PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA    Item No.   6c
Date of Meeting    June 1, 2010
DATE:   April 29, 2010 
TO:     Tay Yoshitani, Chief Executive Officer
FROM:   Michael Burke, Senior Manager, Container Leasing and Operations
Catherine Chu, Capital Construction Project Manager 
SUBJECT: Terminal 5, Terminal 18, and Terminal 105 Street Vacations
Amount of This Request: $1,500,000   Source of Funds: General Fund
Total Project Cost: $4,000,000 
ACTION REQUESTED:
Request authorization for the Chief Executive Officer to execute consultant services
contracts or services directives, advertise and award small works contracts, and employ
Port staff, for a total of up to $1,500,000 for street vacations at Terminals 5, 18 and 105.
The total project cost is estimated at $4,000,000.
SYNOPSIS:
Funds to secure street vacations at Terminals 5 (T-5), T-18, and T-105 were authorized
by Commission during the terminal expansion projects in the 1990's and early 2000's as
part of project-wide authorizations. This request brings authorizations for street vacations
current and is intended to improve transparency and financial controls by bringing the
dollar amount of the authorizations in line with the remaining work to be done. The
budget of $1,500,000 pays for investigations, negotiations, tax payments, and minor
construction. The additional $2,500,000 (not included in this authorization) may be
needed for major construction and/or settlement costs pending the outcome of
negotiations. The Port continues to work cooperatively with the City of Seattle
departments and Mayor's office to resolve remaining issues.
PROJECT DESCRIPTION AND JUSTIFICATION: 
In the last two decades, the Port of Seattle (Port) grew its container terminal capacity by
more than 200 acres. To accomplish the expansions, the Port needed to acquire
significant additional land, including some public rights-of-way. Street vacation in the
City of Seattle is a process where a property owner adjacent to a public right-of-way can

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
April 29, 2010
Page 2 of 5
petition the City Council to acquire, or vacate, the property. It requires City Council
review and approval, and must meet specific public benefit requirements.
The Terminal 5 street vacations were the result of the T-5 expansion project in the
1990's. The Port invested nearly $300,000,000 to expand T-5 from 83 acres to 190 acres,
including approximately 16 acres of street vacation area. The street vacation petitions
were conditionally approved by the City in 1995. The Port has satisfied the majority of
the numerous conditions, including completion of 11.3 acres of public shoreline access
and open space improvements at Jack Block Park and along Harbor Avenue and
Southwest Spokane Street. The remaining work at T-5 to comply with the conditions of
the street vacation approval include finalizing a property exchange between Burlington
Northern Santa Fe (BNSF) and the Port; negotiate and execute easements between the
Port and the City; resolve any dispute regarding construction completion and payments;
ensure City Council final approval of street vacations; and properly complete all real
estate transactions.
The Terminal 18 Street Vacations were the result of the T-18 expansion project in the late
1990's, when the Port expanded T-18 from 110 acres to 200 acres, and needed to vacate
nearly 30 acres of public right-of-way. The Port has since completed 15 out of 16
conditions for the street vacations, including reconstruction of significant public
infrastructure on Harbor Island. Remaining work includes completion of utility
ownership transactions, easements, and settlement of any dispute regarding construction
completion.
Street vacation actions at Terminal 105 were the result of relocating displaced land
owners from T-5 and T-18 expansion areas to T-105. The vacation includes
approximately 4 acres of public right-of-way, and once vacated, the street vacation areas
will go to the relocated land owners per agreements they have with the Port. To satisfy
the conditions to vacate the streets, among many other things, the Port completed
improvements at public shoreline access sites at T-105 and T-107, and improved
pedestrian/bike trails in the area. The Port has yet to complete agreements with the
private land owners, and complete easement agreements with the City of Seattle. Once
the street vacations at T-105 is complete, the vacation areas will go to private land
owners adjacent to the streets per contractual agreements, and the Port will have an
opportunity to recover substantial costs, in the order of $500,000.
The funds being requested in this memo will also be used to close the books on a
transaction involving the Kinder Morgan pipeline relocation on Harbor Island. The Port
and Kinder Morgan negotiated the relocation of a petroleum pipeline from the middle of
Terminal 18 to the north end of Harbor Island about seven years ago. As part of the
consideration for the overall transaction, the Port successfully obtained Kinder Morgan's
quitclaim deed for the portion of 11th Avenue SW that Kinder Morgan would be entitled
to receive when the City finally vacates 11th Avenue. The seller in real estate
conveyances typically pays what is known as the real estate excise tax based on the value
of the property. Kinder Morgan signed the conveyance deed for the parcel along with
executing the new easements for its pipeline (the deed was actually an exhibit to one of

