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What is the future of Seattle’s industry? Warren
Aakervik, Jr., wants to know.
The second-generation owner of Ballard Oil Co. fuels
home furnaces and the engines of the Alaska-bound fishing
fleet from his dock on Salmon Bay. But episodic clashes
— with bicyclists and pedestrians who want to
extend the Burke-Gilman Trail past the business’s
driveway, or nearby residents objecting to noise at
odd hours — make him wonder how the city’s
$2 billion maritime industry can cope as urban resettlement
bleaches his neighborhood’s blue collar white.
Since 2000, the sale price of land in Seattle’s
industrial zones has gone up 70 percent. Aakervik just
got notice of a 25 percent property tax increase —
making it incrementally more tempting, he says, to sell.
His land is worth nearly half a million dollars. Buyers
wouldn’t pay that kind of money to keep peddling
oil.
“The second and third generations look at the
business and say, ‘Why am I down here when no
one wants me? Why don’t I just take my money and
run like everyone else?’“
But what I want to do,” he says, “is keep
supplying this industry so [the fleet] keeps coming
back and spending its money in Seattle.”
And in this, Aakervik says, the city’s leadership
“is finally coming around.”Last week, Mayor
Greg Nickels’ office released a report stating
its intent to curb land speculation in the industrial
areas and the job-sucking business closures that come
with it.
In its release of findings and recommendations for
the city’s designated manufacturing and industrial
districts (the Duwamish and the stretch of land from
Ballard south through Interbay) the city details the
benefits of industry — like work that pays nearly
20 percent more than the citywide average — and
the growing threats it faces from real estate development.
The solution? Change the zoning code to keep big-box
retailers and office complexes out of those areas and
let industrial landowners make money by selling off
their right to build in the air space above their roofs
— probably in service of Starbucks’ expansion
of its SODO headquarters.
The prospects for other industrial areas — on
the northern, eastern, and southern ends of Lake Union,
and south and west of the International District —
are dim. The report signals that since these and other
isolated industrial pockets don’t provide the
advantage of “the large concentration of related
industries,” they are better suited to high-density
housing or commercial use.
After decades of emigration of the manufacturing sector,
blue-collar industrial labor is no longer a major source
of accessible family-wage jobs. In King County, health
care, government, aerospace, and construction sectors
supply more middle-income positions that don’t
require a college degree, according to a January study
by Seattle University economist Paul Sommers.
That’s not to say industrial land isn’t
important, especially because it’s getting scarcer.
The city has lost 554 acres through zoning changes since
1984, the remaining 5,000 acres constituting one-eighth
of the city’s land mass. The mayor’s report
notes that Seattle already has enough non-industrial
land to meet residential
and commercial growth; it also observes that when warehouses
or working docks are rumored to be the future site of
an office park or condo tower, their prices rise. And
if rents go up too, there are adverse consequences for
the business tenant.
Key among the report’s specifics was a note of
concession to Starbucks, whose corporate headquarters
on First and Lander St. the company has said it’s
outgrowing. The trick to letting Starbucks expand, city
staffers explain, is to prevent a blanket zoning change
that would flood the neighborhood with office workers.
The building’s owner, development firm Nitze-Stagen
has requested a commercial zoning change of blocks north
and south of the mermaid-topped building.
Nitze-Stagen could not be reached for comment. Starbucks,
however, remains happy with its SODO location. “We
look forward to working with the city to both ensure
that SODO’s unique place in Seattle’s history
is secure and that we have the room we need to grow
as we add thousands of new family-wage jobs in our downtown
campus in the coming years,” says company spokesperson
Bridget Parker.
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