A proposed streetcar line in downtown Los Angles may cost $55 million less than originally projected, lowering the price tag to $270 million, according to the final draft of the URS Corp. report.
Despite the project’s lower cost estimate, the city is planning to rely on a P3 to finance at least $100 million of the project.
Two years ago, voters living in downtown approved a special tax district which could raise up to $85 million. In addition, city officials hope to receive a $75 million construction grant from the Federal Transit Administration.
The project faces an uphill battle for federal funding since transit projects costing more than $250 million must compete for federal dollars against most expensive transit proposals, reported the Los Angeles Times.
The city plans to finish the streetcar line’s environmental review documents by spring 2015, and officials hope to receive the $75 million grant in the summer of 2016, allowing the project to begin by 2019.