News Summary
Local businesses in Omaha are facing a decline in customer traffic due to the ongoing streetcar construction. Owners express concerns about financial viability, with some reporting closures and layoffs. Mayor John Ewing acknowledges the challenges and promises assistance, while communication regarding the project has been criticized. As disruptions continue and future expansions are planned, local business owners are calling for more support and information regarding the project’s impact.
Omaha – The ongoing construction for the new streetcar system in Omaha is raising concerns among local businesses, with many reporting a significant decline in customer traffic. Business owners along the construction route argue that instead of the anticipated economic boost, they are facing severe financial challenges due to disruptions caused by the project.
As construction progresses, business owners have expressed their distress about falling revenues and the future viability of their establishments. Some, like the owner of Crescent Moon, conveyed that the hardships from COVID-19 pale in comparison to the current situation caused by the streetcar construction. Similarly, the owner of Nodest Home Plants fears accumulating more debt due to the decrease in foot traffic to her store, which has been exacerbated by ongoing construction efforts.
Reports indicate that the impact is already leading to business closures. For instance, Bad Seed Coffee and Supply has shut down its operations, attributing the decision to the difficulties and uncertainty caused by construction on the Harney Street bridge. The owners shared that they faced multiple considerations of closing during what has been an exceptionally challenging year.
Amidst ongoing disruptions, many business owners have resorted to reducing employee hours and laying off staff. Some stated that the extent of disruption from the streetcar construction was unexpected, prompting calls for more support for those affected.
In light of these ongoing challenges, Mayor John Ewing has acknowledged the frustrations expressed by local business owners and has promised assistance. The Mayor emphasized that efforts are underway to alleviate the construction’s impact, with financial relief organized through the Greater Omaha Chamber.
However, communication regarding the progression of the project has faced criticism, with the Mayor admitting that information shared with business owners and the public has been insufficient. To address this, the city has engaged the services of a communications firm to enhance the dissemination of updates related to the construction and its implications for local businesses.
As it stands, the streetcar construction is currently in the utility relocation phase, which is projected to continue through 2027. The anticipated launch of the streetcar service is expected in 2028. Recent construction activities include disruptions at intersections such as Farnam at 10th Street and southbound 10th Street, which are anticipated to last for one month. Additional utility work is also taking place on 38th Avenue in Blackstone, contributing to the ongoing challenges related to parking and access for customers of nearby businesses.
Looking to the future, developments along the streetcar route include plans for a new $45 million apartment complex in the Blackstone District, which will offer 180 units. This project is being proposed in conjunction with tax-increment financing (TIF) support. The TIF and the streetcar project have become contentious subjects in the ongoing Omaha mayoral race.
The streetcar initiative has an estimated total cost of $389 million, primarily funded through TIF proceeds. Recent tensions have arisen between the city and the Metropolitan Utilities District (MUD) regarding the increasing costs associated with construction. MUD has expressed the need for protections for ratepayers amid rising expenses, which have reportedly doubled in recent evaluations.
To manage these increased costs, the Omaha Streetcar Authority expects to cover $46.5 million of the utility work expenses through designated streetcar bonds. Currently, both MUD and the city are working to finalize agreements on billing and reimbursement to ensure that utility rate increases for gas or water do not impact customers during the construction phase.
As the situation develops, the efforts to coordinate assistance for local businesses alongside the streetcar project are being closely monitored by city officials and the community alike.
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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
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