For more than a year now, the city and county have been working to find a spot for a new maintenance barn for the streetcar.

The current barn has to be moved from its current home near the south end of Myrtle Edwards Park. The Seattle Art Museum's Olympic Sculpture facility is already under construction there and the barn is an eyesore that's in the way.

But at a Monday morning news conference, the city and county said they've got things all figured out.

"Today we are announcing an innovative solution that will keep the trolley and bring housing and economic development to the Pioneer Square neighborhood," said King County Executive Ron Sims.

The city and King County have agreed in principal to move the maintenance barn to Seattle's second oldest section. For about $9 million, they can build a facility on a parking lot at Occidental Avenue near Second Avenue.

It calls for the addition of not only the barn and housing but also a cafe and as well.

Mayor Greg Nickels says it'll give the city some flexibility, to create a system of street cars.

"One of the terrific opportunies we have with this proposal is to extend the streetcar east; extend it north... and connect it to the South Lake Union street car which ultimately we see going out to the University of Washington," Nickels said.

A few months back, the Port of Seattle stepped forward with an idea to build on its land, extending the tracks north on Elliot Bay and relocating the barn near Pier 86.

But Sims claims the bill on that would have run about $20 million -- just not worth the dough.

"As much as we appreciated the Port of Seattle's proposal and offer, the cost at $20 million could not be justified," Sims said.

If the new $9 million plan builds up steam, the city would be on the hook for $3 million while King County would pay $6 million.

The Seattle Art Museum is fine with the plan, as long as the current maintenance barn is moved by November.