The Peachtree Streetcar, one of Atlanta Mayor Shirley Franklin's pet projects, is facing an obstacle that may be tough to get around: the city's $70 million deficit.

The unexpected fiscal crisis has City Council members scrambling to figure out how to pay for essentials like police officers and firefighters. Any extras, like the streetcar, are taking a back seat for now.

Louie Favorite/AJC (ENLARGE)

The office of Mayor Shirley Franklin says alternative funds are being sought for the Peachtree Streetcar.

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"There's no bigger advocate for public transportation than myself, but you don't go out and try to buy a bigger car than you can afford," said council member Kwanza Hall, who represents much of the area that would be served by the streetcar.

"We know we need [the streetcar], but we also have some higher, more pressing basic needs, like getting the budget right, making sure our streets are safe and clean, and making sure services are delivered to our constituents," Hall said.

Hall, who would be expected to introduce any streetcar legislation, held out the possibility that the project could make its way into this year's budget discussions. Plans call for the city to pay $47.5 million of the streetcar's $190 million tab, an amount that would be phased in over time.

Questions to Franklin about the streetcar project were referred to Greg Giornelli, the city's chief operation officer, who e-mailed a statement:

"We are fully supportive of the Peachtree Streetcar and are looking at all alternatives for financing. We continue to believe it is the right thing for the city and that it can and should happen in the long-term."

The plan includes 10 miles of track on two main lines: on Peachtree in Midtown and downtown; and an east-west loop linking downtown tourist spots.

To pay for the system, a special tax district would be drawn within about a quarter-mile of the tracks, raising property taxes on businesses and multifamily residences.

The mayor's streetcar committee, the Peachtree Corridor Partnership, is fine-tuning the proposal, with plans to hand it over to the mayor in a few weeks.

Supporters of the streetcar say it will be a catalyst for development and help boost tourism. The Peachtree line also could make it easier for tourists to get out of their downtown hotels and travel to the glitzy shopping district being planned by Midtown leaders on Peachtree.

But the proposal has drawn criticism as well. Some condo owners have said it's' not fair to tax them and not nearby single-family homes. And others have questioned the wisdom of spending money on a transit line that parallels the MARTA subway.

City Council members are asking hard questions, too. Councilwoman Clair Muller, chairwoman of the council's transportation committee, suggested on her Web site that the city "go back to the drawing board" and consider cheaper alternatives, such as buses built to resemble trolleys.