A bill pending in Michigan Legislature would allow for the creation of a nonprofit street railway company — with the authority to issue bonds — to further an effort to build a $103 million light-rail system in Detroit.

The bill, sponsored by Rep. Bert Johnson, D-Detroit, would allow the Michigan Department of Transportation to set up transit development finance zones that would act like a tax increment financing district by setting aside future increases in tax revenue. The money would finance the public portion of the proposed new light-rail system along Woodward Avenue, a major Detroit thoroughfare.

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