Omaha's $415 Million Parking Bet

The City of Omaha has committed $415 million to building and buying parking garages, an amount nearly equal to the $421 million pledged for its streetcar project. This financial parity places paid parking at the center of the city's downtown development strategy.

At the foot of Mutual of Omaha’s nearly complete downtown headquarters, a 15-floor garage with 15 floors awaits the company's move-in. Nearby, another garage rises next to a new apartment complex, and a decades-old structure completes a triangle of parking. Together, these structures hold 3,386 spots, all owned by the city.

City officials argue that centralizing parking in tall garages frees up ground-level land for tax-generating buildings. Deputy City Attorney Jennifer Taylor explained that the city wants to manage downtown parking effectively to avoid competing with private entities. She stated that leaving space empty for private lots is a waste.

In the last two years, Park Omaha added nearly 5,000 spots in downtown and midtown. Another 5,800 spots are under construction, extending paid parking to the Crossroads. When these projects finish next year, the city will own more than 14,000 garage spots east of 48th Street, in addition to over 4,500 metered street spots.

The largest cost driver is the deal with Mutual of Omaha. In 2022, the city agreed to buy 5,700 spots from the insurance company for about $152 million. This includes three garages with 3,600 spaces for $53 million and a new 2,200-spot garage for $99 million. The city will lease the new garage back to Mutual for $2.1 million a year during weekday business hours.

Transportation consultant Tom Rubin called the public money spent on Mutual "un-freaking-believable." Taylor countered that the negotiated prices were lower than the current cost of building new structures.

Critics worry that relying on car parking to fund transit undermines the streetcar's purpose. Tony Jordan, president of the Parking Reform Network, asked how betting on everyone parking in stalls squares with adding public transit. He suggested the city is betting against itself.

Urban designers note that changing driver habits will be difficult. Kene Okigbo of Omaha by Design described the task as herculean, requiring the city to balance past, present, and future needs. Hannah Adeponu, the city’s parking and mobility manager, said the goal is to ensure enough parking serves all downtown needs without forcing residents to abandon cars.

The financial plan depends on parking revenue doubling from $15.5 million in 2025 to $31.1 million in 2026. Adeponu attributed this jump to the rapid growth of the garage inventory. The city is considering rate increases to help pay off hundreds of millions in bonds used to build the garages.

A 250-spot garage off South 24th Street is slated to open next year. The city has also earmarked $115 million for three garages at the new Crossroads development west of 72nd and Dodge streets.