A light rail stop will be installed at Mitchell after months of lobbying from the local traders' association, the Barr government has revealed ahead of Tuesday's budget.
ACT Transport Minister Meegan Fitzharris announced $10 million had been set aside in this year's budget for further design work on the second stage of the light rail network, from Civic to Woden.
Originally, only $2.1 million had been provided for technical work for this financial year in last year's budget.
Ms Fitzharris said the extra $8 million worth of technical work would provide the National Capital Authority with "all the information it needs to understand the benefits of the project", and inform the recently announced federal inquiry.
Light rail stage two needs to be approved by both houses of federal parliament because the route crosses Commonwealth land as it travels from Civic to Woden.
The inquiry will examine the impact of light rail on the parliamentary zone as well as the roles of the National Capital Authority and the Australian government in the project.
“The ACT government has welcomed the inquiry, and we are committed to working with all relevant stakeholders to ensure planning for this project responds to their needs so that we can deliver this important transport link for our city," Ms Fitzharris said.
Another $2.5 million will be spent on business cases for works in Woden to support light rail stage two, including for the redesign and construction of a new bus interchange in the Woden town centre, an upgrade of Parkes Way, a new park and ride strategy that includes light rail and the redevelopment of the the Yarra Glenn intersection with Melrose and Yamba Drives to accommodate the tram.
But the budget will also include $150,000 to design another stop along stage one of the network.
A stop will be built on Sandford Street in Mitchell in 2019-20, at least six months after the light rail will start running.
Two stops at Mitchell included in the original plans for light rail were dropped after lacklustre support, but after concerted lobbying from the newly formed Mitchell Traders Association, the government agreed to include infrastructure so stops could be included in future stages of the project.
Businesses in the suburb have been hit hard by the disruption and congestion caused by light rail construction, with one describing it as "worse than the GFC".
Phoenix Gym owner and Mitchell Traders Association president Anthony Manning was forced to downsize to a building less than half the size with fewer staff and classes, after clients stopped turning up.
A pre-budget submission from the association said the stop should be built as soon as possible.
"The Mitchell Traders' Association seeks to have the stop built and functional in stage one of construction as it would be more cost effective to have the stop completed now rather than in the future," it reads.
"A functional stop in Mitchell would provide the opportunity for workers and the community to use public transportation to and from the area for work and leisure.
"It should be noted that during the initial light rail consultation in 2011-2014, much of the buildings along Flemington Road were only just being built. Since then there have been a multitude of small businesses and government offices that have taken up residence in these buildings. The MTA urge the government to take this development into consideration."
It is understood the $150,000 is only for the design of the stop, not the construction.
It is unclear how this compares to the cost of other stops along the route, as the project is being built through a public-private partnership which prevents the disclosure of costs of individual elements of the construction.
The stop will be the 14th on the route from Gungahlin to Civic.
Other stops include Gungahlin Place, Manning Clark North, Mapleton Avenue, Nullarbor Avenue, Well Station Drive, EPIC and Racecourse, Phillip Avenue, Swinden Street, Dickson Interchange, Macarthur Avenue, Ipima Street, Eloura Street and Alinga Street.