Keep light-rail opportunity on track for city, region

**begingri** · January-10-11, 11:08 PM

Matching funds, investors, design all key to the success of Woodward project

Free Press editorial

A planned light-rail system on Woodward in Detroit could jump-start a regional transit system, providing a foundation metro Detroit could build on after decades of detours and dead ends.

But the rail project can't move forward without match money from a consortium of private investors who have tentatively agreed to fund it. They include the Kresge Foundation and business leaders such as the Ilitch family, Quicken Loans founder Dan Gilbert and Compuware Chairman Peter Karmanos.

The consortium's financial commitment has been questioned lately by some observers, who say private investors aren't happy with project delays caused by federal environmental requirements, or with Detroit's new role as the lead agency.
So it was reassuring to hear Matthew Cullen, CEO of the M-1 Rail initiative, pour cold water on those reports. In an interview with the Free Press editorial page last week, Cullen said private investors remain fully committed, even though their role in the project has changed from owner-operators to investors with no direct say in governance.

"We embrace it," he said. "We just want to get it done, and we couldn't be more supportive of the project and Mayor Bing's leadership of it."

Cullen said he and other board members representing the investors will work with the city to ensure that the project's final plan, due later this year, is financially viable and meets investors' design expectations.

But he acknowledged that no one, including the private investors, should commit to a project that can't financially sustain itself. Investors will also consider the project's design. They want sufficient stops in the downtown area, for example, to generate pedestrian traffic and economic development there. Studies show that every $1 invested in mass transit generates up to $8 in transit-oriented development that could help rebuild and reshape Detroit.

Making the project financially viable poses challenges for the strapped city. To operate the rail system, Detroit could reallocate funding from its Department of Transportation, but weakening the city's already inadequate bus system would strand the quarter of all Detroit households that don't own vehicles -- a serious mistake.

City officials, working with private investors, the Michigan Department of Transportation and the Federal Transit Administration, hope to start construction on a rail line running from Hart Plaza to 8 Mile by the end of this year or early next year, following the conclusion of an environmental impact study. The 9.3-mile light-rail system would likely include electric rail cars and 10 to 13 ground-level stations in the downtown area. It could be running by 2014.

But the success of the Woodward Light Rail Project depends largely on how well the project's private and public bankrollers work together.
As the lead agency, the city must make that happen.

The private investors behind the M-1 Rail initiative propose to fund the first leg of the Woodward line, the 3.4 miles from Hart Plaza to the New Center. The City of Detroit would then use the roughly $125 million in private money invested in the project's first phase to leverage federal match funds to finish the line to 8 Mile.

Detroit seeks to secure about half of the $450 million needed to build the Woodward rail line from federal new-starts grants.

Still, many obstacles remain. The city hasn't developed a plan to pay for operating costs, which are projected to outstrip revenues initially by $10 million annually, or to cover the portion of the local match for federal dollars not covered by the private investors. The city must identify that money before the FTA, which requires a 20-year full funding plan for operations, approves funds for the project.

Even if the Woodward project meets all the benchmarks for new-starts funding, approval isn't certain. The feds must sort through many more proposals from around the country than it can fund. Unfortunately, many worthy transit projects don't get federal approval.
Another potential problem is the uncertainty surrounding the $125 million committed by investors. Some $20 million of that total is contingent upon the renewal of tax credits that expired in 2010. Investors also want the project to eventually become regional, a model also favored by the federal government.

Cullen said Mayor Dave Bing, too, supports a regional approach. To that end, the city ought to drop its shortsighted opposition to a Regional Transit Authority, which would drive the long-term success not only of the Detroit Woodward project but also of an emerging regional transit system that would benefit all of southeast Michigan -- and, perhaps, Detroit most of all.

None of these obstacles should prove fatal, however, given the commitment of the city, investors and federal government. Still, Bing and his administration need to keep investors at the table as the project moves forward. Making this a true public-private partnership would give this critical project the best shot at success.

The history of mass transit in southeast Michigan is littered with failures, including the missed opportunity in 1976 to secure $600 million in federal aid to build a light-rail system because the region couldn't agree on a plan.

Continued at: http://www.freep.com/article/20110109/OPINION01/101090454/Keep-light-rail-opportunity-on-track-for-city-region

**bailey** · January-11-11, 10:32 AM

So basically what this article is saying is that Light Rail on Woodward is still 5 -10 years away...if it gets off the ground at all.

**BrushStart** · January-11-11, 08:18 PM

It couldn't get any more ridiculous.

NorthEndere · January-12-11, 01:16 AM

I'm confused as to why this was even written. As far as I knew, the Environmental Impact Study JUST started a few months ago, and you can't do anything until it's completed. Doesn't sound like anything is stalled or changed, to me, unless the Free Press actually has proof of that.

