STP Regional Projects, FFY 2016 & 2017

STP PROJECT APPLICATION July 22, 2013

Section 1: General Information Project Title Mahogany - Arctic Avenue Arterials Funding Request: $1,250,000 for PE/Design, ROW, Mitigation, and Permitting

of Mahogany Avenue (formerly Division Road)

EXHIBIT 1 - Letter of Commitment from Costco Wholesale, Inc.

Section 2: Certifications This project:

Is consistent with Whatcom Transportation Plan and is on the regional

transportation system as currently adopted, or meets criteria to be added. On May 23, 2013, TTAC voted unanimously to add Mahogany (formerly Division) to Regional Transportation Network, approved by Policy Board on July 10, 2013.

Will be obligated by the end of, or prior to, the Federal Fiscal Year the project is

proposed for, or be subject to reconsideration and possible reallocation by TTAC and the Transportation Policy Board.

Is listed on the lead agency’s current six-year TIP.

Will include a minimum total of $300,000 in construction costs with at least

$150,000 from federal funding sources.

Section 3: Description of Program or Project Bellingham has been planning two urban collector arterial street connections called Division and Dover (See Figures 1 and 2) for the past few years to support significant economic development that is currently underway (See Figure 3.) in the northwestern portion of Bellingham. The zoning decisions that allow all of the development currently being proposed in this area were made in the mid-1990's when Bellingham reconstructed West Bakerview Road. On July 15, 2013, the City annexed 262-acres immediately north of Division (See Figure 4.) Due to 9-1-1 response concerns, the Bellingham Fire Department has changed these street names for addressing purposes, as follows:

Division Street is changed to Mahogany Avenue because a Division Street already exists in the Irongate industrial area.

Dover Street is changed to Arctic Avenue because the arterial alignment will not connect to the existing residential portion of Dover Street in the vicinity.

Mahogany and Arctic Avenues will create needed multimodal arterial access to serve land that has been zoned for commercial and industrial development since West Bakerview was constructed in the mid-1990’s. These projects connect to and complement the $3.5 million improvements that Bellingham is currently constructing on the West Bakerview Overpass of Interstate 5 and will reduce traffic congestion on West Bakerview between Interstate 5 and Northwest Avenue. The Mahogany and Arctic arterial streets provide direct access to significant economic development that is currently underway in northwest Bellingham and the annexation of 262-acres of the Bellingham Urban Growth Area, which allows over 300 single family homes.

This funding request is for $1,250,000 to be used for preliminary engineering and design, acquisition of right-of-way, mitigation, and permitting of 3,200 feet (0.6-miles) of east-west Mahogany Avenue only. North-south Arctic Avenue (formerly Dover) will be fully funded and constructed by Costco Wholesale, Inc. with the development of a new 160,000 SF Costco Store at the southwest corner of Arctic and Mahogany. An additional 144,100 SF retail shopping center Bellingham has purchased 13-acres of land within the 262-acre Pacific Highway annexation area and will be constructing a regional storm water detention facility in 2014 to treat storm water runoff from Mahogany and Arctic Avenues, as well as impervious surfaces from parking lots and buildings, including the 160,000 SF Costco Store, 24 pump gas station, 3,500 SF fast-food restaurant, 144,100 SF proposed retail shopping center, and several hundred thousand addditonal square feet of development between West Bakerview Road and Mahogany Avenue. Developers will pay the City for the right to convey storm water to this regional detention facility. Bellingham has an option to purchase another 20-acres of land within the 262-acre Pacific Highway annexation area for wetland mitigation purposes, as well as the option of using the Lummi Nation regional wetland mitigation bank.

