8j. Presentation

Adoption of Resolution No. 3803

Item No.                 8j supp
Date of Meeting           May 24, 2022
Surplus and Sale of Terminal 115 Non-Alliance Portion of Property to King
County as a Site for Building a Combined Sewer Overflow (CSO) Facility

Subject Property
(blue-shaded area)

Parcel Info:
Subject Property is the blue-shaded area. Parcel
Number is #536720-2505.
Location: Between 2nd Ave SW and SW Michigan.
Size: 58,121 SF
Sale price: $2.2 million
Current Tenant
American Best Trucking is on a month-to-month lease.


King County is currently under a 2013 Consent Decree with the Environmental
Protection Agency (EPA).
The Consent Decree requires King County to complete its CSO Control Plan by 2030.
This plan contains a list of "Protecting Our Waters" projects with strict timelines.
The CSO (combined sewer overflow) control project involving construction of a new CSO facility located at
SW. Michigan St./ Terminal 115 is required to meet the critical milestone of "construction completion by
December 31, 2025 ".
After performing a rigorous site selection process, and based on the preliminary
designs, scope of work and time needed in constructing of this CSO facility, King
County has approached the Port and asked to acquire this property to ensure
meeting the goal and strict timelines set by the Federal Consent Degree.
If King County cannot purchase this property in an amicable manner from the Port,
they will likely use eminent domain to acquire the property.


KC Site Selection
King County completed an extensive site selection process in 2017 that
included the careful evaluation of 17 sites.
The result of this process identified the T115 Parcel A property as the ideal site for
building a storage tank as part of a CSO control plan, because
the majority of the control volume required is at the W. Michigan St. Regulator Station Overflow,
which is directly adjacent to the site and the West Michigan outfall, thus limiting conveyance
needs while reducing costs and traffic and property impacts.
The T115 Parcel A site is also the ideal shape and size, allows gravity flow into the tank and
minimal conveyance.
Additionally, it is a large site sufficient for the tank size needed with room for on-site landscaping
and stormwater treatment and allows for adequate access to perform routine maintenance.


Environmental & Health Benefits
The proposed Combined Sewer Overflow (CSO) storage tank at the T115
Parcel A location is to control the number of sewage spills from two
outfalls ("West Michigan" and "T115") directly into the Duwamish river,
to fewer than one occurrence per year.
It will reduce uncontrolled sewage spills, thus creating tremendous
water quality and health benefits through prevention of debris
(including plastics), biodegradable solids, other pollutants and bacteria
from entering the Duwamish River.


Staff Recommendation
Sell at market value to King County.
Cost Estimate: $0. No cost to Port.
1) Sell to King County at fair market value. Net sale revenue can fund other Port initiatives and projects that are critical to
Port growth and Century Agenda goals.
2)Cooperate and assist King County, as a public entity, in fulfilling its goals and milestones set by the Federal Consent
Decree, thus indirectly contributing to and facilitating the construction of CSO facility that reduces sewer overflow
pollution while also benefiting the local communities that the Port serves.
3)Surplus the subject property that's not deemed important to the Port's future business growth strategies or aligned
with overall Century Agenda missions and visions. A parcel this small in this location has limited development
1)Loss of a yard lease revenue generating property ($105,000/year) with little maintenance & repair cost.
2)Loss of a property for potential future development.


Summary/Next Steps
Staff recommendation is to sell small property adjacent to Terminal 115
to King County to support a Combined Sewer Overflow (CSO) facility
that will help reduce uncontrolled sewer overflows into Duwamish River.
Size: 58,121 square feet (approximately 1.3 acres)
Sale Price: $2.2 Million
Sale of property requires two public hearings (2nd hearing scheduled for
May 24)
Due diligence period is two years from PSA execution date (TBD).


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