Burien Town Square took another step forward July 17 when city council members unanimously approved a vital element of Urban Partners' financial plan for the private portion of the development.

Of the estimated total cost of $138 million for the private portion of Town Square, Urban Partners has arranged for $40 million in cash equity to come from Westport Capital Partners, LLC.

Westport Capital Partners manages institutional real estate investments for pension funds, insurance companies and Wall Street investment banking houses.

Additional funding will come from a subsidiary of Urban Partners LLC.

Under the Disposition and Development Agreement with Urban Partners that was executed in June 2005, the city must approve the developer's financial plan for the project.

Now that lawmakers have approved the "equity" part of the financial plan, the "debt" portion of the financing plan will be submitted to the council later this year.

Urban Partners is expected to seek a loan from a commercial construction lender for the balance of the $138 million.

While Urban Partners is paying for the private portion of the Town Square in the partnership, the city is paying for streets and infrastructure, its share of the new city hall/King County Regional Library, and a public park in the center of the development.

Funding sources for the project include contributions from federal and state sources, and the voter-approved King County Library bond. No additional taxes are required for Town Square development.

The City and Urban Partners have met every deadline in their public-private partnership.

The City met one of its financing obligations last November when council members approved funding for Town Square's streets and infrastructure.

Urban Partners met a contingency in the agreement in June when it deposited a $233,300 down payment with the city for the purchase of city-owned property at the development site.

Mayor Joan McGilton said council approval of the equity part of the financial plan ensures that Town Square is progressing.

"We're pleased that Urban Partners is obtaining the necessary funding to make this project happen," McGilton said.

Dan Rosenfeld, principal of Urban Partners, added, "Our three-year partnership with the city continues to be very, very successful."

When completed in 2009, Town Square will have more than 300 condominiums and apartments, ground-level retail shops, restaurants, professional offices, a new city hall/library, and a one-acre public plaza and park.

For detailed information on Town Square, go to the www.ci.burien.wa.us and follow the "Town Square" links.