The deal that almost derailed Bellevue's entire entertainment district just got dramatically cheaper—and the payment doesn't come due until late 2027. At the January 20, 2026 City Council meeting, Economic and Community Development Director Harrison Johnson announced that the city successfully negotiated Nebraska Department of Transportation's 10th Street vacation and relocation agreement down from $790,000 to $400,000, a savings of nearly $390,000. Even better for Bellevue's cash flow, NDOT agreed to defer the payment until December 2027. Johnson described the 10th Street issue as "the single biggest impediment" to keeping the entertainment district timeline on track.
Original ask: NDOT wanted $790,000 for 10th Street vacation/relocation. Final deal: $400,000 with payment deferred to December 2027. Net savings: $390,000. Why it mattered: 10th Street was called "the single biggest impediment" to entertainment district timeline. Context: The street vacation and realignment was necessary for Highway 34/75 interchange improvements that provide access to the water park and entertainment district. Key players: Harrison Johnson (City of Bellevue), Nebraska Department of Transportation, Mayor Rusty Hike.
If you've been following Bellevue's development boom or considering custom home construction in the Omaha metro, you've probably seen the massive highway interchange reconstruction happening at Highways 34 and 75. That interchange is the primary access point for Bellevue's planned 575-acre entertainment district, anchored by the $60 million Bellevue Bay indoor water park now under construction. But the interchange improvements required vacating (officially closing) and relocating 10th Street, which runs through the area.
When a city vacates a public street, any entities with utilities, infrastructure, or rights-of-way in that corridor need to be made whole. Nebraska Department of Transportation had facilities and infrastructure along 10th Street that would need to be relocated as part of the interchange project. NDOT's initial position was that Bellevue should pay $790,000 to cover those relocation costs. For a city already committing $60 million to the water park and tens of millions more to broader district infrastructure, that $790,000 felt like an unnecessary burden—especially since the highway improvements would ultimately benefit state traffic flow, not just local development.
The details of Johnson's negotiation weren't fully spelled out in the public meeting, but the result speaks volumes. Getting NDOT to cut the price nearly in half—from $790K to $400K—required demonstrating that the city's investment in the entertainment district generates value for the state, not just Bellevue. The Good Life District designation Bellevue secured means increased sales tax revenue, tourism dollars, and job creation that ripple through the region and state. NDOT likely recognized that playing hardball on the 10th Street cost could jeopardize a project that ultimately benefits Nebraska's economy.
Equally important to the cost reduction is the timing. By pushing the $400,000 payment deadline to December 2027, Bellevue gains nearly two years of financial flexibility. The water park is scheduled to open mid-2027, which means it should be generating revenue by the time that NDOT bill comes due. Instead of paying $790,000 upfront out of municipal reserves or bond proceeds, Bellevue can potentially cover the $400,000 bill with cash flow from the operating water park. That's smart financial management for a major capital project.
Johnson's characterization of the 10th Street issue as the entertainment district's "single biggest impediment" underscores how infrastructure conflicts can delay or derail development projects—even when the main construction is proceeding smoothly. Homeowners planning home additions or basement finishing projects face similar coordination challenges on a smaller scale: utility relocations, easement negotiations, permit dependencies. The difference is one of zeros—residential projects measure these issues in hundreds or low thousands of dollars, not hundreds of thousands.
If NDOT had held firm at $790,000 and demanded immediate payment, Bellevue would have faced an uncomfortable choice: pull that money from other district infrastructure budgets, delay portions of the project, or potentially issue additional debt. None of those options are attractive. Worse, if negotiations had completely broken down, the 10th Street vacation might have been postponed indefinitely, creating access problems for the water park and surrounding development. The interchange improvements are critical for handling the projected traffic from a facility that expects 2,000+ daily visitors once operational.
Bellevue's negotiation success offers a case study for anyone involved in major construction projects across Omaha, Papillion, Elkhorn, and surrounding communities. First, never accept the first number from a government agency without negotiation. Second, demonstrate how your project creates shared value—NDOT benefits from the increased traffic and economic activity the entertainment district generates. Third, consider timing and cash flow when structuring agreements. Bellevue's deferred payment gives them runway to generate revenue before the bill comes due.
While homeowners aren't negotiating with NDOT, the principle applies at every scale. Choosing the right contractor means working with someone who understands how to coordinate utilities, permits, inspections, and municipal requirements without letting any single issue become a project-stopping impediment. The design-build approach that companies like Davis Contracting use creates a single point of accountability for managing these moving parts, similar to how Harrison Johnson served as Bellevue's point person for resolving the NDOT issue.
With the 10th Street impediment resolved, the entertainment district development can proceed on schedule. The water park's foundation work is wrapping up by end of January 2026, the interchange improvements can move forward, and surrounding parcels can begin attracting developers for hotels, retail, and restaurants. Mayor Rusty Hike has consistently stated that the district is expected to add over $1 billion in new valuation to Bellevue's tax base. Removing a $790,000 obstacle and replacing it with a $400,000 deferred payment keeps that billion-dollar vision on track.
Bellevue is Nebraska's third-largest city and sits in Sarpy County, the state's fastest-growing county. The entertainment district strategy represents a deliberate shift from being a bedroom community dependent on Offutt Air Force Base to becoming a regional destination with its own economic engine. The potential quarter horse racetrack and casino discussed at the same January meeting would add another revenue stream. The residential construction market in Bellevue is watching these developments closely—neighborhoods near the entertainment district are likely to see property value impacts as the area transitions from undeveloped land to a functioning tourism and entertainment hub.
The council meeting didn't specify exactly how the $390,000 savings would be reallocated, but Harrison Johnson's presentation suggested it would remain within the entertainment district budget for infrastructure improvements. That could mean upgraded roadways, enhanced landscaping, additional utilities capacity, or other amenities that make the district more attractive to private developers. Every dollar saved on negotiated deals like the NDOT agreement is a dollar that can be invested in making the district more competitive as a destination.
The NDOT negotiation echoes similar infrastructure coordination challenges in other major Omaha metro developments. Elkhorn's rapid growth, Papillion's downtown redevelopment, and various new residential subdivisions all require coordinating with utility districts, DOT, counties, and municipalities. The difference with Bellevue's entertainment district is the scale and public visibility—most infrastructure negotiations happen behind closed doors, but Bellevue's City Council is conducting much of this in public meetings where residents can see how these deals get made.
With the 10th Street issue resolved, the next major milestone is the water park's vertical construction phase starting in spring 2026. The interchange improvements can now proceed without the uncertainty of an unresolved street vacation. Developers considering hotel, retail, and restaurant projects in the district have one less risk factor to worry about. And Bellevue's negotiating team—led by Harrison Johnson—has demonstrated they can find creative solutions to financial and logistical challenges. For homeowners exploring contractors in the Omaha area, that same problem-solving approach is what separates projects that stay on budget and schedule from those that spiral into cost overruns and delays.
