News Summary
The ongoing construction of the Omaha streetcar project has severely impacted local businesses, with owners reporting worse customer traffic than during the pandemic. Many are struggling with financial pressure, leading to staff reductions and some closures. Mayor John Ewing has pledged support, but communication about the project remains inadequate. As construction proceeds, uncertainty looms over the small business community, despite hopes for future economic revitalization upon project completion.
Omaha – The ongoing construction of the streetcar project in Omaha is causing significant disruptions for local businesses, challenging the project’s potential to boost the economy as initially promised. Business owners along the construction route report that the present impact on customer traffic is worse than the setbacks experienced during the COVID-19 pandemic.
Local establishments, including Crescent Moon and Nodest Home Plants, have expressed anxiety over declining customer visits. Some business owners worry about accruing more debt as a result of the decreased foot traffic driven by construction. One notable closure, Bad Seed Coffee and Supply, is attributed directly to the effects of the Harney Street bridge construction. Owners have cited multiple instances throughout the past year where they contemplated shutting down operations due to continuous financial pressure.
Business owners have had to make tough decisions, with some reducing staff hours while others faced layoffs. The overall sentiment among shopkeepers is one of uncertainty, as many did not anticipate the scale of disruption caused by the streetcar project.
In response to the growing concerns from local entrepreneurs, Omaha’s Mayor John Ewing has acknowledged the impact on small businesses and has promised forthcoming assistance. He reiterated the city’s commitment to minimizing disruption during the construction process. Furthermore, he has indicated that financial resources will be made accessible through the Greater Omaha Chamber to support affected businesses.
Despite the reassurances from the mayor, communication regarding the streetcar construction has faced criticism for being inadequate, which the mayor has conceded. To address this issue, the city has partnered with the communications firm Emspace + Lovgren to improve updates for business owners and customers regarding the progress and impact of the construction.
The streetcar construction is currently in a utility relocation phase, which is projected to last until 2027, while the streetcar is expected to be operational by 2028. Significant construction work is already underway, causing delays and road closures in neighborhoods like Blackstone. Specific closures include Farnam at 10th Street and southbound 10th Street, which are expected to last around one month. Additional utility work on 38th Avenue further complicates access and parking for businesses in the vicinity.
Looking towards the future, the streetcar project, estimated to cost around $389 million, will be funded predominantly through tax-increment financing (TIF) proceeds. As part of the projected growth around the streetcar route, a new $45 million apartment complex is set for development in the Blackstone District, aiming to enhance community engagement and housing options.
However, the funding mechanism and the construction’s impact have stirred contention in local political discussions, particularly in the ongoing mayoral race. Negotiations regarding construction costs between the city and the Metropolitan Utilities District (MUD) have been described as tense, particularly as utility work expenses are reported to have doubled. In the interest of protecting ratepayers, MUD is working alongside the city to establish billing and reimbursement agreements that would ensure there are no increases in gas or water rates for customers during construction.
As the streetcar project progresses, local business owners remain hopeful that the eventual completion will bring increased foot traffic and economic revitalization. However, the challenges faced in the interim are prompting demands for a stronger support system to ensure the survival of small businesses struggling in the current landscape.
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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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