Protection sought for city industries
Tue, 09/25/2007
Mayor Greg Nickels wants to keep commercial and retail development off industrial land and has announced an initiative to strengthen zoning protection for industry and manufacturing in Seattle.
The purpose, Nickels said during a press conference, is to protect existing industrial jobs and encourage new ones.
Over 120,000 jobs in Seattle are in industry and manufacturing, according to the Employment Security Department. That is one-quarter of all jobs in the city, and more than in bio-tech, healthcare and information technology combined.
The proposal drastically reduces the amount of commercial and retail development permitted on industrial property. On most of Seattle's industrial land 100,000 square feet of commercial and 75,000 square feet of retail space can be developed. Nickels' proposals caps both at 10,000 square feet.
"It's the most significant thing the city's done in decades" to help industry, said Dave Gering, director of the Manufacturing Industry Council.
"The most important issue in protecting industrial jobs is preserving industrial land," said Marianne Bischel, spokesperson for the mayor. "The city should be a partner, not the problem."
Nickels' proposal was "long in coming," in Councilmember Peter Steinbrueck's view.
"The Council has been pressing for several years to get a stronger response to protect Seattle's industrial land," he said.
Prompted by the Council, Seattle's Planning Commission began studying the state of the city's industrial land and its future needs in 2005. In July, it recommended restricting commercial and retail development on industrial land.
The city's industrial centers "are reserved for industrial land first and foremost," Steinbrueck said. "Office and retail can go elsewhere" in the city.
"We can do more, and I feel we need to do more" for industry in Seattle, Steinbrueck said. He wants the Council to consider economic development and infrastructure investment in addition to zoning protection.
"We'll move expeditiously, but thoughtfully," Steinbrueck said. But, he added, "We are not going to be able to accommodate everybody."
Opponents argue that the changes are misdirected or that market forces should be allowed to operate. They have not been as vocal as the supporters, but Barry Hawley, of Seattle-based Hawley Reality, expects a vigorous fight over any legislation restricting commercial and retail development.
"Absolutely, because you're talking about the value of land," said Hawley. The proposed zoning restrictions would reduce the property value of industrial land.
The 100,000 square foot commercial space and 75,000 square foot retail allowances on industrial land are "a big incentive" for commercial developers, Hawley said.
Commercial development can be displaced by mixed-use development which has only "token commercial" space, according to Hawley. Commercial land users then move to industrial land, which generally has much cheaper property values than commercial land.
"The city's let this happen, and this is a reaction against it," Hawley said.
Nickels' proposal punishes successful developers, said Vince Deluca, senior vice-president of Colliers International's Seattle office. West Seattle's Henry Liebman and other developers bought underutilized property in Sodo, and leased it out to businesses displaced from Fremont, South Lake Union, Ballard and other neighborhoods.
Many supporters of industry in Seattle want to stop Liebman's plans to redevelop much of Sodo for commercial use. With 40 acres, he is the area's largest private-property owner.
"I think some politician saw this as an opportunity to garner public support," Deluca said. "For politicians to say they're going to put a halt to this is preposterous.
"Being able to pay the rent is a basic cost of doing business, and if you can't pay the rent in Sodo maybe you should consider moving to South Park or Auburn or Kent," Deluca said. However, he added, this doesn't apply to all situations.
"Maybe there needs to be fewer sweeping generalizations coming out of the mayor's office," said Deluca.
Supporters of the proposed restrictions are unsure about the rest of Nickels' initiative, which includes the city reviewing the zoning along the edges of the manufacturing and industry centers and promoting research and development in industrially zoned areas.
The Manufacturing Industry Council's board wants more specific information before voting on all of Nickels' initiative.
Dan Catchpole may be contacted at wseditor@robinsonnews.com