Seattle's industrial lands are the source of good paying jobs for 25 percent of the city's workforce, but industry owners worry that growing pressure to build condos and apartment buildings on land zoned for industrial use threatens their economic future and the city's.

During a panel discussion about the future of Seattle's industrial lands recently, manufacturers and industrial landlords said the city's industrial areas need more protection from gentrification. Industrial businesses don't want to be replaced by office buildings, condominiums, restaurants or retail stores.

The panel discussion was precipitated by Mayor Greg Nickels' recommendations for the future of Seattle's industrial lands, released last month.

Seattle has two main manufacturing and industrial areas. The Duwamish corridor spans both sides of the Duwamish River from South Park downstream to Elliott Bay. The Ballard Interbay Northend area stretches from Elliott Bay to Ballard between Magnolia and Queen Anne. The Ballard Interbay Northend industrial area also extends along the Lake Washington Ship Canal.

"Industry is a thriving sector in Seattle," said Tony To, chairman of the Seattle Planning Commission.

On average, industrial jobs pay 18 percent more than other jobs.

Industrial businesses account for one-third of the sales tax revenue collected in Seattle. They contribute approximately one-third of the city's business-and-occupation tax revenue, and 20 percent of property taxes paid in Seattle.

Depending on which industrial zone is involved, Seattle city regulations allow 30,000 to 100,000 square feet of office or retail space in industrial areas.

To preserve industrial lands, Nickels proposes limiting the size of future nonindustrial buildings to 10,000 square feet. By comparison, Portland limits office and retail uses in industrial areas to 9,000 square feet.

An exception would be extended to Starbucks, which put its world headquarters in the old Sears building along First Avenue south of downtown.

The mayor further recommended 20 acres on the Harbor Avenue side of Terminal 5 be reviewed to determine whether the area should still be considered part of the official Duwamish manufacturing and industrial center.

The irreplaceable parts of Seattle's industrial areas should be taken off the table, said Bill Oseran, owner of Seattle Textile Co. The waterfront and active railroad lines should always be zoned for industrial use, he said.

Oseran argued against allowing housing to be built in areas zoned for industrial use.

He was critical of Mayor Nickels' proposed changes for Seattle's industrial lands and said they would cause "the loss of family-wage jobs."

Many companies benefit from being geographically close to each other in the industrial areas, said John Odland, vice president of MacMillan-Piper Inc., a long-haul trucking company.

Besides quick response times, proximity saves on transportation and storage expenses. He told of a situation in the Duwamish industrial area where supplier and buyer are across the alley from each other. If either business moved, the mutually beneficial business relationship would be in doubt.

Many cities have access to interstate highways and airports but only a few are on the sea.

Seattle has 470 marine-related businesses that employ about 22,000 people with an average annual income of $70,000, said Lise Kenworthy, a marine attorney and past president of the Seattle Marine Business Coalition.

The growing North Pacific fishing fleet, based at Fishermen's Terminal, conducts a lot of trade with marine-related businesses in the Duwamish River area, she said.

Kenworthy criticized the "fuzzy code" used by the city to regulate industrial lands. She also accused city regulators of allowing developers too many exemptions to that code.

City officials feel compelled to re-examine Seattle's industrial areas. The vacancy rate for industrial land is about 2.5 percent, said City Councilman Peter Steinbrueck. The value of industrial land is rising and rent for industrial space is increasing, he said.

"We're seeing some speculation in industrial land," Steinbrueck said.

There also have been numerous requests for rezoning industrial areas, said Tony To of the Seattle Planning Commission.

Industrial land comprises about 12 percent of Seattle's land area or 5,142 acres. That is down from 5,698 acres in 1984.

The City Council is scheduled to hold a public hearing about the mayor's industrial lands recommendations at 5:30 p.m. Oct. 22. The council will discuss and possibly vote on the recommendations Oct. 28.

Tim St. Clair can be contacted at timstc@robinsonnews.com or 932-0300.