Ballooning costs.
Next stop for Northstar's cost estimate: $307 million
Federal concerns have driven up the commuter rail project's price tag by another $18 million, the second rise in four months.
Laurie Blake, Star Tribune
Last update: April 17, 2006 – 9:38 PM
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In this 2004 photo, a freight train passes beneath the Round Lake Blvd. overpass in Coon Rapids along the proposed route of the Northstar Corridor commuter rail line. The cost estimate for Minnesota's first commuter train has ballooned by $42 million since November, 2005.
JIM GEHRZ, STAR TRIBUNE
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The cost estimate for Minnesota's first commuter train has ballooned by $42 million since November, after federal transit officials told the state its previous projections were unrealistic.
Project officials now think building the Northstar rail line from downtown Minneapolis north to Big Lake will cost $307 million, 15 percent more than they projected in November.
In the past four months, the cost estimate was revised upward twice -- most recently on April 6. State transportation officials, however, didn't alert legislators about the latest cost increase -- $18 million -- before the state House voted Wednesday to put $50 million into the project.
"Absolutely it's something we should have known," said Rep. Dan Dorman, R-Albert Lea, who voted for the Northstar funding. "But I don't support it blindly." He is concerned that the project doesn't yet have a green light from the freight railroad whose tracks Northstar's trains will use.
Scheduled to start service in 2009, Northstar would carry commuters from Sherburne, Anoka and northern Hennepin counties into downtown Minneapolis. The construction cost would be paid for by the federal and state governments, along with the three counties.
What's increasing
Until November, that cost was estimated at $265 million. But project officials added $24 million to the budget to remedy skimpy planning for inflation and construction surprises.
Mark Fuhrmann, Northstar project director, said project officials planned for inflation cost increases of 2.7 percent, but the Federal Transit Administration thought it should be 4 percent. Correcting that added $14 million to the budget.
In similar fashion, project officials planned $8.5 million to cover unexpected costs, which was 3 percent of the budget -- and the federal officials thought it should be 8 percent. This added $10 million to the budget.
In April, the federal officials found too little budgeted for hiring a firm to keep the project on schedule and within budget. An extra $13 million was added. And another $5 million was added for contingency costs.
Fuhrmann said he does not expect the budget to be adjusted again.
Bob McFarlin, assistant to the state's transportation commissioner and Gov. Tim Pawlenty's representative in the negotiations with the railroad, said he did not convey the price change to legislators primarily because the state's share of the cost hasn't changed, despite the higher overall budget. The number isn't final, he added, because the negotiations with Burlington Northern Santa Fe aren't complete.
The $18 million added to the project this month will be divided this way: $9 million from the federal government, $4.5 million from Anoka and Sherburne counties, and $4.5 million from the $60 million requested from the state, said Mike Schadauer, deputy project director for the Minnesota Department of Transportation.
Anoka County has already approved its share and Sherburne is scheduled to vote on it today.
State Capitol reaction
"No surprise," said Rep. Mary Liz Holberg, R-Lakeville, an opponent of Northstar, said of the increased estimate. "It's very typical. It's typical of these transit projects. ... Costs continue to rise."
Rep. Alice Hausman, DFL-St. Paul, a supporter of the project, said rising costs on a transit project should be expected just as they are on such road projects as the Crosstown Hwy. 62.
"Only opponents will think it's significant," Hausman said. "Once you accept the fact that you are going to have a public mass transit system as an alternative to roads, you view that as you do every other building project."
To finalize $60 million in state funding for the project, which is pending at the Capitol, Dorman advised project officials to "go into super speed on these negotiations with Burlington Northern and button that rascal up. It's time to get this thing moving forward. I don't know how long we are going to drag it out."
Remember this is Smoo talking here lol. Quick & to the point without a lot of BS.
that is about as bad as one of my co-workers lives in columbia and commutes to our Rockville office each day.
by the beltway.
there are a lot of people that represent the DC/Metro area on these boards 
