ODOT outlines project 'racetrack', funding and gaps on major highway projects including Rose Quarter and I‑205

Salem — Oregon Department of Transportation officials briefed the Joint Committee on Transportation Feb. 25 on the department’s project delivery process and the status and funding needs of major State Highway Fund projects, saying cost escalation, scope changes and external requirements have widened funding gaps on several anchor projects tied to House Bill 2017.

ODOT Director Chris Strickler described a standard project development “racetrack” that moves a proposal from planning and scoping through design, environmental clearances, rights‑of‑way, final plans and construction. He told lawmakers the department’s traditional key performance measure (KPM) — how projects perform from near final design to construction closeout — shows about 90% on‑budget delivery, but a longer view from initial scoping (when projects are first placed in the Statewide Transportation Improvement Program) to construction closeout shows on‑budget performance closer to 22%.

"That racetrack really does define some of the absolute mandatory steps as we look at a project development process," Strickler said. He added that projects face external dependencies including local jurisdictional permits, MPO endorsements and federal NEPA review that affect scope and cost.

Division Administrator Amy Ramsdell said ODOT’s strategic review recommended changes to give projects more time in a scoping window — a 10‑year rolling investment strategy — to reduce late scope changes and improve cost estimating. Ramsdell said ODOT has instituted project reviews, independent cost checks, and a risk register to track contingencies from design through construction.

Rose Quarter (I‑5) update

Megan Channel, project director for the I‑5 Rose Quarter Improvement Project, told the committee the project’s current preliminary cost estimate is $1.5 billion to $1.9 billion, based on a scope that includes one auxiliary lane each direction, shoulders, a single highway cover to reconnect Albina and a new bicycle and pedestrian bridge. The project currently has about $863 million in combined HB 2017 and federal funds; Channel said the gap is roughly $650 million at the low end of the estimate and about $1.05 billion at the high end.

Channel said the project has federal environmental approval (March 2024) and a Reconnecting Communities grant agreement of $450 million, but only the design portion ($30 million) and a $7.5 million utility relocation portion of that grant have been obligated with FHWA; the right‑of‑way and construction portions remain subject to a federal pause on grant obligations under a federal executive order. The Oregon Transportation Commission also allocated $250 million in HB 2017 urban mobility funds toward the project; ODOT is working with Metro to program those dollars into the regional TIP.

I‑205 Abernethy Bridge and corridor

Region 1 manager Ryan Winsheimer described the I‑205 Abernethy Bridge and corridor work. Phase 1 construction is roughly 50% complete, and ODOT projects a final Phase 1 budget of about $815 million. That figure reflects design changes, increased reinforcement requirements and inflation since earlier estimates. Phase 2 — a broader corridor package including a third lane in each direction for seven miles and additional bridge work — was estimated at $700‑$800 million (May 2024) but remains indefinitely postponed and unfunded.

Winsheimer said contractor and construction reality required more reinforcement ties for cross beams than originally designed; ODOT is hiring an owner’s representative with bridge construction expertise to assist oversight and claims accounting.

Center Street Bridge (Salem)

Region 2 manager Savannah Crawford updated the committee on the Center Street Bridge seismic retrofit. The project was initially scoped at about $60 million during HB 2017 planning. After additional field investigation and a split into two phases, current Phase 1 retrofit cost estimates are $130‑$200 million. ODOT currently has about $100 million committed for Phase 1 ($60 million HB 2017 funds and $40 million bridge funds), leaving a funding gap of up to $100 million. Phase 2 (west end ramps replacement) remains unfunded; ODOT said additional geotechnical and mitigation work drives the higher cost and that schedule calls for Phase 1 construction in summer 2026.

Newberg‑Dundee Bypass

Savannah Crawford also briefed the committee on the Newberg‑Dundee Bypass. Phase 1 (completed 2018) is funded; Phase 2A (widening OR‑219 and safety improvements) is under construction with a budget of about $46 million. Phase 2B (new connection to OR‑99 and interchange improvements) has design roughly 50% complete, with $6 million remaining in the current project budget; ODOT estimated Phase 2B would need about $210‑$300 million to complete design, right‑of‑way and construction across an estimated six‑year timeline. Phase 3 is unfunded.

ODOT staff told the committee that many budget increases arise from three categories: (1) scope additions requested by local partners or to combine projects for constructability and public impact reasons; (2) unforeseeable subsurface or structure conditions revealed only once work begins; and (3) regulatory or federal review changes requiring redesign or extra work. Committee members pressed for timelines and asked ODOT to provide additional written detail on funding balances, obligations and contingency plans.

The informational meeting concluded with committee members asking for follow‑up on fund balances, how HB 2017 allocations are held and how the department plans to prioritize and fast‑track work when appropriate. No committee vote or formal action occurred on the projects during the session.