Supporters of replacing the Alaskan Way Viaduct with a tunnel went after mayoral candidate Mike McGinn over spreading “disinformation.” But McGinn has been raising a question that brings no easy answers from tunnel supporters.
Who ultimately pays if there are cost overruns?
Under legislation passed by the state this year, Seattle property owners are on the hook if costs go beyond the state’s $2.8 billion portion of the project. But at the news conference tunnel supporters held Tuesday “to set the record straight,” state Sen. Jeanne Kohl-Wells repeated a common response from tunnel supporters both on and off the campaign trail.
Kohl-Wells said the provision is not legally enforceable. It was added by the House, she said, to get the political deal done.
Former Sonic and mayoral candidate James Donaldson made the same point at a mayoral debate Monday night.
However, there are uncertainties, as the PostGlobe reported, including the fact that the cost estimate is based on an early stage of engineering.
But McGinn’s question is what happens if there are overruns and the state says the city’s property owners are on the hook, but the city says in effect too bad, the provision can’t be enforced?
McGinn and Elizabeth Campbell have taken the strongest stands against the tunnel among Seattle’s mayoral hopefuls.
On Wednesday, Mayor Greg Nickels' spokesman Alex Fryer said, "We don't expect to ever get there. We will be working with the State, Gov's Office, WSDOT, Legislature to clarify this language in the next session. Currently, there is no legal mechanism for the State to charge Seattle property owners for cost overruns. The State has not legal way of doing this. The State doesn't impose prop. taxes, the State can't create an LID, etc.
"We will clarifty the language over the next session, and ensure that the State covers the costs of their tunnel project."
At a campaign press conference later Wednesday, Nickels was asked about his ability to work with the state given the criticism he's received from candidates like Drago. Nickels said relations with Olympia have improved after a stalemate over whether to build a tunnel or a new viaduct.
Nickels said the fact the tunnel deal was cut showed relations are improving.
Others said essentially that the project is protected from overruns, but should it go over budget, something would have to be worked out.
State Rep. Judy Clibborn, chairwoman of the House transportation committee, said, “I don’t know.”
The provision was “something that made some people feel good that it wasn’t going to be a blank check,” she said. “But I don’t see any way how (Seattle’s portion) is in any way going to be enforceable.”
She said maybe the state would be willing to pick up the cost overrun. Or perhaps, she said, the city would be willing to pay. It’s going to have to be worked out.
Ivar’s president Bob Donegan, a speaker at Tuesday’s news conference, noted that construction costs are going down during the recession and noted Sound Transit’s light rail project is coming in below projections.
Kohl-Wells and City Councilwoman Jan Drago, a mayoral candidate, noted that about a fourth of the budget is set aside as a contingency fund, reducing the chances that the project might go over budget.
But if the project does indeed go over budget, they said a deal would have to be worked out with lawmakers, no doubt unhappy at the city refusing to pay.
But Kohl-Wells noted that the coalition of labor and business groups was able to get the deal done this session.
Drago said the provision was pushed by House Speaker Frank Chopp. She said also there may be a change in legislators before the issue comes up.
Drago, who has been attacking Nickels for having poor relationships with state lawmakers, said she would be in a better position work out a deal with lawmakers. She was at a fundraiser Tuesday night thrown for her by Kohl-Wells and Margarita Prentice, chairwoman of the Senate’s powerful Ways and Means committee.
Nickels, though, is endorsed by a number of lawmakers as well, including state Sens. Adam Kline and Ken Jacobsen and state Rep. Ed Murray.
Charla Neuman, spokeswoman for mayoral candidate Joe Mallahan, argued that the T-Mobile executive was best equipped to keep the project on budget. She said Mallahan believes that now that the deal was made, his focus will be to make sure it is done properly. But, she said, Mallahan believes the provision is an “irresponsible” one that he wouldn’t have backed.
McGinn meanwhile referred to the fact that while commitments have been made, the city and other entities haven't actually appropriated money for the project. He also pointed to the 2007 advisory vote in which 70 percent of voters opposed the tunnel option.
He said, "The tunnel proponents have not identified the financing for the $4.2 billion dollar tunnel and have no plan for cost overruns -- which are almost inevitable on a megaproject like this. And if neither the state nor city wants to pay cost overruns why are they proposing to build it? Our elected leaders are living in a fantasy land if they think that the public, which opposed this tunnel by a vote of 70%, is prepared to mortgage this city to the viaduct tunnel."
