Raimore Construction will exit Portland's $3.5 billion I-5 Rose Quarter project over the coming months, the firm announced Thursday, Oct. 1.

The departure, first reported by KGW, removes the partner most closely tied to the project's promise of economic opportunity for Portland's Black community and local small businesses. The project aims to build a 1,500-foot freeway cover reconnecting the historically Black Albina neighborhood, which was divided when I-5 was built through the area in the 1960s.

A joint news release from Raimore and the project's primary contractor, the Hamilton/Sundt Joint Venture (HSJV), called the exit a "planned, phased transition." It cited Raimore's business needs "as the project's schedule, funding and anticipated construction opportunities have evolved." The release added that the move "highlights how project delays and changes in transportation funding can affect local businesses that invest in people and capacity based on anticipated work."

Raimore President Jeff Moreland said the decision was difficult.

"We are proud of what Raimore has contributed to this project and the role we have played in advancing opportunities for local small contractors," Moreland said in the release.

The project's 2022 Diversity and Subcontracting Plan assigned Moreland oversight of the diversity team. HSJV Project Executive Scott Williams called Moreland a trusted adviser who was willing to have difficult conversations that improved the team and the project. Williams said the joint venture plans to continue the community engagement and small-contractor mentoring work Raimore led.

HSJV remains on the project. KGW reported it contacted the Oregon Department of Transportation (ODOT) about the impact of Raimore's exit but had not received a response as of Oct. 1. The official project website, i5rosequarter.org, had posted no announcement about the departure as of its last update on Sept. 25.

The exit comes as the Rose Quarter project faces a deepening funding crisis. Originally estimated at about $500 million when Oregon lawmakers approved it in 2017, the price tag has ballooned to roughly $3.5 billion, according to KGW. The Trump administration revoked most of a $450 million federal Reconnecting Communities grant awarded under the Biden administration, eliminating nearly half the project's established funding.

After that loss, only $167 million in construction funding remained beyond the current Phase 1A work, according to earlier KGW reporting. Phase 1, which would have included the first section of the freeway cover, was estimated at $594 million as of 2024.

ODOT pressed ahead with Phase 1A and a follow-up Phase 1B planned for 2027, but both focus on peripheral work at the south end of the Rose Quarter. Neither includes freeway cover construction. Oregon voters rejected transportation tax and fee increases in May 2026, further narrowing the path to full funding.

At a Dec. 11, 2025, Oregon Transportation Commission meeting, the commission voted to direct the remaining $167 million toward a plan proposed by Albina Vision Trust, Portland Mayor Keith Wilson and three Metro councilors. That plan calls for spending on both I-5 mainline and highway cover improvements in parity. ODOT Rose Quarter Program Director Monica Blanchard told the commission at that meeting that canceling the project would mean "further eroding their trust in ODOT" among Portland's Black community, BikePortland reported.

No community reaction to Raimore's departure from Albina Vision Trust or Portland City Council members had surfaced as of Friday, Oct. 2. No next public meeting on the project's contractor transition has been announced. Updates are posted at i5rosequarter.org/news.