OMAHA, Neb. (KMTV) — New estimates presented Tuesday show the projected cost for the streetcar system in Omaha will be nearly $460 million. An increase of about 50% from the price tag presented in 2022.
- About $389 million of the total will come from the streetcar bond approved by the city council.
- OPPD, MUD, NDOT and the developers will kick in the other $70 million.
- Watch the video to hear from Mayor Jean Stothert about the increase in cost and revenue.
BROADCAST TRANSCRIPT:
"The initial bond cost estimate of $306 million was based on the two-year conceptual design or really the zero percent actual design," said Omaha Mayor Jean Stothert.
That $460 million total includes work to build the rails and infrastructure, and to buy the streetcars themselves. It also includes making upgrades to the bridges crossing I-480, sewer improvements and upgrading MUD and OPPD utilities in the path of the streetcar.
"The idea was once we've got this opened up and we have torn it up and we are doing all this other work, we also decided to do the work on the sewers and Bob can talk about that, but the idea was let’s get this out of the way now because it's never going to be cheaper or easier than today," said Steve Jensen, planning and design consultant for the City of Omaha.
About $389 million of the total will come from the streetcar bond approved by the city council.
OPPD, MUD, NDOT and the developers will kick in the other $70 million.
Mayor Stothert says those increased costs, were expected and that she believes they will be offset by increased tax revenue that comes from development along the route.
"By the end of this year, more than $1.3 billion in new development is expected to be underway, which will generate even more revenue than necessary to pay for the streetcar," Stothert said.
There are 11 projects included on the list without a name, Mayor Stothert couldn’t yet share what those developments would be.
"Those are all in the planning stages, and so I think you are going to hear about them really soon,” Stothert said.
This press conference comes just two weeks after Mayor Stothert responded to State Senator Mike McDonnell in a letter after he sent a letter wanting this project to go on the ballot in November.
"I have said repeatedly and consistently since the beginning of us starting to talk about this that it does not need to go on a ballot for a vote," Stothert said.
Reporter Molly Hudson met with Senator McDonnell, after the press conference, he was not surprised by the price increase.
"That's another reason we should vote, but I want a fair vote, I want the people to have all the information in front of them and we can do that, we have until November 5,” McDonnell said.
But Mayor Jean Stothert emphasized that because of the way it is being paid for, it does not require a vote.
These cost and revenue changes are with the design for the streetcar being at about 90% complete.
