Cost of Project Connect in Austin, Texas, goes through the roof
Written by RT&S Staff
Rising real estate costs and inflation have caused the cost of Austin’s Project Connect to almost double.
The cost to deliver Austin’s Project Connect has almost doubled, leaving officials scrambling to come up with a financial solution.
According to a Project Connect briefing memo, the original estimate of $5.8 billion to build two light-rail lines and a subway tunnel has been bumped up to $10.3 billion. Transit planners do not want to initiate new tax increases, but the possibility does exist.
The main culprit of the price increase appears to be due to rising real estate expenses. Original budget estimates for right-of-way purchases were $250 million. Now that figure is $1.19 billion. Inflation, which has driven up material prices, and changes in the project scope also are behind the cost increase. The length of the tunnel running through downtown Austin has been doubled, spiking the price to build to $4.1 billion.
Helping to ease the pain could be the $1.2 trillion infrastructure package. However, voters in Leander will vote in May whether or not to stop a 1% sales tax increase that funds Cap Metro. If the tax is eliminated $164 million for the project will be lost.
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