Port, BNSF to Close Rail Corridor Deal in Early 2009

Credit market difficulties lead to delay

Port of Seattle CEO Tay Yoshitani announced today that the Port will not finalize acquisition of the BNSF Eastside Rail Corridor until the first quarter of 2009. The two agencies agreed to the delay because of ongoing difficulties 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.”

The Port of Seattle announced final plans to acquire the 42-mile corridor in November 2007. Currently, the transaction is before the Surface Transportation Board, which must approve the transaction. 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.

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