AGC Seattle District Report: Seattle District Breakfast and New Member Appreciation | Sound Transit Board Formally Adopts Updated ST3 Plan | Evaluating Seattle's Month-Long World Cup Construction Freeze

Special thanks to our sponsors McDonald Miller and DeWalt! Join fellow AGC members for a relaxed summer social bringing together the Seattle and Northern Districts for an evening of networking, appetizers, beverages, and bowling. This casual gathering is a great opportunity to reconnect with industry peers, meet new AGC members, and enjoy a fun evening in a welcoming setting. Space is limited, so register early to reserve your spot. Register online

On June 25, 2026, the Sound Transit Board of Directors officially adopted an updated Sound Transit 3 (ST3) System Plan to establish a sustainable framework for the region's massive transit expansion. The strategic adjustment addresses an estimated $34.5 billion long-term funding gap driven by sustained market inflation and shifting revenue forecasts.
While the updated plan secures full funding for several critical high-capacity light rail lines, other regional projects face deferral. Concurrently, contractors are adapting to temporary scheduling adjustments; for instance, crews temporarily re-opened NE 130th Street in June 2026 as part of a coordinated construction pause ahead of localized FIFA World Cup preparation matches. Heavy civil contractors tracking future Sound Transit solicitations must closely monitor these revised project delivery timelines. Read more: Construction Dive Rail Market Report, Sound Transit Project Updates

On June 26, 2026, just days after the agency's high-profile vote to rebalance the ST3 portfolio, Sound Transit announced a change in executive leadership with the resignation of Terri Mestas. Mestas, the agency’s first Deputy CEO for Megaproject Delivery, announced her departure effective in early July 2026. Hired in 2024 to spearhead structural oversight, Mestas was instrumental in rolling out rigorous "bottom-up" cost estimation and establishing specialized contracting methods like Multiple Award Task Order Contracts (MATOC).

AGC of Washington extends a warm thanks to Terri for her transformative leadership. She lead the restructuring of the AGC/Sound Transit partnership into a working collaboration to improve capital delivery. As a result, contractors have become a true partner in driving improvements in contracting policy and project delivery. The entire AGC community offers its warmest well wishes to Terri in her next chapter. As she steps down, AGC enthusiastically welcomes Brad Owen into his new executive role and looks forward to continuing Terri’s lasting legacy of genuine industry partnership.
Read more: The Urbanist Sound Transit Capital Delivery Report

Port of Seattle publicly unveiled a sweeping $4.9 billion infrastructure plan for Seattle-Tacoma International Airport (SEA) on June 10th, initiating a public feedback window through July 21. The plan features 31 projects, headlined by a proposed 575,000-square-foot multi-level passenger terminal on the airport’s north side adding 19 new gates. Structural design work will ramp up immediately following the environmental review process, which the Port expects to finalize by the end of 2026.

Long-term capacity upgrades are critical to sustaining the regional economy, and generating thousands of highly skilled construction jobs over the next decade. As the public comment period for the State Environmental Policy Act (SEPA) Draft EIS enters its final weeks, the AGC has been at the table to advocate for the importance of airport expansion; publicly testifying in support of the Sustainable Airport Master Plan (SAMP). Comments on the SEPA are due by July 21, 2026. If you would like join AGC and voice your support for SAMP, you can fill out the comment form online, or email samp@portseattle.com.

In late June 2026, newly released Q2 real estate data revealed a dramatic structural shift for commercial interior and core-and-shell contractors across the Seattle CBD and South Lake Union. Despite historical office vacancies peaking earlier this year, regional recovery is accelerating due to an influx of artificial intelligence tenants demanding high-quality, transit-connected office spaces. Major tech companies are expanding their physical footprint; Anthropic is negotiating a 120,000-square-foot lease in South Lake Union, while OpenAI has more than quadrupled its regional footprint with a 223,000-square-foot expansion. This surge in tenant demand is driving a wave of commercial repositioning, tenant improvement (TI) buildouts often exceeding $100 per square foot, and mechanical upgrades to satisfy modern sustainability standards. Read more: Mohr Partners Seattle Market Report

The city-wide right-of-way construction freeze to accommodate the FIFA World Cup is still on through July 7, 2026. While the freeze has surely made the city easier to navigate in a vehicle, it has heavily compressed contractor operations. In adjacent zones and private properties exempt from the freeze, contractors have faced a logistical "spillover" effect. Other impacts included front-loaded scheduling and a rush for certain street use permits. As the final tournament matches wrap up, AGC members are preparing for a surge in construction velocity once the freeze lifts. If you are building in Seattle and need assistance communicating with SDOT or other Seattle construction departments, don't hesitate to reach out to AGC!

On June 15, 2026, the City of Bellevue formally launched broad community engagement for its new "Downtown Livability 2.0" initiative. This comprehensive land use code amendment aims to support a more vibrant urban core, expand high-density housing options, and strengthen the Grand Connection pedestrian corridor. For the construction community, these regulatory updates will alter building design, temporary signage standards, and zoning criteria for upcoming urban projects. As the project launches, Bellevue wants to hear from the public to identify aspects of the code that can be updated. AGC members are encouraged to share their thoughts directly with AGC, or by filling out the survey online. The survey will be open until the end of July. Read more: City of Bellevue June Policy Update