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City of Seattle
Mike McGinn, Mayor
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NEWS ADVISORY
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| SUBJECT: Revitalized South Lake Union Would Create at Least 32,000 New Jobs, Report says
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FOR IMMEDIATE RELEASE:
12/2/2003 1:30:00 PM |
FOR MORE INFORMATION CONTACT:
Office of the Mayor (206) 684-4000
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Revitalized South Lake Union Would Create
at Least 32,000 New Jobs, Report Says
By 2025, $16 million a year in new revenue to
fund citywide services
Seattle – An analysis of the potential economic impacts of Mayor Greg Nickels’ plan to revitalize South Lake Union shows that substantially more jobs would be created than previously predicted and millions of additional revenue would come to the city each year.
A draft of the findings by economist Paul Sommers, senior research fellow at the Daniel J. Evans School of Public Affairs at the University of Washington, was released today and showed that, if the proposed investments are made in the area, between 32,000 and 39,000 new jobs would be created in Seattle by 2025. It was previously believed that, when the revitalization program is complete, about 20,000 new jobs could be created.
Counting direct and indirect benefits from South Lake Union Development, Sommers said 56,000 jobs would be created statewide. That’s equivalent to another Microsoft in terms of employment.
"South Lake Union is truly a neighborhood of opportunity," said Nickels. "Nothing is more important to our city’s long-term health than creating good, new jobs. Today’s news is absolutely spectacular. South Lake Union will become a vibrant and vital neighborhood where people will both live and work. And with so many new jobs concentrated in the area, the entire city will prosper."
Nickels added that no other part of the city offers more potential for job growth than South Lake Union.
Nickels has laid out an ambitious agenda to revitalize South Lake Union. The mayor’s plan builds on the biotechnology base already established in the area and envisions a diverse neighborhood with a variety of jobs, residences and family amenities. To make the Nickels’ plan happen, significant investments must be made in a handful of projects essential for the neighborhood to meet its potential and accommodate growth. Those projects include:
- Simplifying traffic connections in the area, including reconnecting surface streets across Aurora Avenue (SR 99) and improving the so-called Mercer mess;
- Connecting the heart of the new neighborhood with downtown via a new street car line;
- Building a new City Light sub-station; and
- Building two new parks and a new wharf.
"We have a rare opportunity to create an incredible neighborhood where people work, play and live," Nickels said. "Creating this neighborhood close to downtown, served by transit and other services, helps achieve the goals of our growth management policies and neighborhood planning. But, in doing so, we’re creating more than a neighborhood. We’re building an economic engine that will give us the resources to help keep Seattle thriving throughout the 21st century."
Nickels also released the results of a study done by the city’s Office of Policy and Management. That study found the price tag for all of these improvements is forecast to be $421 million, of which the city’s share is about $30 million. The rest of the money would come from federal, state and regional sources, the Regional Transportation Investment District and private investors.
Sommers found that the city could expect to see about $247 million in cumulative new revenues over the next 20 years. This equates to about $16 million of additional annual revenue to the city by 2025. His research considered how quickly new biotech and other kinds of businesses would locate in the neighborhood and other competitive factors.
"South Lake Union will fund basic services for all of Seattle," Nickels said. "In 2025, that $16 million could enable us to hire 90 new police officers, or repave 50 miles of city roads."
The city also announced that both the Sommers and OPM findings would be reviewed by an independent four-person panel to ensure both their accuracy and the validity of the methodology used. The four people appointed to the panel are Bill Beyers, a University of Washington professor of economic geography; John Gibson, founder and CEO of Gibson Economics; Irv Lefberg, chief of forecasting for the Washington State Office of Financial Management, and Peter Harris, a Seattle City Council central staff analyst.
For more information, visit the mayor’s website at www.seattle.gov/mayor/issues/lakeunion/
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Mayor’s Office
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