PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4b 
ACTION ITEM 
Date of Meeting    October 28, 2014 
DATE:    October 10, 2014 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Mark C. Griffin, Director, Real Estate Development 
SUBJECT:  Request authorization to execute a consulting for up to $5 million as part of the
Federal Aviation Administration's Pilot Program for Redevelopment of Airport
Properties 
ACTION REQUESTED 
Request authorization to execute a consulting contract for up to $5 million as part of the Federal
Aviation Administration's (FAA) Pilot Program for Redevelopment of Airport Properties. 
SYNOPSIS 
The Port and the City of Burien (City) are preparing an application to the FAA to assist in the
redevelopment of Port- and City-owned property in the City's Northeast Redevelopment Area
(NERA) identified on Attachment A  Site Map. The pilot program allows applications for up to
$5 million for planning, design, engineering and permitting services.  Per the program's
requirements, twenty percent of the grant amount must be matched by the Port and City.
In December 2013, the Commission authorized execution of an inter-local agreement (ILA) with
the City. The ILA anticipates submission of the pilot program application and the local match
that will be required by the Port and City. Th is authorization implements the ILA's intent by
approving the solicitation for a consultant and execution of a contract with the selected firm to
perform the scope of work.
BACKGROUND 
In February 2013, the FAA issued a program guidance letter (PGL) for airports interested in
obtaining funding under a new pilot program for redevelopment of noise property. Creation of
the program marked the culmination of a multi-year lobbying effort by the City to have the FAA
identify and allocate federal funding to support redevelopment of property impacted by airport
operations.
The PGL encourages applications by airport sponsors (the Port) in tandem with other public
agencies (the City) for up to $5 million. The PGL limits the federal share to 80% of eligible
costs (a maximum of $4 million) and requires a local match for the remaining 20% of costs (a
maximum of $1 million). Pilot program funds may be used for planning, engineering, design,
and environmental permitting expenses, but not construction costs. Upon any sale of the Port's

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 10, 2014 
Page 2 of 5 
property benefited by the program, the Port must "repay" the funds in full. In this context,
"repay" means reinvesting in other eligible airport projects. A long-term lease of noise property
does not trigger the repayment obligations.
For joint applications between an airport and another public agency, the PGL requires a
governance agreement between the agencies. The ILA between the Port and City authorized by
the Commission in December 2013 satisfies this requirement. The ILA anticipates submission of
the pilot program application and provides that the Port and City will split evenly the 20% local
match requirement.
This authorization implements the last outstanding component of the ILA. This authorization
approves solicitation of a consultant and award of a contract to perform the work to be funded by
the pilot program.
The other elements of the ILA have been accomplished. Th e completed work includes the City's
vacation of a street needed by the Port. In addition, per the ILA, the Port has granted several
easements and financially contributed to the City's construction of the first phase of the regional
stormwater project and shared use path. The City completed construction of the stormwater
facilities and path this summer as scheduled.
The pilot program scope of work will build on the work described in the ILA. The pilot program
will fund additional planning, design, engineering and permitting of street, stormwater and
utilities improvements in the NERA.
The timing of this request is intended to allow for completing the consultant procurement process
before the expected award of the pilot program funds in the first quarter of 2015 so that work
under the contract can begin as possible after the FAA's award of the funds.
PROJECT JUSTIFICATION AND DETAILS 
The pilot program is aimed precisely at enabling redevelopment of noise land like the Port's
property in the NERA. The proposed scope of work will build on several years of collaborative
work between the Port and City that resulted in preparation of the NERA redevelopment strategy
in 2010 and the City's recent completion of the first phase of the regional stormwater project 
described in the ILA. The work to be funded by the pilot program will make NERA property
more attractive for developers by eliminating some of the work that the developer would
otherwise have to undertake. 
Project Objectives 
Enable redevelopment of Port and City property by planning, designing and permitting needed
infrastructure.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 10, 2014 
Page 3 of 5 
Scope of Work 
The scope entails planning, design and permitting of street, stormwater and utilities
infrastructure, including utility coordination, surveying, geotechnical studies, stormwater design,
street and roadway design, bid package preparation, permits and approvals, and NEPA/SEPA 
environmental review. 
