The City of Omaha has constructed a paid parking operation over the past decade, investing $415 million in garages—a sum nearly equal to the $421 million allocated for the downtown streetcar. These parking structures serve as the financial foundation for the transit system, with fees covering bond repayments and operational expenses.
A central component of the strategy is a 15-story garage adjacent to Mutual of Omaha’s new downtown headquarters. Nearby, another garage is under construction close to a residential complex. On the opposite side of Douglas Street, a decades-old structure completes a parking network. Combined, these projects will add 3,386 spaces to the city’s downtown inventory, all managed by Park Omaha, the municipal parking division.
Since 2022, Park Omaha has increased downtown and midtown capacity by nearly 5,000 spots, with an additional 5,800 spaces planned. The expansion extends paid parking into the Crossroads district, where three new garages are proposed. The initiative consolidates parking near streetcar stops to create space for tax-generating development.
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Balancing parking demand with urban growth
Jennifer Taylor, deputy city attorney, explained that the city aims to manage parking efficiently rather than compete with private providers. “We don’t want to have to compete with private entities providing parking because … it’s a waste of space.”
The transition from free street parking to paid garages presents challenges. Many residents expect free curb spots, requiring a cultural shift toward accepting paid alternatives. Urban planners describe this as essential for denser, transit-oriented growth.
Kene Okigbo, director of Omaha by Design, noted the city must balance past policies, current needs, and future goals simultaneously. “Park Omaha has got this herculean task … of having to live in the past, be in the present while setting us up for the future,” he said. “It is almost impossible, because some of us will never stop living in the past, some of us can only be concerned with the present, and then some of us are stuck dreaming of the most idealistic future.”
Critics argue the strategy contradicts transit goals. Tony Jordan, president of the Parking Reform Network, questioned how encouraging paid parking aligns with promoting car-free living. “If you’re betting on everyone parking in all these stalls, then how does that square with trying to add public transit like the streetcar?” he said. “You’re kind of betting against yourself in this strategy.”
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From deficits to transit-aligned parking strategy
The city’s parking strategy began in 1997 with a $20 million investment in two garages near First National Bank of Omaha, leased at discounted rates. Four years later, another $17.5 million garage was built to retain Union Pacific’s downtown presence. Initially, the approach prioritized meeting business demands, but it led to inefficient land use and persistent deficits.
By 2013, the city consolidated parking under Public Works and adjusted fees. Metered spots became paid after 5 p.m., and garage rates were recalibrated to balance demand. These changes increased usage, reduced congestion, and stabilized revenues. However, excess parking still occupied valuable land.
The streetcar was intended to address this issue by clustering garages along transit corridors, allowing surface lots to be repurposed for housing and offices. Developers now view parking as a secondary consideration rather than a requirement. A new streetcar line paired with high-rise parking garages offered the solution, city leaders thought. GreenSlate Development recently announced it will turn a vacant parking lot at 24th and Dodge streets into 186 apartment units. The nearby transit and city parking options allow the company to build less on-site parking, which translates to cheaper rents for tenants, said company president Scott Dobbe.
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Rising fees and lingering skepticism over costs
Opposition remains. Robert Maxey and others reject paid parking entirely, while concerns persist about whether the streetcar can succeed if riders must pay to park. The financial plan depends on doubling parking revenue—from $15.5 million in 2025 to $31.1 million in 2026—through expansion and rate adjustments. At one downtown garage, monthly fees will rise from $82.50 to $125 in November due to high demand.
Hannah Adeponu, the parking and mobility manager, emphasized that the city’s goal is not private-sector profits. With plans for 14,000+ garage spots and 4,500 metered spaces, the question remains whether Omaha can reconcile its parking ambitions with transit objectives.
The next phase focuses on maximizing garage utilization. At the Mutual of Omaha tower, the same spot may serve a weekday employee, an evening concertgoer, and a weekend resident from nearby apartments. This rotational approach ensures no space remains unused. The city envisions garages as dynamic hubs rather than fixed assets tied to single purposes.
