8g. Memo

Sale of Two Surplus Parcels

COMMISSION 
AGENDA MEMORANDUM                        Item No.          8g 
ACTION ITEM                            Date of Meeting     November 8, 2022 

DATE :     October 26, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Daniel Alhadeff, Real Estate Development Manager 
Kyra Lise, Director Real Estate Development 
SUBJECT:  Echo 4 South, Sale of Two Surplus Parcels 
Amount of this request:                       $0 
Total estimated project cost:                   $0 

ACTION REQUESTED 
Request Commission authorization for the Executive Director to take all necessary steps and
execute all documents for the sale of approximately two acres of real property located in the City
of SeaTac to Insite Property Group, LLC. 
EXECUTIVE SUMMARY 
The property in question is made up of two parcels totaling 2.02 acres, the (“Parcels”).  The
Parcels are located at the intersection of South 204th Street and 28th Avenue South, just west of
International Boulevard in the City of SeaTac. The Parcels were originally purchased using FAA
funds for noise mitigation in December 2007. 
After an evaluation by Port staff, discussed below, it was determined that the Parcels could not
be utilized for Port operations. The Parcels were made surplus on April 12, 2022 by Commission
Resolution 3800. 
Prospective buyer, Insite Property Group (“IPG”), has an adjacent property under contract and
approached the Port with an offer to purchase the Parcels.  The Parcels would be used for
additional parking, drive and circulation aisles, and outdoor storage areas related to the self
storage facility site plan for which Insite is currently seeking permit approvals through the city of
SeaTac.
The Parcels are located directly adjacent to the future Sound Transit light rail guideway, south of
the Angle Lake Station. This site is currently vacant. 

Template revised January 10, 2019.

             COMMISSION AGENDA – Action Item No. 8g                                   Page 2 of 5 
Meeting Date: November 8, 2022 
The Parcels were appraised by Kidder Mathews, using a highest and best use standard. IPG 
agreed to the appraised value as purchase price for Parcels-- $2,463,000.  A sales agreement
was negotiated between the parties based on this price.  We are now requesting authorization
from Commission to permit the Executive Director to execute the Purchase and Sale Agreement
(PSA). 
The PSA includes an avigation easement reserving the Port’s rights to operate the airport without
obstruction and complaint. Additionally, the PSA warrants that IPG has agreed to release any
environmental claims against the Port upon closing and will ultimately develop the Parcels as a
high quality, institutional grade, self-storage facility serving the storage needs of the City of
SeaTac community. 
The required FAA Part 163 Release of Interest was sought and received by the Port in June 2022. 
Development analyses show no financially viable scenarios for the Port to develop the Parcels in
alignment with the Port’s 2016 and 2020 Real Estate Strategic Plans. That evaluation noted the
limited accessibility of the Parcels render them infeasible for light industrial development
particularly because of site geometry, adjacent ROW constraints, and steep slopes. 
IPG is a State of California LLC, founded in 2019, by real estate development veterans; Keith
Wetzel, Zack Linford, Tony Park and Paul Brown.  Insite is a vertically integrated self-storage
developer, operator, and manager focused on leveraging technology to deliver best performing
assets across institutional and emerging markets.  Based in Torrance, CA and led by a diverse
executive team, they have developed similar facilities all over the United States, including
facilities in Tacoma, Seattle and Everett. 
IPG is under contract with a private property owner of an adjacent non-Port parcel to the north. 
The Parcels are planned for consolidation into IPG’s development program. 
IPG is currently in conversations with the City of SeaTac regarding rezoning the property to meet
development requirements. Zoning  applications  are  prepared  and  awaiting  final  Port 
Commission approval so that Port staff may provide signatures on the rezone applications. 
A Conditional Use Permit hearing is set for November 17th for approval of IPG’s planned
construction on the adjacent lot, IPG expects to close on their purchase in early January 2023. 
Port staff is satisfied with IPG as a qualified buyer. This request is for approval of the conveyance
of the Parcels to IPG. The conveyance will be executed upon Commission approval and after the
execution of the prior approved conveyance in fee and conveyance of permanent easements to
Sound Transit. 


