Seattle's Pioneer Square: a whole lot of building going on?
Paul Allen's sports operation strikes a deal with King County and developer Kevin Daniels, and lifts its opposition to a long-awaited apartment project between Pioneer Square and the football stadium.
Sue Frause
After years of anticipation and a month of bluffing, feinting, and negotiating, a deal has finally been struck, in outline at least, to let a long-awaited housing development on the north parking lot of the stadium formerly known as Qwest Field go forward. Members of all four parties to the negotiations — King County, the Washington Public Stadium Authority (which owns CenturyLink Field), Paul Allen's First & Goal (which owns the Seahawks and operates the stadium), and Daniels Development, which is building the project — say a deal is imminent or about to be announced. “Everyone is hopeful,” says county spokesperson Frank Abe.
“I can only speak to our role in this,” developer Kevin Daniels said Wednesday (Sept. 21). “We've reached general agreement with all the parties. We’re waiting for the legal papers to make sure everybody is in agreement on all points. It’s one thing to reach agreement sitting around the table. It’s another to do it on paper.”
Daniels and King County have long been eager to get the project moving. County officials (together with their city counterparts) envisaged housing on the north lot clear back to 1998, when Allen and company persuaded voters to replace the dowdy Kingdome with a new stadium. In 2007 they struck a deal to sell the lot's north half to Daniels for $10 million, then sat and waited while the housing market tanked and financing dried up. Those stars have finally lined up once again: "We’ve been ready to break ground for six weeks,” says Daniels.
But in early August the PSA threw a spanner in the works. Its board passed a resolution declaring that the county had failed to live up to a 1998 agreement to commence redevelopment of the North Lot by 2008, or otherwise cede it to the PSA. Other officials insist the county amply fulfilled that obligation by requesting proposals and selecting Daniels, who began design and permit work before the deadline. “The PSA resolution is quite stunning, a shot across the bow,” Gary Johnson, the city's downtown planning coordinator, said in August. “There was general agreement that development activities had begun.… I don’t think [that provision] was a bomb waiting to go off.”
The ticking bomb was the language — complex and contradictory — in the various agreements specifying how the developer was to replace the North Lot’s 491 parking spaces. First & Goal got their use gratis, collecting about $2 million a year in revenues and paying a share to the PSA. During that time the lot has become increasingly important as a staging area for boat shows and other big stadium events. The agreements declared that the developer would provide replacement parking satisfactory to the PSA. This was originally to be a garage on PSA-owned land at the lot’s southeast corner, next to the stadium; the Washington State Department of Transportation would lease the PSA another lot for staging and additional parking.
But then WSDOT withdrew its offer. Daniels offered to build the parking garage anyway, but the PSA declared it “unworkable and impractical” without the complementary lot for staging. Daniels made various other offers – a reported $7.5 million in compensation, or a parking garage at his project's east end, where he plans eventually to build 410,000 feet of office space. But the PSA found them inadequate, declared he’d reneged on his commitments, and threatened to claim the entire lot, even as its spokespeople and First & Goal’s assured reporters their employers really did want to see it get developed.
But there are reasons Allen's group might not cry so hard if the project stayed in limbo, beyond all that great parking. The 444 apartments Daniels plans (plus condos in a later phase) may prove troublesome neighbors when their occupants bristle over stadium noise and rowdiness. (Just ask the bars in Belltown about sharing turf with upscale residents.) And Vulcan, Allen’s development firm (which sometimes seems indistinguishable from First & Goal), is meanwhile building a whole new downtown two miles to the north at South Lake Union. It has lured away at least one important Pioneer Square tenant, the architects NBBJ, and may well snag more. A major new development at the south end of downtown will be competition.
All this was a recipe for dragged-out negotiations, with perhaps a substantial chunk of change transferring from Daniels to the PSA. Their wrap-up will bring jubilation at City Hall and Pioneer Square. Daniels’ project is the great hope for reviving that troubled district, which has just lost the second of two retail anchors (Masin's Furniture, following the Elliott Bay Book Company). Daniels' tenants will provide critical social mass, a counterweight to the missions, street people, and drunken revelers who now dominate the square, especially at night, and scare off everyone else.
The Alliance for Pioneer Square has already scheduled a party Monday to celebrate. Should the deal somehow fizzle before then, it can be recast as a rally, and an angry mob of Pioneer Square architects, liquored up on chardonnay and armed with very sharp-looking eyeglasses, can storm the stadium.
