The cost of building the Atlanta streetcar is likely going up nearly $10 million.
The Atlanta Journal-Constitution and Channel 2 Action News reported earlier this year that the company managing the streetcar’s construction, URS Corp., was asking for more money.
Now negotiations have yielded a dollar figure: In a board meeting in two weeks, MARTA will vote on a proposed $9.9 million cost overrun, according to transit agency spokesman Lyle Harris.
City staff said earlier that streetcar workers had run into a mess of unexpected pipes, wires and spaces underground as they dug into century-old streets to prepare the streetcar bed. A city spokesman said it was like “spaghetti.”
MARTA isn’t paying the money, but the agency is taking the approval vote on the overrun because it is in charge of the contract with URS.
If approved, the overrun will bring the total budget allowed for the streetcar to $99 million, Harris said, though the actual amount spent could be less than that. Although the budget currently stands at $93 million, there was a contingency buffer built in, much of which has been spent, according to MARTA.
A spokesman for the city of Atlanta, Reese McCranie, said officials hope the existing contingency buffer and a grant from the Atlanta Regional Commission will cover the rise in cost from the contractor.
Officials with the other streetcar partner, the Atlanta Downtown Improvement District, said they would be sticking with their original funding commitment.
Overall, the cost has increased from $72 million since the project was first awarded in 2010. City officials note that much of that was due to additional improvements the city decided to fund after rushing to approve the original project.
They added that, with such a pathbreaking project, they were always prepared for the possibility of unexpected costs.
The city also is seeking funds to increase the frequency of the planned streetcar service. It’s a priority to run more than one car every 15 minutes, as currently planned, Atlanta Mayor Kasim Reed said, but that would take even more money.
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