Pasco Council OKs $3.5 million loan/grant package to demolish Lewis Street underpass top

The Pasco City Council authorized the city manager to execute a $3.5 million loan/grant agreement with the Washington State Public Works Board to fund demolition of the top portion of the Lewis Street underpass, a condition of an earlier easement with BNSF Railway.

Public Works staff explained the underpass remains in place but was filled and blocked during the overpass work; a BNSF condition requires demolition of the upper 6 feet to meet easement and operational needs. The work will be coordinated with BNSF and will occur in multiple segments timed to avoid peak rail traffic (staff said much of the heavy demolition will need to happen during windows when rail cars are removed).

Funding secured from the Public Works Board was described as a 50/50 mix: roughly $1.75 million as a low‑interest loan (20 years at approximately 1.6%) and $1.75 million forgivable (grant). Staff estimated the annual repayment obligation on the loan portion at about $100,000 and identified the streets fund as the source for repayment. The council approved Resolution No. 4709 authorizing the loan/grant agreement.

Council members asked for a clear communications plan before work begins; staff said they will provide a timeline and public outreach once BNSF confirms sequencing and cost details. The director noted the project is complex because segments of rail service will need to be removed and reinstalled; BNSF coordination and approvals remain a key schedule dependency.

The motion to approve the resolution passed by voice vote.