CHICAGO - After years of contentious debate, construction is expected to soon begin on a starter streetcar system in downtown Milwaukee following the Common Council's approval of a $124 million capital budget for the 2.5 mile project.
Mayor Tom Barrett had long pushed for approval of the project - defending it against critics who question the value of the investment -- with the argument that it would help create jobs while improving the city's transit options, and downtown appeal.
"This is about the future of the city," Barrett said Tuesday at a ceremony during which he signed the authorizing resolutions. "This is the type of investment we need to make The streetcar will help improve property values and drive economic development."
Barrett, who said no other public works project has generated such a lengthy debate, said he hopes to expand the system and would push for more federal support to support that effort.
Approval came after dozens of public meetings and debate over the project first pitched by Barrett eight years ago. Opponents also successfully stalled a January vote as they attempted to advance a petition drive to force a referendum.
The council remained divided over the project.
"This is a financially terrible move for the future of the city," said council member Tony Zielinski. "We do not have the financial resources to pay for the streetcar."
Opponents continue to work to force a referendum. They face a March 5th deadline to gather sufficient signatures to require a public vote asking whether or not a referendum should be required on any rail projects that cost more than $20 million.
The project relies on $55 million of approved federal funds with the city providing a nearly $10 million match from tax-increment funds in hand. One new TIF district and one expanded district will provide an additional $49 million in funding. The city is seeking an additional $10 million in federal support through a TIGER grant.
City Comptroller Martin Matson said the financing is not yet finalized, but it could involve some note issuance through the city's redevelopment authority. Opponents accused the city of skirting referendum rules by its plan to use the authority. The city has countered that using the authority means the borrowing won't impact city bonding limits.
The first phase carries a cost of $74 million with a lakefront extension costing another $25 million. Maintenance and vehicle costs account for the remainder of the project's tab.
Final engineering work is expected to soon begin and construction will begin later in the year with the project expected to take two years to complete with operations beginning in 2018.
The Twin Cities of Minneapolis and St. Paul are also exploring a streetcar system with debate beginning this week before the Metropolitan Council over the project's value for the area. The council controls regional transit development and planning and it must sign off in order for the projects to receive federal support. Minneapolis has proposed a 3.7 mile, $200 million system and St. Paul has pitched a 4.1 mile, $250 million line.
Fueling debate over the streetcar and its impact on economic development, the council received a consultant's report that highlighted the difficulty in assessing that impact from the experience of other cities where streetcar projects are in the works.
