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1NTERLOCAL AGREEMENT <br /> FIDALGO BAY HABITAT MITIGATION SITE <br /> THIS INTERLOCAL AGREEMENT (the "Agreement"), dated this 14th day of January, <br /> 2008, is made pursuant to Ch. 39.34 RCW, by and between THE PORT OF ANACORTES (the <br /> "Port"), a Washington municipal corporation; and THE CITY OF ANACORTES (the "City"), a <br /> Washington municipal corporation (collectively, the "Parties"). <br /> WHEREAS, the Port is in the process of modernizing and upgrading the public <br /> infrastructure on Port marine terminal properties along the south side of Guemes Channel in <br /> Anacortes, Washington; and <br /> WHEREAS, the Port is implementing Project Pier 1, which will improve the Port's upland <br /> marine terminal capacity.currently used as a shipyard and modify the public waterway to <br /> increase operational flexibility and capacity of the Pier 1 shipyard; and <br /> WHEREAS, dredging for Project Pier 1 will affect intertidal and subtidal habitat; <br /> therefore, aquatic mitigation is a necessary component of Project Pier 1; and <br /> WHEREAS, to mitigate impacts on aquatic habitat(specifically eelgrass), the Port will <br /> construct and maintain an eelgrass mitigation site located on six (6) acres in Fidalgo Bay (the <br /> "Mitigation Project"); and <br /> WHEREAS, the State of Washington acting by and through the Department of Natural <br /> Resources (the "DNR") is the owner of the aquatic lands known as Fidalgo Bay; and <br /> WHEREAS, the City intends to enter into an Aquatic Lands Commercial Lease (the <br /> "Lease") with DNR (the "Department") for the lease of the Fidalgo Bay aquatic lands; and <br /> WHEREAS, the Port and the City agree to work together so that the Port may use all of <br /> the Fidalgo Bay aquatic lands leased by the City from DNR to construct and maintain the <br /> Mitigation Project. <br /> NOW THEREFORE, for and in consideration of the mutual terms and conditions <br /> contained herein, the Parties hereby agree as follows: <br /> 1. Purpose. The purpose of this Agreement is to establish the rights and understandings of the <br /> Parties with regard to Port's sublease of state owned aquatic lands at Fidalgo Bay for the <br /> Mitigation Project. <br /> 1.1. The Mitigation Project is a water dependent use as the term is defined in WAC 332-30- <br /> 106 (71) and is a "Permitted Use" as the term is defined in the Lease. <br /> 2. Lease. Attached hereto as Exhibit "A" is the Lease between the City and DNR. This <br /> Agreement shall act as an exclusive sublease of all of the leasehold described in the Lease (the <br /> "Mitigation Project Area"). This Agreement shall be subject to all the terms and conditions of the <br /> Lease. In the event that a term or condition of this Agreement conflicts with a term or condition <br /> of the Lease, the Lease shall control. <br /> -2- <br />