The city of Atlanta is not going to give up on having a streetcar line. It may be scaled back in the territory it will cover, and thus the cost, but the idea of a streetcar system lives on.

In February, Atlanta lost a bid for $298.3 million in federal stimulus funds for a streetcar system that would have run the length of Peachtree Street. Now the city is going back with scaled-down goals and a larger financial commitment from the city.

The city is preparing to submit a smaller $52 million bid to the U.S. Department of Transportation to build a streetcar line along a relatively small downtown loop. The 2.6-mile loop would go from Centennial Olympic Park to the King Center along Auburn Avenue. The system would provide short trips downtown while connecting people to other transportation modes like MARTA.

The total cost would be $72 million, with the city and Downtown Community Improvement District each providing $10 million.