Lincoln council approves sale of 8.5 acre-feet of Lakeview Farms stormwater credits to Christina Companies

The Lincoln City Council on May 14 approved an agreement authorizing the sale of 8.5 acre-feet of volumetric stormwater credits from the Lakeview retention basin to Christina Companies (Athens LLC), a transaction staff said would raise roughly $293,000 up front plus a one-time perpetual maintenance payment of about $143,000.

City staff told the council the Lakeview retention basin was created as part of a long-term strategy to mitigate downstream flooding obligations and to provide regional storage capacity as the city grows. Staff estimated the city's foreseeable need at about 2,800 acre-feet; the 8.5 acre-feet being sold represents approximately 0.3% of that capacity, staff said. Officials said phase 1 of Lakeview Farms is sufficiently funded, but additional revenue can help cover potential change orders for the multi-million-dollar project.

Marcus LaDuca, who represented Christina Companies, described the buyer's proposed project (hobby condos and RV/boat storage) and argued the proposed uses would not compete with Lincoln's commercial centers. "We would ask tonight for your approval of the agreement as presented," LaDuca told the council.

Several council members expressed concern about setting a precedent for selling city-created infrastructure capacity outside city limits. Staff said the transaction is structured as a fee-for-service rather than a sale of surplus land and does not, in staff's view, trigger the state Surplus Land Act. Council members pressed for clear policy language governing similar requests in the future; staff said a policy discussion will be scheduled.

The council moved and seconded adoption of Resolution 2024-493 authorizing the agreement; the motion passed unanimously, with Council members Brown, Andreaata, Joyner, Lawrenson/Lauritzen and Mayor Carlskin voting yes.

During debate a council member said there had been "things" in past dealings around the project he found troubling; the applicant responded that the city had "dealt with [them] fairly" and that the agreement had been worked on for several years. Council members said the proposal was a small request compared with the basin's total capacity and that a written policy to guide future requests is appropriate. The council directed staff to return with a policy discussion at a future meeting.

The agreement authorizes the city manager to finalize the sale and payment terms; staff said the up-front funds would be available to the drainage fund and could be applied to phase 2 costs if needed.