PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA              Item No.     6b 
Date of Meeting  September 7, 2010 
DATE:    August 25, 2010 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Joe McWilliams, Managing Director, Real Estate 
Craig Watson, General Counsel 
SUBJECT:  Settlement of Condemnation Action by City of Des Moines to Acquire Port
Property Needed for the South Correctional Entity Jail Facility 

Net Proceeds from Settlement: $2,050,000 
Reimbursement Due City of Des Moines: $440,000 

ACTION REQUESTED: 

Request Commission authorization for the Chief Executive Officer to execute all documents
necessary for settlement of the condemnation action by the City of Des Moines (City) to acquire
Port-owned property and other property interests necessary for the construction of the South
Correctional Entity (SCORE) jail facility. 
BACKGROUND AND JUSTIFICATION: 

In April, 2009, the City, on behalf of SCORE, condemned Port owned property for construction
of a multijurisdictional jail. On August 10, 2009, the Port granted the City use and possession of
the property and jail construction is well underway. At the time it took possession of the
property, the City paid the Port $2,490,000, the value concluded by the City's appraiser. The
Port's appraiser disagreed with the City's opinion of value. 
Subsequently, SCORE indicated that its original value determination was based on inaccurate
assumptions about the property (access, utilities, useable square footage and environmental) that
did not come to light until SCORE began construction of the jail. SCORE concluded that the
property was actually worth $482,550. The Port disagreed with SCORE's position. 
The case is scheduled for trial on October 25, 2010. Mediation was held on August 19, 2010,
and the parties arrived at a proposed settlement that fairly represents the risk and costs of taking
the matter though trial.

COMMISSION AGENDA 
Page 2 

RECOMMENDATION: 

The recommendation is to approve the settlement terms outlined below: 

1.  City will pay the Port $2,050,000 in just compensation for the taking of the Port property.
The $2,490,000 previously paid by the City to the Port will be credited against the just
compensation amount and the Port will reimburse the City a total of $440,000. 
2.  The Port will stipulate to a Decree of Appropriation transferring to the City all title and
right to the Port property. 
3.  The Port will grant SCORE a quit claim deed as to any rights the Port may have on that
portion of 18th Avenue South between 200th and 208th owned by the City of SeaTac, the
road that will provide access to the jail site. 
4.  The Port will grant SCORE a temporary construction easement to construct a ditch that
will maintain the flow of Port stormwater from the adjacent Port property. 
5.  The Port will grant SCORE or PSE easements for the construction of 2 electrical vaults
on adjacent Port property that will serve the SCORE facility and any future development
of the adjacent Port property. 
6.  SCORE will grant the Port an easement for access to the adjacent undeveloped Port
property. 

ALTERNATIVES CONSIDERED: 

Proceed to Trial. Aside from incurring significant attorney and expert fees, the Port would be
taking a risk that the jury verdict could come in significantly lower than the settlement amount. 

Approve Settlement. The proposed settlement resolves all outstanding issues with the City and
SCORE related to the value of the Port property, as well as other property rights necessary for
SCORE to complete construction of the jail without further delay.