After roughly five years of steady progress — and well into the final stages of its development — the Woodward Light Rail project could now lose its most important funding ally: M-1 Rail.

M-1 Rail, unhappy with the Detroit Department of Transportation’s plan for the Woodward Light Rail project, is reconsidering its financial support, which may threaten the city’s already frail transit system and create severe consequences for the residents and economy of Detroit.

Last month, allegedly while negotiations between the M-1 private investment group and city officials were still being made, Detroit Mayor Dave Bing announced the co-signing of the Final Environmental Impact Statement, which establishes the project’s route.

However, the mayor’s announcement has caused M-1 Rail to question its financial investment in the project.

According to an article published in Crain’s Detroit Business July 10, M-1 is upset about DDOT’s established project route because it is not exactly what the M-1 group had in mind.

In the same article, M-1 Rail CEO Matt Cullen would not comment on specifics, but instead offered a blanket statement in which he seemed willing to continue negotiations.

“M-1’s board and stakeholders remain very supportive of Mayor Bing and very supportive of robust, sustainable transit projects for Detroit and the region,” Cullen told Crain’s on July 10.

Cullen was unavailable for comment as of press time.

Sources familiar with the situation told Crain’s that M-1 does not believe the DDOT plan is sustainable. They also said that because of the alignment and layout of the project, M-1 doubts it could be connected to future regional transit systems.

With the FEIS already agreed upon and co-signed by the FTA and the city of Detroit, the administration has said it expects to enter a final Record of Decision on Sept. 1, and preliminary engineering is slated to begin this fall. Guaranteed funding is crucial.

The city, partnered with M-1 Rail’s pledge of a $100 million investment in the project—nearly half of the required $210 million local match—had applied for the FTA’s New Starts grant program.

The program supports major transit capital investments in metropolitan areas under several qualifying conditions.

The New Starts program requires local matched funds, as well as the city line tying into a larger regional plan – two of many determinants required to secure $318 million in federal assistance so the $528 million project can be completed.

However, according to the Crain’s article, the M-1 investment group does not think the DDOT plan is the best use of the funds and now threatens pull their support.

M-1 Rail CEO Matt Cullen has said in the past that the group would not commit funds to a project that it did not philosophically agree with, according to the article.

Megan Owens, director of Transportation Riders United, Detroit’s non-profit transit advocate and self-proclaimed “translator” between public officials and community needs, also shares some of the same concerns as M-1, not only about the future of the project but about city transit in general.

She said that TRU thinks there should be dedicated funding not only to ensure long-term stability, but also so that transit in the city can eventually expand beyond the proposed line.

“There has been talk about a 1-cent sales tax throughout the region to fund not only this but bus service and rapid transit expansion,” Owens said.

Private-sector transit advocate and consultant Maire Donigan, former Royal Oak state representative, is quoted in the article as saying that the loss of M-1 Rail funding would be “devastating.” The investment is essential to keep the project alive, Donigan said.

It’s still unclear if M-1 Rail will stay committed at this point, but Bob Berg, city spokesman for the rail project, was also quoted in the story, saying that M-1 has not yet told the city that the money will be withheld.

Berg told Crain’s that the situation is complex and that there are always bumps in the road, but that does not necessarily stop negotiations.

“There’s been a good-faith effort to accommodate all the interested parties, including M-1 and the public,” Berg said.

Sustainability has always been a major concern. The City Council’s fiscal analysis consultant produced an approval of resolution document April 11 in which it described the light rail’s operating and maintenance cost projected at $12 to $16 million annually through 2030.

Detroit City Council member Kenneth Cockrel Jr. said it’s too early to say that the council is satisfied with the plan but it, in general, supports the project and understands the sustainability issue.

He said Bing has recently proposed creating an authority to operate the Woodward Light Rail system, and the pros and cons are being weighed.

“We haven’t made a final decision as to whether or not that is something we want to do,” Cockrel said.

Owens said the transit system in Detroit is inefficient and so the light rail would be an important component to improve services.

All in all, she said, TRU thinks this is an appropriate plan that connects to many major destinations.

“Between shopping, recreation and entertainment, I think this really is a very strong start to a rapid transit system,” Owens said.

She said although there are many economic benefits that would result from the project, giving people the ability to get where they need to go is very important.

Without a reliable transit system, Owens said, people are unable to work, go to school or church or have access to other basic needs such as proper medical care or groceries.

In March 2008, the Detroit Transit Options for Growth study, which was responsible for selecting the locally preferred route, produced a Purpose and Need Statement that showed that more than 300,000 residents in the study area were transit dependent – a number that continues to rise with the price of gas.

According to the U.S. Department of Transportation’s Bureau of Transportation Statistics, transportation is vital to the stability of any region and its population.

The bureau has said this includes all aspects of transportation: the movement of goods and the purchase of all transportation-related products and services, as well as the movement of people.

Detroit resident Vincent Whetstone said the current system creates many issues by being unreliable and therefore reducing the quality of life among residents who cannot afford a personal vehicle.

“There is an intense need for better services, especially when it comes to this transit system in Detroit,” he said.

Owens said TRU will continue to be a “watch dog” over this program to make sure it continues moving forward with the community in mind.

“It’s not just about how to build more and bigger roads, but it’s how to build a transportation system that really suits the 21st century,” Owens said.