Worth the Investment

Feb. 9, 2015
One of Wisconsin's biggest companies considers a future location based on Milwaukee streetcar development plans.

When the Milwaukee streetcar finally rolls down the rails, it will course through downtown and the lakefront on a much more linear route than its planning process. Strong opposition to the streetcar and to funding existing transit operations is evident at both local and state levels. Nobody will accuse Milwaukee of having a comprehensive transit system. Years of purposeful underfunding have made robust service impossible.

Now the largest corporation in Wisconsin (by revenue) is considering siting a new building downtown near the lakefront, one block from the proposed streetcar route. Johnson Controls, which already has offices in Milwaukee, has made it clear that the Milwaukee Common Council’s forthcoming decision on the streetcar will be a factor in their development plans. “As we are evaluating options, a key consideration is a vibrant downtown community with convenient transportation and easy access to our facilities. As a result, we also have a keen interest in the downtown streetcar project and are monitoring that situation closely.” Fraser Engerman, director of global media relations, continued, “Johnson Controls is exploring a full range of options to address our expanding facilities needs in the area to support future growth. These include options within Milwaukee, the surrounding communities and potentially elsewhere.” 

Downtown Milwaukee has dozens of projects in the pipeline, but doubts have been raised about the viability of a streetcar project. It will be expensive, the proposed initial route is short, (although about the same length as initial routes in other cities that proved successful) and questions remain about projected ridership. To finance the project, Milwaukee secured a $54.9 million federal grant more than a decade ago. The city also has applied for a $10 million TIGER grant — funds sufficient to cover half the projected costs to build the project — and the balance of local funding has been planned. Will the streetcar be worth the investment? If Johnson Controls wants it, other businesses will, too.

It’s no secret that streetcars, or any rail project for that matter, spur growth and improvements along the route. Transit-oriented development has been around at least as long as the transcontinental railroad. Now with several significant downtown projects scheduled for completion in 2017, others soon to get underway, and a major employer declaring the streetcar a factor in their planning, Milwaukee has the opportunity to reinvent itself if it takes advantage of the benefits transit brings to world-class cities.