TIGER VII DISCRETIONARY GRANT APPLICATION Portland Marine Terminal Freight and Jobs Access Project

Multimodal Improvements to Grow Exports, Jobs, and Community Connections

Project Location: Portland, Project Type: Capital Project Tiger Funding Request: $11,033,000 WWW.PORTOFPORTLAND.COM/TIGERVII.ASPX TABLE OF CONTENTS

I. Project Description...... 1

Background...... 2 Specific Challenges...... 4 Addressing the Challenges...... 5

II. Project Parties...... 9

III. Grant Funds and Sources/Use of Project Funds...... 10

IV. Selection Criteria...... 12

Primary Criteria...... 12 Secondary Criteria...... 23 Benefit Cost Analysis...... 24

V. Project Readiness...... 27

VI. Planning Approvals...... 29

VII. Federal Wage Rate Certification...... 29

VIII. Letters of Support...... 30 PROJECT DESCRIPTION

PROJECT NEED International trade plays a substantial role in the economic viability of Portland and the state of The Port of Portland Oregon—and in the financial success of hundreds of manufacturers and farmers throughout the Pacific Northwest and across the . Portland ranks twelfth among the largest 100 metro areas and City of Portland are in the United States in terms of export value in 2014. At the state level, exports accounted for requesting $11,033,000 in $20.9 billion in 2014, up 87 percent since 2004. Nearly half a million Oregon jobs are supported by TIGER funds to construct trade. Access to one of the best multimodal transportation hubs on the West Coast, the Port of Portland Rivergate Industrial District has allowed Portland and Oregon businesses, not to mention shippers a rail overcrossing serving halfway across the continent, to reap benefits from efficient and cost-effective connections to domestic a marine terminal, and international markets. Because the Port of Portland is one of the four identified top freight gateways on the West Coast, smooth and efficient freight movement at the Port affects both the local economy and provide a bike and and the nation’s export health. pedestrian connection to an However, the infrastructure serving Portland’s import/export hub has not kept pace with growing employment center from a volumes and business needs, creating bottlenecks and safety issues for shippers, manufacturers, and low-income residential area. workers. The result is a transportation problem that threatens to hamper Portland’s ability to provide international market access for the Portland region and Oregon businesses, further constraining their ability to grow and add jobs. Given that the Port’s exports include products from agricultural, electronic, and manufacturing enterprises from Oregon, Washington, Idaho, and multiple Midwestern states, the multimodal improvement project proposed here not only has many local benefits, but will also support national exports growth. In addition, physical constraints at the Port’s terminals create barriers to employment for one of Portland’s largest low- and middle-income areas. Removal of these physical impediments will lead to increased business expansion opportunities at Port terminals, which translates into more employment opportunities and family wage jobs that promote Ladders of Opportunity.

I. PROJECT DESCRIPTION The Portland Marine Terminal Freight and Jobs Access Project (Project) will directly address congestion created by an at-grade rail crossing at the entrance to the Port of Portland’s Rivergate Industrial Park (Rivergate) and Terminal 5, while simultaneously providing a safe and accessible connection to jobs from Accessible by rail, highway, ocean vessel and river barge, the Port of Portland is an export gateway for North America

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Project a nearby low-income community. The largest industrial Area district in the City of Portland, Rivergate contains nearly half of the marine terminals, thousands of acres of industrial land, and more than three-fourths of the marine terminal acreage in the Portland Harbor. The City of Portland (City) is partnering with the Port on the Project to maximize the millions of dollars in public and private investments that have been made in the area, and to support vital exports and job growth. Without transportation infrastructure improvements to increase efficiency, safety, and mobility in Rivergate, the value of previous infrastructure investments cannot be fully realized. The two Project partners are requesting a TIGER VII discretionary grant of $11,033,000 to complete Project funding and proceed with a solution to the Rivergate Industrial District’s growing transportation challenges. The Project’s goal is twofold: (1) Construct a grade separation over a busy marine terminal rail lead (and associated road/intersection improvements), and (2) Complete a missing transportation link to a regional multi-use bike and pedestrian connection on North Columbia Boulevard to provide affordable access between an economically distressed neighborhood and a major industrial employment center. These project components—with a total cost of $19,253,000—have been vetted In the past six years, with a comprehensive review of construction costs, schedules, permits, and related issues. The Project has public and private $8,220,000 of funding in hand and is poised to begin once this final funding piece is secured. Ultimately, the Project will support future marine terminal expansion, safety for users of the existing businesses, and investments to improved access for the diverse community nearby. improve Rivergate Industrial District BACKGROUND have totaled $409.3 Because Portland is the economic engine of the State of Oregon and a trading hub for importers/exporters million. from the Pacific Northwest to the Midwest, any challenges to its multimodal transportation infrastructure have far-reaching impacts. Consequently, maximum functionality of the Rivergate Industrial District—a major link in that infrastructure system and a primary export gateway—is crucial both to

Portland Marine Terminal Freight and Jobs Access Project www.portofportland.com/tigerVII.aspx 2 PROJECT DESCRIPTION

businesses and workers locally and to exporters across the United States. Located in the Portland Harbor at the confluence of the Willamette and Columbia rivers, Rivergate is home to three marine terminals (Port of Portland Terminals 4, 5, and 6), that in 2014 exported 10 million short tons of grain and mineral bulks from Terminals 4 and 5, and 87,968 containers (TEUs) of goods, and 48,442 Ford vehicles through Terminal 6. Rivergate is also home to manufacturing and distribution businesses, and 100 import/export businesses, such as Nordstrom, Columbia Sportswear, Ford Motors, Steel, and Weyerhaeuser, making it a key employment center in the Portland region. Directly south of Rivergate is the St. Johns neighborhood, a culturally diverse and lower-income residential community. At issue are a road and at-grade rail crossing serving Port marine Terminal 5 that result in delays and access impediments to Rivergate businesses, while creating a lack of safe access for nearby workers to reach Rivergate businesses. The at-grade rail crossing for the South Rivergate Rail Lead handles more Trains frequently block freight truck and employee access than 7 million tons of export cargo a year, including grain exports from as far away as the Midwest. The export facilities provide international market access to U.S. agricultural products from Minnesota, North Dakota, Montana, Idaho, Washington, and Oregon. Another export business at Terminal 5, Canpotex, exports nearly 3 million tons of bulk potash to Asian markets, Trains RIVERGATE DISTRICT annually. blocking the Terminal 6 VICINITY MAP Terminal 6 Leadbetter The area offers the highest concentration of access to Overcrossing multimodal freight transportation facilities in Rivergate can the state, including: the Port’s Terminals 4, cause traffic 5, and 6; the Union Pacific Railroad (UPRR) Barnes Rail Yard and; BNSF Railway A and gridlock for

Terminal 5 Terminal 5 Ramsey Rail Yard B yards—all of which are critical links in up to four the regional freight network. Vehicle traffic hours every approaches 10,000 vehicles per day; almost day. 40 percent are trucks. Within Rivergate and Lombard Widening and Path the nearby Columbia Corridor Industrial District are some of the highest concentrations of industrial- South Rivergate Rail sector employment in the Portland region and the state of Yard Oregon. There are approximately 2,600 total businesses in the Columbia Corridor area that employ over 65,000 workers and

Terminal 4 generate a total of nearly $2.9 billion in wages per year.

Black labels are recent investments in the project area

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Substantial infrastructure improvements and private enterprise investments have occurred recently to help handle the area’s growth and worker access, but the at-grade rail crossing and the still incomplete multimodal connection are greatly restricting the full potential of Rivergate as a marine industrial center and employment center for the nearby community. Significant vehicle traffic congestion and safety remain a major concern.

