10a. Memo

Public hearing and Adoption of Resolution No. 3802

AGENDA MEMORANDUM                        Item No.          10a 
ACTION ITEM                            Date of Meeting       May 24, 2022 
DATE:     March 29, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Jeff Moken, Interim Director Aviation and Business Properties 
Steve Kennard, Property Manager 
SUBJECT:  Public hearing and Adoption of Resolution No. 3802: surplus of remnant parcels 
Public hearing and Adoption of Resolution No. 3802: A Resolution of the Port of Seattle to amend Unit
18 of the Comprehensive Scheme of Harbor Improvements of the Port of Seattle by: (i) declaring certain
real property surplus and no longer needed for Port district purposes; (ii) deleting said property,
following a public hearing in accordance with law, from Unit 18 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 Bridge Point SeaTac 300, LLC. 

The proposed sale of real property to Bridge Point SeaTac 300, LLC ("Bridge") consists of remnants of
four parcels comprising approximately one acre (the "Remnant Parcels"), together with certain street
right of way areas adjacent thereto (the "Right of Way Areas"), all located in the City of SeaTac, King
County (collectively, the "Property").This is a briefing for a surplus action and a request for conveyance
of the Property by the Port to Bridge.
The Remnant Parcels were acquired by the Port as part of a larger acquisition in the 1970's using FAA
funds to mitigate noise impacts on residential property. Most of the acquired properties were conveyed
to WSDOT in 2009 for development of the SR 509 extension. WSDOT declined to purchase Port property
with parcel boundaries intact and instead purchased only the minimum land area needed for
constructing SR 509 thereby creating the Remnant Parcels. 
In connection with development of its property, Bridge has sought to quiet title to certain adjacent street
right of way areas adjacent to its development site property, including bringing a quiet title action in King
County Superior Court, naming the Port has defendant, for the Right of Way Areas.
In addition, WSDOT and Bridge are working on a grading plan to install an engineered slope to resolve
elevation differences between the height of the future SR 509 roadbed and Bridge's development site.

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. _10a__                             Page 2 of 3 
May 24, 2022 
The Remnant Parcels are required for the siting of this slope. The Port has not identified an aviation
related use for the Remnant Parcels. 
To address Bridge's need for the Remnant Parcels and to resolve the quiet title action, Bridge and the
Port propose to enter into a transaction under which Bridge will purchase from the Port, for appraised
market value, the Property, including the Port's interest in the Right of Way Areas. 
In connection with this proposed transaction, Port and Bridge are currently negotiating a purchase and
sale agreement, pursuant to which Bridge would purchase the Property for appraised fair market value,
and would also grant the Port avigation easements on Bridge Point's development site property,
contingent upon the parties obtaining a stipulated order of judgment from the court to legally establish
Bridge and the Port's respective ownership of portions of the Right of Way Areas and to finally resolve
the Port's involvement in the quiet title action. Staff seeks Commission authorization to complete this
proposed purchase and sale transaction, including final negotiation and execution of the purchase and
sale agreement between the Port and Bridge. 
In order to complete the proposed purchase and sale of the Property, authorization is requested for the
Commission to declare, by resolution, that the Property is surplus and no longer needed for Port
purposes, and also authorize completion of the sale of the Property to Bridge.
The May 10, 2022 Commission Meeting consists of the first reading of Resolution 3802.  Before the
Commission takes final action on Resolution 3802, the Port must conduct a public hearing with published
notice as required by law. Accordingly, as part of the May 24, 2022 Commission Meeting, for the second
reading of Resolution 3802, the Port will conduct a public hearing, with public notice as required by law,
to consider whether the Property should be declared no longer needed for port district purposes and
surplus to Port needs and the proposed sale of the Property to Bridge. 
Disposal of the Property will reduce the Port's liability and maintenance costs. The Remnant Parcels are
landlocked, are a maintenance burden to the Port, and do not support airport operations. 
Disposal of the Remnant Parcels will support economic development in the City of SeaTac. Bridge has
purchased an unused, fire-damaged school building site adjacent to the Remnant Parcels along with a
number of smaller properties and plans to develop a commercial warehouse property on this
assemblage. The Bridge project is supported by the City of SeaTac and is expected to increase warehouse
and logistics capacity near the airport and reduce unauthorized occupancy of vacant land near Port
Disposal of the Remnant Parcels supports the construction of SR 509. WSDOT has identified access to
the Remnant Parcels as a requirement for the installation of permanent slope changes for both the SR
509 project and the Bridge's adjacent warehouse development. 
As part of the proposed transaction, the Port will receive avigation easements on the Property; will
obtain additional avigation easements on other properties in the Bridge development assemblage; and
Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. _10a__                             Page 3 of 3 
May 24, 2022 
will resolve the quiet title action and ownership of the Right of Way Areas. The Port has obtained an
appraisal of the Property and agrees that the valuation is consistent with fair market value.
Scope of Work 
Execute conveyance documents. 
Q2 2022 
The Port's alternative is to refuse to sell the Parcels. In this scenario the Port will have a perpetual
obligation to maintain vacant land that is not suitable for airport use and the Port will have to take legal
action to obtain access to the Parcels. 
The Port will receive market value for the property sold. Funds received through this transaction are
anticipated to be reinvested back into the Ports noise mitigation programs. 
Area                 Square Footage*    Valuation** 
Parcel# 768620-0620                        21,400        $388,512 
Parcel# 768620-0560                         2,700         $49,018 
Parcel# 768620-0980                        10,700        $194,256 
Parcel# 768620-1520                        17,900        $324,970 
Total                                               52,700         $956,756 
* Square footages include portions of adjacent abandoned City of SeaTac
rights of way and are not field verified. 
** All values have been reviewed and approved by Port appraiser and have
not been offset by the cost to acquire avigation easements from the buyer. 
(1)      Property Surplus Resolution No. 3802 
(2)      Presentation slides 
Resolution 3617, June 9, 2009 WSDOT Land Swap 
Commission Item 6f, June 2, 2009 WSDOT Land Swap 

Template revised June 27, 2019 (Diversity in Contracting).

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