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Omaha offers to pay to repair or demolish Blackstone building

Omaha is offering to pay to repair or demolish the vacant Brother's Lounge building after a June collapse left a hole in Blackstone.

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Omaha offers to pay for repair or demolition after Brother’s Lounge collapse in Blackstone

OMAHA, Neb. —

The city of Omaha has offered to pay to repair the damage or to demolish the vacant Brother’s Lounge building in Blackstone, according to a statement.

In June, a structural collapse left a hole in Blackstone at the Brother’s Lounge building near 38th and Farnam streets.

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In a statement, officials said the city is in negotiations with the owner’s representatives on the “path forward.”

READ MORE: Omaha officials say surrounding buildings safe, stable near Blackstone streetcar construction

Officials said an investigation into what led to the collapse is still in progress, adding “until it is complete it is not possible to apportion liability.”

Residents in Blackstone raise concerns about standing water in the streets during rainstorms

According to the city, a final settlement of responsibility and final costs will be decided at a later date.

As that process occurs, officials said the city has offered to pay using streetcar project funds to repair or demolish the building.

“Damage repair cost estimates and property valuation appraisals are underway. Once completed it is the City’s hope that the damage can either be repaired quickly or the building demolished and prepared for redevelopment,” the city said in a statement. “We understand that the incident has impacted the building owners. It is critical to get the issue resolved so the site can be returned to safe conditions and sidewalk access restored.”

READ MORE: Blackstone residents fear standing water near 38th and Farnam could threaten Colonial Hotel

Omaha Assistant Director of Public Works and City Engineer Austin Rowser said in June that the building’s foundation wall collapsed.

Earlier this month, Steve Jensen, deputy chief of staff for economic development for Omaha Mayor John Ewing Jr.’s office, said that they are monitoring the site for changes that could indicate concern for instability. Jensen said the surrounding buildings are safe and stable.

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3:16 am, Aug 26, 2026
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