8e. Memo

Permanent Conservation Easement to the City of Auburn

AGENDA MEMORANDUM                        Item No.          8e 
ACTION ITEM                            Date of Meeting      March 22, 2022 

DATE:     February 18, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Jeff Moken, Interim Director of Aviation Business and Properties 
Steve Kennard, Property Manager 
SUBJECT:  Request for conveyance of permanent conservation easement on Port property to 
the City of Auburn 
Request Commission authorization for the Executive Director  to execute a permanent
conservation easement to the City of Auburn that will convey two-thirds of an acre of Port
property for a third-party stream buffer mitigation site. 
The Port is receiving fair market value based on appraisal for the conservation easement. The
function of the easement is consistent with the Port's intended use of the property. The Port
benefits from cooperating with local municipalities including the City of Auburn, an important
partner for managing and planning the Port's ongoing use of its holdings. Execution of the
conservation easement enables economic and community development. 
In 1998, the Port purchased approximately 100 acres in the City of Auburn to use for wetlands
mitigation required for the construction of the 3rd runway. The Port used the eastern 65 acres for 
the required mitigation and holds the remaining 35 acres west of the mitigation site for potential
use as stream and wetland mitigation or a mitigation bank available to other Port projects. 
The Inland Group, a multifamily residential real estate developer, with large real estate holdings
to the west of the Port's property, is realigning a City road (I Street) at the City's request to extend 
access to Inland's new development currently in the entitlement phase, and planned to be built
to the west of the Port's 35 acres. I Street runs with a surface water conveyance known as
Watercourse K, a portion of which is on the Port's property. The City of Auburn and the US Army
Corps of Engineers (USACE) require Inland to purchase from the Port a conservation easement
for stream buffer mitigation enabling Inland to proceed with the planned road modifications. The 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 8e                                  Page 2 of 2 
Meeting Date: March 22, 2022 
proposed easement area is about two-thirds of an acre (within the Port's 35 acres) and runs along
a portion of the Port's west boundary from 45th St NE about 450 feet north and 60 feet wide. The 
easement area will be planted with native vegetation, monitored, and dedicated to the City of
Scope of Work 
Execution of permanent conservation easement. 
Q2 2022 
Cost/Value Breakdown 
Sale of permanent easement and reimbursement of appraisal costs will yield to the Port
approximately $140,000, which is fair market value based on appraisal. 
The alternative to granting the conservation easement is for the Port to refuse to grant it, with 
the expectation that the USACE, the City, and Inland can work out another approach to extend
the public right of way. While an alternative approach is possible, it is not the preferred approach
for the City. The City is an important partner for managing and planning the Port's ongoing use
of its holdings. The Port is also a member of the community and as such is responsive to the
needs of the community to the extent practicable. The extension of a public right of way as
designed by Inland is, according to the City, in the interest of the community. 
The financial implications of using a portion of the Port's property for a conservation easement 
was carefully considered in the Port's appraisal review. The easement area valuation considers 
the mitigation credits that would have been created, so the expected value of the Port's
investment in the mitigation bank is retained. The easement area represents less than 2% of the
available 35 acre mitigation bank land, which remains available for future mitigation or a
mitigation bank. 
Future Revenues and Expenses (Total cost of ownership) 
There will be no future revenues or costs from the sale of this conservation easement. 
(1) Presentation 
August 28, 2007  With Resolution 3584 The Commission authorized a property exchange
agreement in support of the City's extension of I Street. 

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

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