DETROIT (AP) Michigan and Detroit officials have signed a deal for spending $25 million on a 3.4-mile, 12-station light rail line between the city’s downtown and Grand Boulevard in the New Center business district.
  

The Detroit News and the Detroit Free Press report the Federal Transit Administration announced the grant agreement Thursday.
  

The grant covers the first phase of the proposed Woodward Avenue Light Rail project in Detroit.
  

The money comes from federal stimulus funds.

A private group has arranged for about $125 million in private funding for the rail line, which could eventually cover the 9.3 miles from the Detroit River to Detroit’s northern boundary.

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