Jump to content

Omaha Streetcar

Add links
From Wikipedia, the free encyclopedia

Omaha Streetcar
Overview
StatusUnder construction
OwnerCity of Omaha, Nebraska
LocaleOmaha, Nebraska, U.S.
Stations13
Websiteomahastreetcar.org
Service
TypeStreetcar
Services1
Rolling stockCAF Urbos
History
Planned opening2028
Technical
Line length3.0 mi (4.8 km)
CharacterStreetcar in mixed traffic
Route map

Legend
 CHI Health Center
10th / Capitol
Douglas / 8th
10th St
14th St
15th St
19th St
24th St
26th St
Turner Blvd
34th St
39th St
42nd St

The Omaha Streetcar is a future streetcar system in Omaha, Nebraska, United States. It is estimated to be completed in 2028.[1]

History

[edit]

Background

[edit]

The Omaha-Council Bluffs streetcar era began operations in 1868. By 1890, the metropolitan area had 90 miles (140 km) of tracks — more than any city except Boston. The Omaha Traction Company was the dominant private streetcar provider of the time; it was engulfed in repeated labor disputes.[2][3] By 1955, the city closed its streetcar system in favor of buses.[4]

Planning and development

[edit]

In 2009, the City of Omaha and Heritage Services developed a Downtown Omaha Masterplan to improve the Omaha downtown area by 2030.[5] The transportation element of the Omaha Master Plan was completed in 2012, and included a bus rapid transit (BRT) and other non-car transit as part of the transportation blueprints.[6] In 2013 as part of a central Omaha transit analysis, SB Friedman Development Advisors forecast central Omaha development impacts from improved transit.[7] The Friedman analysis compared streetcar projects from Portland, Seattle, and Tampa to BRT alternatives from Cleveland and Kansas City, estimating the streetcar increases development by $1 billion and the BRT alternative by $262 million.[7] However, the Friedman analysis ignored Portland's $725 million, Seattle's $1 billion, and Tampa's $165 million in direct subsidies to developers, calling into question if streetcar economic impact differs from other modes of transportation.[8] The central Omaha transit alternatives analysis was completed in 2014, narrowing down the alternatives to a BRT or streetcar system along Farnam and Harney or a Farnam Contraflow route.[9]

2014 Central Omaha Transit Alternatives Analysis Final Screening Summary[10]
Criteria Alternative 1 Alternative 2 Alternative 2A Alternative 3 Alternative 3A
BRT BRT Streetcar
Dodge/Douglas Couplet Farnam/Harney Couplet Farnam Contraflow Farnam/Harney Couplet Farnam Contraflow
RIDERSHIP
Ridership 1,180 passengers 1,430 passengers 1,380 passengers
CAPITAL COSTS
Capital Cost

(2013)

$36,638,000 $37,196,000 $42,543,000 $141,386,000 $141,724,000
Annualized capital cost $2,007,000 $2,037,000 $2,330,000 $7,745,000 $7,763,000
Cost per mile $6,242,000 $6,048,000 $7,102,000 $42,331,000 $44,567,000
OPERATION AND MAINTENANCE COST (O&M)
Annual O&M Cost (2013) $2,647,486 $2,681,234 $6,883,515
COST BENEFIT
Cost per user $3.94 $3.30 $3.50 $10.60 $10.61
RECOMMENDATION Eliminate Advance Advance Advance Advance

During her re-election campaign in April 2017, Mayor Jean Stothert said voters should decide the streetcar's future, hoping to put it on the November 2018 ballot, "I've always wanted the people to be the final decision," the mayor said. "That's nothing different."[11] In the 2019 to 2020 election cycle Stothert received: $10,000 from HDR Inc., an engineering firm advocating for streetcars nationwide, and $5,000 from Kutak Rock LLP, a legal firm with specialists in Tax Increment Financing (TIF).[12][13][14]

Representative Don Bacon was unsuccessful in obtaining an $8 million earmark for the project in 2021.[15]

In 2022, a revised plan was announced by Mayor Jean Stothert and the Greater Omaha Chamber of Commerce's Urban Core Committee.[16]

