September 12, 2025

Omaha Streetcar Construction Impacts Local Businesses

News Summary

The ongoing construction of Omaha’s streetcar system is intended to boost local commerce but has left many nearby businesses struggling due to declining foot traffic and financial strain. Business owners express frustration as they navigate layoffs and reduced hours amid the disruption. Mayor John Ewing has committed to supporting affected businesses and improving communication about the project, which faces delays and rising costs. Despite the challenges, future developments, such as a new apartment complex, signal hope for economic growth once the project is completed.

Omaha – The ongoing construction of the streetcar system in Omaha aims to stimulate local commerce; however, many business owners along the construction routes report negative impacts on their operations. The anticipated economic boost has yet to materialize, resulting in declining customer traffic and financial strain for small businesses already reeling from the effects of the COVID-19 pandemic.

Local business owners express frustration as foot traffic dwindles due to the construction work taking place. Establishments such as Crescent Moon and Nodest Home Plants have experienced significant downturns, leading to concerns over added financial burdens amidst an atmosphere of uncertainty. Reports indicate that Bad Seed Coffee and Supply has closed its doors entirely due to the adverse effects of the ongoing Harney Street bridge construction, further exemplifying the hardships faced by small businesses in the vicinity.

Many owners have resorted to drastic measures to cope with the financial strain, including laying off employees and reducing staff hours. The widespread sentiment among business proprietors is that the severity of the disruption has surpassed expectations. With ongoing delays and the construction expected to affect crucial utility work, a significant number of businesses along the streetcar route fear they may be unable to survive the duration of the project, which is slated for completion in 2028.

In acknowledgment of these challenges, Mayor John Ewing has highlighted the city’s commitment to support affected business owners. The mayor has promised concerted efforts to minimize the disruption caused by construction activities and announced that financial relief measures will be provided through the Greater Omaha Chamber. Alongside this financial assistance, there will be improved communication regarding the progress of the streetcar project that has previously been criticized for its inadequacy.

The construction activities currently focus on utility relocations expected to persist until 2027, impeding access and parking in various key areas throughout the city. Recent construction work has affected intersections such as Farnam at 10th Street and created blockages on 10th Street southbound, impacting local businesses reliant on customer accessibility. Further disruptions are anticipated due to utility work on 38th Avenue in the Blackstone area, leading to more closures and parking restrictions.

Despite the difficult circumstances, future development plans are underway. A new $45 million apartment complex is scheduled for construction in the Blackstone District along the future streetcar route. This complex will feature 180 units and involves seeking tax-increment financing to aid project funding, factors that have raised contentious discussions in the current Omaha mayoral race.

The overall streetcar project is estimated to cost $389 million, primarily funded through TIF proceeds. Negotiations related to the project have reportedly faced obstacles, particularly with the Metropolitan Utilities District (MUD), which has raised concerns regarding protections for ratepayers during the complicated utility construction phase. MUD has indicated that rising costs—more than double estimated expenses—pose challenges to maintaining stable utility rates amid streetcar-related work.

Omaha’s Streetcar Authority (OSA) anticipates covering $46.5 million in utility work expenses for the streetcar initiative through dedicated bonds. There are ongoing efforts from both the city and MUD to finalize billing and reimbursement agreements, aiming to prevent any increases in water or gas rates for their customers while construction is underway.

As the streetcar construction continues with community support becoming essential, business owners and local residents hold hopeful outlooks for eventual economic growth once the project is fully operational. However, the ongoing turmoil highlights critical points of concern that need addressing, especially for the local businesses that form the backbone of Omaha’s economy.

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Author: STAFF HERE NEW YORK WRITER

NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, 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 New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.

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