Now, however, a freshly penned deal between the city and City Investors has moved the neighborhood closer its long-sought goals. Under the agreement, the subsidiary of billionaire Paul Allen's Seattle-based Vulcan Northwest will pay $20.8 million for eight properties totaling 4.56 acres purchased by the city during the '60s and '70s. Add in the 40 acres Allen already has pieced together in the area, and City Investors has more than enough property to change the area's rundown character.
Nathan Torgleson, the South Lake Union's project manager for the Seattle Office of Economic Development says four parcels lie directly south of Lake Union. The properties were originally set aside for a freeway extension. The project was eventually scrapped, but the land has remained out of circulation for the past 30 years.
For Allen, it's a second chance to revive the area. In the mid-90s, Allen lent $20 million to the Seattle Commons initiative, aimed at a massive redevelopment of the area. When the plagued project ultimately failed to receive voter approval, Allen ended up with ten acres in exchange for the investment.
With that as his cornerstone, Allen formed City Investors to acquire additional South Lake Union properties for eventual redevelopment. Including the new deal with the city, City Investors had garnered more than 40 acres at an approximate cost of $100 million.
Jo Ellen Warner of the OED tells GlobeSt.com that when the city put out its RFQ on the properties, it had "set public objectives for the kinds of things the neighborhood and city wants to see. City Investors is very involved in the community and plans to include the vision of the neighborhood plan that has been in the works for so long. One way or another, those objectives are being met (by City Investors)," says Warner.
A spokesperson for Vulcan Northwest says no comprehensive plan for the area has been determined. Rather, the company plans to work closely with business owners and residents of the area as it continues development.
Addressing the contaminated properties, the sales price will be reduced by $600,000 for the cleanup of a portion of the properties affected by a 60,000-gallon gas spill in the 1980s. As to the traffic issues, Warner says Mayor Paul Schell "wants to see bulk of the sales proceeds used for transportation improvements and affordable housing."
Another term of the agreement is a 20,000-sf cultural center, parking and 500 housing units to be built by City Investors. Of the total, about one-tenth of the units are to be earmarked as "affordable housing." One of the carrots thrown into the deal by the city is an exception to raise the building height limit on four parcels by 25 feet to 65 feet.
One potential wrench in the works lies with a citizens group that has once unsuccessfully attempted to block the Department of Design, Construction and Land Use's height exception. The group's appeal of that decision will be heard by the Central Puget Sound Growth Management Hearings Board in August. Should the group win the appeal, Seattle and City Investors could be sent back to the negotiation table.
The addresses of the properties being sold by the city are 965 and 1113 Valley St.; 625 and 630 Boren Ave. N; 630 Westlake Ave. N; 1120 Mercer St.; and 601 Fairview Ave N.; 500 Aurora Ave. N; 501 and 525 Dexter Ave. N; and 800 Mercer St. Torgleson says existing improvements span a "wide variety," and include retail, light warehouse, small offices and surface parking.
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