Barretts Trolley Folly in Milwaukee as the City Continues to Be Shot Up

Milwaukee Streetcar on Milwaukee St.

According to mayoral candidate Bob Donovan, the cost of the Milwaukee Streetcar just went up by $25 million. Donovan made the claim on Facebook following a ruling by Milwaukee County Circuit Court William Sosnay that the city must pay to relocate utilities for the streetcar project. Donovan's Facebook post notes that the $128 million project "[has risen] to nearly $150 million with the City's added responsibility to cover utility relocation costs." Is he correct?

Despite the ruling from Sosnay, the cost of the Milwaukee Streetcar didn't go up. The approved budget for the project already included the utility relocation being paid for by the city. The reality for the Milwaukee Streetcar project is business as usual. Groundbreaking is still scheduled for this spring and the project budget for the first two phases plus lakefront spur is still $128.1 million.

It should come as no surprise that Donovan would seize on this information less than 48 hours before a primary election. The south side alderman has been a long-time opponent of the Milwaukee Streetcar and its champion Mayor Tom Barrett and has attempted for years to use the project as a wedge issue in his campaign for mayor. Donovan was a vocal supporter of a failed attempt to require a referendum to approve the project. Will he succeed at the ballot box? We'll find out tomorrow when election results are announced.

The lawsuit was originally filed in November 2014 by the City of Milwaukee. The case dealt with legal authority issues between local governments and utilities, and the city's ability to use what are known as "police powers" to regulate the utilities. The lawsuit also dealt with a 2013 state law, passed as part of the budget, that requires cities to pay for utility relocation costs specifically for streetcar projects. For other transportation and street projects, utilities must pay relocation costs.

The lawsuit was filed following a challenge to the Public Service Commission by Oconomowoc resident and MacIver Institute president Brett Healy. Healy's petition as a We Energies ratepayer resulted in a April 2014 PSC ruling that the city was liable for the costs related to the streetcar project. The PSC decision came as a surprise, after initial deliberations showed the regulatory body siding with the city.

Assistant city attorney Thomas D. Miller noted that the city is reviewing their options for any future legal action. Jodie Tabak, spokesperson for mayor's office, told Mary Spicuzza of the Milwaukee Journal Sentinel that "the decision is not a surprise. We have been working collaboratively with We Energies to decrease the cost as much as possible. The project is on budget, and this decision will not have any impact on property taxes."

The Public Service Commission praised the ruling. "We applaud the circuit court in upholding the PSC's decision and stand by the fact that Wisconsin's utilities should not be required to bear the cost of relocating or modifying their infrastructure for the streetcar project," PSC spokeswoman Elise Nelson said in a statement.

City officials and project consultants continue to work with We Energies and other affected utilities to reduce the need for utility relocations. These changes have included relocating the planned tracks from E. Wells St. to E. Kilbourn Ave. and consolidating the line to N. Jackson St., instead of being splitting over N. Jackson St. and N. Van Buren St.

Adjustments are normal for large public works projects. The Marquette Interchange, an $800 million-plus, project saw an estimated utility relocation fee of $120 million reduced to $23 million by design changes. As the ruling confirms, the streetcar project is unique in that it requires the city to pay for the relocations, not the utilities. Streetcar projects across the country have faced similar challenges, with Atlanta winning their case against AT&T over who should pay for relocation.

The streetcar project was originally approved by the Milwaukee Common Council on February 10th, 2015. At the time the project had a budget of $123.9 million, including an estimated $10 million federal grant for the lakefront spur. In October of last year the city received a $14.2 million Transportation Investment Generating Economic Recovery (TIGER) grant, which increased the project budget to $128.1 million. The added costs will go towards double-tracking a segment of track to the maintenance facility, as well as other improvements.

Streetcar Renderings

Route Maps

Project Budget

Capital Costs

Maintenance facility: $7.5 million
4 Vehicles: $17.6 million
Phase 1 route: $73.8 million
Phase 2 route (Lakefront extension): $29.2 million

Funding Sources

Federal ISTEA funding : $54.9 million
Federal TIGER grant: $14.2 million
Cathedral Place #49 TIF: $9.7 million
Erie/Jefferson Riverwalk TIF #56: $18.3 million
East Michigan St. TIF #82: $31.0 million

Operations

A federal congestion mitigation and air quality grant will pay for 80 percent of the operating costs for the first 18 months, with a possible 18-month extension. Operating costs will be covered by farebox revenue, advertising, corporate sponsors and the parking fund. Operating costs are estimated at $2.65 million annually. Service on the first phase of the system is on-track to begin in early 2018.

The Man Behind Bob Donovan

Is Donovan writing all of this himself? It seems unlikely. As I reported last July, Donovan has hired Steve Schumacher to manage his campaign on social media. Schumacher continues to be the highest paid member of Donovan's campaign staff, making nearly $30,000, about 20 percent of the $124,000 Donovan has raised in campaign funds since January of last year.

Donovan's Post

"Barrett's Trolley Folly Steams On!

A judge's decision last week makes $25 million in utility relocation cost related to Mayor Tom Barrett's downtown streetcar project the responsibility of City of Milwaukee property taxpayers.

A Barrett administration spokesperson tells the Milwaukee Journal Sentinel, "this decision will not have any impact on property taxes."

Bull!

The truth is the additional $25 million will come from the streetcar's TIF (tax incremental financing). TIF money is generated by diverting property tax revenues that would otherwise go to MPS and other governmental agencies and departments.

Mayor Barrett sold his downtown streetcar to nine members of the Common Council (I and fellow mayoral candidate Alderman Joe Davis have long opposed the streetcar) at a cost of $124 million—the price tag rises to nearly $150 million with the City's added responsibility to cover utility relocation costs.

This nonsense will not continue if I am elected the next Mayor of Milwaukee—I will stop Mayor Barrett's stupid, wasteful streetcar dead in its tracks!

VOTE this Tuesday—February 16th!
Find your voting site: http://goo.gl/6OLnak
Photo ID requirement: http://goo.gl/TqdQKP"

Source

More about the Milwaukee Streetcar

For more project details, including the project timeline, financing, route and possible extensions, see our extensive past coverage.

Transportation: Feds Don't Select Milwaukee For Streetcar Grant - Jeramey Jannene - Aug 11th, 2022
Transportation: Art Campaign Highlights Milwaukee, New York Teens - Jeramey Jannene - Aug 1st, 2022
Transportation: City Seeking Grant For Streetcar Convention Center Extension - Jeramey Jannene - Jul 15th, 2022
The Hop Returns To Full Service - Jeramey Jannene - Jun 21st, 2022
Transportation: Streetcar Service Goes From Bad To Worse - Jeramey Jannene - May 3rd, 2022
Transportation: Should National Avenue Rebuild Include Plans for Streetcar? - Jeramey Jannene - Apr 8th, 2022
Transportation: Maintenance Issues Reduce The Hop's Schedule - Jeramey Jannene - Apr 4th, 2022
Transportation: Congress Extends Streetcar Grant - Jeramey Jannene - Mar 16th, 2022
City Needs Act of Congress Because of Couture-Streetcar Delay - Jeramey Jannene - Feb 1st, 2022
Transportation: Streetcar Study Draws Controversy - Jeramey Jannene - Jul 27th, 2021

Read more about Milwaukee Streetcar here

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Source: https://urbanmilwaukee.com/2016/02/15/eyes-on-milwaukee-donovan-lies-about-streetcar-suit/

Dougherty Quart1992