SPECIFIC CHALLENGES

The freight route needing improvement is part of the National Highway System that provides regional shippers with access to the St. Johns Bridge/Highway 30, Interstate 5, and Interstate 84. North Rivergate Boulevard is the only public access road into the south end of Rivergate. This route is often blocked by inbound and outbound unit trains serving Port marine Terminal 5 at an existing at-grade rail crossing, resulting in lengthy delays that shut down all movement to and from the entire Rivergate Industrial District and prevent emergency access (video). Traffic blockages often extend 2 miles on Lombard Street to the Columbia Slough to the north, and over 1.5 miles to North Columbia Boulevard to the south, creating traffic gridlock The rail crossing blockage backs traffic up to the north and south, effectively halting traffic into the Port on both access routes for up to four hours per day and limiting access to approximately 100 businesses. The “Our business provides congestion at the at-grade crossing hauling services to Terminal reduces the efficiency of Rivergate manufacturing businesses. The cost 5. With competitive trucking of congestion is high—delays to rates, an hour’s delay (due In addition to traffic backups due to the at-grade rail crossing, there are no facilities for cyclists and pedestrians, who are forced to share the road with truck traffic freight movement to, from, and to congestion) makes the within Rivergate have serious difference between making a financial and safety ramifications. profit or coming home In addition to the truck, train, and auto traffic in Rivergate, there are transportation challenges for with a loss.” employees using other modes. Despite infrequent bus service to this area, some industrial facilities - Paul Langner report a transit share of 30 percent of their employees; the choice to use transit is based on economics Teevin Brothers rather than convenience. Often, because of conflicts between rail and street traffic,transit riders

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Key Project Benefits must exit buses 1.5 miles away and travel by foot into Rivergate, through areas that lack The Portland Marine Terminal Freight sidewalks, exposing them to unsafe traffic Overcrossing and Jobs Access Project is ready to quickly Intersection conditions. Likewise, those who commute Improvements proceed once funding is secured. The project by bike often find the trip daunting. Most of supports all of the TIGER VII strategic goals: Rivergate is bike friendly, following the recent • Provides access that will enhance completion of a 12-foot-wide multi-use path on Reconstruct Roadway the viability of business expansion at Lombard; however a 1,700-foot-gap remains on Terminal 5 Columbia Boulevard between Rivergate and the • Provides new and existing industries nearby St. Johns residential area. Workers from exceptional access to multimodal facilities the St. Johns neighborhood who choose or need (interstates, an international airport, to bike or walk to jobs in Rivergate face a daily marine terminals, and rail yards) that risk in their commute, with potentially dangerous are uniquely positioned for international interactions with auto and freight traffic. exports Roadway elements for the Project • Removes a barrier by creating a ADDRESSING THE CHALLENGES multimodal connection from an economically distressed area to middle- To meet Rivergate’s challenges, the Project partners propose solutions to address congestion and wage jobs at Rivergate improve access for all modes traveling to and from Rivergate. The Portland Marine Terminal Freight and • Improves the fluidity and cost of freight Jobs Access Project will: (1) provide a grade separation at the North Rivergate Boulevard rail crossing and rail due to reduced switching associated improvements to provide more efficient movement of vehicle traffic that will support terminal and business expansion, and (2) improve off-street access for non-motorized traffic to Rivergate to increase the • Reduces pollution from vehicle miles connectivity of North Portland to this important jobs center. traveled and vehicle idling Grade separations are often difficult to fund within existing funding programs. In today’s constrained funding • Upgrades decaying and unsafe infrastructure to the highest and best use environment, grade separations must compete with other critical transportation needs. Although grade separations can provide multiple benefits to at least four modes of travel (road, rail, bike, and pedestrian), • Improves safety for all modes—train, because of their high cost and their need for agreement among multiple public and private parties, they automotive, freight, pedestrians, and frequently remain unfunded. bicyclists • Guarantees emergency access to the The Project will: marine terminal and industrial area that • Provide a grade-separated crossing to address congestion and safety issues caused by the intersecting of currently does not exist trains and vehicles;

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• Reconfigure and widen a deficient roadway intersection to accommodate turning trucks, thereby reducing damage to sidewalks, curbs, and walkways and reducing risk to pedestrians; • Reconstruct a roadway base to return it to a state of good repair; • Provide for an increase in agricultural exports and bulk mineral exports through Terminal 5; • Reduce the time it takes to switch unit trains into Terminal 5, thereby significantly lowering the costs of transporting export cargoes and enhancing the economic productivity of Rivergate; • Increase mobility and access to jobs for an economically distressed Proposed overcrossing to eliminate at-grade conflicts between rail traffic, and auto and truck traffic population, by expanding access via low-cost commuting options from the area’s large low-income residential neighborhoods; • Ensure guaranteed emergency access to a significant industrial employment area; Roadway elements for the Project • Increase business productivity and reduce business costs by reducing delays, and improve travel time reliability for freight movement and Rivergate personnel and other businesses serving the district; • Lower harmful emissions and reduce fuel consumption resulting from idling and out-of-direction travel, because when trains block the road, trucks are forced to use Time Oil Road as an alternative route, requiring a detour of 1.3 miles in each direction. By integrating infrastructure 1) PROVIDE A GRADE SEPARATION OF NORTH RIVERGATE BOULEVARD OVER THE improvements to SOUTH RIVERGATE RAIL LEAD relieve congestion During rail crossings, North Rivergate Boulevard and North Lombard Street become obstructed, thus preventing and increase commerce, employee, and emergency access to adjoining industrial properties. Resulting traffic queues back up onto the primary route serving the Port, impacting all businesses. Business driveways on North Rivergate Boulevard are efficiency, the completely cut off. Trucks stuck at the rail gates use business driveways for turnarounds, causing disruptions, unsafe Project primes the conditions and costly damage to property and landscaping. area for industrial The at-grade crossing also increases the time and complexity of rail operations into and out of Terminal 5 and growth and South Rivergate Rail Yard. Terminal 5 is the Port’s largest volume terminal and is served by unit train operations. expanding export The operation of the two bulk terminals located there are poised for growth but currently constrained by limitations capabilities. associated with the at-grade rail crossing. BNSF Railway has stated that removing the at-grade conflict could save 30 minutes per train.

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The new overcrossing will allow free-flow movement for North Rivergate Boulevard and North Lombard Street, which accommodate nearly 10,000 vehicles per day (40 percent are trucks). In N addition, rail operations will be improved. o r th L om A grade separation (overcrossing) will rectify these ba rd conditions and include the following elements: S tre et . • A vertical clearance of 25 feet over the train N lvd orth Rivergate B tracks, sufficient to accommodate all rail cars; Sidewalk damage from trucks turning into the entrance to the Port • A frontage road to provide access to businesses located on the north side of the overcrossing

Turning radius for trucks is inadequate structure; • Bike lanes, a sidewalk, and lighting to enhance alternative modes of transportation; and • Mechanically Stabilized Earth (MSE) walls used to narrow the footprint and protect an environmental zone to the south of the right-of-way.

1A) MODIFY THE INTERSECTION OF NORTH RIVERGATE BOULEVARD AND NORTH LOMBARD STREET Associated with the new overcrossing, a series of improvements to the intersection accessing Rivergate will address safety, congestion, and improved operations. Currently, semi-trucks have difficulty meeting the turning radius provided at the intersection. As a result, trucks frequently drive over the sidewalk and into the opposing lane on North Rivergate Boulevard, creating a hazard that puts vehicles and pedestrians at risk. The sidewalk and curb are also damaged by trucks. No sidewalk exists on North Lombard Street, and pedestrians must walk across landscaping to reach the sidewalk on North Rivergate Boulevard. Slow-moving trucks at the intersection hamper the fluidity of vehicle traffic on both North Lombard Street and North Rivergate Boulevard. Project elements of the intersection modification include: • Redesign to accommodate truck turning movements for all classes of trucks, eliminating unsafe maneuvers; • Reconstruction and extension of pedestrian facilities, including a sidewalk north of the intersection to connect with a bus stop and an improved connection to North Columbia Boulevard; and The high percentage of heavy trucks on Rivergate Blvd. have degraded the pavement • Stormwater treatment, landscaping, and street lighting improvements.

