The Creede situation sounds a lot like what happened in Ft Collins, Colorado when it was proposed to restore a section of street car line down the grass media of one of the nicer streets.
There was a lot of fear stirred up by a small group of @#$%&, claiming it would draw all kinds of trouble to the area.
The city tried to stay neutral, but the opposition pressured them so much that everything had to be done by the book. To top it off, a very aggressive deadline was imposed. This caused much pain and undoubtably added much to the cost and the effort to complete the project. (A lot of this is documented in one of the Colorado Rail Annuals). If it wasn't for some strong wills and a good vision, they probably would have given up.
15 years after, the street car is thought to be a good neighbor and I hadn't heard any grumblings that it was built. Property values probably benefited, and it blends into the neighborhood very well.
The bottom line is that it would be a whole lot easier if everybody could understand the good the Creede line would bring. If they try to continue in this manner it's going to be extremely hard to work with everyone.