1. Regional Transportation Investments: Alaskan Way Viaduct / Seawall Port of Seattle Commission Meeting March 28, 2006 Item No. xx Supp. Meeting

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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  Support complementary system upgrades  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 (May 2004)

8. 8 Feb 01Nisqually Earthquake Fall 01Commission established Port viaduct/seawall project goals and Port staff submitted environmental scoping comments Jun 02Commission developed input to Leadership Group: regional issues and alignment details Oct 03Commission viaduct/seawall review and update May 04Commission comments on Draft Environmental Impact Statement Sep 04Commission investment discussion: affirmed project’s importance to Port and directed staff to work on funding sources Fall 05Commission Plan of Finance discussion included modeling Port participation at $200 million over 10 years Port Project 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 Funding plan  Full project cost estimated at $3.7-4.5 billion  Core Tunnel project cost estimated at $3.0-3.6 billion ---------------------------------------------------------- Committed  State Legislature has identified:  $2 billion from 2005 gas tax package  $177 million from 2003 nickel package  Federal allocations of $239.5 million  City committed $15.8 million to date  City anticipates $550 million additional  Port investment consideration  City, Port and State will jointly pursue other funding sources

11. 11 Viaduct/Seawall Current funding plan  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  $239.5 million Federal authorizations  Anticipated Funds($ 750 million)  $300 million City General Fund & Utilities Relocation  $250 million City of Seattle Transportation Revenues  $200 million Port of Seattle

12. 12 Port share subject to: 1. Demonstrate Port benefit commensurate with participation 2. May take form of ROW, LID credit or cash 3. Credit if LID 4. Pay as reimbursement 5. If Port funds not needed, not used 6. Proportionality of Port payment to others’ 7. Port approves design, traffic mitigation, proposed project phasing at several milestones

13. 13 Proposed next step Port Commission directs CEO to negotiate a Memorandum of Understanding (MOU) with the City of Seattle and WSDOT regarding Port funding contributions toward the replacement of the Alaskan Way Viaduct, based on terms outlined above.