Friday, February 22, 2008

Point Ruston LID Proposal

Ruston Town Council Presentation
February 19, 2008

1. Why does Point Ruston want to form Local Improvement Districts in both Ruston and Tacoma to complete the realignment of Ruston Way, the Baltimore Street connection and a new Yacht Club Road?

Local Improvement Districts are a desirable financing tool that allows capital improvements to be paid for over a longer period of time and at a lower interest rate than is generally available for commercial construction. Being able to use a LID makes it much easier for Point Ruston to support completing the realignment of Ruston Way in both jurisdictions at one time rather than breaking it into phased construction and phased financing.

The City of Tacoma is working on the formation of a Local Improvement District to address Point Ruston street and utility improvements located within the City of Tacoma, most notably the realignment of Ruston Way.

Point Ruston is asking the Town of Ruston to consider forming a Local Improvement District to complete certain street and utility improvements to be built within Ruston’s jurisdictional boundaries.

2. What will the proposed Ruston LID project consist of?

The Ruston LID would result in (a) the realignment of Ruston Way for that portion of the arterial located within Ruston, (b) completion of the Baltimore Street connection between Ruston Way and the alley serving homes facing 49th Street, and (c) building a new street (“Yacht Club Road”) from Ruston Way to Metro Parks’ property on the peninsula.

Improvements in Ruston would include utilities, “1 ½” roundabouts on Ruston Way and bike lanes, sidewalks & landscaping on Ruston Way, Baltimore & Yacht Club Road.

The improvements in both jurisdictions total right at a mile and a half in length:

Ruston LID
Ruston Way Realignment 1,155 LF
Baltimore Street to “49th St. Alley” 1,675 LF
Yacht Club Road 1,965 LF
4,795 LF Ruston (60%)
Tacoma LID
Ruston Way Realignment 1,870 Linear Feet
Baltimore Street from “49th St Alley” to 46th St. 1,305
3,175 LF Tacoma (40%)

7,970 LF Total

3. When would the LID projects start and how long will they take to complete?

The construction of the utility and street improvements would take around 18-24+ months to complete after the formation of the LIDs and the public bidding process.

4. What is the estimated cost of the Ruston & Tacoma LIDs?

Total construction costs for improvements in both jurisdictions are estimated at approximately $12-$16 million with $7-$10 million being spent in Ruston and $5-$6 million in Tacoma. The cost to form and administer each LID would be additional expenses rolled into the separate LIDs for Ruston and Tacoma.

5. Who pays for the proposed LIDs?

Point Ruston would be responsible for the total cost of the proposed LIDs in both jurisdictions because the improvements would directly benefit Point Ruston’s property.

6. Ruston Way runs through two jurisdictions. Do adjacent jurisdictions ever coordinate LID formation and construction of improvements?

Each jurisdiction would have to form a separate Local Improvement District. However, it is not unusual for smaller jurisdictions to contract with a more experienced jurisdiction to administer an approved LID. The administrative fees incurred when contracting for LID administration are rolled into the LID financing and are repaid by the benefiting property owners -- Point Ruston in this case.

7. What is the proposed schedule for forming the requested Ruston LID?

The City of Tacoma is tentatively scheduled to form their LID summer 2008, subject to completion of the environmental review process and Council consideration. Point Ruston respectfully requests Town Council consideration and approval of the proposed Ruston LID on a similar schedule.

Contact Information:

Ralph Rodriguez, LID Administrator Hugh Spitzer, Bond Counsel
City of Tacoma Foster Pepper & Sheffelman PLLC
747 Market Street 111 Third Avenue, Suite 3400
Tacoma, WA 98402 Seattle, WA 98101-3299
253-591-5522 800-995-5902/206-447-8965

J.J. McCament, 253-219-7962,

Tacoma's LID process:

Information from the bonding company: