Tag: Sally Bagshaw

As Council Seeks Funding for Successful Arrest Diversion Program, Mayor Proposes “Doubling Down on Probation”

Mayor Jenny Durkan began rolling out her public-safety budget in mid-September.

Several council members expressed skepticism at Mayor Jenny Durkan’s plan to deal with so-called “prolific offenders” Monday, wondering aloud why the proposals were still so ill-defined and expressing concern that they contradicted an earlier work group’s recommendations to focus spending on things like prevention and restorative justice rather than traditional criminal-justice responses like probation.

As I reported last month, Durkan’s plan—which came out of a work group that was made up almost entirely of elected officials, judges, prosecutors, and government staffers—would create a number of new programs inside the criminal justice system, including expanded probation and a new “rapid-reentry connector” who would refer people leaving jail after short periods to shelter and services. The work group that came up with last year’s recommendations, in contrast, was led by the Office for Civil Rights and “centered the voices and leadership of those who have lived experience of incarceration.”

Council member Lorena Gonzalez, who chairs the council’s public safety committee, said she had “concerns about the mayor’s proposal to continue to double down on probation, particularly for this population. I continue to believe that [probation] is not the best use of our dollars, nor that it will actually address the needs of individuals who have many complex co-morbidities”—issues like addiction and mental illness. Council members Bruce Harrell and Sally Bagshaw defended Durkan’s plan, particularly the “enhanced probation” proposal, noting that several municipal court judges had endorsed the proposal. “I’m hearing from judges that it’s in alignment with restorative justice, not a very penalizing probation system,” Harrell said. Bagshaw invited Seattle Municipal Court Judge Damon Shadid to the microphone to defend the current probation system—he called Gonzalez’s description of probation “simply not accurate—prompting Kshama Sawant to complain that advocates for alternatives to probation weren’t given any time to speak.

Part of the problem is that it’s unclear what, exactly, the $532,000 Durkan has proposed spending on three new programs—expanded probation, the jail referral staffer, and a new case conferencing pilot that would bring law enforcement officials together to discuss “high-barrier” clients’ cases—will buy. All three programs are still in the planning phase, and have not been analyzed for race and social justice impacts or for effectiveness. For example, Gonzalez asked, what it saved more money and produced better outcomes to simply not jail people for very short periods instead of providing them “reentry” services when they get out?

“I have concerns about the mayor’s proposal to continue to double down on probation, particularly for this population”—Council public safety chair Lorena Gonzalez

As for the probation program, Gonzalez said, “We have no idea what this is other than the adjective that it will be ‘enhanced.’ I don’t know what that means. It has not been clearly defined. We have no performance metrics.”

All of the mayor’s proposals are pilot programs, which means they won’t cost much money (the biggest-ticket item in Durkan’s “high-barrier individuals” bucket, funding for a new enhanced shelter in the decommissioned west wing of the county jail, is uncontroversial) and are unlikely have a major impact if the council does decide to fund them. (The council could also place the proposals under a budget proviso—essentially, a funding hold—until the mayor provides more information about the programs.)

The discussion of the mayor’s proposal came directly before a separate, but related, conversation about funding for a program that approaches low-level crimes from a completely different perspective ]—Law Enforcement Assisted Diversion, a pre-arrest diversion program that provides case management and services to people caught committing misdemeanor crimes in certain parts of the city. Continue reading “As Council Seeks Funding for Successful Arrest Diversion Program, Mayor Proposes “Doubling Down on Probation””

Morning Crank: “We Have Zoned Our City Backwards”

“I’m not calling anyone a racist. I am calling out the reality that we are living in a city that has a history of …  housing laws designed to keep certain people out of certain areas of the city, and as a policy maker, it is my duty to undo this history.”

After nearly five years of public hearings, open houses, legal challenges, amendments, and debate, the city council adopted the “citywide” Mandatory Housing Affordability plan on Monday by a 9-0 vote. The legislation (which does not actually apply citywide) will allow developers to build more housing in parts of the city where density is already allowed, and will allow additional housing, ranging from a second house to small apartment buildings, on about 6 percent of the land that is currently zoned exclusively for detached single-family houses.

