Morning Crank: Details Emerge About Megablock Sale

1. Yesterday, six months after the city put the largest remaining piece of publicly owned land in South Lake Union on the market, the city council got its first look at the bids for the property. The conjoined parcel, which some affordable housing advocates have argued the city should hold onto and develop as public housing, is worth upwards of $90 million on the open market.  Although the city budget office wasn’t willing to say much about the bids in open session (for fear, according to city budget office director Ben Noble, of weakening the city’s bargaining position), a few details did emerge during the public discussion.

First, budget staffers revealed that seven teams presented proposals to either purchase or lease and develop the property, and that the city determined that six were responsive. After a team made up of city staffers and one private citizen—former Downtown Seattle Association director  and deputy mayor Kate Joncas—reviewed the applications and interviewed the candidates, they decided to move all six forward to the “best and final offer” stage of the process rather than eliminating any of them right away. Noble said that most, but not all, of the proposals included the 175 units of affordable housing suggested in the request for proposals, and that some of the bidders proposed developing the land under a long-term ground lease, rather than buying it outright. Some of the bidders apparently proposed two different offers—one price with affordable housing, and another, higher price without—and staffers said that one goal of the negotiations will be reducing the difference between those two numbers. If the city decided to keep the property and develop it in cooperation with a nonprofit housing provider, budget office staffer Steven Shain said, the cost to the city would be about $100,000 a unit, or about $100 million for 1,000 units of affordable housing.

City council members questioned why Joncas was the only non-city employee on the committee reviewing the bids for the Megablock property. “I was unaware until very recently that it is even possible to have somebody not of the city family to participate in a process like this,” council member Lisa Herbold said. “It would have been really helpful, knowing now  that we could have external stakeholders participate… having somebody participate with expertise in nonprofit affordable housing production.” Shain said the executive reached out to other people and organizations, including Capitol Hill Housing, but they weren’t able to commit the amount of time the job required without any kind of compensation from the city.

Support

“As the issues facing our city become more critical and more complicated, we are as elected leaders… pursuing the expertise of subject matter experts within the community more and more often,” council member Lorena Gonzalez said, but there isn’t a clear policy about how and when to pay people who work for nonprofits, rather than for-profit consulting firms. “That’s an inherent inequity in how we engage subject matter experts in a variety of areas. We tend to not monetarily value nonprofits, but we will monetarily value people who are literally in the business of providing expert consultant opinions.”

Gonzalez also suggested that the council think about whether they’re overusing executive sessions and invoking confidentiality provisions when they don’t have to. “My frustration is that we just assume that everything is confidential, and we don’t afford ourselves the opportunity to take a scalpel approach to the issues related to confidentiality,” Gonzalez said. “So, yes, while the details of the transactions and the proposals mightbe subject to confidentiality, there are several details around the transactions… that could have been daylighted in a more transparent way that could, at a minimum, contribute to a higher level of public confidence in whatever deal that we’re going to be judged for approving or not approving.”

Then the council went into executive session.

2.  After the council approves Mayor Jenny Durkan’s appointment of two more Transportation Choices Coalition staffers to the city’s bike and transit boards next week, there will, by my count, be just one person on TCC’s entire full-time staff who Mayor Durkan has not appointed to a city board, commission, or advisory committee during her first year in office. This year, Durkan has appointed TCC staffers to serve on the advisory committee overseeing the selection of a new Seattle Department of Transportation director; the Bicycle Advisory Board; the Transit Advisory Board; and the Levy to Move Seattle Oversight Committee. And, of course, her deputy mayor is Shefali Ranganathan, who left her job as TCC director to join the Durkan administration last year.

Honestly, there are worse things than a takeover by the IlluminaTCC. As I wrote back in November, the group is a strong, effective voice for alternatives to driving, especially transit, in a city that too often takes a windshield perspective on transportation planning. (New director Alex Hudson, who ran the uber-YIMBY First Hill Improvement Association, was an especially inspired hire.) Still, it’s worth asking whether other voices—the voices of groups that did not support Durkan’s election campaign, as TCC did, for example—are being displaced. As advocates from advocacy groups like the Cascade Bicycle Club and Seattle Neighborhood Greenways worry that they’re being shut out of official city appointments, TCC’s presence inside the city’s power structure appears to only be growing.

3 thoughts on “Morning Crank: Details Emerge About Megablock Sale”

  1. I don’t think Councilmember Herbold thought the process needed to evaluate proposals of any kind out.To do a good job requires knowledge in the applicable area and reading and rereading before scoring each bid. Time, time, time!

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