Transforming Beatrice’s Paddock

Strategic Investment Moving Forward for Gage County, NE, Housing, Business Space, and Community Growth

The redevelopment of the historic Paddock Building in downtown Beatrice represents a cornerstone project for Gage County and a clear example of Gage Area Growth Enterprise’s (NGage) mission to address the barriers that limit business attraction and workforce development.

Advancing Economic and Workforce Priorities

NGage’s work centers on helping entrepreneurs, supporting business growth, and resolving key challenges that impact the local economy. One of the most pressing needs identified in recent years has been the shortage of viable housing and the lack of flexible commercial space for entrepreneurs and small businesses.

The Paddock Redevelopment Project directly addresses these needs through a creative partnership between numerous regional stakeholders, including NGage, Main Street Beatrice and Hoppe Development. Rather than approaching the Paddock as a traditional commercial venture, the partners chose to redevelop it as a mixed-use anchor for downtown Beatrice, designed to provide both modern housing and collaborative business space.

Honoring History While Investing in the Future

Located at 6th and Court Street, the five-story Paddock Building was originally constructed in 1924 as the Paddock Hotel. For many years, it served the community as the Kensington Assisted Living Facility before closing in 2021, largely due to challenges stemming from the COVID-19 pandemic.

Hoppe Development, which specializes in affordable housing projects, was approached about converting the vacant building into a facility that could meet Beatrice’s growing demand for workforce housing. Working closely with NGage and the City of Beatrice, the development team created a concept revitalizing the building’s historic presence while meeting modern economic needs.

Project Details and Design

The Paddock Redevelopment Project includes:

• 36 affordable rental apartments supported through the Rural Workforce Housing program
• 8,100 square feet of commercial space on the first floor
• Five stories of mixed-use development, with commercial areas on the first and part of the second floors, and residential units on the upper levels

The first floor will also include NGage’s new office and a co-working and business incubator space designed to serve entrepreneurs, startups, and remote workers. This addition will support business development, networking, and professional collaboration within Gage County.

Collaborative Funding Effort

The project, estimated to cost approximately $10 million, leverages a range of funding sources, including Historic Tax Credits, LB840, Tax Increment Financing (TIF), and financing from Security First Bank, as well as a loan from Main Street Beatrice’s 2022 Rural Workforce Housing Fund.

To help close a remaining funding gap, NGage obtained a $495,000 USDA grant to support construction of the first-floor incubator space. Additionally, the Beatrice City Council approved a $1.5 million LB840 loan to The Paddock, LLC, demonstrating the community’s unified commitment to the project’s success.

Impact and Timeline

Building remediation began in May 2025, with the first commercial spaces and a portion of the residential units anticipated to open in early 2026. NGage’s new offices and co-working space are projected to be completed by summer 2026, with full residential completion scheduled for 2027.
The project is designed to preserve a historic downtown structure and create a vibrant hub for living, working, and innovation. The Paddock Redevelopment Project will help attract and retain a skilled workforce, stimulate downtown activity, and support Beatrice’s ongoing economic revitalization by offering new housing options and flexible workspace.

Reflecting NGage’s Mission

The Paddock Redevelopment Project embodies NGage’s mission to identify and remove barriers that hinder business growth and workforce attraction. Through strategic partnerships, innovative funding, and a commitment to community revitalization, NGage continues to advance projects that strengthen Gage County’s economic foundation and enhance quality of life.

The Paddock has the potential to offer a link to Beatrice’s past, an investment in its future, and an example of what can be achieved through collaboration, vision, and purpose-driven development.

Learn more about NGage’s economic development initiatives today.