OMAHA — The Omaha City Council gave the nod Tuesday to a measure that empowers the city to force acquisition of private property, if necessary, to build out the multimillion-dollar streetcar route.

The city’s Public Works director said, however, that the city does not see any need to use the often-controversial power of eminent domain.

Bob Stubbe described the measure that passed 6-1 as a “necessity ordinance” that gives the city authority to negotiate with private owners for, in this case, smaller pieces of land that allow crews access to construct the streetcar system. The route is set to run between downtown and midtown Omaha.

He said the bulk would be parcels the city would need only temporarily.

Appraisals will be done, Stubbe said, prior to any negotiations with a property owner.

Adopted 6-1

Under eminent domain, a local government has authority to take private property for public use, and owners are to be paid fair market value.

“We do not see a need to use the power of eminent domain,” said Stubbe, adding that such an ordinance has been standard procedure when the city has worked on other road projects.

“This will not be a taking of people’s properties,” said Councilman Brinker Harding.

A June 25 public hearing on the ordinance did not draw any speakers. At least one resident submitted a letter in opposition.

On Tuesday, Councilwoman Juanita Johnson re-opened the public hearing, saying she wanted to increase transparency in city affairs.

Johnson ultimately was the lone council member who voted against the measure. That aligns with her ongoing stance on the streetcar project, which she said “is not going to do anything for marginalized communities.”

Bumpy Road

The ordinance is the latest development in what has been an often bumpy road to getting the modern-day streetcar project up and running in 2027.

One month ago, city officials announced that the projected price tag had grown from an earlier estimate of $306 million.

The total cost to prepare the corridor, buy cars and construct necessary facilities now is expected to be $459 million.

The City of Omaha expects to tap $389 million in bond revenue for the streetcar project. That debt is to be paid off with a public incentive called tax-increment financing, or TIF.

City leaders say anticipated new development and higher property values sparked by the streetcar should produce enough TIF revenue to pay off the bonds without a tax rate increase.

The remaining $70 million in street-car related infrastructure costs are to be covered by other sources, including public utilities and the city’s sewer maintenance fees.

City To Buy Mutual Of Omaha Garages

Many business leaders and the Greater Omaha Chamber, along with Omaha Mayor Jean Stothert, have championed the streetcar project as a way to accelerate development and to help retain and lure talent to the city.

Mutual of Omaha said its decision to construct the $600 million office high-rise currently underway at 15th and Farnam Streets hinged upon the streetcar materializing.

Part of the plan called for the City of Omaha to buy three parking garages that the insurance company owns at its existing midtown campus.

The City Council held a public hearing Tuesday on that $52.3 million sale agreement. Approval is expected next week.

City representatives a few years ago estimated a price that dropped a bit following an independent consultant’s review of the garages. Jennifer Taylor of the City Law Department said the cost should be covered by parking revenues.

This story was published by Nebraska Examiner, an editorially independent newsroom providing a hard-hitting, daily flow of news. Read the original article: https://nebraskaexaminer.com/briefs/omaha-ordinance-allows-for-eminent-d...