Portland City Council has exempted the Montgomery Park Streetcar Extension Project from traditional low-bid procurement requirements, clearing the way for a Construction Manager/General Contractor delivery model. The decision shifts the project’s timeline toward a targeted construction start in fiscal year 2029-30, according to portland.gov.
City officials evaluated the project through procurement guidelines to determine that specialized contractor input during design phases is necessary. The alternative contracting method allows the city to tap into value engineering and constructability reviews early in the process.
Streetcar extension costs reach 195 million dollars
The total estimated cost for the streetcar extension reaches $195 million, a low-confidence figure that accounts for purchasing up to 12 new streetcar vehicles. Funding relies heavily on the Federal Transit Administration’s Small Starts Capital Investment Grant program, which is projected to cover 50 to 60 percent of total costs.
Additional funding streams include Portland Streetcar Reserve funds, Northwest Parking Stakeholder Advisory Committee allocations, the Portland Clean Energy Fund, a Local Improvement District, and Regional Flexible Bond Funds secured through Metro. The City Council previously adopted the Portland Clean Energy Fund’s first five-year Climate Action Plan in 2023, setting aside $30 million via strategic program SP 28 to replace up to 12 streetcars.
Federal approval moves project to development phase
Federal momentum picked up on January 2, 2025, when the Federal Transit Administration formally concurred that the project met requirements to enter the formal Project Development phase in the Capital Investment Grants Small Starts program. The Bureau of Transportation’s Capital Investment Committee subsequently authorized $12 million in Streetcar Reserve Funds for this development phase.
Design and environmental clearance work is budgeted across fiscal years 2026-27, 2027-28, and 2028-29. Construction is slated to begin in fiscal year 2029-30.
Construction contract uses alternative procurement method
The estimated total for the Construction Manager/General Contractor contract ranges from $63 million to $73 million, based on preliminary design figures. Procurement Services and the Bureau of Transportation recommended the alternative method to shorten overall construction duration.
Prospective contractors will submit competitive proposals through a Request for Proposal process guided by administrative rule PCR-1.02. Once the city accepts the project as complete, the Bureau of Transportation must deliver a post-project evaluation to City Council.
Frequently Asked Questions About the Streetcar Extension
What exact route will the Montgomery Park Streetcar Extension follow?
The project extends the existing Portland Streetcar North-South line along NW 23rd Avenue north of NW Northrup Street to a new parallel one-way couplet along NW Roosevelt and NW Wilson streets. It also includes multimodal extensions on NW Roosevelt Street, NW Wilson Street, and NW 25th Avenue, alongside rehabilitation work on NW 23rd Avenue between NW Vaughn and NW Lovejoy streets.
What role does the Construction Manager/General Contractor play in this phase?
The selected contractor will provide input during the design process for value engineering and constructability reviews, assist in developing construction phasing, and supply specialized skills to shorten overall project duration.
How much funding has been secured through regional partners outside federal grants?
The Bureau of Transportation secured an additional $10 million in Regional Flexible Funds New Project bonding through Metro toward construction costs, alongside contributions from local stakeholder funds and transportation system development charges.