"Windfall seen for SeaTac runway cities"

Monday, November 1, 2004

Windfall seen for runway cities
Thousands of jobs could emerge
By Steve Wilhelm
The Puget Sound (WA) Business Journal


After fighting fiercely for a decade over Seattle-Tacoma International
Airport's controversial third runway, the Port of Seattle and the
surrounding cities that opposed it have begun collaborating on related
projects that could bring a dramatic economic boost to the communities. 
  
A soon-to-be-released report says that developing eight underutilized
properties in the cities of Des Moines, SeaTac and Burien, directly adjacent
to the airport, could attract new companies generating up to $1.4 billion in
revenue and 9,400 jobs. Most of the properties are to be made available, or
created, as a direct result of the runway project's purchase of homes and
clearing of land. 

Companies attracted to the sites could include import distribution
warehouses, fulfillment centers for Internet retailers, and others highly
dependent on air freight. The study was completed by GVA Kidder Mathews and
other consultants, and funded by the three cities, the port, the Puget Sound
Regional Council, and a $96,600 grant from the federal Economic Development
Administration. 

The lure of the projects has created some strange bedfellows since the
Airport Communities Coalition lost its final fight against the runway in
Washington's Supreme Court in May, and subsequently dropped all its
lawsuits. The organization, which included the cities of Des Moines and
Burien, and the Highline School District, is now disbanding. 

Bob Sheckler, coalition chair for the last four years, said the tone between
the port and the communities has greatly improved since the group decided to
halt its legal appeals. 

"Ever since we dropped the suit, and went from a litigious mode into
discussions with the port, I'd say our relationship has been amicable," he
said. "I think the port is very sincere in its negotiations with the cities
to redevelop those areas. I remain very optimistic." 

The two sides started exploring cooperation last year, when the port and the
cities contributed to the just-finished report. The report backers called
themselves the "NEST Partners," which stands for New Economic Strategy
Triangle. 

Now the port and the communities are formalizing their communications to
regularly bring together elected officials and administrators from all
parties. Another group that will monitor the third runway's environmental
impacts is the state Department of Ecology, because those impacts were a key
reason why the communities had opposed the runway. 

Port of Seattle Commissioner Paige Miller, who has been the point person for
the port on the runway issue, said in an e-mail from China that the efforts
at collaboration constitute "a new day between the south-end cities and the
port." She has suggested creating a new organization to be called the
Highline Forum, although others say the name isn't finalized yet. 

Miller credited state Rep. Dave Upthegrove for a "brave move" in urging the
litigants to drop their suits, although Upthegrove himself said the decision
was a difficult one.

"I don't want to give the impression that the third runway is an economic
win for Burien and Des Moines, because it's not," he said. "But since it's
happening, we're doing our best to deal with it ... to get any benefits that
are there." 
  
Burien City Manager Gary Long said any economic benefits for Burien will be
bittersweet because the city is losing 500 homes and 1,500 residents to the
runway expansion. 

"It's very challenging for the airport and the city," he said. "The cost of
the residential buyouts can never by fully recovered by the resale of those
properties for commercial use." 

The upside is that Burien will emerge with at least 64 acres of commercially
usable land that could support 900,000 square feet of commercial space and
generate up to 2,300 jobs, according to the report. The land will be owned
by the port, but will sit inside city limits. 

At a Burien City Council meeting Monday night, Long was told by the council
to put his energy behind the economic potentials, and let go of the recent
animosities. 

"We now know the outcome, we have to move on, the council is committed to
moving on," he said. "Our council is thoroughly committed to making the
relationship a genuinely new relationship." 

Tony Piasecki, city manager for the city of Des Moines, said his city is
going through a similarly difficult transition. While nerves have been raw
over the runway issue for many years, city directors can't ignore the fact
that the runway project will generate the largest chunks of developable land
in Des Moines today. The report said 100 acres of developable land is
available in Des Moines, which could accommodate 1.8 million square feet of
space and generate up to 4,000 jobs. 

The city spent $4 million over 10 years opposing the runway, but now it's
trying to "put together a process for our relationship," Piasecki said. 

"I think we need a more practical approach to working with the port," he
said. "Perhaps we should get together early in the process, and work
together for our mutual benefit." 

Diane Summerhays, director of community development for the port's aviation
division, said the properties will be especially attractive to businesses
that depend on air transport. For instance Boeing Commercial Airplanes built
its massive parts distribution warehouse at the north end of Sea-Tac, from
which it sends parts around the world.

"(It's) any kind of cargo-related activity, where you will want to be close
to airport and deliver things quickly," she said, citing businesses like
distributors of computer components or books. "Being right next to an
airport has a lot of value for some specific kinds of companies. That's
where we think the greatest potential lies." 
  
One of the discussions will be who pays for which aspects of the sites'
redevelopment. Summerhays said the port will expect developers to pay for
building construction and related costs. She said it's too early for any
agreements about how much might be contributed by the port or cities for
infrastructure, or to know how much that might cost. The cities already feel
they have been pushed to accept a situation they didn't really want, while
the port is under enormous pressure to keep the cost of the third runway
down, partly because air carriers will have to pay for most of the balance
that isn't covered by the federal government. 

In July the Federal Aviation Administration awarded $61.9 million to the
third runway project -- more than many other airports got for their runway
projects, but less than the $178 million the port had requested. 

While the port and communities now seem to be aligned, Upthegrove warns that
nobody should assume the transition is easy. 

"It's challenging, because there's been such a hostile relationship for so
many years," he said. "Turning that corner so that we're not fighting and
are working together, it's been a tough slow turn. Not everybody in the
community is working for that."


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