The Oregon Transportation Commission voted Thursday to move construction of the I-5 Rose Quarter Improvement Project to its next phase despite limited funding. The Oregon Department of Transportation will use $167.7 million to pay for work set to begin in 2027.

Last year, ODOT received a $450 million grant from the Federal Highway Administration via its Reconnecting Communities and Neighborhoods (RCN) program. This money was intended to pay for the Broadway Weidler Phase 1 package, including construction of the southern portion of the highway cover, completion of the southbound I-5 auxiliary lane and shoulder from I-405 to the Moda Center, and other improvements.

ODOT was able to obligate $67.5 million of the RCN funding before the remainder ($382.5 million) was rescinded by the 2025 Budget Reconciliation Act. The obligated funding can be used for preliminary engineering as well as work related to right of way and utilities.

There is $479.9 million in total funding available for the I-5 Rose Quarter Improvement Project, a staff report states. Travis Brouwer, ODOT deputy director of revenue, finance and compliance, said that funding is not sufficient to finish the project.

The available funding includes $380 million in House Bill 2017 Urban Mobility Strategy funding. Of that portion, currently $167.7 million can go toward phase 1 construction, Brouwer said.

The funding also includes $32.4 million in federal, state and local money for preliminary engineering and phase 1A construction.

“Phase 1A packages work in the corridor both in the north end near the I-5 interchange and at the south end at the I-84 interchange,” said Monica Blanchard, interim program director of the I-5 Rose Quarter Improvement Project.

Phase 1A is under way and scheduled to finish in late 2026. Its focus is on bridge maintenance, stormwater-related work, and early safety improvements. Subcontractors have been selected, the right of entry permit has been finalized, erosion control has been installed on site, and stormwater work on the drainage pond has started, Blanchard said.

ODOT completed a value engineering study and cost reduction workshop after May’s Oregon Transportation Commission meeting. A cost reduction concept of micropiles for the highway cover foundation has been adopted. According to ODOT, micropiles offer flexibility in construction and are better suited to address subsurface obstructions if encountered. Micropiles use smaller drilling equipment than other traditional foundation types and can be better mobilized in restrictive areas. The results are a $45 million cost reduction and no impact on the construction schedule.

ODOT will continue to consider other ways project costs can be lowered, Blanchard said. In fact, eight other concepts are being evaluated. However, officials have ruled out removing the second auxiliary lane on I-84 to Weidler Street, reducing the width of the highway within the highway cover, and using buried concrete arches in lieu of girders.

Moving forward, ODOT presented three construction options to the commission. Option 1 would be construction of phase 1B with the available $167.7 million. Crews would complete some of the operational and safety improvements on I-5 between I-84 and the Broadway/Weidler off-ramp, including widening over the Rose Quarter Transit Center and removing the pinch point at the I-84 northbound on-ramp. Construction would begin in 2027, after completion of phase 1A, and allow for a continuous transition from phase 1A to phase 1B.

Option 2 would delay construction of the full Broadway Weidler Phase 1 package until the third quarter of 2028 if additional funding is secured. ODOT would use remaining preliminary engineering funds, including the RCN grant, to complete design for all of phase 1.

Under option 3, construction funding for the Broadway Weidler Phase 1 package would be reallocated or reprioritized legislatively. Design of Broadway Weidler Phase 1 would be completed with federal RCN grant funding. The team would focus on completing the phase 1A construction package. The rest of the budget would be allocated to other ODOT priorities. ODOT staff did not recommend this option because the project cost would grow each year.

However, a fourth option was proposed by Metro, the city of Portland and Albina Vision Trust. In a letter, the partners proposed something similar to option 1 but with ODOT working with them on phasing and scope of phase 1B and phase 1C.

Commissioners voted unanimously to advance option 4, which directs ODOT to work collaboratively with local and regional partners to analyze the proposed construction scope and develop a feasible plan. ODOT will return before the commission in March or April with a progress report.

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The city of Madras has received approval to bring a 196-acre site inside the urban growth boundary for future industrial use, the Economic Development for Central Oregon (EDCO) announced Wednesday. The OK, granted by the Oregon Department of Land Conservation and Development, enhances Madras’ potential for economic growth, according to EDCO.

The collaborative effort to gain approval featured officials representing Jefferson County, the city of Madras and EDCO as well as business leaders and community members. Private investors will now be able to purchase and develop 196 acres of industrial property, thus presenting opportunities beyond the current lease-only options on the Madras Municipal Airport property, a press release states.

The site’s strategic location is adjacent to existing industrial areas near the Madras Municipal Airport. There will be easy access to essential infrastructure for development.

The site is poised to suit a variety of future uses, including high-tech and clean-tech manufacturing, advanced manufacturing, and IT infrastructure. The development of this site is anticipated to result in job creation and investment opportunities observed in nearby areas such as Prineville and Redmond, the press release states.

The city of Madras and its partners have begun planning to identify specific industry needs for development within the sites of the Large Lot Industrial Program and vacant industrial land, according to EDCO. The site will be reserved for large-scale industrial development in the long term.

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