Council bets hopes on federal stimulus plan for Mercer Street project

The Seattle City Council is hoping to accelerate the long-delayed Mercer Street project, by releasing $30 million for design work and right-of-way purchases next year.

The move amounts to a loosening of financial oversight — the council Monday waived an earlier requirement that Mayor Greg Nickels present a detailed funding plan, or show progress on one, before the city spends more money on Mercer.

The total estimate to rebuild Mercer Street between Fairview Avenue North and Dexter Avenue North — an area notorious for traffic backups — is around $200 million, and the city remains about $88 million short.

Council members now hope Mercer will make it into an economic-stimulus package in President-elect Obama's administration.

Mercer Street is on a list of "ready-to-go" projects sent to the federal government, said Jan Drago, chair of the council-transportation committee.

Seattle City Council member Tom Rasmussen said that by voting yes, he wanted to show federal officials the project has momentum.

However, the likely stimulus plan, as envisioned by U.S. Senate Democrats, would distribute money to the states, not directly to local projects. The Washington state Department of Transportation will decide what gets funded, said Matt McAlvanah, spokesman for Murray.

Seattle's rebuild plan would convert the pothole-filled eastbound arterial into a more attractive two-way boulevard, with seven lanes, sidewalks, medians and street trees. It would complement new laboratories, offices, condos and a refurbished Lake Union Park. Nearby Valley Street would be narrowed but gain bike lanes.

A traffic study predicts the rebuild would not significantly reduce vehicle travel times overall. And one design option, to substitute on-street parking for one of the seven road lanes would make eastbound trips several minutes longer. Drivers would save time westbound from Interstate 5 to Seattle Center by taking a new straight route onto Mercer, instead of winding through Valley Street.

The $30 million infusion was approved by an 8-to-1 vote at a budget meeting Monday, with Councilman Nick Licata opposing. It follows the release in May of $14 million for design, environmental work and real estate for the Mercer project. At that time, the council set a deadline of March 2009 for the mayor to produce a funding plan or strong evidence money was available.

"Moving forward without knowing how we'll pay for a project is a bad habit in Seattle, and we shouldn't enable it," Licata said.

The city is also seeking contributions of land and money from nearby businesses, including Paul Allen's Vulcan development firm.

Councilman Richard Conlin said he's not particularly concerned about criticisms that the Mercer plan will leave drivers stuck in traffic. South Lake Union is evolving into part of downtown, so Mercer should function as a downtown street, not an I-5 ramp, he said.

"Free flow of vehicles is sort of an oxymoron there," he said. "We're making a commitment to make this a neighborhood. Neighborhoods don't have freeways running through them."

The new money cannot be spent for construction. So if the rebuild is canceled, the city would be able to resell any land it acquires, much as the defunct Seattle Monorail Project did in 2006.

Seattle recently won a local court ruling, now being appealed, that allows the city to condemn and purchase West Marine, a retailer along the route.

Conlin said the council is delivering on a promise from 2006, to deliver a Mercer rebuild as part of the "Bridging the Gap" plan.

Mike Lindblom: 206-515-5631 or mlindblom@seattletimes.com