Bank President Praises Benefits of KRM Rail Link

By Joe Potente
Kenosha News

Karl Ostby is quick to admit his background is in banking, not mass transit.

Still, he says he can recognize the enormous benefi ts he believes would come with the proposed Kenosha-Racine-Milwaukee (KRM) commuter rail link.

"I believe there is such tremendous economic development potential for transit in general, commuter rail specifically," he said.

Ostby, the president of Kenosha-based Southport Bank and the chairman of the Southeastern Wisconsin Regional Transit Authority, preached the virtues of the rail proposal while speaking Monday at a Carthage College Business and Professional Coalition luncheon.

He was joined by Phil Evenson, executive director of the Southeastern Wisconsin Regional Planning Commission, who gave the specifi cations and the costs of the $200 million project.

Ostby, tabbed by County Executive Allan Kehl to be Kenosha County's representative on the three-county transit authority, said KRM offers three primary benefits to the region:

• High-quality, affordable transportation.
• An alternative to automobile travel, particularly as a major rebuilding of Interstate 94 approaches.
• An incentive for businesses to locate along the 33-mile rail corridor.

As for potential ridership, Ostby pointed to a study indicating 1 million jobs currently exist within a mile of the current and proposed rail stations between Chicago and Milwaukee.

Ostby said a study also forecasts a $7.8 billion increase in property values in the vicinity of the new stations, plus a $750 million jump in retail sales.

As a banker, Ostby said he is skeptical of such estimates. But, he added, "If they're half as good, this is very, very powerful to our region."

Despite these projected benefits, how to fund KRM has generated controversy and strife between leaders in Kenosha, Racine and Milwaukee.

Milwaukee County Executive Scott Walker led the charge against a proposed 0.05 percent sales tax - 5 cents on a $100 purchase - that backers said would cover KRM's local funding source.

As a compromise, the transit authority earlier this year endorsed a $13 increase in a current $2 regional rental car fee, which Evenson conceded is not as reliable of a funding source because it does not necessarily grow with infl ation and the economy.

What source will ultimately be approved now lies largely in the hands of the Wisconsin Legislature and a special joint conference committee that continues to negotiate the terms of the now-overdue 2007-09 state budget.

Count Kehl as one who wants to see the rail line come to fruition. In introducing Ostby at Monday's luncheon, the county executive called KRM "a key element of economic development."

Carthage President F. Gregory Campbell said the college will support any proposal that enhances the strength of the Kenosha community.

Ostby said he appreciates Kenosha and Racine leaders' support of KRM, and he puzzled over the more skeptical reception the project has gotten from Milwaukee government offi cials.

While Kenosha, with its existing Metra rail service to Chica go, could have the least to gain from KRM, its leaders seem to understand the would-be benefits the most, Ostby said.

"I do firmly believe that great cities and great regions have great transportation," Ostby said.