The City Council gave the green light for the South Lake Union streetcar authorizing the funding plan to pay for capital costs and operations and maintenance expenses. South Lake Union has recently been designated an urban center and is targeted to receive 8,000 new residential units and 16,000 new jobs over the next 15 years. “We believe that the South Lake Union Streetcar will provide that neighborhood with a necessary link to downtown Seattle and to other public transportation connecting links,” said Council President Jan Drago. “The South Lake Union Streetcar has the exciting possibility of running through downtown and connecting with the Waterfront streetcar line, which could be the hub of a real streetcar network in the city,” says Councilmember Richard Conlin, Chair of the Transportation Committee. Council previously set stringent requirements for the proposal ensuring construction and operations costs would not take funds from other City priorities. Today, a Council majority felt those standards were met. Over 53% of the capital costs are covered by funds from property owners in the South Lake Union neighborhood and the rest by other non-City funding sources. The next phase of the project, before construction can begin, is to form a Local Improvement District (LID). Private sponsorship funds, Metro bus fare revenues and other ridership related revenues will pay for the first two years of the streetcar’s operations and maintenance costs. King County Metro will fund 75% of the SLU streetcar’s operations and maintenance beyond the first two years after the LINK light rail or the Seattle Monorail, still under negotiations, are in operation. “I believe there are sufficient safeguards built in for potential funding shortfalls and that the legislation for this project minimizes the City’s financial risks,” says Conlin. Councilmember David Della introduced an amendment that was passed and pointing to the future possibility for the South Lake Union Street car line to extend further south to connect with the Waterfront Streetcar line as well as for an extended line through the International District and Central Area conforming in an integrated transportation system. “The South Lake Union Streetcar is a great idea that needs to spread,” said David Della, “that’s why I was pleased when the Council accepted my amendment to make the streetcar a link in a broader transportation network.” The legislation provides the following safeguards:* with a few specific exceptions, the use of General Fund dollars is not allowed for this project;* the minimum LID amount must be $25 million, plus all costs related to administration, creation and formation of the LID. The Council reserves the right to increase the amount of the LID if necessary;* a contingency fund of $3.9 million is created from funds that specifically were to be used for transportation projects in the South Lake Union neighborhood; * the City must continue to look for grant funding to pay for any capital costs not paid for by other sources;* the Mayor must begin to solicit interest in development rights above the proposed SLU streetcar maintenance base as well as station and streetcar sponsorships;* identifies potential “back-up” revenue sources to pay for operations and maintenance costs if needed.
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