Safeco leaving U-District

[img1]Safeco Insurance will no longer have a towering presence in the University District. The company, which was founded in 1923, has announced that it will be selling its U-District building and leasing offices downtown.

"There clearly will be some level of economic impact," said Teresa Lord Hugel, executive director of the University Chamber of Commerce. "My hunch is that it will cause a ripple of economic challenges in the community."

Paul Hollie of Safeco Media Relations called it a "necessary decision to lower our costs."

Safeco, which insures cars, homes and businesses, and has been recognized for its service to the community, will begin moving employees downtown and to other locations in 12 to 18 months, Hollie said. About 700 employees will continue to work at leased space at Roosevelt Commons in the U-District.

The announcement came as a shock to many. Just last April, the Seattle Post-Intelligencer reported that Safeco announced it was here to stay. According to the Seattle P. I., the company planned to add additional office space in the U-District.

"I can pretty safely say that the University District is back in business," Mayor Greg Nickels said, according to the P.I.'s report.

Marty McOmber, senior communications and policy officer for Nickels, said the decision was a surprise to the mayor's office, but that effects of the move could not yet be foreseen.

"[Nickels] has put a lot of effort in reviving and revitalizing the University District," McOmber said. "That commitment is not going to waiver in face of Safeco's decision."

Safeco CEO Paula Rosput Reynolds said in a press release the company's move "affirms our commitment to Seattle and the Puget Sound region."

"It also lays the groundwork for the use of technology to create a more virtual workforce, giving our employees more options and helping ease our region's traffic congestion," Reynolds said.

Hugel said she was surprised and sad to see Safeco go.

"They've been a very good neighbor," she said, adding that Safeco has a strong commitment to the community.

Safeco is dedicated to promoting safe and vibrant neighborhoods, according to its Web site. It provides grants to non-profit organizations and encourages employees to get involved in the community through volunteerism.

In 2003, Safeco received the United Way of King County's Spirit of Caring award, according to the company's Web site.

"They will still have a presence here for a number of years," Hugel said, referring to the Roosevelt Commons offices. Hollie said that Safeco has no plans to relocate those employees.

Negative economic impacts of the move should be minimal, Hollie said.

"There's going to be brand new opportunities for this community as well," she said. Safeco is dedicated to serving the communities in all the areas in which it does business, she said, which would still include the U-District. "That doesn't change."

It is important the neighborhood continues to move forward, Hugel said.

"This is not the end of the world for us," she said. "It is a sad day, but it is not the end of the world."

Hollie said Safeco has not yet sought potential buyers, but many agree that whoever moves in will likely have a profound impact.

"I hope that whoever takes over this tower is as good a community sponsor as Safeco has been," Hugel said.

Reach Daily reporter Meghan Erkkinen at: [url='mailto:meghanerkkinen@thedaily.washington.edu']meghanerkkinen@thedaily.washington.edu[/url]