News Summary
The ongoing streetcar construction project in Omaha has significantly impacted local businesses along the affected routes, countering promises of economic growth. Many business owners report declines in customer traffic, revenue, and some have even closed due to these disruptions. City officials and business owners are at odds regarding the project’s future, amidst assurances from the mayor that support will be provided and economic revitalization is on the horizon once construction is completed.
Omaha Streetcar Construction Disrupts Local Businesses Amid Economic Promises
The ongoing streetcar construction project in Omaha has resulted in significant disruptions for local businesses along the affected routes, despite promises of economic growth and revitalization. Business owners and city officials are at odds over the project’s impact and future prospects.
Business Owners Report Decline in Customer Traffic and Closures
Several local entrepreneurs have expressed frustration with the current construction phase, citing substantial declines in customer visits and revenue. Among them is the owner of Crescent Moon, who compared the disruption to the severity of the COVID-19 pandemic, stating that the current conditions surpass pandemic-related difficulties in terms of impact. Similarly, the owner of Nodest Home Plants voiced concerns about mounting debts due to decreased patronage, which threatens the viability of their business.
Owners along the construction corridor report that the ongoing work is driving customers away, with some establishments previously closing their doors altogether. Most notably, Bad Seed Coffee and Supply in the Blackstone neighborhood has ceased operations, citing the impacts of the Harney Street bridge and streetcar construction as key factors. The owners, Brenna and Matt McCrary, revealed that they had contemplated closing multiple times over the past year as the economic strain intensified.
Impact on Employment and Business Operations
Business owners who remain open have had to compensate for the downturn by reducing staff hours and laying off employees. The owner of Crescent Moon described the disruption as unpredictable and more severe than anticipated, leading to operational cutbacks and financial hardship. Some business leaders have called for greater support and assistance from city officials to sustain small enterprises during this challenging period.
City Response and Future Plans
Mayor John Ewing acknowledged the hardships faced by Omaha’s small businesses and assured the public that measures are being implemented to mitigate the impact. The city plans to offer financial assistance through the Greater Omaha Chamber and has partnered with Emspace + Lovgren to improve communication on project updates for both business owners and residents.
The mayor expressed confidence that once the streetcar project is completed, local businesses will rebound and thrive. Currently, the construction is in a utility relocation phase expected to last through 2027, with the streetcar anticipated to begin service by 2028.
Construction Disruptions and Additional Developments
Recent disruptions include the closure of Farnam at 10th Street and along southbound 10th Street, expected to last for about a month. Utility work is ongoing on 38th Avenue in Blackstone, causing further parking restrictions and inconvenience. Alongside these efforts, a $45 million apartment complex with 180 units is planned in the Blackstone District to boost urban development, with discussions underway to seek tax-increment financing (TIF).
The streetcar project has attracted political debate, especially related to the funding and development strategies. The total cost of the project is estimated at $389 million, primarily funded through TIF proceeds. Negotiations between the city and Metropolitan Utilities District (MUD) have been tense, as utility-related costs have surged, with estimates doubling due to the extensive work involved with utility relocation and infrastructure upgrades.
Officials aim to protect ratepayers, with both MUD and the city working toward finalizing billing and reimbursement agreements. The goal is to avoid increases in gas and water rates during the construction period, which has added another layer of complexity and concern for residents and businesses alike.
Conclusion
While the Omaha streetcar project promises future economic benefits and urban renewal, current disruptions have caused tangible challenges for local businesses, leading to closures, layoffs, and financial strain. City officials remain optimistic about eventual recovery, emphasizing ongoing efforts to support the community and complete the project efficiently.
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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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