Creating a vital and vibrant Seattle by increasing downtown density

The City Council is currently deliberating new zoning code changes for the center of downtown Seattle. At the core of the discussion is how to maximize density and still create a vibrant, mixed-use and affordable downtown for all.

To meet the city's growth-management goals and prevent sprawl, downtown needs to create the capacity to absorb 50,000 new jobs and 22,000 new households over the next 20 years. This goal is endorsed by the five neighborhoods that comprise downtown, all of which have supported a proposal to maximize density by allowing taller and more-slender buildings.

Understandably, the deliberations have focused on the goals and impacts for downtown, the area that will benefit the most from the code changes. There are, however, major benefits for the entire city.

If the council adopts the proposal that allows for greater density, we can expect more use of transit, less sprawl and more jobs and housing downtown. There will also be an economic benefit for all city residents — millions of additional dollars would be available to fund city services. These annual and reliable revenues could be used for such important services as libraries, community centers, parks and open space.

The Downtown Seattle Association (DSA) recently commissioned a fiscal report, performed by Gardner Johnson LLC, that shows that the city of Seattle can expect at least $20.3 million in additional tax revenues under the mayor's plan for increased density.

Under current zoning, one-time construction sales taxes will generate $25.4 million. With the mayor's proposal, the city will receive at least $42.3 million in one-time construction revenues. That is an additional $16.9 million — 66 percent more revenue for the city. Similarly, the city would receive at least an additional $3.4 million in annual tax revenues as $5.1 million would grow to at least $8.5 million annually, also a 66-percent increase.

We say "at least" because this study was based on very conservative estimates and compared only those projects that have received a master-use permit and can proceed with construction, or those projects currently under construction. For annual tax revenues, only hotel/motel-tax revenue, property-tax revenue and real estate excise tax (REET) revenue were considered.

The benefits from job growth, additional sales taxes and other indirect benefits were not included, and these would also be significant. There is no doubt that the new residents living downtown, as well as more workers, would spread the wealth around to shops, restaurants and cultural institutions, generating more sales tax and city revenue.

In addition, if the City Council supports the proposal that allows for more density, it will be creating more capacity for housing for all income levels in the city's core. Our analysis shows that an additional 1,000 for-sale and rental units will be possible in downtown Seattle, because the proposal increases the available floor-area ratio (FAR). FAR is defined as the relationship of the total square feet of a building to the square footage of land area. By increasing the allowable FAR, the city can gain more housing units.

Current zoning would allow for 1,800 for-sale and rental units. With the additional FAR, this number would increase to at least 2,800 for-sale and rental units — 55-percent more housing units.

There's an added "financial" benefit for the city and its residents to increasing density downtown. The city and the region have invested billions in infrastructure in a transit system that focuses on downtown as its principal hub. Light rail, commuter rail and our bus systems all converge on downtown as the reasonable place for growth in residences and jobs. Incorporating the most density will ensure that these transit dollars have been invested in the best way possible.

A vital and vibrant downtown is in all our best interests. Creating the capacity to absorb the growth and expand the city's tax base is a sensible, sound and sustainable plan. By increasing downtown density, the city will have additional funding to support city services while creating a more diverse and more livable downtown.