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On Monday, the City Council of Bellevue, Wash., approved a memorandum of understanding with Sound Transit for the expansion of “East Link” light-rail service to the city.

The MOU includes a financing plan to help fund a downtown tunnel; an alignment plan designed to minimize noise, traffic and visual impacts to neighborhoods; and “off ramps” to allow either side to void the agreement once the project design reaches the 60 percent stage in 2014, city officials said in a prepared statement.

The agreement establishes how the city will contribute up to $160 million toward the tunnel’s construction.

The council also approved a companion transit way agreement that will allow for use of city rights of way for the project, and establishes a process for obtaining construction permits.

The East Link expansion is being designed to run from Seattle through Bellevue to the Overlake area of Redmond.