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The Maricopa Association of Governments recently approved plans to move forward with a 2.6-mile streetcar project in Tempe, Ariz. The project now will be added to Valley Metro’s long-range transportation plan and transportation improvement program.

Agency officials have been pursuing a streetcar system since completing a three-year study that evaluated high-capacity transit improvements to support Tempe and Chandler, and enhance the existing regional transit network.

The $160 million project will be funded in part through local funds from Proposition 400, a county-wide, half-cent transportation sales tax. In addition, Valley Metro plans to apply for federal funds to cover about half the construction cost.

“Streetcars, working in conjunction with other modes, is a next step in developing a total transit network that supports metro Phoenix growth,” said Valley Metro Chief Executive Officer Steve Banta in a prepared statement.

Next year, Valley Metro with work with the city of Tempe to convene a community working group to help staff determine the necessary vehicle, stop locations and street configuration for the project.

Construction is slated to begin in 2013 and be complete in 2016.