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Pike Place Market Preservation and Development Authority a Business Pike Place Market Preservation and Development Authority A Business, Economic and Public Policy Assessment of the PDA’s Properties January 2004 Pike Place Market Preservation and Development Authority The Market Foundation PIKE PLACE MARKET VICINITY AND PDA BUILDINGS 6 7 9 1 5 Seattle Center & Space Needle 3 8 11 10 2 4 12 N Belltown Livingston/Baker Corner Market 1 7 Building Building Historical Convention Bell Harbor District Center Conference Center 2 Soames Dunn 8 Main Arcade/ Building Fairley Building PDA Buildings 3 Stewart House 9 Economy Market Building 4 North Arcade 10 LaSalle Building 5 Triangle Market 11 Leland Building Building Sanitary Market Public Market 6 12 Building Parking Garage N Capital Investment Needs: A Business, Economic and Public Policy Assessment PIKE PLACE MARKET: IMPORTANT ECONOMIC CONTRIBUTOR The Market is an important business In addition to the economic benefi ts of the and economic contributor in the region. Market’s enterprise activities, the Market provides The analysis shows that the Market is a signifi cant community and economic development value to contributor to business growth and economic the city of Seattle. These benefi ts are related activity in downtown. Gross revenues of businesses to the Market’s role in creating and maintaining in PDA properties were nearly $86.8 million in 2002, community character and livability downtown and up 6.1% from revenues of $81.8 million in 2000. In city-wide, and in enhancing Seattle’s image and 2002, the sales activity in PDA properties generated identity as a desirable place to live and to visit. approximately $3.9 million in tax revenues, including $3.3 million in sales taxes, $500,000 in The Market plays an important role in Seattle’s B&O taxes and more than $100,000 in utility taxes. commerce and culture, serving as a vibrant anchor of downtown activities. In particular, the Market The Market also serves as a major employment has been a signifi cant contributing factor to the center, with the number of workers at PDA growth of key downtown neighborhoods such as “Really neat: Pike Place buildings ranging seasonally from approximately Belltown, the waterfront and the Western Avenue Market, in downtown Seattle, 1,500 in winter to up to 2,400 in summer. Indirect area (including the Harbor Steps development). is famous for the stalls where and induced employment adds another 3,600 jobs the traders throw fi sh and associated with related business transactions, and The Market serves as a neighborhood grocer and chorus in operatic style if much of the economic benefi t associated with these mercantile center for the 20,000 persons living you have the courage to buy jobs remains in the local economy, due to the local within walking distance. In this role, it has played anything. The Athenian Inn, ownership of Market businesses. an important part in the recent growth of Belltown, located in the Market, is one the waterfront and nearby neighborhoods. of Seattle’s oldest places to eat.” The Guardian (United Kingdom) September 16, 2000 Page 1 For decades, the Market has drawn 8-10 million visits annually, including locals and tourists from across the country and the world. Interviews conducted for this project indicate that visitors to Seattle have a high awareness of the Market and seek it out as a destination upon arrival. The Market’s many visitors benefi t nearby businesses and downtown attractions, as well. In close proximity to the Downtown retail core, theaters, and symphony hall, the Market is part of a vibrant network of downtown activities. The Pike Place Market is a Seattle icon and historic landmark for residents and visitors alike - one of the most recognized attractions in the City and a critically important part of the fabric of Seattle. For generations, the Market has played a pivotal role in the economic health of downtown and beyond. Capital Investment Needs: Page 2 A Business, Economic and Public Policy Assessment BACKGROUND AND REPORT PURPOSE This report was commissioned by the Pike Place Toward that end the Market’s role in each of these Market Preservation and Development Authority areas is assessed. (PDA) and the Market Foundation to inform the PDA Council, the City of Seattle, Market stakeholders > Business and Economic Activity. Analysis of and the public about the Market’s business, the Market’s role in the local economy and economic and fi scal impacts on Seattle and the as an economic engine, including analysis of broader community. direct and indirect economic impacts, direct tax revenue benefi ts, Market employment and The quantitative analysis in this study focused indirect and induced economic activity; exclusively on retail activity of PDA tenants. The many retail businesses within