Embargoed Until: Monday, September 15, 2008 Contact: Megan Owens, Executive Director
313-963-8872 or 248-259-2439
New Report: Michigan Could Gain Thousands of Jobs and Billions in New Developments by Investing in Rapid Transit
Other States Realizing Huge Job and Development Gains From Light Rail
DETROIT — Significant investments in rapid transit in Metro Detroit could generate tens of thousands of good jobs and billions of dollars in new development, concludes a report that examined the economic impact of relatively new light rail systems in four major U.S. cities.
The report, “The Economic Case for Light Rail in Detroit,” (examples).
“The greater Detroit area could achieve billions of dollars in new development and thousands of jobs just like dozens of other cities have, by investing in light rail transit,” said TRU Executive Director Megan Owens. “By making major investments in rapid transit, Michigan could jumpstart its economy and plant the seeds for long-term economic growth.”
Because many people want to live, work, shop and play near convenient rapid transit, developers in many cities choose to build near transit stations. Research by the American Public Transit Association has found that property values near transit stations are generally 25% higher than similar property elsewhere. Rapid transit systems in the four metro regions examined in the report have sparked massive investments in retail stores, grocery stores, restaurants, residential and other housing units, office buildings, movie theaters, cafes, and more. Many developers point to the rail station as a major factor in deciding to build, a very attractive feature to buyers, and a key to their success.
For decades, southeast Michigan leaders have debated the need to expand public transit. Though various plans have been proposed, not one has been launched successfully.
“Metro Detroit and all of Michigan are paying a high price for not having quality public transit systems anchored by light rail,” Owens said. “While rapid transit systems in many other metro areas are creating economic opportunities for all types of businesses, we remain on the sidelines.”
The light rail systems in Dallas, Minneapolis, Charlotte and St. Louis each cost hundreds of millions of dollars to build, funded by a combination of federal government contributions, state investments and dedicated regional transit taxes. Local officials find the investment well worth it.
Owens said efforts are moving forward on several fronts that could lead to rapid transit in Michigan urban centers:
- The Detroit Department of Transportation is developing a plan for an eight-mile, $371 million light rail on Woodward Avenue. They are currently applying to the Federal Transit Administration for federal approval and funding.
- John Hertel is leading the Regional Transportation Coordinating Council in developing an official tri-county transit plan that will include plans and timelines for rapid transit lines and bus improvements. The plan will be available for public input beginning September 24.
- Grand Rapids and west Michigan leaders are planning a rapid transit expansion that will start with a $40.1-million, nine-mile bus-rapid transit line already approved by the Federal Transit Administration. They are seeking a $9 million investment from the state.
- The Michigan Transportation Funding Task Force is developing recommendations on how to fund Michigan’s transportation system. Under consideration are a gas tax increase, other state funding mechanisms, and new local funding options.
- Legislation (House Bill 6114) on the floor of the Michigan House of Representatives would create an important tool to help fund transit systems. The bill is sponsored by Rep. Marie Donigan, D-Royal Oak and strongly supported by the Michigan Municipal League (MML).
“While major cities in other states are using rapid transit to create tens of thousands of new jobs and attract billions in new investments, Michigan has largely failed to embrace significant transit alternatives to driving,” said MML Executive Director Dan Gilmartin. “HB 6114 is a necessary first step in sparking serious public and private investments in new public transit systems in Michigan.”
Gilmartin and Owens said they will be working for passage of HB 6114 and other transit funding tools during the early fall and lame duck sessions of the Michigan Legislature to significantly expand rapid transit to generate new jobs, new development and redevelopment across Michigan.
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Transportation Riders United (TRU) is a Detroit-based non-profit organization dedicated to improving and promoting public transit in greater Detroit. More at www.DetroitTransit.org.