Tempe is moving utilities to make way for a three-mile streetcar system and design for the project is approaching 90 percent completion.
The tracks will run along Mill Avenue and curve east onto Apache.
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In all, the project has an estimated $186 million price tag, but Tempe spokeswoman Amanda Nelson said the cost could rise.
“This has to do with there’s a higher number of projects like this that are competing for those materials and for labor as well as reconstruction efforts that are happening after the major hurricanes that we’ve seen throughout the country,” Nelson said.
Tempe staff will present the latest information to the City Council and the public on Thursday.
