PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      6a 
ACTION ITEM             Date of Meeting    July 10, 2012 

DATE:    June 18, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    Bob Duffner, Senior Manager, Aviation Environmental Programs 
Allan Royal, Manager, Real Estate Development 
SUBJECT:  Second Reading and Final Passage of Resolution No. 3664, First Amendment to
the 1998 Interlocal Agreement with the City of Auburn
Amount of This Request:  $0            Source of Funds: Not Applicable 
Est. State and Local Taxes: Not Applicable     Est. Construction Jobs Generated: None 
Total Project Cost: Not Applicable 
ACTION REQUESTED:
Request Second Reading and Final Passage of Resolution No. 3664: A Resolution of the Port
Commission of the Port of Seattle approving the First Amendment of the Interlocal Agreement
between the City of Auburn and the Port of Seattle to transfer approximately 55 acre feet of
surplus floodplain storage credit to the City of Auburn and authorizing conveyance of a
permanent easement to the City of Auburn. There is no funding associated with this
Amendment. 
SYNOPSIS:
Environmental permits for construction of the Third Runway and other 1997 Master Plan Update
projects required the Port construct the 67-acre Auburn Wetland Mitigation Site (Mitigation Site) 
to mitigate for project-related impacts (Exhibit A). In support of site construction, the Port and
the City entered into an interlocal agreement on March 18, 1998, under which the City agreed to
consider and act on zoning changes and permits necessary to construct the wetlands. In return, 
the Port agreed to support the City's infrastructure improvements and make financial
contributions. 
The 1998 Agreement also stipulated that a portion of the Mitigation Site be lowered in elevation
and connected to the Green River 100-year floodplain. The Mitigation Site construction was
completed in 2004 at the lower elevation and with the floodplain connection. As a result, the
Mitigation Site created approximately 66.2 acre-feet of new flood storage volume capacity.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 18, 2012 
Page 2 of 5 

In July 2009, the Port was contacted by the City requesting formal recognition of the right to
retain and reassign the flood storage capacity for new development. This proposed Amendment
acknowledges the Port's right to utilize 17 percent (approximately 11.2 acre-feet) of the flood
storage capacity to fill portions of the floodplain on Port-owned property and acknowledges the
City's right to control the use of the remaining flood storage capacity in support of development
within the North East Auburn Special Planning Area. 
BACKGROUND: 
Following execution of the 1998 Agreement and before construction of the Mitigation Site, the
Port and Auburn identified a number of unresolved items primarily associated with
transportation network options within the City's Northeast Auburn Special Planning Area. In
addition, the City expressed interest in documenting its desire to control use of the created flood
storage capacity. Both parties intended to resolve these issues before construction of the
Mitigation Site in an amendment to the Agreement.
In October and November of 2003, letters exchanged between the Port and the City concluded
that the terms of the 1998 Agreement would be implemented without amendment in order to
avoid a delay to the Port's Mitigation Site construction. The Port's November 13, 2003, letter to
Auburn outlined the Port's position on the transportation issues as well as control over the
created flood storage capacity as follows:
The Port would not seek reimbursement for constructing the flood storage capacity
created by the Mitigation Site. 
The Port recognized Auburn's intent to control use of and allocate the created flood
storage capacity. 
The Port would retain an allocation of the flood storage capacity credit for undeveloped
Port-owned property located within the Northeast Auburn Special Planning Area. 
The transportation (right-of-way) issues were eventually resolved through a 2007 Real Estate
Exchange Agreement and a 2008 Administrative Memorandum of Agreement.
In July 2009, the Port was contacted by City staff requesting formal recognition of the City's
right to control use of the flood storage capacity created by the Port's Mitigation Site. Following
a review of the Agreement and earlier communications, Port staff confirmed the Port and City's
earlier intentions and completed an analysis of an equitable flood storage credit allocation that
could benefit an adjacent undeveloped Port-owned property.
Flood Storage Credit Allocation to the Port 
The Port property subject to potential flood storage capacity credit allocation is a 39-acre parcel
that adjoins the Mitigation Site and is located directly south of South 277th Street and
approximately 1,500 feet east of Auburn Way North. The Port purchased this property in 2002 
to provide construction access to the Mitigation Site. A small portion was also used to construct

