INGLEWOOD – The Inglewood Transit Connector Joint Powers Authority has revealed the construction costs of the 1.6-mile Inglewood Transit Connector have swelled to nearly $3 billion.
According to documents released on the city of Inglewood’s website, the inflated costs have increased by $1 billion since the project was introduced to the public in 2016.
Initially, costs were expected to be $1.15 billion, then increased to $1.6 billion.
October 2023 update on Inglewood Transit Connector. FTA grant decision is imminent.
— numble (@numble) October 7, 2023
Reading between lines, FTA pushed estimate to $2.6b plus $200m (Prior estimate was $1.9b). Inglewood looking for $160m and is asking FTA to cover $1.5b. Project may be in trouble, but who knows? https://t.co/CBrbIJAKh0 pic.twitter.com/ahh0Ql9Ea7
“If all of the funds are not received we will halt the project,” said Mayor James T. Butts Jr. during the Oct. 4 regular city council meeting.
The Oct. 11 agenda for the ITCJPA discloses the project’s budget and how much has been received and expended in the prior fiscal year and estimates for the current fiscal year which is in alignment with the city of Inglewood’s fiscal year from Oct. 1, 2023 through Sept. 30, 2024.
Fiscal Year 2023 Revenue and Expenses
During Fiscal Year 2023 (as of August 31, 2023), the ITC expended $44,085,159, which was comprised of $42,049,356 in Measure R and $2,035,803 in TIRCP funds. Expenses for FY23 included $19,910,032 in right of way acquisitions, and $24,175,127 in consulting and other direct costs associated with project management, environmental analysis, procurement efforts, technical activities, project management, as well as legal and financial analysis.
Projected Expenses
During Fiscal Year 2024 (October 1, 2023 through September 30, 2024), staff projects approximately $283 million in expenses. Over this period, the ITC Project is expected to pass the following major milestones:
- Release of the Final DBFOM Request for Proposal;
- Be granted entry into Engineering with the FTA and undertake preparations for a FFGA;
- Execution of various Third Party Agreements;
- Advancement of utility relocation
- Securing additional grants and funding commitments;
- Evaluations, negotiations and award of a DBFOM Contract;
- Initiation of property acquisition and relocation efforts for businesses along the right of way; and
- Full establishment of the JPA as the oversight entity for the ITC Project.
Based on the Financial Plan that has been shared with the FTA, estimated project expenses over this period, inclusive of allocated contingencies over the fiscal year include consulting costs (technical, project management, legal and financial) of approximately $25 million, property acquisitions for project right-of-way of approximately $150 million, potential payments for work product to eligible proposers and initial design and construction mobilization work of up to approximately $103 million, and JPA systems, start-up and administrative costs of approximately $5 million. However, these expenses may change based on updates and finalization of the schedule. Staff will return to the JPA Board with an updated budget and financial projections at the time of contract award.
Expenses related to acquisition of property required for Project construction and operation are concentrated in the latter half of the fiscal year. Completion of these acquisitions will be timed in coordination with the procurement schedule.
Estimated Project Revenues
Funding for the estimated $283 million of project-related expenses over the fiscal year is projected as follows: $76 million in Measure R, $9 million in State appropriations, $162 million in State Transit and Intercity Rail Capital Funds, and $36 million from other grant sources including the RAISE Capital Investment Grants.
The City was soliciting employment applications for various jobs related to the ITC project but have since sent letters to potential applicants saying the recruitment has been postponed to a later date.