By Katie Zemtseff, Daily Journal of Commerce Journal Staff Reporter

The Seattle City Council is reviewing a proposal to change land use and zoning regulations in South Downtown. Nothing is final, but development standards, height and density bonuses, and parking requirements may change.

The main goal is to spur development of market-rate and workforce housing in the area, which has not seen as much new development in recent decades as other parts of the city.

The proposal would affect areas around Pioneer Square, the Stadium District, the northern edge of the Greater Duwamish Manufacturing Industrial Center, Chinatown and the International District, and areas east of Interstate 5 that are within the Downtown Urban Center.

By the end of February, council will choose to move forward with the proposal this year or seek further environmental review. Further review would put off any action until 2012.

Changes could go into effect this year if the proposal passes.

A November letter from the Downtown Seattle Association to the Seattle City Council said 18 housing projects and 15 retail and office projects have been completed in the South Downtown area since 1980, compared to 142 projects in the last five years in the other eight Center City neighborhoods, which include South Lake Union, Belltown and Capitol Hill. 

Council Member Sally Clark, chair of the council's Built Environment Committee, said she wants to prepare South Downtown for the next development cycle.

“The numbers are compelling that South Downtown has not enjoyed the market-rate development that other parts of town has. There's no question about that,” she said. “More people living in these areas mean more people demanding services, more eyes on the street, more people caring for it and calling it home.”

Susan McLain, senior urban planner with the Department of Planning and Development, said DPD has spent years meeting with residents to find ways to encourage development and preserve historical character.

“This is a really complicated, fascinating area of the city,” McLain said. “It's not an area that's given to a simple one-size-fits-all kind of thing. We've had to take a close look at what kind of impacts we would have on the community and what kind of benefits the community would want to derive from this.” 

Pioneer Square

There are still a number of issues to be decided. The biggest is building heights in Pioneer Square. Currently, DPD proposes heights of 120, 130 and 150 feet in the area, so a residential structure could range between 12 and 15 stories.

But developer William Justen wants to be able to build to 180 feet, or 18 stories, to make market-rate housing feasible.

The Pioneer Square Preservation Board supports DPD's proposal, saying a 180-foot building would be out of scale with the neighborhood and block views of icons like Smith Tower.

The Downtown Seattle Association supports greater heights along the edges of Pioneer Square. Jon Scholes, VP of advocacy and economic development, said parking garages in the area will become more lucrative once parking is removed under the Alaskan Way Viaduct. He said developers need to build higher to make garage acquisitions worthwhile.

“We don't think it's bold enough and we don't think it's going to attract investment in new market-rate and workforce housing, which we feel is absolutely critical to the future health of South Downtown neighborhood,” he said.

In February, the Built Environment Committee either will decide to stick with DPD's proposal or consider taller buildings in Pioneer Square, requiring more environmental review.

Clark said she wants to pass legislation this year, but she understands that getting height right is more important than speed, considering the economic climate. DPD would like council to pass the proposal this year in hopes of spurring new development.

The North Lot, where Daniels Development proposes a 1.5-million-square-foot complex, would be zoned for 240 feet or 24 residential stories, provided specific conditions are met. McLain said that project will help create a residential presence in Pioneer Square.

Little Saigon

Another tricky area is Little Saigon, where some people fear new development will push out small businesses and residents. Clark said developing market-rate housing is a little scary in that community, but it's needed. 

“I think there is a reasonable fear about changing the character of these neighborhoods,” she said. “It's worth taking the risk and doing what we can to guard against the good parts of the character changing.”

Some things need to change, she said, such as the lack of open space and the perception that South Downtown isn't safe.

Seattle's Nihonmachi or Japantown, the area around Sixth Avenue and Main Street, has many vacant parking lots. McLain said neighbors identified this as a great place for density. DPD plans to increase zoning to 240 feet in many areas or 24 stories.

In the southern portion of the International District, the proposal calls for doubling the maximum allowable height in residential areas from 85 feet to 150 feet. In the core of Chinatown, it would retain current height limits and incorporate a new historic transfer of development rights program.

Council is also developing a companion resolution that will outline work that needs to be done in South Downtown to improve the quality of life, such as public safety, open space and small business support.