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Proposed Multi-use Connection 1B) RECONSTRUCT THE BRIDGE APPROACH AND ROADWAY TO ACHIEVE A STATE OF GOOD REPAIR The approach to the new overcrossing on North Rivergate Boulevard needs a full-depth reconstruction between North Lombard Street and Time Oil Road. North Rivergate Boulevard has one of the highest percentages of heavy truck use in Portland with 40 percent being trucks (37 percent of which are Federal Highway Administration (FHWA) Class 7 and above). The upgraded roadway will be suitable for the truck weights and volumes it must support.

2) PROVIDE A CONNECTION FOR BIKES AND PEDESTRIANS BETWEEN NORTH COLUMBIA BOULEVARD AND NORTH LOMBARD STREET Employees face daily traffic jams when commuting to Port terminals due to the backups at the at-grade railroad crossing at the Port’s entrance. Access by other modes is difficult due to substandard facilities or lack of connectivity. The Project will construct a 1,700-foot-long, 12-foot-long wide path for bikes and pedestrians, thus creating a connection between North Portland Lack of facilities and cracked pavement make neighborhoods and the multi-use path that serves employers within navigation to the Port hazardous for employees Rivergate. For the high proportion of low-income residents and who bike or walk communities of color in the St. Johns neighborhood, which is less than a mile from Rivergate, this is a badly needed transportation alternative to access the jobs in Rivergate. This connection, as well as The new multi-use connection provides a safe the other components of the Project, will serve not just the Port, but connection for bikes and pedestrians the entire Columbia Corridor employment district. Communities of color rely disproportionately on industrial sector jobs located in the Columbia Corridor, including at the Port. Knowing that there are low-cost, reliable transportation options other than driving might increase the residents’ confidence in applying for jobs.

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II. PROJECT PARTIES The Portland Marine Terminal Freight and Jobs Access Project is a collaborative effort between the Port of Portland and the City of Portland.

PORT OF PORTLAND Originally created by the Oregon Legislature in 1891 to dredge a shipping channel from Portland to the Pacific Ocean, thePort of Portland today is a consolidated port, providing aviation, maritime, and industrial facilities serving interests within Multnomah, Clackamas, and Washington counties and businesses throughout Oregon and southwest Washington. The Port owns four marine terminals, Oregon’s only international airport (Portland International Airport), and two general aviation airports (Hillsboro and Troutdale); has developed seven commercial/industrial parks with more than 10,000 acres of industrial property; and owns more than 750 acres of natural areas. Port general fund revenues are largely generated through business transactions, with less than 4 percent of Port revenues coming from public sources.

CITY OF PORTLAND The City of Portland is the local governmental entity responsible for ensuring public safety and promoting economic vitality and opportunity. The Portland Bureau of Transportation (PBOT) is responsible for planning, building, operating, and maintaining an effective and safe transportation system that meets the access and mobility needs of Portland residents and businesses. Oregon’s most vital highway, railroad, and marine routes converge in Portland, making it the fourth largest freight hub on the West Coast that has the third highest concentration of transportation sector employment in the nation.

9 www.portofportland.com/tigerVII.aspx Portland Marine Terminal Freight and Jobs Access Project FUNDING/PROJECT COSTS

III. GRANT FUNDS AND SOURCES/USE OF PROJECT FUNDS The total Project cost is $19,253,000, and the Project partners request $11,033,000 in TIGER VII Discretionary Grant funds for successful completion of the Project. The Port and the City are partnering to contribute $5,000,000. This local match represents a significant commitment of public financial resources, and contributes 26 percent of the total Project cost.Additionally, $3,220,000 in federal Metropolitan Transportation Improvement Project (MTIP) funds have been awarded in recognition of the importance of this Project. With 42.6 percent of the project funds in hand, less than 58 percent is required from the TIGER program. TIGER VII Project Cost, Local Match, and Grant Request

Other Funding Source of Match Federal MTIP (not Port of City of Total Local Project Description counted as match) Portland Portland Match Tiger VII Request Total Cost Rivergate Overcrossing $3,220,000 $2,416,600 $2,416,600 $4,833,200 $10,365,800 $18,419,000 Rivergate Reconstruction Rivergate & Lombard Intersection Improvements Columbia Blvd. Multi-use Path $83,400 $83,400 $166,800 $667,200 $834,000 Project Totals $2,500,000 $2,500,000 $5,000,000 $11,033,000 $19,253,000 Percent of Project Cost 17% 13% 13% 26% 57%

LEVERAGED INVESTMENTS The Oregon The TIGER VII funds will help maximize public and private funds already expended totaling $224,300,000 Transportation in infrastructure improvements made within the last six years to the Rivergate Industrial District. Currently, Commission has $185,000,000 of investment is being expended by private entities to construct the necessary infrastructure identified the to prepare for an increase in exports through Terminal 5 ($45 million by Columbia Export Terminals and $140 million by Canpotex). The Port and the City are working diligently to build the infrastructure necessary to Portland Marine increase exports from the Port’s marine terminals and improve multimodal access to Rivergate. The Columbia Terminal Freight River navigation channel between Portland and the Pacific Ocean has been deepened from a depth of 40 feet and Jobs Access to 43 feet to allow for the transit of larger ocean vessels. The deepening was completed in November 2010 at a Project as a cost of $180,000,000. The Port also deepened five bulk and container berths at a cost of $5,730,000 to take full advantage of the Columbia River navigation channel. Three anchorages to serve bulk berths have been added in State priority for the Columbia River since that investment was made. Tiger VII funding.

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Over the past six years, the Port of Portland and the City of Portland have partnered with UPPR, BNSF Railway, and the State of Oregon to:

1. Increase yard capacity at two rail yards in Rivergate (South Rivergate Yard and Ramsey Rail Yard); 2. Build a rail overcrossing (Leadbetter Overcrossing); 3. Strengthen two bridges (Columbia Slough Bridge and Burgard Bridge); 4. Widen a roadway (North Lombard St.); and 5. Add multi-use path segments to provide alternative transportation options to access the area from the nearby community. These improvements represent another $44,300,000 in investments. To take advantage of the improved transportation infrastructure investments, Columbia Export Terminal is dedicating $45,000,000 in expansion investment to double grain exports. Portland Bulk Terminal (Canpotex) has $25,000,000 in investments underway and an additional investment of as much as $115,000,000 planned, so that Portland Bulk Terminal can increase its volume from 3.5 million tons per year to 7 million tons per year.

