SEATTLE — There's new trouble for the project replacing the Alaskan Way Viaduct with a tunnel.
The feds are threatening to cut off funding because the state's contractor hasn't hired enough minority-owned businesses.
A new report from the Federal Highway Administration Office of Civil Rights slams both the state and the contractor, Seattle Tunnel Partners.
The contractor is getting paid $1.35 billion to tunnel under downtown, and was supposed to set aside 8 percent of the work for minority-owned businesses.
A line in the report suggests those businesses are actually getting less than 1 percent.
The threat to cut off funding came at the end of a letter to Transportation Secretary Lynn Peterson.
"If D.C. really wanted to send a message they'd cut the money off," said Eddie Rye Jr. of the Community Coalition for Contracts.
He says many contractors routinely brush off requirements to include minority-owned businesses.
"All these guys just pay a fine and keep going like it's the cost of doing business," Rye said.
The federal report suggests Seattle Tunnel Partners, and some state officials, felt the 8 percent goal for minority-owned businesses was too high.
Yet, that goal is in the contract.
The FHWA say Seattle Tunnel Partners created barriers to meeting the goal and the state has not done enough to enforce the requirement.
The state Department of Transportation said in a statement Friday it has long had concerns about the contractor not meeting these goals and will decide in the next 30 days on action to take against Seattle Tunnel Partners.
Transportation Secretary Peterson says she'll also arrange a third-party review.
Work continues on the tunnel project.
KIRO
