Subdivision development in Nebraska files for bankruptcy
Apr. 20, 2017
PAPILLION, Neb. (AP) — A subdivision surrounding the stadium that hosts Omaha's minor league baseball games is filing for bankruptcy after amassing more than $12.8 million in debt.
Sanitary and Improvement District No. 290 filed for Chapter 9 bankruptcy April 14 after debt built up from constructing roads, sewers and other infrastructure for the land surrounding Papillion's Werner Park.
Chapter 9 is the portion of the federal bankruptcy code allowing government entities, such as the suburb development, to seek reorganization of their finances under court supervision, the Omaha World-Herald (http://bit.ly/2o5NDre ) reported.
Martie Cordaro, president of the Omaha Storm Chasers, said the bankruptcy won't affect the baseball team's success and high attendance rate at Werner Park.
"There's no major concern," Cordaro said.
County and city officials also said they are not worried because the financial impact of the bankruptcy will fall on the subdivision's investors. But officials are noticing the downward spiral of the subdivision's impact on their grand vision to turn the ballpark's surrounding land into an entertainment district that would feature a movie theater, bars, restaurants and shops for fans.
Papillion City Administrator Dan Hoins said the city still plans to eventually move forward with the project.
Since 2010, 15 Sanitary and Improvement Districts in Nebraska have filed for bankruptcy. Berkshire Hathaway President Vince Leisey said the bankruptcies in the past five years were due to the district's locations.
District board members didn't respond to phone calls from the newspaper as of Wednesday.
Information from: Omaha World-Herald, http://www.omaha.com