The Pacific Northwest port, along with the City of Burien, Wash., and real estate company Panattoni Development, broke ground Tuesday on a 26.2-acre site that will house two industrial airfreight warehouses.
The Port of Seattle, along with the nearby City of Burien, Wash., and real estate company Panattoni Development, broke ground Tuesday on a 26.2-acre site that’s expected to house two industrial warehouses totaling 458,500 square feet.
The master planned area in the City of Burien is known as the Northeast Redevelopment Area, or NERA. The companies co-locating on the site will be involved in storage, processing, airport services and logistics related to aviation.
NERA is expected to anchor 600 to 800 jobs in the next three years, according to the Pacific Northwest port.
“Redeveloping this property brings economic development and tax revenue to Burien, and advances the port’s goal to increase air cargo business and jobs,” Port of Seattle Commissioner John Creighton said.
The port’s agreement with Panattoni Development includes a 55-year initial term, plus two 10-year extensions, for a total of 75 years. The initial annual rent will be just over $1 million, with a provision to increase that base rent increase every five years, as well as fair market valuations every 10 years starting in 2021.
“The redevelopment of NERA is an example of how successful public-private partnerships can bring more jobs,” Burien Mayor Lucy Krakowiak said. “This site, along with our new cold storage facility, is key to diversifying our business base and will be part of an important job center in our community.”
Both buildings are scheduled to be completed in early 2018, according to the port.
The groundbreaking comes as the port is ramping up its search for a new executive director to replace Ted Fick, who resigned under pressure in February.
Earlier this week, the port announced it has opened an electronic survey where stakeholders and the public can list the qualities and experience they desire in the port’s next leader. The nine-question survey, which is open until June 23, takes 5-10 minutes to complete.
Fick, who was hired to replace outgoing CEO Tay Yoshitani in September 2014, resigned in early February during a probe into an alleged $4.7 million in potentially illegal payouts to 642 port employees. A state auditor later found that the employee bonuses violated the state constitution.
The port’s Chief Operating Officer, Dave Soike, is currently serving as Seattle’s interim CEO. The port has said it expects to hire a permanent leaders sometime in the fall.