As you can imagine, the City of SeaTac has had a unique relationship with 1Sea-Tac Airport since its founding in 1990. (Fun fact: the originally proposed city boundaries did not include the property which now comprises 43% of its land area.) But as soon as the decision was made, how to benefit from the relationship with the Port of Seattle became of utmost importance. This has been effected most notably via these three Interlocal Agreements.
There were actually two agreements before ILA#1. The first was a three-party ILA begun before the city incorporated which included the Port and King County. It (finally) made real a major promise of the Sea-Tac Communities Plan: North SeaTac Park. Call that ILA 0.1.
The second was the first agreement between the Port and the newly incorporated City of SeaTac. This was a requirement of the state to govern building permits at the airport previously handled by King County. It sets out which properties will be permitted by the FAA and which by the city. It charges only minimal permit fees and offers no other compensation. But it did have one item of ongoing interest. It assigned the city its own office on the AAA and gave them rights to inspect the property. Resolution 3119: Port Of Seattle Commission Authorization for ILA with City of SeaTac for State Building Code Enforcement
The Three ILAs
City of SeaTac/Port of Seattle ILA #1 1997
| Sec. | Item | Amount (millions) | Amended amount | Date/Trigger | Notes |
|---|---|---|---|---|---|
| 1.4 | Community and Land Use Compatibility | 10.0 | $2M on Comp Plan amend. (due Dec 31 1997; ACTUAL adopted Dec 9 1997); $4M by earlier of transp. study or Dec 31 1998; $4M by Dec 31 1999 | Litigation settlement + compatibility relief; City discretion; City Center-eligible (the plausible City Hall money) | |
| 2.2 | Joint City Center Study | 0.5 | Consultant hired by Jan 31 1998; study complete by Sept 30 1998 | Port match to City's contribution | |
| 2.3 | RTA / City Center Pedestrian Link | 6.0 | Event-triggered: earlier of City Center Phase I or RTA station construction; no calendar date in ILA | Moving sidewalk, terminal to east side of International Blvd; unspent balance rolls into the 1.4 funds | |
| 5.2.3 | Joint Comprehensive Transportation Plan | 0.5 | ~1998 (tied to joint transportation study period; no hard deadline in 5.2.3) | Study funding | |
| 5.2.4 | Transportation Improvement Funding | 36.8 | Amendment #2 (LID sub-item only) Over 10-yr ILA term (1997-2007+); some listed projects 2010-2020; estimate pending joint transportation study | 32.8 capital + 4.0 O&M. Includes 28th/24th LID sub-item: Amendment #2 changed LID from $5.3M est. to $2.828M (per Nov 17 1999 assessment roll). Top-line $36.8M unchanged. | |
| 10 | Airport Beautification | 10.0 | 1997-2002 (over 5 years) | Airport perimeter appearance + Third Runway fill-slope landscaping (per 8.5); NOT International Blvd street work | |
| 8.4 | Westside Recreational Trail | 1.5 | No date specified in ILA (N/A) | Multi-use trail | |
| 9.2 | Street Vacations (~60 acres) | 3.5 | 6.5 | Amendement #2 Vacations due w/ Comp Plan amend. (orig. Dec 31 1997); extended by Jan 1998 Port letter; phased 1998-2000; NSTP vacations completed 2008 via Amendment #4. Interest on $3M from Jan 1 2000. | Westside for Third Runway + existing airport; excludes North SeaTac Park. Amendment #2 RAISED liquidated amount from $3.5M to $6.5M and added Jan 1 2000 interest clause. |
| TOTAL (as printed in ILA summary) | 68.8 | 1997 dollars; all amounts CPI-escalated (Seattle Metro Urban Consumers) per 20.1 | Uses original $3.5M street-vacation figure. Carrying Amendment #2's $6.5M through raises the effective total to ~$71.8M; ILA summary table was never reprinted. |
City of SeaTac ILA-2 2007
| Section | Item | Amount | Category | Notes | |
|---|---|---|---|---|---|
| Ex C 1.4 | Community and Land Use Compatibility Relief | $10.0M | Carried forward from 1997 ILA | Stated in ILA-2 as ALREADY PAID in full per 1997 ILA terms; City-discretion / City Center-eligible (the City Hall money) | |
| Ex C 7 | Airport Beautification Plan | $10.0M | Carried forward from 1997 ILA | Only $1.96M completed as of Dec 31 2004 (airport-side: S.182nd entrance, garage, substations, terminal); remainder outstanding. NOT International Blvd work. | |
| Ex C 5.5 | Westside Recreational Trail | $1.5M | Carried forward from 1997 ILA | $50K study/pre-design + ~$206K grant done by 2004; remaining ~$1.45M to be satisfied via parking tax funds | |