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 18, 2012 
Page 3 of 5 
a flood water conveyance channel that connects the Mitigation Site with the Green River
floodplain located north of South 277th Street. The majority of the property is encumbered with
wetlands and associated buffers that limit development. However, the northernmost 4.9 acres of
the parcel along South 277th Street are considered developable and its value would be enhanced
if filled above the 100-year floodplain elevation. Based on available topography, staff
determined that approximately 11.2 acre-feet of the fill would be required to bring the 4.9 acre
surface above the historic 100-year floodplain elevation of 45 feet. The Port would then need
11.2 acres of flood storage capacity to develop this land, and is thus seeking 11.2 acres of flood
storage volume credit allocation for future development.
Value of Flood Storage Credit Available to the City 
Resolution No. 3605, as amended, requires an appraisal for the proposed sale of real property
interest. In compliance with this resolution, an attempt was made to appraise the value of the
flood storage credit to be made available to the City. The estimated value of the City's 55 acrefeet
of credit is $1,493,680.00 based upon the extrapolation from the appraised value of the
credits as applied to the Port property. The appraisal was completed by Christopher S. Eldred,
MAI, SR/WA under contract to the Port. The value of the flood storage credit for the 4.9 acres
of developable Port property was estimated to be $285,000. These values are subject to securing
additional approvals and resolution of the many issues related to actually utilizing the flood
storage credits including:
The City successfully obtaining approval of a floodplain map adjustment by Federal
Emergency Management Agency (FEMA). 
The City identifying sites within this floodplain that are suitable for development. 
Securing permits, including floodplain permits, and associated habitat studies under the
Engangered Species Act for placement of fill. 
PROJECT JUSTIFICATION: 
The Amendment will confirm the Port's previously communicated intent to retain an allocation
of the flood storage capacity credit for undeveloped Port property located within the Northeast
Auburn Special Planning Area and to recognize the City's right to control use of the remaining
credits. 
Project Objectives: 
To affirm the Port's right to retain a portion of the flood storage credit and to acknowledge the
City of Auburn's right to control use of the balance of the flood storage credit.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 18, 2012 
Page 4 of 5 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
Declare surplus the flood storage capacity. 
Sign the First Amendment to the Agreement. 
Schedule: 
Fully executed agreement by the end of July 2012; requires Port Commission approval. The City
is concurrently seeking Auburn City Council approval.
FINANCIAL IMPLICATIONS: 
There are no budget or funding issues related to this request. 
Financial Analysis Summary:
The First Amendment to the Agreement will potentially create a more valuable Port-owned
property in Auburn that may be either sold or developed.
The appraisal noted a significant benefit for retaining the portion of flood storage credit for the
Port's property, but there are still significant issues to be resolved before a development analysis
could be conducted. This is an essential first step in this process. 
STRATEGIC OBJECTIVES: 
This action will create the potential for development of new business and economic opportunities
for the region and the Port. 
ENVIRONMENTAL SUSTAINABILITY: 
This action is the next step in helping to prepare a site for an environmentally friendly
development that will not adversely affect the Port's mitigation site.
BUSINESS PLAN OBJECTIVES: 
Memorializing the allocation of the flood storage capacity issues is the first step in creating a site
that is marketable for development or sale. It may ultimately create additional non-airline
revenue for the Port.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
June 18, 2012 
Page 5 of 5 
TRIPLE BOTTOM LINE: 
This action will create jobs in construction and on-going business operations and will ensure
environmentally compatiable development in addition to providing additional revenue to the City
of Auburn for their vision of improvements in the city for their citizens. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Do not enter into the First Amendment to the Agreement. This alternative would hamper the
Port's efforts to market or develop the available Auburn property and would hamper the City
of Auburn's efforts to develop other properties in their city. This is not the recommended
alternative. 
Adopt Resolution No. 3664 and execute the First Amendment to the Agreement. This
alternative would allow the Port to continue to work on making this parcel of land
developable and would facilitate the City of Auburn's effort to develop other property in the
city for the benefit of their citizens. This is the recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Resolution No. 3664 
Map Exhibit A 
First Amendment to the Interlocal Agreement 
Original 1998 Interlocal Agreement 
November 13, 2003, letter from the Port to Paul Krauss, City of Auburn Director of Planning
and Community Development 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
First reading of Resolution No. 3259 on January 13, 1998. Second Reading and final passage
of on February 10, 1998. 
Interlocal Agreement executed on March 18, 1998, by Commission President. 
First Reading and Public Hearing of Resolution 3664 on June 26, 2012.