Milwaukee Biz Blog

With three airlines announcing expanded flights to Milwaukee in just two days last week, it is clear that “outsiders” see major growth potential in our M7 and northern Chicago region. It’s a shame that many residents and lawmakers in our region do not share the same enthusiasm about growth in the future.

AirTran Airlines recently announced the launch of new routes from Milwaukee, Southwest Airlines just announced that it will begin flying out of Mitchell International by the end of the year and Midwest announced that it will be adding more routes in late summer. 

Southwest Airlines currently uses Midway Airport in Chicago. By deciding to use Milwaukee, Southwest is looking not only to serve southeastern Wisconsin, but to better serve northern Chicago. This is one more example to add to the list of reasons to substantially better connect the Milwaukee region with Chicago.

Looking to growth in the future, Chicago residents could conveniently take the Metra train, which then would become the Kenosha-Milwaukee-Racine (KRM) commuter rail, and ride the rail straight to a “fast lane bus” that goes right into our airport. Or they could take Amtrak to the Airport Station and hop on a shuttle right into GMIA. Better yet, when they come to Milwaukee, they could grab a meal at a local restaurant or spend the night in a hotel, further feeding our economy. Oh, they would also be paying sales taxes here.

When Chicago residents travel to Milwaukee to catch one of many new flights being added at General Mitchell, they will bring with them their need for entertainment, dining and lodging. In light of these recent developments, our regional economy can’t afford to pass up such opportunities that can occur if we have better transit connections to Chicago. This combination of buses, trains and shuttles can best occur with a regional transit authority.

Tom Rave is the executive director of The Gateway to Milwaukee.

Editor's note: On behalf of the Coalition for Advancing Transit (CAT), Tom Rave, executive director of the Airport Gateway Business Association, recently provided the following statement to the Wisconsin Legislature's Joint Finance Committee.

I'm Tom Rave, executive director of the Airport Gateway Business Association. Our mission is to take a leadership role in planning, promoting and developing the vitality of The Gateway To Milwaukee, which is the brand name we use for the area all around General Mitchell International Airport.

One of our efforts is to help lead a task force that is focused on economic development around the airport. In comparison to peer metropolitan areas, we have noted the role of mass transit as part of the transportation networks around airport areas. Our region is sorely lacking in mass transit capabilities and we believe that it is hurting us economically.

Recognition of this importance of mass transit led me to become involved with the Coalition for Advancing Transit, and I am now the chairperson of the coalition's steering committee. This non-partisan coalition is made up of over 90 individuals and organizations from the business and civic sectors of southeastern Wisconsin.

It was formed to foster regional cooperation of political and community support for the preservation, improvement and expansion of public transit to serve residents, businesses and visitors throughout southeastern Wisconsin.

Changing the downhill trend of mass transit in southeastern Wisconsin is urgent, and a regional approach is necessary. A piecemeal or local approach would be inefficient. Our coalition strongly supports establishment of a permanent regional transit authority to create and operate an integrated, multimodal mass transit system for southeastern Wisconsin, one that would eventually tie to Madison and the Fox River Valley.

An RTA can raise dedicated regional funds to qualify for federal investments to successfully create and operate such a system. It is worth noting that on page 14 of its draft executive summary of Connections 2030, our state's Department of Transportation "supports the creation of new regional transit authorities, which are governing bodies that can efficiently operate and address regional mobility needs, and raise revenue to administer and fund transit systems."

We support regional funding through a sales tax of up to 0.5 percent. Simultaneously, there should be the elimination of property taxes that currently support local bus systems.  Please keep in mind that about 30 percent of such sales taxes would be paid by people who live outside our region - just as we pay when we travel elsewhere. We believe that this can be done; that this needs to be done. 

Gov. Jim Doyle has included regional transit authorities with dedicated funding sources in the 2009-2011 state budget. The governor's action promotes local leaders working together and thinking regionally for the best interests of the broader communities. The Coalition for Advancing Transit commends the governor for his action, supports his recommendations about RTAs and asks that you support them too.

We cannot wait another two years or we will fall further behind in the competitive race of economic development. Let's get moving!

Thank you.

