In recent years, Bellevue, Washington, has experienced a tech boom, drawing companies and talent to the city located just east of Seattle. Notably, Amazon’s massive expansion plans in Bellevue are set to bring in 25,000 new employees. Despite this, Seattle Mayor Bruce Harrell asserts that Seattle maintains the upper hand when it comes to innovation and cultural richness.
Speaking at the AI House on Seattle’s waterfront, where he introduced the city’s new artificial intelligence policy and plan, Harrell emphasized Seattle’s unique appeal when competing for companies looking to establish offices in the region, including Bellevue and Redmond.
Harrell highlighted Seattle’s diverse community, vibrant arts scene, renowned music culture, top-notch restaurants, and rich history of innovation, taking a playful dig at his neighboring city across Lake Washington in the process.
“They don’t have an AI House in Bellevue,” Harrell quipped, referring to Seattle’s recently launched startup hub funded by the city. “We thought of it here.”
Addressing a query from Bloomberg reporter Anna Edgerton, Harrell emphasized Seattle’s distinct historical background that serves as a draw for employees. He stated, “We have our own unique history that we leverage for our workforce. We are pioneers, innovators… the Seattle World’s Fair wasn’t in Bellevue; it was right here in 1962, putting us on the global map.”
These statements underscore the escalating rivalry between the two cities.
Over the past year, several tech companies from out of town have established and expanded offices in Bellevue, including Zoom, OpenAI, Shopify, Anduril, and Snowflake. Additionally, the city is home to headquarters of major companies like T-Mobile, Valve, and Smartsheet, with offices for Meta, ByteDance, and Pokémon also present.
Amazon has significantly expanded its presence in downtown Bellevue after facing off with Seattle policymakers over corporate tax issues in recent years. Bellevue now serves as a focal point for the company’s future growth in what it terms as its Puget Sound headquarters region.
During an interview with GeekWire last year, Bellevue Mayor Lynne Robinson expressed disinterest in adopting policies similar to Seattle’s payroll tax.
Harrell refrained from discussing tax policies in his recent remarks. However, he has backed a proposal to raise Seattle’s business & occupation tax, which currently exceeds Bellevue’s rate. Seattle voters also recently approved a new tax targeting large corporations like Amazon to fund a social housing developer.
Both cities have experienced challenges in their commercial real estate sectors since the onset of the pandemic.
- The downtown Bellevue vacancy rate surged to 17.1% from 3.3% in 2019, as per a Q2 report from Broderick Group.
- Seattle’s downtown vacancy rate surpassed 30% in the second quarter, according to Kidder Mathews.
The two cities are set to strengthen their connectivity through public transit, with a new light rail line expected to open early next year. Another recently launched line now links Bellevue to Redmond.
Harrell’s statements coincided with the unveiling of Seattle’s new AI policy and plan, reflecting a broader initiative to establish the city as a frontrunner in artificial intelligence nationwide.
“We are deliberate in positioning Seattle as a leading force in responsible artificial intelligence implementation,” Harrell affirmed. “There is no doubt about that.”
Related: Seattle introduces a ‘responsible AI plan’ to steer the city’s tech utilization and bolster the local economy
