A legal battle is unfolding between the City of Omaha and a developer over a long-awaited downtown redevelopment project. Alleging interference by the city, Civic Corner, owned by White Lotus Group, filed a lawsuit on January 1, claiming that the city’s actions have significantly delayed their work on the former Civic Auditorium site.
The lawsuit centers on accusations of delayed approvals, a clerical error, and inadequate communication from the city authorities, which Civic Corner believes have hindered their project. According to the complaint, “The City’s conduct destroyed Civic Corner’s reasonable contractual expectations, materially interfered with Civic Corner’s ability to perform, and violated the implied covenant of good faith and fair dealing inherent in the purchase agreement and its amendments.”
In response, Civic Corner is seeking to prevent the city from reclaiming the approximately seven-acre site located between 17th and 19th streets along Capitol Avenue. Meanwhile, the city is contemplating its own legal measures against the developer, citing unmet contractual obligations.
Delays and Disputes
White Lotus Group, tasked with redeveloping the former Civic Auditorium site, was under pressure to demonstrate substantial progress by last year. Failure to do so would allow the city to repurchase the property, as per the contract terms. The agreement, signed in 2022, required White Lotus to complete at least 50% of the public infrastructure within 18 months of acquiring the site in the fall of 2023.
Deputy City Attorney Jennifer Taylor noted last fall that the developer did not meet this requirement. The city issued a notice of default on September 8, giving White Lotus a 60-day period to fulfill several conditions. This period ended in early November, paving the way for the city to consider reclaiming the property.
A clerical error by the city delayed Civic Corner’s application for tax increment financing in early summer 2025. The city denied the application due to disputed ownership of the property, which Civic Corner argues resulted from the city’s notice of default and intention to repurchase.
In an email statement, the city’s law department refuted Civic Corner’s allegations and indicated potential legal actions against Civic Corner for contract non-compliance. “The City has attempted to negotiate a reasonable resolution to this dispute,” the statement read, “However, Civic Corner’s filing of this lawsuit clearly shows those efforts failed.”
Attempts to reach White Lotus for comment were unsuccessful.
A Mystery Buyer
Long before the lawsuit, White Lotus informed city officials that the buyback option in their agreement hindered the project, complicating financing and vendor negotiations. CEO Arun Agarwal reportedly met with a nonprofit representative interested in developing a youth sports project on the site, although White Lotus was not interested in selling.
Agarwal mentioned in an email to The Reader, “White Lotus Group was never informed of the identity of the nonprofit that expressed an interest in acquiring the site but had met with a real estate agent representing the nonprofit.”
The lawsuit claims that the city engaged in secret discussions with other developers and nonprofits about potential redevelopment, some occurring in early 2025, before Civic Corner’s construction deadline.
In April 2025, an agent linked to a potential nonprofit buyer purportedly confirmed that a client sought to acquire the property, intending to wait for the city to reclaim it from Civic Corner. The city’s law department maintains that the land belongs to the City of Omaha, saying, “To ensure this, the city set several benchmarks for the developer to meet in order to retain its ownership. Regrettably, the developer did not meet these benchmarks despite having been informed several times.”
Plans for the Site
In September, White Lotus unveiled ambitious plans for the site, dubbed The Nest, which aimed to attract Creighton University students through a blend of housing, healthcare, retail, and a downtown grocery store. “Our goal is to create a dynamic environment that complements Creighton’s beautiful campus and enriches the student experience, encouraging more students to stay in Omaha after graduation,” White Lotus stated in a press release.
The site has seen its share of failed initiatives. Built in 1954, the Civic Auditorium was a central venue for various events until its demolition in 2016. Previous redevelopment attempts have stalled, including a Tetrad Property Group project and a Kansas City developer’s condominium plans.
Learning from past experiences, the city included a buyback clause in its agreement when White Lotus acquired the site for approximately $1.4 million, aiming to avoid leaving it in a state of limbo.
