Tram budget debacle casts shadow over Streetcar plan

Tram budget debacle casts shadow over Streetcar plan

By Thanh Tan and KATU Web Staff

PORTLAND, Ore. - Remember how the OHSU tram budget spiraled out of control?

That incident still haunts the City Council, as it considers a nearly $147 million plan to expand Portland's Streetcar. The proposal includes extending the line into northeast Portland from OHSU, and would run up toward the Lloyd District, and back down Broadway into northwest Portland.

Many agree expanding the streetcar eastward would be good for economic development, but no one is sure exactly how much it will cost or how it will be paid for.

A project of this magnitude has many wondering how the city plans to avoid the mistakes made during the construction of the OHSU tram, which ended up costing three times more than the initial $15 million price tag.

"It just seems to me somebody had to be purposefully ignorant in order to have a $42 million gap between how much they told us it would cost, and how much it ended up costing," said streetcar rider and Portland resident Terry Johnson.

Mayor Tom Potter and the commissioners don't want to make the same mistake either.

"I'm hoping you saw the lesson in that project. I'm a little concerned," said Commissioner Randy Leonard.

Transportation Commissioner Sam Adams responded, "I'm responsible to the voters for this project."

Initial estimates released during a working session Tuesday indicate the project will cost about $147 million.

Adams said most of that amount would be covered by the state and federal government, leaving the city with a $27 million tab. His office is suggesting some of the money come from the city's general fund, and the remainder would be taken from urban renewal areas such as the Portland Convention Center (approx. $4 million) , Central Eastside (Lloyd Center area, approx. $6.2 million), and the River District ($17 million).

Some are worried the numbers could spiral out of control, as they did with the tram project.

"One you've lost faith in people, it's hard to get it back," said Johnson.

Even the mayor wants more answers.

"Quite frankly, between now and January when we have to make the final decision, I have to have a lot more answers in order for me to feel comfortable voting for this," Potter told KATU News.

Adams says changes have been implemented.

"Unlike when the tram was built, all staff now have to state the confidence level of their estimates," Adams said, adding there is "low confidence" in the numbers they are currently considering.

He acknowledges the public was misled before, and promises it won't happen again.

"If this project is over the anticipated budget and it just can't be done? I'll be the first to say we're not ready to do it," he said.

Adams says they'll have a much more accurate idea of the expansion costs in December after engineers have completed their preliminary work.

He and the mayor agree that unlike the tram project, Portland has built streetcar lines before, and that lends some credibility to the cost figures they're getting now.

If this plan goes through, construction would begin in September 2008. Service would start around February 2011.

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