The Abridged version:
- West Sacramento staffers recently “suspended” all new work on the planned streetcar project that would provide a connection to Downtown Sacramento.
- City staffers said that tariffs and the rapidly rising cost of steel made it likely that construction costs would exceed the $164 million budget for the project.
- The current iteration of the Downtown Streetcar project would create a 1.8-mile route connecting Sutter Health Park in West Sacramento to Sacramento Valley Station in Sacramento.
The city of West Sacramento is pumping the brakes on the long-anticipated street car project that would provide a connection to Downtown Sacramento.
West Sacramento paused work on the project for the last two months, West Sacramento spokesperson Lanaya Lewis told Abridged by PBS KVIE.
City staffers disclosed earlier this month that the city had “suspended” work on the Downtown Streetcar project due to cost concerns, as first reported by Onsite Observer, a real estate blog.
Local leaders have dreamed of a streetcar line that would connect West Sacramento and Sacramento for the last 20 years. Currently the project is envisioned as a 1.8-mile route that would travel across the Sacramento River from Sutter Health Park in West Sacramento, past the Golden 1 Center in Downtown Sacramento and end at Sacramento Valley Station on I Street.
Sign Up for the Morning Newsletter
The Abridged morning newsletter lands in your inbox every weekday morning with the latest news from the Sacramento region.
West Sacramento staffers said that cost concerns like tariffs and price volatility in construction materials are forcing them to re-evaluate the project.
“As a result of these external factors, there is a high likelihood that construction contractor bids will significantly exceed funds sourced for the project,” a staff report states.
The report adds that supply chain disruptions have “placed upward pressure on major infrastructure projects nationwide.”
The report detailing the street car suspension was prepared as part of West Sacramento’s broader plans to research more transit options for the city. The West Sacramento City Council approved an $847,500 contract for a consulting firm at its Aug. 19 meeting.
Sacramento Regional Transit currently has a pool of $164.3 million for the project, between a mix of local, state and federal funding sources. SacRT’s general manager and CEO Henry Li previously said the $14.5 million investment from West Sacramento was one of the final pieces that allowed the project to move forward.
In February, SacRT stated it was aiming to break ground on the street car project by the end of the year. Since then, the agency has since shifted its timeline to seek construction bids in spring 2027.
“The project timeline will need to shift as the City of West Sacramento and SacRT evaluate the significant increase in project costs and identify a sustainable path forward,” spokesperson Jessica Gonzalez said in an email.
In a joint statement, both SacRT and West Sacramento pointed to issues in the financial landscape, citing that the cost of steel has increased 30% over the last year.
“Cost growth presents an opportunity for the City of West Sacramento and SacRT to work together to evaluate and identify a financially sustainable path forward for this vital regional connection,” the joint statement reads.
Streetcar project hit snags before
City officials in Sacramento and West Sacramento began exploring a possible streetcar connection across the Sacramento River in 2006, when the two cities began a joint feasibility study.
The scope of the project shrank significantly over the decades. At one time, the streetcar was envisioned as a 3.3-mile route with 23 stops. Early maps show a broad loop that would have reached the edge of midtown at 15th and L streets. The line also would have extended down West Sacramento’s Riverfront Street near the current location of Drake’s The Barn.
Cost requirements saw planners shrink the project down to its currently proposed 1.8-mile route that would have only nine stops.
Construction costs have also snagged another proposed connection between the two cities. In April, bids for the new I Street bridge arrived nearly $100 million over the estimated cost for the new crossing. While work on the bridge was originally slated to begin in 2027, planners are sifting through another round of construction contracts.
