City money could fuel South Lake Union streetcar proposal

By Bob Young
Seattle Times staff reporter

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Two weeks ago, a council majority had shown support for banning city spending on the $45 million streetcar. But after lobbying by streetcar advocates, including Mayor Greg Nickels, the council changed direction in yesterday's Transportation Committee meeting.

Rookie Councilwoman Jean Godden and Council President Jan Drago led the way in a 4-3 vote that opened the door for using city money on the streetcar.

"We just gave them an opportunity to come back with a menu of new ideas instead of closing that opportunity out. Let's give them a chance, for God's sake," said Drago, who has helped the streetcar campaign raise money.

The full council is scheduled to vote Monday on legislation that would release $2.4 million in state and federal funds for design and engineering of the streetcar.

Drago and Godden were joined by freshmen David Della and Tom Rasmussen in the vote.

Nick Licata, Peter Steinbrueck and Transportation Committee Chairman Richard Conlin opposed the idea, saying it cleared the way for spending scarce general-fund money on the streetcar.

The city's general fund is a pot of money — from sources such as property taxes — used for police, fire, library and other basic services. The city's general fund is expected to fall about $25 million short next year of the amount needed to maintain current service levels.

The city also has a $500 million backlog in needed repairs to streets, bridges and sidewalks.

Conlin said most of the conditions he wanted to impose on the streetcar remained in place after yesterday's vote.

"They [streetcar supporters] came in wanting a blank check, and we really protected a lot of stuff and we're way better off than we were three weeks ago," he said.
 
For example, council members unanimously agreed that general-fund money cannot be spent on building the streetcar. It could be used only to operate the 1.3-mile line. They also approved a study of the benefits that property owners would get from a streetcar.

Paul Allen's development company, Vulcan Inc., is the largest property owner in the South Lake Union area, controlling about 60 acres. The Seattle Times Corp., which also owns property in the area, has said it is in favor of the streetcar proposal.

As it stands, many private-property owners have committed to spending a total of $25 million to build the line. The city has secured or applied for $17.5 million more in state and federal grants. That leaves a $2.5 million gap in the proposed construction cost. In addition, the streetcar is projected to cost at least $1.4 million a year to operate.

Licata predicted that the kind of city spending that might be allowed for the streetcar would be an issue. The committee adopted language allowing the city to consider "new sources" of money for the project. But how "new sources" would be defined remains to be seen.

Conlin said he thought it likely would mean developer fees or parking-meter revenues.

But it could also be stretched to include new tax revenue from new development in the area — money that traditionally would flow to the general fund.

"The battle will be over new revenue and whether it's part of the general fund," Licata said.

John Fox, an affordable-housing activist, was irate at the council's action.

"It's extremely disappointing to me how they [new council members] caved. It's business as usual here," said Fox, the only streetcar critic in the council chambers yesterday amid a crowd of advocates, lobbyists and staff from the mayor's office.

Rasmussen said the vote sent Nickels a message that the council wanted to give him some flexibility but would look skeptically at proposals that call for general-fund spending.

But Steinbrueck said he was concerned the streetcar would become a runaway train.

"What worries me is if the streetcar gets 80 or 90 percent of the money it needs [from non-city sources] and then the mayor says, 'We've got a green light if you just help us out.' The pressure will be intense on some of us. I have strong misgivings about that," Steinbrueck said.

Bob Young: 206-464-2174 or byoung@seattletimes.com