State Senator Justin Wayne, champion of TIF legislation for 'extremely blighted' areas of the state, questioned the use of TIF for the streetcar saying “For them to extremely blight that area is a slap in the face to North and South Omaha," citing multimillion-dollar investment and renovation projects going on in the urban core of the state's biggest city, “In no way is downtown Omaha extremely blighted.”[17]

At the December 6, 2022, Omaha City Council meeting Thomas Rubin, CPA, CMA, CMC, CIA, CGFM, CFM, a transit industry senior executive, consultant, and auditor with four decades experience in transportation and an Omaha native provided a presentation.[18][19] Rubin states the Omaha Rapid Bus Transit (ORBT) excels over the proposed streetcar line on almost all standard transportation measures: going over three times as far west to serve more potential riders and destinations, faster operating speed, and more trips/day – and at a far lower cost that does not require hundreds of millions of dollars of additional taxpayer capital.[20] Rubin also highlights, per HDR analysis, the Omaha streetcar achieved most of the development potential already since ORBT began operations two years ago with two-thirds of the growth development ability of the proposed streetcar in the development corridor under study.[21] On December 13, 2022, the Omaha City Council approved $440 million in bonds to fund the streetcar, $360 million TIF bonds and $80 million from lease purchase bonds.[22] The City of Omaha published a plan to pay back the $600 million needed, $440 million principle plus $160 million in interest, by: first, diverting $421 million from $2.2 billion in new TIF subsidized projects in the streetcar district; second, diverting $71 million from existing development in the streetcar district; and third, diverting $115 million from existing TIF subsidized projects by extending those TIFs 5 years for a total of $607 million in diverted property taxes.[23] Subsequently, investor Warren Buffett, an Omaha resident and owner of Berkshire Hathaway, published a letter to the editor in the Omaha World-Herald to oppose the street project. He cited its cost and inflexibility compared to a bus system.[24]

The streetcar would run on a three-mile (4.8 km) route from Cass to Farnam on South 10th Street, Farnam west to 42nd Street, and back to 10th Street on Harney. The streetcar was originally expected to be operational in 2026, and free for all riders.[25] On June 12, 2023 streetcar officials stated plans to hire an outside company to run the streetcar, as Omaha has no one capable, and moved the beginning of operations to spring 2027.[26] While future expansions north, south, and west in Omaha and Council Bluffs, Iowa, have been proposed, Omaha city planning stated an alternatives analysis has yet to be completed on any proposal and would take a total of 8 to 10 years once started.[27][28]

Utility relocation work along the route began in September 2023.[29]

At a June 18, 2024 news conference Omaha Mayor Jean Stothert and Omaha Streetcar Authority Chairman and developer Jay Noddle updated streetcar corridor costs to $459 million, with $39 million of the increase to be paid by city sewer fees, and a potential cost-sharing agreement with Nebraska Department of Transportation to cover about $21.5 million in bridge replacement costs.[30]

Nebraska State Auditor Mike Foley issued a 26 page advisory letter to the Nebraska Unicameral on the increased use of TIF in Nebraska and highlighted Omaha's streetcar project summarizing “My purpose for discussing the ‘Streetcar Project’ in the letter is not to criticize or pass judgement on this half-billion dollar undertaking, which uses TIF on over 1,100 parcels of prime real estate,” Foley stated. “It is merely to shed light on the potential impact of the financing techniques being employed to fund it. In the final analysis, construction of the ‘Streetcar Project’ will be anything but free.”[31] In that same advisory, Foley noted that during the time property taxes are diverted to pay off costs of a redevelopment project, those property taxes are not available for public education and other local services.[32]

City of Omaha announced a new projected operational date of 2028.[33]

2025 Omaha mayoral candidate Mike McDonnell proposed a referendum allowing residents to decide whether to continue the streetcar project, even though opponents, including Douglas County Treasure John Ewing, Candidate Jasmine Harris, and Mayor Jean Stothert, argue that it is too late to halt the project.[34]

In September of 2025 Omaha's Metropolitan Utilities District (MUD) sought a payment plan to protect ratepayers and the utility district from shouldering a significant increase in streetcar-related construction costs. Omaha has called for a way to monitor MUD’s streetcar expenses, stating the city was blindsided by the cost of the utility district’s first phases of work.[35]. As part of the 2026 budget and capital improvement program, the City of Omaha approved an additional $61 million in non-bond funding for the streetcar project for the first time, with $35 million from the Sewer Revenue Improvement fund.[36][37] City of Omaha Public Works Director Robert Stubbe confirmed non-bond funding for the streetcar would be used during Omaha Street Car Authority's 2026 budget deliberation, Resolution 2025-031.[38]

