RENO — Plans for rail in the downtown Virginia Street corridor are progressing, according to a presentation of a 90-day assessment at the Regional Transportation Commission’s monthly board of directors meeting Friday.

RTC staff have been working with the city of Reno to develop a streetcar system that would stretch from the University of Nevada, Reno to the Reno-Sparks Convention Center and along Fourth Avenue and Prater Way, representing a construction investment of about $250 million, or $37 million per mile of rail.

David Jickling, RTC’s director of public transportation, said the next step for the project is determining its phases and how the segments would be constructed. How to finance the project, however, is the key, he said.

“It’s real easy to get excited about it, but the more difficult task is how we would fund that,” Jickling said. “Federal dollars might be available for accomplishing the construction of the project, which is about half the cost. We also have to figure out how to fund the operations.”

Board member and Sparks City Councilman Ron Smith asked Friday about the possibility of expanding rail to the North Valleys or Spanish Springs.

Jickling said working with the contour and steep grade of the roads would be a factor in deciding whether to move forward with the concept in those areas.

“There are definitely ways to get rail from downtown to Stead or from downtown to northeastern Sparks out into Spanish Springs,” he said. “The challenge is, where do we place that rail. Commissioner Smith was inquiring, obviously, into a regional interest and is there an opportunity for rail into northeastern Sparks.

“Certainly, you can never say there’s no way you might do that, but is it right?” Jickling added. “And because of extreme costs, you want to make sure you get the biggest bang for your buck.”

Operating costs are estimated at $1.2 million to $1.4 million per mile or $6 million to $8 million per year. The price tag for connecting downtown Reno to Sparks would be about $85 million to $100 million.

But Jickling said there are benefits to rail, including a cleaner environment with the incorporation of geothermal energy to power the cars.

It would also spur ridership, he said.

“It would make us competitive nationally,” he said. “Pretty much, when you talk about rail initially, that sounds exciting (to a rider). Buses have a (stigma) that we’re trying to help overcome. … Rail is just different enough for people who might not be thinking of themselves as bus riders or as rail riders. … The key is going to be when we show them the cost, will they be so enthusiastic?”

The board will hear more updates at next month’s board meeting on Sept. 17, he said.