This Port of Seattle document examines the financial implications of transferring airport property to the Economic Development Division (EDD). It explains that if the transferred property currently generates revenue, losing that income would likely raise the cost per passenger (CPE) for airlines, since those revenues normally offset airline fees. However, if the property was originally purchased using FAA noise grants, a portion of the sale proceeds could be reinvested as grant money, potentially reducing costs and partially offsetting the CPE increase.

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This Port of Seattle attachment details the financial implications of transferring airport property to the Economic Development Division (EDD). It explains how the transfer affects cost per enplaned passenger (CPE), revenue sharing, and the Airport Development Fund. The document also addresses special conditions when FAA noise grants were used to fund the property.

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As the source for federal transportation grants, the Puget Sound Regional Council was charged with developing a system to meet the growing need for commercial aviation. When the search for a second airport failed, they authorized the Port of Seattle to build the Third Runway, with a mandate to develop a noise abatement and mitigation program. In their effort to stop the Third Runway, the ACC argued over every detail of the Port's efforts--including property buyouts and sound insulation. The dispute was meant to be settled by a three member Expert Arbitration Panel. This is their final report. It finds 2-1, that the Port's program was insufficient in several respects. Despite that, funding for the Third Runway was approved by the PSRC, and the 'Port Package' program, proceeded largely unchanged. Expert Arbitration Panel's final decision finding that the Port of Seattle had not shown sufficient reduction in real on-the-ground noise impacts to satisfy noise reduction conditions required for approval of a third runway at Sea-Tac International Airport. The majority decision concluded the Port's noise abatement programs were insufficient despite being impressive in scope.

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