Highway to Heaven?
The Things He Carries
A New Political Order?
Shoot for the Stars


 

The History

The Cost

The costliest highway project in U.S. history offers lessons for the nation’s future mega-projects.

EARLY LAST WINTER, IN A TUNNEL under Boston’s Fort Point Channel, Federal Highway Administrator Mary Peters stood before a crowd of construction workers, engineers, and dignitaries and spoke the words many Bostonians had longed for: “I-90 is now complete.”

The January celebration, replete with brass band and ribbon cutting, marked the finish of a 3 1/2-mile roadway, most of it in tunnels, extending the Massachusetts Turnpike (I-90) to Boston’s Logan Airport. The new roadway represented an engineering feat that created a highway tunnel that, among other challenges, stretched under railroad tracks near Boston’s South Station and over a subway tunnel (built of unreinforced concrete) in Fort Point Channel, a small waterway adjacent to downtown Boston.

The event also signaled, after almost two decades of planning and construction, fruition of the region’s $14.6 billion Central Artery/Tunnel project (CA/T or known locally as the “Big Dig”) — the most expensive public works project in the nation’s history and perhaps the most technologically complex highway ever built as well. The project, which, in addition to the I-90 connector tunnel, also includes an eight-to-ten lane stretch of underground highway in the heart of downtown Boston and a major new bridge across the Charles River, is scheduled for completion in 2005.

While enthusiasm for the project’s incredible technical achievement ran high that day, some of the project’s more difficult realities were left unstated, according to the Kennedy School’s Alan Altshuler and David Luberoff, authors of the recently published Mega-Projects: The Changing Politics of Urban Public Investment. Co-published by the Brookings Institution and the Lincoln Institute of Land Policy, the new book reviews and analyzes the history of many major projects, including the Big Dig project.

In particular, say Altshuler, a Kennedy School professor and director of the school’s Taubman Center for State and Local Government, and Luberoff MPA 1989, associate director of the center, contrary to the conventional wisdom of the mid-1970s, the unstated question posed by the project is not whether we can build big projects, but whether the projects we are building are worth the money we are spending on them.

Lessons Learned

Interviewed in Altshuler’s office, the authors explained that while the project’s scale and cost are unique, its history offers many important lessons about what it now takes to build major projects in urban areas.

“Perhaps the project’s most important lesson,” says Altshuler, “is that project planners and supporters today face tremendous pressures to ‘do no harm.’ The rise of environmentalism in the 1970s made it difficult for mega-projects to proceed if any significant group or area might be adversely affected. No longer is doing the most good for the greatest number of people an acceptable paradigm.”

Such was not always the case. In the 1950s and 1960s, states and localities built new highways in urban areas, tore down whole neighborhoods for urban renewal projects, and greatly expanded existing airports (or built new ones on much larger sites). In Boston such projects included the original elevated Central Artery (to be torn down when the Big Dig project is completed) and the Massachusetts Turnpike (see map). It also included an entire new residential community (Charles River Park), built on what had been Boston’s West End, a densely populated residential neighborhood, and new runways and terminals at Logan Airport, most of them built on land that had been parks and houses a few years earlier.

While the construction boom had enormous cultural and economic consequences, the projects were highly disruptive, often displacing thousands of people and devastating urban parkland. “The thinking back then,” says Luberoff, “was that the impact should be sustained for the greater good. As Robert Moses, New York’s famed master builder who oversaw the construction of many highways and urban renewal projects was fond of saying, ‘You can’t make an omelet without breaking eggs.’”

Altshuler, who was Massachusetts secretary of transportation in the early 1970s, played a central role at the time in stopping many highways then planned for greater Boston and approving the first planning studies for the artery depression. “Massachusetts, like other states,” he recalled, “profited greatly from the new highways but, also like them, it saw the extensive disruption that major road building often causes, especially when done within a major city.”

By the early 1970s, he added, public backlash against such impacts, combined with new environmental laws, made it virtually impossible to build such projects in urban areas.

In response, some public officials began to seek ways to build projects that had fewer negative impacts and that mitigated any remaining impacts. In the early 1970s, for example, Frederick Salvucci, then a transportation advisor to Boston Mayor Kevin White KSGP 1958, proposed replacing the elevated Central Artery with a depressed highway whose construction not only would not take any houses but also would allow the removal of an elevated eyesore. Salvucci went on to pursue the project as Governor Michael Dukakis’s secretary of transportation in the mid 1970s, and, in 1983, when he and Dukakis returned to office, Salvucci combined the artery depression idea with the concept of building a third Boston Harbor tunnel connecting Boston and its airport — a project long desired by the region’s leading business groups.

