Exhibit
Pan Commission
Meeting of 
The Future of Secriile's
Industrial Lands





Seattle Planning Commission
Report - July 2007

Seattle Planning Commission

INTRODUCTION                     p'l

Seattle Planning Commission Role in Seattle's Industrial

Lands Policy

Seattle Planning Commission Involvement in Creating

an Industrial Lands Strategy

City's Effort to Create an Industrial Lands Strategy

STAKEHOLDER PROCESS AND OUTCOME        p3

Purpose of Stakeholder Involvement

Explanation of Stakeholder Involvement and
Workshop Series

Seven Key Themes Identied by Stakeholders     p6

SEATTLE PLANNING COMMISSION OBSERVATIONS
AND RECOMMENDATIONS             p10

Identifying the Fundamental Questions

Seattle Planning Commission Observations      pll

Seattle Planning Commission Recommendations  p14

CONCLUSION                   p17



COVER ART:            Artist Statement:
LittIeShip (T18), 2000             My paintings feature a uniquely Seattle icon, the orange
Mary Iverson                 container cranes stationed at Seattle's waterfront. Part gure,
Oil on Canvas, 6"x 8" x1"          part machine and part archetype, the crane is for me a symbol
Seattle City Light 1% for Art         of personal strength. At the same time, my paintings of the cranes
Portable Works COIIGCtion          generate a universal appeal, as the cranes are such a prominent

feature of our waterfront. These paintings were all executed
Paintings shown above are in the
Seattle City Light 1% for Art Portable    on site, or en plein air. To get the feeling for the size, color and
Works Collection. Each painting is by   presence of the cranes, it was important for me to be painting on
Mary Iverson and is featured later in    location, near the cranes, and experiencing all the activities on
this document.                 the shipping terminals.

INTRODUCTION
"Our vision of the future is one in which our city   Seattle Planning Commission Involvement
has thriving neighborhoods where residents    in Creating an Industrial Lands Strategy

and businesses work with the City to plan and   In recognition of the trend toward increased requests to
change the nature of industrial land, in 2004 the Mayor's
produce projects that enhance the quality of
Ofce requested the Commission's assistance in helping
life for those who live, work and play in Seattle."  the City determine an overall approach for industrial lands.
Seattle Planning Commission     Also in 2004, we reviewed the Ten-Year Comprehensive Plan
Update. During that process we called on the City to develop
About the Commission              an industrial lands strategy that would consider the City's
The Planning Commission, established by charter in 1946,    overall objectives for maintaining and attracting industrial
is an independent voluntary 16 member advisory body      jobs and its role and opportunities within the regional
context rather than on a case by case basis. We believe
appointed by the Mayor, City Council, and the Commission
itself. This diverse group is made up of people who bring     that an industrial lands strategy can provide overarching
guidance to the City when responding to specic requests
a wide array of valuable expertise and perspectives to
for zoning or land use changes in industrial areas.
important planning decision in the City of Seattle. The role of
the Commission is to advise the Mayor, City Council, and City   Based on the Commission's recommendation, City Council
departments on broad planning goals, policies, and plans     asked the Department of Planning and Development (DPD)
for the physical development of Seattle. It reviews land       in 2005 to complete a study that would help the Council
use,
transportation and neighborhood planning efforts using the   make decisions about the proposed Comprehensive Plan
framework of Seattle's Comprehensive Plan and the long-     amendments. The Department of Planning and Development
range vision described in the Plan.                    (DPD) along with the Ofce of Economic Development and
the Planning Commission completed the study in August
2005. In addition, we did independent research looking at
Seattle Planning Commission Role in
how ve other cities approached similar efforts to create
an
Seattle's Industrial lands Policy           industrial lands strategy. We released the Comparison of
The Seattle Planning Commission is the steward of Seattle's    Industrial LandStrategies report in November of 2005. We
Comprehensive Plan, Toward a Sustainable Seattle, a 20-year  believed that the study and our report provided a strong
policy plan designed to articulate a vision of how Seattle will   compelling rationale to call for the City of Seattle to create
grow. In general, the goals dene a future outcome that the   a thoughtful 'strategy' regarding how best the City will
City is aiming for, and the policies provide guidance for more   structure land use to meet the needs of or make changes in
specic decisions that will be made over time.             the future to industrial and manufacturing land uses.
Preserving designated industrial lands for industrial uses
is an important goal identied in the City of Seattle's         The Planning Commission and the Department ofPlanning and Development
cosponsored a four-part workshop series in the Spring of2007.
Comprehensive Plan.The Plan recognizes that industrial
zoned land provides a safe haven for industrial businesses
......
where their operations are less likely to impinge on other,
non-compatible uses. In recent years there have been
multiple requests to change Comprehensive Plan policies
and land use zoning designations for industrial properties.
These requests reect an increasing pressure to convert
industrial lands to other uses. We have a growing concern
about these requests and the desire of individual land
owners to convert their industrial zoned land to non-
industrial uses. We feel strongly that the City must not simply
respond to each request on a case by case basis, but instead
make rational decisions based on an informed and well-
thought out strategy.