Leveraged Investments

Investment Investor Millions ($) Ramsey Rail Yard expansion State of Oregon, Port of Portland, UPRR, BNSF. SAFETEA-LU 13.9 South Rivergate Yard expansion Port of Portland, State of Oregon, UPRR, BNSF 11.0 Leadbetter Overcrossing State of Oregon, Port of Portland, SAFETEA-LU 10.0 Lombard widening and multi-use path State of Oregon, Port of Portland 3.6 Grain storage, cleaning, transporting equipment (private) Columbia Export Terminals (private) 45.0 Chimney-Pier Park trail connection State of Oregon, City of Portland 0.3 North Lombard St. Columbia Slough Bridge City of Portland 1.5 North Lombard/Burgard Bridge Structure City of Portland 4.0 Columbia River deepening USACE and Columbia River Ports 180.0 Canpotex (private) Ship Loader, conveyor, storage improvements (private) 140.0 Total Leveraged Investment $409.3

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IV. SELECTION CRITERIA

A. PRIMARY CRITERIA I. STATE OF GOOD REPAIR

The Project’s new grade separation on North Rivergate Boulevard will eliminate the conflict between rail and truck freight modes. The grade separation will span 115 feet over the railroad tracks with a vertical clearance of 25 feet. On the west side of the structure a frontage road will be constructed to allow access to the businesses on the north side of Rivergate Boulevard. Associated improvements include realignment of the Lombard/Rivergate intersection to improve the truck turning radius, and reconstruction of the roadway approach to the new bridge to better accommodate truck weights and volumes of freight traffic. An important intersection will be widened to stop the damage to curbs, sidewalks, and landscaping due to insufficient radius for truck turns. Currently, North Rivergate Boulevard is in disrepair and shows areas of N. Rivergate Boulevard base and pavement are in significant distress. The roadway base is failing, and the pavement is alligatoring and raveling. The traffic need of significant repair to support truck traffic volume on this roadway is 40 percent trucks, 37 percent of which are Federal Highway Administration Class 7 and above. Many of the trucks are bound for and carry heavy steel products. A new 1,700-foot-long, 12-foot-wide multi-use path on Columbia Boulevard will result in a better facility for pedestrians and bikes to provide transportation choices for job access. The route currently has a significant 700-foot gap in the sidewalk, and the existing sidewalk is narrow and has utility poles in its center. The multi-use path will fill in this gap to connect the adjacent neighborhood to a signalized crossing and create access to the Rivergate Industrial District multi-use paths.

MAINTENANCE FUNDING IS IN PLACE • The Project is appropriately capitalized up front, as noted in the Grant Funds and Sources/Uses of Project Funds section. The Project partners have sustainable financial sources in place, including both public and private funds, to maintain the Project over the long term. • All new transportation infrastructure constructed on North Rivergate Boulevard, North Lombard Street, and North Columbia Boulevard is in the City’s right-of-way and will be maintained by Portland Bureau of Transportation (PBOT). The Project will actually improve the financial ability of the City by reducing The narrowness, gaps, and utility poles in the maintenance costs and increasing the tax base. existing path create challenges for pedestrians

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• The Port’s Common Area Maintenance Association will maintain the common areas as well as the areas along the street rights-of-way, ensuring the beauty and landscape functionality of the industrial park. II. ECONOMIC COMPETITIVENESS

STRENGTHENING INTERNATIONAL EXPORTS AND IMPROVING OUR ECONOMY Improvements to our transportation infrastructure will help Portland and Oregon support the goals of the National Export Initiative and other trade initiatives to strengthen the U.S. economy, add jobs, and provide opportunities for growth in international trade for the Pacific Northwest and the nation.Portland is the primary international export gateway for 11 states in the Pacific Northwest and upper Midwest, is the second largest export gateway on the West Coast, is third in the world for grain exports, and is first in the nation for U.S. wheat exports.

Shipments of Ford Mustangs from the Portland Portland is the second largest importer of autos on the West Coast and in 2012 began exporting Ford autos Gateway to Asia at Terminal 6 will grow in the from Dearborn, Michigan, to Asia through Terminal 6. In 2014, nearly 50,000 Ford vehicles were exported coming years through the Port, representing a 400 percent increase from 2013, and more growth in exports is planned in the future. Due to strong and growing demand for Ford vehicles in Korea, China, and other international markets, Ford recently announced that the iconic Mustang would be shipped globally for the first time, with Portland as the export gateway for the first shipments. Auto imports/exports support more than 500 local jobs, paying above-average wages and generating more than $181 million of income per ton. The same rail line that serves Terminal 5 (the Ramsey Lead) also delivers Ford automobiles to Terminal 6 for export to Asia. With exports of Ford autos expected to grow over the coming years from nearly 50,000 to USDOT has over 90,000 per year, ensuring efficient rail operations on the Ramsey Lead is essential. identified Portland as Portland is an export-intensive area—exports of goods from highly specialized industries (semiconductors, one of four “National computers, electronics) represent 67 percent of goods shipped. Even with this niche market, Portland’s total Freight Gateways” exports have grown at an annual rate of nearly 13 percent since 2003. on the West Coast. Rivergate, located in the Columbia Corridor Industrial District, is a regional cluster of freight and distribution businesses with a focus on international trade—making it ideally situated for convenient access to national and international markets. Rivergate has immediate proximity to the Portland International Airport, Pacific Ocean-bound vessels at the Port’s marine terminals, and connections to the nation’s interior via two Class 1 railroads, the Columbia-Snake River barge shipping system, Interstate 84, and Interstate 5.

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According to the Department of Commerce International Trade Administration :

• Oregon’s export shipments in 2014 totaled $20.9 billion. • During the past 10 years, Oregon exports to the 20 countries with free trade agreements grew by 39 percent; over 30 percent of Oregon’s exports went to these countries in 2014. • Oregon’s largest market was China, with $4.3 billion in exports, followed by Canada, Malaysia, Japan, and Korea, totaling $6.4 billion in exports. • Nearly 6,000 companies export from Oregon locations; 90 percent are small to medium- sized enterprises that employ more than half of Oregon’s private-sector workforce. • More than 86,000 U.S. jobs are supported by goods exported from Oregon. The Columbia River navigation channel was recently dredged at a cost As noted, the economic benefits of Portland’s trading hub reach beyond Oregon. Serving as of $180 million to allow access for larger ocean vessels a $2 billion per year gateway for North American goods exported to other countries, Rivergate’s Terminal 5 relies on velocity and efficiency of goods to market. A total of $1.29 billion of U.S.-grown agricultural products were exported through the Columbia Export Terminal facility alone in 2012. Exports from Canpotex and Columbia Export Terminal leaving Terminal 5 go to 12 countries across Asia, Central and South America, and Australia, and Portland is more new exports now are slated for India. Last year, Terminal 4 exported $458 million in goods, and Terminal 6 moved over $1 billion in goods. Rivergate’s importance to national economic growth is significant: the primary international • The Portland metropolitan region ranks as one of the nation’s leading export economies. According to a export gateway for March 2012 Brookings Institution study, Portland’s export sales are 12 times greater than its economic size would predict. Exports account for 18 percent of the metropolitan area’s gross product—the highest level of 11 states, and is concentration in the western United States, and the third highest nationally. first in the nation • Portland is one of four U.S. regions poised for export growth, and the Project directly correlates to the federal for U.S. wheat government’s express goal to double U.S. exports. exports. • The region has created the Metropolitan Export Initiative—a strategic plan geared toward doubling exports from the region in five years. A critical aspect of the Metropolitan Export Initiative is having the infrastructure in place to support market access and growth in export, and help Portland reach its goal of doubling exports. • Portland’s location at the confluence of rivers, roads, rails, and runways gives it further prominence as an important trading hub. The U.S. Department of Transportation (USDOT) has identified the Portland region as one of four “national freight gateways” on the West Coast. Rivergate is within minutes of Interstate 5 and Interstate 84, both of which are classified as National Highway System freight routes and federally designated truck routes.

