Rethinking Streetcar Proposal

Funding, Angered Citizens, and Idiots.

I fully appreciate why much of Omaha hates the idea of a streetcar. Omaha has plenty of bad experience and exposure to idiotic public transportation systems. Most of Omaha is not well served by public transportation particularly west of 72nd Street.

However, there is a time and place for public transportation to alleviate congested areas where too many cars and parking lots can cause a problem. Downtown Omaha has a lot of insufficiently used parking space which obstructs development. A church has a parking lot, but only needs it on Sunday. A bar has a parking lot but only needs it on Friday and Saturday nights. A bank has a parking lot but only needs it during daytime weekday hours. This means there is lots of under utilized space.

The City addresses this with the efficiency of public garages which encourages development of such areas, but in doing so, traffic congestion is a problem. I understand this problem because I am familiar with the hospitality industry, and have had to advise customers to become familiar with local transportation options before booking a hotel or airline. Location and transportation are central to what travelers must consider. Large urban cities have to contend with such problems and as Omaha grows, it must do the same. Yet, many of the advocates for the streetcar fail to demonstrate this problem or the need to resolve it. The current advocates sound like a bunch of idealistic spectators pushing a get-rich-quick scam which only hardens opposition to the streetcar plan. Sorry, streetcars do not drive growth, but alleviate congestion problems.

Here is why so many are skeptical. Omaha Metro Transit receives 70 percent of their funding from Douglas County taxpayers but the system goes into Sarpy County and Iowa, while at the same time, no student at Westside or Burke High schools can take a public bus to school. This means the real argument comes down to who funds what as people do not want to fund freeloaders. The advocates of the streetcar could relieve the concerns of skeptics if they called upon the Unicameral to remove Omaha Metro Transit from the property tax system, just as the Unicameral did for the Metropolitan Community Colleges. However, I sense the advocates are rather myopic about what their opponents think. The Omaha Metro Transit authority is why so many have a jaundice eye about a streetcar system.

Also, since the streetcar operation is to be funded by parking fees, the City needs to find alternative funding for public parking garages. I think the City should sell naming rights for such parking facilities and/or create vast advertising capabilities on such buildings. Some may scoff at such ideas but considering how frequently public parking garages are used, the advertising potential is strong. This revenue will help keep  parking prices in check while making certain there are funds to maintain the garages.
 
Also, the City should lower the 5.5 percent hotel occupancy tax by a half to a full one percent and instead impose a new $2 per room per night tax specifically to fund the streetcar.. This will improve the revenue stream for the streetcar development. Also, this way every visitor is charged the same amount no matter what is happening in the City. At the same time, it will draw travelers attention to what Omaha is doing with transportation. Make them pay and they will show up! Also, riders should be able to tip for their ride on the streetcar if they wish.

However, this means revising City ordinances, particularly this one which has not been changed in some time. It still mentions Rosenblatt Stadium! Also, the tax is actually 5.5 percent.

 Please note, this fee can be revised later, if the City does not forget it exists as it has.

Yet, I am still cynical as to where this is all going. The digital economy is still unrolling with all of its potential and power. Eventually, someone is going to figure out how to subsidize Uber and Lyft drivers and turn the whole public transportation system on its head.  Also, many people are fleeing urban areas so the public is right to be wary of the streetcar’s supposed potential, and longevity.