AGREEMENT IN PRINCIPLE

BETWEEN

CITY OF SEATTLE AND PORT OF SEATTLE

This Agreement in Principle is executed this ____ day of May2005 between the City of Seattle (the “City”) and the Port of Seattle (the “Port”).

WHEREAS, the City and the Port recognize the importance of working together to support the replacement of the Alaskan Way Viaduct – a critical transportation corridor of local, regional, state and national significance carrying more than 100,000 cars, trucks and buses daily; and

WHEREAS, the Alaskan Way Viaduct and adjoining seawall suffered damage during the 2001 Nisqually earthquake; and

WHEREAS, the 51-year old Alaskan Way Viaduct and 70-year old adjoining seawall are at risk of catastrophic failure, because they are deteriorating structures lacking the structural strength and integrity to withstand another large earthquake; and

WHEREAS, the Federal Highway Administration, Washington State Department of Transportation and City of Seattle’s Department of Transportation after three years of environmental and engineering review have selected the tunnel alternative as the preferred option for replacing the existing Alaskan Way Viaduct and adjoining seawall; and

WHEREAS, the tunnel alternative has significant economic benefits to the public by opening up the waterfront and drawing more recreational and business visitors –currently estimated at 20-30 million visitors a year. It will also enhance private property values and Port investments on the waterfront while maintaining existing transportation capacity; and

WHEREAS, the Alaskan Way Viaduct is a critical transportation link in our region serving as a major commuter route; freight corridor; a north-south highway through downtown Seattle; and a tie between city neighborhoods and downtown; and

WHEREAS, the Alaskan Way Viaduct is crucial to the region’s freight mobility because it provides for 1.5 million freight trips annually by grade separation of through-traffic, rail lines, and industrial corridors near the Port’s marine terminals which facilitates movement of $23 billion in international cargo through the Port of Seattle each year; and

WHEREAS, the Port’s international trade activities are vital to the economic growth of the region and the state, and the City and the Port support infrastructure improvements necessary to meet the forecasted growth in trade volumes and jobs; and the City has made a commitment to support maritime industrial jobs; and

WHEREAS, the City and the Port have a mutual interest in long-term freight mobility enhancements such as a comprehensive package of access improvements for the South Downtown/Duwamish area, the East Marginal Way Grade Separation, and transportation operational improvements;and

WHEREAS, the City and the Port have a mutual interest in providing adequate mitigation during the construction phase, including implementing an effective traffic mitigation plan featuring street system improvements, such as the Spokane Street Viaduct widening and ramp improvements, increased transit service; and

WHEREAS, the Alaskan Way Viaduct (SR 99) is a state highway and the State recognized that responsibility by approving $2 billion for the project in the 2005 legislative session; and

WHEREAS, the Alaskan Way Viaduct (SR 99) is designated as a part of the National Highway System, which carries a federal funding responsibility; and

WHEREAS, securing funds to replace the Alaskan Way Viaduct has support from a broad coalition of business, labor, environmentalorganizations, and government entities which have identified funding for the Alaskan Way Viaduct as a top priority in a regional transportation package; and

WHEREAS, the City and the Port are committed to act as soon as possible, because delay poses an unacceptable risk to lives and property; exposes the region to congestion costs estimated at $190million annually in the event of viaduct closure or failure; has potential impact of the economic cost of lost business opportunities; and increases the cost of the project by $125 million each year the project is delayed.

NOW, THEREFORE, the City and the Port agree as follows:

  1. The City and Port shall work together and jointly advocate for securing the necessary funds to replace the Alaskan Way Viaduct and the adjoining seawall. The City and Port will work to secure the following funds:
  • $500 million from local sources;
  • at least $1 billion from regional sources;
  • $2 billion from the state government; and

substantial contributionubstantial contribution from the federal government through a variety of federal funding sources.s from the federal government in both the TEA-21 reauthorization bill and the next federal reauthorization bill.

  1. The City and Port shall each contribute financially towards the $500 million in local funding for the Alaskan Way Viaduct tunnel alternative and adjoining seawall.

Dated this ___ day of May 2005.

CITY OF SEATTLEPORT OF SEATTLE

By: ______By: ______

Mayor Greg Nickels Paige Miller, Commission President