Port of Seattle planning record construction for 2004 (November 28, 2003)

The Port of Seattle is pushing forward with a major expansion of the Seattle-Tacoma International Airport and upgrades to cargo terminals. The port could spend a record USD $740 million on construction next year, reports the Seattle Times.

Commissioners have approved the plan as part of a 2004 budget that reflects the Port’s efforts to deal with the region’s economic downturn, struggling airlines and mounting security costs at the airport and seaport.

The Port will spend a total of about $1.1 billion next year running Sea-Tac, cargo terminals and marinas.
The commission also voted to cut the Port’s property-tax rate by 1 cent to 25 cents for every $1,000 of assessed property value, or about $50 for the owner of a $200,000 home.

The Port will collect nearly $60 million, or about $2 million more than this year, mostly because of rising property values and new construction.

Wages for all nonunion employees will be frozen in 2004, with a bonus pay program eliminated. Officials said this move was needed to hold the line on employee costs in the face of an 18 percent rise in health insurance costs.

Much of the cost of construction at Sea-Tac will be passed on to airlines, which have approved the projects. But the Port has come under increasing pressure by the airlines to rein in costs, and it has responded by postponing about $215 million in construction and cutting 66 jobs at the airport.

The Port also hopes to start substantial construction of a $1.2 billion third runway next year. In all, the Port will spend up to $617 million on airport construction in 2004. On the waterfront, the Port plans to spend about $108 million to expand and upgrade several cargo terminals.