Lane v. Port of Seattle

316 P.3d 1070, 178 Wash. App. 110
CourtCourt of Appeals of Washington
DecidedNovember 25, 2013
DocketNo. 69157-1-I
StatusPublished
Cited by14 cases

This text of 316 P.3d 1070 (Lane v. Port of Seattle) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lane v. Port of Seattle, 316 P.3d 1070, 178 Wash. App. 110 (Wash. Ct. App. 2013).

Opinion

Becker, J.

¶1 The Port of Seattle purchased the Eastside Rail Corridor from BNSF Railway Company for [114]*114$81.4 million and sold portions to fellow respondents King County and the city of Redmond. Appellants contend the Port lacked statutory authority to make the purchase because the northern part of the corridor lies outside the port district and will not be used to run cargo to or from existing port facilities. We conclude the Port acted within its statutory powers.

¶2 In 2003, BNSF announced its intention to sell the Eastside Rail Corridor, a 42-mile rail line that runs from the city of Renton to the city of Snohomish and includes a spur line running east to Redmond.

¶3 The main north-south line of the corridor was built in the late 1800s as a narrow, single-track line to move freight along the east side of Lake Washington. Then known as the Lake Washington Beltline, it provided freight service for nearly a century. The Redmond Spur, which began operating in the 1880s, was also built to move freight.

¶4 The southern portion of the corridor, between Renton and just south of the city of Woodinville, is located entirely within King County, as is the Redmond Spur. The southern portion and the Spur are within the port district, the boundaries of which are coterminous with King County.

¶5 The northern portion of the corridor, running from just south of Woodinville to Snohomish, lies mostly in Snohomish County, outside the port district. At the north end, the tracks connect to the interstate rail line along which BNSF transports freight to and from the midwest over Stevens Pass. GNP Railway Inc. holds the right to transport freight from the interstate line to businesses located along the northern portion of the line between Woodinville and Snohomish. Currently, that freight traffic is intermittent and slow.

¶6 BNSF decided to sell the corridor after determining that it was no longer economically viable for freight pse due in part to increased maintenance costs and changing land use patterns that have brought about higher property values, causing industrial businesses to move elsewhere.

[115]*115¶7 BNSF offered public entities the first crack at acquiring the Eastside Rail Corridor. In 2005, King County emerged as a potential buyer. The County was interested in preserving the corridor for transportation and trail uses and did not want to see it parceled out in a way that would interfere with those uses. In 2006, the County approached the Port about joining in the purchase.

¶8 In 2009, having obtained assurances from various public entities that they would contribute toward the purchase price, the Port entered into a purchase and sale agreement to buy the northern portion and the Redmond Spur from BNSF for $81,449,000. BNSF agreed to donate the southern portion to the Port. Both agreements closed on December 21, 2009, as a single, interdependent transaction with each agreement conditioned on the other. The transaction was also conditioned on federal approval of “railbank” status for the portions of the corridor inside King County. On the same closing date, the County and the Port signed an interlocal agreement whereby BNSF would continue using the northern portion for freight service, and the Port would place the southern portion and the Spur into “railbanked status” under the National Trails System Act, known as the “Rails to Trails Act,” 16 U.S.C. § 1247(d). Under the act, the railroad right-of-way can be converted to trail use as long as it remains preserved for future rail reactivation. The County agreed to assume responsibility as the interim trail user to develop and maintain the railbanked segments of the corridor.

¶9 Since the 2009 purchase, several public entities have paid the Port for parts of the corridor. Of the Port’s initial outlay of $81.4 million, the sum of nearly $58 million has been recouped in this manner as of the date of our appellate record. In June 2010, the city of Redmond paid $10 million to purchase 3.9 miles of the Redmond Spur for regional light rail, utility, and infrastructure improvements. In December 2010, Puget Sound Energy paid $13.8 million for a utility easement along the length of the corridor. In April [116]*1162012, Sound Transit paid $13.8 million for a transportation easement in the southern portion and the Spur, plus a fee interest in a one-mile segment in Bellevue for the East Link light rail route. That same month, the Port sold an interest in a short section of the southern portion to the city of Kirkland for $5 million. Finally, King County agreed to pay the Port $15 million to purchase the southern portion for future commuter rail use and to obtain an easement in part of the northern portion. Each of these agreements includes a provision complying with the federal railbanking statute, meaning ownership is subject to future rail use.

¶10 Plaintiffs Arthur Lane, John Allerton, and Kenneth Gorohoff filed suit in July 2010 to invalidate the purchase of the northern portion and the Redmond Spur as an unlawful expenditure of taxpayer funds. They named the Port, BNSF, King County, the city of Redmond, and GNP Railway Inc. as defendants because each entity had acquired an interest in the corridor or could be adversely affected by rescission of the $81.4 million deal. They claim the Port lacked statutory authority to purchase the corridor. However, they seek to unwind only the Port’s acquisition of the northern portion and the Spur. According to their complaint, the plaintiffs wish to leave undisturbed the donated southern portion of the corridor that King County plans to develop for trail use.

¶11 In a comprehensive and well-reasoned opinion issued on December 9, 2011, the trial court granted the defendants’ motions for summary judgment, dismissing the plaintiffs’ claims with prejudice. This appeal followed.

¶12 As a threshold issue, the Port asserts that the plaintiffs’ case is barred because it was brought as a taxpayer challenge to property taxes and the plaintiffs failed to pay their taxes under protest, which is a statutory precondition for such a suit. RCW 84.68.020; Longview Fibre Co. v. Cowlitz County, 114 Wn.2d 691, 695, 790 P.2d 149 (1990). This issue is moot. The plaintiffs dropped their initial requests for property tax refunds and now seek only [117]*117declaratory relief and rescission of the purchase. The trial court did not err by hearing their challenge.

¶13 This court reviews summary judgment de novo. Tracfone Wireless, Inc. v. Dep’t of Revenue, 170 Wn.2d 273, 280-81, 242 P.3d 810 (2010). Summary judgment is appropriate only when there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. CR 56(c).

¶14 As a municipal corporation, a port is limited in its powers to those expressly granted, those necessarily or fairly implied in or incident to the powers expressly granted, and those essential to its declared purposes. Christie v. Port of Olympia, 27 Wn.2d 534, 545-46, 179 P.2d 294 (1947).

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Bluebook (online)
316 P.3d 1070, 178 Wash. App. 110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lane-v-port-of-seattle-washctapp-2013.