PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA
Item No.
6c
Date of Meeting
June 23, 2009
DATE: June 16, 2009
TO: Tay Yoshitani, Chief Executive Officer
FROM: James R. Schone, Director, Aviation Business Development
Jude P. Barrett, Manager, Acquisitions and Relocation
SUBJECT: Authorization for acquisition by condemnation of the Steven Desimone property.
(Resolution No, 3622, First Reading)
ACTION REQUESTED: Resolution No. 3622, Second Reading and Final Passage, providing
acquisition by purchase and/or condemnation of certain real property located at 14635 Des
Moines Memorial Drive South, (King County Tax ID Number 202304-9091), in the City of
Burien, Washington.
BACKGROUND/SYNOPSIS: The Environmental Impact Statement (EIS) for the Third
Runway Master Plan update and the latest Federal Aviation Regulation (FAR) Part 150 Noise
and Land Use Compatibility Study called for residential acquisition in Burien’s Northeast
Redevelopment Area (NERA) due to airport noise and operational impacts associated with the
Third Runway (see Exhibit A). Port staff, in cooperation with Burien planning staff and the
Federal Aviation Administration (FAA), developed an acquisition boundary for the North Burien
Approach Transition Zone (ATZ) buy-out area based on the following criteria:
• Residential parcels within the 65 decibel Day Night Limit noise contour.
• Residential parcels within the North ATZ.
• Residential parcels within natural boundaries that preserve and support neighborhood
integrity, including streets and physical boundaries, were also taken into consideration.
72 residential parcels (Parcels) met the acquisition/relocation criteria and were identified as
eligible for federal funds. This residential property is included within the boundary of the
Parcels. The Port’s inability to come to an agreement with the owner on Fair Market Value for
the property has stalled negotiations.
FINANCIAL IMPLICATIONS/SOURCE OF FUNDS
This property is included in the 2006-2010 Capital Budget and Plan of Finance under Capital
Improvement Project (CIP) number C200015. This project is included in the Third Runway
budget. This project is eligible for federal funding by Airport Improvement Program (AIP)
grants, reimbursement of 80% of eligible costs (acquisition, relocation and demolition). The
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
March 30, 2009
Page 2
funding plan for this project includes a combination of federal grants, passenger facility charges
and revenue bonds.
PROJECT COST BREAKDOWN
Fair Market Value
$285,000
Estimated Tenant Relocation Cost
$10,000
Administrative/Overhead Cost
$3,420
Total
$298,420*
* Previously budgeted and authorized under this capital project.
KEY DATES:
September 27, 2005
Initial property acquisition notice
March 26, 2007
Appraisal inspection
May 10, 2007
Offer presented for $260,000
May 30, 2007
Owner contests value and agrees to provide his own
appraisal
November 15, 2007
Owner’s appraisal received by Port for $610,000
December 6, 2007
Port review appraiser rejects owner’s appraisal report
January 22, 2008
Second offer presented for $285,000 based upon an
appraisal update
February 26, 2008
Property owner requests acquisition by condemnation
April 21, 2008
File forwarded to Port legal and outside legal counsel
for further handling
November 28, 2008
Appraisal report for final & best offer indicates fair
market value has decreased to $270,000
February 19, 2009
Final & best offer of $285,000 presented to property
owner
STRATEGIES AND OBJECTIVES
This project supports the Port’s strategy to “Ensure Airport and Seaport Vitality”.
ALTERNATIVES CONSIDERED/RECOMMENDED ACTION
Do not acquire. Existing residential property and its occupants would continue to be exposed to
aircraft noise and effects of the third runway. This is contrary to the runway Master Plan Update
and recommendations of the EIS. This is not the recommended alternative.
Acquire via condemnation. This would be in compliance with FAA regulations and
recommendations of the EIS. This is the recommended alternative.
