How Seattle grew itself a new 'downtown'
Seattle's CBD is increasing spelled SLU. Here's an account of the remarkable, somewhat accidental rise of a hot commercial and residential zone called South Lake Union.
Courtesy of Amazon.com
George White
One of the recurrent trends in Seattle history is the way its downtown business district keeps migrating northward. This leapfrogging has happened three times now, the most recent being the creation of a whole new downtown at South Lake Union. As Danny Westneat notes in a column in The Seattle Times, this spectacular success story has been little noted or celebrated. Maybe that's because we're not sure we like what we got?
Short history. Downtown began as Pioneer Square, which had drainage problems and got built out in the early 1890s with buildings that were pretty stubby. Next stop: Second Avenue around Columbia, where we built a financial district in boom period before World War I. Then came the big leapfrog by the department stores, led by Frederick & Nelson in 1918, looking for cheaper land to expand their offerings, and so our downtown crossroads became Fourth and Pine.
The new hot zone is South Lake Union, with iconic companies and their campuses such as the Hutch, Amazon, a whole research complex of the University of Washington, and the Gates Foundation.
Three factors made this happen, though I'm not sure we knew what we were doing. The first was the 1989 initiative (called CAP, for citizens' alternative plan) to cap the height of tall office buildings in the heart of the central business district. People like former City Councilmember Peter Steinbrueck were wary of dark, windy canyons, and those who had built the new towers were desirous of protecting their views and high lease rates. So the cap was installed and the safety valve of much higher buildings to the northeast, the Denny Triangle, was given as compensation. Up went the new buildings, mostly condos, in that northerly direction.
The second factor was the Seattle Commons proposal in 1995 for a 61-acre park south of Lake Union, as a magnet for upscale residences and commercial development. The public rejected the plans (twice), but the high-profile battles put the region into play, though the Fred Hutchison Cancer Research Center and REI had already discovered it. The Commons battles also brought Microsoft co-founder Paul Allen into the game. Allen had given the Commons $20 million to be able to buy key properties before land values zoomed upward, and the land thus purchased reverted to him when the voters nixed the Commons. Suddenly we had an inadvertent developer named Vulcan, loaded with cash and ideas, on the scene.
The third factor, less publicized, was the desire of the University of Washington to develop a kind of research campus and technology incubator along the lines of the Stanford Research Park. South Lake Union, with the Hutch already there and fairly easy to get to from the UW, became the place, with the initial focus on biomedical companies. That gave Vulcan a big, well-heeled tenant, and up went more buildings.
Mayor Greg Nickels, who had studied at the UW, was an eager partner, probably more to help UW and the technology transfers it was stimulating than to help Vulcan. A kind of deal was worked out, or stumbled upon, where Vulcan was the lightning rod for criticism while the UW moved quietly into the neighborhood.
Nickels also accelerated the rise of SLU by refusing to allow such new-economy development in two other competing areas, Interbay (between Queen Anne and Magnolia) and SoDo (south of Downtown and the stadiums). Previously, Mayor Paul Schell had cleared out the traffic patterns around the defunct Bay Freeway, helping rationalizs the scattered Vulcan holdings and prepare the way for Lake Union Park.
Eventually all these forces, along with the real estate bubble of 2002-08, combined into a kind of chain reaction. Amazon committed to the area, as did the Gates Foundation. Vulcan found its stride and was dominant enough to provide a kind of master plan for the area. You know you have a new hot zone when Tom Douglas begins opening new restaurants every block!
It all adds up to an impressive story of urban densification. Here's a summary from a recent report by Mike Mann on the area:
Between 2004 and 2010, the real estate development activities in Seattle’s South Lake Union neighborhood have exceeded the projections incorporated in Paul Sommers’ 'The Potential Economic and Fiscal Impacts of South Lake Union Development' report. Since 2004, the assessed value of newly constructed building exceeds $1.1 billion. In this time frame, the neighborhood has attracted over 13,000 permanent jobs, achieving over 72% of the City’s 2024 Comprehensive Plan goal for the South Lake Union Urban Center. This magnitude of construction and economic activity has resulted in an average of $5 million per year in additional tax revenues to the City of Seattle.
