Financing the Airport Light Rail Line in Portland, Oregon

Abstract

Airport MAX is a 5.5 mile light rail project in Portland, Oregon, connecting the city's public transit system to its airport. Bechtel Enterprises, the designer and builder of the facility, received in return for its services an 85-year ground lease on 120 acres of commercial property that it is developing with its partner, Trammel Crow. The $125 million cost of the light rail facility was financed jointly by the City of Portland; the Port of Portland; the Portland Development Commission; Tri-Met, the public transportation authority; and Cascade Station Development Company, the Bechtel-Trammel Crow joint venture. The interagency cooperation required to structure this complex undertaking was facilitated by a collegial management style and long-term working relationships among parties in the various organizations involved.