The pool unfurls like a ribbon under a cloudless sky. Past the private beach and docked boat is Bluewater: 250 acres of lake water — an area larger than Disneyland Park — surrounded by 7 miles of sandy shores and some of Douglas County’s most expensive homes.
Ten years ago, this was a “blighted” pit. Now, neighbors like whoever buys the five-bed, sixth-bath house listed on Zillow for $3.25 million can fish, windsurf and kayak in this upscale neighborhood in Valley, about 30 minutes west of Omaha.
The transformation was made possible by tax increment financing, a tool state lawmakers designed to incentivize building in “substandard” areas by freezing property values for 15 to 20 years and reimbursing developers the difference as they make improvements…