Agenda Item: 11a_supp
Meeting Date: April 14, 2026

Tax Increment Financing:
Grand Connection
Crossing
Port of Seattle Commission Meeting
April 14, 2026

Agenda
 Grand Connection
Overview
 Port Participation
in TIF
 Next Steps

April 14, 2026

Tax Increment Financing - Grand Connection Crossing

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Grand Connection Crossing will promote
connectivity and livability

April 14, 2026



This bike-ped crossing over I-405,
roughly a half-mile in length, will
connect downtown Bellevue to the
redeveloping Wilburton neighborhood.



People both walking and biking will be
able to travel east-west with ease and
safety thanks to separated facilities.



It will catalyze Wilburton's
transformation into a mixed-use,
transit-oriented neighborhood with
housing choices for people of all
incomes.

Tax Increment Financing - Grand Connection Crossing

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Grand Connection will connect key
regional growth centers, drive up tourism
 Accessible by light rail from SEA and Seattle,
including downtown cruise ship terminals
 Investment in active transportation and open
spaces projected boost retail and tourism
 Based on a 2025 HR&A analysis of similar projects,
we expect to see:
o Increased leisure visits and an increase in
employment in the tourism industry
o Shoppers who will spend up to 9-12% more
when buying goods in areas with greater open
space
o Up to 3 times the amount of people staying in
enhanced open spaces, such as at cafes or on
park benches.
April 14, 2026

Tax Increment Financing - Grand Connection Crossing

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Facilitating both
transit-oriented and
trail-oriented
development
 Bellevue's June 2025 upzone will
enable transit-oriented development
of up to 450' along the north-south
spine of Wilburton.
 Robust ped and bike connections,
including the 42-mile regional Eastrail
corridor
 Magnet for major employers,
including T-Mobile, TikTok, OpenAI,
Amazon, Snowflake, and more

April 14, 2026

Tax Increment Financing - Grand Connection Crossing

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Tax Increment Financing (TIF)
Overview
What opting-in means for Port of Seattle

Funding
commitments
 Total project cost estimated
at $200-230 million
 Funding committed to date:
 $2.5 million: Friends of
the Grand Connection
 $46.7 million: Bellevue's
2025-3031 Capital
Investment Program
 TIF is expected to cover
20-30% of debt service

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Tax Increment Financing - Grand Connection Crossing

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 TIF captures property taxes
generated from increased
assessed value (AV) on the sites
that redevelop within the TIF
boundary
 Only revenues from regular
property taxes assessed against
the increment value are
captured:

Assessed Value (AV)

TIF Model

April 14, 2026

Incremental AV
Incremental Real
Property Tax captured
by City of Bellevue to
pay project costs

TIF District Total
AV now belongs
to all Taxing
Districts

BASE AV
AV belongs to all taxing districts
overlapping TIF District

 To pay public improvement
costs
 To repay bonds issued for
public improvements

NEW
Post-Project AV

Created

25-year TIF (estimated)

Tax Increment Financing - Grand Connection Crossing

Terminated

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Proposed Tax
Increment Area
(TIA)
 Delivered to State Treasurer
January 14, 2026
 Shared with taxing jurisdictions
on January 16, 2026
 $500M assessed value maximum
(0.06% of King County AV)
 Analysis models three
development scenarios that could
result over the life of the TIF
because of the Crossing project:
• Full, Phased, and MarketResponsive Limited Buildout

April 14, 2026

Tax Increment Financing - Grand Connection Crossing

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Financial Impacts for the Port
• Taxing districts give up direct access
to some revenue in the near term
but benefit from long-term growth in
assessed value.
• If a taxing district has not reached its
statutory levy limit, it is permitted to
increase its tax rate slightly to
recover the revenue that is allocated
to the TIA.
• This is provided by state law in
an effort to cause "no harm"
to taxing districts in TIF areas

25-year TIF (2027-20252)
Development
Scenario

Limited

Taxes Allocated
to TIF

Total Taxes to
Port

$1,407,000

$1,476,000

Total taxes apportioned from the Port to the city
$1.41 million, slightly below the district levy
growth of $1.48 million, which includes $66,000
from new construction and $1.41 million from the
increment.

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Next Steps
 Request Commission action on
TIF by early May
 Bellevue City Council will
consider taking action in May to
establish the Tax Increment
Area
 Funding decisions for TIF are
part of the city budget process
later this fall

April 14, 2026

October 19: Shared Preliminary Project Analysis with
Taxing Districts
January 16: Submitted Project Analysis shared with
Taxing Districts
April 28: Bellevue City Council provides direction on
establishing the Tax Increment Area (TIA)
May 19: Potential action by Bellevue City Council to
establish the Tax Increment Area (TIA)

Tax Increment Financing - Grand Connection Crossing

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