Arena or Amazon: Does Seattle know what's important?

[M II A II R II K]

Arena or Amazon: Does Seattle know what's important?


February 20, 2012

By Jordan Royer



Read More: http://crosscut.com/2012/02/20/real-...-s-important-/

We witnessed two blockbuster deals for Seattle and the region last week. One, the proposal to build a multi-use sports and entertainment venue in the SoDo neighborhood, captured the imagination of sports fans everywhere. The other, the announcement of Amazon’s intent to purchase three blocks in the Denny Triangle from the Clise family received nominal coverage. By any economic measure, though, the Amazon deal is much bigger for Seattle, with no public funds expended. What does this say about us? And how does this reflect how we will negotiate with the NBA, the arena ownership group, and others in the coming weeks? Will we be optimistic while at the same time maintaining a healthy dose of skepticism? And will we separate the emotional from the economic?

- First, consider the Amazon deal to build 3 million square feet of office space, creating thousands of jobs, including the revenue that will create new shops and restaurants, and real estate excise taxes (REET) for the city. This is a huge long-term commitment that will continue to pay huge economic dividends far into the future. The thousands of high-paying jobs that will grow here because of this deal dwarf the economics of a new arena. As our vice president would say, “this is a big f#%&ing deal!” In most cities this would be the biggest deal in decades. There would be press conferences, celebrations, and photo ops — but not here. Not in Seattle. Here, we are under the trance of something that transcends economics. We see an opportunity to get back what was stolen from us: our beloved Sonics.

- We have been given an opportunity at redemption by a local guy from the neighborhood, Chris Hansen. Hansen graduated two years behind me at Roosevelt. I never knew him but am proud nonetheless that he is stepping forward with this plan. Hansen has made a proposal to the city to bring back the team that is both generous and audacious. The mayor and the county executive are completely right to work with him to find a way to make this happen. I don’t doubt Hansen's civic pride as the driving force for his proposal. Because, let’s be honest, the year-to-year economics of an NBA franchise don’t add up. The return on investment comes upon the selling of the team. Ask the former ownership group of the Sonics — the people who have their names on the symphony, opera, aquarium, and zoo.

- Since the team itself will only cost money, other avenues of profit must be opened. Will there be opportunities for investors to build hotels, condos, and restaurants? Is the new arena (likely a mall with a basketball court and hockey rink) a catalyst for more development and rising property values? Who knows? What kind of traffic mitigation is planned for the area to keep things moving while not threatening the port’s international competitiveness? How many new parking spaces will be needed? It’s doubtful that fans from Bellevue paying $100 for a ticket will be taking the bus in.

- And finally, why has Seattle Center always been rejected so out of hand? Aren’t we investing millions in traffic improvements there? Wouldn’t it be great for Lower Queen Anne businesses to be bustling again with Sonics fans? Three million square feet of office space being built by Amazon is within walking distance to the Seattle Center. The Gates Foundation is right there. We know that KeyArena is not big enough to house all the restaurants and shops that are part of the new NBA economic model. But there must be space to build what’s desired there.

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CenturyLink and Safeco Field could be joined by a sports arena.






The courtyard outside the Van Vorst Center on Terry Avenue N. offers seating for Amazon employees and the public.