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Council approves $500,000 amendment to state loan for SR 104/Fortieth roundabout; loan rises to $2.5 million
Summary
City staff told council the Washington State Public Works Board agreed to add $500,000 to a previously awarded $2 million loan for the SR 104 and Fortieth Place NE roundabout, raising the loan total to $2.5 million. Council unanimously adopted the amendment by resolution.
The City of Lake Forest Park council authorized the mayor to sign an amendment increasing the city’s Public Works Board loan for the SR 104 and Fortieth Place NE roundabout by $500,000, bringing the loan total to $2.5 million.
Why it matters: The additional loan funds are intended to cover higher-than-expected construction costs for the roundabout; the debt service will be paid from the Transportation Benefit District fund.
Project manager Mara Phillips told council the city applied for a $2 million loan from the State Department of Commerce Public Works Board in 2024. The city publicly advertised construction bids in June 2025 and received a low responsive bid from Johansen of roughly $5.4 million. Following the bid opening, staff requested an additional $500,000 from the Public Works Board; the board agreed and produced Amendment A to the loan agreement.
The loan’s terms remain the same: a 20-year loan at 1.71 percent interest. Phillips said the annual debt service under the original $2 million loan was approximately $118,917; with the amended $2.5 million total the annual debt service rises to about $148,646. The Transportation Benefit District fund will support the debt service.
Council waived the three-touch rule to consider the amendment at the Oct. 9 meeting and unanimously adopted Resolution 25-2031 authorizing the mayor to sign Amendment A.
Ending: Council members characterized the approval as a milestone toward construction and thanked staff for advancing acquisition and funding steps. No immediate permitting or construction date was announced in the presentation.