It is hard to disagree that the region's transit system is in the midst of a crisis. Fortunately, there are an abundance of ideas about how to address this transit crisis plus about potential solutions for transit in southeastern Wisconsin. One group in particular, the Coalition for Advancing Transit, was formed to advance a united front for transit solutions in southeastern Wisconsin.

So far, more than 60 individuals and organizations from the business and civic sectors of southeastern Wisconsin are calling for a regional approach to achieve political and public support for transit. Through outreach, education and advocacy, this Coalition is promoting the preservation, improvement and expansion of public transit.

The need is urgent, and not just in Milwaukee County. Transit funding throughout the region is threatened while transit services are not keeping up with demand. The entire southeastern Wisconsin region is feeling the effects of limited local funding, decreasing federal and state support and increased service cuts.

The list of benefits of transit is long, and has been mentioned by transit advocates time and time again: the economy will strengthen, jobs will be created and the region will become more attractive to tourists, employees, employers and entrepreneurs. It is clear that transit in the region is a necessity. However, a consensus has not been reached on the best way to implement, fund, and govern a transit system.

With this in mind, the Coalition for Advancing Transit is backing the recommendation of the Southeastern Wisconsin Regional Transit Authority (RTA) for a dedicated sales tax for transit, as a good first step toward an integrated mass transit system. It is also absolutely vital to the region that we secure a dedicated funding source to invest in our economic future, compete with peer regions across the nation and increase our ability to access federal transportation dollars. Southeastern Wisconsin is handicapped by its flawed transit system. Now is the time to get on board and support regional solutions that ultimately spread beyond those of the RTA and connect with Madison.

There has been enough talk. Now is the time for action. The Coalition will be holding a public meeting at 8:30 a.m. on Tuesday, Jan. 13, at the Manpower Inc. headquarters in downtown Milwaukee.
We urge anyone that is serious about supporting regional transit solutions to attend and see how their voice can be heard as we demonstrate how local leaders can work together for the best interests of the region, and can come to a consensus to secure a dedicated funding source for an integrated regional transit system.

Tom Rave is executive director of The Gateway to Milwaukee and is the chairman of The Coalition for Advancing Transit Steering Committee. For more information on the Coalition or to attend the Coalition's Jan. 13 meeting, visit www.uedawi.org.

Over many years, a lot of time and effort has been spent on mass transit in various parts of southeastern Wisconsin. Despite different ideas and approaches, little change has occurred.

However, there is a long list of people in southeastern Wisconsin and northern Illinois in businesses, economic development, governments, social agencies, education, labor and community interests who agree that mass transit is needed in. In fact, it is fast becoming a critical issue for the economy of southeastern Wisconsin.

Milwaukee is already suffering from the shrinking of the Milwaukee County Transit System, which will be in a severe financial crisis in two years. A public policy research report issued in October by UW-M's Center for Economic Development stated that MCTS and the Waukesha Metro Transit System combined have reduced bus route miles by nearly 20 percent from 2001 through 2007, resulting in at least 40,000 jobs becoming inaccessible by public transit, with only 55 percent of employers now being accessible within walking distance of a transit stop. With current trends, this is forecast to drop to 45 percent by 2010.

Here's an eye-opening story. The Gateway To Milwaukee is focused on economic development around the Airport, having recognized that this area is the principal welcoming and transportation hub of metropolitan Milwaukee. One of our vendors has a new business idea and is seeking capital funding of several million dollars. Potential investors from the west coast liked the idea and did their research.

They concluded that they would fund this start-up potentially if it were in Madison or preferably in Chicago, but not in Milwaukee.

This new business could need up to 60 IT and creative design young professionals in less than 120 days. The investors' concern was that Milwaukee might not attract such professionals quickly. But by opening a location in the suburbs of Chicago near a station accessible by mass transit, they were confident of a successful startup.

Thus, these investors with capital to start a business did not want to invest in Milwaukee. We lost the kind of opportunity our regional leaders are seeking because another city has mass public transit and we don't. Whether or not you agree with their analysis and conclusion, their perception became reality and we cannot ignore it.

Numerous other anecdotes have been discussed and reported. There are job openings and people interested in working, but transportation is an issue. People in northern Illinois want to come to the Airport and downtown Milwaukee by train, but options are limited. Couples in Delafield work in Milwaukee and Madison, but driving back and forth is expensive and time consuming. Car prices and their operating expenses are high. Students need to get to different campuses and jobs. More and more cars are causing parking and air quality challenges.

