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Recognizing the difficult economic times, officials of the

unveiled plans Thursday for a significantly downsized first-phase of the controversial bridge and freeway expansion that would pare the price tag by about $650 million.

In the face of mounting financial questions and public skepticism, the CRC said it was time for "a reality check."

By eliminating most planned improvements to the Marine Drive interchange and three interchanges in Vancouver, the CRC told an Oregon Legislative committee that it can cut the estimated cost of the project from $3.1 billion to $2.45 billion. Oregon's needed contribution to the project could be reduced as well from $450 million to $300 million.

The CRC leadership dropped the bombshell at a hearing of a joint CRC oversight committee of Oregon legislators.

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"We hope you'll go forward with the $450 million and the full build," CRC government affairs official Patricia McCaig told the assembled committee. "But the reality is, we've clearly been directed by the Governor, the public and conversations with you to go for a smaller project. That's the reality of these times."

Gov. Kitzhaber was the driving force for scaling back the CRC plan. He demanded a second look at possible revisions last summer after consultants for the Oregon Treasury reported that the CRC's toll revenue projections were overly optimistic and based on inflated traffic projections.

"We strongly believe we're moving in the right direction and that we're going to get this bridge built," Kitzhaber spokesman Tim Raphael said. "We look forward to working with the legislature to put the funding together."

The Columbia River bridges themselves will survive unchanged under the new plan, as will the extension of light rail from the Expo Center in North Portland to Clark College in Vancouver. The mammoth freeway interchange at Hayden Island also survives, though in a slightly smaller form, as does the State Route 14/city center interchange in Vancouver.

But planned improvements to the Marine Drive interchange in North Portland and the Fourth Plain, Mill Plain and State Route 500 interchanges in Vancouver will be put off.

CRC officials said the said the downsized project will still deliver on two key goals: improved safety and freight mobility. McCaig labeled the downsized "minimally necessary and functional."

None of the CRC officials mentioned if the proposed changes would solve traffic congestion.

As more federal money becomes available over the years, or if toll revenue is higher than expected, some of the postponed facets of the project can be restored, boosters said.

Eliminating improvements to the Marine Drive interchange will likely not be received enthusiastically by

officials. The chronically clogged interchange is a key access route to the Port's busiest shipping terminals. McCaig pointed out that under the initial construction schedule, work was not to begin on Marine Drive for another five years anyway.

It's also unclear how Washington state officials will react to the news. Washington is still going forward with plans to contribute the full $450 million, McCaig said.