Omaha City Council Meeting - August 25, 2026

The Omaha City Council met on August 25, 2026, to consider a series of budget amendments for the 2027 fiscal year, approve the final budget, and act on several liquor license applications and redevelopment plans. The most contentious items included a proposed property tax levy reduction amendment (Item 14), a debate over shifting $40,000 from One Omaha to the Food Bank of the Heartland (Item 13), and approval of an Enhanced Employment Area (EEA) incentive for a new Drury Plaza Hotel (Item 22). All votes were taken after public hearings.

Consent Calendar

• Items 23–25 (public hearings held August 18, 2026) were approved en bloc, with Item 24 passed 6–0 (Councilmember Festerson abstaining).
• Items 26–36 (public hearings on August 25, 2026) were approved 7–0.
• Items 37–44 (ordinances) were each passed 7–0 after separate public hearings.

Public Comments & Testimony

• Item 14 (Property Tax Levy Decrease): Mayor Ewing spoke in opposition, arguing the $4.4 million reduction would risk funding for nine firefighter positions, police hiring commitments, and a $5 million park matching grant. Several residents, including Larry Store and Alan Seiber, expressed support for the levy cut, while Cheryl Weston criticized the council for interrupting the mayor. Councilmember Harding and Melton defended the amendment as modest property tax relief.
• Item 13 (One Omaha vs. Food Bank): Numerous residents testified against the amendment to redirect $40,000 from One Omaha to the Food Bank of the Heartland. Speakers including Kimara Snipes (One Omaha), Leo Lewis, Cheryl Weston, and others argued that both organizations should be funded and that the move pitted two important causes against each other. Proponents of the transfer, including Deshaun Lavelle and Councilmember Goodwin, emphasized the food bank's purchasing power (120,000–160,000 meals per $40,000) and the urgency of food insecurity. The public hearing lasted over an hour.
• Item 20 (879 Bar Expansion): Multiple opponents, including the Downtown Improvement District and police Captain Paul Hanson, cited 17 tavern reports since the bar opened in December 2025 (assaults, disorderly conduct, overcrowding, open containers). The applicant’s attorney argued many incidents were not the bar’s fault. Councilmembers expressed disappointment over ongoing safety issues.
• Item 22 (Drury Plaza Hotel EEA): Attorney Brent Bellar argued the city’s “hotel policy” was never formally adopted by the council, and that Drury meets all statutory EEA criteria. Supporters included Downtown Improvement District executive Holly Barrett and resident Cheryl Weston. The planning department and planning board had recommended denial based on the policy. CVB representative Jasmine Goodwin and city attorney Jennifer Taylor clarified the policy’s advisory nature.

Discussion Items

• Item 14 (Levy Reduction): Councilmembers Harding, Melton, and Roe proposed cutting the property tax levy by 0.75 cents (saving median homeowner $19/year), funded by higher-than-expected sales tax revenue. The mayor warned of cuts to public safety and parks. Councilmember Festerson noted past levy reductions were paired with corresponding spending cuts; this amendment lacked them. The motion failed 3–4.
• Item 13 (One Omaha Defunding): Councilmember Goodwin moved to transfer $40,000 from One Omaha to the Food Bank of the Heartland. She argued the food bank can leverage the money for 120,000+ meals, while One Omaha’s budget is smaller but supports neighborhood capacity. Opponents called the move “egregious” and “pitting organizations against each other.” The motion passed 7–0.
• Item 20 (879 Bar Expansion): The council denied the application to expand the bar’s footprint and add an outdoor area, citing 17 police reports, unpermitted work, and ongoing disturbances. The applicant was on probation with the Nebraska Liquor Control Commission. Motion to deny passed 7–0.
• Item 22 (Drury Plaza Hotel EEA): The council debated whether the city’s downtown hotel policy (not formally adopted) should block an EEA for Drury. Drury committed in writing to build an upper-upscale hotel with a pool, fitness center, restaurant, bar, and meeting space, and to hire a convention liaison. After extensive questioning, the council approved the redevelopment plan 7–0, with the understanding that a detailed redevelopment agreement would follow.

Key Outcomes

• Item 14: Amendment to decrease general fund property tax levy by 0.75 cents FAILED (3–4).
• Item 6 (Omaha Parks Foundation & Curling Club): Passed 7–0.
• Item 7 (Heartland Hope Mission $50,000): Passed 7–0.
• Item 8 (Nebraska State Historical Society Foundation, Youth Emergency Services, Omaha Irish Cultural Center): Passed 7–0.
• Item 9 (Workforce Development, Park Maintenance, Sign Maintenance): Passed 7–0.
• Item 10 (Parks, North Omaha Music and Arts, Native Omaha Days, etc.): Passed 7–0.
• Item 11 (Nebraska Lawyers Foundation & Ramble Ridge Pond Study): Passed 7–0.
• Item 12 (Madonna Rehabilitation Hospital & Wolfpack Sports Foundation): Passed 7–0.
• Item 13 (Food Bank of the Heartland $40,000, defunding One Omaha): Passed 7–0.
• Item 15 (2027 Budget as amended): Passed 7–0.
• Item 16 (2027-2032 Capital Improvement Program): Passed 7–0.
• Item 17 (C liquor license Kid Lobby): Passed 7–0.
• Item 18 (C liquor license Frozen Vines): Passed 7–0.
• Item 19 (A liquor license Crystal Jade): Passed 7–0.
• Item 20 (879 Bar expansion): Denied 7–0.
• Item 21 (2501 Center TIF Affordable Housing): Passed 7–0.
• Item 22 (Drury Plaza Hotel EEA Redevelopment Plan): Passed 7–0.
• Item 24 (consent agenda): Passed 6–0 (Festerson abstained).
• Item 77 (public hearing rescheduled): Passed 7–0.
• Meeting adjourned at 5:48 PM.