Omaha's City Council has pushed back a vote that would label the neighborhood around the historic Center Mall as blighted, after the U.S. Department of Veterans Affairs signaled interest in acquiring the 42nd and Center Streets property for itself. The delay, now set for December 8, 2026, has stalled a redevelopment plan that would have replaced the aging mall with roughly 500 apartment units and office space.
The pause traces back to Lockwood Development's June mixed-use proposal for the site, according to KIOS FM. That plan depends on Tax Increment Financing, which requires the city to first declare the surrounding area blighted and substandard. The Omaha Planning Board voted 5-0 in June to recommend that designation, a required step before the City Council could grant TIF eligibility, as reported by KETV.
Everything shifted once the VA entered the picture. Omaha City Council President Danny Begley said the city itself requested the delay so the VA could evaluate acquiring the property, according to the Lincoln Journal Star. Per WOWT, the council formally delayed a public hearing and vote on CRA approval for the mall's redevelopment, then pushed further discussion out to December 8.
Why the VA Wants a Mall Site
The Omaha VA Medical Center is located at 4101 Woolworth Avenue, according to the U.S. Department of Veterans Affairs. The VA has expressed interest in acquiring the mall property.
That federal leverage has introduced real uncertainty for Lockwood Development. WOWT reports that Jack Suter, an attorney for Lockwood Development, asked the VA not to interfere with the ongoing redevelopment process during the delay. If the CRA designation eventually passes, Lockwood could file a TIF application and enter into a redevelopment agreement with the city, per the same WOWT report.
Neighbors Push Back on the Blight Label
Not everyone wants the deal to go through as planned. Mary Packett, an area resident, told WOWT that the VA would not need the area blighted at all, since the agency is tax-exempt. Packett said neighborhood residents oppose having their community labeled as blighted, and she personally opposes any use of TIF, whether by a private developer or the VA itself.
Packett said TIF use has become out of control and told WOWT she plans to ask the state legislature to change how the financing tool is used. Her objection echoes a statutory requirement built into Nebraska's TIF law: developers must satisfy a mandatory but-for test showing a project would not be feasible without public subsidy, according to the City of North Platte. Under Nebraska's Community Development Law, TIF lets municipalities capture property tax increases for up to 15 years.
A Mall Built for a Different Era
Beyond the legal fight, the stakes are immediate for the people who currently occupy the mall. Center Mall has more than 100 tenants.
Center Mall opened in 1955.
Lockwood Development previously worked on the Crossroads Mall redevelopment, a project neighbors have invoked repeatedly during public discussions over the Center Mall's fate. Whether the VA ultimately moves to acquire the 42nd and Center site, or steps aside and lets the apartment plan proceed, now hinges on what happens when the City Council revisits the CRA designation on December 8.
