Contract law may spur growth

Small businesses, especially those that are situated in and hiring people in Omaha's poorest neighborhoods, will get an edge in landing city contracts under an ordinance approved today.

The Omaha City Council unanimously signed off on the new program during its meeting. Mayor Jim Suttle backs the plan.

It is seen as a way to spur economic growth in areas of the city with high unemployment. It will replace an ordinance that gave preference to companies owned by minorities or women.

For nearly a decade, Omaha gave hiring preferences to small businesses, with priority generally being given to minority- and women-owned enterprises. The program was declared unconstitutional after Nebraska voters approved a ban on affirmative action in 2008.

Since then, City Council members and others have struggled to find a replacement. In the waning days of his administration, Mayor Mike Fahey vetoed a proposal that critics said would effectively end the program.

The new ordinance will give preference for certain city contracts to all small or emerging businesses in the city.

But special priority would be given to those small businesses that are situated in areas where the city has a 30 percent or higher poverty level and that employ about 30 percent of their work force from that area. That would include areas of north and south Omaha.