The Green Line Extension (GLX) Project

Secretary Pollack:

For many years, the City of Cambridge has been a strong supporter of the relocation of Lechmere Station and the Green Line Extension (GLX) from Cambridge to Somerville and Medford. The purpose of the GLX project is to improve regional air quality, encourage sustainable growth, promote economic development, and provide a convenient means of public transportation for residents, employees, and visitors along the GLX corridor.

This project will benefit the three municipalities it touches as well as the entire Greater Boston region and the Commonwealth of Massachusetts.

This Letter of Intent (LOI), which I am submitting to the Massachusetts Department of Transportation (MassDOT) Board of Directors and the Massachusetts Bay Transportation Authority (MBTA) Fiscal and Management Control Board, is intended to set forth the terms and conditions that I, as the City Manager of the City of Cambridge, intend to discuss with and recommend to the Cambridge City Council as the basis for the City of Cambridge to commit to contributing to the construction costs associated with the GLX, to the extent legally permissible, and subject to City Council approval and appropriation of funds.

While the Commonwealth’s appeal for local funding contributions at this late stage in the project represents an extraordinary request, I believe that the value of this project to the City of Cambridge, the Boston Region, and the entire state requires us to respond in a meaningful way to help move this project towards reality. I also intend to work with the North Point developers to obtain commitments from them to contribute financially to the GLX in partnership with the City.

The Green Line Extension Project

The City of Cambridge supports the GLX and I will recommend that the City Council approve the City contributing an amount that the City Council considers to be a fair and reasonable amount to assist in offsetting the cost of the project, in partnership with the Federal Government and the Commonwealth of Massachusetts, based upon the proposed total budget for the project and the proportionality of Cambridge’s monetary contributions of new revenue thereto, the City’s reasonable financial capabilities, the contributions of new revenue from the other municipalities the GLX touches, and assurance that the project will commence as scheduled and continue reasonably to completion.

GLX will comprise seven Green Line stations. The project will relocate Lechmere Station and create a new Green Line station in Union Square in Somerville. Five additional stations will also be built outside of Cambridge, between Lechmere Station and College Avenue in Medford along existing railroad rights of way. The GLX stations will be designed in accordance with MassDOT/MBTA station requirements.

MassDOT will obtain all necessary legal approvals for the GLX and its operations from any local, state, or federal agencies. The GLX will be constructed in accordance with a construction management plan approved by MassDOT, and will be operated and maintained by the MBTA. Service, at a minimum, will include stops on both inbound and outbound trains during standard MBTA service hours.

MassDOT will be responsible for compliance with all state procurement requirements, public bidding laws, and any other laws applicable to MassDOT due to its governmental status. In making this financial contribution to MassDOT/MBTA’s construction of Lechmere Station and the other improvements that are part of the GLX project, the City does not commit to taking on any additional responsibilities related to the planning, design, construction, operations, or maintenance of any GLX facilities.

Value of Financial Contribution

I intend to recommend to the Cambridge City Council that the City contribute fair and reasonable funding, as set forth in this letter, to support the GLX project and to help close the currently anticipated budget gap that remains after the project is value engineered, in the event that all other efforts to procure and employ federal and state funds for the project have been exhausted and a gap remains that can only be addressed with monetary contributions from Cambridge, North Point developers in Cambridge, and other municipalities.

The financial contribution will be based upon the value of the infrastructure improvements in Cambridge and the economic, environmental, and mobility benefits those improvements create, and will be subject to the requirement that other municipalities contribute their reasonably proportionate share of new revenue required for the gap funding.

I am prepared to enter into discussions with the Cambridge City Council and the North Point developers to seek their approval for the City to contribute up to $25,000,000 of new revenue towards the completion of the GLX project, in the manner described below.

The exact nature, timing, and form of this contribution is still to be determined, but it will represent new revenue to the project that will directly contribute to closing the funding gap together with proportionate contributions of new revenue from other municipalities that the GLX project will touch.

The contribution from Cambridge-based sources will make up not more than one third (1/3) of the total amount of new revenue that is provided from the municipalities of Cambridge, Somerville, and Medford for the gap funding.

Use of Financial Contribution

This $25,000,000 commitment of new revenue from Cambridge-based sources will be used solely for the construction of the project-related improvements within the City of Cambridge, including the new and relocated Lechmere Station that will be built as part of the GLX. MassDOT and the MBTA will work with the City of Cambridge to establish a mechanism to ensure that the funds are used in this manner, and will ensure that any expenditure of those funds will be for the GLX project only and consistent with the terms and conditions outlined in this letter.

Payment Mechanism

Assuming the Cambridge City Council and the North Point developers commit to contributing to the GLX project as outlined above, the City of Cambridge will work with MassDOT, the MBTA, and other relevant state agencies to develop mechanisms for disbursing the agreed upon funds and committing those funds to the Commonwealth for the GLX project.

These mechanisms could include direct cash contributions, state borrowing backed by guaranteed payments from the City of Cambridge (through the Cherry Sheet or other appropriate mechanism), or other similar mechanisms for payments from the City of Cambridge or the North Point developers.

Over the course of those discussions, I expect to reach agreement with MassDOT and/or the MBTA on the amount to be paid, the period and frequency of payment, the mechanism of payment, and any regulatory or statutory changes that may be necessary to accomplish the foregoing.