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Comments:
Posted Wed, Sep 21, 7:42 p.m. Inappropriate
Assume your PSA refers to the Public Stadium Authority, not the Pioneer Square Alliance.
Posted Thu, Sep 22, 8:08 a.m. Inappropriate
The building of the football stadium (and as the article points out) the luring of Pioneer Square businesses to South Lake Union has been nearly fatal to Pioneer Square. When the stadium was proposed, the art galleries in the Square banded together to argue that the sports crowds would muscle out the art-goers. Most unfortunately, that has proved the case, and most all of the galleries there then have now left for other areas of the city, or gone out of business. This is turn has left empty storefronts, which means that restaurants and cafes that depend on strolling visitors to the area, have also closed. The move of Elliott Bay Books to Capital Hill, and the recent announcement by Masin's Furniture that it is leaving the Square are further evidence of the damage done by the stadium.
Kevin Daniels is to be strongly commended, and the support for his proposal by the county and city to be applauded. Without the infusion of people living in the area, Pioneer Square cannot hope to redevelop. Occidental Square is undoubtedly the best proportioned, human-scale, non-vehicular public space in the entire city. It is very sad to see the empty windows onto its tree-lined space. That Vulcan would have put up such a resistance to the Daniels plan is yet another sign that their heart is in their wallet. A vibrant city is not a zero-sum game- a strong Pioneer Square is not a threat to South Lake Union. There is plenty of room, and hopefully plenty of business, for both. That a billionaire's company would operate, and be commended for doing so, as if the city belonged to them is bad enough. That well thought-out planning decisions for the good of us all, are held hostage, is reprehensible.
Posted Thu, Sep 22, 8:49 a.m. Inappropriate
"Should the deal somehow fizzle before then, it can be recast as a rally, and an angry mob of Pioneer Square architects, liquored up on chardonnay and armed with very sharp-looking eyeglasses, can storm the stadium."
What a great line. Fair warning that I'm going to borrow it, with credit of course. :)
Posted Thu, Sep 22, 9:16 a.m. Inappropriate
The argument that the current economic condition of Pioneer Square is due primarily to the building of the football stadium seems highly problematic. The Kingdome occupied nearly the same footprint as the present stadium, and hosted as many football games (8 regular season, 2 preseason) annually.
The economics of Pioneer Square are likely quite complex. Years ago, when NBBJ, Elliott Bay Books, and Masins were all still in Pioneer Square, the collection of Pioneer Square buildings owned by Sam Israel were in generally poor condition and some were vacant above the first floor. Since then Samis has restored/renovated many of these buildings and has seen the level of commercial and residential use increase. Similarly, buildings like Tashiro-Kaplan have been expanded adding users/residents. Shouldn't these changes have improved conditions?
On the other hand, newly rehabilitated buildings, like new buildings, must bear the costs associated with new construction through increased rents. This point (the importance of old buildings to diversity) was made by Jane Jacobs 50 years ago. Have the rents in Pioneer Square buildings increased as a result of these improvements?
One might wonder what effect the loss of the Waterfront Streetcar has had. I realize this may seem minor, but the Waterfront Streetcar did serve as a conduit for tourists visiting Pioneer Square--it provided an easy way to get to Pioneer Square from Pike Place Market and the Aquarium. Do tourists now skip Pioneer Square because there is no easily understood direct and engaging conveyance?
Another question: Decisions by NBBJ, Elliott Bay Books, and Masins may seem similar, but might each have been driven by independent considerations? NBBJ moved to Pioneer Square when historic preservation and adaptive reuse were the new "big thing." Now the new "big thing" in architecture is the return to modernism and an emphasis on building performance, especially energy and resource conservation--Alley 24, where NBBJ is now headquartered, is a demonstration of just these issues. Publishing and book selling are clear in transition--many independent booksellers have disappeared. Elliott Bay's decision may have been as much about its perception of the future of book sales as it was about Pioneer Square.
Nonetheless, what the sources of the current condition of Pioneer Square, I fully agree that building on the North Lot is a significant positive development and is to be applauded.
Posted Thu, Sep 22, 10:18 a.m. Inappropriate
Mr. Ochsner is correct that the economics (and I would add the politics and social realities) in Pioneer Sq are quite complex. For example the city and county have for years put social service providers there that were not wanted elsewhere. It is easy to go on-line and look at the quotes from the owners of Elliott Bay Bookstore when they announced the closing of their store in Pioneer Sq. They specifically blamed the negative influence of the sports crowds, how they filled the parking spots and rarely visited the bookstore. When the football stadium was built, there was of course already the new baseball stadium. That there are now two stadia creates a very different impact than from the Kingdome. Pioneer Square was an arts district, it is now a sports one, and that is simply not sufficient to carry the businesses there 365 days a year.