Private development - Costco Wholesale, Inc. - will fully fund preliminary engineering, design, dedication of right-of-way, mitigation planning, and environmental permitting, and construction of Arctic Avenue between Mahogany Avenue and West Bakerview Road at an estimated cost of $2,010,932 in 2014 in advance of the planned 2015 opening of the new Costco Store (See Exhibit 1 - Costco Letter of Commitment). A traffic study is underway for a 144,100 SF retail shopping center proposed immediately west of the Costco site and the City expects that this private development will contribute Transportation Impact Fees and, depending on the outcome of the TIA, contributions toward off-site mitigation, such as traffic signals at Mahogany/Pacific Highway and Mahogany/Arctic.

Bellingham will be submitting additional grant applications for construction funds for Mahogany Avenue to both the Whatcom County Economic Development Investment Board ($1,250,000) and the Washington State Transportation Improvement Board ($2,250,000) in August 2013. Bellingham will contribute $750,000 in local Transportation Impact Fees assessed from private developments in this portion of the City toward the construction of Mahogany Avenue.

Figure 1. Mahogany Avenue (formerly Division) Adopted in 2014-2019 TIP

Figure 2. Arctic Avenue (formerly Dover) Adopted in 2014-2019 TIP

Figure 3. Mahogany Avenue and Arctic Avenue arterial streets in rapidly developing northwest Bellingham will provide direct acess to a 160,000 SF Costco Store with a 24-fuel pump gas station and 3,500 SF fast-food restaurant parcel, a proposed 144,100 SF retail shopping center west of Costco, and several hundred thousand square feet of commercial retail.

Figure 4. Pacific Highway Urban Growth Area (262-acres) immediately north of the

Division Street right-of-way annexed into City of Bellingham on July 15, 2013.

Type of Facility/Mode served (check all that apply)

Transit - WTA will provide transit service as ridership demand warrants Bicycles/Pedestrians - marked bike lanes and sidewalks both sides Roadway - full standard urban collector arterial streets Freight - provides additional freight connections in northwest Bellingham

Start date or Status of each phase:

Planning: Began 2011with initial proposal to build new Costco Store at corner of Arctic and Mahogany Avenues.

PE: Consultant feasibility studies and work to secure property, design, and

construct the regional storm water detention facility for commercial and residential development, as well as the arterial streets needed to serve this development began in 2012.

Bellingham has an option to purchase another 20-acres of land within the 262-

acre Pacific Highway annexation area for wetland mitigation purposes, as well as the option of using the Lummi Nation regional wetland mitigation bank.

Mahogany Avenue arterial PE/Design to begin as soon as STP funding is available with completion anticipated by mid-2015.

PE/Design, ROW dedication, and construction of Arctic Avenue arterial between

West Bakerview Road and Mahogany Avenue to be completed by late-2014 by Costco Wholesale, Inc. in anticipation of 2015 opening of new Costco Store.

R/W: 21,000 SF of right-of-way acquisition for Mahogany Avenue near Northwest Road to begin as soon as STP funding is available with completion anticipated by mid-2015.

Arctic Avenue ROW is completely on Costco property and will be dedicated to City of Bellingham by end of 2014.

CN: The City of Bellingham will construct Mahogany Avenue in mid-2015, if construction funding is secured from both TIB and EDI, with completion by autumn 2015. Arctic Avenue will be fully funded and constructed by Costco in mid-2014 as soon as environmental permits are secured.

Other: West Bakerview Overpass improvements, including dual-left turns and drop-right turn at Arctic/West Bakerview and freight truck turning improvments at Pacific Highway/West Bakerview fully funded and constructed by City in 2013.

Section 3: Financial Summary for Mahogany-Arctic Arterials Lead Agency: City of Bellingham - Mahogany Avenue

Fund Source

Phase: PE Phase: ROW Phase: CN Total

STP Regional $850,000 $400,000 $1,250,000 Federal Funds State (TIB) $2,250,000 $2,250,0001

Local Funds $500,000 $500,000 Private (TIF) $750,000 $750,000 Other: EDI. $1,250,000 $1,250,0002

Sub Total $1,350,000 $400,000 $4,250,000 $6,000,000

1State TIB application submitted August 2013; TIB funding decision November 2013 2County Economic Development Investment application submitted August 2013 Participating Partner: Costco Wholsale, Inc. - Arctic Avenue_______

