Auburn pursues retail investment in Highway 75 corridor
Palmer House would be demolished for new retailer
By News Channel NebraskaAUBURN – The Auburn City Council opened the way Wednesday for tax assistance for construction of a new retail business and demolish the Palmer House Motel property off of Highway 75 and 19th Street.
City officials are working with a real estate development company representing a national retail chain, but did not disclose Wednesday who would be making the $2 million investment in the property.
Councilwoman Katy Billings said the Community Redevelopment Authority will meet Thursday to approve $258,000 in tax increment financing for the project.
The city has most recent used $350,000 of TIF for the west water line and $54,000 for Central Avenue apartments.
The J Street project will be the largest retail investment in Auburn, since the closing of ShopKo in 2019. Billings said it will not be a replacement of Shopko, which she described a retail model that appears to be outdated, but said the new retailer is a welcome addition.
The CRA expects construction starting in the spring of 2022 and the store to be open by Nov. 1.
The project was originally within an area the city identifies as Core Area Redevelopment Plan. The plan calls for commercial uses with convenient parking near transportation corridors, especially Highway 75.
CBC Real Estate Group says a 10,500-square-foot retail shopping building is proposed on a parcel occupied by the Palmer House Motel and a storage locker facility. Public access will be at Highway 75 and 20th Street.
The redevelopment plan says the Palmer House intends to sell the parcel. A house near the location is used by the motel manager and is not involuntarily involved in the development.
An independent cost-benefit analysis says site work and demolition costs will be about $459,000 and construction costs about $1.5 million.
Dave Davis of the Auburn Planning Commission said the amendment meets the scope of the redevelopment plan.
Mike Belew, a CBC representative, told the planning commission that the former ShopKo location does not fit its requirements.
The retailer has built 65 similar buildings in the Midwest and expects to employ 20 people during most of the year.
At the planning commission meeting, chairman Dave Davis asked if the project would impact any other businesses in town. Commission minutes say Belew said the retailer will fill a “niche” role and has been successful in towns smaller than Auburn.