Tempe Streetcar

On November 28, the Federal Transit Administration (FTA) announced that Tempe Streetcar has been allocated the full $75 million through the Federal Transit Administration (FTA) Capital Investment Grants (CIG). The project was allocated $50 million from the FTA in 2017 and with the approval of the final $25 million installment, it allows the project to move toward a fully funded grant.

“Tempe Streetcar is essential to our growing city,” said Tempe Mayor Mark Mitchell. “Today’s announcement shows we have a strong project with federal, community and regional support.” 

The competitive CIG Program provides funding for major transit infrastructure capital investments nationwide. Projects accepted into the program must go through a multi-year, multi-step process for funding consideration. 

Tempe is already one of the highest public transit ridership centers in the region and Tempe Streetcar will add another efficient transportation option. 

The project received a Finding of No Significant Impact (FONSI) from the Federal Transit Administration (FTA) in October 2015, which indicates that the project will have no significant environmental effect on the neighboring communities. The FONSI comes following the project’s Environmental Assessment (EA), which evaluates the potential impacts to the neighboring environment, including noise and vibration, traffic and parking, and historical and archaeological resources.

In August 2018, Valley Metro received approval from the Federal Transit Administration (FTA) to begin the initial phase of significant construction on the Tempe Streetcar. With this approval, Valley Metro will start work this fall on building the system’s rail trackway, power systems and street improvements. 

“This milestone would not have been possible without the support of our federal delegation and officials at FTA, for which we are grateful. With this approval, we can now move forward to keep this project on budget and on schedule,” said Tempe Mayor Mark Mitchell. “Many, including advocates in the local business community, have been working tirelessly to see this project come to fruition for the betterment of our community’s quality of life and economic sustainability.”

Preliminary construction and underground utility work is currently underway. In fall 2018, construction will shift into high gear. 

“The Tempe community has a long history of supporting public transit and is already one of the highest public transit ridership centers in the region,” said Robin Arredondo Savage, Tempe City Councilmember and Vice Chair of the Valley Metro Rail Board. “Streetcar will be a critical link in our total transit network, connecting strong neighborhoods, major business centers and regional events and destinations – supporting growing travel demand and business interest in Tempe and throughout the region.”

“This positive step demonstrates FTA’s favorable view of this project,” said Valley Metro CEO Scott Smith. “We look forward to working with FTA to receive our final grant agreement in the next few months. This project is unique because it is being built with a combination of local, regional and federal funds, and with $13 million in voluntary contributions from local property owners along the streetcar route.”  

Tempe Streetcar is scheduled to open in 2021. 

Shop local and save. The Shop On Rewards program offers customers with exclusive deals when they visit businesses along the Tempe Streetcar line during construction. Download the Shop On Reward card and to view the current discounts here.