The City of Omaha, with City Council approval, will purchase a vacant building that partially collapsed along the streetcar route.
A large void opened in the Blackstone neighborhood June 21 when a foundation wall collapsed, swallowing a sidewalk and part of the building at 3810 and 3812 Farnam St. The hole remained for weeks while the city awaited a decision from the building owners on whether to repair or demolish the property.
Under an agreement announced Thursday, the city will offer a $700,000 settlement, which would be paid out of its judgment fund. Kiewit Infrastructure Co. would contribute $200,000 to the city to offset Omaha Streetcar project costs.
The total represents a $675,000 property appraisal combined with $25,000 to cover the owners’ expenses, according to a press release.
“Our priority since day one has been a solution that is efficient and fair to the property owners and local businesses in the neighborhood,” said Mayor John Ewing. “We also want to keep the Omaha Streetcar project moving forward and on time.”
If approved by the City Council on Tuesday, the city would acquire the property, contract for the demolition of the existing structure and prepare the site for redevelopment. A demolition contract would be awarded at a later date.
Property owners Trey Lalley and Lallaya Lalley are the longtime co-owners of the Brothers Lounge in Omaha’s Blackstone District, which they took over in 1998 and closed in 2021.
In a press release, the Lalleys said they were glad to have the situation resolved.
“This is a relief,” Trey Lalley said. “The settlement is fair, prompt and allows us to close this chapter.”