WALLY (commuter Rail) - Proposal

Proposal

Trains would run daily over existing trackage owned by the Great Lakes Central Railroad, which has also committed to providing ten stainless-steel bi-level passenger cars. The service is proposed as an alternative to adding a third lane to U.S. 23, which would cost upwards of $500 million. The Ann Arbor Transportation Authority is the "designated authority" for the project.

Initial start-up costs were projected at $2.9 million, with annual operating costs at $4.8 million. Backers of the project estimate 884,000 riders per year, with a fare revenue of $2.4 million. The remainder would be subsidized by state and local governments. The project has received funding commitments from the Michigan Department of Transportation, the Ann Arbor Downtown Development Authority, and the Northfield Township Downtown Development Authority. Attempts to obtain a $1 million grant from the Federal government fell through. Both the University of Michigan and the Ann Arbor offices of the Environmental Protection Agency would pay the fares of any employees who took the train in lieu of commuting. Backers conducted a $150,000 feasibility study of the line, with money pledged by the University of Michigan, the Great Lakes Central Railroad, the Southeast Michigan Council of Governments (SEMCOG), Washtenaw and Livingston Counties. The study reported back that the project is viable, but placed start-up costs at $32.4 million, much higher than initial estimates. Most of the outlay would be for infrastructure improvements. After three years of service the line would become eligible for federal transportation funding.

In April 2010 supporters announced a scaled-back proposal with start-up costs of $16-$20 million, with yearly operating costs of $7.1 million. As of September 2011, $16 million had been spent on capital costs with another projected $19 million required for startup, and operating costs were projected as an annual $5.4 million. In his oral update to the AATA board on January 19, 2012, AATA CEO Michael Ford reported on WALLY, the north-south commuter rail project that would connect Howell and Ann Arbor. Ford stressed that it’s currently not a viable project without the TIGER III funding that had been hoped for (but not received).