Mix of uses proposed for Port's North Bay site

Research and development labs, light manufacturing and assembly, offices, retail and housing were posed to Port of Seattle Commissioners today as possible new uses for North Bay - 57 acres of underutilized Port-owned land in Interbay between the Queen Anne and Magnolia neighborhoods.

Last October the Commission directed Port staff to establish a master plan for the site and investigate possible new uses that would support the Port's mission of creating economic vitality for the region.

Today Commissioners got their first look at the results of the financial analysis, market study, fiscal analysis and framework plan for the North Bay site.

"The ideas on how to orient development on the site to accommodate a flexible combination of uses is terrific work," said Port of Seattle Commission President Paige Miller. "It allows us to plan for the future growth of our traditional maritime industry tenants while bringing new economic opportunities to the region."

A mix of uses that includes research and development, light manufacturing and assembly, offices, retail and possibly housing could create up to 13,500 new jobs, generate $311 million in state and local tax revenues and provide opportunities for community benefits such as new transportation infrastructure and public access said Craig Kinzer, Principal of Kinzer Real Estate Services and Special Advisor to the Port on the North Bay project.

"It's important that we bring new life to this strategically located property and evaluate North Bay in the context of the Port's Triple Bottom Line," said Port of Seattle CEO M. R. Dinsmore, referring to the set of goals the Port strives to achieve - economic benefits, environmental/community benefits and financial sustainability.

The Port's Triple Bottom Line emerged from Harbor Development Strategy 21, a community based study of the Port's assets and activities published in 2001.

The framework plan for North Bay, developed by NBBJ Architects, shows how transportation access can be located in a way that provides flexibility in developable space while making the most of features like the green belt and hillside on the western edge of the site and shore views of Elliott Bay.

"We can return the vacant portions of this site to productive economic use and make it more valuable for community uses if we make the right decisions on how the commercial space is used," said Kinzer. "To do that we need to have the flexibility to provide a variety of sizes of parcels and buildings to serve multiple uses."

An industrial real estate market study coordinated by Berk & Associates showed that there is currently a surplus of industrial properties in the city of Seattle and that market rate leases would not generate enough revenue to pay for the infrastructure improvements needed at North Bay.

"If we put in the access and utilities needed to support new industrial uses, we need other uses to help pay for those investments," Kinzer said. "It takes new uses, in addition to traditional maritime/industrial uses, to achieve the Triple Bottom Line at North Bay."

The property that makes up North Bay was previously used to store imported Nissan automobiles that arrived in Seattle via ship. Nissan consolidated its auto imports in Southern California in late 2001. Part of the property is currently leased by a company that provides bus service for the Seattle School District and by local car dealerships for overflow storage. More than half of the Port's property in Interbay - 60 acres - will remain in maritime/industrial uses.

The North Bay site does not include Piers 90 and 91, where the Port has invested more than $70 million over the past 10 years to rebuild the piers and replace creosote coated wood piles. The improved piers are home to 15 of the 21 U.S. factory trawlers operating in the North Pacific. The Port also remains committed to the existing maritime/industrial uses on 20 acres north of the Magnolia Bridge and is reserving space for future expansion of those uses.

"The next steps for North Bay include continuing master planning and completing the industrial market real estate study, the financial analysis and the fiscal analysis," said Mark Griffin, the Port's Manager of Real Estate Development. "We'll begin environmental review this year and seek permits in 2005."

Community outreach has been and will continue to be one of the most important activities for the North Bay project. "We've already conducted more than 50 community outreach meetings," said Griffin. "We have several more scheduled through November and others are in the planning stages. North Bay will be fully vetted with the public and all stakeholder groups."