Traveling across King County, I get asked a lot of questions about the Port of Seattle. Here are some of the most frequently asked questions along with my answers. If you have a question, please send it to me.

1. Would it affect our economy much if we developed the waterfront into commercial and residential uses and let the port move to Tacoma?

   Not everyone realizes how critical the Port of Seattle is to our local economy.

   35,000 jobs in King County are related to the Port of Seattle's maritime sector. Some studies put that number as high as 60,000 people. Regardless of which numbers you use, it is clear to me that a lot of families in King County depend upon our maritime sector. Not all those people work for the port, but they work for port tenants, shipping lines or for companies that are here because our port is here. And, because the Port of Seattle has used tax levy funds to upgrade Fisherman's Terminal, Seattle is home to the Pacific fishing fleet. Because we are home to the Pacific fishing fleet, major seafood processing companies and marine service and supply companies are here.

   Many of the 35,000+ jobs in this maritime sector pay between $50,000 - $75,000+. If we lost the Port of Seattle there is no other company we could attract that would hire 35,000 people at those salaries.

   And, if we developed the waterfront into condos, restaurants and t-shirt shops, there is no guarantee those thousands of jobs would move to Tacoma. It is just as likely they would move to Canada or Mexico.

2. Why does the Port of Seattle need a property tax levy? What do you use it for?

   Why does the Port of Seattle need a property tax levy? What do you use it for?

   Property taxes are used to support projects that are in the public interest, but that might not yield a profit to the port, even though they generate jobs and income into King County’s economy. For example, the levy is used to support and enhance Fisherman’s Terminal. Fisherman's Terminal does not return a profit to the port, but because the terminal is the home of the North Pacific fishing fleet, thousands of well paying jobs are located in King County.

   Levy dollars are also used for road construction, the construction of new, noise insulated schools in the Highline School District, and for environmental cleanup projects and habitat restoration.

   No tax dollars are used to pay for sea or airport port operations. Port operations are paid out of port operating income.

   In 2010, the reduced property tax will be used as follows:

   · A little over $40 million on bond debt service for previous dredging, terminal expansion and Fisherman’s Terminal seawall projects

   · Over $15 million on road construction, including expansion of Spokane Street viaduct, overpasses near Safeco Field, East Marginal Way improvements and freight projects in the Kent Valley
   · About $13 million into transportation & infrastructure reserves
   · Over $8 million into environmental projects
   · Over $9 million for new school construction in the Highline School District (near SeaTac)
   · Over $19 million on industrial lands, including seawall replacement, dock repair and storm water upgrades.

3. If the port makes a profit, why does it need to collect 2% of the property taxes?

   The airport is the most profitable division of the port. If the port could use airport profits to fund non-airport projects, the tax levy would be a lot less necessary, BUT, the Federal Aviation Administration prohibits airport profits from being used on anything other than airport projects.

   The seaport makes a profit, but those are used to finance seaport maintenance and capital projects.

   The levy enables the port to support businesses and properties that might not return a profit, such as Fisherman’s terminal, but that benefit our community and economy and environment.

4. Why is the Port of Seattle the only port to receive tax support?

   Ports around the country receive public support in different ways. I recently visited the Port of Anchorage and learned it receives funding directly from the state legislature for many of its long-term investment and expansion needs. That is true of many ports on the East Coast as well.

   In some states, such as in California, ports were originally given property. San Diego, for example, receives significant commercial real estate revenues from property it was given by the state. Ports in New York receive funds from the road tolls.

   The Port of Seattle has had to pay for every piece of property it owns. In Washington State, ports were formed early in the twentieth century because the waterfront was owned by timber, mining and shipping interests, and the people wanted the port to be held in public hands. The port tax levy was created to help the ports raise money to buy back the waterfront and maintain it in the public interest.

   The Port of Tacoma, like other ports in Washington State, collects a property tax just as Seattle does.

   People should also be aware of the foreign subsidies our West Coast competitors receive. Canada has recently invested hundreds of millions of dollars transforming the ports of Vancouver and Prince Rupert into serious competitors of Puget Sound's ports. It is in this competitive environment that the ports of Seattle and Tacoma must survive and thrive.

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