COMMISSION 
AGENDA MEMORANDUM                        Item No.          6g 
ACTION ITEM                            Date of Meeting       April 16, 2019 
DATE:     March 29, 2019 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Dave McFadden, Managing Director Economic Development 
Daniel Alhadeff, Real Estate Development Manager 
SUBJECT:  Introduction of Surplus Resolution 3757 and Purchase and Sale Authorization for
Harbor Avenue Property (Parcel No. 798740-0020) 
ACTION REQUESTED 
Request adoption of Resolution No. 3757: A Resolution of the Port of Seattle Commission
amending Unit 20 of the Comprehensive Scheme of Harbor Improvements of the Port of Seattle
(Lower Duwamish Industrial Development District) by: (i) declaring certain real property surplus
and no longer needed for Port district purposes; (ii) deleting said property from Unit 20 of the
Comprehensive Scheme; and (iii) authorizing the Executive Director to take all necessary steps
and execute all documents for the sale of such real property to West Coast Self-Storage Group,
LLC.; amending Resolutions No. 17, 2769, and 2805 of the Port of Seattle Commission. 
EXECUTIVE SUMMARY 
Staff is requesting that the Commission sell a small parcel of Port owned property on Harbor
Avenue Southwest across the railroad track from Terminal 5. The Port purchased 3330 Harbor
Avenue Southwest in 1996 from the Salmon Bay Steel Corporation. It was part of a larger
acquisition and exchange of properties needed to support earlier development of Terminal 5. 
Since the Port purchased this property it has been unable to use the site beneficially. The site
has not turned out to be a strategic accessory space as the purchase originally intended. Active
rail spurs prohibit direct access from the site to T-5. The site is also too distant from the Port's
CEM and Pier 2 properties to tangibly support development of these sites.
Port staff has attempted to lease this property on several occasions for parking and other
potential developments; however, it  has not generated any interest. The site's small size and
uneven topography make it difficult to market. For these reasons, the site has not produced
any income to the Port since its purchase. 
The public hearing and first reading for Resolution No. 3757 was held on March 26, 2019. 
JUSTIFICATION

Template revised April 12, 2018.

