6b. Memorandum

COMMISSION 
AGENDA MEMORANDUM                        Item No.          6b 
ACTION ITEM                            Date of Meeting       April 25, 2017 
DATE:     April 3, 2017 
TO:        Dave Soike, Interim Chief Executive Officer 
FROM:    James R. Schone, Director, Aviation Commercial Management 
James Jennings, Senior Manager, Aviation Properties 
W. Allan Royal, Property Manager, Aviation Properties 
SUBJECT:  Second Reading and Final Passage of Resolution 3732, sale of real property to the
State of Washington Department of Transportation (WSDOT) for SR 518/Des Moines
Memorial Drive Interchange Improvements.
ACTION REQUESTED 
Request Second Reading and Final Passage of Resolution No. 3732:  A Resolution of the Port
Commission of the Port of Seattle declaring surplus and no longer needed for port district
purposes approximately 29,882 square feet of Port-owned real property and located in the City
of Burien, King County; and further authorizing the transfer of said real property to the 
Washington State Department of Transportation for use in construction of the State of
Washington SR 518/Des Moines Memorial Drive Interchange Improvements. 
EXECUTIVE SUMMARY 
The sale of a portion of King County parcel #2023049105 will allow the development of an offramp
from east bound SR 518 to Des Moines Memorial Drive. The Port and the City of Burien
(City) prepared a conceptual redevelopment plan for the Northeast Redevelopment Area
(NERA) in April 2010.  The Plan reflects the common goal of transitioning NERA into a mix of
airport-compatible uses consistent with Federal Aviation Administration (FAA) guidelines. The
Port is pursuing development of light industrial facilities on Port owned property in NERA that
will support the Port's Century Agenda goal of tripling air cargo volume.
The redevelopment plan identified a number of actions the Port and the City could take to spur
private sector investment in NERA.  These actions included development of a comprehensive
regional storm water system to serve the entire NERA and construction of a new eastbound offramp
from SR-518 to Des Moines Memorial Drive to improve access to the regional
transportation network to and to NERA. WSDOT is now ready to proceed with construction of
the off-ramp. The purchase price of the property, plus a temporary construction easement, is
$117,500.00. This was determined by appraisal. The FAA has approved this action. 


Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. __6b__                              Page 2 of 3 
Meeting Date: April 25, 2017 
The subject property is part of the Lora Lake Apartments Cleanup being conducted under a
Consent Decree (CD) with the Washington State Department of Ecology.  All requirements
contained in the CD will be included in the purchase and sale agreement with WSDOT. 
JUSTIFICATION 
The joint vision of the City and the Port for all of NERA is to develop airport compatible uses
that will help serve and enhance the air cargo business at Seattle-Tacoma International Airport
("Airport") and create family wage jobs.  Access to the area is a key component for the
development. This off-ramp will provide direct access for traffic coming from the waterfront to
the businesses that will locate in this area.
Staff's efforts to pursue development of air cargo support facilities in NERA supports the
Century Agenda Strategy to "Position the Puget Sound region as a premier international
logistics hub by tripling air cargo volume to 750,000 metric tons." This action also supports the
Airport's strategic goal of maximizing non-aeronautical net operating income. 
Schedule 
Port staff expects to close the transaction in the second quarter of 2017. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1)  The Port can refuse to sell the property.
Cost Implications: The Port would not receive Fair Market Value of $117,500.00, includes the
Fair Market Value of the property ($113,000.00) plus the value of the temporary construction
easement ($4,500.00) for the property. 
Pros: 
(1) This would keep public access out of the Runway Protection Zone. 
Cons: 
(1) The Port would be required to maintain the property. 
(2) WSDOT does have condemnation authority and there have been extensive studies
validating the appropriateness of an off-ramp at this location. 
(3) The Port would incur litigation costs.
This is not the recommended alternative. 



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

COMMISSION AGENDA  Action Item No. __6b__                              Page 3 of 3 
Meeting Date: April 25, 2017 
Alternative 2)  Sell the property to WSDOT.
Cost Implications: The Port would receive Fair Market Value of $117,500.00, includes the Fair
Market Value of the property ($113,000.00) plus the value of the temporary construction
easement ($4,500.00) for the property. 
Pros: 
(1) This alternative will put the property back into productive use. 
(2) The action will fulfill one of the key requirements for developing the city of Burien
and Port property in the area. 
(3) This will permit easier access to the community for traffic coming from downtown
Seattle. 
(4) The Port will receive Fair Market Value, $117,500.00, for the property. 
Cons: 
(1) The Runway Protection Zone will have traffic within its boundaries.
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
The Port will receive $117,500 for the sale of the property.  There will be no impact on
passenger airline cost per enplanement (CPE). 
ATTACHMENTS TO THIS REQUEST 
1.  Draft Resolution No. 3732 
2.  Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
April 11, 2017  Commission had First Reading and Public Hearing of Resolution 3732 






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

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