Thursday, Dec. 17, 2009

UNL now owner of State Fair Park

By Leslie Reed, WORLD-HERALD BUREAU, Published Thursday December 17, 2009

LINCOLN — The University of Nebraska-Lincoln will take possession of its newest real estate acquisition — State Fair Park — today. The 251-acre parcel had been owned by state government and had been home to the Nebraska State Fair since 1901. Carlos Castillo, director of the Nebraska Department of Administrative Services, signed papers Wednesday clearing the way for the university to close on the historic property. UNL officials plan to build a public-private research park, called the Innovation Campus, on the site. …

The next step will be raising about $46 million to begin work on the campus. About $21 million is needed to build the first phase of infrastructure improvements. Up to $25 million is needed to renovate the 4-H Building into a conference center that will serve as a campus centerpiece and meeting ground. “That’s a challenge,” said Chancellor Perlman in an appearance this week before the Lincoln Chamber of Commerce. “I don’t have it (the financing) at the present time.”

In an interview later, Perlman said consultants are studying possible financing mechanisms to get the development under way. They include tax-increment financing, which earmarks new property taxes generated by the development to pay for some construction costs. Another option is industrial development bonds, which are government bonds issued to finance private industrial projects. A third possibility is finding a private developer to finance the project in return for a share of its future revenue. “I don’t expect anything to happen soon,” Perlman said. “We’re going to work hard to get it done as quickly as we can. Until you find the right financing package that’s workable, you can’t get started.”

During his talk, Perlman emphasized that it will be two decades or more before the Innovation Campus is fully built. He hopes the first phases of construction will be completed within five years: the 4-H Building renovation; a new USDA Agricultural Research Service building; and possibly a small hotel and a building that can house smaller businesses. He said he expected demolition and some site preparation activities to begin within one year.

One building now slated for demolition is the 1913 Industrial Arts Building, which is in a prime development spot on the campus. Heritage Nebraska, a historic preservation group, is working to save the building. Perlman noted that there are only about six months for someone to put up the $25 million needed to save that building. “It’s in the most difficult place to hold and preserve an old building until someone who wants to develop it comes forward,” he said. “In six months, if no one has come forward, it ought to come down.”

In response to a question, Perlman offered assurances that private tenants will pay their share of property taxes. Perlman said the Innovation Campus will be open only to tenants that have an ongoing relationship with the University of Nebraska, whether through joint research, joint teaching or student internships. The campus will focus on Nebraska’s specialty areas of research, such as biotechnology, life sciences, water resources, food and nutrition.
“It’s a theme of food, fuel and water,” he said.

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