Omaha still pushing for state incentive to help build sports facilities, despite Pillen headwinds

Omaha still pushing for state incentive to help build sports facilities, despite Pillen headwindsStory byCindy GonzalezWed, November 26, 2025 at 1:01 AM UTC·6 min read

A proposed new downtown Omaha sports stadium would be owned by the City of Omaha and leased by Union Omaha soccer club as a home base for its professional men's soccer team, a new women's soccer team and other community events. A mixed-use campus with a projected investment of up to $400 million also is envisioned. (Courtesy of Union Omaha)

OMAHA — Omaha city officials are taking steps to unlock a state incentive to help pay for two multimillion-dollar sports complexes, touting the public value of the projects in drawing tourism and other dollars.

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But as the City Council on Tuesday gave its full throttled, 7-0 support to request help via the Sports Arena Facility Financing Assistance Act, Gov. Jim Pillen doubled down on his resistance.

Pillen, whose approval is required to tap the incentive, told the Nebraska Examiner this week that the state has been “duped” for too long in approving sales tax exemptions he believes only shift the burdens to property taxes.

Gov. Jim Pillen at the Governor’s Mansion in Lincoln on Jan. 3, 2025. (Zach Wendling/Nebraska Examiner)

“Our state sales tax has been Swiss cheese for 45 years plus,” he said. “We don’t have a sales tax base to afford to do very much of anything.”

The governor has said he will not consider approval of any SAFFAA application until June at the earliest — after the next legislative session during which he hopes lawmakers will pass property tax relief. 

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Omaha City Council members pushed back on any notion that the turnback tax incentive for the two Omaha projects would harm the state’s financial picture. Councilwoman Aimee Melton, a Republican, called it a “win-win.” 

“This will be revenue positive,” Melton said. “The state will see an increase in revenue from Day One.” 

Governor support needed

At issue is a state incentive for arenas and sports complexes previously approved by the Nebraska Legislature. Applicants go through a state board that includes the governor, who must be among the majority for a project to be approved. Nine projects not including the two Omaha athletic complexes already are pending.

Omaha City Council members Pete Festersen (left) and Aimee Melton. (Aaron Sanderford/Nebraska Examiner)

Here’s how the financing incentive generally works for qualified Omaha ventures: Up to 70% of new state sales taxes generated within 600 yards of a sports facility goes to help pay off bonds for construction. The “new” tax revenue refers to sales at the facility or at retailers that sprout in the designated zone for a certain time after the project is announced. 

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In most cases, city voters must approve the use of such bonds.

Omaha officials Tuesday expressed doubt that the two athletic complexes in question would move forward without the SAFFAA turnback tax approval. If all hurdles were cleared, the state incentive would help cover costs for:

• Up to 16 multi-purpose athletic fields, a concession area and parking facilities at Tranquility Park near 120th and West Maple Road. The joint SAFFAA application will be submitted by the city and the nonprofit Omaha Public Facilities Corp. Public records show the city will seek up to $65 million in revenue bonds to pay up front costs. Initial documentation does not indicate how much of the turnback tax is being sought.

• An open-air soccer complex owned by the city and used by the Union Omaha professional team near 11th and Izard Streets. Soccer officials project the overall stadium will cost $140 million, including $114 in “hard” costs and the rest for infrastructure. Partners in the application are the city and Downtown Soccer Stadium, a nonprofit affiliated with the Union Omaha ownership group. The city says it will request $25 million from the state turnback tax.

Jennifer Taylor, deputy Omaha city attorney, said if the turnback tax was not granted, Omaha would have to stop and reevaluate.

“We’ll have to put the brakes on,” she told the council.

New ‘gateway’ to city

David Levy, an attorney representing the Union Omaha project, described the 6,500-seat stadium as “a milestone in a long and really exciting journey.” It would be home to both the men’s professional soccer “Owls” team and a new women’s soccer team.

New $140M Union Omaha soccer stadium, mixed-use village could hinge on paused state sports incentive

Other community uses, including games by high school teams, are envisioned for the stadium, which would be owned by the city and leased and managed by Union Omaha. 

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Levy said that projections show the stadium generating more tourism-related and other revenue for the city and state than the $25 million sought from the turnback tax over 20 years. Other sources, including tax-increment financing and program revenue, also would help pay for the stadium.

Partners expect new private housing, retail and commercial development of between $300 and $400 million near the complex. 

“This will be a great gateway and front door to our city at that location,” Levy said.

Melton said the land on which the stadium would rise currently is largely vacant and draws little property tax revenue. She said new tax revenue to be generated in that stadium zone would not exist if not for the project.

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The city is seeking to buy the roughly 25 acres around 11th and Izard Streets from Union Pacific Railroad for $18.7 million for the soccer stadium project. 

In a move not necessarily related to the stadium, the railroad seeks to buy back from the city long-vacant land at 1441 Capitol Ave. That square block, priced at $7.3 million, was once Union Pacific’s headquarters. The railroad told the Nebraska Examiner in a statement Friday that it is considering developing the property, but no firm decision has been made.

Public hearings on both land purchase agreements are to take place next Tuesday.

Tranquility growth

In an effort to safeguard taxpayers, both sports complex agreements are to include assurances that partners have sufficient funds before the projects move forward, Taylor said. 

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City Councilman Pete Festersen, a Democrat, said he was excited to support the projects he sees as a lure for families and young athletes and hoped that state partners would look favorably on the ventures.

At age 50, Omaha’s Tranquility Park athletic complex is getting $54 million makeover

The turnback tax application, he said, “is very important to the overall picture.” 

Around the Tranquility Park campus, which is a half century old, the Mulhall family proposes to build a mixed-use private development — contingent on the new additional sports facilities, council members said. 

The City of Omaha began talking years ago about upgrading the park to draw regional and national tournaments. The park is managed by the Omaha Parks and Recreation Department.

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In early 2024, the city selected JEO Consulting Group for planning development and design. The city tapped Kiewit as construction manager.

City Councilman Brinker Harding, a Republican running for Congress in the Omaha-based 2nd District, urged state decision-makers to approve all turnback tax projects if they’re revenue positive. He said he sees benefits to athletic activities beyond physical exercise. 

“It teaches our kids responsibility, dedication, accountability, sportsmanship and those are all good values we want to instill in our youth,” he said. “I’m a big believer in that youth sports can be a great pathway for that.” 

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