Connecting the region

KRM could be an important business and economic development tool

From the Journal Sentinel

May 18, 2008

http://www.jsonline.com/story/index.aspx?id=751693

Where do we go from here? How does southeastern Wisconsin get this railroad built?

In two words: leadership and collaboration.

Despite the failure of the Legislature - in the last regular session and in the special session that followed - to approve a funding source for a commuter rail line linking Kenosha, Racine and Milwaukee to each other and to commuter rail in Illinois, most supporters of the KRM project remain optimistic.

They say that support from Gov. Jim Doyle and a growing consensus in the business community that KRM could be an important economic development tool gives them reason to believe that KRM will become a reality, and that KRM legislation could be included in the next state budget.

"I'm encouraged by the momentum that was created," said Karl Ostby, chairman of the Southeastern Wisconsin Regional Transit Authority. "We came close this year. I think the governor is a lot more on board, and I think we'll be able to get something in his budget this fall. I also think there is more of a consensus in the region."

The RTA, charged with looking at all transit issues in southeastern Wisconsin, is working on a report on a dedicated source of funding for regional transit. "The hurdle is funding the right funding source," he said.

One option that's popular elsewhere, funding most transit systems in other metropolitan areas, is a sales tax. But local leaders such as Milwaukee County Executive Scott Walker and Racine County Executive William McReynolds - both of whom say they support KRM - oppose such a tax.

State Sen. John Lehman (D-Racine) said he does, too, and will instead keep pushing for a funding source such as a hike in the car rental tax or a transportation improvement district, which would function much like a tax incremental finance district. The rail line would benefit from the increase in tax revenue.

But KRM is important for Lehman. "I see this as a catalyst for development in Racine," he said. "It speaks to the life and rebirth of the community." He has volunteered for a legislative study committee that's being organized to study regional transportation.

But what is needed to ensure that KRM becomes a reality? Tim Yantos, executive director of the Northstar commuter rail line, now under construction in Minnesota, has some advice.

First, be sure it's a good corridor, one that commuters will use. Minnesota's corridor runs from Minneapolis to Big Lake, a heavily traveled line. Certainly, the Chicago-Milwaukee corridor makes sense on that score.

Second, make sure local leadership is on board "from day one." A coalition of municipalities and counties in the Minneapolis region worked together and "worked hard for a long time" to find the financing and start the project.

Third, find a champion. In Minnesota, Yantos said, a critical turning point was when Gov. Tim Pawlenty changed his position and became a supporter of the rail line.

Fourth, be persistent. Yantos said it took 10 years from the time serious discussion began to when work started on the line.

The 40-mile Northstar commuter line is about 35% built and is expected to be open in November 2009. It will cost $317 million to build, with half of that funding coming from federal sources. The state and local governments are picking up the rest. Operating costs are expected to be $12 million to $14 million, with 30% to 50% of that cost covered by fares, Yantos said. A regional railroad authority made up of three counties is responsible for the local share of funding.

Getting it done wasn't easy, said Yantos. "For several years, we got nothing in the state budget," he said. "But the governor's support really helped, and people began to realize we needed to do more than just building roads." He also said that the success of a light rail line in Minneapolis helped people realize that rail was a viable option for commuters.

Like other supporters of KRM, Kenneth Yunker, deputy director of the Southeastern Wisconsin Regional Planning Commission, argues that a quality transit system is critical to economic development in the region. And a quality transit system that ties the Milwaukee area closer to Chicago will have benefits for everyone in the region, not just those directly served by a commuter rail line.

To create such a line, "the Legislature has to give the RTA authority to sponsor and operate commuter rail," he said. "It's important as well that the RTA address funding for all public transit in the area. It's been cut, cut, cut for public transit and we need to move in the opposite direction."

Yunker believes the business community in the area already has come to the conclusion that KRM should be part of a quality regional transit system. "They plan on taking a leadership role," he added. But what's also needed is support from local officials who have to clearly and unequivocally indicate to state officials that transit is important to them.

"A substantial number of people in the region are unemployed and don't have access to an automobile," he added. "We need a system that can move them to jobs."

One company that has been playing a critical support role is Racine's S.C. Johnson. "We are a southeastern Wisconsin company," said Chip Brewer, director of worldwide government relations. "We don't have facilities dotted around the country. Our future is linked to the economic health of this region." Brewer also pointed out the Milwaukee 7 economic development group has made transit one of its highest priorities.

"We think some things are coming into alignment," Brewer said. "The business community is coming together. The broader transit issues in Milwaukee have brought more attention to the issue. We really think that a healthy transportation infrastructure involving air, roads and mass transit is critical. Next year will be very important. This has to be a bipartisan, non-ideological issue."

Kerry Thomas, interim executive director of Transit NOW, which has been pushing for KRM, agrees. "Transit must become a top priority for elected, business and community leaders and the public alike over the next six months. We must be more effective at working collaboratively as a region, or we will end up with nothing," she said in an e-mail. "This year is a very important time to build consensus and a united voice in our region."

Not everyone is convinced that such consensus will be found. Assembly Minority Leader Jim Kreuser (D-Kenosha), a staunch supporter of KRM, blames Milwaukee and Racine officials for the failure to get agreement so far. "The issue is leadership in Milwaukee and Racine; until they get their act together, nothing is going to happen," he said. "They're just not pulling in the same direction."

Kreuser said the stage was set to get KRM done in time to alleviate some of the congestion that will occur during the reconstruction of I-94 from Milwaukee to the Illinois border. "But you have to want to do this, and I don't see that happening yet. I think the people in the business community are shocked that it hasn't been done."

This special report was reported and written by Ernst-Ulrich Franzen for the Editorial Board.