COMMISSION AGENDA  Action Item No. _6g___                              Page 2 of 5 
Meeting Date: April 16, 2019 
On December 13, 1994, the Port of Seattle Commission authorized staff to enter into a
purchase and sale agreement with Birmingham Steel Corporation (DBA Salmon Bay Steel
Corporation). The Port properties involved in the exchange were portions of Terminal 105 and
portions of property located on Harbor Avenue Southwest- both within the City of Seattle. This
exchange provided the Port with property required for Burlington Northern rail operations
associated with the expansion and future development of Terminal 5 and the completion of the
Southwest Harbor Project. 
This parcel, in particular, was part of a street vacation negotiation between the seller (Salmon
Bay Steel Corporation) and the Port. The transaction exchanging these properties closed on
August 28, 1995 and the Port took possession of the parcel a year later. The purchase price of
this particular parcel was $101,177. 
The site was purchased as part of an assemblage of a larger group of industrial properties in the
Cities of Seattle and Kent. The site was more of a "throw in" parcel with anoriginal goal of 
providing parking, open storage and construction laydown areas for the Port or businesses
along Harbor Avenue.
The site has not turned out to be a strategic accessory space as the purchase originally
intended. The property does not provide any access to T-5. It is too distant from other Port
properties to be of strategic value.
Efforts to lease the property have been unsuccessful. The site's uneven slope and small size
limit its development potential. For these reasons the site has not produced any income to the
Port since its purchase. 
Given the property's limited development options, it cannot tangibly support the Port of Seattle
Century Agenda goals.  The property is too small for any development that match our future
aspirations of creating jobs, adding value to our tourism destination, or international business
logistics. The site was found to have no commercial value supporting small business growth, nor
workforce development and it cannot strategically support our maritime or cargo related uses. 
West Coast Self-Storage (WCSS) has agreed to all purchase and sale terms and conditions of an
11,579 square-foot parcel in West Seattle at a final agreed purchase price of $699,140. The
buyer, which owns the adjacent property immediately to the north, will ultimately develop the
site as a self-storage facility serving the storage needs of the West Seattle Community. 
DETAILS 
The Port has obtained an appraisal of the property, which is fully described in the attached Fair
Market Value appraisal report, prepared by Kidder Mathews, dated February 13, 2019. The
subject property also contains an 823 square-foot encroachment area along its southern edge.
The sales price is based on the following: 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _6g___                              Page 3 of 5 
Meeting Date: April 16, 2019 
1.) As-unencumbered for the entire subject site 
2.) The unencumbered portion only 
3.) The 823 square-foot portion encumbered by the encroachment 
As a result of The Port's investigation and analysis, the market value of the fee simple interest
in the subject is: 
Total Subject as of February 13, 2019 ........................................................................... $750,000 
Total Subject less Encumbered Area as of February 13, 2019 ..................................... $700,000 
Encumbered Area as of February 13, 2019 ...................................................................  $50,000 
The property contains a narrow 823 square-foot encroachment area along its southern edge
which has been occupied by asphalt and parking improvements since its construction in 2004 
by the neighboring (ActivSpace) property to the south.
Pursuant to the purchase and sale agreement, the buyer agrees to release the Port from any 
claims relating to the environmental condition of the property. Upon closing, the buyer agrees
to further indemnify the Port for any claims, including third-party claims, relating to
environmental conditions on the property attributable to pollutants that emanate from buyer's
adjacent parcel. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do Nothing  Retain ownership of Harbor Ave Property 
Pros: 
(1) Retains property for other small development projects 
(2) Provides temporary laydown area for local construction crews 
(3) Could provide some on-site open storage 
Cons: 
(1) Missed opportunity to remove unneeded property 
(2) Missed opportunity for selling in a hot market 
(3) Missed opportunity to engage with buyer that is ready to purchase a property that we
don't need. 
This is not the recommended alternative 
Alternative 2  Develop Harbor Ave Property 


Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _6g___                              Page 4 of 5 
Meeting Date: April 16, 2019 

Pros: 
(1) Develop a small building that will provide additional leasing and revenue
opportunities 
(2) During construction, environmental impacts and contamination can be mitigated. 
Cons: 
(1) Requires major Port investment of funds 
(2) Requires an increase in costs due to increased number of consultant procurements
and construction mobilizations 
(3) Requires additional staff time and costs to manage individual design and
construction effort for a small property 
This is not the recommended alternative. 
Alternative 3  Sell Harbor Avenue Southwest property 
Pros: 
(1) Achieves Port objectives by declaring certain real property surplus that is no longer
needed for Port district purposes 
(2) Provides revenue from sale of a property that is otherwise non usable for Port
purposes 
Cons: 
(1) Requires Port to sell existing property in industrial zone 
(2) Requires reduction of existing area available for on-site open storage 
(3) Requires reduction of existing land available for lay down area for various port
projects in the vicinity 
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
(1)   Slide Presentation 
(2)   Draft Resolution No. 3757 
(3)   Draft Purchase and Sale Agreement 
(4)   Neighborhood map graphic and site survey 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
March 26, 2019  Resolution Number 3757, surplus and sale of Harbor Avenue Property (Parcel
No. 798740-0020), hearing and first reading passed. 


Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. _6g___                              Page 5 of 5 
Meeting Date: April 16, 2019 
December 13, 1994  The Commission authorized staff to enter into a Purchase and Sale
Agreement with Birmingham Steel Corporation for the exchange of four separate properties,
including the Harbor Avenue Property (Parcel No. 798740-0020). 

















Template revised September 22, 2016; format updates October 19, 2016.