1. Regional Transportation Investments: Alaskan Way Viaduct / Seawall Port of Seattle Commission Policy and Staff Briefing March 14, 2006 Item No. xx Supp. Meeting 3/14/06

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3. 3 Mission & Strategy Creating Economic Vitality HERE.  Be a catalyst for regional transportation solutions. The Port is a leader in moving freight and people, and providing related services. The Port will leverage its infrastructure investments in collaboration and partnership with other agencies to develop regional transportation systems that are key to the Port’s and the region’s future success. Key objectives:  Ensure long-term effective access to airport and seaport facilities  Provide access to future port land development projects  Promote regional economic competitiveness

4. 4 Previous Port investments in Regional Transportation  Historical Investments in single projects –West Seattle Bridges (upper & lower) –1st Avenue S. Bridge –Galer Street Flyover  FAST = Strategic approach –Geared to stimulate investments from others –Cooperative with the Port of Tacoma –FAST 1: Ports share $36 million; 10% –FAST 2: Ports share $18.4 million; 7%; endorsed Jan. ‘03

5. 5 What is the Viaduct/Seawall project? Provide a transportation facility and seawall with improved earthquake resistance, that maintains or improves mobility and accessibility for people and goods along the existing Alaskan Way Viaduct Corridor.

6. 6 Why is it important to the Port?  Economic vitality  Regional transportation connectivity  Freight mobility  International trade, truck and rail  Access to and use of Port properties (June 2002)

7. 7 Port Commission articulated policies  Maintain corridor capacity on the road and rail systems  Provide critical freight mobility access to the waterfront for our business interests and the region  Protect access to Port properties, especially east-west to the interstate system  Minimize construction impacts to the Port  Support complementary system upgrades (May 2004)

8. 8 Feb 01Nisqually Earthquake Fall 01Established Port viaduct/seawall project goals and Port staff submitted environmental scoping comments Jun 02Developed input to Leadership Group: regional issues and alignment details Oct 03Review and update May 04Comments on Draft Environmental Impact Statement (D-EIS) and expressed preference for the tunnel alternative Sep 04Capital investment discussion: affirmed project’s importance to Port and directed staff to work on funding sources Fall 05Plan of Finance discussion included modeling a flat levy rate, deferring “renewal and replacement projects,” and Port participation in the tunnel alternative starting in 2009 for $20 million annually over 10 years Port Commission reviews and actions

9. 9 Winter 03 State passage of Nickel Gas Tax added $177M funding April 05State passage of 9.5¢ gas tax added $2 billion funding July 05Federal transportation bill reauthorization funds $231 million Sep 05Port Commission Resolution #3547, opposing passage of Initiative 912 Funding milestones

10. 10 Current Funding Status  Full project cost estimated at $3.7-4.5 billion  Core tunnel cost estimated at $3.0-3.6 billion --------------------------------------------------  Committed Funds($2.45 billion)  $2 billion State 2005 Transportation Partnership  $193 million State 2003 nickel package & prior  $15.8 million City of Seattle  $239.5 million Federal authorizations  Funding under consideration($1.55 billion)  $300 million City General Fund & Utilities Relocation  $250 million City of Seattle Transportation Revenues  $200 million Port of Seattle  $800 million Regional Transportation Investment District

11. 11 Key Port issues to be addressed in agreement  Sufficient funding for project elements important to Port  Demonstrate Port benefit commensurate with participation  May take form of cash, right-of-way, or Local Improvement District (LID) credit  City also makes investment  Port payment as reimbursement  Port payment proportionate to others’ over time  Port approves design, traffic mitigation, and project phasing at several milestones  Complementary system upgrades  Other considerations?

12. 12 Next steps The Chief Executive Officer will begin to negotiate an agreement with the City of Seattle and Washington State Department of Transportation (WSDOT) regarding the Port of Seattle’s funding participation and key conditions of importance to the Port. A negotiated agreement will be brought to the Commission for approval.