**BrushStart** · January-12-11, 01:24 AM

Yeah, I just posted a podcast with Dave Bing that came out a few days ago and he was talking about light rail as if it were a sure thing, that they were going through the process, that the impact study would be done first quarter of 2011, and that construction would start end of this year. He said construction may take 2-3 years, but I'll be happy when they break ground. He was even talking about other phases of the light rail line. Sometimes I think the news just wants to stir the pot.

DetroitDad · January-12-11, 01:36 AM

My take was that this was a basic cutesy update, since some things have changed with the project recently. It also could be an attempt at maintaining public interest by supporters and backers, given that they apparently chose to make "on the record" comments at this point in time.

Once a project like this gets going, it's extremely important to keep the press updated and interested, in order to gain momentum among the public, and counter those who oppose it.

Originally Posted by NorthEnder

I'm confused as to why this was even written. As far as I knew, the Environmental Impact Study JUST started a few months ago, and you can't do anything until it's completed. Doesn't sound like anything is stalled or changed, to me, unless the Free Press actually has proof of that.

NorthEndere · January-12-11, 07:04 AM

Oh, I totally agree. This was probably the Freep's attempt to keep a spotlight on the project, but as seen in the very second post of this thread, they have to be very congnizant of their audience. Michigan [[my home state and the place I love like no other) seems to have some of the most pessimitic and miserable people this side of the Mississippi, that if left to their own devices don't seem to know how to digest subtle prodding like this, and when fed actual good news, they really can't keep this food down.

Woodward Light Rail is still very much on track. DOT didn't front the money for the EIS [[which was only originally going to evaluate the first phase, but now will evaluate the entire line), and isn't working with the city hand-in-hand, to have egg on its face. Not just any old project gets a visit by the DOT head.

The only way this thing stalls is if the private partners reneg over the next few months, because both the city and the feds are actively holding up their end of the baragain.

**rencense** · January-12-11, 09:03 AM

Well I really hope that the financing works out! My only concern is the private investors deciding that there's not a business case for light rail [[and as we know public transit is rarely self sustainable much less profitable) If it gets off the ground we'll need some type of transit authority to keep things funded, running, and expanding into the future.

One thing that I hope is resolved eventually is to expand the line 1 or 2 miles north of the city limits. While I'm not a big fan of Oakland county in general I hate to see places like ferndale and ro get lumped in with all the way-up-north sprawlships that will likely never be interested in transit [[even if they were I think there needs to be a certain level of population density to make it work.) RO and ferndale have a lot of people who enjoy somewhat urban living and I believe would use light rail to get downtown/WSU/etc and spend money in the CBD. I suppose I'm getting ahead of myself here I just figure that it may be worthwhile to spend a little more initially to start off with a larger user base. Whatever the case I'll celebrate when I see ground broken.

now how long do we think it will be til some assclown starts in on the whole magical choo-choo train to nowhere line?

**esp1986** · January-12-11, 10:02 AM

Rick Snyder has said a few things that really could help this project... 1) Reliable Transit [[other than cars) is essential to an economy's long term growth. 2) A regional business center [[Detroit) that is thriving. He has made both of these points a number of times, and despite being a Republican, appears willing to help the M-1 effort, possibly by providing a state subsidy when the time calls for it.

**bailey** · January-12-11, 11:11 AM

Originally Posted by esp1986

Rick Snyder has said a few things that really could help this project... 1) Reliable Transit [[other than cars) is essential to an economy's long term growth. 2) A regional business center [[Detroit) that is thriving. He has made both of these points a number of times, and despite being a Republican, appears willing to help the M-1 effort, possibly by providing a state subsidy when the time calls for it.

Rick Michigan doesn't get to do diddly unless the outstate and exurban republicans who now run everything says he can. There will be no help from Lansing on any thing Detroit related. especially something seen as a wasteful money pit. yes no transit system ever makes money...tell that to the Mackinaw Center--- they;ll be writing all legislation for the next 4 [[probably 8) years.

**rsa.313** · January-12-11, 11:34 AM

important to note that this is an "opinion" piece. IMO the ultimate motivation was a polite way of endorsing a regional transit authority.

the planning phases are on track [[forgive the pun). look for the Environmental Impact Study to be published around the end of the month.

also important to remember that the woodward light rail project is two phases. while the private funding is being leveraged for federal funding for both phases, their primary interest is seeing the first phase [[hart plaza to grand boulevard) completed. this will be completed first and may even be up and runnin in two years. the main doubts are the completion of the second phase.

currently there is a group of elected officials of the communities along woodward to show their support for rapid transit along woodward to maple road. look for a resolution to be published in the next month. there is support for rapid transit and/or extending the woodward light rail to birmingham. however this group is still in it's infancy [[pre-planning). also look for a response to this particular editorial from this group to be published in the paper this week.

**Zozo** · January-12-11, 02:12 PM

Originally Posted by rsa.313

also look for a response to this particular editorial from this group to be published in the paper this week.

Would you mind posting their response here in case I miss it?