In exchange for greater density, developers are required to build or pay a fee to build housing affordable to people making 60 percent or less of the Seattle median income. The amount developers will pay to build will be higher in areas where the city has determined the risk of displacement is high and access to opportunities is low, and lower in areas with low displacement risk and high access to opportunity. The city hopes that MHA will result in 6,000 units of new low-income housing over the next 10 years. The plan has already been partially implemented—six neighborhoods, including downtown, South Lake Union, and the University District—were upzoned two years ago

The rest of the city’s single-family areas, which occupy about 75 percent of the city’s developable residential land, will be untouched by the changes.

Public comment on Monday was dominated, as usual, by homeowners who argued that the proposed changes will “destroy” neighborhoods, rob property owners of their views, and—a perennial favorite—”ghettoize” places like Rainier Beach by forcing low-income people of color to live there.

The specter of “ghettos” was both explicit—two white speakers mentioned “ghettos” or “ghettoization” in their comments—and implicit, in comments from several white homeowners who expressed concern that their (unnamed, absent) friends and family of color would be displaced from their current neighborhoods. “I want to provide affordable housing to my children and grandchildren, who are of all colors, but I want to protect her [Seattle’s] natural beauty,” one speaker said, after inveighing against the potential loss of views from North Capitol Hill. Another speaker (also white) invoked her “many… friends and family of color [who] have been displaced from the Central District and particularly from Columbia City… to the Rainier Beach area, and now it s up for upzoning.” Where, she wondered, would these anonymous friends and family be forced to move next?

Support The C Is for Crank
If you like the work I’m doing here, and would like to support this page financially, please support me by becoming a monthly donor on Patreon or PayPal.  For just $5, $10, or $20 a month (or whatever you can give), you can help keep this site going, and help me continue to dedicate the many hours it takes to bring you stories like this one every week. This site is funded entirely by contributions from readers, which pay for the time I put into reporting and writing for this blog and on social media, as well as reporting-related and office expenses.  If you don’t wish to become a monthly contributor, you can always make a one-time donation via PayPal, Venmo (Erica-Barnett-7) or by mailing your contribution to P.O. Box 14328, Seattle, WA 98104. Thank you for reading, and I’m truly grateful for your support.

After listening to more than an hour of such comments—including one white speaker who claimed that “upzoning is the new redlining”—the council’s women of color were eager to correct the record. Lorena González, whose own Mexican-American family would have been excluded from much of the city under both the formal racial covenants that ended in the 1940s and the unofficial redlining that replaced them, noted first that “this legislation is not even close to citywide—there are approximately 127 neighborhoods in the city, and this legislation only relates to 27 of them.” The remaining 100 neighborhoods, she said, are still “currently and strictly zoned exclusively single-family.”

She continued: “I’m not calling anyone a racist. I am, however, calling out the reality that we are living in a city that has a history of implementing and preserving housing laws designed to keep certain people out of certain areas of the city, and as a policy maker, it is my duty to undo this history and to support legislation to begin the process of dismantling… laws that are intended to exclude people who look like me from owning or living in a single-family home.”

Teresa Mosqueda added more historical context. “What we have done over the last few decades is we have zoned our city backwards,” she said, referring to the fact that as recently as the middle of the last century, multifamily housing was allowed on much of the land Seattle now preserves for exclusive single-family use. “I’m sad that we’re not actually having a conversation about citywide changes. That is the next conversation we need to have.”

“The only way to create universal access to housing is by building a housing-rich city.” – Council member Rob Johnson

Today’s vote served as a bit of a swan song for council member Rob Johnson, who is widely expected to step down after the end of April to start his new job as a transportation advisor to Seattle NHL. Johnson, who spent much of his single term shepherding the legislation, sounded a bit wistful as he closed out debate and called for a vote. After thanking city staffers, other council members, and his wife Katie, Johnson  noted the signs all over Seattle that oppose “build the wall” rhetoric. “Well, zoning is building a metaphorical wall around our city.” By adopting MHA, he said, “We’re starting the process of dismantling walls around our neighborhoods that have given exclusive groups sole access to the resource-rich communities around our city. … The only way to create universal access to housing is by building a housing-rich city.”

The battle over MHA is not over, of course. SCALE, the group that spent much of the last year and a half appealing the plan in front of the city’s hearing examiner, said in a statement Monday that they were “considering appealing the inadequately considered impacts of the MHA legislation to the [state] Growth Management Hearings Board.”

