Point Ruston Update

I'm working my way through the recording of the meeting last Monday. Here are the details of the study session update on the Point Ruston project and the proposed LID improvements.


Mayor Hopkins introduced Point Ruston, but had Council Member Hedrick give background on HB 2285 to assure folks that the town has not entered into any agreements yet. Hedrick confirmed the hearing was that last Friday, where representatives from Tacoma and Ruston testified. The committee approved the bill and sent it the house rules committee. The cut off is Friday after next to move to the house floor. If approved there, the bill would go to Senate for same process. Albertson was upset he had not been informed of the bill and given the chance to testify. He asked that council members be informed of any future similar issues.

JJ McCamment then gave a presentation (outlined in slides here). Their research found it is difficult for Ruston to sell bonds – $10 to 12 million in bonds is a challenge for our size. There was concern about Ruston’s liability as well. Pt. Ruston hired several experts, who looked at 3 options; 1) traditional LID, 2) private financing, or 3) private/public partnership (final choice). Remediation of the roadbeds will be done before bonds are sold, eliminating environmental liability. Only when improvements are done will the municipalities sell bonds and LID issued (private financing until then). While only a very remote potential, but if LID fails, only Tacoma would have to repay bonds.

Tacoma will consider the inter-local development agreement on Tuesday. HB 2285 would allow any two jurisdictions that want to work cooperatively to create a single LID rather than two in each municipality. The schedule was outlined, including the Baltimore Street improvements that will be built as the project progresses. The reconnection of Baltimore is currently slated for 2011.
Point Ruston has three requests of the council: 1) support of HB 2285, 2) council approval of a single LID and 3) the vacation of right’s of ways along with acquiring the new street with improvements. Council members asked several questions to ensure the LID financing, environmental and construction standards would be adequate and inspected during the work.

Lyle Hardin was concerned about having Ruston Way closed in the summer and its impact on Ruston’s businesses, and the impact of water and local springs on the road quality on Baltimore Street. Terry Knapp clarified how Ruston Way would be phased. Jim Wingard was supportive even though there would be some short-term impacts. Beth Torbet wanted to know how to support HB 2285 and expressed support of the improvements even though there would likely be a huge impact on her business.

The study session adjoined just before the regular meeting was scheduled to begin.

I found these two slides especially interesting. In addition to the property tax, construction and sales taxes (even during construction) will be significant: $95 million in one-time gross tax receipts to Ruston, $44 million on-going; construction and sales tax of $5.6 million and annual revenues of $24,000 in utility taxes on new the infrastructure in the project. ~ Karen