Chris Hansen: Enough patience for Seattle process?

In an exclusive interview, the hedge-fund manager discusses traffic, what he sees as the unfairness of putting all traffic fixes on a sports arena, a sports entertainment district, and his own role.

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When we look at light rail, the tunnel and all the transport options for SoDo, we say when our arena comes, how can we alleviate the stresses for our specific events? That’s fair to turn the discussion to that. To saddle our group with the promises made earlier is not fair.

With Mercer Street a civic priority, it doesn’t seem as though the city has the road improvement budget to take on a huge project in SoDo.

I know. I acknowledge that. It’s not that’s it’s not my problem. Of course it’s my problem. If we succeed, we’re going to be neighbors here. But making it ONLY our problem is what’s unfair. The Mariners are here, the Seahawks are here, the port, Starbucks headquarters, Burlington Northern . . . others are coming to the area. There’s a whole bunch of constituencies that can help fix the problem.

Thiel: Is it reasonable to expect that the traffic study you have commissioned is going to produce anything new that we didn’t know 10 years ago about needing the Lander Street overpass?

Hansen: Sure. The problem needs a fresh look. It needs to be done. If I were in charge of the port or city, I would ask whether the Lander Street overpass is truly the best option. I don’t know.

I would caution that this traffic study is being done quickly and at a high level. In the EIS (environmental impact statement), there will be a very detailed study. On a scale of 1 to 10 with the EIS being 10, this traffic study is a three or four. It’s to analyze the issues so the city and county councils can use the data to see if the memorandum of understanding (the document that spells out the arena plan and its funding) is a good idea or not.

People would have a hard time objecting to the arena if they could see it didn’t make the problem worse. A big part of things is parking. The arena completion is at least three years out, close to the time that light rail and the tunnel (replacing the Alaskan Way viaduct) will be ready. It’s important to look at solutions that work for four or five years after that, rather than spend money on temporary problems before the transportation “lift” comes.

Thiel: Your nearest potential neighbor, the Mariners, came across as adversarial in their complaints about parking and traffic.

Hansen: I would be the first to say that the Mariners got a bad rap. It’s my job as a neighbor to extend an olive branch to work on things together. I’m a Mariners fans. They have justified concerns. I can’t speak to their past intentions. I’m not privy to their previous behaviors that some might consider against the best interests of Seattle sports fans. My personal view is that the arena project adding parking, helping create an entertainment district, and possibly working with them on their media side would be a great thing for them.

Once they’re given an opportunity to see the pluses we’re bringing, we hope they see us as a neighbor who is a net benefit to them, as well as being responsible to the same fans. We have the same fans, there’s a lot of overlap. Both our customers are the Seattle sports fan.

Thiel: Please review again your reasons for choosing this site.

Hansen: No. 1 is zoning, No. 2 is minimal environmental (displacement) impact. The loss to maritime and industry workspace gets a little overstated. Very few of the businesses (on the purchased property) are maritime and industrial. So the impact on the community is less. No. 3 is transportation, which was a critical asset for us here: The connection to I-90, the ferries, heavy and light rail terminals. I think (King County Executive) Dow Constantine said it well when he said you couldn’t get a spot anywhere in the region more connected to more public transportation than this site. I don’t know why it hasn’t been more discussed.

If you took the same issues pitched against the site about traffic against the other sites mentioned, they wouldn’t fare as well. This is an urban site that’s connected by numerous methods of mass transit that’s within walking distance of where a large number of people work. If it’s advantageous to fans, it’s advantageous to us.

The best comparison is the lift the Giants got from leaving Candlestick Park for San Francisco. They got a lift from attendance and ticket prices. Fans thought Candlestick was an awful experience and AT&T Park is an incredible experience.

A San Francisco TV station recently did a look back to the issues about the new park before the Giants committed to moving. It was exactly the same as ours now in Seattle: Parking, traffic, it’s going to be a disaster. The point is they figured it out. One of the solutions was how they directed street cars and buses to get people in and out. There’s so much parking downtown (after business hours) and you don’t have to move people very far. People adapt to taking a street car for five minutes to avoid the traffic around the arena.