2. González and Mosqueda weren’t the only ones feeling salty before Monday’s big vote. Sally Bagshaw, who is also leaving the council after this year, took the opportunity to correct an op/ed by Queen Anne homeowner and anti-density activist Marty Kaplan that ran in this Sunday’s Seattle Times. Kaplan has spent much of the last several years appealing a city proposal that would allow homeowners to add up to two accessory dwelling units (one attached, one in the backyard) to their properties. The Times ran Kaplan’s factually challenged rant alongside a pro-MHA piece by Johnson, suggesting that an elected city council member and a neighborhood activist who spends his time fighting people’s right to build garage apartments are on roughly the same level.

“Here’s what makes me grumpy,” Bagshaw began. “There have been so many things that have been said on the con side of this that I just think have gotten in our way, and repeating untruths over and over against simply doesn’t make  something so.” Kaplan’s piece, Bagshaw continued, said that the city was “railroading” neighborhoods and would “eliminate all single-family zoning,” and “nothing could be further from the truth. We are going to be retaining 94 percent of the single-family zones,” Bagshaw said.

“Here’s what makes me grumpy. There have been so many things that have been said on the con side of this that I just think have gotten in our way, and repeating untruths over and over against simply doesn’t make  something so.” – Council member Sally Bagshaw

Bagshaw didn’t get around to demolishing all of the false and absurd claims in Kaplan’s editorial one by one, so I’ll add a couple more. Kaplan claims in his piece that allowing homeowners to build backyard or mother-in-law apartments on their own property will “eliminate single-family housing regulations citywide, erasing 150 years of our history.” Single-family zoning didn’t even exist 100 years ago, much less in 1869, 15 years after the Denny Party landed at Alki. Moreover, allowing people to retrofit their basements to produce rental income or add an apartment for an aging relative does not constitute a “threat to single-family neighborhoods”; rather, it’s a way for homeowners to stay in the neighborhoods where they live, and provide new people with access to those neighborhoods—a rare commodity in a city where the typical single-family house costs more than three-quarters of a million dollars. Kaplan even  suggested that “lame-duck politicians, who know they can’t get reelected” (four of the nine council members who voted for MHA are not running again) should not be “allowed” to vote on zoning policy, as if only universally popular politicians who plan to keep their seats forever should be allowed to vote in a democracy.

Kaplan isn’t done with his own fight against density. In an email to supporters last week, he vowed to continue appealing the environmental impact statement on the accessory dwelling unit proposal. Unlike some of Monday’s public commenters, Kaplan didn’t couch his opposition to density in concern for low-income homeowners or renters at risk for displacement. Instead, he was straightforward (not for the first time) about whose interests he cared about (emphasis mine): “Our ultimate goal: to negotiate a fair compromise that better meets the needs of all of Seattle’s homeowners,” Kaplan wrote. “Representing every Seattle neighborhood, our team of volunteers, professional consultants, and attorneys continue to advance our appeal to prove that the Environmental Impact Statement (EIS) is deficient and inadequate in studying and transparently revealing the true impacts to every Seattle property owner.

3. Right at the beginning of yesterday’s meeting, council members voted to move the nomination of interim Human Services Department director Jason Johnson as permanent director out of Kshama Sawant’s human services committee and into the select committee on homelessness and housing, which is chaired by Bagshaw and includes the entire city council. Sawant has opposed Johnson’s nomination, arguing that Mayor Jenny Durkan did not institute a “transparent and inclusive process” for choosing an HSD director, and has held multiple hearings to give Johnson’s opponents opportunities to denounce him publicly. On Monday, she cited the results of a survey of HSD employees that revealed widespread dissatisfaction with management, particularly among workers in the Homeless Strategy and Investments division. Sawant said the council was “stabbing [communities] in the back” with the “shameful” decision to move the appointment out of her committee. Bagshaw’s proposal passed 7-2, with Mike O’Brien joining Sawant in opposition to the move.

Takeaways From Seattle’s Upzoning Endgame

After another epic committee meeting—lengthened, this time, not by public comment but by a barrage of amendments intended to chip away at modest density increases on the edges of urban villages—the city council moved one big step closer yesterday to finalizing the remaining citywide portion of the Mandatory Housing Affordability plan, which has been in the works for the past four years. (MHA has already been implemented in several neighborhoods, including downtown, South Lake Union, and parts of the University District).

