A sinkhole near 38th and Farnam streets. (Jessica Wade/The Reader)

Funds to demolish or repair a building along the Omaha streetcar route that partially collapsed in June would come from the city’s streetcar fund.

The former Brother’s Lounge cocktail bar at 3810 Farnam St. experienced a foundational collapse amid heavy rainfall and streetcar construction. Steve Jensen, a longtime city planner and interim director of the streetcar authority, said the city of Omaha is still investigating what factors may have contributed to the collapse.

“Until (the investigation) is complete it is not possible to apportion liability,” Jensen said in an emailed statement. “That process will take time. A final settlement of responsibility and final costs will be determined later.”

In a Facebook post Tuesday, Brother’s Lounge shared concerns that a tarp covering the hole wouldn’t be enough to keep out expected rain.

“We are not contractors nor allowed on property. The night photos are from 3am August 5th last time tarp collapsed from the rain as it always does,” the post stated.

A cost estimate is underway, Jensen said. It’s now up to the owners of the vacant structure in Blackstone whether to demolish or repair the building.

“We understand that the incident has impacted the building owners,” Jensen said. “It is critical to get the issue resolved so the site can be returned to safe conditions and sidewalk access restored.”

Jessica Wade is an Omaha-based senior reporter with Nebraska Public Media, focusing on Omaha coverage for The Reader and El Perico. A native of eastern Nebraska, she previously reported on South Carolina's...