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

             COMMISSION AGENDA – Action Item No. 8g                                   Page 3 of 5 
Meeting Date: November 8, 2022 
JUSTIFICATION 
The Parcels were acquired for noise mitigation and their disposal will include an avigation
easement reserving the Port’s rights to operate the airport without obstruction and complaint.
The Port has procured and reviewed an appraisal and agrees that the valuation is consistent with
fair market value.
The 2020 Real Estate Strategic Plan directed port staff to sell remnant port parcels if the property
didn’t adhere to criteria derived from the Century Agenda. The Port determined through this
process that the parcels are not needed for development. 
Insite will abide by the City of SeaTac’s tree-replacement regulations in the commercial zone. If
a significant tree was identified to be retained on approved plans, but removed during
construction, then three trees must be planted in its place. 
Diversity in Contracting 
Not Applicable as this is a property sale. 
DETAILS 
Not Applicable 
Scope of Work 
Execute conveyance documents. 
Schedule 
Q4 2022 
Activity 
First Reading and Public Hearing of            2022 Quarter 1 
Resolution No. 3800 to surplus two Port
parcels near S 204th St and 28th Ave S and
convey permanent easements 
Adoption of Resolution No. 3800 to Convey    2022 Quarter 2 
Property to Insite Property Group and
Permanent Easements to Sound Transit 




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

             COMMISSION AGENDA – Action Item No. 8g                                   Page 4 of 5 
Meeting Date: November 8, 2022 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1 – Do Nothing – Retain ownership of the Parcels. 
Cost Implications: none 
Pros: 
(1) Provide temporary laydown area for local construction crews 
(2) Could provide some on-site open storage 
Cons: 
(1) Missed opportunity to remove unneeded property 
(2) Missed opportunity for selling in a high demand market 
(3) Missed opportunity to engage with buyer that is ready to purchase a property that we
don’t need. 
(4) Missed opportunity to maximize highest and best use as developer is buying adjacent
parcel. 
This is not the recommended alternative. 

Alternative 2 – Sell the Parcels to the adjacent property developer 
Cost Implications: none 
Pros: 
(1) Preserves highest and best use as it is sold to the adjacent property
owner/developer which maximizes footprint value. 
(2) Provides revenue from sale of a property that is otherwise non usable for Port
purposes 
Cons: 
(1) Requires Port to sell existing property in industrial zone 
(2) Requires reduction of existing area available for on-site open storage 
(3) Requires reduction of existing land available for lay down area for various port
projects in the vicinity 
This is the recommended alternative. 





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


COMMISSION AGENDA – Action Item No. 8g                                   Page 5 of 5 
Meeting Date: November 8, 2022 

FINANCIAL IMPLICATIONS 
The Port will receive market value for the property sold. 
North Parcel                       South Parcel 

As is value                           = $1,480,000                        = 1,310,000 
Less Fee Acquisition to Sound  ($74,000)                         ($58,000) 
Transit 
Less  Guideway  Easement  to  ($11,000)                         ($2000) 
Sound Transit 
Less Sewer Easement             ($14,000)                        ($36,000) 
Less Damage to Remainder        ($70,000)                        ($62,000) 

Adjusted Value                   = $1,311,000                      = $1,152,000 
Total Site Value                     = $2,463,000 
ATTACHMENTS TO THIS REQUEST 
(1)   Resolution No. 3800 … 
(2)   Purchase and Sale Agreement 
(3)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
April 12, 2022 – Second Reading of “28th Ave South Parcels Surplus, Sale and Permanent
Easements 
March 22, 2022 – The Commission authorized Surplus Resolution 3800 “Notice to Property
Surplus and Easements to Sound Transit” 





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



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