Omaha Inland Port Authority turns attention to ‘innovation’
OMAHA — Nebraska lawmakers’ $30 million in funding for an Omaha innovation center has so far attracted little public attention — though that may be about to change.
The Omaha Inland Port Authority opened its doors Thursday to a consultant who will develop a framework for how to operate such an urban hotbed of cutting-edge institutions, businesses and entrepreneurs within its 300-acre jurisdiction.
“So far, it’s just a footnote,” former Nebraska Economic Development Manager Trevon Brooks said of iHub.
sluggish
A state law passed this year gave $30 million to the Omaha Port Authority to spur the creation of an innovation district. However, in the four months since the entity’s council was formed, it has been busy with its own entrepreneurial activities as well as a controversial business park proposal.
The business park, which will be funded separately with $90 million in state funding, will be another anchor within the Port Authority’s boundaries west of Eppley Airport. The area is seen as key to job creation and economic development for North Omaha residents.
At the Port Authority’s monthly meeting, board members ultimately deferred a request for consulting services for the Innovation District. Members said they wanted the wording to be scrutinized further.
No members of the public testified for or against the proposal to seek a contractor.
Among other things, the consultants will recommend strategic and financial approaches to shaping the innovation district, according to public records. Community members, local businesses and government entities will be engaged to build a shared vision.
‘slap in the face’
Leaders from Omaha’s two existing state-appointed iHubs attended the board discussion.
Julian and Brittany Young Julian Young of iHub said after the meeting that the organization hopes to work with the Omaha Innovation Connection Center to build an innovation district within the Port Authority.
Young believes that when two iHub organizations launch similar efforts, hiring consultants will be a duplication of services.
“The idea of hiring outside consultants is a slap in the face to those who have been doing this work,” Young told the Nebraska Examiner.
Brooks, a former DED official who is now CEO of Omaha’s Center for Innovation Connection, said his organization is interested in partnering with Young Group to develop iHub activities within the Port Authority’s boundaries. He said the $30 million will help further their mission in this area.
North Omaha state Sen. Terrell McKinney also serves as chairman of the Inland Port Authority’s board of directors. (Zach Wendling/Nebraska Examiner)
State Sen. Terrell McKinney, the Port Authority chairman, said while the two organizations are designated iHubs by the state, he doesn’t see “a lot happening.”
McKinney said the board could use existing iHub designees to manage the innovation zone with allocated state funds, or, he said, the Port Authority could choose to manage the zone itself.
“Put our hands in the air”
According to a recent report filed with the state, the Youngs said their iHub has raised $2.4 million in funding for businesses, attracted 78 entrepreneurs to its program, and helped 59 entrepreneurs increase their income.
Omaha’s Innovation Connectivity Center said in its report that it has delayed plans for the project 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 funding is expected next year for iHubs activities across the country, and his team is establishing a foundation.
“Omaha needs to get 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’s discussions as iHubs have already launched in places like Kansas City, Atlanta, Des Moines and St. Louis.
No action taken on business parks
Also Thursday, the Port Authority board again delayed action on a business park proposal from a partnership led by the nonprofit Omaha Economic Development Corporation.
The OEDC team, which includes Burlington Capital and the Greater Omaha Chamber of Commerce, requires a letter of support from the board of directors. The team said it would be in trouble if at least some of the $90 million was not released for pre-development activities.
George Achola of Burlington Capital responded to questions from the Inland Port Authority’s board of directors Thursday. Achola represents a partnership led by the Omaha Economic Development Corporation, which was awarded a $90 million contract from the Nebraska Department of Economic Development to build a ready-to-use business park near Eppley Airport . The Legislature later passed a law requiring, among other things, a letter of support from the Inland Ports Commission before the project could move forward within its borders. (Cindy Gonzalez/Nebraska Examiner)
The OEDC-led group seeks to use $90 million to build a ready business park where industry can build factories and create jobs. It focuses on two potential sites: one a former garbage dump and another occupied by dozens of homes. Many residents said they either didn’t want to leave or didn’t believe they would be treated fairly in the relocation.
Board members also mentioned the possibility of adding a third site now during the meeting.
McKinney reiterated concerns about the OEDC partnership, saying it failed to provide the information he requested and did not adequately engage with the community.
Move the goalposts
However, George Achola of Burlington Capital said the board has changed its goals since DED awarded the contract.
“We’re really at an impasse right now,” he said.
“We’re not going to move the goalposts,” McKinney said. “You just gave the ball away.
Achola said he would not continue the argument. “It’s not going to do anything right now.”
Board member Jacob Hoppe said “they seem to be in trouble” without some funds being released.
Finally, Board Vice Chair Davielle Phillips asked board members to submit questions that “outline the rules of the game” that would provide comfort for the eventual vote on the letter of support.
Achola said the team will answer additional questions.
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