Governor Granholm Signs Rapid Transit Legislation

Press Release

Governor Granholm Signs Rapid Transit Legislation

Woodward Avenue light rail sets stage for development across the state

Governor Jennifer M. Granholm has signed a legislative package that will pave the way for development of a rapid transit system along the Woodward Avenue corridor in Detroit. This new legislation sets the stage for continued development of rapid transit systems across the state and continues the governor's efforts to grow the state's economy and create jobs. Rapid transit systems may include such options as light rail, trolleys, or bus rapid transit.

"The most vibrant states are the ones that have a robust public transportation system, and this legislation is a historic step to take Michigan closer to having rapid transit systems starting in Detroit," Granholm said. "As the nation moves toward new solutions like alternative and renewable energy, we must create cities that are compact and dynamic and diversify our transportation systems with alternatives like light rail lines."

The new legislation allows the creation of nonprofit entities to build and operate rail lines in Michigan and provides tools to generate financing for operation of the systems.

The package applies to Detroit as well as other cities but will be of particular importance to The Regional Area Initial Link (TRAIL) project slated to run 3.4 miles between Hart Plaza on the riverfront and the new center in Detroit where it will connect with the proposed Ann Arbor-Detroit commuter rail service. Some of the projected stops will include major businesses, theaters, ballparks, museums and hospitals.

The legislation also allows private contributors to fund the system's construction.

TRAIL, a business group chaired by civic leader Roger Penske, has championed light rail on Woodward and raised private sector funds toward its implementation. The group has appointed Matt Cullen, president and COO of Rock Ventures, as volunteer interim CEO.

"This is one of the most vital projects for Detroit and southeast Michigan," said Cullen. "This new legislation allows planning and engineering to begin in earnest among TRAIL, MDOT, DDOT and the many stakeholders along the Woodward Corridor."

Granholm noted that the legislation is a critical tool to allow public/private partnerships to thrive.

"There are some situations where the government can't do it alone, where the private sector can't do it alone. Woodward light rail is one of those situations," said Richard Blouse, Jr., president and CEO, Detroit Regional Chamber of Commerce. "People have tried for years to get this going. It took everyone, government and business, working together to make it happen."

Under the new laws, street rail companies will be allowed to receive state funds and construct rail stops and other infrastructure on state-owned right-of-way. It allows the Michigan Department of Transportation (MDOT) to establish a "transit development finance zone" to capture tax revenue from the growth in property values to help fund the railway system under an agreement with the city in which the line is located.

Last fall, the governor's Transportation Funding Task Force concluded that light rail, commuter rail, and intercity rail are all vital to building an effective system in the 21st century.

Light rail typically has more stops than commuter rail and operates at lower speeds than longer-distance rail service. The permanence of light rail, and its ability to create a variety of development around stations, can help with economic growth.

Detroit is the only American city of its size that does not have light rail or commuter rail.

House Bill 6542 (PA 481) was sponsored by Representative Bert Johnson (D-Detroit); House Bill 6543 (PA 482) was sponsored by Representative Tom Pearce (R- Rockford); House Bill 6546 (PA 483) was sponsored by Representative Gabe Leland (D-Detroit) and House Bill 6625 (PA 484) was sponsored by former Representative Hoon-Yung Hopgood (D-Taylor). Senate Bill 1588 (PA 485) was sponsored by Senator Jud Gilbert (R-Algonac); Senate Bill 1589 (PA 486) was sponsored by Senator Jason Allen (R-Traverse City); Senate Bill 1590 (PA 487) was sponsored by Senator Tupac Hunter (D-Detroit); and Senate Bill 1592 (PA 488) was sponsored by Senator Bill Hardiman (R- Kentwood).

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