At about the time Salvucci was first proposing the artery depression, planners in New York City were suggesting a similar scheme, later named Westway, to replace Manhattan’s aging, elevated West Side Highway. This project was highly controversial and was abandoned in the mid-1980s after a series of adverse court decisions about the project’s environmental impacts — specifically project efforts to ignore data showing that Westway would harm fish in the Hudson River.

In a slightly different vein, in the late 1970s, California officials broke a longstanding impasse over the Century Freeway, a planned highway in Los Angeles. The project’s planners agreed to reroute some of the road so it would not destroy as many houses and to build (or renovate) more than 4,000 units of housing in partial replacement of the approximately 8,000 units of housing lost in the course of building the road.

Other regions, in contrast, dropped highway plans and instead chose to build new rail transit lines, which were much easier to site. Meanwhile, few airports and runways were built after the 1970s. Most airports did rebuild terminals to better accommodate wide-body planes and new hub-and-spoke route systems. Similarly, after urban renewal and its strategy of tearing down neighborhoods came to an end in the early 1970s, most localities turned to projects that were easier to site. Festival markets located in historic buildings, such as Boston’s Quincy Market, and new stadiums, arenas, and convention centers often located in older industrial areas close to downtown office districts became the new projects, all of which, note Altshuler and Luberoff, exemplify the “do no harm” planning paradigm.

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Another lesson from the Artery/Tunnel’s history, they say, is that projects are easier to build when local taxpayers are not asked to pay a substantial portion of their costs. Instead, projects are funded by higher-level governments or (as is the case with many stadiums and convention centers) via levies that fall most heavily on outsiders, such as taxes on hotel rooms and meals.

“The Big Dig project,” says Altshuler, “illustrates the quest for outside funding at a particularly grand scale, but also shows how the best-laid plans can go at least somewhat awry.” After an intense lobbying campaign in the mid-1980s, the project’s advocates — mainly state political and local business leaders — secured federal legislation adding it to the Interstate Highway system. This meant that, if all went well, the federal Interstate program would cover about 85 percent of the project’s cost, then estimated at $3.1 billion — funds over and above the state’s normal allotment of federal highway aid.

In 1991, however, the project’s estimated cost having risen to $5.2 billion, and with Massachusetts now the only state in the nation still at work on its Interstate system, Congress capped the project’s Interstate aid. Future cost increases were now the state’s responsibility, says Altshuler, and the project’s cost eventually rose to $14.6 billion. “The result is that whereas special Interstate funding was once expected to cover 85 percent of the cost, the current estimate is 29 percent. Another 29 percent will be drawn from federal aid streams allocated to the state by formula, which could have been used for other state highway and transit projects.” (See graph, right.)

The lesson, says Luberoff is that “while the Big Dig, by almost any conceivable measure, is a wonderful project, it would have attracted virtually no support if its ultimate costs to Massachusetts had been known at the outset. More generally, it seems true that when state and local taxpayers expect that outside benefactors — whether higher-level governments or merely visitors from other jurisdictions — will cover most project costs, they pay little attention to the question of whether benefits and costs are commensurate.” In fact, he adds, most economists find that the rail transit, stadium, arena, and convention center projects built in recent decades are “hugely expensive in relation to likely benefits.”

In general, says Luberoff, there have been two responses to this situation. Advocates of the current projects maintain that the economists’ critiques are invalid because they miss intangible project benefits such as fostering community pride. Proponents of the kinds of projects stymied by current rules, in contrast, have pressed in recent years for the federal government to relax the environmental laws that prevent new runway and highway projects, which benefit-cost analysts tend to rate more favorably.

Moving Forward

Both Altshuler and Luberoff observe that there is no easy resolution to these issues because they involve tradeoffs between important, deeply held values. They assert, however, that their review of a half-century of public works projects in urban areas left them with two clear impressions about good ways to proceed.

“First,” says Altshuler, “states and localities should be required to bear half or more of the cost of projects they undertake, because great windfalls of earmarked money from higher levels of government tend to overwhelm serious local deliberation.” Second, Altshuler adds, “there are still no substitutes for strong environmental regulation and vibrant local democracy in helping to ensure that, as local growth coalitions proceed, they do not leave fouled environments and devastated neighborhoods in their wake.”

For more info about Mega-Projects: The Changing Politics of Urban Public Investment go to www.brookings.edu.