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• The Columbia and Willamette rivers have been designated by the U.S. Maritime Administration as “EVRAZ operates “Marine Highways” for the Pacific Northwest. in a multi-modal In addition to facilitating a doubling of export volumes through Terminal 5, the Project achieves a environment paramount objective of a TIGER VII grant by improving the economy through its job creation, as described in the section on Creating Quality Jobs. (truck, rail, and ocean vessel). Lastly, the Project partners’ request for $11,033,000 in TIGER VII grant support would provide an exceptional estimated total benefit of$73,429,517 and a benefit-to-cost ratio of3.81 to 1. This grant Current issues application is accompanied by strong regional, state, and local support and will leverage a contribution of with the truck and $5,000,000 in local funds, which represent 26 percent of the project funds needed. rail congestion IMPROVING LONG-TERM EFFICIENCY AND RELIABILITY FOR FREIGHT MOBILITY directly affect AND WORKER ACCESS our ability to be The Project will give the existing and new businesses in Rivergate, and their customers and employees, competitive in the more direct and efficient access. The Project will provide more efficient access for Terminal 5, South marketplace.” Rivergate Rail Yard, and the district’s rail-served businesses. The existing at-grade crossing adds time and complexity to rail switching operations. Eliminating the at-grade crossing will simplify rail movements, — Bruce Iredale, thus helping Rivergate be more competitive by reducing rail switching costs. A study by HDR/Decision EVRAZ North Economics estimates significant reductions in the hours of delay for passenger vehicles, trucks, and trains America steel mill with the Project and related savings, as shown in the following table. Estimated Travel Time Savings (20 Years) Mode Hours Saved (20 Years) Truck 1,085,770 Automobile 655,368 Rail 61,370 Total hours saved 1,802,508 Source: HDR/Decision Economics, 2015 HELPING AN ECONOMICALLY DISTRESSED AREA The proposed Project will not only increase the number of jobs available to the residents of St. Johns, but will improve access to this neighborhood area which is designated by the Oregon Business Development Department as Economically Distressed. The Project is located in North Portland (U.S. Census Tract

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#14.01), which contains a workforce population with a significantly higher and growing percentage of African-American (12 percent) Rivergate Work Area Profile St. Johns Home Area Profile and Latino (24 percent) populations and lower-income households compared with the rest of Multnomah County, which has a 6 percent African-American population and a 10 percent Latino population. St. Johns neighborhood has an unemployment rate of 15.4 percent, triple Portland’s overall unemployment rate of 5 percent.

Based on U.S. Bureau of Labor Statistics data, the manufacturing, Percent wholesale trade, transportation, and construction sectors provide Total jobs 5,839 unemployed15.4% primarily middle-income jobs and are a major source of middle- Jobs that earn more than Family households below the income and upward-mobility jobs for communities of color. In 2008, $3,333 per month poverty level 56% 19.2% manufacturing and transportation sectors, made up 18 percent of jobs held by people of color in Multnomah County, compared to 10 percent of the jobs held by white employees. The Project will increase access to these important job sectors, creating ladders of opportunity to this economically distressed area.

Rivergate, with almost 6,000 jobs, is a tremendous source of middle- Worker education Worker education Less than Less than income jobs in these sectors with low barriers of entry for the nearby high school 10% high school 9% St. Johns community. According to U.S. Census Data, employment in High school or High school or equivalent, no college 27% equivalent, no college 20% the Rivergate area includes 45 percent in Manufacturing, 22 percent in Some college or Some college or 29% 25% Wholesale Trade, and 18 percent in Transportation and Warehousing. Associate degree Associate degree Bachelor’s degree or Bachelor’s degree or Of Rivergate’s employees, more than half make over $3,333 per month. advanced degree 21% advanced degree 24% Not available 13% Not available 22% Many jobs within these industries do not require college degrees. In fact, 26.6 percent of Rivergate workers have high school degrees or Not only does Rivergate have mostly middle-wage jobs, but many jobs do not require high levels of education. For the 54 percent of residents in St. Johns with less than a college degree, there equivalent, 10 percent did not graduate high school, and 29 percent have are few educational barriers to employment at Rivergate some college or an Associate degree. Education barriers to employment at Rivergate businesses are low—but the physical barriers—access to these middle-income jobs—is what the Project will remove, creating more opportunities for jobs, especially as businesses are able to expand.

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Economic Impacts of Increase of 2 Million Tons in Bulk Exports JOB TRAINING AND APPRENTICESHIPS JOBS DIRECTJOBS 62 Several of the companies at Rivergate have ongoing apprenticeship programs. For example, EVRAZ North INDUCED DIRECT 7462 America, a prominent steel manufacturer at the Port, has for many years maintained a strong partnership INDIRECT INDUCED 18674 with Portland Community College (PCC). Students who take their training at PCC get their work experience TOTAL INDIRECT 322186 at EVRAZ. EVRAZ has three employees serving on two of PCC’s JATC (Joint Apprenticeship Training TOTAL 322 PERSONAL INCOME (1,000) Committees). PCC also has 10 EVRAZ employees apprenticing as millwrights and five apprenticing DIRECTPERSONAL INCOME (1,000) $4,156 as manufacturing plant electricians. In addition, PCC does customized workforce training for EVRAZ. INDUCED DIRECT AND LOCAL CONSUMPTION $10,174$4,156 EVRAZ, like many other businesses in Rivergate, is impacted by the problematic at-grade rail crossing. INDIRECT INDUCED AND LOCAL CONSUMPTION $9,525$10,174 The improvement proposed in the Project will remove an important barrier to business growth and reduce TOTAL INDIRECT $23,854$9,525 TOTAL $23,854 EVRAZ transportation costs. EVRAZ’s ability to grow its business will help foster growth in the apprentice BUSINESS REVENUE (1,000) $71,935 program partnership with PCC. BUSINESS REVENUE (1,000) $71,935 LOCAL PURCHASES (1,000) $20,937 LOCAL PURCHASES (1,000) $20,937 E-ZONE PROGRAM STATE AND LOCAL TAXES (1,000) $2,290 In the State of Oregon and Portland’s Enterprise Zone (E-Zone) program, industrial firms that make STATE AND LOCAL TAXES (1,000) $2,290 Source: Martin Associates, 2011 Economic a substantial new capital investment are allowed property tax exemptions for five years on the new Value of Port of Portland Investment in investments, with no loss of current property tax levies to local taxing jurisdictions. Over 50 companies Infrastructure have participated in the program, investing anywhere from $500,000 to $86 million in facilities, equipment, and machinery as part of their E-Zone qualified investments. Since 1996, the City’s E-Zone programs have leveraged over one billion dollars in private investments and have created and retained over five thousand 85 percent of jobs full-time, quality jobs. at Rivergate are In addition to the E-Zone program’s private investment and job creation requirements, the public benefits industrial, paying derived from the E-Zone program include: middle-income • Increased business opportunities for companies within the E-Zone through the program’s local wages or better, and procurement requirement; a large proportion • Enhancing the tax base in the E-Zone to the benefit of all taxing jurisdictions; don’t require a • Payment of 15 percent of the value of the tax abatement into the Business Development and college degree. Workforce Training Fund to support local job training and financial assistance to small businesses in the area (Funds can also be used to support employee transit and child care); and

