The city of Bend announced Friday it received a $32 million federal grant to pay for the construction of a railroad separation on Reed Market Road, a long-anticipated project promising to reduce traffic jams on a key east-west artery.

The award — the largest sum of grant money Bend has ever received — solidifies the future of the railroad overpass amid climbing costs and frees up transportation bond funds for other projects on Reed Market Road.

“Frequent and unpredictable” train crossings, up to six to eight per day, can cause delays of up to 20 minutes or more, according to the city.

The city estimates the project will begin construction in 2027.

“By updating the crossing, we will see safety improvements for all users, a reduction in emissions from idling cars and eliminate the need to stop and wait for the train to clear the roadway,” said Mayor Melanie Kebler in a news release.

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As costs climb for Reed Market railroad crossing, Bend bids for huge federal grant

The city estimates the project will begin construction in 2027 or 2028.

Funds come from the Bipartisan Infrastructure Law and the Federal Railroad Administration’s Railroad Crossing Elimination Grant Program. The city had already received $1 million for the project through that same program last year.

The city’s grant application pegged project costs at $46 million, and committed the city to pay for 30% of the project. Those funds will come from the 2020 transportation bond approved by voters, which earmarked $32 million for improvements to the Reed Market corridor, and is split between the railroad crossing, roundabout widening at 15th Street and a Bend Parkway project.

The city held an open house to gather feedback for the project in December, stating that it was still uncertain whether the crossing would be a bridge over or a tunnel under the Burlington Northern Santa Fe Railway, which crosses the road just west of the intersection with Ninth Street. Ryan Oster, lead engineer with the city, said Friday the project will be a bridge.

Prospects of a Reed Market railroad crossing go back at least to 2006, according to The Bulletin archives. A city study from that year put cost estimates at $6 million to $7 million.

An $18 million reconstruction of Reed Market Road was the largest single item from a $30 million bond approved by voters in 2011, but did not include money for an overpass.

On Friday, an announcement of the award from Oregon’s congressional delegation said senators Jeff Merkley and Ron Wyden had “long championed” the Reed Market project.

“The new overpass bridge in Bend marks a huge win for pedestrians and cyclists as well as motorists,” Wyden said.