INTRODUCTION (continued)

In late 2005 the Seattle City Council responded to the        In 2006 DPD began extensive background analysis, research,
Commission's call for action by allocating funds for DPD,      survey work and public involvement to help better inform
with assistance from the Commission, to create an Industrial   Seattle's Industrial Lands Strategy. They produced and
Lands Strategy. Since that time we have been working very   released four reports earlier this year including:
closely with DPD to assist them in their effort to create a
strategy. The Commission has been particularly involved in WWW
the stakeholder involvement process.
Mfeatures information including the
City's Effort to Create an Industrial Lands        existing framework of industrial policies in Seattle,
statistics about land use and facilities in industrial
Strategy
zoned areas, detailed proles of seven industrial
In 2006 the City Council adopted a supplemental budget,
neighborhoods, a summary of survey ndings
funding DPD to prepare an Industrial Lands Strategy to           highlighting the perspectives of industrial business
ensure adequate land to accommodate the expected
owners, and historical and projected employment
future amount of industrial uses, and to provide criteria for
information.
evaluating future requests to reclassify industrial lands.
DPD began conducting research to identify the key issues
I   l   l
I .I I l 5 S  I E .   .
facing industrial businesses in the city, to see how other           Mrs provides the results of a survey of 100
cities have addressed similar issues, and to work with the
industrial businesses about their operations and the
community to develop approaches that can help Seattle         opportunities they have and the challenges they
meet its objectives for industrial land. DPD will have
face in Seattle.
recommendations completed in time to inform City Council
decisions on the 2007 Comprehensive Plan amendments,
which include requests for changes to industrial land.        I Industrial Lands Survey: Investigation of
We;provides information on
how eight North American cities are currently
handling the unique industrial issues in each of
those cities.

Industrial Lands Survey: Perspectives on
I the Benefits and Challenges of Business
The Commission andDPD conductedan extensiveprocess to engage
Opportunities in Seattle's Industrial Lands
stakeholders in a discussion about the future ofSeattle's industrial lands.
provides more detailed information than what was
gathered in the larger Survey of Business Owners.
This focused study was designed to gather more
specic information from a targeted group of
industrial business owners.

In addition to cosponsoring our stakeholder workshop series
DPD also held special focus groups and met with several
constituency groups in order to ensure that they were
hearing a broad and diverse set of perspectives.

STAKEHOLDER PROCESS AND OUTCOMES

Purpose of Stakeholder Involvement
The Planning Commission sought to engage the
public and industrial lands stakeholders as an
important component of the Industrial Lands
Strategy. This engagement was meant to achieve
the following:
. Engage the public and stakeholders in
a
discussion about the future of Seattle's
industrial lands
0 Obtain input about the
state of industrial lands
and current trends affecting those lands from
stakeholders closely involved with these areas
' Ensure adequate public review of the Industrial
Lands Strategy process 
Educate the public about strategies for approaching      City stafftake Event One panelists on a tourofSeattle's industrial areas,
industrial lands taken by other major cities and the       including shermans Terminal.
results of the Department of Planning and Development's
(DPD's) research element of the Industrial Lands Strategy
Panelists included:
0 Document public and stakeholder
concerns and
Nora L. Curry, City of Chicago, Director of Industrial
suggestions for the future of Seattle's industrial lands
Initiatives and Policy, Department of Planning and
Explanation of Stakeholder Involvement     Development;
The Planning Commission and DPD co~hosted a four         Christina DeMarco, Greater Vancouver Regional District,
part workshop series seeking input from the public and       Regional Development Division Manager, Policy and
stakeholders about the Industrial Lands Strategy. These        Planning Department, and;
events included:                                 Steve Kountz, City of Portland, Senior Economic Planner,

Event One  Lessons from Other Cities             Bureau of Planning.

To open the workshop series the Planning Commission      Stakeholders were able to ask the panelists questions and
make comments about their experiences and how strategies
organized a panel discussion was held with leading industrial
lands experts from Chicago, Portland, and Vancouver, BC     used in other cities might be applied in Seattle.
on
March 29, 2007.The panelists discussed the challenges and    Event Two  Conversations about Industrial Lands:
issues facing these cities with regard to industrial land and    Challenges and Opportunities
how they have attempted to resolve those issues through
The second workshop was held on April 10, 2007. At this
land use and zoning strategies.
event we held a roundtable discussion with industrial lands
stakeholders about the current challenges and opportunities
related to preserving industrial land for industrial
uses. The
event was facilitated by Commissioner Linda Amato, and
covered the topics of transportation and freight mobility and
land constraints and conversions.



AtEvent Two, CommissionerLinda Amato leads a round table discussion
with stakeholders focused on transportation, freight mobility and land
constraints.

STAKEHOLDER PROCESS AND OUTCOMES

Below: Commissioner Chris Fiori leads stakeholders in a roundtable
discussion about the future ofSeattle's industry at Event Three.
Right and at bottom ofpage: additionalphotos from Event Three.