There are problems, not surprisingly. Traffic congestion is likely to be the main one, since the area badly lacks east-west corridors. One partial solution, two-way Mercer, is locked in controversy; another, more crossings over the Aurora gulch, depends on there being money from the deep-bore tunnel project. Another problem is the relentless seeking of high rents and the costs of all the new buildings, pushing out more characterful uses and jeopardizing the incubation aspects of the area. (Startups need low rent.) A third tradeoff is a kind of hollowing out of the old downtown, as new companies locate north and funky startups head for Pioneer Square and Fremont. Downtown is for lawyers and tourists.
Still, what city wouldn't want to have this kind of smart urban densification? Who wouldn't want the parade of the world's leaders to the Gates Foundation and nearby hotels and watering holes? What could possibly be wrong with concentrating brains and technologies in a fairly coherent neighborhood?
There's an echo of this story of leapfrogging downtowns taking place on the Eastside. Bellevue has built up an impressive 20-block downtown, with major mall, handsome park, hotels, Microsoft-filled office towers, condos, and commercial spaces. But there is pressure to build a Greater Bellevue by leaping over I-405 and building transit-oriented projects along the Sound Transit route in the Bel-Red corridor leading to Microsoft.
Some, like Bellevue Square developer Kemper Freeman, argue for concentration and build-out of the core. His allies on the city council, fiscal conservatives wary of spending tax money on infrastructure for the expanded downtown, agree. Others, including Microsoft and developer Wright Runstad, push for an expanded Bellevue, in part to capture some of the businesses that South Lake Union is nabbing and to house such big-city features as an arena for major league hockey and basketball teams. The fight over Sound Transit's coming to the Eastside, which Freeman-backed I-1125 would jeopardize, is a proxy battle in this bigger war.
It's an intriguing debate. Curiously, such a debate does not seem to have been waged in Seattle, where leapfrogging comes naturally. Nor is it a debate, I think, that the CBD compacters can really win. The market forces for leapfrogging out to cheaper land and then upzoning it to a new, highly valued node of activity are normally too strong for politicians, planners, or "downtown establishments" to stymie. I suspect this pattern is also one of the reasons that Seattle has been able to continue growing and generating jobs and taxes and world-beating companies.
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Posted Mon, Aug 29, 7:01 a.m. Inappropriate
Part 1
“The fight over Sound Transit's coming to the Eastside, which Freeman-backed I-1125 would jeopardize, is a proxy battle in this bigger war.”
There are two real legal threats to the East Link plans, and neither of them has anything to do with I-1125.
Section 3 of I-1125 supposedly would preclude WSDOT from handing over “lanes” to Sound Transit. Here’s the inititiative:
http://www.sos.wa.gov/elections/initiatives/text/i1125.pdf
That part of this proposed legislative enactment “by the people” is entirely superfluous. WSDOT already is prevented from transferring highway infrastructure in which gas tax revenues had been invested if non-highway use (such as by trains) would result. Article II sec. 40 of the state constitution limits WSDOT in that way.
Hundreds of millions of dollars of those restricted assets have been invested in building, maintaining, improving, and engineering those I-90 highway structures across Lake Washington, so the constitution already is a legal barrier to this proposed infrastructure handover. Moreover, at the end of the “Freeman v. Gregoire” majority opinion a couple of months ago the justices hinted broadly that constitutional provision precludes WSDOT from transferring that infrastructure to Sound Transit.
The second legal barrier to East Link is that WSDOT's enabling statutes require it to improve and maintain highway infrastructure, and none of WSDOT's statutes allow it to “surplus” highway infrastructure with such huge present and future utility to the driving public.
I’d ask any lawyers or judges reading this to weigh in and let everyone know if they disagree with the above. Problem is, apparently no WSBA members know how to log in and comment on Crosscut stories.