On February 24, 2026 the Omaha City Council held a public hearing on an additional $70 million in lease-purchase bonds for the streetcar project.[39] [40] During the meeting, Deputy Chief of Staff Economic Development Steve Jensen stated that the administration did not expect to issue more than approximately $490 million in streetcar-related bonds in total, explaining the additional authorization was intended in part to allow the city to shift a portion of the planned financing from 20 year TIF revenue bonds to 40-year lease-purchase bonds.[41] The following table summarizes streetcar related bond ordinances adopted since 2022:

Omaha streetcar–related bond ordinances
Ordinance Date passed Type of bonds "Not to exceed" amount New money or amendment Notes
ORD 43221[22] December 13, 2022 Tax increment financing (TIF) revenue bonds US$360,000,000 New authorization Master TIF bond ordinance for the streetcar project; payable from TIF revenues.
ORD 43220[22] December 13, 2022 Lease‑revenue bonds (via Omaha Public Facilities Corporation) US$80,000,000 New authorization First lease‑revenue tranche for streetcar facility and equipment.
ORD 43636[42] December 19, 2023 N/A (amendment only) N/A Amends ORD 43220 Extends maximum maturity to 40 years; does not add new money.
ORD 43637[42] December 19, 2023 Lease‑revenue bonds (master lease‑purchase) US$50,000,000 New authorization Establishes master lease‑purchase framework for the 2024 project.
ORD 44355[43] July 29, 2025 Lease‑revenue bonds, Series 2025C US$65,000,000 New authorization Third supplemental indenture; provides financing for the 2025 project.
ORD 44611[39] February 2026 (proposed) Lease‑revenue bonds, Series 2026D US$70,000,000 New authorization Fourth supplemental indenture; provides financing for the 2026 project.

City Councilman Brinker Harding stated during the public hearing that he holds no personal equity stake in land within the streetcar district.[44] Harding is also a senior vice president at Colliers International in Omaha, a commercial real estate firm that specializes in investment sales and landlord representation in the local market.[45]

Rolling stock

[edit]

In February 2024, it was announced that the line will use six CAF Urbos streetcars similar to those currently in use in Kansas City and Cincinnati.[46] Funding was approved in May of that year.[47]

See also

[edit]

