Tax Revenue from South Lake Union: $540M-$870M

SEATTLE-Development of the South Lake Union neighborhood here will generate hundreds of thousands of dollars in tax revenue for the state and the city over the next 20 years, according to a report by economist Paul Sommers that was made public this week. The report was detailed by Mayor Greg Nickels in an appearance Wednesday before House Telecommunications, Technology and Energy Committee legislators.

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.