The financial crisis enveloping the country is now blamed for delaying the public purchase of a commercial rail line that runs through Bellevue. Port of Seattle CEO Tay Yoshitani announced last week that the Port will not finalize acquisition of the the 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,” Yoshitani said. “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 – in 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 would raise $50 million as an initial investment for a potential light-rail line.

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

Kendall Watson can be reached at kwatson@kirklandreporter.com or 425.822.9166 ext 5052.