Greater Milwaukee is one of the only metropolitan areas of its size that does not have some mass public transit. A vibrant mass transit system will not be a luxury. It will be a vital necessity for southeastern Wisconsin to continue its growth with Chicago as a major acropolis in the world. Mass public transit would be a savior if Chicago hosts the Olympics in 2016 and it ultimately will be a necessity for Madison to partner in our growth.

We need to develop a mass transit plan for southeastern Wisconsin and we need to have it supported by a dedicated funding source. This is an investment in the future of southeast Wisconsin for people from all walks of life and economic levels. We have a wonderful place to live, but we need to focus more on economic development or our growth potential will falter, as then will our quality of life.

Mass transit is key to our growth. We citizens need to give this message to the legislators, who were elected to serve us. The timing for this is crucial. We need to get started now as the state of Wisconsin will soon begin its budget work for the biennium. This investment will take a long time to implement, but we can't wait two more years to start.

There is a long list of diverse people supporting mass transit that have come together and are known as the Coalition for Advancing Transit. In the weeks ahead, this Coalition of volunteers will be increasingly vocal in favor of developing mass transit. This issue is bigger than any individual city or county and needs cooperation among all of those entities in southeastern Wisconsin. Our goal is to demonstrate how local and regional leaders can and must work together for the best interests of southeastern Wisconsin.
Transit - let's get moving!

Tom Rave the executive director of The Gateway To Milwaukee.

The Airport Gateway Business Association (AGBA) is focused on economic development around our airport, with most of our members being businesses. AGBA has these comments about the Nov. 4 mandated sick days referendum facing Milwaukee voters:

1) We strongly support the concept of wellness for employees and their families as a good and efficient business practice. We hope and encourage employers to operate their businesses with that premise. We all know that wellness situations arise in everyone's life, that good employees will respond well to employers when cared for,

2) The imposition of this mandated employee benefit only in the City of Milwaukee would impact the human beings who own businesses in the city. It would also impact owners of other businesses outside the city if they currently provide workers to a business location in the city.

3) In addition to cash compensation to employees that comes out of the pockets of owners, it would create additional administrative costs for all of these businesses, including retention of records for five years after an employee departs.

4) Many employers may change their overall employee compensation program so that this benefit is provided while other benefits or compensation are reduced. Or, as was done by law in the City of San Francisco, a paid-time-off policy will be implemented to be used for sick time, vacation time or personal days.

5) Mayor Tom Barrett does not support this mandate for a number of reasons and AGBA highly commends him for his leadership on this matter. He realizes that this will decrease Milwaukee's level of attractiveness as a place to have a business location.

6) Another reason Mayor Barrett does not support it is that Congress is currently considering a paid sick leave policy on a national basis. We believe this arena is where such a policy should be made, if one should be made by government at all.

7) AGBA's prime objective is vitality of the economy around our airport, which is in the City of Milwaukee. Imposition of this mandate would be one damaging factor in the effort to retain and attract businesses to our area. Simply, if a human being located outside Milwaukee could expand his or her business in Milwaukee or elsewhere, this mandated benefit certainly would be a negative factor in their consideration, especially when no other city in Wisconsin has it. The business can locate instead just across the street. Isn't this ridiculous?

8) AGBA believes that human beings who own businesses should be able to compete by offering competitive compensation packages that meet the combined goals and needs of them and their employees. One-sized benefits on all businesses does not make sense and will reduce competition. 

9) As a matter of principle, AGBA thinks that it is not the role of government to impose employee benefits requirements on businesses. Interestingly, the proposed ordinance excludes non-business entities, such as government-related ones.

10) AGBA further thinks that this proposed City ordinance is an extremely poor example of establishing legislation. In effect, the potential beneficiaries are being asked to vote on a benefit for them that will have no cost to them and a tiny relative cost to taxpayers in the form of more staffing for the Equal Rights Commission in the city. There are fewer business owners than there are employees and there was little time for businesses to participate in the legislation process prior to the referendum being established. This was a very unfair manner to allow a mandating ordinance to be put on a ballot.