References

[edit]
  1. ^ "Omahastreetcar.org - PublicInput". Retrieved May 13, 2025.
  2. ^ "Militia in Omaha After Fatal Riot". The New York Times. June 16, 1935. p. 1. Retrieved January 1, 2022.
  3. ^ "New riots in Omaha; Bricks Bombard Street Cars in Revived Strike Outbreak". The New York Times. June 30, 1935. p. 2. Retrieved January 3, 2023.
  4. ^ Wade, Jessica (January 26, 2022). "After years of stalled attempts, Omaha is on track to build a streetcar". Omaha World-Herald. Retrieved January 1, 2022.
  5. ^ Jensen, Steven; Bisson, Douglas (February 5, 2010). "Downtown Omaha 2030 Master Plan: Creative Resolution to Unique Challenges" (PDF). newpartners.org. Archived (PDF) from the original on July 6, 2010. Retrieved May 19, 2023.
  6. ^ Suttle, Jim (2010). "Omaha Master Plan - Transportation Element" (PDF). cityofomaha.org. Archived (PDF) from the original on November 12, 2021. Retrieved May 19, 2023.
  7. ^ a b "2014 TIGER Grant Application" (PDF). ometro.com. April 25, 2014. pp. 23–48. Archived (PDF) from the original on March 18, 2023. Retrieved May 19, 2023.
  8. ^ O'Toole, Randal (June 14, 2012). "The Great Streetcar Conspiracy". Cato Institute Policy Analysis No. 699. SSRN 2226591 – via SSRN.
  9. ^ "2014 TIGER Application Appendix A: Benefit-Cost Analysis" (PDF). ometro.com. April 2014. pp. 63–167. Archived (PDF) from the original on March 18, 2023. Retrieved May 19, 2023.
  10. ^ "2014 TIGER Application, Appendix A: Benefit-Cost Analysis" (PDF). ometro.com. April 2014. p. 76. Archived (PDF) from the original on March 18, 2023. Retrieved May 19, 2023.
  11. ^ Barth, Taylor (April 10, 2017). "Mayor Stothert calls for vote on streetcar". KETV. Archived from the original on May 7, 2023. Retrieved May 19, 2023.
  12. ^ "Vendor/Recipient Profile: Jean Stothert for Omaha". www.opensecrets.org. March 3, 2024. Archived from the original on March 3, 2024. Retrieved March 3, 2024.
  13. ^ O'Toole, Randal (June 14, 2012). "The Great Streetcar Conspiracy" (PDF). Policy Analysis. 699: 9.
  14. ^ "Tax Increment Financing". www.kutarock.com. September 2020. Archived from the original on September 30, 2020. Retrieved March 3, 2020.
  15. ^ Gaarder, Nancy; Ristau, Reece (June 29, 2021). "Omaha officials sought $8 million for streetcar but didn't get federal earmark". Omaha World-Herald. Archived from the original on June 29, 2021. Retrieved January 31, 2022.
  16. ^ "Total Mobility System - City of Omaha". www.cityofomaha.org. Retrieved January 31, 2022.
  17. ^ Gonzalez, Cindy (January 27, 2022). "Lawmakers object to TIF use for Omaha streetcar". Nebraska Examiner. Archived from the original on January 28, 2022. Retrieved March 3, 2024.
  18. ^ Rubin, Thomas (September 8, 2023). "Thomas A. Rubin Bio". Reason Foundation. Retrieved September 8, 2023.
  19. ^ Rubin, Thomas (December 6, 2022). "Presentation to the Omaha City Council re the Proposed Omaha Streetcar" (PDF). Omaha City Council. pp. 41–44. Archived (PDF) from the original on May 5, 2023. Retrieved September 8, 2023.
  20. ^ Rubin, Thomas (December 6, 2022). "Presentation to the Omaha City Council re the Proposed Omaha Streetcar" (PDF). Omaha City Council. pp. 1–6, 45–50. Archived (PDF) from the original on May 5, 2023. Retrieved September 8, 2023.
  21. ^ Rubin, Thomas (December 6, 2022). "Presentation to the Omaha City Council re the Proposed Omaha Streetcar" (PDF). Omaha City Council. pp. 7–13, 36–37, 54–60. Archived (PDF) from the original on May 5, 2023. Retrieved May 5, 2023.
  22. ^ a b c "Journal Record, City of Omaha City Council Meeting, Tuesday, December 13, 2022" (PDF). December 13, 2022. Archived from the original (PDF) on May 5, 2023.
  23. ^ Saikia, David (December 2, 2022). "Omaha Modern Streetcar Tax Increment Financing Analysis Preliminary Findings" (PDF). City of Omaha. Archived (PDF) from the original on March 3, 2024. Retrieved January 1, 2023.
  24. ^ Funk, Josh (December 29, 2022). "Warren Buffett breaks local politics vow to say not in my backyard to $306 million Omaha streetcar project". Fortune. Associated Press. Retrieved January 3, 2023.
  25. ^ "'Now is the time to do it': City of Omaha aims for operational streetcar system by 2026". KMTV. January 27, 2022. Retrieved January 31, 2022.
