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Norfolk's light-rail cost overruns put it in rare company

Posted to: Light Rail News Norfolk Traffic - Transportation

NORFOLK

When Hampton Roads Transit announces today what it hopes will be a final "cost-to-complete" figure for Norfolk light rail, the line will become only the fourth such project in a dozen years to bust its budget.

Of the 25 light-rail lines constructed since 1997, only Charlotte, San Diego and Minneapolis exceeded their contracted budget with federal authorities, according to the Federal Transit Administration.

Two had cost overruns while one expanded the scope of the project, which resulted in added expenses, said Paul Griffo, an FTA spokesman. The budget increases ranged from 6 to 17 percent.

While the latest numbers won't be revealed until today, Norfolk's light rail has been estimated to cost about $340 million, $108 million more than the price promised to the FTA - a 47 percent increase.

"Even if everyone went over budget, I still would not be happy if we went over," said Norfolk Councilman Barclay Winn, who has always questioned whether the light-rail budget was realistic. "It's been a painful experience for us and the taxpayers."

In the wake of budget overruns and his failure to inform transit and city leaders, Michael Townes was pressured to step down last month as president and CEO of HRT. Philip Shucet, former Virginia Department of Transportation commissioner, was hired to run the agency and control project costs.

"Skill-wise, construction-management skill-wise, we were way over our heads when this started," Winn added. "We've got good people in there now to get it done."

A light-rail line similar to Norfolk's opened in Charlotte just over two years ago. The 9.6-mile line was estimated to cost $426.8 million but finished at $462.7 million. The FTA said the added costs included higher-than-expected bids on stations and unforeseen geological conditions.

According to news reports, transit chief Ron Tober knew of the increased costs but failed to inform the City Council of the overruns for two months. Tober offered to resign, but city leaders urged him to stay.

Angry Charlotte residents successfully got a question on the next ballot seeking to repeal the half-cent sales tax that helps pay for light rail. The vote was 70 percent in favor of keeping the tax, yet Tober announced he was retiring because the attacks became "vicious and mean-spirited."

In San Diego, the Mission Valley light rail extension went from $431 million to $506 million. The FTA said most of the increase was for overruns in the construction of a tunnel and underground station.

The Minneapolis Hiawatha light rail went from $675.4 million to $713.2 million. The FTA said it's not considered an overrun because the additional costs were due to expanding the scope of the project to include a station in the Mall of America's parking garage.

Debbie Messina, (757) 446-2588, debbie.messina@pilotonline.com

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Big Dig-itis

What was wrong with the railroad tracks that were there? Long ago grandad(who lived in Ingleside next to the tracks)just stood beside them and the train-car would stop & pick him up; Looks like this new project has too many hands in the till.

Charlotte...

"what worked for Charlotte does not necessarity mean it will work here"

Charlotte learned what we refuse to..regionalization. They are one massive powerhouse, while our communities are like little fiefdoms fighting one another. Unfortunately, the only intercity cooperation that really works around here is the Fire Departments!

VDOT??

Is HRT somehow connected?

Save Money

Wouldn't it be less expensive to give a subsidy to the cost of cab fare instead of busses and light rail? How many people really use mass transportation in Hampton Roads anyway? Say you have a $20 cab fare from Norfolk to VB. If HRT would chip in $15 and the pre-approved HRT rider chipped in $5, would that work? Would it be less expensive than having a fleet of busses no one rides, or a light rail no one wants? Of course, you would have to pre-approve riders based on income and needs and give them an ID card they could swipe. It would even help the cab industry and create more jobs. Also, we could check a rider database and check trends of where people need to go and how to improve on mass transportation in the future…just a thought.

Finally Corruption of Local Politics will be exposed

Its been happening for way too long. Hopefully this will expose the Corruption that has plagued local politics, committees, councils, etc....
I just hope someone outside of the Vdot, HRT, state,and Cities will investigate this.
Its time to start holding people accountable and stop giving excuses and free passses.

deception

it's not an over run. The costs were deliberately mistated to get the project approved.

SOUNDS LIKE.....

FRAUD, WASTE and ABUSE. Deception by any other names, stinks as bad.

And wait until the legal expenses come in!

It's my understanding that there are also going to be legal costs, to Norfolk and/or HRT. Just wait!

it is to my understanding....

that there should be restitution cost for those who got paid, overpaid or down right took the money and ran. Give the money back to the taxpayers and build bicycle lanes instead.

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