Posted Mon, Aug 29, 7:04 a.m. Inappropriate
Part 2
I-1125 was drafted by Sound Transit’s lawyers, in the same way they drafted I-776 and I-1053. Eyman is their front-man for these essentially-deceitful litigation-magnets. He only plays the part of an enemy of that taxing district. Freeman also is a friendly-enemy of that taxing district, as can be seen by the bogus, improper legal claims he raised in the supreme court writ action that just wrapped up several months ago (now re-filed in Kittitas County, an improper venue). Freeman and his dishonest lawyer Talmadge did not even seek discovery on the issues of the extent of the infrastructure that would be transferred and the amounts and purposes of the state highway trust fund spending in that corridor. That is critical evidence for a proper Article II sec. 40 claim. That bogus writ proceeding was rejected as premature (the deal hasn’t been done and it may never be done), and the new action in Kittitas County likewise is premature for those same reasons.
The real purpose of I-1125 – if it passes – is to generate litigation, so the governments’ lawyers can get back in front of the dirty justices who act dishonestly time and time again to abuse individual taxpayers when requested to do so in “friendly-enemy” lawsuits. If it is not approved, I-1125 will serve the purpose of providing Sound Transit’s PR team with material (“There now is no legal barrier to East Link!!!”).
This piece says “Freeman” backed I-1125, but it was his development company that provided the money. That means any of the developers, contractors, etc. Freeman Development Corp. contracted with could have provided the money. The interests that would get rich from the proposed Bel-Red road projects could have provided the money because litigation relating to sec. 3 of I-1125 could weaken the provisions of Article II, sec. 40.
Nobody who matters truly believes the passage of I-1125 would prevent the proposed WSDOT-Sound Transit infrastructure handover. That is evident because that deal has not been completed already. If I-1125 presented a real threat, Paula Hammond would have declared the infrastructure surplus, and she (as WSDOT head) and Sound Transit’s board would have signed off on the “airspace lease” the term sheet contemplates. Subsequent litigation can not impair an existing contract, per the constitution.
WSDOT and Sound Transit have not acted to render I-1125 completely moot in advance by completing the lease agreement they’ve been talking about for years. Why haven’t they done that? They want an excuse for delay (“Now we have to litigate and wait for that to run its course, instead of going ahead with East Link”).
Posted Mon, Aug 29, 8:17 a.m. Inappropriate
Interbay awaits further development, but as South Lake Union is built out--hey, it's almost done--pressure will increase to develop southward, beyond the stadiums in SODO. There is a tremendous opportunity here, albeit one that is political hara-kiri. Merge the ports of Tacoma and Seattle, ending this expensive and unnecessary internecine rivalry, increase Puget Sound's maritime competitiveness with its real rivals to the north and south, and rationalize the use of valuable waterfront. Seattle may lose some of its Pony Express-like sentimentality for a "working waterfront" but I doubt that longshoremen's commute time will change much. Similar approaches have worked well in British Columbia and San Francisco/Oakland. Property taxes are likely to decrease, and chances are we would have to look at fewer stacked ship containers.
Posted Mon, Aug 29, 8:21 a.m. Inappropriate
South Lake Union is more "downtown fringe" than "downtown." It's not designed to be "the" center. Fourth and Pine does that just fine.
It works for big organizations because it gives them something they want -- an urban location with good services around it, with multiple adjoining blocks available, and often full blocks rather than portions of blocks. Or, in cases like Cornish if we're including south of Denny, multiple existing buildings.
Yes, SLU desperately needs east-west connections. Street connections are one of the main reasons I'm a fan of the 99 DBT and Mercer II. At least three other locations need pedestrian skybridges badly: Aurora a few blocks north of Mercer, and the north side of Denny Way over I-5, and something around Harrison over I-5.
Posted Mon, Aug 29, 8:55 a.m. Inappropriate
Funny that the Gates Foundation building is featured as an SLU example. Out of all the development going on in that area, I think the Gates building is a poor example of what we need.
Now, don't get me wrong. The purpose of Gates Foundation and the activity it brings to the area is great. The architecture itself is fine.
The problem is that it's a suburban buiding. It covers a superblock, cutting of pedestrian access through the middle. It has huge driveways and other areas dedicated to vechicles, over proportioned to areas for peds. And the buildings, are too broad. Simply, not urban. Hey, even Bellevue is breaking up their superblocks to allow peds to get through.