**casscorridor** · January-12-11, 03:53 PM

I am positive the Woodward Light-Rail project to the fairgrounds will be completed. What I am unsure of is when there will be any extensions.

If the Woodward Line is extended, I guarantee you it won't go past Royal Oak. Birmingham is simply too far for such technology.

As far as a second line? I wouldn't count on it, at least not during this Snyder's governorship or Obama's presidency. Getting light-rail to Royal Oak is the probably the best we can do for now, but that is still a gamble.

For now, we should all make sure the the rail is completed to the Fairgrounds!!

Once people see the benefits of rail transit, future projects will be funded. But yeah, post-2016.

**Hypestyles** · January-12-11, 04:04 PM

Has Mark Hackel gone on record regarding light rail development in Macomb?

**bailey** · January-12-11, 04:09 PM

Originally Posted by casscorridor

Once people see the benefits of rail transit, future projects will be funded. But yeah, post-2016.

The problem being, the ones that need to be convinced about the benefits of rail transit don't live anywhere near the line and will likely never ride it.

**esp1986** · January-12-11, 04:35 PM

Originally Posted by bailey

The problem being, the ones that need to be convinced about the benefits of rail transit don't live anywhere near the line and will likely never ride it.

The densest part of this region in one corridor is undoubtedly Woodward, hence the reason it was picked. Problem is, most of that density is in a separate county. The elected 'leader' of that county doesn't believe his county should have to pay for it, despite the fact that there are a lot of young people in that area [[Royal Oak, specifically) who would make use of the line. The best other option would likely be a line that is entirely within Wayne County, or the proposed Michigan Avenue line.

Most people live directly between all of the arteries being considered for light rail... many between Michigan and Grand River, Grand River and Woodward, Woodward and Gratiot. The automobile and lack of transit in this area has spread people out more than most metro areas, as a result there are no areas that are significantly denser from a residential standpoint than others...

**Jimaz** · January-12-11, 04:55 PM

Originally Posted by Hypestyles

Has Mark Hackel gone on record regarding light rail development in Macomb?

Darn good question. I'd like to know too.

Where would it go? Hall Road? There certainly is a lot of unused land along Hall.

**bailey** · January-12-11, 04:58 PM

Originally Posted by Jimaz

Darn good question. I'd like to know too.

Where would it go? Hall Road? There certainly is a lot of unused land along Hall.

I cant find it now, but he did have a statement in the voter guide that was something like, "regional transit is a good idea, but we can't afford to support something that just served Detroit". IIRC, he's a BRT proponent.

**bailey** · January-12-11, 05:00 PM

Originally Posted by esp1986

The densest part of this region in one corridor is undoubtedly Woodward, hence the reason it was picked. Problem is, most of that density is in a separate county. The elected 'leader' of that county doesn't believe his county should have to pay for it, despite the fact that there are a lot of young people in that area [[Royal Oak, specifically) who would make use of the line. The best other option would likely be a line that is entirely within Wayne County, or the proposed Michigan Avenue line.
.

That is all well and good, but if it never actually makes it to Royal Oak...heck there are exactly zero guarantees it makes it past New Center, then how much of that density is it serving?

**rbdetsport** · January-12-11, 06:26 PM

Originally Posted by bailey

I cant find it now, but he did have a statement in the voter guide that was something like, "regional transit is a good idea, but we can't afford to support something that just served Detroit". IIRC, he's a BRT proponent.

Hackel supports the "Golden Triangle" as did previous Macomb County leaders. On his voter website, he was in strong support of the RTCC plan and is also in support of a regional transit authority. Even though I have spoken and spent some time on the job with Hackel, it took the support of transportation to win my vote.

**tallboy66** · January-12-11, 10:03 PM

It took me years to get it. Light rail/mass transit in Detroit is like the Cubs winning the World Series.

DetroitDad · January-13-11, 12:04 AM

Light rail is plenty profitable if you own all the land around the line, own a business that will serve the spin-off business growth, and have your name tied to it as a marketing ploy.

**dtowncitylover** · January-13-11, 07:58 AM

I'm going to talk about line placement if I may...

I've never understood why we need let's say 4 different lines, Woodward, Grand River, Gratiot, and Michigan. Why can't there be 2 lines: one along Gratiot and Grand River, and the other along Woodward and Michigan? Perhaps these things can still be worked out in the coming years.

**Hermod** · January-13-11, 08:43 AM

Originally Posted by dtowncitylover

I'm going to talk about line placement if I may...

I've never understand why we need let's say 4 different lines, Woodward, Grand River, Gratiot, and Michigan. Why can't there be 2 lines: one along Gratiot and Grand River, and the other along Woodward and Michigan? Perhaps these things can still be worked out in the coming years.

Regardless of what you call it, four lines or two lines, the extent of the track and construction expense is the same.

In addition to the radial lines, eventually you will want one or more crosstown lines. I would nominate a Warren line and a Six Mile or Seven Mile line.