| Ex C 6 | Street Vacations | $6.5M | Carried forward from 1997 ILA (as amended by Amdt #2) | PAID in full plus interest by 2006. ~4 acres other Port ROW + ~33 acres North SeaTac Park still to be vacated. | |
| Ex C 5.3.3 / Att C-1 | Parking Tax - total projected revenue 2005-2015 | $84M (PROJECTION) | NEW mechanism | $51M from Port-owned lots + $33M from commercial lots (61% Port-sourced). Forecast by Berk & Associates - not a fixed commitment; subject to Corrective Action if actual < 90% of forecast. | |
| Ex C 5.3.3 / Att C-1 | Parking Tax - dedicated to South Access / Westside Trail / Ring Road | $31M (PROJECTION; 36.9%) | NEW mechanism | Port manages South Access; City manages Ring Road and Westside Trail | |
| Ex C 5.3.3 / Att C-1 | Parking Tax - to all other City CIP projects | $53M (PROJECTION; 63.1%) | NEW mechanism | City-managed CIP projects per the Joint Transportation Study | |
| Ex C 2.2 | RTA / City Center Pedestrian Connection | Sound Transit funded | Third-party funded | Sound Transit pays per Dec 20 2004 term sheet; not a Port cash commitment | |
| Exhibit B | Surface Water Management | Per Exhibit B / City rate structure | Ongoing fee | No single flat annual dollar figure stated in ILA-2 (unlike ILA-3). SWM fees referenced as pledged to City bond debt through 2013. | |
| Deliberately no total row: carried-forward items (mostly already paid by 2006) do not sum meaningfully with a 2005-2015 revenue PROJECTION. Treat the two categories separately. |
City of SeaTac ILA-3 2018
| Section | Item | Amount | Frequency | Basis | Notes | |
|---|---|---|---|---|---|---|
| 6.3.B.1 / 2.5.A | Surface Water Management fee | 1274952 | Recurring annual | Net of rebates from $2,446,681.45 gross (2,005.00 ac @ $1,220.29/ac) | Paid in equal portions by Mar 31 & Oct 31. FAA Revenue-Use-Policy compliant (1.16). Rebates: 25% NPDES Phase II <611,670.36>; 15% NPDES permit <367,002.22>; regional facility/natural-area credit <193,056.00>. | |
| 7.6.1 / 2.5.C | Community Relief Contribution | 140000 | Recurring annual | Flat annual, to City General Fund | Invoiced by Mar 1, paid by Mar 31. Suspendable (NOT forfeited) if City litigates ILA subject matter without first using Dispute Resolution; SEPA appeals expressly NOT counted as litigation (7.6.2). | |
| 5.5.D / 2.5.B | Fees for Service - Quality Assurance (Minimum Payment) | 22600 | Recurring annual (minimum) | $300M est. annual valuation @ $550 per $1M + tech fees; CPI-W (Sept-Sept, Seattle-Tacoma-Bremerton) | Floor figure; more owed if permitting valuation exceeds $300M (extra fees quarterly). Parties reassess the minimum at year 5 (5.5.D.5). | |
| 7.5 | Permit Parking - release of remaining ILA-2 parking tax funds | 3850000 | One-time | Port releases its interest/claim to the City | ~$3.85M estimated. For City Permit Parking Program and related transportation improvements. Ends the ILA-2 parking-tax era. | |
| TOTAL - minimum recurring annual | 2901552 | Recurring annual | Sum of SWM + Community Relief + QA minimum | First-year floor. SWM is fixed for the term; QA is a CPI-adjusted minimum; Community Relief is flat $1.4M. Excludes the one-time $3.85M release. |
Analysis
Although each ILA is very different, we do not think of them as separate contracts so much as one, ongoing negotiation. As we often say, “Seen one airport, seen one airport.” There is no standard rulebook and agencies learn over time. Some pieces were paid to terms. Some were interpreted differently by each party. Some disagreements were carried forward into the next agreement. Some were written off and replaced by new ideas.
Overall, the Port has seen the value in paying for public safety, transportation, beautification, and above all, easy permitting.
All governments enter into, and maintain, many ongoing ILAs. Why should any resident of another city care about the dozens of routine agreements that are necessary to work together on everything from sewers to senior services. But these three are worth careful study because they have had so many real consequences for every community under the flight path. Even for people who are aware of them, they often have an air of mystery and exclusivity they never deserved. Other cities could always have developed similar agreements. What has always concerned us is not the one item most people notice– financial benefits. What we notice are access and permitting. With each ILA, the City of SeaTac seems to have surrendered both–potentially weakening future protections for all communities under the flight path.
1Sea-Tac is an International Airport. SeaTac is the city in which it is located.