Event Three - Conversations about Industrial Lands:   Event Four - Alternatives for Moving Forward
The Future of Industry in Seattle                  The fourth and nal workshop, held on May 31, 2007, was a

On April 24, 2007 we held another roundtable discussion     forum at which we presented preliminary key themes from
with stakeholders about the future of Seattle's industry.      the stakeholder involvement process and DPD shared their
Issues including changes in the global marketplace, how to    preliminary thinking about the Industrial Lands Strategy.
allow for exibility and new opportunities, and emerging     The key themes provide a documentation of the outreach
industries were explored. The event was facilitated by        process and an objective overview of what we heard
Commissioner Chris Fiori and topics included regional       from stakeholders. The event included an opportunity
perspectives, the future of the port, new and emerging      for participants to provide input on the Commission's
industrial business. In addition, we asked several individuals   observations and DPD's thoughts on the study. The
to make opening remarks relevant to the topics to be       event was facilitated by Commission Chair Jerry Finrow,
discussed in this workshop. The participants heard opening   who presented Commission observations and facilitated
remarks from Eric Schinfeld, Economic Policy Analyst, Puget   participant discussion to make sure the Commission 'got it
Sound Regional Council; Phil Lutes, Deputy Managing       right'. In addition, DPD staff presented early thoughts on the
Director at the Port of Seattle  Seaport Division; and Philipp   Industrial Lands Strategy. The event included an opportunity
Schmidt-Pathmann, President, Waste Recovery Seattle       for participants to provide input on the Commission's
International.                                    observations and DPD's thoughts on the study.

Seattle Zoning Map
Areas zoned industrial make up
5,142 acres of land or 12% of
the total land area.






Industrial Areas of Seattle

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Zonlng              Shah Funny
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Numhyu-Funy     WNW
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Little Ship #2, 2000Mary lversonOil on Canvas, 7' x 5' x 1"Seattle City Light 1% for ArtPortable Works Collection
Seven Key Themes Identified by Stakeholders



There was broad consensus by stakeholders that dening what is meant by
'induslrial business' is often a difcult endeavor. Stakeholders suggested that the
current definition needs to be clearer, and a nuanced approach should be taken
when developing this denition.
' Businesses change rapidly
over time, as new            Other cities have struggled to provide enough exibility
industries develop and older industries recede.           in their zoning regulations to allow for innovation in
. Many of Seattle's regulations regarding industrial          industry and attract new businesses, while maintaining
lands were created during a different era, and certain       strict enough regulations to keep undesired uses out of
types of new businesses exist today that, while           industrial zones.
not currently allowed in industrial zones, could
potentially utilize industrially zoned lands.
- Many modern 'industrial' businesses
are no longer the
polluting, noisy type of business many people believe
they are.
When considering what
areas should be considered
'industrial', a nuanced approach should be used, as
there are certain areas where primarily non-industrial
businesses are located in industrial zones.

Seven Key Themes Identified by Stakeholders

Participants in the outreach process noted that there is a lack of certainty and
clarity concerning what criteria the City of Seattle uses to rezone industrial Iahd to
non-industrial uses. They suggested that the City should consider
ways to create
more certainty and provide more predictability for industrial businesses that want to
make long term investments, and there should be
a clear public policy rationale for
whatever criteria are developed.
0 There
appears to be a disconnect between the         ' Industrial zoning currently provides
a place for 2+hour,
Comprehensive Plan's policies regarding industrial         noisy operations that are critical to the city's economy.
lands, which advocate for preservation of industrial        Criteria that would accommodate more exible
uses
lands, and the City's actual practices regarding issuing      would need to explain why these other uses could not
permits for non-industrial uses in industrial zones.         be accommodated in other areas of the city and the
Clear criteria for rezones need to be developed.           effect of new uses on existing businesses.


Pressure on industrial lands, a phenomenon not unique to Seattle, is
a major concern
for many industrial business owners. Some participants noted that this
pressure is
pushing land costs up, forcing businesses out of Seattle or limiting their opportunities
to expand, and prompting the increasing number of requests for the conversion of
industrial lands to non-industrial uses.
0 Demand for industrial lands in Seattle
is strong, with        lands for industrial uses due to widespread speculation
very low vacancy rates. However, the effect land cost       on zoning changes in industrial areas. This has caused
has on the overall cost of doing business in Seattle         difculty for industrial businesses trying to locate or
will impact the ability to maintain Seattle's industrial        expand in the city.
sectors.
' Many businesses
are leaving Seattle for cheaper land
Seattle, along with Chicago, Portland
and Vancouver,      and labor, which is available in surrounding
areas in the
B.C., have struggled with maintaining industrial           region or overseas.


