September 12, 2025

Omaha Streetcar Construction Draws Criticism from Local Businesses

News Summary

The construction of the Omaha streetcar line is facing backlash from local businesses along the route, who report declining customer traffic and financial woes. Entrepreneurs express that the disruptions from construction have been more severe than during the pandemic, leading to increased debt and even permanent closures. Business owners are calling for assistance as city officials acknowledge the challenges and promise support. Ongoing dialogues aim to improve the situation as the project progresses towards its completion in 2028, while new developments also arise in the area.

Omaha, NE – The ongoing construction of the streetcar line in Omaha, designed to enhance economic activity and boost local businesses, is facing criticism from many business owners along the route, who report that the project is having the opposite effect. As construction continues, there are growing concerns over decreased customer traffic and the resulting financial strain on small businesses.

Local entrepreneurs have voiced their dissatisfaction as they navigate the challenges posed by the construction. The owner of Crescent Moon noted that the impact of the construction has been more challenging than the pandemic, alluding to significant disruptions in customer flow. Similarly, the owner of Nodest Home Plants expressed fears about accumulating more debt due to the dwindling number of patrons. These sentiments reflect a broader concern among business owners along the construction path, who claim that the promise of increased business once the project is completed is not materializing in the short term.

Several establishments have already felt the harsh effects of the construction. Bad Seed Coffee and Supply is one such business that has permanently closed its doors due to the adverse impacts of the Harney Street bridge construction. The owners of Bad Seed cited ongoing financial difficulties that forced them to contemplate closure multiple times throughout the past year. In response to the financial strain, many business owners have been compelled to reduce employee hours and implement layoffs to manage costs during this challenging period. The significant disruption has left many owners struggling to keep their operations afloat.

In light of these circumstances, calls for assistance have grown louder among business owners affected by the streetcar project. They are urging city officials to recognize the crucial support needed to help local enterprises survive through the construction phase. Mayor John Ewing has acknowledged the hardships faced by small businesses and committed to providing assistance. Efforts to minimize the construction’s impact are underway, and financial relief is expected via collaboration with the Greater Omaha Chamber.

Moreover, the communication regarding the construction project has been criticized for being insufficient, prompting city officials to admit that improvements are necessary. Updated information for business owners and customers is now being provided through a partnership with Emspace + Lovgren to better inform all stakeholders involved. The mayor remains optimistic that once the streetcar project is complete, the businesses will flourish due to the increased foot traffic and improved accessibility.

The streetcar construction is currently in the utility relocation phase, anticipated to last until 2027, with the streetcar expected to begin service in 2028. Recent road closures due to construction activities include sections of Farnam at 10th Street and the southbound lane of 10th Street, which are projected to last for one month. Utility work is also affecting 38th Avenue in the Blackstone neighborhood, causing additional disruption and parking difficulties.

The broader economic context includes plans for a new $45 million apartment complex within the Blackstone District. This development, featuring 180 units, aims to take advantage of the streetcar route, with developers intending to pursue tax-increment financing (TIF). The streetcar project itself is estimated to cost around $389 million, funded primarily through TIF proceeds, making it a contentious issue in the upcoming Omaha mayoral race.

Negotiations with the Metropolitan Utilities District (MUD) have reportedly been tense, with rising costs for utility work associated with the streetcar project. MUD is seeking assurances that residential and commercial ratepayers will not face increases in their service rates during the construction. Meanwhile, OSA is prepared to cover $46.5 million in utility work costs through issued streetcar bonds. Both MUD and the city are working to finalize agreements related to billing and reimbursements to minimize the financial impact on local consumers.

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Author: STAFF HERE CLEVELAND WRITER

CLEVELAND STAFF WRITER The CLEVELAND STAFF WRITER represents the seasoned team at HERECleveland.com, your premier source for actionable local news and information in Cleveland, Cuyahoga County, and beyond, delivering "news you can use" with in-depth coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news impacting the region—backed by years of expert reporting and robust community input, including local press releases and business updates, while providing top reporting on high-profile events like the Rock and Roll Hall of Fame inductions, Cleveland International Film Festival, and holiday parades, alongside key organizations such as the Cleveland Clinic, Cleveland Orchestra, and Great Lakes Science Center, plus leading businesses in manufacturing and healthcare like Sherwin-Williams and University Hospitals, and as part of the broader HERE network including HEREDayton.com, offering comprehensive, credible insights into Ohio's vibrant landscape. HERE Cleveland HERE Dayton