() Comments
Study: Commuter rail would have 'substantial' economic impact
BY MICHAEL BURKE
Journal Times
RACINE -
A study of commuter rail's economic impacts, released last month, foretells a more vibrant southeastern Wisconsin economy over time if KRM becomes a reality.
The study was performed by the University of Wisconsin-Milwaukee's Institute For Survey and Policy Research. It concluded that a
For the study, estimated direct and indirect impacts were computed using a modeling system developed by the U.S. Department of Commerce's Bureau of Economic Analysis.
The resulting report, released Jan. 18, states that KRM's economic impacts would be "substantial."
"Studies have shown that the region has had difficulties retaining qualified labor and also attracting new businesses," it continues. "A major transit development in this region, such as the KRM commuter rail, can begin to address some of these problems. The proposed transit system will assist in attracting and retaining workers in the region."
The proposed KRM commuter rail system would operate 14 daily round trips in a 33-mile corridor with nine stops and carry an estimated 1.7 million passengers per year.
KRM would use the existing Union Pacific Railroad track until about one mile south of the downtown Milwaukee passenger station.
Passengers would connect with Chicago's Metra commuter rail by changing trains at Kenosha or Waukegan, Ill.
The study concludes t
hat in the construction phase, KRM would create about 4,700 jobs, with a $560 million impact on the area economy. KRM's operation and maintenance would create 126 jobs with a $24 million annual impact on economy.
Invigorating tourism
KRM would expand area tourism, the study said, by drawing more visitors from northeastern Illinois, a significant market for southeastern Wisconsin tourism. It would make a direct connection to northeastern Illinois with 12 stations in Lake County and 13 in Cook County. KRM would reach a population of 1.4 million within a three-mile radius.
Assuming just a 1 percent increase in tourism in the three KRM counties, KRM would generate $20 million in expenditures, $12 million in wages, 500 jobs and $3 million in state and local government revenue, the study says.
A closer connection between this region and the greater Chicago area is one of the main economic development priorities of the Milwaukee 7, the cooperating group of southeastern Wisconsin counties.
"Companies such as SC Johnson, one of the largest employers in southeastern Wisconsin and the state of Wisconsin, and others have already cited the need for this KRM commuter rail link to northeastern Illinois to retaining and attracting qualified employees, and maintaining and expanding its presence in southeastern Wisconsin," the report states.
The study looked at how KRM would spark development and redevelopment around the nine train stations. Projected within one-half mile of those stations would be
n
23,000 residential units
n
7.6 million square feet of retail space
n
4.7 million square feet of office space
n
71,000 jobs
n
A $7.9 billion increase in property value
The authors wrote, "Without KRM commuter rail, 20 to 50 percent of this potential development would not be expected to take place."
Higher property values
The study said KRM would also significantly increase property values. Based on experience across the nation, development along the rail line would be expected to create a 4 to 20 percent, or even higher, premium in property value.
Assuming a 10 percent premium for a one-mile corridor along the KRM rail line, that would represent a $2.1 billion increase in property value in the three KRM counties.
And commuter rail would help reduce vehicle traffic and congestion as well as air pollution.
KRM would also give high-quality access to jobs for the nearly 15 percent of the population of Racine, Kenosha and Milwaukee counties who do not own a car, the study says.
The Southeastern Wisconsin Regional Transit Authority has recommended a $15 fee on each car rental to fund both KRM's capital and operating costs. Next, the issue moves to the state budget, and this summer to the Federal Transit Authority as a grant request.
To see the complete report, visit
http://www.transitnow.org/documents/UWM_KRM_Study.pdf
Special Offer: Get 5 Weeks of the Journal Times for $7!
|
 |
|
| Fire destroyed Caledonia house | Racine County OK with judicial staffing; Kenosha County lacking |
