Port of Moses Lake rail project moving to construction

MOSES LAKE — With two decades of work already in the project, the Port of Moses Lake is looking for someone to oversee construction of its new and refurbished rail line. Milton Miller, port facilities director, said hiring a construction manager is the first step. 

“The (request for proposals) for a construction manager is going out later this month,” he said. “Hopefully, we should have a firm and a price for you in April.” 

Since the project has been in development a long time, a lot of the design and engineering has already been completed. The new and refurbished rail line will extend from Wheeler Road Northeast near Road L Northeast out to the port, Miller said in an earlier interview. The new rail line will connect with existing lines north of Moses Lake.  

Port director Dan Roach said in a separate interview that the port has $23 million in state funding and $10 million in federal funding for the project, but that’s not enough. Inflation caused substantial increases in the cost, Roach said.  

“A few years ago, the port started working on the tax increment area, and that was going to be a solution to fill the gap,” Roach said. 

A tax increment area is based on the idea that development and infrastructure improvements raise property values. Baseline property values are established when a tax increment area is formed, and any increase in property tax revenues is used to finance development.  

The tax revenues were less than originally projected, however, Roach said. 

“On top of that, inflation went even higher, and it was leaving a gap of millions and millions of dollars. So here we are – we've got right of way, 100% design, we’re going out to bid, and we have to accomplish (the project) in a certain amount of time,” Roach said. 

The federal grant requires project completion within a specified time frame, he said, or it’s rescinded. Port officials asked for an additional state allocation, but that didn’t happen, he said. 

“We were trying to get creative, to (figure out) how we are going to fill that gap,” he said. 

The solution was proposed legislation sponsored by 13th District Senator Judy Warnick, R-Moses Lake, to allow the port to increase its indebtedness level.  

“That’s going to allow us to borrow the money we need to fill that (gap) to be able to fund the project,” Roach said. 

It required a late-night negotiation session by local legislators. 

“They negotiated that (as part of a package) at 1 a.m. Thursday,” said port lobbyist Roman Derrick-Brown. “They grabbed six bills that were going to be part of the package and put our bill on to that one.” 

The bill has been sent to Gov. Bob Ferguson for his signature.