Posted on Wed, Feb. 11, 2004

TRANSPORTATION: Funds sought for test of personal transit pods

BY HANK SHAW
Pioneer Press

Calling it the space race of the 21st century, supporters of personal rapid transit want the Legislature to give their nascent industry a range of incentives to keep Minnesota at its forefront.

Personal rapid transit is a futuristic transit system that would use gumdrop-shaped cars to whisk travelers along on elevated tracks. University of Minnesota researchers developed a version of the concept, and a Fridley-based company stands ready to build a full system.

But supporters say the industry needs incentives to flourish, and they have found allies in Rep. Mark Olson, R-Big Lake, chief sponsor of several bills in the House, and Sens. Yvonne Solon, DFL-Duluth, and Michele Bachmann, R-Stillwater, who are sponsoring legislation in the Senate.

The bills would:

Ask the state to borrow up to $12 million to test personal rapid transit. Olson wants the project tested in Duluth. Rep. Bruce Anderson, R-Buffalo, is sponsoring a bill to test the system in Minneapolis.

Give a range of tax breaks to companies that operate such a system, if those firms do not receive government subsidies.

Allow local governments to borrow money to build their own systems.

Olson said a successful demonstration at last year's State Fair, in which volunteers gathered 4,500 signatures supporting the idea, shows that personal rapid transit's time has finally arrived, after decades of discussion.

"This really is like a space race," Olson said.

Olson said others are developing their own technology, so whoever gets a system running first would hold a commanding position in what he said will become a huge industry.

"Once this is up and running, I believe the demand will be significant," he said. "Every city will want this once it's proven."

Olson said private investment will cover most of the test track's $24 million cost, whether it's in Duluth or Minneapolis. He said the state's share would be between $8 million and $12 million.

Tom Milar, chairman of the group Citizens for Personal Rapid Transit, said that without a show of state support, private investment will be tougher to secure. "This would really help the process along," he said.

Olson said Fridley-based Taxi 2000 already has attracted $2.8 million in investment. But the firm has tried at least twice without success to secure government support for its personal rapid transit system, most recently in Santa Cruz, Calif.

No one has built a full personal rapid transit system, although a test track exists in Great Britain.

Olson, who sits on Taxi 2000's advisory committee, plans to plead his case before the House Transportation Finance Committee today.

Hank Shaw can be reached at hshaw@pioneerpress.com or 651-228-5257.