Oops. Arlington Adds another $100 Million to Streetcar Cost

by James A. Bacon

Want to know why Virginians are so suspicious of big-ticket transportation projects? Voters feel like public officials are masters of the ol’ bait-and-switch: The governing class sucks the public into supporting an infrastructure project with a low-ball estimate, builds political support and institutional momentum, and then reveals massively higher cost estimates late in the game when it’s too late to back out.

That approach may be backfiring in Arlington County where, according to the Washington Post, county government has just conceded that the Columbia Pike streetcar project likely will cost $358 million, about $100 million more than previous estimated.

The streetcar project, billed as a necessity for increasing transportation capacity in a corridor expected to experience big traffic increases in the years ahead, had already inspired a political backlash before the new, higher number was announced. Last month, Arlington voters had elected a non-Democrat to the County Board for the first time in 15 years. John Vihstadt, a Republican who ran as an independent, made criticism of the streetcar project a centerpiece of his campaign. Opponents argue that a Bus Rapid Transit system would serve the need just as well for a much lower cost.

Dennis Leach, deputy director of transportation and environmental services, revealed the new estimate in a presentation to the Arlington Board yesterday.

In explaining the cost increases, Leach said he started with the U.S. Department of Transportation’s “extremely conservative” estimate from last year, which said the streetcar would cost $310 million — $60 million more than the county’s original projection. He added extra money to cover a larger contingency fund, a higher rate of inflation, higher engineering and start-up costs, and a proposed change in the size of the streetcars.

County Manager Barbara Donnellan characterized the streetcars as a “generational investment,” most likely an analogy to the investment in Metro in the 1970s that transformed the county from a bedroom community into a vital part of the Washington metro region’s urban core.  “We have not shied away from major investments in the past,” she said. “Every generation is asked to make decisions that benefit generations to follow. Building high-capacity rail in south Arlington . . . will allow us to grow fiscally and developmentally for years to come.”

But the same grass roots that elected Vihstadt is not likely to respond well to the revelation of higher cost. Populists are still agitated over the county’s infamous million-dollar bus stops. After taking a public relations beating, the county government redesigned the bus stops and announced that it had cut the price of the project almost in half — from $20.9 million to $12.4 million for 23 stops. However, while $500,000 per stop is considerably cheaper than the original design, it still is a far cry from $30,000 for a no-frills bus stop.

The big question at this point is whether the County Board will pause to re-evaluate the streetcar project based on the new estimate. Does the extra $100 million change the projected Return on Investment to the county in the form of higher property values along the streetcar line or avoided costs for roadway construction? Or has the governing majority expended so much political capital on the project that it is willing to surge forward under the airy pretext that a “generational investment” justifies any price?


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16 responses to “Oops. Arlington Adds another $100 Million to Streetcar Cost”

  1. Democratic Delegate Patrick Hope and defeated board candidate Alan Howze have called for a referendum on the Columbia Pike streetcar project. Given the cost, a good idea. Kudos to these two gentlemen.

  2. larryg Avatar

    well.. to dispel the idea that only liberal loonies screw up / low ball transportation estimates.. take a gander at this:

    ” Culpeper Supervisor Steve Nixon was blunt when Virginia Department of Transportation official Brent Sprinkel suggested that it might take more county money to re-engineer parts of the western loop bypass.

    “How can we have the confidence to let VDOT redo what they’ve already screwed up?” Nixon asked during Tuesday’s Board of Supervisors meeting.

    Nixon added that VDOT has already “wasted” $1.6 million in what has proven to be a faulty engineering study that underestimated construction costs by almost $8 million for the bypass linking U.S. 29 North and South.

    During a 30-minute grilling, Sprinkel acknowledged that the original estimate, based on a consultant’s report, was $10.4 million in actual construction costs. In the span of six months, that number has risen to $18 million.”

    http://news.fredericksburg.com/newsdesk/2014/04/01/culpeper-supervisors-take-up-cost-of-western-loop-bypass-3/

    this is by far not the only time – a decades old state agency has underestimated costs so it’s not just the streetcar folks.

