Peachtree Streetcar project faces stiff competition for grant

By Bob Keefe

The Atlanta Journal-Constitution

The man who will ultimately decide whether Atlanta will get as much as $56 million in federal funding for its proposed Peachtree Streetcar project said no decision has been made -- but he warned that the city faces very stiff competition for the grant money.

In one sign that the city may still be in the running for the money, U.S. Transportation Secretary Ray LaHood was scheduled to talk with Atlanta Mayor Kasim Reed, U.S. Rep. John Lewis of Atlanta and other state and local officials late Monday about the city's application for the streetcar money under the TIGER grant program.

"I know this TIGER grant is very important to the city of Atlanta, and I told [Reed] I'd be happy to listen to them," LaHood said.

Reed told The Atlanta Journal-Constitution that he and others planned to try to reinforce with LaHood that the city was putting plenty of its own money behind the $70 million-plus project as well, and that an initial phase would be finished in two years and create hundreds of job.

The DOT is expected to announce winners of the grants on Friday, Reed said.

LaHood said the demand for $600 million in TIGER grants far outpaces supply. Atlanta's application is one of nearly 1,000 applications from every state and U.S. territory, he said. The grants are similar to $1.5 billion in Recovery Act, or stimulus, grants awarded to cities and states in February.

"We are well oversubscribed ... and this time we have a lot less money than the last time, so we are taking a very close look" at every application, LaHood told the AJC.

The streetcar would initially run from Centennial Olympic Park to the King Center. Proponents say it's key to easing traffic congestion, increasing safety and helping the city better compete for convention and tourism business.

The city and the Central Atlanta Progress' Downtown Improvement District plan to put up about $20 million for the project.

Reed's office has estimated the project would create 5,200 jobs over 20 years.

"I still feel very good about our Peachtree Streetcar application," Reed said Monday.