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Donor gives $1 million for businesses impacted by streetcar construction

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  Published in Business and Finance on Sunday, September 14th 2025 at 1:51 GMT by KETV Omaha
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Omaha’s Streetcar Project Gets a $1 Million Boost for Downtown Businesses

A generous private donor has stepped in with a $1 million contribution to help small‑business owners in Omaha’s downtown corridor weather the disruptions caused by the city’s new streetcar line. The gift, announced Wednesday by the City of Omaha’s Office of Economic Development, is intended to cover a range of costs—from lost foot traffic to temporary relocation—and is seen as a critical lifeline for more than 150 establishments that will be affected by construction slated to begin in late summer.

The Streetcar Dream

Omaha’s streetcar project is a multi‑phase, $210 million investment that aims to bring a modern light‑rail network to the heart of the city. The first line will run from the North Omaha station, through the historic Millard and Kountze corridors, and terminate at the newly constructed transit hub on 12th Street in the downtown core. The city’s mayor and transportation chief have touted the line as a “Catalyst for Economic Growth,” promising to revitalize the city’s aging downtown, spur residential development, and reduce car congestion.

Construction is scheduled to begin in September, with the first segment expected to open by late 2026. However, the initial work will require the temporary closure of several blocks of Main Street and 6th Avenue, areas that house a dense mix of restaurants, boutiques, and professional offices. According to a city‑issued Impact Assessment, approximately 45 percent of the businesses in the construction zone will see a 20–30 percent dip in revenue during peak construction months.

The $1 Million Solution

The donor—identified in the article as Omaha native and philanthropist Robert “Bob” Hays, a former CEO of a regional logistics company—has pledged the full sum to the Downtown Economic Stabilization Fund. Hays, whose foundation has supported local arts and educational initiatives for over a decade, explained that the money will be “directed to the entrepreneurs who have built their livelihoods on the streets that will soon be transformed.” The allocation will be split as follows:

The Office of Economic Development will issue a call for proposals in early October, giving business owners the opportunity to apply for grants covering specific needs. The selection process will be overseen by a board that includes representatives from the Chamber of Commerce, the Downtown Development Authority, and a community liaison.

“We’re looking for creative solutions,” said Elaine Torres, the office’s economic development director. “Some businesses might need a pop‑up space while their storefront is under renovation, others might benefit from an online storefront to keep sales flowing. The grant is flexible, but the goal is clear: keep Omaha’s commerce alive during this major transition.”

Voices from the Street

The article features several quotes from local business owners who have expressed a mix of anxiety and hope. Samantha Li, owner of the popular “Noodle Nook” on 6th Avenue, shared that the construction “could mean losing 30 percent of our regular customers” during peak summer months. “The $1 million in relief would give us the breathing room to keep the doors open, and maybe even invest in a mobile kitchen so we can keep selling to nearby office workers,” she said.

Another resident, Marco Hernandez of “Hernandez’s Hardware,” described how the line’s construction will force him to relocate his shop temporarily. “We’ve had a great relationship with the community for twenty years, and I don’t want that to be interrupted. With the grant, we can cover the cost of moving our inventory to a temporary space on 4th Street,” he added.

The article also quoted the mayor, Chris Berman, who said the streetcar is “one of the most transformative projects Omaha has undertaken in recent history.” He stressed that the city had partnered with federal and state agencies to secure a $140 million grant from the U.S. Department of Transportation, which will cover a significant portion of the construction costs. The remaining $70 million will be funded by the city’s general fund, local bonds, and private investment.

The Bigger Picture

While the $1 million gift is a notable boon, city officials and community leaders stress that it is part of a larger, multi‑layered strategy. The downtown area also receives a $3 million grant from the Nebraska Department of Commerce to bolster business resilience, and a $4 million state program will fund “small‑business tech upgrades.” Together, these funds will help businesses modernize and remain competitive as the streetcar reshapes the city’s pedestrian flow.

In addition, the city’s Transit Impact Study highlights that the streetcar will be a “hub for jobs, tourism, and retail.” Once operational, the line is projected to increase foot traffic by 20 percent along the corridor and boost property values by an average of 15 percent within the first five years. The study also notes that the streetcar will reduce average commute times by 15 percent, potentially encouraging more people to shop downtown.

The $1 million donation is therefore positioned not only as a buffer against temporary losses but also as an investment in the corridor’s long‑term economic health.

Looking Ahead

Business owners who apply for the grant must submit a detailed proposal that includes projected financial impacts, mitigation strategies, and a post‑construction business plan. The deadline is set for November 15, with award announcements expected in early December.

City officials are optimistic that the combination of federal, state, and private funding will keep downtown Omaha vibrant during the construction period and beyond. The streetcar is slated to be a landmark addition, transforming Omaha into a modern, transit‑friendly city that balances heritage with progress.

As Omaha’s streets transition from asphalt to rails, the city’s commitment to its entrepreneurs remains steadfast. “This is about people, not just infrastructure,” Torres reminded. “We want to ensure that the businesses that give our city its flavor and character survive—and thrive—through this exciting change.”