew, at a scaled increase, for four additional five-year terms, following the first 10 year term.
All additional funding has been secured through a combined capital stack of Office of Community Services Community Economic Development Grant ($800,000); a Douglas County ARPA Grant ($500,000); a Weitz Family Foundation Grant ($500,000); Tax Increment Financing ($385,000); and Owner Equity ($645,400).
All additional funding has been secured.
This project will not be able to continue without an award through the Omaha Economic Recovery Act opportunity.
No, this project is not scalable; tenancy requires it must be completed in one phase.
OEDC is providing an Owner Equity in the amount of $645,400 to this project as well as staff time.
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Additional Location Documents (see application for list) Data table of uses (breakdown of how the requested funds will be used for your proposal) Documentation of site control (proof of ownership, option, purchase contract, or long-term lease agreement) Environmental assessment of subject site. Is the property a brownfield site? Organizational Chart Plans and detailed descriptions, including pictures and a map of the site location/surrounding area Pro Forma Proposal Budget/Sources and Uses Schedule