Streetcar gets OK by council committee

Seattle City Council members voted yesterday to push forward a proposed South Lake Union streetcar line, telling Mayor Greg Nickels to proceed on everything from buying streetcars to setting up a special taxing district to help pay for the $47.5 million project.

After imposing several restrictions, a majority of the nine-member council endorsed the streetcar in a 5-2 Transportation Committee vote, saying the project would spur a makeover of the South Lake Union neighborhood, where Paul Allen's development company has amassed 60 acres in hopes of building a biotech center and thousands of new condos and apartments.

Committee Chairman Richard Conlin said the council members ensured that the streetcar wouldn't siphon money from "other transportation projects, public safety, human services or any other city programs."

But the city's general fund — which pays for basic services such as police and parks — could be tapped for the streetcar. That's because the city owns property likely to fall within a local taxing district and would be assessed at least $500,000 for benefits that property would receive from the new streetcar.

Another $5.4 million of the general fund could be used for the streetcar — money from the 2001 sale of city property to Allen's company, specifically earmarked for South Lake Union transportation needs.

Councilmen Nick Licata and Peter Steinbrueck voted against the legislation. They argued that it could deprive other neighborhoods of transportation improvements. They also said private-property owners should pay more than the $25 million they've offered to help build the streetcar.

"I'm not happy about the risks to the city and the prioritization of the streetcar above all else," Steinbrueck said.

The streetcar legislation, scheduled for a full council vote June 27, authorizes the mayor to:

• Prepare a plan to tax property owners near the streetcar for $25 million plus the administrative costs of creating a so-called local improvement district.

• Begin negotiating the purchase of three streetcars.

• Craft a deal for King County Metro to operate the streetcar.

• Seek sponsors for streetcars and stations.

• Solicit bids to develop space for housing above a proposed maintenance barn.

Acknowledging some risks, the council built in several safeguards for taxpayers. The council still must approve the purchase of streetcars, final assessments to private-property owners and the operating deal with Metro.

The council also left open the possibility that private-property owners could be asked to pay more in the event of cost overruns.

Under the mayor's proposal, Metro would convert about 20 percent of the new bus service it expects to deliver to the city in 2009 to pay for operating the streetcar.

The council yesterday said no more bus service than that could be converted in the future.

The only thing that could stop the streetcar now is if South Lake Union property owners balk at paying $25 million-plus for the project, said Michael Mann, the mayor's streetcar adviser. But that's unlikely, Mann added. Many private-property owners have publicly committed to paying $25 million.

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