Costs climb and contention grows as MUD, City of Omaha tackle utility work for streetcar

Years in and miles to go, the City of Omaha and Metropolitan Utilities District are at odds over a payment plan for an increasingly expensive streetcar project.

The project, now estimated at $421 million, requires significant construction work by MUD to replace or relocate gas and water lines along the 3.2-mile route. The price tag of that work has more than doubled beyond early cost estimates and has added to growing tension between the utility district and city.

MUD seeks a payment plan that will protect ratepayers and the utility district from shouldering a significant increase in streetcar-related construction costs. The city has called for a way to monitor MUD’s streetcar expenses, alleging city staff was blindsided by the cost of the utility district’s first phases of work…

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