Morning Crank: The “Unique Problem” That Separates Us from Salt Lake City and Houston

1. A line of people and pets snaked along the eastern perimeter of CenturyLink Field yesterday morning as the United Way’s annual Community Resource Exchange, an annual event where volunteers and service providers offer resources, food, dental care, and other services to people experiencing homelessness. Upstairs, in the stadium’s event center, a decidedly more well-heeled crowd gathered for an event called the Changemakers Rally—a series of short speeches, actually, followed by a panel discussion with leaders from Amazon, Starbucks, and Zillow, along with All Home, the Chief Seattle Club, and United Way. The highlight of the odd event wasn’t the anodyne address by Mayor Jenny Durkan, who skirted substance in her speech and during the brief Q&A with remarks like, “We need to commit over time to make this change in people’s lives for every day of their lives” and “We know what works, we just need to do it and have the collective will to do it.” Nor was it an awkward onstage back-and-forth between United Way board chair Kathy Surace-Smith and Justin Butler, a formerly homeless Metropolitan Improvement District Ambassador who moved here from Phoenix and couldn’t be prodded to say much more about the Community Resource Exchange beyond, “Well, it got me a job.”

No, the highlight was when Starbucks VP John Kelly took the mic and used his time to blast the Seattle City Council for considering an employee hours tax to fund investments in homelessness at a cost of up to $75 million a year, a proposal he called an example of the way “our government keeps on targeting [businesses] as a  source of funds rather than innovators and problem solvers.” Starbucks has focused its homelessness spending on family homelessness, as has Ohio homelessness consultant Barb Poppe, whose famous/infamous “Poppe Report” is the blueprint for Seattle’s Pathways Home initiative. Kelly highlighted that report, which calls on the city to move funding away from service-rich transitional housing toward “rapid rehousing” with short-term vouchers to help people rent apartments on the private market. “We know the decisions, we’ve got the Poppe Report with all the solutions, the blueprint is there—we just need to act on reform,” Kelly said. “Barbara Poppe has worked with Salt Lake City and Houston and seen demonstrable progress.”

The “unique problem” that differentiates  Seattle from those two cities, Kelly continued, is that only Seattle has a large number of families living on the streets and in cars. The other difference, of course, is that Seattle apartments cost about twice as much as apartments in either of those cities, thanks in no small part to a housing shortage that is also unlike anything Houston or Salt Lake City is experiencing.

2. A curious addendum to the saga of former mayor Ed Murray, who resigned last year amid accusations that he had sexually abused several minors in the past: Last April, as the scandal was breaking, Murray filed a financial disclosure report showing that he owned just one property—his Seattle house on Capitol Hill, valued at $876,000. (I came across Murray’s financial documents while I was looking into an item related to current Mayor Jenny Durkan’s own investments). That was odd, because a previous financial disclosure report, from 2016, showed that he owned another house—a three-bedroom, two-bath vacation home in the coastal community of Seabrook, which Murray and his husband Michael Shiosaki bought in November 2015 for $470,000.

Murray amended the report to include his second home six weeks after filing the initial report without it. However, those six weeks—from April 14, when he filed the initial report, to May 31, when he corrected it—were critical ones. During April and May, while the press was all over the story, Murray repeatedly pleaded poverty—claiming, for example, that he needed a special dispensation from the Seattle Ethics and Elections Commission allowing him to raise money from supporters for his own legal defense because as “a lifelong public servant, [he] does not have the personal resources needed to fund his own legal defense.” Murray also told Q13 Fox that he had “no assets.” Referring to his house in Seattle, he said,  “Michael owns the house.” In fact, both Shiosaki and Murray, who are married, are listed as the owners of both houses.

The mis-filed report could have been a simple oversight, and the addition of the house didn’t change Murray’s total assets, which he listed in 2017 as $1.8 million. Murray and Shiosaki still own the Seabrook house, which can be rented for between $148 and $335, depending on the season. One other bit of historical trivia: In 2013, when he was still a state senator, Murray earmarked $437,000 in the state budget for a new bike and pedestrian connection between Pacific Beach and Seabrook—at the time a brand-new planned community—at the request of a longtime friend who owned a house there. Not long afterward, the friend maxed out to Murray’s first campaign. And about two years after that, Murray himself bought a vacation house in the town.

3. After the Seattle Times reported last week that, according to King County Metro, the downtown Seattle streetcar will cost 50 percent more to operate than the Seattle Department of Transportation previously claimed, Mayor Durkan requested an independent review of the $177 million megaproject, which is already under construction. On Tuesday, city budget director Ben Noble told the council’s transportation committee that the mayor’s office is concerned about “whether we have accurate information about the operating costs and… potentially the capital costs as well.” That prompted council member Lisa Herbold, a longtime opponent of the streetcar, to suggest “pressing pause” on the project until the city could get a handle on how much it will cost to operate and build (and how the city will pay for any overruns). Goran Sparrman, SDOT’s interim director, suggested that putting the project on ice, even temporarily, could put federal funds at risk and lead to higher costs in the future, since the cost of labor and materials tends to escalate while projects are idle.

Fans of the downtown streetcar, which will link the South Lake Union and First Hill streetcars, will conclude from today’s discussion that it makes sense to keep plowing ahead with the project; even if the thing is over budget, the costs will only get worse if we wait. Detractors, meanwhile, will see that argument as an example of the sunk-cost fallacy—the idea that because the city has already invested so much in the project, the only option is to keep building, when in fact, there’s something to be said for quitting while you’re ahead.

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