Paul Allen forced the football stadium on the area. It is very good news that he and Vulcan were not able to force development on the North Lot to go away as well.
Posted Thu, Sep 22, 10:50 a.m. Inappropriate
So much for aesthetics; both the Kingdome and Alaskan Way Viaduct provided decades of events and access to a lively and vibrant Pioneer Square. The 2 new stadiums are essentially placed in the exact opposite sites for best use. Safeco Field should have been located much closer to Pioneer Square and the football stadium further to the south. Timing was not in sync and the Mariners wanted to maximize concessions in house and not have as much competition from the Pioneer Square bars and eateries. As for the new development that will wipe out staging areas, parking, tailgating, etc? It appears forced and contrived and out of place.
Posted Thu, Sep 22, 11:34 a.m. Inappropriate
"Paul Allen forced the football stadium on the area."
The voters of Washington State approved the issuing of bonds that made up the public portion of stadium financing. Allen put up his own money to buy the Seahawks and to pay part of stadium construction. He also guaranteed that he would pay for any construction cost overruns.
Posted Thu, Sep 22, 12:18 p.m. Inappropriate
Eric,
Your speculation on why Vulcan might be happy if the development was stopped is way off base. We don't oppose the development, and neither did First & Goal, the entity that has been involved in the negotiations. First & Goal has always supported development of the North Lot and only wanted to make sure that the parking issue was resolved as covered in the original agreement.
I think it is unfortunate that you chose to speculate and address motives as you did. I also don't understand why during our lengthy coversation a few weeks back you never raised these issues or asked about them yesterday when you spoke with someone else at Vulcan. If you think Vulcan is opposing that development because of fear of competition for South Lake Union, wasn't that worth asking us about?
David Postman
Vulcan Inc.
Posted Thu, Sep 22, 2:13 p.m. Inappropriate
great piece, but I think the history is a little over-simplified. A few more factoids: Pioneer Square has been a baseball, football and exhibition center district since the Kingdome was built in the 1970s, and an arts district since a few years before that. Since that time Pioneer Square has gained competition for prime tenants from Fremont (Adobe), Interbay (Immunex- now Amgen), South Lake Union (NBBJ), and Capitol Hill (Elliot Bay Books), all areas that were not considered prime territory until that last 20 years. In addition, the demand for new space in South Downtown from 1997 until now was mostly absorbed by the Union Station redevelopment.
The point is that as more neigborhoods become desirable, there will be competition among them. The article captures that fact to a degree, but the phenomenon is not limited to competition from SLU.
Hopefully, the players here can make this work because what Kevin Daniels has in mind is what Pioneer Square needs to stay in the game. This article shines some light on Vulcan/1st & Goal and the Public Stadium Authority to do the right thing.
Posted Fri, Sep 23, 9:06 a.m. Inappropriate
The killer to Pioneer Square's position as the retail place to be was the ruthless parking enforcement by the City. Tickets were handed out en-mass by the city with a get-the-money attitude and the result was that the fine dining establishments fled the area and resettled to the then refreshed Pike Place Market. All the great bars and restaurants of the 70's were sold and re-sold until there was nothing for the owners to do but bring in live music as a last ditch attempt to stay solvent. Hence the Joint cover era got started and Pioneer Square became by default a live music area catering to sports crowds by night and cultural interests by day. Norm Rice was the Mayor who turned his back on Pioneer Square and used it as a dumping ground. The issues that are faced today were obvious problems 20 years ago but little has been done and little continues to be done. King County residents voted against the football stadium but a special vote paid for by Paul Allen squeaked by on less than a fraction of 1% approval. Costs hidden by the Public Stadium Authority-the costs of re-reouting car and train traffic for example-have added to the huge burden that these tax revenue driven business create. Unfortunately I can for see the blight of Pioneer Square moving north through the equally blighted municipal district, along the ghost town of Third avenue and eventually striking into Westlake Mall. Make no mistake, drug dealers rule downtown streets. It's only a matter of time before customers follow the retailers and say enough of the panhandling, the excrement, the vehicle ticketing, the nasty blend of late night bars and social service housing, and they too leave. Is South lake Union the solution? Maybe. But I think it will be a long time before Seattle shows up again on anyone's top ten places to live.
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