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
April 29, 2010
Page 3 of 5
the agreements). Because of the swiftness of this closing, the parties never discussed the
excise tax arrangements. Staff estimates that the amount of the taxes to be paid is less
than $15,000. Because of the time that has passed on this transaction and the need for the
Port to record the deed with King County (the Port needs to show the recorder's office an
affidavit demonstrating that the tax was paid), staff recommends that funds from this
authorization be used to cover this cost.
The Port is also pursuing street vacations at Terminal 30 Alaskan Way South. Staff plans
to return to the Commission at a later date for separate funding authorization when that
project is ready to move forward.
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work:
The project scope of work includes negotiation of real estate transactions, easements, and
settlements with City of Seattle and private land owners at T-5, T-18, and T-105, in order
to finalize street vacations. It includes substantial staff time and outside consultant
services to provide survey, real estate, legal, design, project management, environmental,
and other technical services, small works projects, overhead, tax, fees, and other
administrative costs for work going forward. It does not include costs to date that were
previously authorized under project-wide authorizations. Once this request is authorized,
we will stop charges to any of the previously authorized budgets and use this current
authorization. Also, this request does not include future project specific settlement, and/or
major construction costs. Our plan is to ask for additional authorizations when the
settlements and/or major construction projects are ready for approval.
Schedule:
Street vacations for Terminals 18 and 105 are expected to be complete by the end of this
year or early 2011. The T-5 street vacation is expected to be complete in 2011 or 2012.
Port staff will endeavor to complete these street vacations as soon as possible but these
completion dates are estimates only and are dependent on negotiations with the City and
other property owners.
Budget/Authorization Summary 
T-105                       $50,000
T-18                       $400,000
T-5                       $1,050,000 (for up to 2 years of
negotiations)
Previous Authorizations              Part of project-wide authorizations*

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
April 29, 2010
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Current request for Authorization        $1,500,000 
Total Authorizations, including this request  $1,500,000 
Future possible commitment yet to be     $2,500,000, pending negotiations
authorized
*Street vacations for T-5, T-18, and T-105 were authorized within project-wide
authorizations under the expansion projects, and the costs were not tracked separately.
Source of Funds:
Funds were included for street vacations and related necessary construction under
multiple Committed CIP's in the 2010 Plan of Finance.
CIP #          Description            2010-2014 Amount
C102858        T-5 Completion         $ 2,868,000
C102874        T-18 Complete Const. Issues   $ 824,000
C102875        T-18 Complete RE Issues     $ 120,000
Expense         T-105 Street Vacations      2010 expense budget
The projects will be funded from the General Fund.
Financial Analysis Summary 
CIP Category     Revenue/Capacity Growth
Project Type      Business Expansion (original expansion of Container Terminals)
Risk adjusted     N/A
Discount rate
Key risk factors    Street vacation open issues cannot be resolved in a timely and cost
effective manner
Agreements cannot be reached on a timely basis with outside
parties.
Key personnel at the Port who are in the best position to resolve
open issues are no longer available.
If street vacations cannot be resolved, the Port may be subject to
street use fees from the City at Terminals 5, 18 and 105.
City is currently withholding review on Alaskan Way street
vacation until all past vacations are complete.
Project cost for     $1,500,000 plus other major construction costs and/or settlement costs
analysis         in the order of $2,500,000 pending negotiations.
Business Unit (BU)  Container Operations

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer
April 29, 2010
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Effect on business   No incremental revenue will result from resolution of the street
performance     vacation issues as the Port is already receiving rent from tenants who
are leasing the vacated street land. However, as described above, in the
case of T-105 there is an opportunity to receive a fee from a third party,
in the amount of up to $500,000 (to be negotiated), for securing the
street vacation on its behalf.
In general, the resulting asset from completion of the street vacation
will be land. Because land is not depreciated, there is minimal or no
impact on NOI before or after depreciation.
IRR/NPV      No incremental revenue will result from resolution of the street
vacation issues. Accordingly, amounts expended will be an additional
investment in the container terminal which reduces the total return on
the terminals.
ECONOMIC IMPACTS AND BUSINESS PLAN OBJECTIVES: 
This project supports growth of container terminals. The economic impact of the
expansion projects was significant. For example, T-5 expansion project created an
estimated 1,000 direct jobs, $220,000,000 new annual business revenue, and $4,700,000
new annual taxes to the regional economy. T-18 expansion project generated an
estimated 1,300 new direct jobs, $330,000,000 new annual business revenue, and
$14,000,000 new annual taxes.
ENVIRONMENTAL SUSTAINABILITY AND COMMUNITY BENEFITS: 
Street vacations need to pass the public benefit reviews by the City of Seattle before the
Council would approve. As discussed earlier under Project Description and Justification,
in order to complete the street vacations, the Port invested tens of millions of dollars in
public infrastructure, public shoreline access parks, and environmental remediation and
habitat restoration projects.
PREVIOUS COMMISSION ACTION 
On February 9, 2010, staff briefed the Commission regarding background and status of
street vacations.