11) The cost of providing this benefit will come out of the pockets of human beings who own businesses, the very ones that are currently risking their own capital in the business and are providing the jobs for these employees in the first place. Their choices will be to change compensation plans, raise prices or move.

12) Property values in other cities may already be relatively higher because of lower taxes than those of the City of Milwaukee. If a lot of businesses decide to move, property values in the city will go down further because of increasing supply and they will go up right across the street because of increasing demand.

13) While this ordinance would initially be good for some employees, for others it will not be good because they will ot have improved benefits in total but they will have less flexibility is their benefit package. Some may lose jobs when companies decide to move and ultimately, the taxpayers may have to pay more. Ultimately, this ordinance will be risky for the city.

14) Our fear is that the voters will think just of themselves and not of the city or the long-term bigger picture. If Milwaukee is the only city to implement this requirement, in the long run the voters will ultimately be hurting themselves as well as the city.

15) Passing this referendum is not a good idea. It is not the right thing to do. There are better alternatives to meet employees' desires.

16)  We encourage employers to use the MMAC's Tool Box on this issue to communicate with their employees.

Tom Rave is the executive director of The Gateway To Milwaukee.

Editor's Note: The following is the text of a letter to Wisconsin Department of Transportation Secretary Frank Busalacchi from Thomas Rave, executive director of The Gateway To Milwaukee, an organization which is an advocate for business development near General Mitchell International Airport.

RE:  Potential elimination of the Hoan Bridge in Milwaukee

Dear Secretary Busalacchi,
Over the 3-1/2 years of the existence of the Airport Gateway Business Association, we believe that we have developed a good working relationship with the Department of Transportation associates in southeast Wisconsin. This has occurred through contributing to the plans for the reconstruction of I-94 and the Layton Avenue ramps in particular.

Our mission is to stimulate the vitality of the areas around Milwaukee's airport.  Promoting it as The Gateway To Milwaukee, we have come to recognize that this area around General Mitchell International Airport is the primary welcoming and transportation hub of greater Milwaukee. We have also learned that a number of cities in the U.S. and around the world are using their airport areas as a key hub for economic development. These developments are based on the increasing need for speed and accessibility in the business world and this view is driving our activities for The Gateway To Milwaukee.

As the DOT evaluates the alternatives regarding the Hoan Bridge, we respectfully ask that the business needs for speed and accessibility be remembered when considering these comments:

(1) Using the 794 Parkway between the Airport areas and downtown offers a quicker and shorter alternative than using I-94, especially for the suburbs in southeastern Milwaukee County. It is a substantial alternative to I-94 and important to have two choices between downtown and The Gateway areas and many drivers have become used to this eastern route.

(2) The one stop light on the 794 Parkway currently has substantial backups during rush hour. If more delays arose, such as waiting for bridges to become accessible to go over the river entrance to Lake Michigan, use of the Parkway would probably decline.

(3) Much of the business traffic in The Gateway To Milwaukee, which includes a substantial amount of trucks, would probably have less flexibility but spend more time and expense in going west to I-94. If they had to wait for bridges to close and open, precious time is wasted and idling trucks are not healthy. Having only one primary roadway would seem like a step backward.

(4) Using the 794 Parkway to I-794 and then to I-94/I-43 is a good alternative to using only I-94 on the west side of The Gateway.

(5) Finally, we ran a small, unscientific poll among our web site's readers about the Hoan Bridge coming down. Among 64 voters, it was a 4 to 1 ratio against it coming down.

In addition to the speed and accessibility factors, Secretary Busalacchi, there is a sales feature to consider. When entities such as Milwaukee 7, VISIT Milwaukee and Spirit of Milwaukee are introducing newcomers to the area, they intentionally take people along the 794 Parkway and over the Hoan Bridge. The view of Milwaukee and its lakefront is spectacular. There is no other view like this in the area and it real helps welcome people to Milwaukee. First impressions are so important.

Admittedly, there are many other factors and costs to consider about this subject of which we are unaware, and we look forward to their being made available. At the same time, however, we sincerely hope that speed and accessibility will be significant factors during the evaluation process. They are critical to Milwaukee's business success in the future.

This is being sent with the unanimous support of our Board of Directors.

Sincerely,

Thomas A. Rave
Executive Director
The Gateway To Milwaukee