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Participation in the Portland • Job training and recruitment of disadvantaged individuals from the surrounding neighborhood E-Zone program by these (First Source hiring agreement administered by Oregon Employment Department and local Rivergate businesses is helping to workforce board). fund apprenticeship programs for Canpotex, at Port Terminal 5, is poised for expansion, investing $140,000,000 in infrastructure to double industrial jobs: the tonnage moving though the terminal. In addition, Canpotex is participating in the City of Portland E-Zone program, investing $3,000,000 in local job training programs, small business development • Canpotex programs, and local procurement that specifically assists small business and provides potential job opportunities to adjacent residents. • EVRAZ The benefits of this Project to distressed communities are many; by removing a major barrier and • SunEdison allowing businesses to reliably access their facilities and deliver their products, their attention can turn • Subaru to business growth, job expansion, and training. As a result, ladders of opportunity will be enhanced in communities near Rivergate. • Rivergate Scrap Metal • Archer Daniels Midland CREATING QUALITY JOBS THAT PROFIT THE REGION AND NATION There are nearly 100 businesses in Rivergate, and a 2011 study by Martin Associates showed that the • Ajinomoto 5,839 direct jobs will result in an additional 2,336 induced jobs and 4,087 indirect jobs, for a total of • SoloPower 12,262 jobs. The site’s proximity to international air and deep-sea freight invites export opportunities that promote quality jobs in the region. According to several studies, U.S. employees of export-oriented firms earn between 9 and 18 percent more than their counterparts at non-export-oriented U.S. firms.The TIGER VII-funded Project will generate an estimated 250 short-term jobs, and incent at least 1,461 long- term direct, induced, and indirect jobs associated with the marine terminals park. It is estimated that these 1,461 new long-term jobs, which would boost Rivergate employment by more than 12 percent. Short-Term Job Creation From Proposed Project Job Category # of Job Years Timing Design and Permitting 37 2015 Qtr. 4 to 2016 Qtr. 3 Construction 213 2016 Qtr. 4 to 2018 Qtr. 4 Total 250 3.5 years, start to finish Apprentice program participants get work experience at Rivergate businesses Job-Year methodology source: “Estimates of Job Creation from the American Recovery and Reinvestment Act of 2009,” Council of Economic Advisors, May 2009, updated September 2011.

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At Terminal 5 alone, both Columbia Export Terminal and Canpotex are positioned to realize an increase in exports from approximately 7 million tons annually to as much as 13 million tons annually through their recent and planned investments to expand their infrastructure. By providing unfettered rail access to Terminal 5 in support of that expansion, and leveraging $38,500,000 in rail and roadway infrastructure investments already made in Rivergate, the Project will enable the creation of family-wage jobs near an economically challenged community. A Martin Associates study indicates that a terminal expansion to increase bulk exports by just 2 million annual tons would create 62 new direct jobs, 74 induced jobs, and 186 indirect jobs annually (322 total jobs). Those job numbers could triple (reaching nearly 1,000) if the full potential of Terminal 5 is realized. Other study findings: Businesses associated with servicing the export increase of 2 million annual tons will benefit by approximately $71,900,000 annually, from which: • $4,200,000 will be paid to direct jobholders as family-wage incomes. Summary of Jobs (Direct, • $9,500,000 in annual wages will go to indirect jobholders. Induced, Indirect) • $20,900,000 will be spent on local purchases to support the economy. Existing Rivergate Jobs 12262 Marine Terminal Growth 966 • The increase of 2 million tons of export bulk cargo will generate $2,300,000 in state and local taxes annually. Jobs Development of Vacant 495 In 2011, Rivergate already provided 5,839 direct jobs that produced income of $301,893,323. The Project will Land Jobs also increase the economic productivity of 128 acres of vacant land within Rivergate by providing the improved Short term Jobs 250 infrastructure needed for redevelopment. If Rivergate’s 128 vacant acres were developed, another 495 direct jobs, Total Jobs 13,973 induced, and indirect jobs could be realized. Potential Jobs Through Development of Vacant Land Developed Existing Undeveloped Estimated Jobs on Total Jobs at acres Jobs Jobs/acre acres Undeveloped Parcels Build Out Rivergate 1874.8 3,451 1.8 128.2 236.0 3,687.0

Source: Martin Associates, 2011, The Economic Impacts of the Port of Portland Real Estate Tenant.

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III. QUALITY OF LIFE

The anticipated business expansion and job creation fostered by the improvements of the proposed Project will add to the quality of life by creating more opportunities for middle-wage jobs for nearby St. Johns residents. The Enterprise Zone program sponsored by the City of Portland and its partners and utilized by many of the businesses in the Rivergate Industrial District adds additional benefits—those businesses participating in the program are not only funding training programs, but also can assist with child care expenses and the cost of transit for an employee’s commute. This is no small matter—the ability to manage the time and cost of arranging transportation and childcare can help participants balance life and work. Many Portland commuters rely on bikes to get to work Project’s Resulting Emissions The multimodal aspect of this Project will increase Reduction connectivity in the North Portland area, removing Pollutant Tons (20 Years) transportation barriers and creating better access to

CO2 4,640.00 the major employment centers poised for expansion in NOx 2.00 Rivergate, and the family-wage jobs and training they PM 0.11 provide. Those who choose to commute to Rivergate VOC 0.39 by car, given the current congestion problem, waste Source: HDR/Decision Economics, 2015 time sitting in traffic, worry about arriving to work late, spend more for gas by idling in traffic, and have greater exposure to pollution from idling truck emissions. This An employee of a North Portland-based business uses situation has a direct impact on the employee’s life/work balance and quality. Simply constructing the the regional trail system to get to and from work overcrossing element of this project would reduce stress and these impacts on quality of life. According to a 2004 study on obesity (Frank, Andreson & Schmidt, Journal of Preventative Medicine, 2004), each additional hour per day spent in a car increased the odds of obesity by 6 percent, while each kilometer walked resulted in a 4.8 percent reduction in the odds. Active transportation is linked to reductions in heart disease, obesity, and diabetes—attributes that can seriously affect quality of life. The Project will increase accessibility for bike and pedestrian commuters, giving workers healthful commute choices. One important component of quality of life is having access to good paying jobs with low barriers to entry. The new overcrossing will remove the at-grade conflict with trains and provide a safer route for Rivergate provides these types of job opportunities. The bike and pedestrian connection portion of the vehicles, pedestrians, and cyclists Project marries two important Pacific Northwest values—livability and economic viability—by creating

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transportation options that provide people a low-cost commute to work, create health benefits, and reduce 6.3 percent of all environmental impacts. Non-auto commuters are not only healthier, but the money saved by not owning commute trips in or maintaining a car can be used to increase purchasing power in other areas—money that often goes back into the local community. the Portland area are by bike, the Portland has world-class bike facilities and is one of the first major cities to actively develop a bike system (the 40-Mile Loop) that will, when completed, encircle the Portland region. More people are highest in using bicycles not just for recreation, but as a primary mode of transportation. Providing an improvement the nation. in a gap in the bike and pedestrian connection between the neighborhood and the employment district provides an important cost-effective option to access job training and job opportunities.

IV. ENVIRONMENTAL SUSTAINABILITY

The frequent traffic backups caused by the confluence of two major arterials and freight lines at the entrance to Rivergate have air quality implications. The proposed grade separation at North Rivergate Boulevard will reduce congestion, greenhouse gas (GHG) emissions, and fuel consumption. As a multimodal freight hub, Rivergate provides shippers with access to two Class 1 railroads, and many businesses in Rivergate provide truck-to-rail and rail-to-ship access. Improving access to these freight terminals facilitates increased use of rail and barges, which require only a fraction of the fuel that is used by trucks moving freight, thus lowering petroleum use and carbon emissions. The fuel efficiency for barges is 576 ton-miles per gallon, and efficiency for rail is 413 ton-miles per gallon, whereas trucks have a fuel efficiency of only 155 ton-miles per gallon.(Texas Transportation Institute, “A Modal Comparison of Freight Transportation Effects on the General Public”, March 2009)

New stormwater facilities and the reduction of The Columbia and Willamette rivers surrounding Rivergate pollutants from idling traffic will help protect the Smith earned a special designation from former U.S. Transportation and Bybee Lakes Natural Area adjacent to Rivergate Industrial District Secretary Ray LaHood as key “Marine Highway” corridors for the nation. The designation came as part of the federal initiative “America’s Marine Highway Program” to move more cargo by water. At 576 ton-miles per gallon, barging grain is the most Many species of resident fauna and migratory fuel-efficient and environmentally friendly way to move cargo. birds rely on the health of the wetlands at Bybee Columbia Export Terminal already receives a significant share of and Smith lakes

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the grain that it exports by barge, and this Project supports Columbia Export Terminal’s planned increase in throughput from barges.

