Milwaukee Intermodal Station: A Public-Private Partnership Success Story
Objective
Objective
To redevelop an obsolete downtown Amtrak facility that had recently been acquired by the State. This project would be the first public-private partnership ever undertaken by the Wisconsin Department of Transportation.
Situation
Through a competitive selection process, the Wisconsin Department of Transportation (WisDOT) selected the joint venture led by PMA for the redevelopment. The joint venture originally committed $2 million in private capital to the facility based on its ability to monetize existing foot traffic with retail, food, and vending offerings.
PMA’s Contribution
With the community’s desire for an upscale, architecturally significant building, our team secured additional private capital along with investments from City, State and Federal authorities. This additional underwriting was made possible by recruiting Greyhound, regional bus companies, and public transit station users to create a true intermodal facility. With significant increases in passengers from all modes of transportation and an expansion of retail to serve these customers, a world-class centerpiece for the Downtown opened in November 2007.
Results
While budgets and schedules are important to any development, it is critical to have a bone-deep understanding of the underlying economics of any project. PMA and its partners developed a sophisticated model of rental income based on the number of passengers, dwell times, and daytime population in the area (a large regional postal facility is adjacent to the station). When the host community demanded a more prestigious facility, PMA had a scalable business model in place which permitted additional investment based on securing additional users.