We have a political situation in the United States where Democrats are too eager to build anything if it creates a job and the Republicans are too willing to call a project a boondoggle without first investigating its merit. It is this standstill that Josh Barro argues in How Republicans Made Both Parties Stupid On Fixing Infrastructure:
Barro uses the example of New Jersey Governor Chris Christie killing a proposed $10 billion railway tunnel into New York City;
It's hard not to apply a local context. The Southwest Corridor light rail alignment comes to mind. The preferred local alternative is one of compromise: taking federal money while it's still available, getting it done quickly, and bypassing Uptown in the process.
It leads us to a political question of cost-effectiveness.
The densest, most urban neighborhoods of Minneapolis will be passed up partly because we want to get it done quickly, and our decision-makers will argue that something is better than nothing. The result: we'll build a $750 million project through the least dense neighborhoods of Minneapolis where we're likely to see the least ridership and the least associated spillover development (there are excellent maps on Net Density outlining population density, access to employment and access to automobiles along both routes).
There is certainly merit to building transit in a cost-effective manner, but it shouldn't necessarily be done at the cost of creating an efficient system that connects meaningful places.
Minneapolis is getting the lesser of two routes due to a lack of political consensus on what makes good infrastructure. It's this orderly, but dumb, system that makes planners and politicians play to a bureaucratic equation that is supposed to guide local officials towards the best alternative. Only it never actually works out that way and it usually forces smart people into making highly compromised and less-than-ideal decisions.
With local officials wanting the Federal government to pick-up a majority of the tab on the Southwest Corridor, they are going to play ball with the cost-effectiveness ratio. Getting all the money locally, or through the State Government, would be an impossible political task regardless of the merit. Can you imagine asking the Republican Party of Minnesota to pay for the entirety of a light rail line? In fact, you'd have trouble selling the idea to most Democrats.