Omaha, September 12, 2025
News Summary
The Omaha streetcar project, aimed at revitalizing the local economy, has inadvertently caused frustrations among business owners due to decreased customer traffic and financial hardship. With a projected cost of $389 million, the construction is set to continue through 2028, leading to notable closures and disruption along its route. Mayor John Ewing acknowledges the challenges and emphasizes efforts to support affected businesses while pursuing necessary utility work and financing negotiations.
Omaha – The ongoing construction of the streetcar project in Omaha, intended to revitalize business and bolster the local economy, has instead drawn significant frustrations from local business owners who report a decline in customer traffic and financial strain. The project, which is projected to cost $389 million and is expected to be in service by 2028, has caused considerable disruption while entering a utility relocation phase that is anticipated to last through 2027.
Several business owners along the construction route have expressed deep concerns about the impact on their operations. Reports indicate that many establishments are grappling with reduced foot traffic, leading to losses. One notable closure is that of Bad Seed Coffee and Supply, which had to shut down after having considered closing multiple times during a particularly challenging year due to the ongoing disruptions caused by the Harney Street bridge construction. Other business owners, such as the owners of Crescent Moon and Nodest Home Plants, have also shared their difficulties, citing layoffs and cuts in staff hours as they struggle to cope with the decreased customer engagement.
Mayor John Ewing has acknowledged the challenges faced by small businesses amid the construction. He mentioned that efforts are underway to minimize disruptions, and relief initiatives are being designed through collaboration with the Greater Omaha Chamber. In response to concerns about communication surrounding the project, the city has engaged Emspace + Lovgren to assist with providing updates to affected businesses and the local community.
Currently, construction activities have resulted in significant road disruptions, including the closure of Farnam at 10th Street and 10th Street southbound for a month, alongside ongoing utility work on 38th Avenue in the Blackstone District. These closures have raised alarms among businesses and residents alike, stressing the urgent need for better communication about the construction timeline.
The streetcar project is not only a hot topic among business owners but has also become a contentious issue in the mayoral race. As part of the development plan, a new $45 million apartment complex is set to rise along the streetcar route in the Blackstone District, comprising 180 residential units. Financing for the project is expected to include tax-increment financing (TIF), which has caused some debate among stakeholders.
Negotiations surrounding the funding of construction costs with the Metropolitan Utilities District (MUD) have been described as tense, primarily due to rising utility work costs associated with the streetcar project. MUD is currently seeking protections for ratepayers in light of these increases. Discussions are ongoing to ensure that there will be no additional gas or water rate increases for customers during this construction phase.
While the city aims to see local businesses thrive post-completion of the streetcar project, current sentiments from affected owners remain cautious and concerned about the future.
Key Details of the Omaha Streetcar Project
- Projected Cost: $389 million
- Estimated Completion: 2028
- Current Phase: Utility relocation (ongoing through 2027)
- Notable Business Closures: Bad Seed Coffee and Supply
- City Efforts: Financial relief and communication support
- Contentious Issues: TIF financing and utility negotiation complications
FAQ Section
Why is streetcar construction causing problems for local businesses in Omaha?
The construction has led to significant disruptions, including road closures and decreased foot traffic, causing financial strain on local businesses.
When is the Omaha streetcar projected to be completed?
The streetcar project is expected to be completed by 2028.
What measures are being taken to support affected businesses?
Mayor John Ewing has promised financial relief and better communication for impacted businesses through partnerships with local organizations.
What costs are associated with the streetcar project?
The streetcar project is estimated to cost $389 million, funded partly through tax-increment financing (TIF).
Key Features Chart
| Feature | Detail |
|---|---|
| Projected Cost | $389 million |
| Completion Year | 2028 |
| Current Phase | Utility relocation until 2027 |
| Impact on Businesses | Closure of Bad Seed Coffee and Supply, reduced traffic for others |
| Support Measures | Assistance from Greater Omaha Chamber |
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
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