Following weeks of tension between the two sides and facing a likely finger-pointing public hearing in Lincoln today, Omaha Mayor Jean Stothert and the Metropolitan Utilities District have cut a last-minute streetcar deal.

According to the agreement, MUD—without raising rates—will  pay $7.6 million of an estimated $20.5 million in gas and water line relocations due to the construction of the $360 million Streetcar, the city will pay the rest.

In addition, the two sides agree that neither will “publicly disparage” each other.

Over the past two months, plenty of ill-will has been shared.

As we’ve reported, the dispute over who’s paying to rip up the streets where the streetcar will run found this statement from Stothert’s office in early December: "Many of MUD's lines in the urban core are 100-plus years old and will need to be replaced with or without the streetcar." Just a few days ago MUD reported a water main “down for repairs” along Farnam St. between Turner Blvd and 33rd St., part of the streetcar’s western route.

Last month Stothert and Dave Friend, a member of the MUD Board of Directors had clearly different views of the squabble. 

Mayor Jean Stothert, Omaha (R) KFAB Radio January 11, 2023: “They (MUD) gave us an estimate of about $20.5 million that they say it will cost them to replace the lines because of the streetcar. We have yet to get any information from them as how they came up with this number. I’m very, very confident that we can come up with a resolution with MUD that they will not have to raise their rates. They shouldn’t be raising their rates because of the streetcar.”

Dave Friend, MUD Board of Directors, KFAB Radio January 12, 2023: “We’ve already met them part way and apparently, they want us to pay the whole $20.5 million. Here’s what I can tell you, Scott. ‘That ain’t going to happen.’” 

Today’s deal was announced just hours before a hearing at the State Capitol on legislation that, if enacted into law, would have found the city footing the entire cost.

According to State Sen. Lou Ann Linehan’s proposal (LB691), “If a streetcar or fixed rail system is constructed in a city, then the owner would have to pay for all water utility and natural gas work required for its construction.”

Linehan tells News Channel Nebraska she will now indefinitely postpone the bill—along with a companion piece, LB693—which effectively kills both pieces of legislation.

“We pledged to work with M.U.D. to find a fair compromise,” said Mayor Jean Stothert. “This agreement is the result of months of negotiation to develop a cost-sharing plan for the utility work along the streetcar route and protect M.U.D.’s customers from a rate increase."

“Through diligence and cooperation, we have found infrastructure that appropriately meets the guidelines of our risk assessment process. We always knew that likelihood existed,” said M.U.D. President Mark Doyle.