News Summary
Omaha’s streetcar construction has caused significant disruptions for local businesses, with owners reporting decreased customer traffic and financial strain. Promises of economic growth have been overshadowed by the realities of construction impacts, forcing many to make difficult decisions regarding staff and operations. With major projects underway and a completion date set for 2028, local business owners express concern over their futures as the city attempts to mitigate the adverse effects of this large infrastructure project.
Omaha Streetcar Construction Causes Disruption for Local Businesses Amid Promised Growth
Omaha’s ongoing streetcar construction project has faced significant criticism from local business owners who report negative impacts on their operations, contradicting the project’s promises to stimulate economic growth. The construction, primarily focused on the Harney Street corridor and extending into other districts, is currently affecting numerous businesses along the route, with many facing declining customer traffic and financial hardship.
Business Owners Express Concerns Over Construction Impact
Among those affected is Crescent Moon owner, who voiced frustration over the disruption, comparing the recent construction challenges to the COVID-19 pandemic, stating that it has caused more hardship. Similarly, Nodest Home Plants owner has expressed concern about decreasing customer visits, which threatens her ability to manage mounting debts. Business owners along the construction path report that customer numbers have dropped significantly, leading to reduced revenue and uncertainty about the future.
One notable closure resulting from the construction is Bad Seed Coffee and Supply, which recently shut its doors permanently. The owners, Brenna and Matt McCrary, revealed that they had to consider closing multiple times over a difficult year marked by persistent construction disruptions and financial strain.
Impact on Employment and Business Operations
Many small business owners have had to make difficult decisions, including cutting staff hours or laying off employees, in response to decreased patronage. Streetcar construction has disrupted access to certain areas, such as Farnam at 10th Street and the southern part of 10th Street, which are expected to be closed for up to a month. Construction on 38th Avenue in the Blackstone neighborhood also continues, causing parking restrictions and further challenges to local commerce.
City Officials Respond and Promise Support
Omaha Mayor John Ewing acknowledged the concerns raised by business owners and assured the public that efforts are underway to mitigate the construction’s adverse effects. The city has partnered with design firm Emspace + Lovgren to improve communication and provide regular updates to both business owners and residents. The mayor also indicated that financial relief measures are on the way, with support channels available through the Greater Omaha Chamber to help small businesses cope during this period.
Despite the ongoing challenges, Ewing expressed confidence that local businesses would recover and thrive once the project is completed, which is currently scheduled for 2028 following the utility relocation phase that is expected to last through 2027.
Construction Timeline and Current Phases
The streetcar project’s construction phase involves significant utility work, including relocating water and gas lines, which has caused major disruptions. The city expects that utility work will continue into 2027, with the streetcar service projected to commence in 2028. Recent work has included utility replacements on Farnam Street and 10th Street, with an estimated one-month closure period, as well as ongoing activities on 38th Avenue in the Blackstone District, leading to parking and access limitations.
Development and Funding
Alongside the construction, new developments are progressing in the affected neighborhoods. A notable project is a $45 million apartment complex planned for the Blackstone District, featuring 180 units. The development team is seeking tax-increment financing (TIF) to support this and other projects, which have sparked political debate in Omaha’s mayoral race.
Financial and Contractual Aspects of Utility Work
The overall streetcar budget is estimated at approximately $389 million, primarily funded through TIF proceeds. The city has encountered challenges in negotiations with the Metropolitan Utilities District (MUD) regarding the costs of utility work connected to the project. MUD has reported a significant increase in estimated expenses, seeking to protect ratepayers from rising utility costs. The city’s OSA (Omaha Streetcar Authority) intends to cover $46.5 million of utility-related expenses via streetcar bonds.
Both the city and MUD are working to finalize billing and reimbursement agreements, aiming to prevent increases in water and gas rates for customers during construction. Negotiations have been described as tense, particularly concerning cost escalations, which have reportedly doubled in recent estimates.
Conclusion
As Omaha advances with its streetcar project, the challenges faced by local businesses remain a key concern. While city officials have promised support and expect future economic benefits post-completion, current disruptions highlight the complex trade-offs involved in large infrastructure developments. The project’s success and its impact on Omaha’s economy and community depend on continued communication, funding management, and targeted support for affected businesses during this transition period.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- WOWT: Omaha Businesses Hit Hard by Streetcar Construction
- KETV: Omaha Streetcar Project Continues with New Road Closures
- Nebraska Examiner: $45M Apartment Project to Rise on Omaha Streetcar Route
- 3 News Now: Omaha Streetcar 2024 Recap and 2025 Expectations
- 3 News Now: Midtown Businesses Navigate Streetcar Construction Challenges
- Wikipedia: Omaha
- Google Search: Omaha streetcar construction
- Google Scholar: streetcar projects benefits
- Encyclopedia Britannica: Streetcar
- Google News: Omaha streetcar news
Author: STAFF HERE VIRGINIA BEACH WRITER
VIRGINIA BEACH STAFF WRITER The VIRGINIA BEACH STAFF WRITER represents the seasoned team at HEREVirginiaBeach.com, your trusted source for actionable local news and information in Virginia Beach, Virginia Beach City, and beyond, delivering "news you can use" with comprehensive coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news impacting the region—supported by years of expert reporting and strong community input, including local press releases and business updates, while offering top reporting on high-profile events like the Virginia Beach Neptune Festival, East Coast Surfing Championship, and military homecoming celebrations, alongside key organizations such as the Virginia Aquarium, Virginia Beach Convention Center, and Oceana Naval Air Station, plus leading businesses in tourism and defense like Busch Gardens and Northrop Grumman, and as part of the broader HERE network including HEREWilliamsburg.com, providing credible, in-depth insights into Virginia's vibrant landscape. HERE Virginia Beach HERE Williamsburg
