Port Postpones Rail Corridor Transaction

Continuing bond market difficulties cause delay

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

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

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

“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.

In November 2007, the Port of Seattle announced final plans to acquire the 42-mile rail corridor between Snohomish and Renton. 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.