Too cozy with developers? The problems with Seattle's planning department

With developers paying the bureaucrats to review their plans, we build in incentives to accelerate approvals and keep the projects flowing. Also, Seattle's regulatory agency may have become too big and too unaccountable to protect the public interest.

A sea of cranes. (Crosscut Flickr contributor <a href='http://www.flickr.com/photos/xine/'>Christine Howard</a>)

A sea of cranes. (Crosscut Flickr contributor Christine Howard)

Imagine awakening from a deep sleep troubled by recurring visions from a TV science fiction thriller, looking out the window and discovering that all over Seattle were towering alien monsters standing stark against the sky.

You blink, look again. It's not an invasion from outer space spewing death rays — just hundreds of construction cranes dotting the landscape.

Mayor Greg Nickels, with many friends in the development community, must wiggle with delight. From his perspective all those cranes represent an increased tax base, jobs, more campaign contributions, and confirmation of his belief that Seattle is Washington's economic center. But while the mayor may be happy with explosive growth, many are not.

One reason for discontent: Seattle's housing is among the costliest in the nation. As we increase density, land becomes more valuable and prices go up. Given the limited amount of Seattle real estate, new, denser, gentrified development is creating unaffordable housing. Moreover, new development now comes too quickly, too big and too ugly even for some growth advocates. Only a short time ago Seattle "greens," concerned with sustainable development, were clamoring for higher density. Now many are wondering if they are being snookered by quick buck builders whose notion of "green" and "sustainable" developments turn out to be neither.

So what's gone wrong ? Let's start with the city's Department of Planning and Development (DPD), which has planned and sanctioned all this development. Mayor Nickels has lumped all planning and regulatory functions into DPD, making the agency huge. DPD is asked to regulate developers and new construction, create affordable housing, support sustainable development, and, oh yes, save the planet while they're at it.

DPD's organizational structure has an amazing range of responsibilities and the power to implement them. DPD decides the window size of your house, where and if you can park your car, whether you can keep your view, even the amount of light you get in your residence. The decisions they make affect your lifestyle, privacy, personal comfort, and your pocketbook. DPD, because of its regulatory and planning authority, has more power over our cityscape and lifestyle than any other city department. It's our nanny on steroids.

Developers are DPD's primary clients. Many of course do quality work, just as others are quick-buck types building tomorrow's slums. Developers pressure elected officials for faster DPD permitting and fewer regulations, while the public and various activist interests pressure DPD from the opposite direction. Most residents hope that our new buildings will be in scale with their location, attractive, safe, environmentally responsible, affordable, and necessary.

Some critics believe DPD is broken, arguing that the agency has too many conflicting missions under one roof, along with a mayor who is constantly tinkering with agency decisions to advance an agenda driven more by increasing the tax base and advancing density than by quality development. A lot of the parties are unhappy: urban planners, architects, greens, electeds, builders, and developers, though not all for the same reasons. In reality neither the public nor developers trust DPD.

To address this mistrust, the city tends to load on still more responsibilities and missions for DPD. One current example: City Council is considering even more property tax reductions for developers who build low to moderate income rental units. It sounds good, but it's pure fantasy if you believe it will work without stringent oversight, verification of all residents' income levels, and preventing some developers from claiming tax breaks they don't deserve.

A second example involves a recent City Council decision that raises thresholds for when the State Environmental Protection Act (SEPA) requirements come into play, causing time-consuming environmental studies. Council and developers argue DPD can look into details and monitor projects under other laws, without the former SEPA thresholds. While Council's decision was thoughtful and well intended (the goal is to get more housing under construction, perhaps at lower costs), those who follow DPD's work retain serious doubts that DPD can match SEPA's proven oversight. Many DPD critics are concerned that the department doesn't have the trained people in sufficient numbers to do the job and are increasingly convinced that DPD has their own reasons for rushing project approval and giving less scrutiny to environmental impacts.

