The Port of Seattle is creating an Economic Development Division to speed up development of its extensive waterfront real estate holdings. The new division will be equal in status to the port’s existing aviation and seaport divisions.
Port CEO Mic Dinsmore unveiled the plan at Tuesday’s Port of Seattle Commission meeting.
In an interview, Dinsmore stressed that the new division doesn’t mean the port is de-emphasizing its aviation or maritime focus. The port simply owns real estate no longer needed for traditional port uses, and has concluded the best way to promote growth in the region is to develop its real-estate holdings.
Tom Tierney, the port’s deputy chief executive officer, will head the new Economic Development Division.
Dinsmore said the first focus of the new division will be redevelopment of Terminal 91, known as the Uplands, directly underneath the Magnolia Bridge. The port is currently involved in discussions to replace the bridge, which connects 15th Avenue West to West Galer Street. Construction on the bridge project is slated to start in 2005, but is dependent on funding.
Dinsmore declined to speculate what type of development the port would undertake there or elsewhere, but acknowledged that mixed-use development including restaurants, retail shops, multi-family housing and office space is a possibility.
Other areas the port could redevelop include Terminal 30, where it is opening a second cruise terminal, and Terminal 106, formerly occupied by Hasbro Inc.
Earlier this year, the port said it was interested in developing Terminal 46, an 88-acre site just south of Pioneer Square and directly west of the new Seahawks Stadium. The site is currently used as a container terminal by Korean ocean carrier Hanjin Shipping.
Dinsmore said, however, that the port will honor its contract with Hanjin, which last year signed a 10-year agreement to remain at Terminal 46 after being heavily wooed by the Port of Tacoma.
He said the new division will provide “unique and meaningful partnerships with the public sector and private sector.” The port hopes to have “some kind of alignment” with the University of Washington to help create future employment opportunities, he said.
Dinsmore noted that recent improvements to Terminals 5 and 18 could potentially more than double the port’s container volume in coming years to more than 3 million.
“We’re absolutely not losing any enthusiasm for the two basic parts of the port, the airport and seaport divisions,” Dinsmore said. “We’re absolutely committed to these businesses.”
Dinsmore said creation of the new division has been discussed informally for years, but the events of Sept. 11, 2001, a dour economy and the loss of some significant customers forced the port to look at ways to diversify revenue and business activity. Port revenues have declined by about $20 million in the past year, or about 20 percent.
Dinsmore cited the port’s recent redevelopment of derelict property along the central waterfront as an example of the positive benefits of economic development.