Menlo Park council leans to finish design of $56–65 million Middle Avenue bike-ped tunnel despite big funding gap

City staff recommended the Menlo Park City Council advance the Middle Avenue Pedestrian and Bicycle Rail Crossing Project to final design, saying a completed design would make the project more competitive for state and federal grants.

Public Works Director Azalea Mitch told the council the 35% design calls for an 88-foot tunnel (9 feet high, 20 feet wide) and that total project costs are estimated at $56 million on the low end and $65 million on the high end, including an estimated $5 million to relocate fiber lines. Mitch said the city has identified about $22.7 million in local and federal funding, creating a funding shortfall of roughly $34–46 million.

Why it matters: staff said finishing design to roughly 90% would make the city 'shovel-ready' and improve competitiveness for grants; Caltrain has a corridor strategy that could help place the project in regional funding queues if Menlo Park advances design.

Supporters said the crossing would improve safety and connectivity for children, seniors and residents traveling between neighborhoods, parks and schools and would support the city’s planned housing growth. Adina Levin said the tunnel would help link schools and recreation sites and argued that multiple funding sources and Stanford’s contribution could be brought to bear. Planning Commissioner Katie Baruzzi said the crossing is a critical link for planned growth and would not get cheaper over time.

Opponents questioned cost and likely use. Resident Sue Caden called the tunnel a "boondoggle" and said maintenance and public-safety costs were not clearly included; Michael Barclay warned of a significant sunk-cost risk and said the tunnel would likely be used by a small share of residents.

Caltrain design and delivery staff framed phasing as technically and financially risky. Sherry Bullock, Caltrain interim chief of design and construction, told council that splitting construction into phases increases mobilization and escalation costs and complicates on-the-ground integration, while building all elements at once is more cost-efficient.

Council response and next steps: members asked for more precise phasing costs, clearer funding timelines and the exact list of secured funding sources. Several council members said they were concerned about the price tag but inclined to move the design forward to 90% so the project could compete for grants; others warned the city should not invest heavily if funding to finish construction remains unlikely. Mayor Betsy Nash summarized the direction as approving work toward a revised MOU for final design and returning with a detailed funding strategy, phasing cost estimates for a tunnel-only option, and clearer roles for Caltrain and the city in administering future federal funds.

Earlier actions and procedural notes: the city acquired needed right-of-way in 2024 and previously approved the concept in 2023. Staff said final design and environmental documentation could be completed by March 2027 if the council directs the work and provides the additional design funding requested.

The study session is advisory; no construction authorization was made. The council directed staff to return with an MOU amendment and a funding strategy for consideration at a future regular meeting.