With an expected completion date in 2024, the Valley’s light rail system will be getting a 5.5-mile extension, bringing it to a total of 32 miles long. The newest extension will run from the downtown Phoenix hub to Baseline Road in South Phoenix. This extension will add eight stations and two park and rides, as well as feature 18 artists for a total of 46 stations and 13 park and rides on the 32-mile stretch. This is the first of seven high-capacity extensions planned to ultimately reach the goal of a 66-mile light rail system by 2034.
The extension is estimated to cost approximately $1.4 BILLION. How is this being funded you ask?? Well, the Department of Transportation has awarded Phoenix with a grant of approximately $530M through the Capital Investment Grants program and the remaining funds will come from numerous other federal and local sources such as Federal Highway Administration, Surface Transportation Block Grants, Phoenix Proposition 104 sales tax revenues, and Maricopa County Proposition 400 Public Transportation Excise Tax revenues.
Currently, it is estimated that 45,000 riders rely on the light rail daily, and with this extension the average will only increase. It is also estimated that more than $14.4 billion in development has occurred, both private and public capital investments, throughout the current 28 miles of light rail track. That averages at $514M per mile of added development. If you calculated, we could predict that the new extension will add $3 billion in development alone. This will have a huge economic impact, provide new opportunities and be a positive change for the South Phoenix community. This is a very exciting opportunity for the community, and we are anxious to see the end results. Visit valleymetro.org for more information on the project.
If you have any questions, please contact your Henry+Horne advisor.