It’s a complex opportunity to adapt and expand the infrastructure in place to move a large portion of the fan base. That’s a long-term solution. There’s an easier, perhaps temporary solution, which is exiting people to downtown, where there is a huge inventory of (after business hours) parking. This is what happened in San Francisco. People aren’t taking the street car from their house, they drive downtown, park inexpensively, and take the transit to the arena.

It was a long process encouraged by the Giants themselves to change behavior. Now it’s clockwork.

Thiel: Beyond the arena itself, how important to the arena project is the creation of an entertainment district in SoDo?

Hansen: I think it’s important. Whatever we do won’t be on the scale or design of LA Live! But it will fit with our community. Having a better vibe around the arena would be great for fans. People would enjoying coming to more games if there were more to do pre- and post-game within walking distance of the arena.

The fan experience at Fenway Park or Wrigley Field is more than just the park itself. Few fans would argue that Fenway/Wrigley experience is worse than driving 20 minutes to a suburban location surrounded by a parking lot, where you get in your car and leave after the game.

Thiel: Will you participate financially in the district’s creation?

Hansen: The economics haven’t been determined yet. But we will take steps to make it happen because it’s at our front door. We’d like to make sure that, at a minimum, we’re creating the right circumstances for this to happen. We own some acreage around the arena footprint that will be used for parking and some for a practice facility.

Thiel: Is there a district in an NBA or NHL market that might be a model for Seattle?

Hansen: The Kansas City Light and Power District around Sprint Center is something more fitting. They don’t have an NBA or an NHL team but the building is a financial success. Our vision is something more like an extension of Pioneer Square, as opposed to big glass, modern-looking buildings. That’s my personal opinion. Other developers may have a different perspective.


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Comments:

Posted Wed, May 2, 7:13 a.m. Inappropriate

Hansen says: "There’s only one direction for downtown to grow. South Lake Union is pretty well filled up. When downtown expands into Sodo, with or without an arena, there’s going to be conflict with the port, railroads and others. That discussion has to take place. Our role is that when we bring night events here, we will make things better, not worse."
--
Not on my watch, bubba. Take your hedge fund sh*t to Bellevue and keep your dirty hands off SoDo.

ivan

Posted Thu, May 3, 12:02 a.m. Inappropriate

Fight you on that, Ivan. Hansen's on my watch, and has full support.

Posted Wed, Jun 6, 7:38 p.m. Inappropriate

Then read this from Crosscut common-not-sense:

http://crosscut.com/2012/06/04/sports/108977/bank-study-debunks-claims-public-benefits-new-spor/?_cs=1#c34866

No more sports arenas to benefit the rich. Let them do it themselves.

Posted Wed, May 2, 8:44 a.m. Inappropriate

What about Rainier Valley? I heard that idea floated.

It's troubling that a guy from San Francisco can come and tell the rest of us what can and can't be done.

You would think there would be more to get done in this city - by elected officials, no less - than expending this kind of energy on yet another sports venue.

westello

Posted Thu, May 3, 12:03 a.m. Inappropriate

Hansen grew up here. How about you?

Posted Wed, Jun 6, 7:38 p.m. Inappropriate

Irrelevant.

Posted Wed, May 2, 8:47 a.m. Inappropriate

Hansen talking about directing where Seattle should grow -- to ultimately force out jobs in Seattle's vital industrial & manufacturing center -- while he plans to continue living in San Francisco is a bit much. The only apparent imperative for building the arena in Sodo is because he (and perhaps yet-to-be-named partners) own land there.

There is a site father south on the cusp of Seattle that was looked at before, I think the old AG warehouse site owned by Sabey Corp., that would be much better connected via roads and rail, and that would not impose additional commerce-stifling constriction on the waterfront terminals and railroads that are so vital to our trade-dependent economy. There are also sites in Bellevue, Renton and even the Key Arena site that could be reworked. But the site in Sodo makes no sense.

