Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
6c
ACTION ITEM
Date of Meeting
May 8, 2018
DATE: April 30, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Jeffrey Utterback, Director, Real Estate and Economic Development
Dave McFadden, Managing Director, Economic Development
SUBJECT: Interlocal Agreement (“ILA”) between the Port of Seattle and the City of Burien for
the on-going redevelopment of the Northeast Development Area (“NERA”)
properties.
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute an Interlocal
Agreement (“ILA”) between the Port of Seattle and the City of Burien for the purpose of
exchanging easements and other property rights to provide for the completion of road
improvements, and the lengthening and relocation of Miller Creek to benefit the final stages of
the redevelopment of the Northeast Development Area (“NERA”) properties.
EXECUTIVE SUMMARY
The Port of Seattle and the City of Burien jointly prepared a redevelopment strategy for the
NERA in April of 2010. In 2014, the Port and the City entered into an interlocal agreement
regarding real estate items required to accelerate development in the NERA properties. Once
the Port contracted with private developers for the redevelopment of its NERA properties, the
City and the Port identified additional real estate transactions necessary to facilitate the
redevelopment. Related improvements will include roadway, stream and environmental
protections, and overall safer transportation accessibility.
The Port entered into a long-term ground lease for a portion of NERA in November 2016 with a
private developer. This investment, along with similar investments on nearby former City
owned property, is now nearing completion. As part of the developments, the Port and the City
of Burien have concluded that road improvements to improve commercial truck access and
pedestrian safety along S. 144th Way are necessary. These improvements will further impact
the nearby Miller Creek, necessitating a partial relocation and lengthening to improve riparian
and fish habitat conditions.
For successful completion of these improvements and as a benefit to the redeveloped Port
properties, the Port and the City have agreed on an exchange of property interests, including
land transfer and easements.
COMMISSION AGENDA – Action Item No. 6c Page 2 of 4
Meeting Date: May 8, 2018
Template revised September 22, 2016; format updates October 19, 2016.
JUSTIFICATION
The ILA details the various activities the Port and City are working on that are intended to
benefit the NERA redevelopment. The proposed ILA is intended to be a comprehensive and
cohesive package of elements for mutual value to both the Port and the City, and a further
commitment to successful partnership, providing predictability and consistency for activities
between the Port and the City.
DETAILS
The City of Burien has previously designated an approximately 158-acre area located northwest
of the Sea-Tac Airport as its Northeast Development Area (NERA). NERA is a key focus area in
the City’s overall economic development strategy and includes about 55-acres of Port-owned
property. Most of the Port’s property is comprised of former home sites, or “noise property,”
acquired under the Federal Aviation Administration’s (FAA) Part 150 regulations. Non-
residential properties that were acquired to ensure viable development comprise the balance
of the Port’s holdings in the NERA. FAA regulations require that the Port’s noise property be
converted to airport compatible use and disposed of (leased or sold) in accordance with FAA
guidelines.
The Port and City prepared a conceptual redevelopment plan for the NERA in April, 2010 (NERA
Plan). The Port, via long term ground leases with private industrial land developers, has
successfully pursued development of light industrial facilities on the northern portion of the
NERA that supports air cargo growth to help achieve the Port’s Century Agenda goals and
strategy to “position the Puget Sound region as a premier international logistics hub.” This
work also supports the Port’s goal to increase non-aeronautical revenues and living wage jobs.
The use of an ILA recognizes that the Port and the City have a unique relationship and both
Parties’ benefit from partnership, transparency and collaboration around the operation of the
NERA.
Scope of Work
Consistent with the Interlocal Cooperation Act, Chapter 39.34 RCW, the City and the Port agree
to undertake and complete the following separate, but related, activities:
Roadway Improvements:
- City will construct the S. 144
th
Way Roadway Improvement Project as designed under
the Pilot Program. The City is the fee simple owner of 13,854 SF that will transferred to
the Port by quit claim deed in exchange for the Port easements required by the City in
order to complete the road works and realignment.
- Port is the fee simple owner 7,847 SF and will grant the City permanent street use
easement and slope easement necessary to complete the road work and realignment.
COMMISSION AGENDA – Action Item No. 6c Page 3 of 4
Meeting Date: May 8, 2018
Template revised September 22, 2016; format updates October 19, 2016.
The City and the Port agree that the City’s conveyance by deed of 13,854 SF of real property to
the Port constitutes adequate consideration for the Port’s conveyance to the City of a street
use easement totaling 7,847 SF, a slope easement totaling 12,370 SF, a reduction to an existing
trail easement of 1,342 SF, and the Port’s conveyance to the City of a temporary construction
easement totaling of 253,509 SF. The City and the Port agree that the benefits to each from the
conveyances by the other are equivalent and therefore constitute adequate consideration.
Transfer of City Property to the Port:
Upon completion of the roadway improvements, the City will convey to the Port by quit claim
deed the 13,854 SF of property. The City will reserve the following easements in its conveyance
to the Port:
- Slope Easement for the City
- Utility Easement for Seattle City Light, Verizon, and Comcast
- Trail Easement allowing for future re-alignment of the existing trail
- Temporary Construction Easement allowing for the construction of the Stream
Improvements. The stream in its future configuration may not require a permanent
easement in favor of the City. In the event it does, the Parties commit to entering into
such easement at a later date.
Easements provided by the Port to the City:
In addition to the street use easements, the Port will grant the following easements to the City
for construction activities:
Temporary Construction Easement
- revising connections to Stormwater Facility #4
- stream re-channelization/floodplain construction
- grading and restoration adjacent to stream re-channelization and road construction
- contractor staging areas for both the stream re-channelization and road construction,
and for possible adjustment of the location of utilities
Trail Easement
- Easement in favor of the City for 155 SF.
- There is currently recorded on Port property in favor of the City an easement 2,285 SF.
- Upon completion of Stream Improvements, the Port will remove the 2,285 SF from the
easement, and grant a trail easement to the City on a revised area of 788 SF.
Beyond the easements provided by the Port, there are no financial implications to the Port
related to these agreements.
COMMISSION AGENDA – Action Item No. 6c Page 4 of 4
Meeting Date: May 8, 2018
Template revised September 22, 2016; format updates October 19, 2016.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not enter into the ILA with the City of Burien.
Pros:
(1) Allows the Port to retain the land areas scheduled for future permanent easements.
Cons:
(1) This approach would not allow the future road improvements being proposed to
proceed, negatively impacting the developments.
(2) Would not allow for the realignment of Miller Creek, likely causing negative impacts to
this sensitive environmental restoration project.
(3) Impact our relationship with the City of Burien and not complete our previous
obligations for the development of NERA.
This is not the recommended alternative.
Alternative 2 – Execute the ILA with the City of Burien.
Pros:
(1) Improve overall access to the property within NERA.
(2) Improve safety measures surrounding the site for truck and pedestrian traffic.
(3) Improve stream and other environmental protections.
(4) Follow through on Port obligations agreed to as part of the NERA Redevelopment.
Cons:
(1) Negative impact on existing Port property by providing permanent easements.
This is the recommended alternative.
ATTACHMENTS TO THIS REQUEST
• Exhibit “A” – NERA ILA 04132018 FINAL (with the City of Burien)
• PowerPoint presentation; NERA ILA Presentation 04202018
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
• 12/03/2013 Burien ILA Briefing
• 12/10/2013 Burien ILA Agreement.
