by Ralph Nichols

Burien is “seeing a little bit of improvement” in sales tax revenue collected by the city, according to Accounting Manager Gary Coleman.

Collections for March, which were received by the city in May, were about 15 percent below sales tax receipts in March 2009.

While this is not what city officials anticipated when they adjusted Burien’s first biennial budget last fall to account for declining general fund revenues, it’s better than the way the year started.

Sales tax collections for January were down 21 percent, compared to January 2009.

“There was a slight uptick” in sales tax revenue for March, the most recent month for which this information is available,” Coleman told The B-Town Blog. “Things are not so dire as they were.”

The retail trade represented the largest decline as the year began – 55 percent – from January 2009.

Sales tax receipts generated by new car dealers, which accounted for over 40 percent of all sales tax revenue in Burien, were down by 43 percent at the beginning of this year.

Burien began 2010 with four new car dealerships, compared to six three years ago. And this spring Millennium Ford changed owners and became a used-car-only dealer.

All motor vehicle and parts dealers combined accounted for a 31 percent decrease.

Total sales tax receipts were down by almost $373,000 from January 2009.

“We are noticing the strain of the poor economy” in the poor tax revenues, Coleman said. “But the city also planned for this eventuality, so we also have some small [general fund budget] reserves for this.”

Car sales, a “big driver” for sales tax receipts in Burien, were down and construction was slow, he noted. “Everything was down, even gasoline taxes received.”

Although car sales “have always been one of our bigger sales tax generators, this won’t get all the way back. We’re now down by two-and-a-half car dealers.”

But since January, “we have been seeing some signs of life,” Coleman said. This includes “some increased real estate activity.”

Another “good trend” for Burien is that, while local sales tax receipts remain down, county wide sales tax revenue “is slightly up.” And the city receives a small portion of sales taxes collected by the county.

Still, 2010 sales tax revenue projections look “overly optimistic” at this time. City staff, already working with reductions made in the 2009-10 budget last year, is closely tracking sales tax trends as they craft the 2011-12 budget.

Coleman said that, in the meantime, the council could “start cutting things we can” if sales tax collections continue to remain below what was anticipated, or if the economy starts to decline again.

by Ralph Nichols

If you want to buy a new Ford in Burien, you’re out of luck. Instead, you’ll have to drive to Horizon Ford in Tukwila or Sound Ford in Renton.

No, Millennium Ford at 14500 1st Ave. S. hasn’t closed its doors. But it’s no longer a new car dealership.

That’s right. A third dealership on Burien’s “auto row” – long a major anchor of the city’s economy – is undergoing a major change in less than two years.

In March 2009, Burien Nissan was closed by the company and its inventory was repossessed (read our previous coverage here). Earlier, BBC Dodge closed, only to reopen later as a used car – not new car – dealership.

Now, Millennium Ford sells only used cars.

According to an industry source, an unconfirmed rumor suggests that Millennium Ford’s new car sales have been declining. Ford responded by taking both its new vehicles and parts back from the dealer and transferring them to Horizon Ford, located at 11000 Tukwila International Blvd.

Currently, if you call Millennium Ford and ask for the parts department, you are connected to the parts department at Horizon Ford in Tukwila.

And if you call Millennium and get put on hold, you’ll hear this recording:

“Millennium Ford is your used car superstore.”

Also, if you do a search for “Millennium Ford” the first return is “Millennium Used“; on that website is this graphic:

Also, Millennium’s one-time website www.y2kford.com now automatically re-directs to www.millenniumused.com.

Another industry rumor says Sound Ford may acquire Millennium Ford and rename it Sound Ford West, which would become a Ford parts and service satellite center but would continue to sell only used cars.

Despite signage proclaiming "Millennium Ford," you'll no longer be able to buy a new Ford here.

An economic downside for Burien is that, while this auto row dealership remains open, once again there is no longer a sales tax benefit to the city from new car sales. Those receipts now go to Tukwila and Renton.

The B-Town Blog was unable to reach Ford for comment Monday (March 22). But I did go into Millennium Ford, where it was confirmed that they now sell used cars only. Although I was directed to the manager, he provided no other answers and became impatient as I was leaving my contact information for the owner – who had not called by late afternoon.

When I called Horizon Ford and asked for the general manager, I was connected with someone who identified himself as Frank. He confirmed that Horizon now has Ford’s new car inventory and the parts that had been at Millennium, but did not provide any other information. He also declined to give his last name.

by Ralph Nichols

Burien City Council members were presented with dismal sales tax figures from City Manager Mike Martin at the beginning of their meeting last Monday, Oct. 5th.

Through July, the city’s sales tax revenue for the year to date was down 16.2 percent compared with the same time frame in 2008, Martin reported. For July 2009, compared with July 2008, it was down 19.7 percent.

The data reflect a 14.3 percent decline in retail trade in the city, a 47 percent decline in construction-related purchases, and a 10.6 percent in accommodations and food service.

But this does not make Burien unusual. “We’re pretty much on par with our neighbors,” he observed.

NORTHEAST REDEVELOPMENT AREA
Council members heard a presentation by Scott Greenberg, Community Development Director, on proposed revisions for the city’s Northeast Redevelopment Area (NERA) that, if adopted, will amend the Burien Comprehensive Plan and certain zoning designations within this area.

The NERA, located north of Sea-Tac International Airport between 8th Ave. S., S. 138th St., and Des Moines Memorial Dr., is an area that both the city and Port of Seattle, which owns much of the property there, hope is developed for business and commercial activity.

Alternative 1 in this proposal would change the existing Special Planning Area 4 designation to Airport Industrial and Professional Residential. In both areas, the current two-acre minimum for redevelopment would be eliminated.

Potential uses, according to Greenberg, include technological, light manufacturing, light industrial and offices. Auto sales and other commercial uses would be allowed in the south paort of the Airport Industrial zone.

The Professional Residential would allow for new single-family developments as well as small offices, retail uses and art studios.

Alternative 2 would include the same zoning changes, but would not include auto sales and other commercial uses.

Alternative 3 would leave the current NERA zoning unchanged.

These proposals will be introduced at the Tuesday, Oct. 13th meeting of the Burien Planning Commission at 7 p.m. in City Hall. On Tuesday, Oct. 20, a joint hearing with a hearing examiner and the planning commission will consider the proposed comprehensive plan amendments and proposed zoning changes.

Liz Ockwell, an assistant city planner, detailed for council members proposed zoning code amendments relating to land use, garages, slope, parking and landscaping for new developments.