March 16, 2006

Make Downtown Development Work for All

Issue: The Seattle City Council is getting ready to pass legislation that will change the future of the city for decades to come. The changes in building height and density regulations being considered are intended to absorb the growth coming to downtown neighborhoods over the next 20 years, including possibly 30,000 new jobs and 10,000 new households. The council is currently considering two proposals, one from the Mayor and one from Councilmember Peter Steinbrueck.

Background: The biggest difference centers on the amount that residential high-rise developers would pay into an affordable housing fund, for the right to build above the base height limit. The Mayor’s plan says $10 per square foot and Steinbrueck’s says $20. Currently, commercial developers pay a housing bonus fee — and the current proposals create a similar fee for residential buildings (waived if a certain percentage of the housing is affordable to low- and moderate-income people.)

$20 per square foot is needed:

Steinbrueck’s plan would generate $140 million new dollars for affordable housing over the next 20 years, including the $28 million raised directly from the fee and the $112 million the City’s Office of Housing can leverage in additional funds. At today’s building costs, that could generate 35 units of affordable housing downtown each year. That’s just a drop in the bucket compared with what we need—but it’s twice as much as the Mayor’s plan.

$20 per square foot is fair:

Some developers have argued that the $20 per square foot bonus hurts their profits and will drive them to build outside of Seattle. But independent economic analyses have shown that what we’re talking about is 1.3 percent of the total development cost under the Mayor’s plan and 3.3 percent under Steinbrueck’s plan. Looked at another way—land values will rise by a third under the Mayor’s plan and by a quarter under Steinbrueck’s plan.

The sky really isn’t falling — developers will make plenty of profit either way. Steinbrueck’s plan wrestles just a little more accountability out of those developers, and requires just a bit more of that profit be used to benefit lower- and moderate-income people. Since downtown growth will generate lower-wage jobs like security guards, janitors, and baristas, it makes sense to create housing for some of those workers to avoid pushing them out of the city and increasing sprawl and traffic problems.

The single most important need in the struggle to end homelessness is affordable housing. Steinbrueck’s proposal won’t end homelessness — but it is a small step in the right direction of ensuring that as our city’s economy grows and thrives everyone benefits, not just the rich.

Action: Contact City Councilmembers today and ask them to support the $20 per square foot housing bonus to increase the city’s supply of affordable housing. Either click Downtown for ALL to take action, or contact City Council members directly.

Jan Drago
jan.drago@seattle.gov
684-8801

Richard McIver
Richard.mciver@seattle.gov
684-8800

Sally Clark
sally.clark@seattle.gov
684-8802

Richard Conlin
richard.conlin@seattle.gov
684-8805

David Della
david.della@seattle.gov
684-8806

Jean Godden
jean.godden@seattle.gov
684-8807

Nick Licata
nick.licata@seattle.gov
684-8803

Tom Rasmussen
tom.rasmussen@seattle.gov
684-8808

Peter Steinbrueck
peter.steinbrueck@seattle.gov
684-8804