Cooperation appreciated on arena bill

LB912 would allow Lincoln to use 70 percent of the sales tax generated by a new arena, convention center and nearby hotels to pay for streets, sewers and street lights needed for the project.
City officials estimate that Lincoln would receive $654,000 a year under the system, which would include sales tax money from a possible new hotel and the existing Holiday Inn at Ninth and P streets.

The support Avery’s proposal has received is a credit to his deft negotiating. Last year, Lincoln senators helped Omaha when the city wanted legislative approval to keep more sales tax for the Qwest Center. This year, Omaha senators returned the favor.

Some might wonder whether the Lincoln project might compete with the Qwest Center, but Omaha officials said they don’t consider the Lincoln project a direct competitor.

The Journal Star editorial board long has supported greater cooperation between Lincoln and Omaha officials. In 1999, the Journal Star editorial board supported the original proposal to designate a portion of state sales tax for the Qwest Center.

At the time, the editorial board said the Omaha project would benefit the entire state by providing a new venue that would “bring new business, interesting events and stimulating activity to Nebraska.”

This week, a consultant predicted that a new Haymarket arena in Lincoln would provide similar benefits. John Kaatz of Convention, Sports and Leisure recommended the city build a 13,000- to 16,000-seat arena with 600 club seats and 20 suites.

Kaatz said that Lincoln — like other parts of the state — is missing out on many entertainment opportunities because 50-year-old Pershing Auditorium can accommodate only 17 percent of national touring events.

The new arena is also being considered as a new home for Husker basketball, although no agreement has been finalized.

LB912 is only enabling legislation. Passage does not mean the city necessarily will implement the new financing system.

But it does provide a new possibility that presumably could be offered to Lincoln voters in accordance with Mayor Chris Beutler’s pledge to put arena plans on the ballot.

To create that opportunity, support from Omaha and other parts of Nebraska is essential. The spirit of cooperation on display in the Legislature is encouraging.