As a leader in promoting bicycle and pedestrian access, Portland has taken great strides in reducing its carbon footprint. Further investments in improved options for access for existing employees and job seekers will foster growth in commutes by cycling and walking, thus lessening impacts on the environment. By providing these strategic and focused investments, the Project will provide significant and sustained reductions in carbon emissions in North Portland neighborhoods adjacent to the congested Interstate 5 corridor, where asthma rates are 57 percent higher (12.4 percent) than the national average (7.9 percent). By significantly reducing hours of delay for trains, trucks, and passenger cars, the Project will result in increased Pervious pavement will help stormwater management energy efficiency, lower emissions, and reduced dependence on oil. The Project includes extensive stormwater management elements related to the roadway improvements and the new overcrossing, and this aspect of the Project is important due to Rivergate’s proximity to the Columbia and Willamette rivers; Bybee, Ramsey, and Smith and Bybee Lakes Natural Area; and their associated wetlands. In addition to beaver, turtles, and other wildlife, more than 100 species of birds use these resources both as migration stops and as year-round habitat. Stormwater management provided by the Project will help maintain the health of these resources.

V. SAFETY

The Portland Marine Terminal Freight and Jobs Access Project directly addresses safety issues related to the current road design in Rivergate. By eliminating the conflict between rail and vehicle traffic with an overcrossing, the Project also eliminates the tendency of some freight traffic to attempt to turn around at points near the entrance to Rivergate, creating an unsafe situation. Improving the turning radius at the entrance to Rivergate will eliminate accidental “sidewalk climbing” by semi-trucks, and thus will reduce the safety hazard for cyclists and pedestrians. Improving the bike When a train blocks the at-grade crossing at and pedestrian facilities along North Columbia Boulevard Rivergate, trucks make illegal maneuvers and by completing a gap in the multi-use path will also increase drive over a median to detour to another Close encounters between bikes and trucks are access point safety for cyclists and pedestrians trying to access jobs in too frequent

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Rivergate. Transit riders will no longer have to walk 1.5 miles on a road without pedestrian facilities to Rivergate employers during traffic backups caused by the at-grade crossing.

B. SECONDARY CRITERIA I. INNOVATION

The Portland Marine Terminal Freight and Jobs Access Project is inherently innovative in its approach to building key pieces of infrastructure and its efforts to forge an integrated community where residents can work and play close to home. The Port and the City have created cutting-edge, innovative project designs for Rivergate. These designs have won many awards, and several of the techniques have been adopted at other ports. Examples of these innovations include 37 acres of pervious pavement at Berth 601, a wildlife undercrossing in Rivergate’s south end, and the geotextile bank protection at Terminal 5. The Project is looking at innovative construction methods such as using pervious pavement treatments to help with stormwater management. In addition, rather than piping stormwater into the City’s system, Apprentices at Portland Community College get their work experience at the Project will treat the water in infiltration swales, thereby reducing long-term maintenance costs and Rivergate businesses improving watershed health and environmental sustainability. The Project will also build and enhance relationships between the Port businesses and local training opportunities. The ability of Port businesses to expand will lead to greater job opportunities, and increase the potential for more partnership between businesses and the PCC JATC programs. The Project’s improvements will clear obstacles for Rivergate businesses to expand. The innovative Enterprise Zone program will also benefit from business expansion as dollars for employee training and apprenticeship programs are increased.

II. PARTNERSHIPS

The Project brings together several key partners and supporters: Port of Portland; City of Portland; Portland Development Commission; the City of Portland’s freight, bicycle, and pedestrian committees; BNSF Railway; and Union Pacific Railroad. The Port and City have worked with Rivergate businesses including Evraz, Columbia Export Terminals, and Canpotex to find a solution to the grade crossing issue. Through

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the Enterprise Zone program the City, Port, PCC and Rivergate businesses have worked together to improve the prosperity and livability of the nearby St. Johns Neighborhood. The City and Port partnered with the St. Johns neighborhood association to address trucks traffic on residential streets. The St Johns Truck Strategy identified a package of street improvement projects with the primary goal of improving freight mobility on the designated freight route connecting the St Johns Bridge to the Rivergate Industrial Area, while at the same time discouraging freight traffic on non-designated freight routes that impact the livability and function of the St JohnsTown Center. In addition, the Port conducted extensive outreach with its business stakeholders and the local community in developing the 2015 Port Transportation Improvement Plan, which includes this Project.

C. BENEFIT COST ANALYSIS

Benefit Cost Analysis Results

Financial Indicators Undiscounted 3% 7% Total Costs $19,253,000 $18,148,486 $16,830,591 Total Benefits $73,429,517 $48,964,998 $30,577,346 Benefit to Cost Ratio 3.81 2.70 1.82

A benefit cost analysis (BCA) was conducted for the project by HDR-Decision Economics. The full BCA report is available on the Port of Portland’s application website. Original BCA spreadsheets have been submitted as an attachment to the SF-424 form and are available to USDOT upon request. For the Base (No-Build) Case, the existing at-grade rail lead at Rivergate Boulevard remains in its current state. As a result, the daily vehicular delays of up to four hours per day will continue. In the Base Case, there is no additional work to redesign the intersection at North Rivergate Boulevard and North Lombard St. to better accommodate truck turning movements. The lack of improvements to the North Rivergate Boulevard and North Lombard intersection in the Base Case means that traffic will continue to improvise routes using sidewalks and other non-designated access areas when confronted by delays. The resulting congestion naturally causes competition for right of way by pedestrians, cyclists, automobiles and trucks. The vehicular damage on sidewalks and roadways will accelerate the state of disrepair of the road infrastructure plus increase the chances that pedestrians and cyclists trying to cross the intersection could be hit by both vehicle and truck traffic driving on sidewalks or turning unexpectedly.

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In the Alternative (Build) Case, the grade separation on Rivergate Boulevard is constructed, allowing free flow traffic conditions for vehicles, transit, pedestrians and cyclists.This will also allow more efficient train operations for the two Class 1 railroads serving the marine terminal and other rail served businesses. The redesign and rebuild of the intersection at North Rivergate Boulevard and North Lombard Street will improve safety conditions by accommodating truck turning movements. It should be noted that although the cost for the 1700-foot multi-use path on Columbia Boulevard is included in the project costs, no qualitative analysis was done to calculate benefits for that component of the project.

METHODOLOGY

The monetized benefits and costs are estimated in 2014 dollars with future dollars discounted in compliance with TIGER requirements using a 7 percent real rate, and sensitivity testing at 3 percent. The methodology makes several important assumptions and seeks to avoid overestimation of benefits and underestimation of costs. Specifically: • Input prices are expressed in 2014 dollars; • Benefits and costs are discounted to the year 2014; • The period of analysis begins in 2015 and ends in 2038. It includes project development and construction years (2015 - 2018) and 20 years of operations (2019 - 2038) and; • A constant 7 percent real discount rate is assumed throughout the period of analysis. A 3 percent real discount rate is used for sensitivity analysis. Accurate demand projections are important to ensure the reasonable BCA output results. The magnitudes of the long-term benefits accruing over the North Rivergate Boulevard grade separation study period are a function of the number of existing and projected Average Daily Traffic (ADT), and existing and projected train movements through the crossing. The existing and projected ADT at the grade crossing, used as demand in the model, is an average over two separate counts in 2013 and 2015. There has not been a significant change to ADT count from 2013 (2921 vehicles per day) to 2015 (2952 vehicles per day). Existing train counts are based on data collected for one count period in 2011, while projected train counts include anticipated additional train throughput serving port businesses.