    1. I don’t think it has anything to do with politics. It’s just damn expensive to build these projects, which is why they should not be built for “economic development” purposes.

      1. larryg Avatar

        agree… but just pointing out that a long-time player ostensibly just building a new bypass road – can make the same kinds of screwups as newbie advocates of transportation project for economic development.

        you do not need to be a do-gooder trying to build streetcars for economic development to screw up. You can be a long-time state agency with on-staff experts and consultants .. estimating a road for utilitarian purposes, not economic development – .. and still .. screw up or you can be estimating a bypass around Cville – and just flat out low-ball the project – completely independent of it’s supposed economic value.

      2. larryg Avatar

        and here’s another:

        Loudoun County, Route 606/Loudoun County Parkway and Old Ox Road – reconstruct and widen Route 606

        The 5.4-mile project will:

        Widen Route 606 to four lanes;

        Have a grass divider median designed to accommodate future widening of the road to six lanes, as provided in Loudoun County’s transportation plan;

        Include provisions for bicyclists and pedestrians; and

        Increase the mass of the existing earthen Horsepen Dam, which the road crosses, and include twin bridges and other improvements needed to carry the wider road over the dam. Route 606 is adjacent to Dulles International Airport, and the MWAA owns the dam.

        the cost? 77.5 million dollars –

        why is the road needed?

        The road is currently congested in both directions during peak hours

        in other words, commuter traffic. The State and Loudoun county are spending 77 million dollars to subsidize SOV commuting.

  3. JohnS Avatar

    If the road is congested then what is the alternative if not to improve it?

    Smart growthers aim to punish drivers, that’s really what they’re all about. Even if a road is badly needed they’ll oppose funding it because in their worldview congestion is a good thing- it forces folks to live in the dense TODs and urban areas favored by the liberal elites. Places like Arlington where no expense is spared in the name urban planning- million dollar bus stops and streetcar boondoggles. Profligate waste under the auspices of “smart growth”, only there’s nothing smart about it.

    As long as the vast majority of trips are automobile (and even SOV- gasp!) we have an obligation to improve roads. You want to toll them all fine, show me a user-pays system that makes any sort of sense and isn’t a wealth distribution scheme like DTR.

    I’m tired of arguing in hypotheticals about this stuff. Time to face facts: people are going to drive and the government shouldn’t try to stop them.

    1. Tysons Engineer Avatar
      Tysons Engineer

      “Smart growthers aim to punish drivers, that’s really what they’re all about.” I am? ha that is a disturbing simplification. Its not about punishing drivers at all, its about siphoning off demand by providing alternatives to people who CAN use other methods so that drivers have better roads with less people on them.

      “I’m tired of arguing in hypotheticals about this stuff. Time to face facts: people are going to drive and the government shouldn’t try to stop them.”

      Yea! Except the amount of road miles built in this country has gone up much faster than the actual vehicle miles driven in this country (which has actually gone down over the past decade)… so… what was your point again?

      Oh yes, the Jane Jacobs boogeyman is coming for your roads!

      1. larryg Avatar

        I’m a “believer” that if an urban area is safe, affordable, vibrant, and has amenities and good jobs – it will attract it’s share of folks (including those with kids if the schools are good) –

        People who live in townhouses, apartments, condos etc.. pay for their own internal roads and parking – if they have a car and drive.

        people who distance commute to single-family homes – have their subdivision roads maintained by VDOT and that’s what their gas tax revenues go to pay for whereas the folks who live in these other places are net donors of gas taxes to others.

