Tagged: light rail

Back in December, it seemed a 3-mile light rail project in Detroit along Woodward Avenue was put on the scrap heap when U.S. Transportation Secretary Ray LaHood raised doubts that Detroit could pay the operating costs for the proposed line.

In discussions, Detroit Mayor Bing, Gov. Snyder, and LaHood opted for a rapid bus system instead.

But as Michigan Radio's Sarah Cwiek has been reporting, private investors who were backing the light rail project pushed back on the bus idea.

Now the Detroit Free Press reports the M-1 Rail Group says they'll put up the money to run the system for the first 10 years.

The M-1 Rail Group outlined the details in a report it has sent to the federal government. The group of private investors and philanthropic groups behind the effort said they would commit to paying the estimated $5.1 million annual cost of operating the Woodward rail line through 2025.

After the first ten years, the group says they would donate the system "to the appropriate agency, such as a regional transit authority that Gov. Rick Snyder and the Legislature are working to create for southeast Michigan..."

The on-again-off-again light rail plan in Detroit is now officially "off," according to the Detroit Free Press.

A light-rail system was planned between downtown Detroit and 8 Mile Rd.

The paper reports the $25 million pledged to the project from a federal TIGER (Transportation Investment Generating Economic Recovery) grant will go toward a bus system instead.

From the Free Press:

U.S. Transportation Secretary Ray LaHood told Detroit Mayor Dave Bing that doubts that Detroit could pay operating costs over the long term for the light-rail line because of its and the state’s financial problems swayed him against the plan. The decision came despite earlier public support that included LaHood’s 2010 visit to Detroit to award a $25-million grant to get the project moving.

LaHood, President Barack Obama’s top transportation official, met last week with Bing and Snyder, and the sides agreed that the better option is a system of rapid-transit buses operating in dedicated lanes on routes from downtown to and through the suburbs along Gratiot, Woodward and Michigan avenues and along M-59, the officials said.

Private and philanthropic investors had pledged $100 million toward the light rail project. Though some investors had shown signs of wavering.

The Free Press reports the decision to scrap the light-rail plan "outraged Megan Owens, director of the Detroit advocacy group Transportation Riders United." Advocates said the investments made in light-rail line would lead to redevelopment along Woodward Avenue:

 “We’re basically throwing away a $3-billion economic development investment,” Owens said. “I’m outraged Mayor Bing would let this happen on his watch.”

Critics of the project said the light-rail project would be a waste of money and could suffer the same fate as the People Mover in Detroit. That system has been struggling to remain economically viable.

Detroit City Council has approved $125 million in bonds to help pay for a light rail system that will stretch from downtown Detroit to the New Center.

The total cost of the project is expected to be $528 million, according to Bill Shea at Detroit Crain's Business.

Council also approved a $25 million TIGER grant from the federal government (Transportation Investment Generating Economic Recovery).

From the Detroit Free Press:

Plans for a light rail line in Detroit got a boost with a $25 million grant from the federal government.

The money will help with the first phase of the project, which will connect Detroit’s downtown and New Center areas. That 3.5 mile stretch could ultimately extend up Woodward Avenue to the city’s border at Eight Mile Road.

The project is backed by a powerful group of business leaders in the city – including Dan Gilbert, Peter Karmanos, and Roger Penske. They’ve helped pull together about $125 million in private funding. In an unusual arrangement, the federal government agreed to match those private dollars. Normally the city would have to put up the money, but Detroit is broke.

The project is expected to break ground this year.