Why would employees of DPD give less than full scrutiny to new development? They are excellent, hard working people, but they're also smart enough to understand that their jobs are largely dependent on a steady stream of new construction. Simply put, when there is a lot of development, there is lots of work at DPD. When development slows — well, you get the idea. DPD receives 87 percent of its budget directly from developers. While accounting isn't completed, last year DPD took in $63.2 million in developer permits and other fees. New construction also helps flow property taxes into the city's general fund, and it's not capped by property-tax limitations, as existing homes are. While one can argue that DPD should generate enough income through permit fees to support new development, it is highly questionable whether developers should be paying the salary of those whose regulatory and planning roles are in the public's general interest and have nothing to do with their new project.

Former DPD Director Rich Krochalis was instrumental in inspiring better customer service from DPD personnel. While the result was a welcome change, the staff also became much more aware of just who the customers were. They were developers. Most are under pressure to get permits approved and inspections done as quickly as possible. During fast growth periods, new staff was added and not all new hires had the language or comprehension skills to interpret the complex codes and construction details. Many have no construction or engineering experience at all. Building code complexity can lead to serious conflicts and mistakes. With high work loads and verification and coordination by inexperienced field, inspections are harder to accomplish. The person in the office who approves a particular building or site may never have actually visited or seen the actual site. Also, some of those who approve plans may never have had any personal experience in the construction industry.

At the heart of DPD's problems is an administrative culture, a complex blend of administrative leadership, organization, politics, and incentives. These are good people, but the pressure of all those permits causes problems with lack of training and consistent competency on the part of the staff. It may not be too much to say DPD is broken and out of control, as many feel who deal with it closely.

Most agree that European countries plan their cities and manage their growth better than we do. One reason is that building permits in most of Europe can take years to obtain. They control growth by intense scrutiny of what effect and impact new development will cause.

Another complaint about DPD is the complexity of its building codes. There's continuous pressure on City Council to write codes that codify every situation, hoping to preclude individual judgments on what might be best for a particular building site. The unfortunate outcome is that we often get bad development because strict codes simply don't always fit individual sites. But it's hard to favor more flexibility, as developers always want, when the department so typically approves subdivisions of property, exemptions to codes and grants declarations of non significance (DNS) for environmentally sensitive areas and impacts.


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Comments:

Posted Tue, Jun 17, 7:16 a.m. Inappropriate

Very good summary...but: One must look at how this all has evolved to see what's driving this autocracy. It is the mayor and his distorted 19th century ideas. Up unitl this mayor, it was typical to see staff persons mingling with City Council members in the sharing and creation of responsive legislation that first and foremost protected the general publics health, safety and welfare. Today, this activity is NOT allowed. The mayor has restricted interaction with the Council without his expresed authorization. The trickle-down limitation on staff has given this Mayor more control over local government than any other previous mayor. And, it keeps the Council in the blind, not having enough staff themselves, they have to wait for the Mayor to present them with a change or new program. They have been, for all intensive purposes, fishbowled.
Now, if we had a Mayor with vision and creative ideas that protect all residents of this city, that could work. But, with his bias, old boy politics, and fearing the end of his rein with no thoughts on what else he is qualified to do, the Mayor is single-handedly taking the city in a direction that has changed the very core of our urban principals. Out goes the preservation of neighborhood character, out goes the uniqueness of communities, out goes a city for all, and out goes the participatory government.
So brace yourself for more of the same decision-making. It's an interesting contrast to those old days when we saw the now famous bilboard in the 70's say, "will the last person leaving Seattle please turn off the lights." Today, we can have our own version that says, " will the last low and middle income persons leaving Seattle please throw out the trash."

Art

Posted Tue, Jun 17, 9:44 a.m. Inappropriate

COUNCIL TO THE RESCUE: Wonderful article, Kent.

