MADISON, Wis. -- The high-speed rail stop in Madison will be near the Monona Terrace downtown.

Gov. Jim Doyle announced Thursday that the Monona Terrace had been selected as the best place to locate the stop in Madison. He said that other cities have indicated that people might be more likely to take the train if it goes to Madison's downtown.

"The high-speed rail line that will connect Madison to Milwaukee to Chicago, and one day Madison to the Twin Cities, will stop in downtown Madison at the Monona Terrace," said Doyle at a news conference Thursday.

Doyle said he chose the downtown location over the other possible sites because of cost, ridership and demand. The other three options examined were at the airport, near downtown on the East Side and the Kohl Center on the University of Wisconsin campus.

"Over the past few months, I've heard from many people all along the line, including many in Milwaukee, Chicago, and they have made it clear that they would be more likely to take the train if the Madison station is downtown," said Doyle.

The city said it will now ramp up plans for a 1,200-car parking ramp and bike parking structure. Downtown businesses said it will spur development.

"We'll be working with the (Regional Transit Authority) to create an intermodal hub here, that will serve not just high-speed rail but also our Madison Metro busses, possibly inter-city busses and we hope someday commuter rail as well right here," said Mayor Dave Cieslewicz.

Cieslewicz said the Monona Terrace site is by far the best place in Madison for a train station and called Doyle's choice a courageous decision. He also said he'll ask that the new station would be named in Doyle's honor.

"We'll need more hotels. That leads to more retail, more restaurants, more places for people to visit and go," said Susan Schmitz, of Downtown Madison Inc.

A study will be done to decide just where a station will be located near the Monona Terrace. For those who feel they didn't get a say in the selection process, Doyle said public hearings were held on the issue.

"There were public hearings held several years ago as this plan was put together, so there have been public hearings," said Doyle. "And then, I love the city of Madison, but you can public hearing pretty much anything to death here."

Supporters of the Yahara station plan said they are disappointed. One area designer, Barry Gore, called the decision "shortsighted."

"As a professional planner and citizen I find the lack of an alternatives analysis and public process disturbing. The Campaign for Yahara Station's position is that we would like to see Yahara Station studied as well, and that in the long run we still believe that Yahara Station makes for a better multi-modal transportation facility," Gore said in an e-mail to WISC-TV.

Doyle said work on the rail line connecting Madison and Milwaukee will begin this year with it scheduled to be done by 2013. Wisconsin was awarded $823 million in federal stimulus money to construct the rail line.

Other stops include Brookfield, Watertown and Oconomowoc.

Cieslewicz said the terrace site is by far the best place in Madison for a train station and called Doyle's choice a courageous decision. He also said he'll ask that the new station would be named in Doyle's honor.

Republican gubernatorial candidate Scott Walker, who strongly opposes the rail plan, released a statement Thursday.

"Every announcement by Gov. Doyle and Mayor (Tom) Barrett on their controversial train boondoggle further commits our state to their pet project that taxpayers literally cannot afford. As governor, I will stop this misguided and wasteful project," Walker said in the statement.

Businesses near the Monona Terrace said the location selected for the rail station is great news for them.

The downtown location of the Great Dane sits about a block from the future station, and managers there said the rail would help bring in more customers and boost business.

"I think if people are willing to get on the train and travel, and get off the train, sure they're going to explore wherever they are at. I think that's the unique opportunity that the train has to offer," said Dario Tesmer, manager at the Great Dane.

Madison's mayor said there is a plan in place to work out parking issues in the area.

"There's a current above-ground parking ramp there called the Government East Lot. It's at the end of its useful life anyway, so it was going to be torn down. The plan was to put that parking underground; now we can do that and add more parking, and so this is the perfect urban solution," Cieslewicz said.

Cieslewicz said the ramp and bike parking structure would add up to about 1,200 new parking spaces, which would be tucked away on three underground levels. He said that would leave room on top for a public market, a multi-modal transit station and a hotel.

The city said the new parking won't cost taxpayers any additional money than what they pay to park downtown because the ramp needed to be replaced and the cost to do so has been factored into the rate schedule already in place.