Fund Source

Phase: PE Phase: ROW Phase: CN Total

STP Regional Federal Funds Local Funds Private Funds Fully funded & constructed by Costco $2,010,932 $2,010,932 Other: __ . Sub Total $2,010,932 $2,010,932

Combined Total Program/ Project Costs

$1,350,000

$400,000

$3,800,000

$8,010,932

Anticipated Completion Arctic Avenue (Costco) 1/1/2014 3/1/2014 6/1/2014 10/1/2014 Mahogany Ave (City) 5/1/2015 5/1/2015 6/1/2015 10/1/2015 Modal Split % of Requested STP Regional Funds Automobile 83% Transit 5% Bicycle/Pedestrian 10% Freight Truck 2% Total 100%

Figure 5 - City of Bellingham Engineer's Cost Estimate for Mahogany Avenue

Figure 5 - Costco Private Contractor Engineer's Cost Estimate for Arctic Avenue (Continued on 2 pages Below)

Section 5: Evaluation Criteria - Mahogany Avenue

1. The project has greater than required match. Points: One point awarded for every 2% of match above 13.5%. Weight: Maximum 5 points

The $500,000 in local Street Funds from Bellingham represents 28.5% of the

total cost for preliminary engineering, design, right-of-way acquisition, mitigation planning, and environmental permitting for Mahogany Avenue.

Bellingham has also purchased 13 acres of land within the 262-acre Pacific Highway annexation area and will be constructing a regional storm water detention facility in 2014 to treat storm water runoff from Mahogany and Arctic Avenues, as well as impervious surfaces from parking lots and buildings, including the 160,000 SF Costco Store, gas station, and several hundred thousand addditonal square feet of development that land use regulations allow between West Bakerview Road and Mahogany Avenue. Developers will pay the City for the right to convey storm water to this regional detention facility. Bellingham has an option to purchase another 20-acres of land within the 262-acre Pacific Highway annexation area for wetland mitigation purposes, as well as the option of using the Lummi Nation regional wetland mitigation bank. Private development - Costco Wholesale, Inc. - will fully fund preliminary engineering, design, dedication of right-of-way, mitigation planning, and environmental permitting, and construction of Arctic Avenue between Mahogany Avenue and West Bakerview Road at an estimated cost of $2,010,932 (See Exhibit 1 - Costco Letter of Commitment). Bellingham will be submitting grant applications for construction funds for Mahogany Avenue to both the Whatcom County Economic Development Investment Board ($1,250,000) and the Washington State Transportation Improvement Board ($2,250,000) in August 2013. Bellingham will contribute $750,000 in local Transportation Impact Fees assessed from private developments in this portion of the City toward the construction of Mahogany Avenue.

2. Preliminary work such as engineering, design, environmental or right of way acquisition has been completed. Weight: Maximum 5 points

This STP funding request for $1,250,000 is for preliminary engineering, design,

right-of-way acquisition, mitigation, and environmental permitting for Mahogany Avenue only. Bellingham will complete engineering, design, right-of-way acquisition, and environmental permitting for Mahogany Avenue as soon as STP funding is available with construction anticipated in mid-2015, if TIB and EDI grant funding is awarded.

Bellingham has already purchased 13-acres just north of Mahogany Avenue for

a regional storm water detention facility and is in the process of acquiring an additional 20-acres for wetland mitigation needs.

Costco Wholesale, Inc. is in the process of completing engineering, design, and environmental permitting for Arctic Avenue and, in 2014, will construct Arctic Avenue as a collector arterial between West Bakerview and Mahogany Avenue to provide primary access to a new 160,000 SF Costco Store and a 24-pump gas station.

