Sea-Tac Buyouts Made Man Rich -- Port Will Purchase 388 Homes By 2001

Home buyouts

For more information on the Port of Seattle's home-buyout program, call Earl Munday at 431-5915.

SEATAC - Forget about the noisy jets.

Never mind the vast volumes of dirt.

In Jack Sleight's case, a new airport runway meant the chance of a lifetime: to get rich.

"When they put in the second runway, I lost my home and seven rentals," said Sleight, 85.

"I was quite pleased. They made me wealthy."

Sleight, who now lives on the east side of Seattle-Tacoma International Airport, used a federal buyout program and some shrewd investments to make a fortune 30 years ago.

While not all property owners share Sleight's enthusiasm, hundreds of homeowners in the path of the latest airport expansion - a third runway - will take part in the buyout program. Letters went out this week to 82 homeowners in the first phase, explaining how the program works.

By the end of the year, the Port of Seattle, which operates Sea-Tac, plans to begin negotiating with those owners. It expects to buy their homes next year.

The Port will purchase the remaining 306 houses by 2001. Most businesses in the buyout area will have the option of selling during the last phase, said Earl Munday, who's in charge of acquisitions for the airport.

So far, no organized opposition to the buyout program has appeared. However, some individuals have objections, ranging from resistance to anything involving the third-runway project to anger

over having to move.

But many owners want the buyout program to go faster.

"We'd like to see them buy the properties sooner rather than later, because there seems to be a credibility problem," said SeaTac City Manager Calvin Hoggard.

Residents have heard varying stories over the years about which parcels of land will be purchased and when, he said, and the uncertainty makes it hard for them to plan ahead.

The buyout area stretches roughly from the current airport boundary to Eighth Avenue South, and from the Burien Freeway to South 176th Street.

In the 1960s, Sleight lived on 12th Avenue South, which became the edge of the airport's noise-buffer zone.

His tactic was fairly simple, but it would work only for people who have largely paid off their mortgages. The key: When the government buys properties, it pays cash, all at once.

"You take the money and make a down payment on a new house," said Sleight, then invest the rest of the money. He put his money in a combination of stocks, bonds and other rental properties.

Property owners, however, should beware of brokers, agents or salesmen who come knocking with get-rich-quick schemes. In other parts of the country, some owners have fallen victim to scams.

"Be cautious about making commitments to anyone before the (Port's) acquisition people make contact with you," Munday said.

A consultant working for the Port will make an appointment with each property owner to explain the whole process.

When the airport condemns property, it follows a set of procedures defined by federal law designed for the interstate-highway system. In general, said Munday, for each house the Port must:

-- Determine a replacement value based on three comparable houses, nearby but outside the buyout area, that have sold recently.

-- Have two independent appraisers determine the market value, before making an offer to the homeowner.

-- Allow the homeowner to appeal the offer by choosing his own appraiser to review the offer.

-- Allow the owner to appeal any final offer, at his own cost, in court.

-- Cover all closing and moving costs, within 50 miles.

In addition, if the only houses of comparable square footage and features available for sale cost more than the settlement when the homeowner is ready to move, the Port will increase the settlement.

Renters can get financial assistance, up to $5,250, if a comparable apartment or house will cost more to rent than the current home.

"The point is to try to re-create a place to live for someone that is similar to where they live now," said John Paul Turner, a Bellevue attorney who defends property owners in condemnation cases.

Owners nervous about getting a fair price should start doing their own research, said attorney Craig Kinzer, who represents government agencies in condemnation procedures.

"You should have a good idea of what your home is really worth," Kinzer said. "Be well-informed."

And, while few will get rich, sellers can avoid capital-gains taxes as long as an amount equal to the sale price of their primary residence is spent on another primary residence within two years.