Jones said the dance studio at the former train depot was opposed to any bus terminal within a two-block radius due to concerns about young students' safety.
Eicks said council members met with the Madison County Council of Governments, which oversees federal grants in the region, concerning the alternative site and possible funding options.
Eicks said the $470,000 sought by the Smith administration was removed from the 2014 budget and placed in the city’s general fund.
“The funds were taken out because of the location of the terminal," Eicks said. “We de-funded the project.”
Smith believes the CATS terminal should be constructed in close proximity to the railroad tracks running through Anderson for use as a possible multi-modal transit facility.
“My focus has been on a rail transportation system instead of using express bus service,” Smith said of regional mass transit proposals. “We can use the existing dual track that remains in use today between Anderson and Indianapolis.”
He said when the Indiana General Assembly passed a mass transit bill it stripped out the option of rail service.
“The cost of a light rail system between Hamilton and Marion counties is almost $1 billion,” he said. “In Anderson, we have numerous opportunities for a dual track service. My goal is to construct a transit facility.”
Follow Ken de la Bastide on Twitter @KendelaBastide, or call 640-4863.