Guest Editorial: Spend County Revenues on Housing, Not a $180 Million Stadium Subsidy

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Image via Wikimedia Commons

The following is a guest editorial about a proposal by King County Executive Dow Constantine to spend $180 million in hotel/motel tax revenues on maintenance and capital improvements to Safeco Field, on which the Seattle Mariners’ lease is about to expire. The Mariners, and Constantine, have argued that the county has an obligation to spend future hotel/motel tax revenues on the stadium; housing advocates have countered that a larger portion of the lodging tax should be spent on affordable, transit-oriented housing. The King County Council meets this morning to discuss, and possibly vote on, the proposal.

Later this morning, the King County Council could decide how to allocate the remaining 25 percent of the county lodging tax revenues. Council members face a stark choice: Use the dollars for affordable housing or offer a $180 million subsidy to a private corporation. The highest value of public and economic benefit the County can create with this revenue is to invest in affordable housing, community development, and good jobs.

Demand for affordable housing in our region is at an all-time high, which is why we should use lodging tax revenues to help address homelessness and promote affordability. To maximize economic benefit from the hotel/motel tax, the County should also create high quality jobs for our communities by utilizing community workforce agreements with housing developers or local housing authorities. These agreements help create apprentice opportunities and ensure dollars flow to the pockets of lower-income workers, which creates a greater economic benefit since low-income households spend a greater percentage of their income on goods and services than higher-income households do.

Multi-billion-dollar for-profit corporations asking for public subsidies must prove that these resources are better spent on their enterprises than other compelling public needs, like affordable housing. And they must commit to transparency and accountability with regard to how those resources are used. The Mariners are a successful team that many people love and support. Yet, for continued public investment, they must demonstrate exactly what they need public resources for and how it will support good jobs in the region. To date, the Mariners ownership have simply not met this benchmark.

Recent letters from Craig Kinzer (current) and Terrence Carroll (former), members of the Public Facilities District (the committee that has been in lease negotiations with the Mariners) reveal that the proposed lease is simply a bad deal that should be revisited.

The Mariners are a successful team that many people love and support. Yet, for continued public investment, they must demonstrate exactly what they need public resources for and how it will support good jobs in the region. To date, the Mariners ownership have simply not met this benchmark.

The Mariners’ owners even want to do away with the annual requirement that they publicize financial information about where the public dollars go, so we won’t know until after the fact whether the dollars were used appropriately. The new lease deal must include financial transparency so that the public can understand how investment in a stadium would maximize public benefit and support good jobs. Instead of a win-win deal for the public, the lease and subsidy appear to be a win-more for the Mariners ownership.

We recommend the following uses and requirements of the County’s lodging taxes.

1. The vast majority of the remaining 25 percent of future lodging tax revenue should be committed to affordable housing. Funding should also be considered for community-based economic development that creates even more jobs and stability for communities at risk of displacement. By investing in community development, we will create good jobs, apprenticeship opportunities, and net income for our communities as families find more money in their pockets for basic needs.

2. Any projects funded by lodging tax revenues must be covered by a community workforce agreement (CWA) that guarantees good jobs, worker retention, high-quality apprenticeship opportunities, and a priority to hire local residents most in need of those opportunities. Both the City of Seattle and King County have highly successful priority hire programs that show tremendous public value when done right.

3. Any use of lodging tax revenues must have the highest level of transparency and accountability. While nonprofit housing developers typically must account for every public dime that they spend, we do not apply the same scrutiny to private corporations that receive public resources. Any money that goes to the ball park should require that the Mariners ownership open their books to the public and show the number and quality of jobs that they are creating with public support.

As a result of our upside-down tax code, where low-income people pay up to seven times more of their income in taxes as the top one percent, state and local revenues for needed services and community development are scarce. We must take care on how our region allocates funds, and ensure that new investments maximize public and economic benefit. Like the other groups who are also interested in these funds, the Mariners must demonstrate clear need and a clear financial case for their request.

Many of the King County Councilmembers have not yet decided how to prioritize investments from the lodging tax. Now is the time to let them know that housing, good jobs and meeting community needs is the highest priority.

Nicole Vallestero Keenan-Lai is the Executive Director at Puget Sound Sage. She has more than a decade of experience in research, advocacy, civic engagement, racial justice organizing, social services, and community and business outreach.

David Rolf is the founding president of SEIU 775, which represents more than 45,000 long-term care workers in the Pacific Northwest. He serves as an International Vice President of the Service Employees International Union (SEIU).

Misha Werschkul is the executive director of the Washington State Budget & Policy Center, where she guides the organization’s strategic vision and ensures its position as a leading voice shaping the debate around budget priorities.

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