A recently abandoned plan to build a light-rail line in Detroit won new life last week when the federal government agreed to give local officials 90 days to refine a less costly plan.
State and local officials, including Michigan Gov. Rick Snyder as well as local businessmen, met with federal officials last week.
U.S. Transportation Secretary Ray LaHood announced after the meeting that the Washington would allow 90 more days to create a trimmed-down plan.
The new line, cut down to 3.4 miles from nearly 10 miles, must be financially viable and be part of the city’s rapid bus system, according to local reports.
Private financing would cover nearly all of the estimated $125 million price tag, with federal dollars covering the rest, according to a tentative financing plan.
The original proposal, estimated at $528 million, featured Detroit issuing $125 million of federal capital-grant-backed bonds.
The debt would carry the backing of federal transportation-grant dollars and would not feature a backup pledge from the junk-rated city or the state.
