PORT OF SEATTLE

MEMORANDUM

COMMISSION AGENDA

Item No.:

ACTION ITEM

Date of Meeting:

January 25, 2011

DATE:

January 18, 2011

TO:

Tay Yoshitani, Chief Executive Officer

FROM:

Craig Watson, General Counsel

SUBJECT:

Declaring surplus approximately 3,350 square feet, 25 feet in width, of Port-

owned real property formerly owned by BNSF, commonly known as the

Woodinville Subdivision, located in Bellevue, Washington; transfer of title to

said property as part of settlement of adverse possession lawsuit filed on

December 11, 2009 by plaintiffs Ao-Zhou

ACTION REQUESTED:

Resolution No. 3649, First Reading. Declaring surplus and no longer needed for Port District

purposes approximately 3,350 square feet, 25 feet in width, of Port-owned real property formerly

owned by BNSF, commonly known as the Woodinville Subdivision, located in Bellevue,

Washington, and authorizing the Chief Executive Officer to execute all documents necessary to

transfer title of the property to plaintiffs Ao-Zhou via quitclaim deed as part of settlement of

adverse possession lawsuit filed on December 11, 2009.

First Reading

Estimated Value of Adverse Possession Property: $95,374.50 to $222,607.50.

SYNOPSIS:

The Port owns the real property legally described in Exhibit A (“BNSF/Port Property”) to

Resolution No.3649. The Port acquired the BNSF/Port Property from BNSF, as part of the Port’s

acquisition of the Woodinville Subdivision rail corridor, on December 18, 2009. Jie Ao and Xin

Zhou (“Ao-Zhou”) own real property located at 6333 Hazelwood Lane, Bellevue, Washington

98006 in King County, on the eastern shore of Lake Washington. Ao-Zhou filed an adverse

possession lawsuit on December 11, 2009, claiming 1) an ownership interest in a 35-foot wide

portion of the BNSF/Port Property and 2) a prescriptive easement interest in the roadway

(Hazelwood Lane) serving the Ao-Zhou Property. Plaintiff alleged, among other things, in its

lawsuit that: 1) The Ao-Zhou parcel abuts the western boundary of the BNSF/Port Property north

and south of SE 64

Street; 2) To the north of SE 64

Street in Bellevue, the Ao-Zhou Parcel is

currently developed with Ao-Zhou’s home; 3) Ao-Zhou and their predecessors have maintained

a detached single-story garage, a concrete driveway, rockery, and other improvements within

COMMISSION AGENDA

Tay Yoshitani, Chief Executive Officer

January 18, 2011

Page 2 of 3

that portion of the BNSF/Port Property abutted by SE 64

Street for over ten years; and 4) They

and their predecessors have also maintained a concrete driveway, rockery and other

improvements (namely a retaining wall) within that portion of the BNSF/Port Property abutting

the Ao-Zhou Parcel to the north of SE 64

Street.

Settlement of the adverse possession lawsuit would be justified for reasons consistent with the

Commission’s delegation of authority to settle claims filed against the Port. .

The Port wishes to convey as part of the settlement of Ao-Zhou’s lawsuit, a portion of the

BNSF/Port Property that is 25 feet in width (east-west) and approximately 3,350 square feet in

area as legally described in Exhibit B and as depicted in Exhibit C to the Resolution (the

“Adverse Possession Property”). Based on sales data of adjacent properties, the market value of

the Adverse Possession Property is estimated to range between $28.47 and $66.45 per square

foot. The value of the Adverse Possession Property thus ranges from approximately $95,374.50

to $222,607.50, which amount falls under the $300,000 settlement authority delegated to the

CEO.

The Port has not used or needed the Adverse Possession Property since the Port’s acquisition of

the former BNSF property, and sees little practical use for it. The eastern boundary of the

Adverse Possession Property lies at the toe of a fairly steep slope down from existing railroad

tracks in the Bellevue section of the Woodinville Subdivision rail corridor. Ao-Zhou originally

claimed 35 feet, including part of the property to the east of the top of the slope toward the

tracks, but plaintiffs will agree to accept 25 feet beginning at the top of the slope and running

westward. Any agreement to settle Ao-Zhou’s lawsuit will have acknowledgment and

agreement by Ao-Zhou that under the Rails-to-Trails Act (16 U.S.C. Section 1247(d)), the Quit

Claim Deed from BNSF to the Port and that certain Donation Agreement dated May 12, 2008,

the BNSF/Port Property is “railbanked” which means that rail service may be reactivated over

the Property, which means that Ao-Zhou may be required to remove or relocate Ao-Zhou’s

improvements, if any, in or on the BNSF/Port Property at Ao-Zhou’s sole cost and/or negotiate

with the person or entity that reactivates rail service to make other arrangements for Ao-Zhou’s

continued use of the BNSF/Port Property.

JUSTIFICATION:

A resolution declaring surplus the Adverse Possession Property is necessary to settlement of the

Ao-Zhou adverse possession lawsuit.

COMMISSION AGENDA

Tay Yoshitani, Chief Executive Officer

January 18, 2011

Page 3 of 3

OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST:

The surplusing resolution, Resolution No. 3649 and its exhibits A (legal description of

BNSF/Port Property”; B (legal description of Adverse Possession Property); and C (depiction of

Adverse Possession Property).

PREVIOUS COMMISSION ACTION OR BRIEFING:

None.