BNSF rail deal delayed until early 2009

The financial crisis enveloping the country is now blamed for delaying the public purchase of a commercial rail line that runs through Kirkland. Port of Seattle CEO Tay Yoshitani announced today that the Port will not finalize acquisition of the a 42-mile rail corridor, owned by Burlington Northern Santa Fe Corporation (BNSF), until the first quarter of 2009. They agreed to the delay because of a credit freeze in the nation's municipal bond markets. The Port intends to sell municipal bonds to finance the $107 million acquisition.

“Many local governments across the nation are delaying or postponing projects because they can't sell the bonds to finance them right now,” said Yoshitani. “The Port remains committed to placing the corridor into public ownership. BNSF understands the situation and agreed to this short delay. We look forward to finalizing the deal next year.”

Offered for sale by BNSF in early 2004, The Port of Seattle announced final plans to acquire the Renton to Snohomish 42-mile corridor – including a spur to Redmond – November 2007. Once the deal is final, the Port will host a public process to determine how the corridor will be used for both transportation and recreation in the future.

Both freight operations and public transportation uses are being considered, including $2 million already dedicated from King County. The contribution will go toward an easement for a trail along portions of the rail corridor, while Sound Transit's Proposition 1 – if it passes on Nov. 4 – would raise $50 million as an initial investment for a potential light-rail line.

In terms of freight use, the announcement could also stall a Sept. 25 deal with the Port and a partnership between Ballard Terminal Railroad manager Byron Cole and GNP Railway owner Tom Payne. The Port is negotiating with them to operate freight rail services contract on the line which runs between Snohomish and Woodinville. No contract or will be signed or transit development invested until the Port purchases the line from BNSF.

For more information about the Port's plans, visit their Web site at http://www.portseattle.org/business/realestate/eastsiderail.shtml.

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