"Seattle codes are measured by the pound, and even developers have to hire specialists to find loopholes to getting around inconvenient details"

The city council over decades has created a monster rivaling the US Tax Code . I agree with you about the DPD staff (in fact I agree with you about almost everything you wrote), it's not them. It seems to happen like this:

1. The city council hears from the citizens who are critical of new buildings. The citizens want the building STOPPED.

2. The council realizes that they cannot stop the building, where, after all, are we supposed to live?

3. As a sop to the irate citizens the council passes regulatory measures to bring the developers to heel; "we will make them file paper", or, in environmentally critical areas, "we will make them hire consultants" and, of course, "pay handsomely". Most of all "we will slow them down".

4. The council slaps high fives all around and the land use chair vows to find another gig.

5. Council opens new hearings on high rents and housing shortage.

We seem to have the worst of both the market economy and the directed economy.
kieth

Posted Tue, Jun 17, 11:59 a.m. Inappropriate

To follow the money or...: Excellent start, Kent. Let's have more about where the Mayor's Department of Planning and Department's budget comes from. Who are these developers and where do they come from? How about a breakdown on the permits in terms of how many of them involve tax breaks, building code exemptions, and SEPA review. What "planning" does DPD do? What about this Design Review approval thing - you know, where the plans that are approved look nothing like what ends up being built? And, other than the Mayor, who is DPD accountable to?

Posted Tue, Jun 17, 12:06 p.m. Inappropriate

logical flaw: Good analysis of the inherent and evolved conflicts within the agency. However, I have to pick a nit...

You said:

Seattle's housing is among the costliest in the nation. As we increase density, land becomes more valuable and prices go up. Given the limited amount of Seattle real estate, new, denser, gentrified development is creating unaffordable housing.

Hrrrmph. It frustrates me when we you confuse correlation and causation. Land in the Seattle area has become more valuable and prices have gone up because want to live here. Demand drives value and price. Density is an after-effect of that demand. Had we not allowed density, existing housing in the Seattle area would have mushroomed in price even larger than we have seen. In addition, denser development does not, ipso facto create unaffordable housing. In fact, a synthesis of the recent Eicher study with the earlier Brookings Institute research leads to a conclusion that unaffordable housing has three main causes: 1) lack of supply; 2) regulatory red tape; 3) exclusionary zoning.

Let's get our underlying assumptions in check so that we can properly analyze the more difficult questions you raise later in the piece.
rycarson

Posted Tue, Jun 17, 7:10 p.m. Inappropriate

It sure is fun and easy to criticize: I, frankly, find this article lazy.
Vague complaints like "Seattle Codes are measured by the pound" have no substance and are made to create hype. Specifically, who are these folks telling you "It may not be too much to say DPD is broken and out of control, as many feel who deal with it closely". I have to interpret code every day and work with DPD all the time and they have handled this crunch incredibly well. It appears to me that you are throwing around unfounded criticism.
By the way, Seattle has a code development process completely open to the public. If the public wants better codes then they need to show up with ideas and take the time to make their great ideas work. I've participated for many years and there are very few folks that show up.
To understand the codes you have to take the time and make the effort to sit down and read read read and ask questions. Are you trying to make a case that there's a certain amount of effort that is acceptable and more than that is not?
I'll guarantee you that the typical person that complains about code complexity has not made much effort to understand the code, be they professional consultant or otherwise. It is not that tough but it does take time and effort. DPD has done an outstanding job, with a severely underpaid staff. And, I find they do a great job with consistency. No one wants one interpretation on one project and a different interpretation on the next. The code has to be very explicit to expect consistentcy. Seattle has worked very hard to build code language that is explicit and it takes some extra words to achieve that sometimes.
scottr21

Posted Wed, Jun 18, 10:12 a.m. Inappropriate

DPD?: Ever since Mayor changed the name from DCLU (Dept of Construction and Land Use), the handwriting was on the wall - developers win. Land Use?

NE Seattle resident.

Posted Wed, Jun 18, 1:14 p.m. Inappropriate

Building Industry Association of WA: BIAW - has taken over control of WA legislature on Liability Insurance,Impact fees, Arbritration v Lawsuits, lukewarm Warranty standards and 500% increase in land values.

