Light Rail System Proposed for Detroit

This frame grab comes from a video that was part of the Detroit Transit Options for Growth Study shows a proposed light rail system on Woodward Avenue in Detroit. The TRAIL system would feature electric cars running up both sides of Woodward Avenue in the second lane out from the curb. In an effort to bring a light rail system to downtown Detroit, Mich., proponents of this transportation system say private funds would be used to finance the project.

In a key fund-raising innovation, leaders of the effort are selling naming rights for up to 13 planned stations along the 3.4-mile route up Woodward Avenue. The rights go for $3 million for each pair of north-south stations. So far, 10 purchasers have committed to buying rights.

In one such agreement, the Wayne State University Board of Governors approved July 30 spending $3 million to sponsor a stop at the school.

WSU agreed to pay the money in $300,000 increments over 10 years, giving WSU the naming, marketing and promotional rights to the stop, according to four of the WSU board governors who joined the unanimous vote and the minutes of the meeting where the measure was passed.

John Hertel, who heads the privately funded TRAIL effort as chief executive of Detroit Regional Mass Transit, outlined plans for the project to the WSU board of governors before the vote.

Diane Dunaskiss, a member of the WSU board, said she and her fellow governors backed the plan with enthusiasm.

“Our goal as Wayne State University, as one of the largest employers and one of the largest institutions in the city, is to connect our campus with the downtown area and to really be a part of the renewal of the city,” she said.

In addition to WSU buying naming rights, at least four leading business leaders have agreed to participate in sponsoring the project, including business and civic leaders Roger Penske, Peter Karmanos Jr. of Compuware Corp., Dan Gilbert of Quicken Loans, and the Ilitch family of pizza and sports fame.

Representatives for the business leaders have declined to comment about their involvement.

Having 10 commitments for station naming rights means the project has raised $30 million in that way. Selling rights to the other three stations would push the total from that money source to $39 million.

In addition, the Troy-based Kresge Foundation, which already has donated $50 million to create the Detroit RiverWalk, tentatively has agreed to provide between $10 million and $50 million to back the new transit system, foundation president Rip Rapson said this week. The exact figure will depend on the success of other fund-raising, but is expected to be close to the $30-million to $40-million range.

“It is a lot of money,” Rapson said. “We really haven’t nailed down a specific number.”

Other sources of revenue might include selling naming rights for the entire system and selling advertising on the cars, like the Detroit People Mover.

Source: Detroit Free Press