City Council Recap: A 6-1 Vote Toward the TBD, and $77 a Household on the Table

Bellevue Chamber of Commerce  |  October 6, 2026

At its October 6 meeting, the Bellevue City Council voted 6 to 1 to direct staff to prepare an ordinance assuming the Bellevue Transportation Benefit District, then spent its study session on three transportation funding scenarios for the 2027-2028 budget. The Council also took initial consideration of two site-specific rezones that would put housing on office-zoned land, with final action tentatively set for October 20.

What the vote does, and does not do

Staff described the vote as an administrative step. The Council formed the district in July 2023, and voting to assume it lets the Council govern the district under its own rules. The motion, moved by Deputy Mayor Dave Hamilton, carries no decision on revenue. Staff said guidance on new revenue would come later, likely in November.

Three scenarios, and a $20 fee for neighborhoods

Scenario 1 is the preliminary budget with no new revenue, about $300 million over ten years. Scenario 2 adds a 0.1 percent sales tax, about $11 million a year, which staff said would complete Spring Boulevard Zone 3, the SE 34th sidewalk and a set of intersection widenings. Scenario 3 adds a $20 vehicle registration fee, about $2 million a year, dedicated to neighborhood mobility. Staff put the sales tax at about $57 a year for an average household.

The Grand Connection Crossing carries a final design and construction cost of about $265 million, funded in the preliminary budget from existing sources and future tax increment property taxes. 

Public comment on the package

The Chamber's Policy Council authorized support for Scenario 3 on four conditions, set out in the Chamber's letter to the Council the same day. Tony Sprague, the Chamber's public policy manager, delivered that position in person.

"The question is no longer whether to raise transportation revenue, but how. We would rather see this council act now than wait years for another opportunity." — Tony Sprague, Bellevue Chamber of Commerce

Council discussion

"Nobody is excited about adding another tax or a fee. Right now ,people are paying more for almost everything." — Mo Malakoutian, Mayor of Bellevue

Councilmember Jared Nieuwenhuis pressed staff on why Scenario 2 funds bikes and pedestrians at 70 percent more than vehicles when most people reach the city by car. Staff said a property tax or a voter measure would push the conversation toward 2029.

Councilmember Robinson asked for safe routes to school projects to move earlier, and Councilmember Naren Briar asked whether other fees paid by residents can be eliminated so the proposed sales tax would become a net zero for residents. 

"We have to be really really careful about the ROI of what investments we are making with other people's money, our community's money." — Vishal Bhargava, Bellevue City Councilmember

Councilmember Bhargava asked staff to stack-rank funded projects so failing intersections and safety work are built first rather than studied. Deputy Mayor Hamilton said he favors Scenario 3 and cited Chamber polling that named traffic and transportation the top problem facing Bellevue.

"I'm concerned that if we do not spend a modest amount more now, we will wind up spending much more later." — Dave Hamilton, Deputy Mayor of Bellevue

Two rezones at initial consideration

Bellewood Townhomes would amend the concomitant zoning agreement on 3.2 acres at 2233 and 2229 112th Avenue NE to allow 42 townhomes, with the office zoning unchanged. EverGlen Village would rezone 0.62 acres at 12500 NE 10th Place in Wilburton from Professional Office to Mixed Use Residential Midrise, bridging parcels already rezoned under the Wilburton code amendment and the Bel-Red area to the north. 

Budget sessions continue October 13 and 20, with a public hearing October 27, deliberation November 3 and adoption possible November 17.