Alley Vacation - Alley ways are given to developers at discounted prices thru the DCLU

Soil Mitagation - Ex Gov Rossalini bought a dry cleaners on James street and as the landower was responsible for clean up of the tainted soil... Harborview and King County bought the land and the taxpayer paid for the clean up!

Seattle Utilities Hookup Inflated costs - A remodel of a building within view of the space needle was charged $100K for utility hook ups by Seattle Utilities...

Security - SPD holds developers hostage to contract for security services by the SPD union ....

Design - look at Downtown projects developed in the 1987's v 2007 Qwest phone company building has public park and courtyard on street level all around the project are 10 projects that have increased stories of development but no street level real estate open to the public... Pacific Place has Millions in public financing thru bonds with an interior courtyard only open to invited guests ... others are arrested for tresspass...!

SLUT - should be named Paul Allen Express - $50 million in development costs, 100,000 bus hours @ $150 per hour = $15 million per year of LOST bus route hours in other parts of the city and DUPLICATES existing bus routs on Eastlake ave, Fairview ave and other northbound routes to Fremont ...

Tear Downs - Tear Down all single family homes and Multi family areas and build 4-6 slum units on 15% of city zoning... Future Slums

Impact fees - Puget Sound Regional Gov projects $100 Billion in impact fees for sewer,water,power,drainage, roads, not to maintain existing Infrastructure but NEW IMMIGRANTS to the region @ 4,000 people per month according to www.wa.gov - lets start charging immigrants the true cost of development like most other states do. We are held hostage to BIAW, Queen Christine, King Chopp and the crazy Nichol...

WA Impact fees - will require $400 billion in new investment on the backs of taxpayers as the BIAW runs with the profits...

DCLU - does carry the water for BIAW as well as the "Wooden Nichol"

Regionalize Economic Development,Transportation and Planning - We have 100 planning departments local DOT's agencies it is time to consolidate and

Bold hold elections of a governance board !
What would happen if Cities and counties did not regulate these agencies...
Time for an iniative

Tax Cuts - WWW.wa.gov Revenue Dept lists $56 billion in tax credits primarily to business and developers time for a review... tax exempt are real estate sales, doctors, dentists and xmas trees in the $56 billion....

yes time for change in Real Estate Development... taxes and open regulaltion

harborview - posts a development notice several years ago and it has a phone number to call to track the permit process - the DCLU representative was not listed on the Notice and the actual landowner posted ... DCLU gave me the run around never did get the proper DCLU rep to testify on the project.

Posted Wed, Jun 18, 1:35 p.m. Inappropriate

$125 per hour: scotr21: "....with a severely underpaid staff."

On a 2007 permit application I paid $125/hr for review time (not overtime). DPD staff may indeed be underpaid but it's hard for me to see just why.

As you imply, the complexity of the code discourages intelligent, concerned citizens from involvement. I do not believe the complexity is necessary. I have never had success in finding land use information with Seattle's "Link" apparatus. The Land Use Code is forbidding and accessible only to those who use it constantly in their work (as Kent says). This contributes to the surprise factor when eight tiny lots are carved out of the house next door. I am not saying that is necessarily bad it's just not predictable or easy to reconcile with the past fifty years of development.
kieth

Posted Sat, Jun 21, 3:37 p.m. Inappropriate

Follow the money: Kent has it about right. And our present council could care less. All they do is salivate over anything the mayor proposes or that increases our taxes for them to spend. It is not just demand that makes housing so costly in Seattle. The council could act to stop developers from turning two affordable houses on two lots into three lots with mega-houses and mega prices. For example, in View Ridge I can point to recent construction and sales where two approximately $400,000 houses (one a recent remodel) were demolished; the lots re-platted into three; and, $1,400,000 houses constructed on each. Why can't the so-called progressives in this town elect people who actually give a damn about the middle-class?

fshi

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