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The main benefit categories associated with the Project are mapped into the five long-term criteria set forth by the USDOT in the table below.

Long-Term Outcomes Benefit or Impact Categories Description Monetized Operation and Maintenance Cost Impact Improvements to existing infrastructure will reduce annual State of Good Repair of Existing Infrastructure Operations & Maintenance costs. Yes

Travel Time Cost Impact due to Vehicle Grade separation will lead to decreased vehicle travel time Yes Delay Time cost due to eliminated wait times at-grade crossings. Vehicle Operating Cost Impact due to Grade separation will lead to decreased vehicle operating Economic Vehicle Delay Time costs due to decreased wait times at Rivergate Blvd. Yes Competitiveness crossing. Travel Time Cost Impact due to Improved Project will support and allow for an increase in rail Rail Throughput throughput at Terminal 5 providing for increased shipments Yes and shipper savings. Emission Cost Impact due to Vehicle Grade separation will lead to decreased vehicle emissions Yes Delay Time due to eliminated wait time at grade crossings. Environmental Emission Cost Impact Due to Improved Improved rail throughput at Terminal 5 will decrease train Sustainability Rail Throughput idling time resulting in reduced emissions per ton shipped. Yes

Accident Cost Impact at Grade Crossings Grade separation will lead to decreased accidents at grade Yes crossing. Accident Cost Impact at N Lombard St / Grade separation will lessen traffic congestion and will N Rivergate Blvd. Intersection result in a decreased accident rate at North Lombard St / Yes North Rivergate Blvd. intersection. Safety Emergency Vehicle Delay Impact Grade crossing will eliminate emergency vehicle blockages at crossing. No

Improved Intersection Safety Improved intersection where trucks routinely drive over the sidewalk to make the turn from North. Lombard Street to No Rivergate Blvd.

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V. PROJECT READINESS

TECHNICAL FEASIBILITY

The Project’s technical feasibility within the proposed budget and timeline has already been confirmed. Preliminary designs, a review of probable construction methods, and cost estimates for the Project roadwork and multi-use path connection have been completed, and no fatal flaws in meeting engineering standards and requirements have been indicated. (See statement of work.)

FINANCIAL FEASIBILITY/DETAILED BUDGET

A detailed breakdown of the budget for this Project can be found on the website.

PROJECT MANAGEMENT EXPERIENCE

The Port of Portland will manage an operating budget of $191.2 million and a capital budget of $216.7 million this year. The Port has extensive experience in the management and administration of federal grants, including those from Federal Highways Administration, Federal Aviation Administration, Federal Railroad Administration, The Maritime Administration, and Department of Homeland Security/ Federal Emergency Management Agency grants through the Port Security Grant Program. The Port derives 97 percent of all of its revenues from business transactions and has committed $2,500,000 in funds for this Project. The City of Portland has managed many successful federally funded transportation projects, and is certified by FHWA for design and construction of projects on city-owned facilities. The City managed a $23 million Tiger I grant for the Portland Innovation Quadrant, completed construction on the federally funded expansion of the city’s streetcar system, and has completed two federally funded rail overcrossings in the area of the Project. The City has committed $2,500,000 for the Project.

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PROJECT SCHEDULE

All of the components of the Portland Marine Terminal Freight and Jobs Access Project are ready to proceed in order to promote national economic competitiveness, create jobs, and enhance livability for the surrounding communities and the greater region. The Project partners have examined the Project for risks and determined that permitting can be completed in the required time frame, and discussions with regulatory agencies have indicated that the Project would receive a National Environmental Policy Act (NEPA) Categorical Exclusion. Both roadway structures and the trail segments fit within the rights-of-way of the Project partner agencies. The design process has been approved by the Project partners, and the Project is ready to go once funding is secured.

Project Schedule

Task 2015 2016 2017 2018 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2 Quarter 3 Quarter 4 O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D NEPA PHASE RIGHT OF WAY PHASE ENVIRONMENTAL PERMITS Design 10% PLANS 30% PLANS 60% PLANS ADVANCE PS&E FINAL PS&E BID OPENING CONSTRUCTION

Quarterly Costs (in 000s) $826 $551 $826 $599 $1,084 $809 $1,618 $3,235 $4,853 $1,618 $1,618 $809 $809

Jobs Generated 11 7 11 8 14 11 21 42 63 21 21 11 11 Total Duration (Years) 3.25 Total Cost (millions) $19.3 Jobs Generated 250

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VI. PLANNING APPROVALS A thorough review of NEPA requirements and potential environmental impacts has been conducted for the Project. Environmental work related to the Project was begun as part of the Port’s rail plan in August 2011 in the Port of Portland Rail Plan Environmental Conditions Baseline Report. This report identified environmental conditions for several projects proposed under the rail plan, including the grade separation at North Rivergate Blvd. In Spring 2013, the environmental conditions and potential permits were evaluated as part of a revised rail plan and included the grade separation at North Rivergate Blvd. These initial studies identified the baseline environmental conditions at the site and thepotential permits that would be required for the Project. A review of permitting requirements has determined that all NEPA permitting can be complete well before the TIGER VII obligation deadline of September 30, 2017.

All Project elements are consistent with regional land use and transportation planning goals. The grade separation project was identified through the Port of Portland Rail Plan, which included a working group made up of Class 1 and short line railroads, the states of Oregon and Washington, the City of Portland, and Metro. Subsequently, the Project was adopted by the Port Commission into the Port Transportation Improvement Plan through a public process. The project has been adopted into the Regional Transportation Plan and the State Transportation Improvement Plan. Documents that include Project elements are: 2015 Port Transportation Improvement Plan Port of Portland Rail Plan Metro Regional Transportation Plan State Transportation Improvement Plan The City of Portland Comprehensive Plan The City of Portland’s Transportation System Plan and Bicycle Plan for 2030

VII. FEDERAL WAGE RATE CERTIFICATION Federal Wage Certification can be found on the website.

29 www.portofportland.com/tigerVII.aspx Portland Marine Terminal Freight and Jobs Access Project LETTERS OF SUPPORT AND CONTACT INFORMATION

VIII. LETTERS OF SUPPORT APPLICANT CONTACT: City of Portland Mayor, Charlie Northwest Cascade, Inc Letters in addition to those listed Hales are on the Port’s TIGER VII Philip Healy Oregon Business Association website. 7200 NE Airport Way City of Portland Commissioner, Portland, OR 97208 Steve Novick Oregon Freight Advisory Committee 503-415-6512 Multnomah County Commissioner [email protected] District 3, Judy Shiprack Oregon Health and Science University Oregon Transportation Commission Oregon Rail Users’ League FOR FULL TIGER VII GRANT APPLICATION American Association of Port Pacific Northwest Waterways Authorities Association AND DETAILS SEE: WWW.PORTOFPORTLAND. BNSF Railway Company Portland Business Alliance COM/TIGERVII.ASPX CBRE, Inc. Portland Development Commission Coalition for America’s Gateways and Trade Corridors Portland Freight Committee Colliers International Teevin Bros. Land & Timber Co, “Efficiency of our LLC Columbia Corridor Association rail infrastructure is Union Pacific Railroad Columbia Export Terminal, LLC highly critical to our Working Waterfront Coalition cost competitiveness in ConGlobal Industries the global agricultural David Evans and Associates, Inc. arena of grain exports.” EVRAZ North America -Bryan Patrick Greater Portland Inc Columbia Export Terminals, LLC

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