Council considers city's tunnel costs

Details of how to pay the city's share of the project to replace the Alaskan Way Viaduct were presented Friday to the Seattle City Council's budget committee.

Under a deal signed earlier this year, the state agreed to pay up to $2.4 billion and collect $400 million more in tolls to replace the viaduct. The state is paying for the $1.9 billion tunnel under Seattle's waterfront.

The city is to be responsible for relocating utilities, replacing the sea wall along the central waterfront, and building a waterfront promenade, in addition to other city street improvements at Mercer and Spokane streets, which connect to Highway 99.

City officials envision a $20 car-tab tax to be enacted by the City Council in 2011.

On Monday, the council will consider a memorandum of agreement between the city and state to proceed with the viaduct replacement, outlining the city's and state's responsibilities without any dollar commitments.

The preliminary plan, put forward Friday by council staff, calls for:

• $200 million in commercial-parking taxes, which might mean a doubling of the current tax now set at 10 percent.

• $175 million in local-improvement-district money, which would pay for the new promenade and also part of a possible new First Avenue streetcar. That probably wouldn't be charged until after 2015, when the money is needed for the promenade.

• $100 million in additional vehicle-license fees through a transportation-benefit district. The option is $15 per year for 31 years, $20 a year for 18 years or $30 a year for 10 years.

• $248 million for utility relocation, which would include an increase in City Light and Seattle Public Utility rates.

The money also includes federal, state and county grants.

The report included uncertainty over whether the financing plan could weather problems such as cost overruns and revenues lower than forecast.

The report also questioned whether the state could enforce a part of the agreement that calls for "Seattle-area property owners" to pay for any cost overruns.

Susan Gilmore: 206-464-2054 or sgilmore@seattletimes.com