News Summary
The streetcar construction project in Omaha is causing significant disruptions for local businesses, with many reporting declines in customer traffic and sales. Despite promises of future economic benefits from the city, owners express frustration over ongoing challenges, including temporary closures and reduced revenue. While the city plans to support affected businesses, the construction phase is expected to last until 2027, with streetcar service projected to start in 2028. The project aims to enhance the city’s transportation infrastructure, but the immediate impacts are being heavily felt.
Omaha Streetcar Construction Disrupts Local Businesses Amid Economic Promises
The ongoing streetcar construction project in Omaha has become a source of concern for many local business owners, who report that the work is negatively impacting their operations despite the city’s promises of future economic growth. The project, aimed at revitalizing the city’s transportation infrastructure, has currently entered a phase involving utility relocations expected to continue until 2027, with streetcar service projected to begin in 2028.
Business Owners Face Declining Customer Traffic
Many business owners along the construction route have expressed frustration, citing significant decreases in customer visits and sales. Bill Baburek, owner of Crescent Moon, compared the disruption to the pandemic, suggesting it has been equally or more challenging. Others, like Shannon Beck of Nodest Home Plants, have voiced concerns about mounting debt due to fewer customers and reduced revenue. Several small businesses have been directly impacted, with some forced to reduce staff hours or lay off employees.
Closures and Construction Disruptions
Notably, Bad Seed Coffee and Supply, located in the Blackstone district, has shut down permanently, attributing its closure to the ongoing Harney Street bridge construction and related streetcar work. The owners cited a difficult year and multiple considerations before deciding to close their doors. Additionally, ongoing construction on Farnam Street and 10th Street has led to temporary closures, with some expected to last for approximately one month. Utility work on 38th Avenue in Blackstone has also caused parking restrictions and disruptions in the area.
City Response and Support Measures
The mayor of Omaha, John Ewing, has acknowledged business owners’ difficulties and assured the public that measures are being taken to mitigate the impact. The city has announced plans to provide financial assistance through the Greater Omaha Chamber, aiming to offer relief to affected small businesses. Concerns over communication have been raised, but the city has partnered with Emspace + Lovgren to improve updates and engage with both business owners and residents about the project’s progress. Despite the current challenges, city officials remain optimistic that the businesses will prosper once construction concludes.
Projected Timeline and Future Development
The streetcar project’s construction phase involves a utility relocation process, expected to extend through 2027. The streetcar service itself is targeted to launch by 2028. In the meantime, a new $45 million apartment complex is planned for development in the Blackstone District, featuring 180 units and seeking tax-increment financing (TIF). This development is part of broader efforts to stimulate economic growth along the streetcar route.
Financial and Utility Cost Considerations
Funded largely through TIF proceeds, the streetcar project has an estimated total cost of $389 million. The city has reported tense negotiations with the Metropolitan Utilities District (MUD) regarding utility work costs, which have reportedly doubled due to unforeseen complications. MUD seeks protections for ratepayers as utility-related expenses escalate, while the Omaha Secure Authority (OSA) expects to cover approximately $46.5 million in utility work costs via streetcar bonds. Both parties are working to finalize billing agreements to prevent increases in gas and water rates during construction.
Conclusion
While the streetcar construction in Omaha promises future economic development and improved transportation, current disruptions have caused notable hardship for some local businesses. City officials remain committed to supporting affected enterprises and ensuring the project’s successful completion. As construction continues, ongoing efforts aim to balance infrastructure enhancement with minimizing adverse impacts on the community and local economy.
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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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