  26. ^ McLoon, Alex (June 12, 2023). "Another step for Omaha's streetcar: Officials plan to hire private company, unveil regulations for federal sign-off". KETV. p. 1. Archived from the original on June 12, 2023. Retrieved June 12, 2023.
  27. ^ Chapman, John (January 26, 2022). "Council Bluffs looks to link up with Omaha streetcar route". WOWT. Retrieved January 31, 2022.
  28. ^ Miller, Derek (December 12, 2022). "Evaluating and identifying future street car extensions" (PDF). City Clerk City of Omaha. Archived (PDF) from the original on July 1, 2023. Retrieved July 1, 2023.
  29. ^ Steve, Liewer (September 20, 2023). "Omaha's $440 million streetcar project kicks off with digging, lane closures on Farnam". Omaha Herald. Retrieved November 3, 2023.
  30. ^ Gonzalez, Cindy (June 18, 2024). "Price jumps for modern-day streetcar project in Nebraska's largest city". Nebraska Examiner. Archived from the original on June 19, 2024. Retrieved June 20, 2024.
  31. ^ Foley, Mike (September 10, 2024). "State Auditor Mike Foley Issues Informative Letter to the Nebraska Legislature Regarding the Use of Tax Increment Financing (TIF) and Its Impact on Property Taxes" (PDF). nebraska.gov. Retrieved September 3, 2025.
  32. ^ Foley, Mike (September 10, 2024). "September 10, 2024 TIF Letter" (PDF). auditors.nebraska.gov.
  33. ^ Hudson, Molly (December 9, 2024). "Omaha Streetcar: expect more lane closures as construction ramps up in 2025". KMTV. Archived from the original on December 10, 2024. Retrieved June 23, 2025.
  34. ^ First Alert 6 staff reports (February 26, 2025). "Election 2025: Mayoral candidate Mike McDonnell attacks Omaha Streetcar plan". WOWT. Archived from the original on February 26, 2025. Retrieved February 26, 2025.{{cite news}}: CS1 maint: numeric names: authors list (link)
  35. ^ Wade, Jessica (September 3, 2025). "Costs climb and contention grows as MUD, City of Omaha tackle utility work for streetcar". The Reader. Archived from the original on September 4, 2025. Retrieved September 3, 2025.
  36. ^ Ewing, John (September 11, 2025). "City of Omaha Capital Improvement Program" (PDF). City of Omaha. p. 34. Archived (PDF) from the original on February 25, 2026. Retrieved February 25, 2026.
  37. ^ Dowding, James (August 26, 2025). "Annual Budget For Calendar Year 2026" (PDF). City of Omaha. p. 46. Archived (PDF) from the original on February 25, 2026. Retrieved February 25, 2026.
  38. ^ Butler, Elizabeth (November 17, 2025). "Minutes for the Omaha Streetcar Authority (OSA) Monday, November 17, 2025 At 1330 PM" (PDF). City of Omaha. p. 2. Archived (PDF) from the original on February 25, 2026. Retrieved February 25, 2026.
  39. ^ a b Butler, Elizabeth (February 24, 2026). "CITY OF OMAHA CITY COUNCIL AGENDA TUESDAY, FEBRUARY 24, 2026" (PDF). City of Omaha. p. 8. Archived (PDF) from the original on February 24, 2026. Retrieved February 25, 2026.
  40. ^ DOTComm (February 24, 2026). Omaha Nebraska City Council meeting February 24, 2026. Retrieved February 25, 2026 – via YouTube.
  41. ^ Baker, Elizabeth (February 24, 2026). Omaha Nebraska City Council meeting February 24, 2026 (Video). Event occurs at 49:29. Archived from the original on February 25, 2026. Retrieved February 25, 2026 – via YouTube.
  42. ^ a b Butler, Elizabeth (December 19, 2023). "JOURNAL RECORD CITY OF OMAHA CITY COUNCIL MEETING TUESDAY, DECEMBER 19, 2023" (PDF). City of Omaha. Archived (PDF) from the original on February 25, 2026. Retrieved February 25, 2026.
  43. ^ Butler, Elizabeth (July 29, 2025). "JOURNAL RECORD CITY OF OMAHA CITY COUNCIL MEETING TUESDAY, JULY 29, 2025" (PDF). City of Omaha. Retrieved February 25, 2026.{{cite web}}: CS1 maint: url-status (link)
  44. ^ Butler, Elizabeth (February 24, 2026). Omaha Nebraska City Council meeting February 24, 2026 (Video). Event occurs at 52:30. Retrieved February 25, 2026 – via YouTube.
  45. ^ "Brinker Harding | Experts | Colliers". www.colliers.com. Archived from the original on January 31, 2023. Retrieved February 25, 2026.
  46. ^ Dvorak, Gina (February 2, 2024). "Omaha streetcar open house set for Feb. 22". www.wowt.com. Retrieved May 16, 2024.
  47. ^ McLoon, Alex (May 14, 2024). "Omaha streetcar update: Vehicle builder approved, bridge work needed". KETV. Retrieved May 16, 2024.
[edit]
Retrieved from "https://en.wikipedia.org/w/index.php?title=Omaha_Streetcar&oldid=1340499422"