Continuing bond market difficulties cause delay

Port of Seattle CEO Tay Yoshitani announced March 23 the Port will postpone acquisition of the BNSF Eastside Rail Corridor due to continued difficulties in the nation’s bond markets.

Offered for sale by BNSF in early 2004, The Port of Seattle announced final plans to acquire the Renton to Snohomish 42-mile corridor – several miles of which pass through Kirkland residential neighborhoods – in November 2007.

The sale was originally expected to close in December 2008, but the transaction was postponed after the collapse of the credit markets.

The Port intends to issue municipal bonds to finance the $107 million purchase price.

“The Port remains committed to public ownership for the corridor. But no one could have foreseen the continued turmoil in the credit markets,” Yoshitani said. “The Port appreciates the railroad’s cooperation and support for our efforts to preserve the corridor for the public’s benefit.”

A further reason for delay is that the federal Surface Transportation Board has yet to complete its review of the acquisition. The sale cannot close before the STB issues its approval.

King County will contribute $2 million for an easement to develop a trail along the property. 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.