Other major cities have deemed industrial lands integral to their future
success and
have taken significant steps to ensure that
success.
' In Chicago, Portland and Vancouver,
B.C.,                  other markets. These zoning areas stabilize land
use.
policymakers have concluded that industrial lands are      thus giving industrial business owners certainty and
important public resources that should be preserved.      predictability when they're making land use decisions,
O Other cities'
reasons include industrial businesses         thus promoting investment in their properties.
providing high-paying jobs that do not require a         ' Common elements of these policies include
creating
college education and can often last someone's entire      guidelines eliminating or strictly limiting the potential
career, producing additional jobs in related industries,      for land in certain industrial zones to be rezoned and
and helping diversify their city's economy.              limiting the type and size of non-industrial uses in
0 Other major cities have instituted
zoning areas with       industrial areas.
strict regulations designed to protect and foster
their industrial businesses, which emphasize the
need for preservation not just of industrial lands,
but of the businesses in them that could be lost to

Seven Key Themes Identified by Stakeholders

Different groups of stakeholders have different goals and interests. While
many
industrial businesses emphasize preservation or expansion of industrial land for
industrial uses, many industrial land owners believe signicant rezoning should
occur. However, land owners exist that also operate businesses on their land
who also advocate for preservation or expansion. There is consensus
among all
stakeholders, however, that none of the land currently zoned industrial should be
considered for residential development.
0 It is important to understand the differences between
- To
some industrial businesses, the creep of non-
industrial tenants, land owners, and land owners who      industrial uses into industrial lands is a great concern.
also operate businesses on their property, and what is      Nonindustrial businesses often complain about
driving each of their interests.                        pollution, noise, light and trafc once they are in
Industrial land                                  industrial areas, and are capable of litigation over their
owners are concerned that their land
prices as a percentage have gone up less than other       complaints.
areas of the city.                                   Overall, zoning changes in industrial areas could create

0 There is also
a concern about the amount of land         both opportunity and conict. Increasing the allowable
recently purchased by public agencies for public uses,      uses and density in industrial areas could dramatically
which is creating increased competition for land.          increase the amount ofjobs in the area. However, many
of the new businesses who want to move into industrial-
Artists that
use land zoned industrial for their
zoned areas want corporate campuses, which can
crafts, including wood building, ceramics, and
metalworking, value industrially zoned land and          potentially be incompatible with industrial uses.
would like to see more land zoned industrial.            As the City moves forward with future decisions
0 The overall lack of available land                      regarding large scale requests for rezones of industrial
may call for the City
land to non-industrial uses, it should be aware of the
being more creative in looking at increasing FAR and
creating more exibility in the zoning code, which         potential there is for setting a precedent with these
decisions. Many stakeholders believe future decisions
may help attract other industries. However, many
made regarding such rezones should be balanced, fair
industrial business tenants believe that allowing
and equal.
residential uses in to the industrial areas would be
a death sentence to industrial business. This is true

even for new R&D industrial businesses that need the

same kinds of protections industrial zoning provides
to be able to conduct noisy activities at all hours.

Seven Key Themes Identied by Stakeholders

The stakeholder outreach process identified investment in transportation
.
infrastructure as one of the best ways to support industrial businesses. Suggested
3
strategies include improving freight mobility by protecting rail, lessening trafc
congestion, making improvements to the street grid, and reviewing parking policies.
' The Port of Seattle container shipping business could
and length of the street grid and a revisiting of roadway
signicantly expand, creating economic benets for       geometrics. In addition some signicant challenges exist
the region if the infrastructure is in place to capitalize       when pedestrian and bicycle facilities or street trees
on this opportunity. Rail capacity will require             are introduced into these areas, causing conicts with
signicant expansion in the coming years if Seattle        freight movement.
expects to take full advantage of trade with Asia.
. More exibmty is needed for parking regulations
in
The introduction of other
uses into industrial areas         industrial areas to help serve the broadening needs of
has created signicant trafc congestion. Products in       industrial businesses.
industrial areas need to be moved by trucks and that
0 Other transportation issues that need
to be addressed
is getting more difcult because of road congestion:
include potential dislocation due to changes to the
causing delays that are COStIY to business.               Viaduct and increased investment in mass transit for the
- Trucking and freight mobility requires good
workforce.
sightlines, wider lanes, improvements to the size

Participants recommended that it is important to consider Seattle and its
infrastructure in a global and regional context.
' industrial businesses
vary in how they relate to the        Maintaining and potentially expanding the Port's
rest of the region and to other locations in the global       resources, as well as maintaining uses adjacent to and
market. Many trends affecting industrial businesses        near Port uses that utilize the Port's infrastructure in
in Seattle are caused by trends in the global market        some way, are important goals to consider. However, it
place, and Seattle must compete with these other         should be made clear what the Port's goals are for the
markets to maintain its industrial businesses.             future and how much area needs to be preserved for its
Regionally,
some uses may be able to move to the        potential expansion.
Green River Valley, but many maritime uses can'tjust       The City is required to view industrial lands
in a regional
move to Kent. The Port of Seattle has little ability to         context by the Growth Management Act, and should

move elsewhere and provides an important resource      ensure it is achieving the goals set out by the Act.
to the City's economy.

