Road projects
Build tunnels for Esther and Grant streets through the BNSF Railway berm.
Realign Jefferson Street to the southeast so it parallels the berm.
Improve Sixth Street and connect it to a realigned Jefferson Street.
Build T intersections at Jefferson and Eighth streets and at Esther and Grant streets.
Close at-grade rail crossings at Jefferson and Eighth streets.
STEVEN LANE/The Columbian
Boise Cascade's former industrial site has tremendous redevelopment potential, but it is cut off from the rest of downtown by a railroad berm and trestle. Several road projects are needed to provide adequate access to the area.
Putting money down on the waterfront
Saturday, December 29, 2007
BY JEFFREY MIZE, Columbian staff writer
2008 likely will be pivotal for the Boise Cascade project, the year the city of Vancouver must come up with road dollars to support its waterfront vision.
The former industrial site along the Columbia River south of downtown could be a redevelopment bonanza.
Mid-range projections depict a bustling waterfront community packed with 2,300 residences, 814,000 square feet of office space, 299,000 square feet of hotel space and 193,000 square feet of retail space.
All of which comes at a price to the city: $9.5 million for the city's share of road improvements opening up the waterfront area and maybe a portion of an additional $13.8 million funding gap.
An initial round of road and rail improvements is expected to cost $38 million. A variety of sources will be used to pay the bill, including city, developer and BNSF Railway contributions.
Then there's an additional $24 million needed to improve Jefferson Street and Kauffman Avenue between Eighth Street and Mill Plain Boulevard and to extend the popular waterfront trail west past the Interstate 5 Bridge through the Boise site.
All those figures are little more than educated guesses and could fluctuate by millions. Firmer estimates should be available next spring, at which time the city wants to nail down a strategy for plugging the $13.8 million funding hole.
It's a challenge that city officials believe they must meet. Mayor Royce Pollard said the Boise project, upon completion, could total a $1.5 billion private investment in Vancouver's future.
"I think we have to figure out how to make it work," he said. "There aren't many pieces of the river like this one left around, and we have the key."
Councilman Tim Leavitt agreed the promise of waterfront redevelopment is too great to let slip by.
"There is no other piece of waterfront property that I'm aware, and certainly not in the city of Vancouver, that has more value to the community, he said.
Lingering problem
The need to craft a waterf ront funding plan likely will reignite the debate over city finances and how to address a chronic shortage of transportation dollars, a problem that has flummoxed city officials for much of this decade.
A number of proposals have been floated, including doubling the city's water and sewer tax and reinstating a local business and occupation tax, but none of those ideas received city council approval.
The council added two-tenths of 1 percent to the local sales tax in August 2005 to raise money for roads. One year later, the council decided it had more pressing needs in police and fire and redirected that money to public safety.
In November 2006, the council approved a $50 per employee surcharge on local businesses, capped at $20,000 per company. That was projected to raise $2.4 million a year, but actual receipts for 2007 have been only $1.9 million, almost 20 percent below projections.
All of which leaves Vancouver facing an expensive bill to support waterfront redevelopment without a clear idea how to pay for it.
$3 million budgeted
So far, Vancouver has budgeted only $3 million to pay for design of the needed transportation improvements, not the $9.5 million the city tentatively agreed to contribute toward construction or an unspecified piece of the $13.8 million funding gap.
Gramor Development, the Tualatin, Ore.-based company that has pieced together a consortium of investors to purchase the Boise property and redevelop the site, is expected to contribute $8 million.
The city is looking at a variety of options, including seeking more money from BNSF Railway, lobbying for state or federal appropriations and forming a local improvement district, which could mean higher property taxes for nearby owners.
The ultimate solution likely will be cobbled together from a number of different sources. Pollard will be heading to Washington, D.C., in February to lobby for the city.
One possibility is to build the transportation improvements in phases, starting with punching Esther and Grant streets through to the waterfront as part of realigning the BNSF Railway tracks.
"Maybe our participation is spread out three to four years," Leavitt said. "I've got to believe a phased approach by the city will help to move the project forward and will be an easier pill to swallow."
Making the public case
Another part of the strategy w ill be persuading city residents that money spent near the waterfront is a prudent investment in the city's future.
The city doesn't have a large revenue stream for road projects needed to ease worsening traffic congestion in east Vancouver. At the same time, it wants to invest millions in downtown, a place with little traffic congestion, to support a posh waterfront development loaded with condos and upscale shopping for wealthy residents.
Pollard disputes any suggestion the waterfront will be an exclusive community for the rich, with little to offer the common person.
"That's not true," he said. "There will be waterfront access, shopping, restaurants for the whole community."
And Pollard said he is confident the city will be able to demonstrate a sizable return on investment through higher tax revenues generated by the project, justifying its financial participation.
"Right now, we've got nothing," the mayor said. "There's a fence. You can't go there."