Nebraska Board Approves Tax Incentives for Omaha Soccer Stadium, Lincoln Volleyball Complex; Rejects Nine Other Proposals
Why It Matters
Nebraska’s use of a state sales tax incentive program to fund sports and recreation infrastructure now has two approved projects — but the decision leaves dozens of applicants across the state without a path forward, raising questions about the criteria used to select winners under the Sports Arena Facility Financing Assistance Act.
The outcome also marks a notable shift for Gov. Jim Pillen, who had resisted approving the incentive for months before casting votes in favor of the two urban projects Thursday.
What Happened
The SAFFAA board, chaired by Pillen, convened Thursday in a conference room at the Governor’s Office and spent less than 30 minutes deciding the fate of 11 pending applications. The meeting included no public comment period.
Two projects received approval: a $140 million open-air soccer stadium in downtown Omaha, developed in partnership between the City of Omaha and Union Omaha professional soccer franchise, and a $17 million youth volleyball complex in Lincoln, a partnership between the City of Lincoln and nonprofit Nebraska for Volleyball (N4VB).
Nine other proposals — from communities ranging from rural Valentine to suburban La Vista — were rejected. Several had been waiting for a board decision for nearly 18 months.
By the Numbers
The Omaha soccer stadium is projected as a 6,500-seat open-air facility surrounded by a privately developed mixed-use district featuring approximately 450 apartments and 40,000 square feet of retail and dining space. The combined investment in the stadium and surrounding district is anticipated to reach $330 million across 25 acres of currently vacant land.
The state’s tax incentive for the Omaha project is capped at $25 million over 20 years. Supporters project that new sales tax revenues tied to the stadium and adjacent district will generate an additional $27 million over that same period. The team’s ownership group is expected to contribute roughly $23 million.
The Lincoln volleyball complex is designed to include a minimum of eight indoor courts and capacity for up to 12, with projections of more than 418,000 visitors in its first year of operation. Lincoln voter approval of bond financing is still required before the project moves forward.
Both approved projects passed the board on 3-1 votes. State Treasurer Joey Spellerberg, also a board member, voted in favor only of the Omaha stadium.
How the Incentive Works
For larger cities, the turnback tax returns up to 70% of new state sales tax revenue generated within 600 yards of an approved facility toward repayment of construction bonds. In smaller municipalities, the mechanism allows 25% of all state sales taxes collected in the community to be redirected for five years. The “new” revenue qualifier limits the turnback to taxes generated by economic activity traceable to the project itself.
Pillen said he supported the two approved projects because they did not depend too heavily on state assistance and represented sound public investments. He also cited concerns about whether the incentive would give some applicants an unfair competitive advantage over existing private businesses.
Rejection Draws Criticism
Rejected applicants pushed back on the board’s rationale. Tony Carrow, co-founder and president of Nebraska Elite Volleyball, whose $63 million proposed Douglas County complex was turned down on a 0-4 vote, called the outcome baffling. “It just doesn’t make sense,” Carrow said. “It sounds like politics to me.”
Jeff Weak, who helped draft the underlying state law, said he assisted with the application for a proposed $28.5 million Gretna cheer and dance athletics complex, which was also rejected. He questioned whether any consistent standard guided the board’s decisions. “There can’t have been a criteria they actually used, except the political clout that somebody had to call the governor,” Weak said. His group is exploring alternative financing options.
Zoom Out
Nebraska’s targeted sports facility incentive reflects a broader national trend of states using tax increment or turnback mechanisms to attract professional sports franchises and youth athletics tourism. As millionaire taxes gain traction in states facing budget pressure, the debate over whether public subsidies for sports infrastructure represent prudent investment or policy favoritism has intensified in legislatures across the country.
Pillen, who recently completed a trade mission to London promoting Nebraska beef and ethanol, has framed economic development as a central priority of his administration — though Thursday’s narrow approvals suggest the governor is applying a selective standard to state-backed development incentives.
What’s Next
Union Omaha General Manager Alexis Boulos said the organization intends to break ground on the stadium this fall, with the facility expected to serve both the existing men’s professional team and a new women’s professional team. Lincoln’s volleyball complex still requires approval from city voters before bond financing can proceed. Rejected applicants have not yet indicated whether they plan to reapply or pursue alternative funding strategies.