0 The city should understand how letting
go of industrial
land would, among other things, impact the overall
operations ofthe Port, the city's revenue and the
continued ability to provide family wagejobs.

SEATTLE PLANNING COMMISSION
OBSERVATIONS AND RECOMMENDATIONS



Crane Study #3 (Sun), 2000
Mary Iverson
Oil on Canvas, 6" x 8" x 1"
Seattle City Light 1% for Art
Portable Works Collection
Identifying the Fundamental Questions
After reviewing the key themes that came out of the stakeholder involvement
process, the
Commission has developed what we believe are the fundamental questions facing Seattle
regarding industrial lands. These fundamental questions are intended to help dene where
the debate is and where the city should focus its efforts in creating
a strategy.
. Is all industrially-zoned land in Seattle sacred? If not,      How can the City best provide certainty and clarity
how do we avoid a haphazard piecemeal approach      concerning the future of industrial lands for current
to changes?                              business and land owners? Are there useful zoning

How can the City best balance sustainability and        and land use changes that could create more clarity
promotion of industrial businesses with exibility       and certainty and help protect the benets of
and opportunities for other uses? What is the          industrial zoning?
appropriate denition of an industrial use in the         What are the goals and expectations we have for
21 st Century?                                our industrial lands? What are the benets we want
What is the appropriate public policy rational for        to preserve (health and safety, family wage jobs,
maintaining industrial land? What would be an         city revenue, economic diversity)?
appropriate public policy rational for rezoning          What strategies for approaching industrial lands in
industrial land?                                other cities have worked best and what are the best

What are the advantages for the City in maintaining      strategies for Seattle? What steps can Seattle take to
land that is zoned for industrial uses? What are the       improve infrastructure in industrial areas?
industries that need specially zoned land that is         What are Seattle's competitive advantages in
separated from commercial, retail and especially        the regional marketplace? What are Seattle's
residential? What are those industries value to the       competitive advantages in the global marketplace?
city?                                           How can these advantages best be maintained
and strengthened? What are the critical assets for
industrial business and how do we sustain and
maintain them?

10

Seattle Planning Commission Observations



Providing clarity and certainty about Seattle's industrial lands is essential to
stabilizing speculation and land costs.
The Industrial Lands Strategy should result in            the current land owners do not believe that residential is
providing certainty with regards to the city's policy         appropriate in industrial areas nor that current industrial
on industrial lands. Other cities have found that           areas should be rezoned to another zoning category that
speculation and land costs have stabilized once          allows residential.
clear policies are provided. Some of these cities
The geographical
areas that elicit the most controversy
are moving towards preservation, others towards
amongst stakeholders are the areas immediately south
housing, but none are going at it haphazardly, as          of downtown, north of Spokane Street and the areas
Seattle is.
outside the Manufacturing/Industrial Center (MIC).
' A clear denition of industrial is needed. There
are         These are the places where the majority of speculation
questions that remain about the ability to include         is happening andalso where the majority of requests for
research and development in industrial areas or          changes have occurred.
whether if there's no production should these uses
Current Floor Area Ratio (FAR) and height
restrictions
be allowed outright in industrial areas. It will be
should be reexamined. Adjustment ofthese restrictions
important to understand the potential conicts          could promote more investment and growth in
between 'new' industry and traditional heavy
industrial areas. Care should be taken, however, to
industry.
examine potential unintended consequences from such
' There
appears to be little controversy about             adjustments.
maintaining the strong industrial nature in the
majority of areas zoned industrial. A vast majority of

Industry in Seattle is thriving and vibrant.
The extremely low
vacancy rates in industrial areas         to enhance its competitive advantages. Increasing trade
indicated that industry in Seattle is thriving and            with other regions could present an opportunity for
vibrant. When considering action regarding industrial       increased growth in Seattle's industrial sector, including
land, it will be important to consider'protecting'           expansion of existing businesses and attraction of new
or'growing'Seattle's industrial lands, rather than           businesses.
speaking in terms such as'preserving' industrial land.
Seattle's unique position in regard
to transportation
The term 'preservation' conjures up a vision of saving
options is largely responsible for the vibrancy of its
a dying aspect of the city, which is not accurate.
industrial sector. The intersection of access to water,
- Seattle is
a competitor for industrial business in the         rail, l-90 and l-S is an invaluable asset for industrial
regional and global market, and has the opportunity       businesses, and is what keeps many of them in Seattle




11

Seattle Planning Commission Observations

There is a strong public interest in maintaining, and even growing, industrial sector
jobs in Seate.
0 Basic industries constitute about 25
percent of the        ' Seattle has extremely valuable
resources in terms of port
total employment in the city.                       and transportation infrastructure that cannot be found
' Industrial jobs provide highpaying, family-wages         elsewhere.
jobs that are especially valuable to those without a
college education. These jobs increase the diversity of
the city.