Fortunately, I haven't seen this kind (Gates Foundation) of development going on elsewhere in SLU. But, if it does, we will loose one of the strong features of this neighborhood - pedestrian orientation. Our relatively small blocks and many streets are vital to the futures of peds. Let's make sure we keep them!
Posted Mon, Aug 29, 9:32 a.m. Inappropriate
This piece is more balanced than Westneat's, which it mentions, primarily because it doesn't repeat the big mistake of claiming that SLU has increased jobs in Seattle. It does however quote Mann, saying that the area has attracted 13,000 jobs. Mann is reflecting on the difference between pre-development in the SLU area and now. It is flawed to use that figure of 13,000 jobs as a credit to SLU- almost none of the jobs are in new companies or research entities to the city, and the increase in number is largely because Amazon is booming, as it was before it moved. In these migrating 'downtowns', which is probably a misnomer anyway, most all of the jobs have moved to SLU from elsewhere in the city. One can argue that SLU is or isn't a good place, but it should be mentioned that when those jobs are 'created' there, they are uncreated elsewhere. Cities everywhere have forever been reinventing places where the rents are cheaper and spaces more open, its what cities do.
But when a new place is bulldozed and opened to developers, it means that somewhere else in the city is sliding into neglect. The larger question, one that Nick Licata has repeatedly asked about the allocation of transit dollars to the SLU, is what does that neglect cost in other areas. The whiz-kid new buildings in the SLU often claim sustainability. But is it sustainable for the city as a whole when perfectly good older buildings are abandoned? Allen continues to get credit for getting developing SLU- but what has its development cost the city? The quote from Mann says that the development in SLU has resulted in $5million additional tax revenues, is that over what the area brought in before development, or is it in addition to revenues the city was already getting? What does leap-frogging do for the places jumped over?
Posted Mon, Aug 29, 9:36 a.m. Inappropriate
@gabowker: How much more development do we really want to allow on the shifting sands of SODO? http://www.outsideonline.com/outdoor-adventure/nature/Totally-Psyched-for-the-Full-Rip-Nine.html (or http://bit.ly/ojhDOu for short)
@mhays: A pedestrian bridge over I-5 between Denny and Lakeview would be welcome, but might I suggest Republican instead of Harrison? http://www.historylink.org/index.cfm?DisplayPage=output.cfm&file;_id=3261 (or http://bit.ly/n6uSxl for short)
Posted Mon, Aug 29, 11 a.m. Inappropriate
From above, (Startups need low rent). Can anyone confirm any of the rental rates for all the new Tom Douglas restaurants in SLU? Low rent would be advantageous in a very tough restaurant climate and at least 2 more closed this past weekend in Capitol Hill and Eastlake neighborhoods. Nettletown and Tidbit probably are not relocating to SLU. What are the rental rates for all the new SLU restaurants?
Posted Mon, Aug 29, 1:07 p.m. Inappropriate
Benjamin, Republican sounds great, particularly if there's another crossing at Denny. Either way, it would be very well used. Looking at an aerial photo, it looks like Republican has more room for columns etc.
Of course ADA would require this to be a large project...no simple stair and bridge. A ramp system would be gigantic so an elevator seems like the realistic solution. This would force another benefit...an easy bike cheat-cut up the hill.
(Your link came up to a blank page on Historylink.)
Posted Mon, Aug 29, 1:20 p.m. Inappropriate
The enormous pledge of tax payer’s dollars by our recent and current elected leaders for SLU are not appearing as frequently in these little PR "newlettes" like this one and Westneat's latest in the Times. For a reminder, with numbers and a perspective befitting these hard economic times, you can still visit:
http://www.zipcon.net/~jvf4119/SLU%20Costs.htm
Posted Mon, Aug 29, 2:58 p.m. Inappropriate
@mhays, sorry about that. Try the short version--it seems to work. http://bit.ly/n6uSxl
Posted Mon, Aug 29, 3 p.m. Inappropriate
The other problem with SLU besides the Aurora trench is the I-5 trench. Getting up to Capital hill is a pain from SLU. You can go through one of the worst intersections at Fairfiew, Denny & Boren, or go over the top on Lakeview.