        1. Tysons Engineer Avatar
          Tysons Engineer

          You are living in an alternative reality my friend

          1) The state gas tax prior to the new legislation did not even cover all maintenance costs. We were dipping into general funds. So the idea that gas tax was covering anything for urban people is false. If anything those general funds coming from high income (urban) areas from people who used less gas created a much higher effective rate on those people

          2) Most capital funds come from federal sources. Those federal sources for a decade again have come from general funds. See above as to why urban folks have subsidized suburban again

          3) Me, as an anecdotal case (i know always dangerous). Me and wife drive total 3000 miles per year for the past half decade since living in our urban area. Prior to new legislation, 3000 miles in my hybrid = 79 gallons of gas = just over $13 in gas tax paid. But we also paid about $160 in other vehicle taxes that went towards roads (not to mention the general funds amount). $173 for 3000 miles driven or about 5.7 cents per mile. A person living in burbs driving average 12000 miles per year in my car uses 316 gallons of gas, or almost $54 per year. Same vehicle taxes shared by similar cars equals $214 per year or 1.7 cents per mile. When you drive less, you are paying more per mile even under the old legislation.

          4) Now the new legislation. Sales tax dependence. So 3.5% tax on gas price (right now ~12 cents per mile) plus an increase from 5.0 to 6%, so an additional 1% sales tax. Me and wife spend around 15k a year in sales taxable items, so $150 now going specifically to transpo, plus 12 cents per gallon for ~$10 plus the same $160 in car fee. Total of $320 per year for 3000 miles or 10.7cents per mile. A person in the burbs driving 12k miles spending the same amount per year of 15k, will now pay $38 in gas tax plus $150 in sales tax plus $160 in car fees for $348 in transpo tax for 12000 miles or 2.9cents per mile.

          So tell me again how the urban folks who drive less as a whole are subsidizing those suburbs again?

          Now, a portion of those funds atleast now go to NVTC who has been more willing to spend on transit (though not nearly enough), but its only about 1/3 of the new sales tax revenue generated. In large, the vast majority still goes to road projects in the burbs to add more lane miles. I am willing to pay more if it means we get new infrastructure, and yes it sucks that sooo much of it has to continue to subsidize the burbs, but I guess its the only way I can get a damn cross walk installed so I’ll bite the bullet AGAIN.

          But please don’t tell me I am mooching off of suburban gas tax when reality is not on your side.

          1. larryg Avatar

            we’re of the same mindset … I just pointed out what you did…

            but not sure about your cacluations.. you need 18 cents per gallon for the Feds.. and I no longer can do it for Va since they changed it to a percent at the rack.

            but you should be able to get a good per capita estimate for the .5% sales tax.

            the last part – sales tax on new cars – is a huge bite … for most cars… so folks who buy new cars are paying much more.

            but I agree with you – the Va gas tax generates about 15% of the transpo money.

        2. Tysons Engineer Avatar
          Tysons Engineer

          Misread your statement, sorry that last sentence confused me. My below response below stands, sans the you living in an alternative reality, you seemed to have a decent grasp on reality 😉

  4. larryg Avatar

    re: ” If the road is congested then what is the alternative if not to improve it?

    Smart growthers aim to punish drivers, that’s really what they’re all about.

    maybe.. but it’s not me – I’m a serious skeptic of Smart Growth

    “Even if a road is badly needed they’ll oppose funding it because in their worldview congestion is a good thing- it forces folks to live in the dense TODs and urban areas favored by the liberal elites. Places like Arlington where no expense is spared in the name urban planning- million dollar bus stops and streetcar boondoggles. Profligate waste under the auspices of “smart growth”, only there’s nothing smart about it.”

    I oppose forcing people to live anywhere they do not want to live – even if it is a proliferate consumption – but the folks that prolifically consume should be the payers – not others.

    “As long as the vast majority of trips are automobile (and even SOV- gasp!) we have an obligation to improve roads. You want to toll them all fine, show me a user-pays system that makes any sort of sense and isn’t a wealth distribution scheme like DTR.”

    then tell me what VDOT has chosen to put HOT lanes on new roads where the people that use those roads in SOVs pay for it – not folks who carpool or don’t commute 50 miles to work?