Industrial land is a limited resource and commodity.
' Studies
appear to indicate that there is not excess         Seattle is at the center of
a land-constrained region
capacity in the region to meet future land use            where industrially zoned land is in particularly short
demand for industrial businesses.                    supply when viewed in relation to other uses. Residential
Once land is converted from industrial                 and commercial ofce uses, for example, both have
uses, it rarely
returns to industrial uses. Protability drives this           identied capacity for 20 years or more of growth at
as commercial and residential uses generate more         targeted densities across the county, according to
buildable lands studies and countywide planning
revenue for land owners than industrial uses.
policies.
A variety of factors are putting increasing pressure on industrial lands
' The
presence of non-industrial uses in industrial          0 The growing number of Comprehensive Plan
areas raises the economic value of that land and the        amendments related to the rezoning of industrial land
expected value of adjacent industrial land, leading         to nonindustrial uses, along with other factors, indicates
to either prohibitively high rents for industrial             the pressure on industrial lands will continue if no
businesses or the desire by the owner to sell and cash       changes are made.
out. Increasing land speculation has a similar effect.
0 Industrial lands
near downtown are reportedly
Both trends are having a negative impact on local
attractive to new and growing regional employers in
industrial businesses.
'creative industries' like software and other technology
Factors contributing to the increasing
conversion         development. Some of these businesses are attracted to
pressure include proximity to downtown, low           industrial zoned land because it offers opportunities for
vacancy rates in non-industrial zones, current land         low-scale, single company campus-type development
use code which permits large scale nonindustrial         with large oorplates, while still having proximity to
uses, the ability of newer businesses to invest             downtown amenities and a central location.
more heavily in their property and operations,
and increased acquisition of industrial land by
governmental entities, often for conversion to non-
industrial uses.

Industrial businesses have unique and special needs.
0 Non-industrial neighbors
are impacted by the           that commercial or residential uses would generate.
noise, dust, odor and trucks associated with nearby
0 Manufacturing and industrial and marine-related
industrial uses which can lead to restrictions on
businesses generally require large tracts of lower cost
industrial operations. This indicates that use and
land with access to freight transportation, heavy use
zoning in areas surrounding industrial lands can be        utility infrastructure and some separation from non-
important factors.                               industrial uses.
' Converting industrial
areas to commercial
' Water-dependant businesses
are very important to
or residential uses would require substantial
Seattle's industrial sector, and require a variety of
investments in infrastructure. Industrial areas are          infrastructure needs that other businesses do not.
characterized by poor roads and drainage, lack of
sidewalks and inadequate access for commuter trafc
12

Seattle Planning Commission Observations

There is a need for investment and preservation :in industrial lands-related
infrastructure.
0 Many industrial businesses require substantial           ' Many ofthe facilities usedsby industrial
businesses are
transportation infrastructure for freight mobility,           aging, and need reinvestment.'lhis re-investment may
including wide turning radii, easy and quick access         be difcult for these businesses due to the low-margin
to major transportation corridors, and access to           nature of their operations and a lack of capital.
rail and port infrastructure. These businesses also
' Investment in the remediation of
contaminated sites in
require investment in public transit options for their
industrial lands will be necessary to ensure these sites
employees. Improvements to this infrastructure could
and Seattle's industrial lands in general are fully utilized.
increase the viability of these businesses. The future
of the Viaduct will have a great effect on freight
mobility, and will need to be considered.

Seattle's Existing 
Industrial Uses Map



Industrial Zone: - Inaugural
:....'         -WM"
Existing Land Use-
Tnnsp/uIiI/comm
R"W
lmliluons. Public Fociilios, Schools                                                              Washingfo

Lake


13

Seattle Planning Commission Recommendations
Little Ship (T18), 2000Mary IversonOil on Canvas, 6" x 8" x 1"Seattle City Light 1% for ArtPortable Works Collection
"ITIdUS'TiCII zoned land is a vital CiViC asset.
Because Seattle's industrial businesses
are critical to our city's overall economic health and global competitiveness the City should strengthen
its industrial policies. The retention of industrial land contributes signicantly to Seattle's family
wage job
base, provides signicant tax revenue to the city and is essential in providing stability to our
economy.

We are a growing city with lots of competition for scarce land. This competition has created the need

for quick action to protect and provide certainty for industrial land. Seattle's industrial zoned land
provides a sanctuary to industrial business in a tight land market and once converted is not likely to
be replaced. The industrial sector contributes to the City's diverse
economy, which protects us from
economic downturns and preserves our quality of life. In the past, the industrial sector has served
as

a counterbalance to the cyclical nature of other industries. This sector also provides the mainstay of
middle income jobs to individuals without higher education. These factors should be highly valued when

we consider 'highest and best use' of our scarce land."   - Seattle Planning Commission, July 2, 2007

