City putting together deal to entice Omaha developer to put convenience store, five retailers at 54th and Broadway

QUINCY — An Omaha, Neb., developer hopes to bring a convenience store and five national retail stores to the northeast corner of 54^th and Broadway, with construction possibly starting this summer.

A sales tax rebate for the development was a topic of discussion during Monday night’s Finance Committee meeting, held one hour before the Quincy City Council meeting. 

A sign on the property indicates Tim Cherre with the Sansone Group, a national commercial real estate firm headquartered in St. Louis with eight offices across the U.S., is the broker for the 7.93-acre parcel. Adams County tax records show the property is owned by the Edgar W. Campbell Trust of Greenville. Campbell, who lived on the property at 504 N. 54^th, died in 2010 at age 86. He was a bread route salesman, retiring from Purity Baking Co. in 1986.

Mayor Mike Troup said he’s been speaking with developer Jim Otis, president of the Otis Company in Omaha, for the past three months about the property, just south of Sam’s Club. Troup said Otis, who made a presentation to the Finance Committee on Monday, has an option to buy the property.

“He’s done the engineering and testing, but (the property) needs a lot of work,” Troup said after Monday’s City Council meeting. “We’ve talked to other developers as well, but he’s ready to go. He’s got national retailers willing to come, but he’s got to have the cost at a reasonable number. Without an incentive from the city, it would make it extremely challenging for him.” 

Troup says Otis is asking for an incentive on the sales tax collected. Troup said he believes the deal will be similar to how the city structured the GMX deal on the former Kmart property on the northeast corner of 36^thand Broadway that now is home to Target.

“We would not put any money upfront,” Troup said. “He won’t build it unless the city says, ‘Here’s the incentive that we agreed to.’ He then will build it, make the improvements and get the retailers. Under that, (the city) would have 10 years maximum and, let’s just say, they would have a million-dollar incentive over that time. If they don’t get a retailer, they don’t get the sales to hit a million dollars in sales tax.”

Troup said the city proposes to split the sales tax 50/50 with Otis until each side receives $1 million.

“The city will still have a net gain each step of the way, and the property tax value would go up as well,” he said. “All the taxing bodies would get an increase as (Otis) developed that property, and the city will share in our collection of the sales tax up to the maximum amount.”

Otis has agreed to bring in retailers that are not within 20 miles of Quincy, and he told Troup he believes each will bring in approximately $19 million to $20 million in annual sales. Troup said Otis did not indicate which convenience store franchise he proposes to bring to Quincy.

“I know some people will ask about a Buc-ee’s, but there’s seven acres for five retailers, so I don’t think it’s large enough to bring a Buc-ee’s,” Troup said.  

Troup said that despite nearby Sam’s Club and Walmart fueling stations, Otis found the property appealing for people coming off the Interstate 172 bypass.

“He just thinks coming into Quincy off that bypass would be helpful,” the mayor said. “As our airport traffic increases and hopefully rental cars (do too), that would be a closer spot to fuel before you drop your car off.”

The Finance Committee directed City Planner Chuck Bevelheimer to prepare a draft for the tax rebate incentive. After that, Troup hopes to get approval from the City Council and present the agreement to Otis for his signature.

“He would have something like a year and a half to build, and if he meets that, he gets these incentives,” Troup said. “I would classify him as one of the top developers that we’ve seen. He’s done comparable projects throughout the country.”