Appendix E
Community and Economic Development
Undergrounding Power Strategy
Recommended by the Planning Commission on July 26, 2010
Approved by the City Council on August 12, 2010
Community and Economic Development
Undergrounding Power Strategy
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AppendixAppendix
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Existing Scenes of Power Poles and Overhead Lines on 56th Avenue West
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Undergrounding Power Strategy
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BACKGROUND
Undergrounding of power and telephone lines creates a more pleasant and visually attractive
commercial or residential district. This results in increased property values. It also makes the
sidewalk feel more walkable—and sometimes literally removes pedestrian obstacles. The
community has long supported the undergrounding of power lines. But it is expensive.
The Utilities Chapter of the Mountlake Terrace Comprehensive Plan contains the following
Action Step:
Develop a strategy by 2010 to encourage undergrounding of overhead lines in the Town
Center and other areas where most appropriate.
Action steps in a Comprehensive Plan are required to be implemented. This document, the
Undergrounding Power Strategy, is intended to implement the above action step and fulfill the
Comprehensive Plan requirement. In doing so, it identifies a strategic approach to meeting a
community goal.
The Comprehensive Plan also has a Community Livability Chapter which focuses on the
importance of an attractive community with a pleasing visual appearance. Similarly, the
Economic Vitality Chapter emphasizes “quality of life,” recognizing that businesses prefer to
locate in vibrant, livable communities. Both chapters note the value of a walkable Town Center.
The undergrounding of power lines, particularly in the Town Center, will help achieve a more
attractive and walkable place for people and businesses.
RESOURCES
When new lines or service are installed, the City requires the lines from the nearest source to be
underground; this must be paid for by the customer, typically a developer or a commercial
business. Utility companies in Washington pay none of the costs for undergrounding existing
overhead lines. The City does not have enough funds on its own to pay for undergrounding lines
along the street without sacrificing critical public services. Because development in Mountlake
Terrace mostly occurs on a parcel-by-parcel basis, the undergrounding of power and other utility
lines along a whole street—or even a whole block—is not likely to occur under the current
scenario.
Resource options include the formation of a district to fund improvements that include
undergrounding power. However, the majority of property owners in any district would need to
agree on the terms. Given the up-front costs, existing owners of standard small lots are probably
not keen to form a district and fund the installation of underground power lines—even though it
would ultimately benefit themselves, as well as the community as a whole.
A possible resource in some states—but not Washington State—is a Tax Increment Financing
District, which allows bonds to be issued for infrastructure, based on the future value of the
district being improved. Since Washington does not allow this tool (other than through two
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Undergrounding Power Strategy
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modified versions known as the “Local Infrastructure Financing Tool” (LIFT) and “Local
Revitalization Funding” (LRF), which are available only on a highly competitive and limited
basis), Tax Increment Financing is generally not an option for Mountlake Terrace.
The most feasible solution at this time (besides continuing to require undergrounding as new
lines or services are installed) is to seek grant funding and other state or federal allocations to
assist with the costs of undergrounding power as part of a package of street improvements.
Opportunities for street improvement grants include funds that come through the Puget Sound
Regional Council and other regional, state, and federal agencies. A current example is TIGER
II, a grant program through the U.S. Department of Transportation. In addition, partnerships with
other agencies, such as the Snohomish County Public Utility District should be pursued.
FOCUS
Because of the scarcity of funds that could be used to help underground lines, the City must
focus on the most important areas for economic development. Based on the Comprehensive
Plan, the Town Center Plan, the Economic Vitality Strategy, and the City Council’s own
Economic Development Goal, the most important area for undergrounding power is the Town
Center. Within the Town Center, the priority street for revitalizing is 56th Avenue West—which
serves as the City’s traditional “Main Street.” A second priority street would be 236th, which
connects the Transit Center with downtown.
Therefore, the City should seek grant funding—and any direct state or federal allocations—for
reconstructing 56th Avenue West from 230th to 236th Street SW (or if possible, all the way from
230th to 244th Street SW) to include wider sidewalks, street trees, and undergrounding of power
lines. Possible grant sources currently include: TIGER II, LIFT, and LRF.
Meanwhile, any opportunities to create partnerships or find new funding sources – whether
through a change to Washington State law that would allow Tax Increment Financing Districts or
some other tool – should be encouraged.
NEXT STEPS
Implementation of the Strategy means that:
 The City will continue to require undergrounding from the nearest source when new
lines or services are being installed.
 City staff will actively seek and apply for grant funding to reconstruct 56th Avenue West
through the Town Center, to include undergrounding of power and phone lines.
 The City will seek out new opportunities and resources to fund street improvements that
include undergrounding overhead lines.