Omaha, September 12, 2025

News Summary

The ongoing streetcar construction project in Omaha is significantly impacting local businesses along the route, with owners reporting a decline in customer traffic. While the initiative aims to boost the local economy, it has made it increasingly difficult for business owners to maintain operations. Some, like Bad Seed Coffee and Supply, have closed permanently due to the project’s adverse effects. Mayor John Ewing acknowledges the struggles faced by local businesses and promises forthcoming support amid ongoing negotiations concerning the project’s financial implications.

Omaha

The ongoing streetcar construction in Omaha is causing significant disruptions for local businesses along the construction route, with many owners reporting a decline in customer traffic. The construction is part of a larger initiative intended to boost the local economy and stimulate business growth, yet it has had the opposite effect in the short term.

Local business owners are expressing their frustrations as significant reductions in customer visits threaten their livelihood. Notably, owners from businesses such as Crescent Moon and Nodest Home Plants have vocalized concerns about the potential financial impact. Some have even had to make difficult decisions regarding staff hours and employee layoffs, citing that the disruption caused by the streetcar project has been more challenging than the recent COVID-19 pandemic.

One prominent case is Bad Seed Coffee and Supply, which has permanently closed its doors due to the adverse effects of the Harney Street bridge construction. Owners Brenna and Matt McCrary faced numerous challenges over the past year, ultimately deciding that they could not continue operating under the current circumstances. Their closure serves as a cautionary tale for other nearby businesses that are currently struggling.

The construction project is currently in the utility relocation phase, a process estimated to last until 2027, with the streetcar expected to be operational by 2028. Recent disruptions include closures at critical intersections such as Farnam at 10th Street and 10th Street southbound, which are projected to last for one month. Additional utility work is also being conducted on 38th Avenue in the Blackstone area, further complicating access for customers.

Amid these challenges, Mayor John Ewing has acknowledged the business owners’ concerns and assured them that support is forthcoming. Financial relief is anticipated through the Greater Omaha Chamber. The mayor indicated an aspiration to reduce the construction’s impact and improve communication with affected business owners, which has been criticized as inadequate thus far. To enhance engagement, the city has partnered with Emspace + Lovgren to offer regular updates.

While many businesses are currently struggling, Ewing remains optimistic that once the streetcar project is completed, businesses will experience renewed growth and increased patronage. He emphasized that the potential long-term benefits of the streetcar would ultimately outweigh the temporary hardships being faced now.

The estimated cost of the streetcar project stands at $389 million, primarily funded through tax-increment financing (TIF) proceeds. This financing strategy has become a contentious topic in the Omaha mayoral race, with debates around the implications for taxpayers and local businesses. Negotiations with the Metropolitan Utilities District (MUD), concerning rising costs associated with construction, have proven tense, leading to further scrutiny of the project’s budget and timeline. MUD has expressed concerns regarding ratepayers amidst escalating utility work expenses.

As negotiations continue, there are efforts underway to ensure that neither gas nor water rates will increase during the construction phase. The Omaha Streetcar Authority (OSA) plans to cover $46.5 million of the utility work costs through revenue generated from streetcar bonds.

Construction Impact on Local Business

Many businesses along the streetcar construction route are currently facing operational issues and financial strain. The unforeseen extent of disruption has left several owners feeling overwhelmed and uncertain about their future. Frequent cutbacks on staffing and hours underscore the gravity of the situation.

Future Developments

Looking ahead, plans for a new $45 million apartment complex featuring 180 units are being prepared for development in the Blackstone District along the streetcar route. The new development will also seek tax-increment financing, further adding layers to the ongoing discussions surrounding the streetcar project and its implications for local businesses and taxpayers.

Construction Timeline

The streetcar construction is expected to progress through multiple phases. Currently, the utility relocation phase continues with projected operations through 2027, while the streetcar service is anticipated to commence by 2028.

Key Issues

The Omaha Streetcar project has not only sparked discussions about local economic development but has also become a focal point in political conversations during the mayoral race. The outcomes of this project will have lasting implications for the community, business environment, and overall economic landscape of Omaha.

FAQ

What is the purpose of the streetcar construction in Omaha?

The streetcar construction is intended to promote economic growth in the city by improving transportation and accessibility, which stakeholders hope will benefit local businesses in the long term.

How long is the construction work expected to last?

The construction work is currently in a utility relocation phase that is projected to last until 2027, with the streetcar expected to be operational by 2028.

What support is available for businesses affected by the construction?

Mayor John Ewing has acknowledged the struggles of business owners and indicated financial relief through the Greater Omaha Chamber is forthcoming, along with improved communication and support for affected businesses.

What are the financial implications of the project?

The projected cost of the streetcar project is around $389 million, funded primarily through tax-increment financing (TIF) proceeds. Ongoing negotiations with the Metropolitan Utilities District (MUD) regarding rising utility work costs have further raised concerns about financial management and impact on local ratepayers.

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

Author: STAFF HERE PHOENIX WRITER

PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like 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 drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.