By LEAH WEATHERSBY

Businesses throughout North Seattle are bracing for a recession, which economists say is being brought on by a combination of the Sept. 11 terrorist attacks on the East Coast and the nation's already slowing economy.

The Puget Sound region is expected to be among the worst hit, with The Boeing Co. already having announced plans to lay off 30,000 workers, many as soon as mid-December.

The impacts of the job cuts by the state's largest employer, as well as other companies - including Nordstrom, which is laying off 1,600 workers - is expected to reverberate throughout the local economy as consumer spending is likely to be down just weeks before the holiday shopping season is set to begin.

"(Layoffs) can't help but affect everybody" said Leon Johnson, owner of Cranium's Coffee and Collectibles in Lake City. "It's the rock in the middle of the lake - it ripples out."

But how far is it rippling and how fast? Interviews with North Seattle business owners revealed that some companies are feeling a pinch, but for most, optimism is still in the air. Not surprisingly, the events of the last few weeks have made an impact on the local travel industry.

Carolanne Watness, who owns a bed & breakfast inn called Chelsea Station just south of the Woodland Park Zoo, said after the Sept. 11 attacks she immediately lost about four days worth of reservations. However, she expressed hope that her business will eventually pick up again, particularly among travelers who might be seeking the comfort of a homelike atmosphere such as a bed & breakfast inn. "Staying with us is really like staying with us," Watness said.

Suzy Smith, owner of Lake City Travel & Cruises, a travel agency located along Lake City Way, just south of NE 125th, said several of her clients canceled their trips following the Sept. 11 attacks. On the other hand, her staff was kept busy because it received a lot of calls from stranded clients needing to make alternate travel arrangements. Smith said her business has picked up in recent weeks, but that overall bookings are still down about 15-20 percent from the same time last year.

"I'm in a position where I had a very good first quarter so it's going to absorb some of the loss," Smith said. "I'm going to bite the bullet, buckle down ... and just try to get through it." Simone Andrus, owner of Wide World Books & Maps in Wallingford said her shop, which sells travel books and maps, has had to respond to shifting customer demands since Sept. 11. Demand has gone up for road maps as more customers are opting to drive rather than fly. She said maps of Afghanistan have also been selling like hotcakes. Andrus even got a call from the Pentagon - looking for any map of the country they could get their hands on.

Sales of big ticket items such as cars have also declined for many businesses as well.

Dick Harris, owner of Alley Chevrolet in Lake City, said that his dealership's sales in September were half of what they normally are for this time of year. Even visits to the dealership's service department were down. Harris attributed the drop in business to a general tendency of many people to stay home after such a horrifying event as the Sept. 11 attacks. Since then, he said, the dealership has been experiencing an upswing, possibly because of the low interest rates and possibly because buyers want to enjoy life while they can.

"People say 'life is too short, I'm going to treat myself,'" Harris said.

However, Harris added that even before the terrorist attacks, business had been down from last year because of the softening economy. He said that this past spring - usually the busiest time for car buying - sales were down 10-15 percent from the previous year.

Some businesses have looked to boost sales by resorting to creative solutions.

In downtown Fremont, retailers have had to deal with not only the declining economy, but by disruption from several construction projects, including the recent move of the Red Door Ale House building and the repair work being done to the Oddfellows Building that houses the Empty Space Theatre, which was damaged by the Feb. 28 earthquake. The neighborhood has also been grappling with chronic traffic and parking congestion.

In response, several Fremont business owners have formed an informal group called "Fretail," which has been meeting to discuss ways to promote the neighborhood as a shopping destination.

"Like other neighborhood business communities, everybody is concerned about hints of recession," said Dwayne Edwards, a co-owner of a Fremont software company called Digital Alchemy and co-founder of the Fremont UNconventional Centre, who has been attending the Fretail meetings. He added that some Fremont merchants have said that their business is off as much as 50 percent from where it was at this time last year.

Another Fretail participant, Craig Nixon, who owns a garden shop called Dig-It, recently attached a horn to the famous Lenin statue located outside his store along with a sign urging passersby to pull the statue's finger. Nixon rigged the statue to make a funny noise.

Nixon said he's hoping to think of similar fun promotional ideas for other area of Fremont, especially near businesses that are hurting. Nixon said he and his wife, Jody Seibel, have done well in the few months that they have owned the store, but that he knows several of his neighbors' businesses are in danger.

"I can bring all the business to my store that I want, but if there are no other stores around me it won't do any good" Nixon said.

There are several government agencies that can provide assistance to businesses. For information on funding or for technical assistance call Jennifer Hayes at the Seattle Office of Economic Development at 684-8090. For loan programs, classes or help with business plans, call the Community Capital Development organization (a private non-profit) at 324-4330, or call the U.S. Small Business Administration at 553-7311. (