City secures $99.6 million TIFIA loan

  • Wednesday, June 14, 2017 10:46am
  • News

The city of Bellevue has secured a $99.6 million federal loan for major transportation efforts.

The city secured the loan on June 9 under the Transportation Infrastructure Finance and Innovation Act (TIFIA) after a year-long process in applying for the loan.

The TIFIA loan, administered by the U.S. Department of Transportation’s Build America Bureau, will aid the construction of an additional five mobility projects to support projected growth in the BelRed, Downtown and Wilburton areas. This fiscal action supports the City Council’s two-year vision priorities regarding transportation plans.

The TIFIA loan will assist in the creation of a comprehensive BelRed street network, which will provide nearly 10 new lane miles of roadway, 25,000 linear feet of sidewalk, 21,000 linear feet of bike lanes, more than 5.5 acres of water quality treatment facilities and approximately 90 new or upgraded curb ramps and approximately 90 other pedestrian access improvements that are compliant with the Americans with Disabilities Act.

“Securing this TIFIA loan really ramps up our efforts to transform the BelRed area into a connected hub that’s both an economic engine and a residential neighborhood,” said Mayor John Stokes. “I want to thank my fellow councilmembers for their financial savvy and vision for the future, and thank city staff for their work in helping to secure the loan.”

The development of the street network will coincide with Sound Transit’s East Link light rail construction, helping to improve mobility in Bellevue and take advantage of construction efficiencies. By linking these two major infrastructure build-outs, the city and the region will benefit from a robust transportation network that facilitates further private sector investment in the BelRed area. The transportation improvements will enhance the overall redevelopment plan, which includes open space upgrades, new trails, neighborhood parks, water quality improvements and other public infrastructure.

Each councilmember played a critical role in positioning the city to pursue a TIFIA loan, recognizing the advantages of this innovative loan and taking action to make it possible. The council adopted budget adjustments to fund phases of the projects in conjunction with the anticipated loan in June 2016; budgeted funds to pay the administrative costs of obtaining the loan in October 2016; and formally adopted a bond ordinance that authorized the loan in February.

The low-interest loan – at 2.86 percent – provides more favorable terms than traditional bonds. Bellevue will draw down loan disbursements as needed to pay costs of the project, but the city can wait until 2024 to begin paying principal of or interest on the loan. The loan will then be repaid over a 35-year period following substantial completion of the road projects, but no later than 2056. Bellevue is securing the loan through the issuance of a limited tax general obligation bond.

The loan will finance approximately one-third of the projects’ costs, and the city will fund the rest. Bellevue’s matching share of the funding is already included in the city’s Capital Investment Program budget.

The FAST Act – Fixing America’s Surface Transportation Act – continued the TIFIA program and required the development of an expedited application process for secured loans such as the one acquired by Bellevue. For more information about the TIFIA program, visit the U.S. Department of Transportation website.

More in News

Matt Marshall, leader of the Washington Three Percenters gun rights group, addresses a crowd rallying for Second Amendment rights Jan. 17 at the state Capitol in Olympia. Marshall condemned Republican leadership in the House of Representatives, which expelled Rep. Matt Shea from the Republican Caucus. Marshall announced his candidacy for the 2nd District seat held by House Minority Leader J.T. Wilcox. Photo by Cameron Sheppard, WNPA News Service
Gun rights advocates rally at Capitol

Criticism levied at Matt Shea investigation, Republican leadership.

Planting away on MLK Day of Service

From top to bottom: Father and son Jose and Joaquin Garcia plant… Continue reading

Washington State Attorney General Bob Ferguson (center) announced a lawsuit against Johnson & Johnson in a press conference Jan. 2. Debbie Warfield of Everett (left) lost her son to a heroin overdose in 2012. Skagit County Commissioner Lisa Janicki (right) lost her son to an overdose of OxyContin in 2017. They are joined by Rep. Lauren Davis of Shoreline (second from right), founder of the Washington Recovery Alliance. (TVW screenshot)
AG Bob Ferguson talks lawsuits, gun control

Washington state Attorney General stopped by Sound Publishing’s Kirkland office.

Sen. Mona Das, D-Kent, the primary sponsor of SB 5323, speaking on the bill. (Photo courtesy of Hannah Sabio-Howell)
Proposed law adds a fee to plastic bags at checkout

Senate passes bill to ban single-use plastic bags, place 8-cent fee on reusable plastic bags.

Development has encroached on the East Lake Sammamish Trail (at right). Joe Livarchik/file photo
King County files lawsuit to finish East Lake Sammamish Trail

Homeowners have until September to remove buildings and other property from the right of way.

File photo.
Firefighter labor union agreement in place for next three years

The council recently passed a successor labor agreement.

From left, Debra Entenman, Tana Senn, Lisa Callan, Brandi Kruse, Manka Dhingra, Patty Kurderer, Roger Goodman and My-Linh Thai at the event. Blake Peterson/staff photo
I-976, affordable housing, other issues discussed at legislative breakfast event

The gathering included a keynote speech from attorney general Bob Ferguson.

Bellevue residents Marko and Karla Ilicic play a hockey game in the Topgolf Swing Suite inside Forum Social House. Natalie DeFord/staff photo
Forum Social House opens in Bellevue

Eastside gets new nightclub, mini golf, swing suites.

Most Read