- Omaha is offering to use streetcar project funds to pay for repairs or demolition of the Blackstone building that hosted Brothers Lounge
- A hole formed in June under the building and part of Farnam Street where construction for the Omaha Streetcar was underway
- Negotiations between the city and the building's owner are underway
BROADCAST TRANSCRIPT:
OMAHA, Neb. (KMTV) – The City of Omaha is offering to pay for the demolition or repair of a building in the Blackstone neighborhood. A hole formed in June underneath the building and part of Farnam Street where Omaha Streetcar construction was underway.
Omaha Streetcar Interim Director Steve Jensen said in a statement Wednesday the city is offering to use streetcar project funds to cover the cost of repairing or demolishing the building that formerly housed Brothers Lounge.
"It is the City's hope that the damage can either be repaired quickly or the building demolished and prepared for redevelopment," Jensen said in the statement. "The City is in negotiations with the owner's representatives on the path forward."
Trey Lalley, the co-owner of the building, told 3 News Now's Jeremy Fredricks on Wednesday evening that his lawyer is communicating with city attorneys and that the two sides are early in the process.
On Tuesday, Brothers Lounge posted on Facebook about the tarp covering the hole becoming loose. A spokesperson for Kiewit said in a statement that it is working with the city.
"The tarp has been installed and replaced multiple times at the City's direction to help address the environment," the Kiewit spokesperson said.
How the hole formed remains unknown. Jensen's statement says the city's investigation into what happened continues.
Statement from Omaha Streetcar Interim Director Steve Jensen:
"The following explanation is intended to help clarify the City's approach to the issue of the front building wall collapse at the vacant 3810 / 3812 Farnam building.
The City is in negotiations with the owner's representatives on the path forward. The investigation into the chain of events leading to the collapse is still in progress. Until it is complete it is not possible to apportion liability. That process will take time. A final settlement of responsibility and final costs will be determined later.
In the meantime, the city has offered to pay, from streetcar project funds, for either the cost to repair the damage or the demolition of the vacant building.
Damage repair cost estimates and property valuation appraisals are underway. Once completed it is the City's hope that the damage can either be repaired quickly or the building demolished and prepared for redevelopment.
We understand that the incident has impacted the building owners. It is critical to get the issue resolved so the site can be returned to safe conditions and sidewalk access restored."
Statement from Kiewit's spokesperson:
"Kiewit continues to work at the direction of the City of Omaha as it determines next steps for the 3810 Farnam site. We are coordinating closely with them regarding conditions at the building, including installing a tarp over the area. The tarp has been installed and replaced multiple times at the City's direction to help address the environment. At times, portions of the tarp have been moved by third parties to access and view the area. Entering or disturbing the protected area is neither safe nor recommended.
Importantly, the tarp is only one component of the measures being taken at the site and should not be viewed on its own as representing the full scope of the work underway involving the building and nearby area. Kiewit will continue to work with the City on this important issue.
For additional information regarding conditions at the site and next steps, we would refer you to the City of Omaha."
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