It should be noted that both Mahogany and Arctic Avenues will connect to other

important transportation improvements recently completed by the City of Bellingham. In 2013, Bellingham is constructing a new west-bound travel lane and sidewalk on the West Bakerview Overpass of Interstate 5. Bellingham is also constructing intersection improvements at Bennett/Bakerview, West Maplewood/Bakerview/I-5, Pacific Highway/Bakerview, and the installation of dual left-turn and a drop-right turn lane at the Arctic/West Bakerview intersection. The cost of all of these improvements totals $3,500,000, as follows:

Transportation Improvement Board $1,500,000 City of Bellingham (Street & TIF) $650,000 Port of Bellingham/Airport $500,000 Economic Development Investment Board $650,000 Whatcom County $100,000 Fred Meyer Corporation $100,000 $3,500,000

3. The project provides for alternative transportation mode choices. Weight: Maximum 10 points

Both Mahogany and Arctic will have 5-foot bike lanes on both sides and 5-foot concrete sidewalks on both sides. Costco and all other development proposals will also be required to construct sidewalks and bike lanes along their property frontage on Pacific Highway. These new sidewalks and bike lanes will tie into existing sidewalks and bike lanes on West Bakerview Road and Northwest Avenue to provide a continuous network of sidewalks and bike lanes on all of the arterial streets in this portion of the City. The vehicle travel lanes on both Mahogany and Arctic will be 11- to 12-feet wide, posted at 25-35 mph, and will accommodate transit busses when WTA provides additional service within northwest Bellingham in the future. It is anticipated that the 160,000 SF Costco store and the 144,000 SF retail shopping center will both require frequent freight truck deliveries, with new freight access provided by both Mahogany and Arctic Avenues. High-frequency (15-minute) public transit service is currently available on WTA's Green GO Line (Routes 27, 55, 232), which runs along Northwest and West Bakerview one block from Arctic Avenue (See Figure 7). The Green GO Line connects to Cordata Station, WTA's northern transit hub, which is 1 mile away

with service connection to the Gold GO Line and several other standard WTA Routes. WTA also provides 3 standard service routes (Routes 3, 4, 55) on West Bakerview between Northwest and Interstate 5 and one standard route (Route 27) to Ferndale along Northwest Drive. According to WTA, there are also plans to begin providing standard transit service along West Bakerview Road to the Bellingham International Airport in the near future.

Figure 7. WTA Transit Routes Available to Mahogany and Arctic Avenues

4. The project provides or includes connections between jurisdictions, hubs, centers, or modes. Weight: Maximum 15 points

There are currently no arterial street connections into or through this portion of

Bellingham and on July 15, 2013, the Bellingham City Council conducted its final voted to annex 262-acres immediately north of Mahogany Avenue (See Figures 4, 8, and 9). Both Mahogany and Arctic will provide direct access connections to significant new economic development that is rapidly occurring along the West Bakerview corridor (See Figure 3) and into the newly annexed portion of the City, which has development potential for over 300 new single family residential homes at minimum densities. Zoning regulations in the newly annexed area allow the potential for many more homes with provisions for cluster subdivisions and smaller hosuing forms in Bellingham's Infill Toolkit.

As mentioned in #3, above, these new arterials also provide new multimodal

connections. Mahogany and Arctic will both have 5-foot bike lanes and sidewalks on both sides and these facilities will tie into existing bike lanes and sidewalks on West Bakerview and Northwest Drive, as well as new bike lanes and sidewalks constructed by private developers along Pacific Highway.

WTA transit service is currently available on West Bakerview and Northwest and will be available on these new arterial streets when WTA expands transit service into these areas in the future. A new 160,000 SF Costco store will be constructed at the corner of Arctic and Mahogany and a 24-pump gas station will be constructed at the corner of Arctic and West Bakerview so these new arterials will also accommodate a significant number of automobiles and freight truck deliveries.