Any sort of pedestrian ADA compliant facility would be huge if ramps were used. But without some better access, all of the housing on Capital hill is effectively cut off from SLU. What should be an easy walk or bicycle ride is a pain in the traffic.
Posted Mon, Aug 29, 3:03 p.m. Inappropriate
Oh, and SLU is not a "downtown" by any means. No decent post office, almost no retail. Only a couple high priced eating places (Tom Douglas prices dominate). It feels more like an expensive add on to a suburban city, especially with Whole Paycheck being the grocery store.
It's one advantage is that while a bit of a walk, it's possible to walk to downtown or the foot of Queen Anne.
Posted Mon, Aug 29, 3:15 p.m. Inappropriate
It would be an easier walk if the slanty part of Westlake wasn't designed for cars, with pedestrians forced to stair-step (think in plan) along much of it, with lotsa delays. Even so, all but the farthest parts of SLU are within pedestrian commute distance for much of the CBD.
Nice staircase Benjamin.
Posted Mon, Aug 29, 8:23 p.m. Inappropriate
Thanks for this piece, the kind of story that keeps me reading Crosscut. I wasn't here for the Commons debate, but I'm glad it failed. Just what Seattle doesn't need, a 61-acre park that runs out to Lake Union. As it is, I'd like to see an Amazon employee make it to the Lake Union waterfront and back over lunch. Still too much open space! Not suggesting we need deep Manhattan-like canyons, but look at the photo accompanying the article. No danger of that in SLU. Heck, there's grass growing on the garage at Gates Foundation. I welcome the growth of SLU, don't think it's even close to having the density of a true "downtown" (look again at the photo), don't think it would have been better as a big empty park (that's why we have the rest of Washington State, much of it on full view from the city), and do wish it had fewer traffic bottlenecks.
Posted Tue, Aug 30, 12:49 a.m. Inappropriate
Matt the Engineer at his blog Orphan Road has been championing aerial gondolas at his blog Orphan Road-
http://www.orphanroad.com/blog/2011/03/seattles-flying-tram-system
Just the thing for crosstown transportation for pedestrians and cyclists.
Posted Tue, Aug 30, 12:02 p.m. Inappropriate
This state once had something called 'progressive taxation' for vehicle tabs, people who bought more expensive cars paid more for the privilege of driving on state roads. But the voters threw that system out for a flat tax, and so any programs paid for out of those revenues hit the the less fortunate the hardest. So if those programs need infusions of money, either the poor get hit or the program is drowned in Grover's Bathtub. The popular monorail was killed because of the narrow taxation made the finances a nightmare, and putting all transit improvements on the back of the regressive tab fees is a prescription for killing future improvements. This is Galt's world.
Posted Tue, Aug 30, 12:03 p.m. Inappropriate
Oops, wrong thread-
Posted Wed, Aug 31, 10:44 p.m. Inappropriate
Seattle personifies the maxim, "The inmates are running the asylum." Opulent wealth wasted on monumental delusions of grandeur. Only one visit need reveal the Seattle motif: a repulsion of natural surroundings. South Lake Union becomes an regimented assortment of glass tower windows overlooking a sewer of sparkling traffic. Roadkill is obligatory humor like giant orange traffic cones screaming Death in a Ford Taurus. Nearby a hammering man chained to a furnace curses his lot and passing tourists awaiting their wrought iron payment to spend erasing this memory.
Posted Fri, Sep 2, 10:53 a.m. Inappropriate
Doesn't the emergence of SLU pretty much eviscerate the arguments of Pro-Density Advocates?
As in, what Paul Allen did was essentially create an "exurb" inside the old urb!
The bitter broken Old Downtown has given way to drug pushers and mobile mental outpatients.
So, he moved everyone to a new "suburb" of downtown.
Thus, he did what middle class people have been doing for decades...escaping The City for a cleaner, lower cost and more crime free, life...
Posted Sun, Sep 4, 6:14 p.m. Inappropriate
Well said, jabailo. SLU is characterless office park...
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