In an appendix of the report, Sommers found that development activity will generate between $540 million and $870 million for Washington State between 2005 and 2025 through property, utility, sales and business and occupation taxes. The news follows a similar report drafted by Sommers for the city that shows it could realize $250 million in tax revenues from the economic activity in the South Lake Union area, which is located north of Downtown Seattle and south of Lake Union and has been attracting interest from players in the biotech and life sciences industries, among others.
The city's report estimated 56,000 new statewide jobs from development on the south side of the lake over the next 20 years. The new report for the state ups that estimate to 76,000 jobs.
"This is a competent and well-researched study of the potential economic impacts of South Lake Union development," says Irv Lefberg, chief of forecasting for the State's Office of Financial Management. "(It) provides a reasonable and technically-sound estimate of the potential state revenue associated with development of the area over the next 20 years."
The report's projected revenue increases are derived from: development now under construction or planned between now and 2007; development projected to occur between 2008 and 2020, and; a five year period beyond that of full occupancy but no growth. The report assumes that 64% of the redevelopable land in South Lake Union will indeed be redeveloped by 2020. The study takes into account both direct impacts, such as the increase in jobs and development, and indirect impacts, such as the increase in the purchase of goods and services by business occupants of the new buildings as well as their employees.
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