Earlier this month, I visited Detroit and noticed lots of construction along Woodward Avenue, a thoroughfare stretching north from downtown.
Detroit streetcar a study in public-private transportation funding
June 15, 2015 at 11:08PM
Portions of the street were torn up to make way for the M-1 Rail, a 3.3-mile streetcar line. The $140 million project is funded largely by private businesses and philanthropic organizations, with help from federal, state and city sources.
This public-private partnership is different from the way transit projects have been funded historically — usually with public funds and taxes.
The M-1 is being built by a nonprofit organization led by former race car driver and auto mogul Roger Penske and Dan Gilbert, who owns Detroit-based Quicken Loans Inc. Another major funder is the Kresge Foundation, led by Rip Rapson, former president of the McKnight Foundation in Minneapolis (and son of architect Ralph Rapson).
Detroit has an elevated tram downtown called the People Mover that cheerfully runs in a circle, hitting all the hot spots such as Greektown and the Renaissance Center. I found it serviceable but a bit discombobulating — some stops are within 50 seconds of each other.
The M-1 Rail was envisioned at one point to be a light-rail line, but those plans were scrapped as Detroit wrestled with financial issues. With public transit funding constrained, other financing options are being considered by cities nationwide.
In Minnesota, Metro Transit reports UnitedHealth Group donated land for the City West Station on the Southwest light-rail line. The Minnesota Twins, Mall of America owner Triple Five Group and McGough Construction also donated cash and land for light-rail projects.
In May, Detroit media outlets reported that Quicken Loans had bought the naming rights for the M-1 line for an undisclosed price, though the name hasn't been revealed yet. The concept isn't unheard of — the Cleveland Clinic and University Hospitals each agreed to pay $6.25 million for naming rights of the bus-rapid transit system on the city's east side. It's called HealthLine.
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