Schedule 
The Port and City have submitted the pilot program application for the FAA's review and
approval. The FAA expects to award funding under the program in the first quarter of 2015.
The proposed scope work is expected to be performed over two to three years. 
FINANCIAL IMPLICATIONS 
Budget/Authorization Summary              Capital     Expense   Total Project 
Original Budget                            $0          $0          $0 
Previous Authorizations                       $0          $0          $0 
Current request for authorization                  $0    $5,000,000    $5,000,000 
Total Authorizations, including this request           $0    $5,000,000    $5,000,000 
Remaining budget to be authorized               $0          $0          $0 
Total Estimated Project Cost                    $0    $5,000,000    $5,000,000 
Project Cost Breakdown                     This Request       Total Project 
Construction                                     $0               $0 
Construction Management                         $0             $0 
Design                                  $3,300,000         $3,300,000 
Project Management                        $1,200,000        $1,200,000
Permitting                                  $100,000          $100,000 
Other                                    $400,000          $400,000 
State & Local Taxes (estimated)                        $0               $0 
Total                                     $5,000,000         $5,000,000 
Budget Status and Source of Funds 
Approximately $500,000 is expected to be spent in 2015. This amount  is included the airport's
2015 operating budget. Also included in the 2015 budget is the assumption that a $400,000 FAA
grant will be received, and that an additional $50,000 will be reimbursed by the City. The
anticipated spending in successive years will be included in the operating budgets for those
years. As with other Airport Improvement Project (AIP) funding grants, the FAA will reimburse
the Port for eligible expenses under the pilot program.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 10, 2014 
Page 4 of 5 
Financial Analysis and Summary 
CIP Category             N/A 
Project Type              N/A 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        N/A 
Business Unit (BU)          Commercial Properties 
Effect on business performance  Funding for the expected expenses in 2015 is included in
the airport's 2015 operating budget and will be included
in subsequent operating budgets.
IRR/NPV             N/A 
CPE Impact             N/A 
STRATEGIES AND OBJECTIVES 
This authorization facilitates development of air cargo facilities in the NERA in support of the
Century Agenda strategy to "position the Puget Sound region as a premier international logistics
hub" by, in part, "tripling air cargo volume to 750,000 metric tons." This work also supports the
airport's strategic goal to increase non-aeronautical net operating income. 
TRIPLE BOTTOM LINE 
Economic Development 
As mentioned, the NERA work supports growth in air cargo volumes and the broader economic
benefits associated with such growth. In addition, the City expects new development in the
NERA will increase the tax revenue it receives.
Environmental Responsibility 
The proposed scope of work builds on the recently completed first phase of the regional
stormwater system. A regional system allows for a more cost effective and holistic approach to
stormwater management in the NERA. Each land owner working independently would be
unable to realize the efficiencies and benefits associated with a regional system.
Community Benefits 
The community benefits from Port and City collaboration to return the vacant NERA property to
productive use and remove potential blight and crime from the surrounding neighborhood. 
Small Business 
Project staff will coordinate with the Office of Social Responsibility to determine goals and/or
requirements for small business and Disadvantaged Business Enterprises (DBE) participation.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 10, 2014 
Page 5 of 5 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  Delay consultant selection and contract award. If the procurement process is
delayed, performing the scope of work will be delayed by several months. This would mean the
loss of valuable time in completing the work and marketing the NERA sites for disposition. This
is not the recommended alternative. 
Alternative 2)  Proceed with executing a consultant contract. This alternative is synched with
the FAA's expected notice of award under the pilot program and accelerates both completion of
the scope of work to be funded under the program and redevelopment of the NERA property.
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Attachment A  Site Map 

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
October 7, 2014, Staff briefing 
December 3, 2013, Burien ILA briefing 
December 10, 2013, Commission approved the ILA with the City