5. The project contributes to system capacity and/or ameliorates identified system deficiencies Weight: Maximum 10 points

Both Mahogany and Arctic Avenues add new arterial system capacity to the northwest portion of Bellingham, which will provide additional route choices and improve circulation and mobility for pedestrians, bicyclists, auto and freight vehicles, and future transit busses. The construction of Mahogany and Arctic Avenues will also help to reduce traffic congestion pressure on West Bakerview Road, which is currently the only east-west arterial crossing Interstate 5 and serving this rapidly developing portion of Bellingham. Bellingham is also currently constructing an additional west-bound lane with a new sidewalk on the West Bakerview/Interstate 5 Overpass intersection improvements at Bennett, West Maplewood, Pacific Highway, and the installation of dual left-turn lanes from Fred Meyer and a drop-right turn lane on West Bakerview to Arctic with completion expected by October 2013. All of these system improvements will add system capacity, improve existing deficiencies, and help to reduce traffic congestion pressure on the West Bakerview corridor.

6. The project has multiple funding partners (beyond local agency and STP),

documentation is required. Weight: Maximum 10 points

Costco Wholesale, Inc. will fully fund and construct Arctic Avenue at an estimated cost of $2,010,932 (See Exhibit 1 - Costco Letter of Commitment). Bellingham is contributing $500,000 in Street funds toward preliminary engineering, design, right-of-way acquisition, mitigation, and environmental permitting of Mahogany Avenue. Bellingham will commit another $750,000 in Transportation Impact Fees assessed from private developments toward the construction of Mahogany. In addition, Bellingham will be seeking construction funding from the Transportation Improvement Board ($2,250,000) and Whatcom County Economic Development Investment Board ($1,250,000) in August 2013. The public-private partnership for the funding and construction of the Mahogany and Arctic Arterials project is as follows: Surface Transportation Program $1,250,000

City of Bellingham Street Fund $500,000 Transportation Improvement Board $2,250,000

City of Bellingham/Private Development (TIF) $750,000 Economic Development Investment Board $1,250,000 Costco Wholesale, Inc. $2,010,932 $8,010,932

7. The project provides for greater freight mobility. Weight: Maximum 10 points

The construction of Mahogany and Arctic Avenues will provide two new arterials for greater freight mobility in a rapidly developing commercial area. Currently, West Bakerview is the only east-west truck route in northwestern Bellingham, which results in high volumes of automobile and a concentration of freight trucks (See Figure 9) on West Bakerview Road. Mahogany Avenue will provide a new east-west connection for freight mobility on the north side of a new 160,000 SF Costco warehouse store at the intersection of Mahogany/Arctic. Developers are also proposing a 144,000 SF retail shopping center immediately west of the Costco site with freight access from both Arctic and Pacific Highway. Both of these major commercial developments will receive significant freight shipments daily. Freight access to Mahogany will be available from Arctic, Northwest, and Pacific Highway. As part of the West Bakerview Overpass improvement project, Bellingham is currently reconstructing the intersection of West Bakerview/Pacific Highway to improve the ability for freight trucks to turn north onto Pacific Highway from West Bakerview.

8. The project serves the needs of travel and commerce by increasing safety or security. Weight: Maximum 10 points

The construction of Mahogany and Arctic Avenues will improve travel, commerce, and freight shipping efficiency, reliability, and cost competitiveness in the movement of workers, customers, and visitors, as well as the movement of freight and retail goods. Access to the rapidly growing West Bakerview commercial corridor will be improved for all transportation modes, including heavy freight vehicles. Improved access to these areas will ensure improved reliability that freight and goods can be efficiently and effectively moved on Bellingham’s designated trucking routes, which will attract economic investment and employment opportunities in this area in the future. The construction of both Mahogany and Arctic will significantly increase economic development and commerce in northwest Bellingham by providing direct access to a new 160,000 SF Costco Store, a 24-fuel pump gast station, a 3,500 SF restaurant, a 144,100 SF retail shopping center, and a 262-acre area annexed to Bellingham on July 15, 2013, which allows at least 300 new residential homes to be constructed. Additional development is very likely to follow on surrounding land parcels north of West Bakerview and in between Pacific Highway and Northwest Drive.

