September 12, 2025

Omaha Streetcar Project Disrupts Local Businesses

News Summary

The ongoing streetcar construction in Omaha is causing significant disruptions for local businesses, leading to declines in foot traffic and operational challenges. Business owners are now facing layoffs and even closures due to the adverse impact of the construction. The city’s Mayor has acknowledged these concerns and is seeking ways to alleviate the disruption while promoting the long-term economic benefits expected from the project.

Omaha, NE – The ongoing construction of a streetcar project in Omaha is causing significant disruptions for local businesses, contrary to the anticipated economic uplift associated with the project. Business owners situated along the construction route are expressing growing concerns about the impact of the construction on their operations and customer traffic.

Numerous business proprietors have reported a sharp decline in foot traffic, attributing this downturn to the construction work disrupting access to their shops. For instance, a local coffee shop has permanently closed due to the adverse effects of the ongoing construction on the Harney Street bridge. Owners of the café mentioned that they have faced various challenges that made it difficult to continue operating throughout the past year.

Establishments like Crescent Moon have also experienced heavy disruptions. The owner has stated that the construction’s impact is far more severe than the unsettled conditions brought on by the COVID-19 pandemic. Many businesses are finding themselves having to cut employee hours, implement layoffs, or even contemplate closure due to dwindling income since the construction began.

This streetcar initiative, which is expected to be fully operational by 2028, has entered a utility relocation phase projected to last until 2027. As part of this work, street closures have been prominent, including areas around Farnam at 10th Street and 10th Street southbound. This particular utility work is expected to hinder access and parking availability for an entire month. Additionally, utility work is currently being conducted on 38th Avenue in the Blackstone area, exacerbating the situation with ongoing disruptions.

In light of these challenges, local business owners have called for more robust support from city officials to navigate through this difficult period. The city’s Mayor, John Ewing, has acknowledged the concerns of the business community. He has promised to implement measures aimed at lessening the disruption caused by the construction, along with financial relief opportunities facilitated through the Greater Omaha Chamber.

Efforts are also being coordinated with a public relations firm to ensure effective communication with local businesses and residents regarding the construction’s impact. Mayor Ewing is confident that the long-term benefits of the streetcar project will eventually lead to a thriving business environment once operations are completed.

The streetcar project has been estimated to cost $389 million, funded predominantly through tax-increment financing (TIF) proceeds. A notable aspect of this financing mechanism is a new apartment complex project planned for the Blackstone District, which will add 180 residential units along the streetcar alignment. However, the financing and streetcar plans have stirred controversy during the current mayoral election cycle.

Negotiations surrounding the construction have not been without conflict. The Metropolitan Utilities District (MUD) has expressed concerns regarding the rising costs associated with the utility work required for the streetcar project. Reports have indicated that the expenses linked to the necessary utility work have doubled, prompting MUD to seek assurances of no rate increases for customers.

In the face of these rising costs, the Omaha Streetcar Authority expects to cover a significant portion of the utility work via streetcar bonds, while final billing and reimbursement agreements between MUD and the city are still being negotiated. These agreements aim to protect local ratepayers during the construction phase, which remains a pressing concern for residents and businesses alike.

The streetcar project, although envisioned to stimulate growth and decrease transportation challenges within the city, is currently placing a heavy burden on local businesses that were hoping to benefit from increased traffic and visibility. The situation underscores the inherent complexities of large city infrastructure projects and the need for comprehensive planning and support during the construction phases.

Deeper Dive: News & Info About This Topic

HERE Resources

Additional Resources

Author: STAFF HERE LOS ANGELES WRITER

LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana

ADD MORE INFORMATION OR CONTRIBUTE TO OUR ARTICLE CLICK HERE!