The Planning Commission has been carefully reviewing    We used all of this information to conduct our
V.
i   Seattle's policies regarding industrial zoned land              independent analysis and as such we have concluded
for many years. In addition we have conducted and       the following:
reviewed research and analysis on the current market
and employment trends. We also conducted extensive
stakeholder outreach.
I]  Generally, the policies outlined in Seattle's Comprehensive Plan continue to be relevant
' and appropriate framework guidelines for the treatment of Seattle's industrial
'                                                                                                        areas and
illustrate the City's historical support for the unique needs of industrial business. However,
the City should look for additional ways to strengthen and expand Comprehensive Plan
policies to reinforce their commitment to protecting industrial areas in the City.
14

Seattle Planning Commission Recommendations

The City should align its zoning and land use policy t6 ehkure' the integrity of
Seattle's vibrant industrial businesses. .
0 In order to
preserve and foster Seattle's industrial          and 25,000 square feet or 1:1, Floor Area Ratio with a
businesses, the city should not reduce the geographic      conditional use. In order to obtain a conditional use, the
area of its General Industrial 1 (lGl ) and General           use "needs to be located in the industrial area or building
Industrial 2 (IGZ) zones. It should reexamine the land        because industrial rms or their employees constitute
use code restrictions in these zones, however, in the        the primary market of the proposed use." In Chicago,

manner documented below. Industrial Commercial        general retail sales uses are limited to 3,000 square feet,
(IC) may need some adjustment, both in terms of         and must be accessory sales of goods produced onsite.
geographic area and land use code restrictions. When       Generally, ofce uses are limited to 9,000 square feet, a
examining IC zones, the City should look again at the       reuse of an existing building, or as an accessory to the
constraints in these zones to ensure the City's policies       allowed industrial use.
regarding retail and ofce uses are focused 0"           0 Residential
uses should continue to be expressly
creating employment centers. The City ShOU'd ensure       prohibited in industrial zones. In Seattle's land use code,
enough exibility exists to foster employment centers      residential uses are currently allowed in Single Family
that can exist and thrive in 'C zones.
zones, Multifamily zones, most commercial zones and in
0 The allowance of excessive
amounts of retail             the Seattle Mixed zone. Single Family and Multifamily
and commercial uses in industrial zones has             zones comprise close to 80 percent of Seattle's total
compromised the integrity of Seattle's industrial base.       land acreage. Consistent with the Comprehensive Plan,
We recommend that the City signicantly restrict          residential uses should continue to be encouraged and
the amount of retail and commercial uses that are         focused in a way consistent with Seattle's Urban Village
allowed in industrial zoned areas. Small retail uses are       Strategy, focusing the bulk of residential growth in
important to the functioning of the industrial areas;        Urban Centers that are served by infrastructure.
by limiting the size Of these uses, we expect that         0 The City should carefully and clearly dene what
new retail "595 Will be those that primarily SUPPO"
constitutes an industrial use in order to provide more
the industrial area.These size limitations may vary
clarity for land owners, potential developers and new
between 'G and 'C zones, well as creating stricter
businesses that may want to locate in Seattle.
size limitations in IG zones than in IC zones, to best
0 Public agencies should be discouraged from locating
foster the intended uses for each zone. For example,
inappropriate uses that disrupt the industrial nature of
Portland's "industrial sanctuary"zones limit retail and
these areas.
ofce primary uses to up to 3,000 square feet outright

The City should implement a variety of land use and zoning strategies to stabilize
and provide clarity regarding industrial lands.
Seattle should tighten its land
use practices by putting      ' Contract
rezones should be severely limited and only
limits on conditional uses and special purpose overlays       allowed in special circumstances when there is a wellthat
change the nature of industrial areas.                documented public policy rationale for doing so. The
. The City should treat land in Seattle's MIC                city should outline clear and understandable criteria for
as an area
that requires additional sanctuary from uses that de-       meeting a high threshold.
grade and compromise industrial uses. Seattle should       In order to provide certainty and stability
to the
consider applying some ofthe strategies used by          industrial areas the City should refrain from entertaining
cities regarding "Industrial sanctuaries'to Seattle's MICs.       requests to rezone major portions of industrial land.

0 The City should increase enforcement of
uses to ensure
that only industrial uses are occurring in industrial zones.



15

Seattle Planning Commission Recommendations

Any adjustments to Seattle's industrial lands strategy should be based onwell
documented data which accurately measure the success of its industrial land
policies.
The City should conduct ongoing monitoring and         The city should continue to track
wage and employment
measurement of vacancy and utilization rates on          information regarding industrial jobs, to determine
industrial lands. Periodic reports should be created         if industrial policies are working to preserve family
and analyzed to conrm issues and opportunities         wagejobs, including jobs that do not require a college
related to how these lands are utilized, and the            education.
results from such studies shall assist DPD, the Seattle
Planning Commission, and the Executive in analyzing
and acting upon any related Comprehensive Plan
amendments.

