King County, Port of Seattle in Major Land Deal

County, Port, railroad announce discussions to bring multi-faceted transportation improvements to county residents

King County Executive Ron Sims and Port of Seattle Chief Executive Officer Mic Dinsmore today announced discussions that may support billions of dollars of economic benefits in the region and would provide a recreational amenity unique in the nation that will add to the region's quality of life now and for future generations.

At the center of the agreement, King County would gain title to the 47 miles of eastside rail corridor, and the Port would take over ownership and operation of King County International Airport (Boeing Field).

Sims and Dinsmore announced the discussions between the county and Port in which the Port would acquire the right-of-way from the Burlington Northern Santa Fe Railroad, and then transfer ownership and funds for development to the county for a recreational trail.

Other potential elements could include a new intermodal rail facility and long-needed improvements to the rail corridor at Stampede Pass. Once a viable alternative intermodal rail site that meets the county's needs is identified, the Port would acquire the Fisher Flour Mills site on Harbor Island. In addition, Governor Christine Gregoire has identified $25 million to improve freight mobility in Stampede Pass.

"Government entities must play to their strengths and also look at new models for securing the services people need in this new century," said Sims. "Instead of traditional ways of financing such an extraordinary opportunity, we looked at our assets and developed an innovative partnership that will benefit our residents in multiple ways."

"The rail corridor will give us added quality of life and a legacy that will be seen as visionary in the future," Sims said. "This would help King County concentrate on a regional parks and a trail system like none other in the nation. The concept also allows the County to land-bank the corridor so it will not be parceled out by private development. The corridor was assembled over one hundred years ago and once it is divided, it will be lost forever."

"This discussion has many complicated interdependent variables, and each one of those parts has a tremendous impact on the region's future," Dinsmore said. "Nothing is more important than retaining our region's competitive edge and in enhancing the quality of life for our citizens. In addition to contributing to these vital rail projects, we would be consolidating the region's major airports under one operator. The nature of King County Airport would not change, because we would continue along the strategic plan begun by the county, which does envision a profitable airport."

"Our region's economy and quality of life depend on thoughtful planning and investment," said Senator Patty Murray. "Today's announcement represents the kind of forward thinking that will help secure a brighter future for our region. I want to commend the Port of Seattle and King County, and in particular Mic Dinsmore and Ron Sims, for their leadership in putting these elements together."

"This is an innovative solution that reflects the goals behind my container ports initiative - it anticipates future demands on our transportation system and will help to efficiently move our high quality Washington agricultural products to the global market," said Governor Gregoire. "Congratulations to Executive Sims for seeing the potential of this opportunity and for thinking outside the box when deciding on ways to pay for it."

With more than 47 miles of right-of-way from Renton to Snohomish, the Eastside rail corridor is one of the largest rail preservation projects in the nation. It passes through highly diverse urban, suburban and rural agricultural areas. It begins near the north end of Coulon Park in the City of Renton and passes through unincorporated areas, as well as seven cities, six in King County (Redmond, Woodinville, Kirkland, Bellevue, Newcastle and Renton) and one in Snohomish County.

Since 2003 BNSF has been interested in divesting itself of the rail corridor. Rather than let the property be sold piecemeal and lost to public use, Sims entered into an exclusive agreement last year with the rail company to negotiate a sale price that would allow King County to preserve the entire corridor. With this deal, instead of financing the trail purchase, the county will use an existing asset to secure a once-in-a-lifetime opportunity.

Sims said no decisions about the final use of the corridor will be made without completing the thorough public process begun roughly a year ago by the Puget Sound Regional Council. The public process has sought involvement by the citizens of King and Snohomish Counties as well as all impacted cities, communities and stakeholders.

A cost for the corridor is nearing finalization. If an agreement can be reached, the Port is expected to acquire the railroad right-of-way and pay the cost for developing the trail. Costs of other elements of the plan are still being analyzed.

Dinsmore said the Port will be meeting with residents and users of Boeing Field to talk about long-term planning for the airport. He said there are no plans to change the current mix of aviation operations there.

"We want to talk to the neighbors and users of the airport to make sure we understand their needs and desires," said Dinsmore. "We also want to put to rest any fear that Boeing Field might become a busy passenger airport."

Dinsmore noted that the Port has long sought to acquire title to the Fisher Flour Mills property on Harbor Island. He said that the property represents a significant business opportunity, helps consolidate the Port's holdings on Harbor Island, and helps secure the future of shipping and the world trade industry in this region.

Dinsmore added, "While I have had preliminary discussions with Port Commissioners, they have not seen a proposal and would clearly need to approve any agreement."

The final agreement requires approval by the King County Council and the Seattle Port Commission.