Bellevue council directs staff to pursue state approval, outline funding options for Grand Connection crossing

The Bellevue City Council on July 22 directed staff to pursue state approval to use an alternative construction delivery method for the Grand Connection crossing and to prepare funding options for the project’s next phase.

The action, approved by voice vote, lets the city submit an application this fall to the state committee that reviews alternative delivery methods and continue preparing a “funding stack” showing how the roughly $150 million–$200 million capital cost could be paid for.

The council’s decision follows a staff presentation that laid out a three‑tier funding menu: (1) tools the city controls now, such as a potential tax‑increment financing (TIF) district or use of Transportation Benefit District (TBD) revenues; (2) cash and grant sources including private philanthropy, state and federal grants and potential local improvement districts; and (3) last‑resort local revenue like banked property tax capacity or local B&O tax revenue. Chief financial officer John Risha summarized the scale: “We’re targeting a project that is, roughly speaking, a $150 to $200 million project.”

City staff stressed that tonight’s vote does not commit the council to any tax or revenue source. Staff asked only for permission to include a high‑level funding plan in the application required to pursue a General Contractor‑Construction Manager (GCCM) procurement model. Nathan Torgelson, director of the Office of the Grand Connection, said staff will return this fall with a detailed TIF analysis and with formal outreach to other taxing jurisdictions that would need to consent to participation under the special TIF authority the state gave Bellevue this year.

Members of the project’s private advocacy group, Friends of the Grand Connection, testified in support of moving the project forward and said they will continue pursuing private philanthropy and other non‑city contributions. Staff said they are also seeking competitive state and federal grants; the city has secured a $2 million congressional earmark to date for the crossing. City Manager Diane Carlson and staff emphasized that the council will see multiple decision points, financing scenarios and “off‑ramps” before any long‑term city revenue commitments are finalized.

Council members asked for clarity about sequencing, public engagement and safeguards. Several members noted the project’s role in mobility, placemaking, housing access in Wilburton and tourism; others reiterated concerns raised during public comments about using TBD revenues or TIF proceeds for a project some view primarily as placemaking rather than congestion relief.

Staff outlined next steps: complete a consultant analysis of potential TIF district boundaries and revenue capacity by late summer, initiate formal outreach to affected taxing districts, submit the GCCM application to the state in mid‑August, and return to council in the fall with detailed financing recommendations before any revenue measures or ordinances are proposed.

Council action: motion to direct staff to move forward with the state approval process and to prepare funding steps was made and approved by voice vote. No council member roll‑call vote was recorded on the public audio.

The council’s direction begins a compressed timetable to prove to the state that the city has a realistic delivery plan and funding path; it does not authorize specific taxes, fees or borrowing. Staff and the Friends group said they will continue parallel fundraising and grant efforts to reduce any potential need for new local revenue.

The Office of the Grand Connection will lead design, procurement and partnership tasks going forward, with continued briefings to the council at major decision points.