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This case study is part of the Federal Highway Administration toolkit on innovative finance strategies to accelerate bicycle and pedestrian project delivery, a reference for local and state transportation agencies. Transportation System Development Charges funded the Cully Boulevard Green Street Project in Portland, Oregon.
Since 1997, the Portland Bureau of Transportation (PBOT) has funded a total of 53 projects through Transportation System Development Charges (TSDCs). TSDCs are one-time fees that developers pay when they construct new buildings in Portland, including homes, offices, and stores (with some exemptions, such as buildings that will have a negligible impact on trip generation and some low-income housing projects). These fees are based on how many trips a new development will create. The fees go to projects on a TSDC project list.
Every 10 years, PBOT updates the TSDC fee schedule, funding methodology, and project list. To update the rates, PBOT determines the cost per trip based on the existing system, forecasts the 10-year growth in PM peak hour person trips generated by new development within the city, and determines the TSDC project list for the next 10 years. Then, PBOT divides the TSDC-eligible list cost by the 10-year growth in person trips to determine the TSDC cost per person per trip. Finally, PBOT calculates TSDC rates by development type, based on the number of trips generated by different land use types.
For the current 2017-2027 TSDC funding cycle, the PBOT, in collaboration with Dr. Kelly Clifton at Portland State University, developed a new methodology that is based on person trips, rather than vehicle trips. PBOT uses national and regional data, such as person trip surveys for each development type, to estimate person trips. The units of measurement vary based on development type.
For example, the following table shows the TSDC rate schedule for three land use categories. The unit of measure is different for each category.
TSDC Rate Examples
| Land Use Category | Unit of Measure | PM Peak New Person Trips/Unit | TSDC Rate |
|---|---|---|---|
| Single family, 1,200 square feet or more | Dwelling | 1.23 | $5,544.00 |
| Hotel | Room | 0.82 | $3,732.00 |
| Quick service restaurant (drive-through) | Square feet/gross floor area | 21.85 | $99.43 |
Source: Portland Bureau of Transportation
Portland charges supplemental TSDCs in two “overlay” areas: the North Macadam overlay area and the Innovation Quadrant overlay area. The City has targeted these two areas for higher-intensity development and uses the fees to help expand multimodal capacity.
Since 1997, TSDCs have generated over $130 million for projects on the TSDC project lists. PBOT develops this list every 10 years based on the long-range plan. Eligible projects are projects that add person-trip capacity and accommodate new trips created by growth. Maintenance and operations projects are not eligible. Bike lanes, sidewalks, trails, pedestrian crossings, traffic signals, and transit projects are eligible. Typically, TSDCs cover approximately one-third of project costs, alongside other sources such as grants or Federal funding, but can cover 100 percent of costs if needed.
The Cully Boulevard Green Street project is an example of a project funded partially through TSDCs. The Cully neighborhood is a diverse, largely residential neighborhood in northeast Portland that had experienced disinvestment and poor transportation connectivity. In the late 2000s, residents and businesses in the area expressed interest in revitalizing the main street area. PBOT initiated a multiyear effort that focused on improving transportation connectivity, neighborhood business vitality, and multimodal safety. The Cully Boulevard Green Street project was a part of this broader set of improvements.
The Green Street project rebuilt 0.7 miles of NE Cully Boulevard in between NE Prescott Street and NE Killingsworth Street. On NE Cully Boulevard, there was a need to enhance pedestrian access to a grocery store, an apartment complex, the Tri-Met line, and other neighborhood destinations. There were also safety issues, such as a confusing five-way intersection. PBOT saw an opportunity to build bicycle and pedestrian infrastructure because the right of way was 60 feet wide and the road was only 24 feet wide at the time. City traffic engineers and planners studied cycle tracks in Copenhagen, using them as a model for the improvements. Ultimately, the project included 7.5-foot-wide raised, separated bike lanes (cycle tracks), 6-foot-wide sidewalks, and 4-foot planting strips. A curb separates the bike lanes from traffic. The project also included Americans with Disabilities Act (ADA) improvements and new traffic signals.
The Cully Boulevard Green Street Project cost $5.4 million. TSDCs provided $1.2 million for the project. The Metropolitan Transportation Improvement Program allocated $773,000 in Federal funds to the project in 2007 and $1.6 million in 2009. The City of Portland’s general fund provided the remaining $1.875 million. The costs included design, right of way acquisition, and construction.
The City of Portland, Oregon Department of Transportation, and Hacienda Community Development Corporation worked to involve Cully area residents in the project. Westech Construction, Inc., as the lowest bidder, was the general contractor for the project. Westech encouraged its subcontractors to hire neighborhood residents and to train them to be certified construction area flaggers. Verde, a local nonprofit focused on environmental investments in low-income neighborhoods, served as the primary contractor for the project’s vegetation work. Verde had previously received training from Bureau of Environmental Services staff on landscaping and stormwater management. For this project, Verde hired local residents to help with plant installation and stormwater planter maintenance. Verde also provided educational seminars in the Cully neighborhood.
The cycle track opened in 2011. The mayor noted that the project transformed Cully Boulevard from previously “one of the busiest, most dangerous streets in Portland” to “one of the most advanced designs in the United States.” Following this project, the City worked on additional projects in the Cully area, including connections to the cycle track.
Richard Eisenhauer
Program Manager, City of Portland
(503) 823-6108
richard.eisenhauer@portlandoregon.gov
Winston Sandino
Project Manager, City of Portland
Winston.Sandino@portlandoregon.gov
1120 SW Fifth Ave., Suite 1331
Portland, OR 97204
City of Portland Bureau of Transportation. 2012. Cully Main Street and Local Street Plans Implementation Report.
City of Portland Bureau of Transportation. 2012. Cully Commercial Corridor and Local Street Plan.
Maus, Jonathan. 2011. Riding Portland’s first (real) cycle track on Cully Blvd.
Maus, Jonathan. 2010. First look at cycle track in progress on NE Cully Blvd.
Metro. 2011. Northeast Portland community celebrates a new and improved Cully Boulevard.
Portland Bureau of Transportation. N.d. Cully Boulevard Green Street Project.
Portland Bureau of Transportation. 2020. Transportation System Development Charge Annual Report.
Portland Bureau of Transportation. 2017. Transportation System Development Charge Update.
City of Portland
Jonathan Maus
