(The following story by Bill DiBenedetto appeared on the Seattle Business Examiner website on March 23, 2009.)
SEATTLE — The credit crunch and down bond market will continue to delay the closing of the $107-million Eastside Rail Corridor deal between the Port of Seattle and BNSF Railway.
Port of Seattle CEO Tay Yoshitani said Monday that the port will postpone its acquisition of the 42-mile BNSF Eastside Rail Corridor “due to continued difficulties in the nation’s bond markets.”
The deal was first delayed in October. The plan at that time was to finalize the acquisition during this year’s the first quarter.
The port still intends to issue municipal bonds to finance the $107 million purchase price. “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.
Another reason for delay is that the U.S. Surface Transportation Board has yet to complete its review of the acquisition. The sale cannot close before the STB issues its approval.
Under a three-way agreement with BNSF and King County, the port announced the plan to acquire the rail corridor from the Fort Worth-based railroad in November 2007. The northern segment would continue in service as a freight line and the southern portion would be developed as recreational trails in King and Snohomish Counties.