After nearly 20 years of debate, Milwaukee aldermen voted 10-5 Tuesday to build a modern streetcar line downtown.

They stopped short of final approval, however. In response to concerns raised by Comptroller W. Martin "Wally" Morics, the Common Council agreed to limit spending to engineering expenses for now, and to seek a review by the comptroller before releasing money for construction.

Still ahead in the next year are key decisions about how to run the line, how to pay its operating costs and how to resolve concerns raised by utility companies about moving their underground lines out of the way of the streetcar tracks.

The measure now heads to Mayor Tom Barrett, the plan's chief advocate, for signing.

"We know there's a lot of work to be done," Barrett said. "I view this as a significant step, but by no means do I view this as the end of the road."

Plans call for a 2.1-mile line, from the lower east side to the downtown Amtrak-Greyhound station, starting in 2014. Streetcars would run every 10 minutes on weekdays and every 15 minutes on weekends and during late-night and early-morning hours.

Modern streetcars, resembling light rail vehicles, would run on rails laid in streets, draw power from overhead wires and operate in traffic.

The $64.6 million project would be funded by $54.9 million in long-idle federal transit aid and $9.7 million from a tax-incremental financing district, with fares, parking fees and advertising revenue covering the $2.65 million annual operating cost. The city is seeking additional federal aid for extensions that would add 1.5 miles to the line, boost the construction cost past $100 million and raise the operating cost to nearly $5 million a year.

But the extensions - northeast to E. Brady St. and northwest to the Pabst Brewery redevelopment - also would double projected ridership, from 588,880 by 2015 to 1.2 million, partly by adding such key destinations as the Frontier Airlines Center and the Bradley Center.

Utilities have warned it could cost $50 million or more to move utility lines along the initial route, but utility and city representatives have agreed those early projections are likely to come down with design adjustments and possibly even a route change. The council voted to cap the initial segment at $64.6 million and trim costs if needed.

Barrett has said he wants the streetcars to be operated by the nonprofit company that runs the Milwaukee County Transit System, but no formal deal is on the table.

Downtown Ald. Bob Bauman said the streetcar line would stimulate development, expand the tax base, create jobs and improve mobility for downtown workers, residents and visitors.

City officials predict the project will create 680 jobs at construction and supply contractors with the initial route, or 1,080 if the extensions are included. The extensions also would raise the number of permanent operating and maintenance jobs from 20 to 35.

The council voted 12-3 to reject south side Ald. Bob Donovan's move to subject the project to a referendum in the spring 2012 elections. Donovan cited the potential utility costs and Morics' concerns about insufficient information, while deriding predictions of economic development along the line as "incredibly rosy."

Development predicted

Bauman said development had sprouted up along light rail and streetcar lines all over the nation. And east side Ald. Nik Kovac said the city had built more expensive projects without calling referendums on them.

Donovan was backed by Aldermen Jim Bohl, from the northwest side, and Joe Dudzik, from the southwest side. Bohl said too many unanswered questions remained about the project.

Kovac said unanswered questions were normal for any project when design is only 30% complete. He said taxpayers would be protected by provisions calling for a comptroller's review after design is 60% complete and operating plans are final.

Dudzik called the streetcar line "an absolute horrible idea" that would lead to higher taxes and utility bills.

"The people that vote for this are going to take the fourth-poorest city in the nation and drive it closer to being the poorest," Dudzik said. "I would say shame, shame, shame on you all."

Kovac argued the streetcar line would ultimately hold down taxes by attracting development that increases the property tax base.

"If you vote against this project, you're voting to raise taxes," Kovac said.

But west side Ald. Michael Murphy, chairman of the council's Finance & Personnel Committee, said he was still concerned the streetcars ultimately could become a financial burden on the city.

Aldermen agreed to cap the city's share of operating costs at an amount equal to the increased property tax revenue that would be produced by rising property values along the line. Under Barrett's plan, that money would come from the city parking fund.

Murphy, a potential candidate for Morics' job, joined Ald. Joe Davis Sr., Bohl, Donovan and Dudzik in voting against the measures to approve the project and to add its costs to a tax-incremental financing district set up to help fund the parking garage at the Cathedral Place development downtown.

Davis has called for a more extensive light rail system. Barrett, Kovac and Bauman said they viewed the initial line as a starter system that could be expanded if it is successful, with potential extensions to the University of Wisconsin-Milwaukee, Marquette University, Mitchell International Airport and various neighborhoods.

"This will remain controversial until people start riding it," and then begin clamoring for extensions to other parts of the city, following the pattern of similar systems elsewhere, Barrett said.

Voting for the streetcar and tax-incremental financing were council President Willie Hines Jr. and Aldermen Milele Coggs, Ashanti Hamilton, Robert Puente, Willie Wade, Jim Witkowiak, Terry Witkowski, Tony Zielinski, Bauman and Kovac.

The $54.6 million in federal aid that would be used for the streetcar was originally part of $289 million appropriated for a Milwaukee-area transit project in late 1991.

After some of the money was used for other projects, Barrett proposed the streetcar line in 2007. He and Gov. Scott Walker, then Milwaukee County executive, battled over the final $91.5 million until 2009, when Congress designated $54.9 million for the streetcar line and $36.6 million for county buses.