Omaha Streetcar

Omaha Streetcar
Overview
StatusUnder construction
OwnerCity of Omaha, Nebraska
LocaleOmaha, Nebraska
Stations13
Service
TypeStreetcar
Services1
History
Planned opening2027
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 planned streetcar system in Omaha, Nebraska. It is estimated to be completed in 2027.

History

Background

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.[1][2] By 1955, the city closed its streetcar system in favor of buses.[3]

Planning and development

In 2009, the City of Omaha and Heritage Services developed a Downtown Omaha Masterplan to improve the Omaha downtown area by 2030.[4] 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.[5] In 2013 as part of a central Omaha transit analysis, SB Friedman Development Advisors forecast central Omaha development impacts from improved transit.[6] The Friedman analysis compared streetcar projects from Portland, Seattle, and Tampa to BRT alternatives from Cleveland and Kansas, estimating the streetcar increases development by $1 billion and the BRT alternative by $262 million.[6] 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.[7] 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.[8]

2014 Central Omaha Transit Alternatives Analysis Final Screening Summary[9]
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."[10] 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).[11] [12] [13]

Representative Don Bacon was unsuccessful in obtaining an $8 million earmark for the project in 2021.[14]

In 2022, a revised plan was announced by Mayor Jean Stothert and the Greater Omaha Chamber of Commerce's Urban Core Committee.[15]

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.”[16]

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.[17][18] 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.[19] 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.[20] 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.[21] 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. [22] 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.[23]

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.[24] 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.[25] 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.[26][27]

Utility relocation work along the route began in September 2023.[28]

See also

References

  1. ^ "Militia in Omaha After Fatal Riot". The New York Times. June 16, 1935. p. 1. Retrieved January 1, 2022.
  2. ^ "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.
  3. ^ 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.
  4. ^ 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.
  5. ^ Suttle, Jim (2010). "Omaha Master Plan - Transportation Element" (PDF). cityofomaha.org. Archived (PDF) from the original on November 12, 2021. Retrieved May 19, 2023.
  6. ^ 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.
  7. ^ O'Toole, Randal (June 14, 2012). "The Great Streetcar Conspiracy". Cato Institute Policy Analysis No. 699. SSRN 2226591 – via SSRN.
  8. ^ "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.
  9. ^ "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.
  10. ^ 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.
  11. ^ "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.
  12. ^ O'Toole, Randal (June 14, 2012). "The Great Streetcar Conspiracy" (PDF). Policy Analysis. 699: 9.
  13. ^ "Tax Increment Financing". www.kutarock.com. September 2020. Archived from the original on September 30, 2020. Retrieved March 3, 2020.
  14. ^ 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.
  15. ^ "Total Mobility System - City of Omaha". www.cityofomaha.org. Retrieved January 31, 2022.
  16. ^ 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.
  17. ^ Rubin, Thomas (September 8, 2023). "Thomas A. Rubin Bio". Reason Foundation. Retrieved September 8, 2023.
  18. ^ 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.
  19. ^ 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.
  20. ^ 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.
  21. ^ "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.
  22. ^ 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.
  23. ^ 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.
  24. ^ "'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.
  25. ^ 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.
  26. ^ Chapman, John (January 26, 2022). "Council Bluffs looks to link up with Omaha streetcar route". WOWT. Retrieved January 31, 2022.
  27. ^ 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.
  28. ^ 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.

External links

  • Official Streetcar Website
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