Seattle's port and transportation infrastructure puts it at a distinct competitive
advantage. These resources should be protected, and infrastructure investment
plans should be developed for Seattle's industrial areas.
0 Seattle is
an important seaport for international trade      0 Investment in transportation infrastructure that
supports
and cargo shipping. This sector of Seattle's economy       industrial business and its workforce is essential. As
is vital and should be specically protected from uses       jobs and housing growth continues, the transportation
that will negatively impact the efcient movement         network is becoming more constrained. Freight mobility
of freight and Seattle's competitiveness in the global        and the movement of cargo should be a signicant
economy.                              priority in local and regional transportation investments.
0 The City should create
an industrial infrastructure          Single occupancy vehicle trips through and to the
strategy to accompany the Industrial Lands Strategy        industrial areas should be discouraged.Transportation
that will build on the industrial needs and focus of         agencies should work closely with major employers to
the industrial areas.                                take advantage of existing public transit amenities that
serve the worker in these areas to minimize the adverse
impacts of increased trafc in industrial areas.

The City should examine the current capacity for research and development
(R&D) businesses in land currently zoned Commercial, Seattle Mixed, and Industrial
Commercial before rezoning lands to accommodate these uses. Sufcient capacity
may already exist for these businesses, and creating new land for these uses may
not be necessary.
0 The City should clearly articulate the difference            businesses are currently allowed in land zoned
between R&D that has a valid and compelling need        Commercial, Seattle Mixed, and Industrial Commercial
to be located in an industrial area versus those that         where infrastructure exists and conicts with other
act more as a typical ofce use. Only R&D that has a         industrial users can be minimized.
clear and compelling reason to be in industrial areas
0 After examining current capacity, the City could consider
should be permitted and should be focused in land
allowing greater exibility including density, Floor Area
zoned IC.
Ratio and heights in a areas currently zoned IC, Seattle
0 The City should specically consider where best
to         Mixed or Commercial to accommodate the different
accommodate the needs of'cleaner and quieter'          needs of the'cleaner and quieter'industrial businesses
industrial businesses such as high tech R&D and          that have a specic need to be in industrial zoning.
biotech. High tech R&D and other'new'industrial


16

CONCLUSION
We hope that this document will be of assistance as the City -
nalizes its Industrial Lands Strategy. The Commission will
continue to be involved in reviewing the nal proposal and
will assist Council as they review the proposal. We hope
we can continue to be a resource for policymakers as they
grapple with this complex and important issue.
With this document, the Commission has attempted to
create a framework to guide the manner in which the City
handles future decisions regarding the vital resources that
are Seattle's industrial lands. We hope it will serve as such a
guide for long after its completion.
Our intent is to advocate for an Industrial Lands Strategy that
will provide more clarity and certainty about industrial
areas
and the City's continued commitment to industry in Seattle.
The Commission strongly believes that decision-making
concerning Seattle industrial zoning should be based on an
informed and well-thought out strategy.
The Commission would like to take this opportunity to thank
the Mayor's ofce, the Urban Development and Planning
Committee of the Seattle City Council, the Department of
Planning and Development, and the Ofce of Economic
Development for their hard work and assistance in creating 
a Strategy. We would also like to thank industrial businesses   Crane Study#4 (Pipes, 2000
and land owners, stakeholders and members of the public    Mary Iverson
Oil on Canvas, 7" x 5" x1"
who attended workshops, provided written comments
or
Seattle City Light 1% for Art
made comments at public meetings. We have sincerely
Portable Works Collection
appreciated the opportunity to assist the City of Seattle
in reviewing its industrial lands policies and making
recommendations for the future of Seattle's industrial lands.

ACKNOWLEDGEMENTS   Analysis, Production and Writing: Barbara E. Wilson
Casey Mills
Linda Amato         Martin Henry Kaplan         Graphic Design: Liz Martini / Maps: Jennifer Pettyjohn
Hilda Blanco          Kay Knapton               Photos: Liz Martini, Scott Dvorak, Municipal Archives et al.
George Blomberg      Amalia Leighton           Special Thanks to:
Mahlon Clements      Robin Magonegil           Ron Borowski Moon Callison, Nora Curry, Councilmember
,
Tom Eanes          M. Michelle Mattox          Conlin, Deputy Mayor Ceis, Christina DeMarco, Scott Dvorak,
Jerry Finrow          Justin McCaffree             Tom Hauger, Steve Kountz, Phil Lutes, Laura Lutz, John
Chris Flori                                         Rahaim, Mary Jean Ryan, Eric Schinfeld, Susan Shannon,
Kevin McDonald
Councilmember Steinbrueck, Valauri Stotler, Diane Sugimura,
Marshall Foster        Kirstin Pennington
Brian Surratt, Philipp Schmidt-Pathmann, Nathan Torgelson,
Colie Hough-Beck      Steve Sheehy
and all of the stakeholders and members of the public who
Mark Johnson        Carl See
generously donated their time and energy to provide us with
Valerie Aleta-Kinast      Tony To                    your thoughts, perspectives and expertise.
l7

Seattle Planning Commission
700 Fifth Ave, Suite 2000
PO Box 34019
Seattle, WA 98124-4019
Phone: 206684-0433
Planning Commission publications can be found on its website
at: http:/lwww.seattle.gov/planningcommission/

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