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Omaha Streetcar Authority approves $4.5 million incentive to speed up construction

Omaha Streetcar Authority approves $4.5 million incentive to speed up construction
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OMAHA, Neb. (KMTV) — Omaha Streetcar Authority increases construction incentives to $4.5M to speed up work. Business owners hope for faster completion.

  • "I don't know that's a huge leap hopefully that will incentivize them to work a little faster, you know, they can pay people overtime or get more people to do the work," said the owner of The Reading Room.
  • The city says some parts of the work have cost less than expected.
  • They're using that saved money to pay for these extra bonuses without increasing the final price tag.

BROADCAST TRANSCRIPT:

The Omaha Streetcar Authority board is considering a multimillion-dollar incentive package aimed at accelerating construction along the streetcar route, bringing hope to business owners who have endured months of disruption.

At 10th and Capitol streets, businesses like Nosh Restaurant and Wine Lounge have grown accustomed to the constant noise of streetcar construction.

"Overall, I know that it's going to be really great for the city. It's just a headache right now. Unfortunately," said Jamie Costine, owner of Nosh Restaurant.

To speed up progress and meet project deadlines, the Omaha Streetcar Authority has significantly increased bonuses for Hawkins Construction, the company currently working on the section along Harney and 10th streets.

"I know 10th Capitol, that area, they definitely need it. It's a mess over there. Yeah, you just can't get around anywhere," said Sam Morley, owner of The Reading Room.

Hawkins Construction could now receive incentive payments up to $4.5 million. The current maximum bonus was set at $500,000, making this a $4 million increase.

"We want to get this project done on time and on budget so that the people will be able to enjoy it in the fall of 2028. So it's critically important that we make sure that happens," said Mayor John Ewing.

"I don't know that's a huge leap hopefully that will incentivize them to work a little faster, you know, they can pay people overtime or get more people to do the work," Morley said.

Public Works officials say the incentive is designed to accelerate utility work so a different construction company can install rails in time for streetcar vehicles to be tested when they arrive in 2027.

The city says some parts of the work have cost less than expected, and they're using that saved money to pay for these extra bonuses without increasing the final price tag.

"Now they just need to give us our parking spots back. So the fastest that they're done here, I think the fastest that everybody will be able to, um, like benefit from it," Costine said.