Posted Wed, May 2, 11:54 a.m. Inappropriate

Traffic is one thing, but the biggest is the question of whether it makes sense to use public bonding for this sort of enterprise. Could that bonding capacity be used better for other things and would the risk of taxpayer liability be worth the risk?

Citizen

Posted Wed, May 2, 4:19 p.m. Inappropriate

At the heart of the problem is this comment: "There's only one way for downtown to grow. He and others see the aging industrial district as the future home for high-tech and other businesses to replace the maritime and blue-collar businesses that have long occupied the city's south end."

This is precisely the crux of a hedge manager's thinking. Why? If you keep those businesses, they may provide good jobs, tax revenue, nodes for freight to depart from and arrive at, but they WON"T provide outlets for investments of the kind that hedge fund manager's clients are interested in: new upscale retail outlets, high-end residential (condos), "signature" office buildings for Fortune 500 companies. Think what has happened to South Lake Union and you get the idea. That's his idea of development. It is that kind of thinking that destroyed the working waterfront in San Francisco, and will do so here if we let it.

TomB

Posted Thu, May 3, 12:05 a.m. Inappropriate

Hansen has a large following, and support.

The city council should wish they had as much support.

This smells good to me.

Posted Wed, Jun 6, 7:43 p.m. Inappropriate

Get your olifactory nerve checked. Then read the link above. Some people are easily romanced by people who sift expensive paper all day. Go out and work for your dollars then come back and remind me how important a sports arena is.

Posted Wed, May 2, 7:57 p.m. Inappropriate

Tom B, The "working waterfront" is leaving on its own to Tacoma.

Westello, that "outsider" used to live in the Rainier Valley.

And the Bellevue cheerleaders, nothing is preventing anybody on the east side from promoting their own arena proposal, partnering with the county, using the same tax containment idea. All they have to do is compete. The secret back room talks have amounted to nothing in Bellevue. They have been hoping for either a handout from the state or one of the land owners over their to participate.
You see nothing because they have nothing to show for all of their posturing.

SODO is zoned for stadiums, and is supported by every major transportation infrastructure project imaginable. What's left is complaining about things changing by people without the mind or the means to put forward a superior proposal.

Mr Baker

Posted Fri, May 18, 5:38 p.m. Inappropriate

Oh, I'm sure Hansen's patient. He knows that he's dealing with a pack of corrupt, insecure small-town boosters. Look, he's holding out a gigantic wad of cheese, in front of a group of hungry "progressive" rats who never smelled a hunk of cheese they didn't find a way to gobble down. The skids are as greased as skids will ever get. We have the best "progressive" city and council councils a billionaire could purchase.

The arena is a terrible idea. An honest government would have laughed at all this. Even a corrupt "world class" local government would've laughed, like Boston did when the owner of the New England Patriots threatened to move them to Hartford, Connecticut if he didn't get a new stadium at public expense.

At the end of the day, he wound up with a new freeway interchange. And when the Red Sox -- the Red Sox, for God's sakes -- made noises about a "public-private partnership," the powers that be in Boston told 'em to go to hell. That's how "world class" cities handle their cheap shysters. And when they want a boondoggle, like the Big Dig, they get the federal government to buy it for them.

Seattle? World class? Oh please. Who on earth does anyone here think he is kidding? Seattle is a bush league Western boom town if there ever was one. Putty in the hands of any rich cattle baron with a hunk of cheese in his pocket. The "progressives" here are the most laughable of all, because they actually seem to think they're morally and intellectually above it all, when it's plain to see that they're wallowing in the swamps same as anyone else.

NotFan

Posted Wed, Jun 6, 7:46 p.m. Inappropriate

Who cares if Seattle is world class? I'd rather it be smart. We have so much to attend to to upgrade infrastructure, provide a good education to our kids, and take care of our environment which is the jewel in our crown so far. Sports arenas. Good Lord! McGinn is finally disappoint one of his last fans with this crap.

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