Seattle sues real estate company for $4.5M in downtown ambassador fees

The City of Seattle is suing entities connected to Martin Selig Real Estate (MSRE) for $4.5 million worth of unpaid Metropolitan Improvement District (MID) assessments dating back several years.

The fees went unpaid from 2013 to 2024, and are for 160 Downtown Seattle Association (DSA) ambassadors who provide cleaning, safety, and hospitality services 362 days each year, according to The Puget Sound Business Journal.

MID was founded by the DSA in 1999 and is a “business-improvement area spanning 300 square blocks in downtown — from Denny Way to Pioneer Square and from I-5 to the waterfront,” as stated on the DSA’s website.

Funding comes from property owners within the MID boundaries, which is used to provide cleaning, safety, and hospitality services in six neighborhoods.

Martin Selig Real Estate currently owns, or has owned, several assets in the 300-square block district from Denny Way to Pioneer Square and the waterfront to Interstate 5.

Rising costs compound unpaid debt problem

The recent assessment for 2025-2026 was approximately $20.8 million, roughly a 5% increase from the year before. DSA noted the increase was caused by inflation and the new properties that were assessed.

“Despite repeated demands, Defendants have failed and refused to pay the above special assessments and the interest, delinquency charges, and processing fees due and owing,” the city’s complaint stated, according to The Puget Sound Business Journal.

As the MID runs on a semiannual billing schedule, the billing for July 2025 revealed that 13% of the accounts are delinquent, according to the city Department of Finance and Administrative Services.

A few of the notable Selig-owned properties that have faced financial troubles include the Federal Reserve Building, the building on Fourth and Blanchard, and the 40-story 1000 Second Avenue building, which have all been relinquished since the lawsuit was filed.

Properties that remain in Selig’s control, but still owe fees, include 3rd & Broad, 5th and Yesler, and 3101 Western. In 2023, the Yesler and Western properties were involved in a lawsuit by the city over unpaid street-use fees totaling $172,000.

“The case has been settled, and Mr. Selig, per terms of the agreement, paid outstanding SDOT permit fees through 2024. Those fees, plus costs, totaled $310,850.12,” City Attorney’s Office spokesman Tim Robinson stated in an email, according to The Puget Sound Business Journal.

Additional Selig-owned properties that have outstanding fees include the Modern luxury apartment tower in Belltown, office buildings at Fourth and Vine and Fourth and Battery, and a warehouse at 3031 Western Avenue, where the company planned to build a luxury apartment building.

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