Settlement Agreement Reached for Streetcar Manufacturing Delay

Tucson will collect about $1.7 million in liquidated damages from the company that was late in delivering streetcars, delaying Tucson's opening of the transit line. Vigor Works, formerly known as Oregon Iron Works, was the parent company of now-closed United Streetcar, which built Tucson's eight streetcars. The first vehicle was delivered nearly a year late.

Under Tucson's contract with the company, the City could have collected up to $2.9 million in late fees. Vigor disputed the amount it owed the City, and the two sides reached a settlement agreement this week. The damages won't be paid in the form of cash, as the agreement allows the company to provide parts and labor beyond the original contract amount.

Read more from the Arizona Daily Star.