PORT OF SEATTLE 
CORRECTED COPY                   MEMORANDUM 
COMMISSION AGENDA              Item No.:       6a 
ACTION ITEM             Date of Meeting:  November 13, 2012 

DATE:     November 12, 2012 
TO:       Tay Yoshitani, Chief Executive Officer 
FROM:    Joe McWilliams, Managing Director, Real Estate Division 
Craig Watson, General Counsel 
SUBJECT:  Stipulated Order for Immediate Possession and Use of easements over portions of
the West Yard at Terminal 91 for the South Magnolia Combined Sewer Overflow
Project 

Amount of This Request: N/A        Source of Funds: N/A 
Est. State and Local Taxes: N/A       Est. Jobs Created: N/A 
Est. Total Project Cost: N/A 
ACTION REQUESTED: 
Request Port Commission authorization for the General Counsel to enter into a Stipulation and
Agreed  Order for Immediate Possession and Use (Order) of Port property consisting of
easements over portions of the West Yard at Terminal 91 for King County's construction and
operation of the South Magnolia Combined Sewer Overflow (CSO) Project. 
SYNOPSIS: 
Staff proposes to stipulate to an Order that will grant King County immediate possession and use
of easements over portions of the Port's Terminal 91 West Yard parcel to allow for the County's
construction of South Magnolia CSO Project. This Order is entered into as part of ongoing
condemnation proceedings brought by the County based on their permitting schedule. The Port
is also simultaneously negotiating to sell the West Yard property to King County and prefers that
outcome.
BACKGROUND: 
A National Pollutant Discharge Elimination System ("NPDES") Waste Discharge Permit issued
to King County by the Washington State Department of Ecology requires that the County
commence construction of the South Magnolia CSO by 2013.  The CSO will include
construction of a subsurface storage tank along with surface access for hatches, an above ground
ancillary building, and a subsurface conveyance pipeline. Construction of the CSO is required to
prevent the uncontrolled overflow of stormwater and sewage into Puget Sound from the South

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 12, 2012 
Page 2 of 4 
Magnolia basin, which is currently served by the County's West Point wastewater conveyance
and treatment system.
King County has identified portions of the Terminal 91 West Yard property as necessary for the
construction and operation of the South Magnolia CSO. To complete the project, the County has
determined that it needs to acquire (i) a permanent easement of approximately 34,254 square feet
for the subsurface storage tank and above ground ancillary building; (ii) a permanent easement of
approximately 3,878 square feet for the subsurface conveyance pipeline; (iii) a temporary
construction easement of approximately 108,900 square feet for construction staging and
removal of spoils from construction; and (iv) a permanent access easement. 
On June 5, 2012, the County began condemnation proceedings in King County Superior Court in
order to meet the NPDES Permit schedule. To this end, the County is requesting possession of
the property through an Agreed Order for Immediate Possession and Use.  The County is
requesting possession of all permanent easements by no later than December 28, 2012. The
County may delay possession of the temporary construction easement until August 1, 2013.
Once the Port agrees to the County's request for immediate use and possession, the only item to
be resolved in the condemnation action is the value of the easement interests requested by the
County. If the Port and the County reach agreement on the value of the easements, staff will
return to the Commission for authorization to execute the permanent and temporary construction
easements. If the County and the Port do not reach agreement on value, the condemnation trial
will ultimately determine the value of the easement interests. 
Concurrent with the County's condemnationaction, staff are negotiating a potential fee simple
sale of the entire West Yard parcel to the County that would facilitate the City of Seattle's and
local community's interest in development of a park on the parcel. If such agreement is reached
within the County's permitting timeline, the County will dismissthe condemnation suit. If
possible, sale of the West Yard is preferable to granting easements for the CSO project. Staff
will return to the Commission for authorization to execute a purchase and sale agreement if these
negotiations are successful. 
FINANCIAL IMPLICATIONS: 
Consistent with state law requirements, once the parties sign the Order, the County will deposit
into the court's registry compensation for the easement rights based on the County's appraised
value. The County's appraised compensation totals $3,095,912, computed as follows: 
Tank, Pipeline and Access Easements           $2,077,700 
Temporary Construction Easement (2 years)        $509,100 
with a possible extension of up to 24 months at      $21,213 per month 
The Port will be entitled to withdraw the funds from the court registry immediately after entry of
the Order. To the extent the Port disagrees with the County's appraisedvalue, the Port retains
the right under the Order to challenge the easement valuation.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 12, 2012 
Page 3 of 4 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1: No action 
The Port does not stipulate to the Order. This alternative delays the CSO project. This is not the
recommended alternative. 
Alternative 2: Stipulate to immediate use and possession 
This alternative allows the condemnation process to continue.  This is the recommended
alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Map. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
December 7, 2010  Staff briefing on King County's need to construct to the South Magnolia
CSO project.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
November 12, 2012 
Page 4 of 4