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.

Morning Crank: Mariners Giveaway, Bike Lanes Downtown, and Public Land for Housing People

Image via Wikimedia Commons; photo by Cacophony

1. King County Council member Jeanne Kohl-Welles withdrew her support yesterday from legislation that would dedicate up to $190 million in proceeds from the county’s hotel/motel tax to Safeco Field, proposing an amendment that would instead direct almost all of that money to affordable housing instead. The Mariners are demanding the upgrades as a condition of signing a new 25-year lease on the stadium.

King County Executive Dow Constantine has insisted that the hotel/motel tax proceeds must be spent on purposes related to tourism, including improvements to the stadium, but the legislation that authorized the tax actually does not limit the percentage of proceeds that can be spent on affordable housing, nor does it require that any money be spent on tourism at all. Instead, the law says that at least 37.5 percent of the hotel/motel tax must be spent on arts and affordable housing, respectively, and that whatever money remains after that can be spent on tourism. Kohl-Welles’ proposal would increase the affordable housing expenditure to 52.5 percent, leaving about $25 million for stadium improvements.

One thing worth noting as this debate plays out: Mariners owner John Stanton, a billionaire telecom executive who has given hundreds of thousands of dollars to the Republican Party and conservative causes, maxed out to just one candidate in the 2017 primary and general elections. That candidate? Dow Constantine.

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2. The city council passed a resolution Monday urging the Seattle Department of Transportation (i.e. Mayor Jenny Durkan) to complete the downtown bike network, after interim SDOT director Goran Sparrman informed the council that the city planned to delay the construction of a long-promised protected bike lane on Fourth Avenue downtown for three years while construction projects downtown (including the demolition of the Alaskan Way Viaduct and the construction of a new Washington State convention center) reduce the number of lanes available to car commuters.

Mariners owner John Stanton, a billionaire telecom executive who has given hundreds of thousands of dollars to the Republican Party and conservative causes, maxed out to just one candidate in the 2017 primary and general elections. That candidate? Dow Constantine.

Council member Teresa Mosqueda, just home from a trip to Minneapolis where she met with members of the bike equity group Tamales y Bicycletas, added language to the legislation emphasizing the importance of creating safe bike routes for low-income people, communities of color, and women. The resolution now says that although the Center City bike network itself is located downtown, “connecting routes to surrounding neighborhoods, and between neighborhoods, particularly in historically neglected communities with higher needs of safety improvements for pedestrians and cyclists, must be a focus for the city in making connections with the Center City Bike Network.” The verbiage, along with language about the city’s historical disinvestment in low-income communities and communities of color, serves as another rebuke to unsupported claims that bike lanes “displace the underprivileged” and kill minority-owned businesses in neighborhoods like Wedgwood, in north Seattle.

But will the resolution matter? SDOT is already trying to dampen expectations that the downtown bike lane network will be built within 18 months, as the council resolution demands. And the agency is still figuring out the details of its planned  “reset” of the $290 million Move Seattle levy in response to higher-than-anticipated construction costs and lower-than-expected (or entirely absent) federal funds for Seattle projects. Late last month, council transportation committee chair Mike O’Brien told me that “there’s nothing we see right now [in the resolution] that’s a deal breaker,” but added that he hadn’t heard much from the Durkan Administration about whether they planned to move forward on the council’s recommendations, which include new bike lanes from 8th Avenue in Belltown down to 12th Avenue South in the International District. “My sense is they are still getting up to speed on a lot of things,” O’Brien said. “I think the bike capacity in Mayor Durkan’s brain has been spent on the Burke-Gilman trail [completion] and 35th” Ave NE, where anti-bike activists are fighting a bike lane and road restructure. “I don’t know that there’s a ton that has been done on this.”

3. The council also adopted legislation that I wrote about a couple of weeks ago, giving Seattle City Light the ability to sell its properties to nonprofit housing developers who agree to build housing affordable to people making less than 80 percent of Seattle’s median income. Currently, the city requires property owned by its electric utility to be sold at fair-market value, thanks to a 2003 ruling striking down a fee City Light imposed to install and maintain streetlights. However, a bill passed by the state legislature last year, House Bill 2382, gives state and local agencies the right to transfer land to affordable housing developers at little or no cost, giving the city new ammunition if it faces a legal challenge the first time the legislation is tested.

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