Lincoln voters on Nov. 3 will determine the fate of a $17 million volleyball facility that supporters say would boost the city’s status as a youth sport destination. The proposed N4VB (Nebraska for Volleyball) complex is expected to generate about $22 million in total annual impact by its third year, according to the group behind the proposal.
Access and Economics
The facility is marketed as an economic development project that would also serve underrepresented youth through free or reduced-cost programming. N4VB was founded by former Husker athlete Maggie Griffin, who says a goal is to ensure broad access. Club teams are to lease space to support operational revenue, while time and resources are to be reserved for public clinics, camps and outreach programs that are low or no-cost to area youth.
The proposed site at 30th Street and Folkways Boulevard is designed to open doors for the next generation of Nebraska talent without raising local taxes. Financing the project through a specific state mechanism allows the city to leverage future economic growth rather than immediate taxpayer burden.
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Ballot Measure and Funding
Lincoln Mayor Leirion Gaylor Baird, nonprofit N4VB and others on Tuesday announced the timing of the general election ballot measure and offered assurances that an affirmative vote would not raise taxes. The vote is necessary for the group to access a state sales tax incentive, referred to as a “turnback tax,” to help finance construction of the privately owned complex.
She said the city would approve bond terms after a green light from city voters at a special election or statewide primary or general election. An earlier hurdle was cleared when the state Sports Arena Facility Finance Assistance Board approved the use of the incentive for the eight-court facility expected to host regional tournaments and year-round activities. It was one of two urban Nebraska projects in May to gain required support of that board after months-long resistance by Gov. Jim Pillen.
For larger cities such as Omaha and Lincoln, the financing incentive generally works like this: Up to 70% of new state sales taxes generated within 600 yards of the sports facility goes to help pay off bonds for construction. The “new” tax revenue generated refers to ticket sales or retailers that sprout in the designated area for a certain time after the project is announced. The turnback tax incentive is expected to finance up to 75% of construction costs of the N4VB complex, with private funding covering the rest of the project that could grow to 12 courts.
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Pillen, an SAFFA board member, ultimately voted for the N4VB project application, submitted in partnership with the City of Lincoln, as well as a $140 million downtown Omaha soccer stadium that is a partnership of the City of Omaha and Union Omaha professional soccer franchise. The state board at the time rejected nine other project applications from across the state.
The Omaha soccer stadium project differs from the Lincoln volleyball project in that it is to be owned by the city, not privately owned. Deputy City Attorney Jennifer Taylor said Omaha’s 6,500-seat soccer facility, which is to anchor a downtown mixed-use campus and open in 2028, does not require local voter approval. She said the city of Omaha plans to use revenue bonds to fund a portion of the cost of the soccer stadium and turnback tax revenue will be pledged to pay the debt service on those bonds, when issued.