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Interstate 794's partial removal could significantly reduce the Milwaukee region's annual economic growth, according to a new study from a business group. Replacing the downtown freeway with improved surface streets would bring increased travel times affecting freight shipments, workforce commuting, and visitors access, the study said. The study by Madison-based DMP Development Analytics was commissioned by the Commercial Association of Realtors Wisconsin and released on Nov. 11. The study instead recommends rebuilding I-794 to improve safety, create new development opportunities, and "preserve critical regional connectivity," according to a statement from the Realtors group. The Wisconsin Department of Transportation is considering four options for repairs to the aging freeway. WisDOT is to choose a plan in early 2027, followed by final design work and a possible 2030 construction start. One option calls for replacing I-794 between roughly North Sixth Street and the Hoan Bridge's northern approach, near East Buffalo Street, with a four-lane, two-way Clybourn Street and extensions of North Cass Street and East St. Paul Avenue. Two other options focus on improvements that include reconfiguring on- and off-ramps, and extending Cass Street and St. Paul Avenue. A fourth option would make freeway repairs with no ramp changes. I-794's partial removal would free up 16 acres for new development. Two other options would free up 6 to 7 acres for development, according to WisDOT. The Realtors study considered the economic effects of freeway removal on the seven-county southeastern Wisconsin region, which produces an estimated $161 billion annually in goods and services. A hypothetical 1% reduction in freight movement resulting from freeway removal would slow regional economic activity by an estimated $118 million annually, the study claims. That would be tied to shipping cost increases that "may affect a business’s decision to locate or expand facilities," the study said. Also, a 1% slowdown in hiring by businesses would reduce regional economic growth by an estimated $444 million. That would be tied to commute changes that could affect businesses' ability to attract and retain employees, it said. Finally, the study says a reduction in visitors making long day trips to the area could slow economic growth by around $2 million annually for tourism-related businesses. The study included interviews with a wide variety of business operators. "Milwaukee needs an I-794 solution that strengthens, not weakens, our economic foundation,” said Tracy Johnson, president & CEO of Commercial Association of Realtors Wisconsin. Freeway removal backers dispute study conclusions Rethink 794, which supports freeway removal, took issue with the study's conclusions. "This biased study represents the status quo and apprehension toward transformational change that would strengthen the downtown core with housing, tourism, and business opportunities and ripple those benefits throughout the state and region," said Taylor Korslin, a Rethink 794 representative. Freeway removal could generate more than 3,000 housing units, and $535 million in property and sales taxes, over 30 years, according to a 2024 study sponsored by Rethink 794. Advocates also say removal would better link downtown with the Historic Third Ward, especially for pedestrians and cyclists. The freeway's removal would create more traffic on its replacement and other downtown Milwaukee streets − while also bringing more congestion to freeways which connect to I-794, said a WisDOT analysis released on Nov. 4. The department's continuing study of its options will include a land use analysis to be released in spring 2026. Freeway removal supporters say I-794 is underused and surface streets can handle the traffic. They cite the Park East Freeway's replacement by development on downtown's northern edge. The Realtors group agrees that freeway's removal created valuable development opportunities. But the group says I-794, unlike the Park East, "remains a critical connector for freight, workforce, and visitor traffic that underpins Milwaukee's economy." Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram,Bluesky, X and Facebook.