9. The project addresses deficiencies in the all-weather road system.

Weight: Maximum 10 points

The construction of the Mahogany and Arctic Avenue will add two new links to the all-weather road system in Bellingham. While these arterials do not directly address deficiencies on other portions of the all-weather road system, northwestern Bellingham currently lacks east-west all-weather multimodal arterial connections, which forces high volumes of traffic onto other all-weather arterials, such as West Bakerview Road. This creates significant traffic congestion and delay for freight trucks and WTA high-frequency transit busses, as well as lack of connectivity for pedestrians, bicyclists, and school busses. Mahogany and Arctic Avenues will create a new link in the regional all-weather road system, which will benefit other existing all-weather arteials that are currently becoming over-burdened with traffic.

10. The project provides benefit to a large proportion of the local community’s system users. Weight: Maximum 10 points

Mahogany and Arctic Avenues will both be constructed as multimodal arterials to improve safety, efficiency, connectivity, and access for all transportation modes, including freight. These arterials will serve a new 160,000 SF Costco Store, a new 24-fuel pump gas station, a 3,500 SF restaurant, a 144,100 SF retail shopping center, and several hundred thousand additional square feet of commercial and residential development, which will be frequented by a large

proportion of local Bellingham and Whatcom County residents, as well as many shoppers visiting from British Columbia, Canada. Project improvements for local, regional, and visiting motorized users will include access and connectivity between West Bakerview and a newly annexed 262-acre portion of the City. Project improvements for non-motorized users, which predominantly tend to be local residents, will include on-street bicycle lanes and sidewalks on both sides and complete connectivity between sidewalks and bike lanes on all surrounding arterial streets in this portion of Bellingham. Retail sales taxes generated by the development in this area will further fund WTA transit service and Bellingham's Transportation Benefit District (TBD), which funds arterial resurfacing, transit, and non-motorized pedestrian and bicycle infrastructure. Both WTA and the TBD are funded by sales tax revenue and the service and improvements that each provides benefit a large proportion of local Bellingham and Whatcom County residents.

11. The project contributes to preservation of the existing system. Bonus: Maximum 5 points

The construction of the Mahogany and Arctic Avenue arterial streets contribute to the preservation of the exisiting arterial system by providing more connections and better access into a rapidly developing area, which will take pressure off of the only existing east-west arterial in northwest Bellingham. The net result will be increased safety and connectivity in the non-motorized transportation network and increased safety, efficiency, and preservation of existing traffic circulation routes and options for drivers of automobiles, busses, and freight trucks. Retail sales taxes generated by the development in this area will further fund Bellingham's Transportation Benefit District (TBD), which helps to fund resurfacing and preservation of Belligham's existing arterial system. In the past 6 years, Bellingham has invested millions of transportation dollars for two new roundabouts on Northwest Avenue, installation of bicycle and pedestrian improvements along two full miles of Northwest Avenue between West Bakerview Road and Downtown Bellingham, and the addition of a sidewalk, west-bound travel lane, and intersection improvmeents on the West Bakerview Overpass of Interstate 5 with siginificant contributions from the Port of Bellingham, Whatcom County, and private development in this portion of the City. All of these improvements help to reduce traffic congestion pressure on West Bakerview, Northwest, and Interstate 5, which contributes to the preservation of the exisiting arterial and Interstate system through northwest Bellingham.

ATTACHMENTS:

Figure 8. Existing Conditions surrounding Mahogany Avenue (formerly Division)

right-of-way (2010 Air Photo). City annexed 262-acres north on July 15, 2013.

Figure 9. Right-of-way needs for Mahogany Avenue (30' x 700' = 21,000 SF)

Figure 10. Mahogany and Arctic Avenues to be constructed as urban collector arterials

Figure 11. Mahogany and Arctic Avenues will provide greater freight mobility

Figure 12. Employment Center surrounding Mahogany and Arctic Avenues has significant commercial and industrial land for development and job creation.

Figure 13. West Bakerview/Mahogany/Arctic Employment Center