Business Person of the Year

Ostby gets all aboard for rail extension

Karl Ostby Chairman of the Southeastern Wisconsin Regional Transit Authority and president and CEO of Southport Bank, Kenosha

As chairman of the Southeastern Wisconsin Regional Transit Authority, Karl Ostby has a near impossible task.

The president and CEO of Southport Bank in Kenosha needs to bring together three of Wisconsin’s five largest communities and get them to agree on a commuter rail line from Milwaukee to Chicago. Then he has to convince them to spend millions of dollars per year making it happen.

Ostby made it happen in 18 months, and he is a single vote away by the state Legislature from making the 33-mile, Kenosha-Racine-Milwaukee commuter rail expansion a reality.

Julia Taylor, a member of the Regional Transit Authority, said Ostby deserves credit for moving the controversial project forward.

“He’s shown a great deal of leadership to advance the cause,” she said. “It’s not easy bringing three cities and counties with differences together.”

Ostby was appointed to the RTA by Kenosha County Executive Allen Kehl and voted chairman in 2005. He’s a good fit for the authority because of his business background, which helped the committee gain the support of major businesses in southeast Wisconsin.

“He comes from the business community and is somebody people feel comfortable with,” Taylor said. “His strength is his leadership skills. He keeps the meeting moving forward, but makes sure people don't feel excluded.”

Ostby heads the RTA while also running Kenosha’s only locally owned bank.

Southport, organized by Ostby in 1997, has more than $400 million in assets and has been profitable since its eighth month of operation. He also has served on several community and state boards.

Kenosha Mayor John Antaramian described Ostby as tenacious in advocating for the commuter rail extension.

“He’s been a tremendous help,” Antaramian said. “He’s unwilling to give up on making this happen.”

He added that Ostby is driven by the belief that the long-term economic development of Kenosha and all of southeast Wisconsin is dependent on seeing the Chicago-Milwaukee corridor as a regional economy.

Ostby has backed that belief by working long hours in support of the KRM extension, which studies show will be a big boost for southeast Wisconsin.

Commuter rail is expected to draw more than 1.5 million riders per year and give residents and businesses throughout southeast Wisconsin access to more jobs and employees.

A 2007 study also concluded that KRM would improve the quality of life in Kenosha, Milwaukee and Racine counties by increasing access to arts and entertainment, reducing congestion on Interstate 94, promoting tourism and linking the region to educational and research facilities.

“For a businessman to take up as much time from his business as needed is remarkable,” Antaramian said. “It’s a difficult proposal, and to see it move forward required someone who will take the time and work with all politicians.

“He's been tenacious at getting this done.”

The KRM failed to gain state budget approval, but Ostby said he plans to continue his efforts to get the rail line established.

By Dustin Block