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Pasco authorizes $3.5 million low‑interest loan/grant for Lewis Street underpass demolition
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Summary
The City of Pasco approved Resolution 4709 to accept a $3.5 million low‑interest loan/grant from the state Public Works Board to demolish the Lewis Street underpass; staff said roughly half is forgivable and the other half is a 20‑year loan at 1.06% with estimated annual debt service of about $100,000 to be repaid from the REIT fund.
The Pasco City Council on March 2 unanimously approved Resolution 4709 authorizing the city manager to execute a $3.5 million low‑interest loan/grant agreement from the state Public Works Board to pay for demolition of the Lewis Street underpass.
Public Works Director Sarah told the council the city must remove the top six feet of the underpass to satisfy an earlier easement agreement with BNSF Railway. Because the demolition was not included in the original overpass construction contract, the city is delivering the work as a companion project that requires close coordination with BNSF and careful sequencing around rail operations.
Sarah said the award is a mix of loan and forgivable principal: roughly half of the $3.5 million will be a loan (about $1.75 million) amortized over 20 years at about 1.06% interest; the remaining half will be forgivable principal. Staff estimated the city’s repayment obligation for the loan portion will be on the order of $100,000 per year and identified the REIT fund as the source for repayment.
Sarah outlined a complex work plan requiring three demolition segments and coordination with BNSF to remove and reinstall rail trucks in short windows so contractor work can proceed. She said some details — BNSF’s precise cost contributions and the exact schedule — remain to be finalized.
Council asked about public communications, construction timing (staff said late summer was a target subject to BNSF constraints), and the risk of change orders tied to rail‑coordination work. Council then moved and approved the resolution.
The resolution gives staff authority to proceed with the funding agreement and begin design and procurement steps; staff said additional coordination with BNSF will follow and the city will return with more detailed scheduling and communications plans.
