As noted here before, a light-rail line from Minneapolis to the wealthy suburb of Eden Prairie was originally supposed to cost $1.2 billion for 15.8 route miles, or less than $80 million a mile. Now the projected cost has risen to more than $2 billion for just 14.5 route miles, or around $140 million a mile.
On top of this, the Metropolitan Council, which is planning the rail line, is in a dispute with a local railroad whose right-of-way Metro wants to use for the light rail. The railroad is concerned that light-rail construction will delay its trains. This dispute is being dealt with in a time-honored American fashion in which the railroad is suing the Met Council.
The Met Council is counting on getting $929 million from the Federal Transit Administration, but the FTA hasn’t signed a full-funding grant agreement and the Trump administration is resisting funding any projects without such agreements (though, as noted yesterday, it has made some exceptions). Local governments, however, would be responsible for covering all cost overruns including the recent $200 million increase in projected costs. Continue reading