the Historical District > Community Character and Livability. and outside of PDA-owned buildings add great value An assessment of the community and The Market Plays Three Key Roles in to the Market and to the City, as discussed in the regional benefi ts associated with the Economic Development qualitative sections of the report. Similarly, social Market’s role in promoting community services and housing based in the PDA buildings character and livability; Business Growth add value and are also not included in this study. & Economic A companion Technical Appendix has also been > City Image and Identity. A brief Activity Driver prepared, containing data and the results of the assessment of the economic technical analysis. development benefi ts of the Market’s contribution to the City’s image and The balance of the report is organized around the identity. Community Community concept (illustrated to the right) that sustainable Image Character & economic development depends on three key & Identity Livability elements: business growth and economic activity; Seattle image and identity and, community character and livability. Page 3 “The Market” – Commonly refers to the whole of business RESEARCH METHODS activity within the Historical District, though Seattle residents and visitors surely vary broadly in their own perceptions of Market boundaries. Report references of “The Market” follow the common reference to the Historical District. The framework for this report includes a range of quantitative analysis to qualitative analysis, Pike Place Market Historical District – Seven-acre land area designed to document the economic context approved as an Historical District in 1971 by Seattle voters relevant to the PDA’s capital needs assessment. and expanded by City Ordinance 113199 in 1986 to incorporate Toward this end, the economic analysis focuses additional property on the west side of Western Avenue. narrowly on the direct and indirect economic benefi ts resulting solely from the activity Pike Place Market Historical Commission – Established along occurring in PDA-managed properties. with District boundaries in 1971 “to make those judgments of quantity and quality which assure preservation of the character Research contributing to this report included of the Market and perpetuation of the architectural, cultural, technical data analysis, qualitative analysis economic and historical qualities of the District” (Pike Place and interviews of PDA staff and tenants. The Market Historical District Guidelines, Seattle Municipal Code quantitative work included detailed analysis SMC 25.24) of tenant information provided by the PDA, confi dential data gathered by State and City Pike Place Market Preservation and Development Authority government regarding revenues and employment (PDA) – The Pike Place Market PDA is a nonprofi t public provided and business activity data reported corporation chartered by the City of Seattle in 1973 to by PDA tenants through a tenant survey of all serve as caretaker and steward of the City’s historic public PDA tenants (including daystall renters). The market center. The PDA serves as landlord for the majority of public-sector data included existing data sets properties located within the Market Historical District. analyzed for this study, including some analysis completed by the City of Seattle, the Washington The Pike Place Market Foundation – Raises money to support State Employment Security Department and the the Market’s services for low-income people, including its Washington State Department of Revenue. Medical Clinic, Senior Center, Food Bank and Child Care & Preschool. The Foundation also supports the Market’s heritage programs, public improvements and repairs to the Market’s historic buildings, development of new low-income housing in the Market, and programs that assist the Market’s farmers. Capital Investment Needs: Page 4 A Business, Economic and Public Policy Assessment The Pike Place Market Preservation and THE ROLE OF THE PIKE PLACE MARKET Development Authority was Chartered in 1973 to: PRESERVATION AND DEVELOPMENT AUTHORITY • Ensure the traditional character of the Public The Pike Place Market Preservation and Development The PDA’s primary operating functions are that of Market is preserved Authority was chartered in 1973, with authority for property manager and business support center. operating, managing, preserving and developing the As property manager, the PDA manages leasing • Renew, rehabilitate, Market’s buildings, infrastructure and open space. activities, responds to tenants’ needs, and works preserve, restore and The PDA is responsible for supporting the Market to provide a safe and clean environment for the develop structures and Historical Guidelines and is accountable to its millions of people that visit and
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