Seattle Neighborhoods: Downtown Seattle — Thumbnail History (historylink.org)Downtown Seattle is not just another neighborhood. After centuries of settlement by Indians, the first Europeans to call Seattle home established farms and a steam-powered sawmill in the area of Pioneer Square. As downtown grew, it spread north, becoming the financial and retail center of Washington’s largest city and of the region. Today, at the beginning of the twenty-first century, downtown Seattle has escaped the urban decay of many cities and remains a vibrant center, with many retail, financial, and cultural activities and with new urban residential areas developing in and around it.