Trains, stations to play host to new marketing opportunities
Eric D. Lawrence
Detroit’s streetcars are likely to look a bit different in coming months.
The QLINE red won’t be going away, according to spokesman Dan Lijana, but the trains and the stations are expected to play host to new marketing opportunities.
The Michigan Strategic Fund board agreed to change the payment terms on a loan to M-1 Rail, the entity that operates the QLINE, in exchange for the marketing deal. The loan for construction of the 3.3-mile rail line on
Woodward Avenue, originally for $10 million, dates to 2014 and the remaining balance is more than $3.5 million.
It wasn’t clear Monday what kinds of advertising would be pursued. The streetcars have been fitted with promotional wraps ahead of the NFL draft, slated for downtown Detroit later this month, but that arrangement was underway before the loan deal, according to Lijana.
A briefing memo provided to the board noted that the “opportunities include wrapping the streetcars with promotional materials, affixing logos to the base exterior of the streetcar, and running static video content to each of the 20 streetcar stations.”
The memo said that “third party organizations estimate that these new promotional opportunities are valued at approximately $4.8 million over the original term of the loan.”
The memo noted that “the long-term philanthropic commitments for M-1 Rail have been exhausted over the last 10+ years and there is a critical need to unlock new sources of funding.”
The 11-member strategic fund board “has statutory authority to direct state appropriations to support business development, community development, talent enhancement and
state marketing activities,” according to its website.
The shift in the loan repayment agreement, reported earlier by Crain’s Detroit Business, comes as the Regional Transit Authority of Southeast Michigan moves to take over the rail system. One of the stipulations, however, is that M-1 Rail’s budget must be balanced first, and Lijana
said the change in the loan payment agreement resolves the last outstanding debt for M-1 Rail.
When asked about the status of the management change, the RTA provided a statement noting that its board had OK’d a resolution in March of intent to transfer the assets to the RTA and that the official move would take place this summer.
“Our board approving the intent to transfer resolution was an important step in the process of bringing the service under the RTA’s management,” RTA Executive Director Ben Stupka said in a statement. “There is still work to finish before this process is over; we will continue to complete the necessary due diligence, to complete the transfer later this year.”
The RTA is overseen by a public 10-member board, with appointed representatives from Macomb, Oakland, Wayne and Washtenaw counties, as well as the city of Detroit and the state of Michigan.
Lijana previously told the Free Press that the QLINE has an annual operating budget of $10.1 million.
In late 2022, the state approved $5 million in annual operational funding for the system, which is currently free to ride, as is another Detroit rail system.
The elevated Detroit People Mover is free to ride through at least the end of 2024 following a sponsorship deal with Clinton Township-based Priority Waste that was announced last month.
Priority Waste, notably, was named the first Jersey Patch Partner for the Detroit Red Wings in February.
Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber. Submit a letter to the editor.