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City releases report on South Lake Union evolution, public-private investment
Today Mayor McGinn and Councilmember Richard Conlin released a report - Public & Private Investments in South Lake Union – that examines the relationship between public sector actions and private investment decisions in South Lake Union and how they have contributed to job growth and economic development.
“South Lake Union has been an engine for job growth and new housing, helping Seattle recover from the recession,” said McGinn. “The City’s role has been crucial in helping support these new jobs. That work continues. The South Lake Union rezone proposal will help support up to 22,000 new jobs and up to 12,000 new households, including affordable housing, preservation of existing housing and open space, and other community benefits.”
The report describes South Lake Union’s evolution as a neighborhood and evaluates community impact that resulted from public actions and how these spurred private investment decisions in South Lake Union. The intent of the study is to develop a deeper understanding of how the South Lake Union neighborhood has changed and what economic development lessons can be learned from the South Lake Union example.
“I was initially skeptical about some of the grand plans to transform South Lake Union into a regional public health/technology powerhouse. But the numbers demonstrate that targeted public investments and forward-thinking policy decisions actually did make a tremendous difference in shaping the future of that neighborhood,” said Councilmember Richard Conlin, Chair of the Planning, Land Use, and Sustainability Committee. “The lessons learned about how our early actions primed the pump for job growth and economic prosperity will inform our consideration of the proposed South Lake Union rezone legislation and other infrastructure investments in the neighborhood.”
A few of the highlights from the report about the increase in jobs, development and tax revenues:
- Today, South Lake Union has an estimated 23,000 jobs.
- South Lake Union’s share of Seattle’s total employment has also increased over time. From 1995 to 2010, Seattle added a net 34,000 jobs, and South Lake Union represents 1 in 10 of those jobs, indicating the neighborhood is increasingly a major drive of economic opportunity.
- Since 1995, 12.5 million square feet of multi-family, office, biotech, and retail space has been developed in South Lake Union.
- Between 2000 and 2011 development in the South Lake Union urban center accounted for over $155 million of the City of Seattle’s revenues and estimates an additional $356 million in revenues between 2012 and 2022.
City actions to support economic development in South Lake Union include:
- Coordination and implementation of local, regional, and statewide comprehensive land use and transportation planning efforts over the past 30 years ago.
- Regional planning efforts which gave a broad regional framework designed to concentrate growth in urban areas, and reinforced those regional plans in the City’s comprehensive plans.
- Implementation of zoning changes in South Lake Union to attract specific uses and tenants, specifically in the life sciences and high technology.
- Supporting and investing in public infrastructure and amenities in the neighborhood, such as the Streetcar, Cascade Park, Lake Union Park, and the Mercer Corridor.
“South Lake Union has transformed into a high density, mixed-use urban neighborhood providing jobs, housing and public amenities to a wide range of people,” said Michael Hodgins, finance and economics practice manager at BERK. “The City actions detailed in this report created the environment for private investment that has led to the gains in employment, housing, and tax revenue we see today.”
The report was commissioned by the Office of Economic Development and completed by BERK and Heartland LLC.
Posted by: Words: April Thomas, Pictures: Jen Nance
Comments
Comment from jrcrossley
Time July 13, 2012 at 1:29 pm
We can multiply highrise buildings, tax revenues now to suffer consequences which, ironically, will erode the tax base in the long run. Density beyond that already carefully zoned for should not be pursued. Healthy growth is happening under the plan in place. If anything, downsizing to compensate for the height change rise in Amazon and UW buildings properties should be compensated by lowering of height limit East of Fairview Ave. to return South Lake Union to the planned density in the zoning of the Peter Steinbrueck council.
Comment from william potter
Time July 13, 2012 at 2:30 pm
As a fairly new resident at Mirabella, I have trouble understanding what all the hurry is. Adding new construction to already crowded conditions’ exaggerated by the long-standing “Mercer Mess” which may or may not meet current completion estimates, seems only adding fuel to the fire. Are we simply salivating over the thought of increased tax revenue without thought to the increasing congestion new construction will wrought?
Comment from sustainable investments
Time August 21, 2012 at 11:34 pm
Really thanks author for your nice blog and fantastic talked about to public-private investment.
Comment from Michael Kaiser
Time July 11, 2012 at 3:17 pm
“I was initially skeptical about some of the grand plans to transform South Lake Union into a regional public health/technology powerhouse. But the numbers demonstrate that targeted public investments and forward-thinking policy decisions actually did make a tremendous difference in shaping the future of that neighborhood,” said Councilmember Richard Conlin, Chair of the Planning, Land Use, and Sustainability Committee.
You got that right. Almost makes one wonder how Seattle ever USED to get voted one of the most livable cities in the country, if not the world. Now we are going to have a ton of more people pouring in the South Lake Union area, also causing rents and housing costs to soar, and leading to a dramatic increase in congestion, which in fact is already happening–not good for anyone’s “economic development” by the way, but we will just ignore that last fact, eh? Let us just focus on the minority who are benefiting from what is going on.
Of course, it MAY increase tax revenues–ignoring the HUGE tax exemptions these companies will certainly be given for the “gift” they have bestowed–which, again, makes one wonder how the city ever used to survive without this tax revenue. But that is beside the point, the tax revenues, if they actually even materialize, will fuel more bureaucrats’ dreams, and that is the important part, right?
Gosh, now that I think about it–and I only have lived in Seattle for 46 years–I can not think of ONE similarly situated resident who things what is happening is good. But I will l concede one point–you folks certainly are responsible for “prim[ing]” the pump.”