    “I’m tired of arguing in hypotheticals about this stuff. Time to face facts: people are going to drive and the government shouldn’t try to stop them.”

    I totally agree. But the govt is no longer going to build them new roads to drive on… for “free”. Up in Congress right now are 2 significant changes:

    1. – cut transportation funding in half or more – to be limited to only what the gas tax generates with no extra general revenue money.

    2. – a proposal to allow tolling of existing interstates – to pay for improving /expanding the tolled sections.

    Virtually all new roads in Va come from Federal funding not the state taxes.

    if the Feds cut Fed money – Va would lose most all new construction.

    what is a solution to that?

    Virginia has chosen tolls – in NoVa and in Hampton…

    and if we cut the Fed funding and allow tolling on existing interstates – why is likely to happen?

    what’s a better solution?

  5. larryg Avatar

    I think once a region has enough major toll facilities (automatic by gantry or camera, not booths) – the number of people with transponders will make it more feasible to build new ” connecting” roads and people can choose if they want to save money by trading increased travel time.

    but a question here.

    the example I gave – widening a congested road.

    you could characterize what the improvement would provide in travel time savings at peak hour.

    that can be done.

    but would you have a way to calculate – cost-effectiveness?

    what would be the “savings” for people after the road was built and how would you decide on a per person basis – would be worth the 77.5 million dollars for a 5 mile segment?

    How many minutes of time saved is “worth it”?

    see my primary point in contrasting the street cars to this project was to point out that trying to quantify the ADD VALUE is not so easy.

    we make a deal about it with respect to Smart Growth but we sort just fly under the radar for road projects even though I’ve yet to see a good method for calculating value for road expansions – either.

    what say you?

  6. larryg Avatar

    If someone lives in an apartment or townhouse say 5 miles from where they work and another guy live in a big house 40 miles from where he works and the roads they travel are both congested but the guy who lives five miles away gets’s there in 15 minutes while the guy who lives 40 miles takes 70 minutes and does not pay enough in gas taxes to expand the road – then how do you expand the road without diverting gas taxes paid by others who live closer?

    is that also – a “wealth distribution” issue?

    see – here’s the problem.

    the gas tax currently only provides 1/3 of the funding for transportation in Va. 2/3 of it comes from the general sales tax and sales taxes on new cars.

    if both guys buy new cars and buy the same amount of goods taxed by the sales tax – do both of them receive back their equivalent share of their taxes paid – or by building the road in Loudoun and not improvements where the closer-to-work guy lives (perhaps fast transit or even streetcar)…

    so I guess the question is if you pay sales tax on goods and a new car – should that money go to build a road for a guy that lives farther from work?

    or should the guy that lives closer in – should his general sales tax and tax on his new car – be spent on something that benefits him?

  7. larryg Avatar

    and if you spend the money that both of them contribute to relieve congestion of the longer-distance commuter – are you subsidizing/incentivizing longer distance commuting?

    you did seem to be okay with tolls. so am I.

    My view is that if someone chooses to live further away – and they are willing to pay for the improvements needed to provide a less congested commute – then fine.. we make choices and if we’re willing to pay for those choices – it is no business of anyone to “force” you to live closer to work even if they think it is “smart”er than your choice.

  8. larryg Avatar

    re: ” Oops. Arlington Adds another $100 Million to Streetcar Cost”

    “oops, Loudoun county adds ANOTHER 77 million dollar road – 5 miles worth – to “reduce congestion”.

    see any parallels?

    how about adding up all the money spent on roads for commuters verses transit for commuters?

    we spend across Virginia more than 2.8 billion dollars a year on roads primarily to “relieve” congestion and well over 1.5 billion of that money comes from sales taxes and general revenues not gas taxes.

    https://www.dmv.virginia.gov/webdoc/pdf/tracking_mar14.pdf

    page 3 and 4.
    anyone got any opinions on how much of that non-gas-tax money should be fair game for transit and not roads?

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