Paying for the Project

Seattle funds make up over 50 percent of the cost of the Mercer Corridor project, $99.6 million. These funds are included in the City’s adopted Capital Improvement Program (CIP). A portion of these funds will come from Seattle’s public utilities. Most of Seattle’s funds will come from municipal bonds and will be repaid using proceeds of the city’s commercial parking tax which was implemented as part of the Bridging the Gap transportation funding package, approved by City Council and Seattle’s voters in 2006. Parking tax revenues have been steadily growing, despite the economic downturn, and are a very stable source of revenue.

Private parties have committed to significant contributions in funding the Mercer Corridor project. These contributions include direct cash contributions of $16.2 million, contributions of temporary construction easements valued at $8.8 million, and environmental mitigation fees totaling $6.4 million.

Mercer Corridor Project Budget (by phase)

Seattle has secured $9.5 million in regional competitive Surface Transportation Program funds from the Puget Sound Regional Council. The Mercer Corridor project was the highest ranked road improvement project in the Puget Sound region in PSRC’s 2009 STP/CMAQ competition.

Seattle applied for a $50 million TIGER federal grant request September 2009. This funding represents the final piece of the puzzle in moving the Mercer Corridor project to completion. All TIGER funds will be used on the construction phase of the project. Funds will be obligated within 30 days of award, and bidding will commence immediately following obligation.