OMAHA – Backhoes excavating a future apartment site in Omaha’s urban core discovered some unexpected remnants of an old dairy factory that once delivered milk to people’s doorsteps via horse-drawn wagons.
Among the surprises were mysterious tunnels, intact ice cream bottle lids that spilled when a vault was struck, and the entire foundation of a brick building.
“We knew there would be debris, but not to this extent,” said Tom McLeay of Clarity Real Estate Companies, a co-developer of the 194-unit Oxworth apartment complex, which will cover an entire city block. “It is almost like we are amateur archeologists, discovering this century-old dairy foundation that has not seen the light of day for 40 years.”
McLeay spoke Thursday, as construction work was halted for a ceremonial groundbreaking, about the challenges and anticipated benefits of developing the market-rate housing and garage facility at 27th and Leavenworth Streets, west of Nebraska’s largest city.
$43 million project.
The $43 million project, which is scheduled to open in 2027, is supported by $6.5 million in public tax-increment financing, a statewide tool designed to stimulate development and job creation in blighted areas.
McLeay believes TIF, which is controversial because it uses increased property tax revenue from the new development to pay for eligible redevelopment costs, is critical to projects like the Oxworth.
Without the incentive to defray expenses, he and codeveloper Assurity Life Insurance of Lincoln said they would not pursue such a venture in a congested, infill area where construction risks are higher than in suburban green fields.
“You do not deal with this if you go out to a cornfield and put an apartment building on top of it,” said McLeay, noting that his crew had to dig a huge hole about 40 feet deep to remove what was left of the Alamito Dairy, which was demolished in the 1980s.
A TIF-assisted project must meet eligibility requirements, which include the fact that it would not be possible “but for” the aid. The tool has both strong supporters and detractors, with critics claiming that some city governments have been overly generous in approving TIFs.
The state auditor has warned lawmakers about the risks of the rapidly growing incentive.
In the streetcar zone.
The Oxworth is named after both the former dairy factory (an ox belongs to the same genus as cows) and the street on which it is located.
When finished, the 1.45-acre site, which had been mostly vacant for decades, will have apartments ranging from studio to two-bedroom units with rents ranging from $1,000 to $2,000 per month.
The complex will have several amenities, including a courtyard with a firepit and picnic area. A clubhouse with a gym and community rooms will also be built on the site, repurposing a 125-year-old former cold storage building abandoned by the Alamito Dairy. Most recently, that structure served as an upholstery shop.
There will be approximately 150 parking stalls available, with all but a dozen of them inside.
Area has ‘evolved’.
According to the Omaha World-Herald, the Alamito business relocated to a new three-story concrete building at 27th and Leavenworth in 1914 and closed in 1977. It was the city’s first modern milk producer-distributor, operating from 1902 to 1977 and reportedly named after a trotting stallion.
The Omaha City Council has approved a financing mechanism for the Oxworth project. Because it is in a so-called “zone of influence” near the upcoming Omaha streetcar route, city ordinance requires that 10% of the project’s TIF proceeds go toward streetcar construction.
McLeay stated that his company has owned the property for about a decade but believes now is the time to build, especially given the streetcar’s projected start in 2027 along nearby corridors from downtown to midtown.
“The neighborhood has evolved so nicely,” McLeay said, adding that the free streetcar and the Leavenworth Street bus line will provide new residents and workers with easy access to downtown and midtown events, restaurants, and attractions.
He envisions Oxworth residents as bus passengers, streetcar riders, cyclists, scooter users, and drivers.
McLeay believes that continued redevelopment and transportation options in the urban core can help the city stop “brain drain” and retain or attract talent to Omaha, including his own two daughters who left for college or a job.