City of Seattle

The plan, on the whole, is modest. It allows developers to build taller, denser buildings inside multifamily and commercial areas and urban villages, and expands some urban villages (areas where, under the neighborhood plans first adopted in the 1990s, density is intensely concentrated as a way of “protecting” single-family areas) to include about 6 percent of the land currently zoned exclusively for single-family use. One reason the plan is modest is that the upzones are small, generally increasing density by one zoning step (from Neighborhood Commercial-65, for example, to NC-75, a height increase of 10 feet) in exchange for various affordability contributions. The second reason is that by continuing to concentrate density along arterial slivers instead of legalizing condos, townhouses, duplexes, and small apartment buildings in the two-thirds of Seattle’s residential area that’s preserved exclusively for detached single-family houses, the changes can’t be anything but modest: 6 percent of 65 percent is still just a sliver.

Most of the amendments the council passed yesterday—generally with opposition from the two at-large council members, Lorena Gonzalez and Teresa Mosqueda, and District 5 (North Seattle) member Debora Juarez—were aimed at decreasing the size of even that tiny concession.

For example: All of the amendments proposed by District 6 representative Mike O’Brien in the Crown Hill neighborhood, as well as his proposal to create a new, entirely speculative protection for a strip of houses in Fremont’s tech center that some people feel might have historic potential, were downzones from the MHA proposal. O’Brien, who was unable to attend yesterday’s meeting, has said that the proposals to shrink MHA in Crown Hill and Fremont came at the behest of “the community,” and that they were all offset by increased density along 15th Ave. NW, making them a win-win for density proponents and the Crown Hill community. (Lisa Herbold, in District 1, made a similar argument for her own proposal to downzone parts of the Morgan Junction neighborhood from the MHA proposal, saying that “I feel really strongly that the work, not just that I’ve done with the community, but that community leaders have done with other folks that have engaged with this effort, should be honored.”)

O’Brien’s Crown Hill downzones all passed, along with corresponding upzones that will further concentrate density (to put a human point on it, apartment buildings occupied by renters) on the noisy, dirty quasi-highway that is 15th Ave. NW, where it intersects with NW 85th St.:

The intersection where “the Crown Hill community” says they will allow renters to live.

Council member Teresa Mosqueda—who told me before the vote that the revelation that 56 affordable units would be lost if all the downzones passed increased her resolve to vote against all of them—pointed out the environmental justice implications of banning renters in the heart of a neighborhood and restricting them to large buildings on busy arterials: “When we look at neighborhood changes that would squish the zoning changes to an area along 15th, which we know to be a high traffic area with noise and pollution… it doesn’t feel like an equitable way to best serve our community. … I think it’s important that we take the opportunity to create not just access to housing along 15th, but really talk about how we equitably spread housing throughout the neighborhood.”

District 5 council member Debora Juarez added, “Of course [residents of a neighborhood] can organize, and of course they’re going to find a way to opt out or reduce their responsibility or their role or how they would like to see their neighborhoods grow. I know what happens when you do that, because then the burden shifts to those neighborhoods that we are trying to protect particularly from displacement.” Although District 3 council member Kshama Sawant countered that the people in Crown Hill are largely “working-class homeowners” at high risk for displacement, citywide council member Lorena Gonzalez quickly put that notion to rest, pointing out that the city’s own analysis found that Crown Hill is a neighborhood with high access to opportunity and a low displacement risk.

O’Brien’s amendments passed 5-3.

Support The C Is for Crank
If you like the work I’m doing here, and would like to support this page financially, please support me by becoming a monthly donor on Patreon or PayPal.

For just $5, $10, or $20 a month (or whatever you can give), you can help keep this site going, and help me continue to dedicate the many hours it takes to bring you stories like this one every week. This site is funded entirely by contributions from readers, which pay for the time I put into reporting and writing for this blog and on social media, as well as reporting-related and office expenses.

If you don’t wish to become a monthly contributor, you can always make a one-time donation via PayPal, Venmo (Erica-Barnett-7) or by mailing your contribution to P.O. Box 14328, Seattle, WA 98104. Thank you for reading, and I’m truly grateful for your support.

Other amendments that came up yesterday:

Although several of District 4 council member Rob Johnson’s amendments to reduce density in the Roosevelt and Ravenna-Cowen neighborhoods passed, a proposal to preserve a single-family designation for a single block of houses in Roosevelt failed, sparking some pointed comments from both Mosqueda and Gonzalez about the need to build housing near transit corridors and future light rail stations like the one four blocks from the block Johnson proposed keeping single-family. “We have to, as a city, either be committed to the urban village growth model or not, and to me this is an example where we need to be committed to that urban village growth strategy,” Gonzalez said.

• A proposal by O’Brien to reduce the proposed zoning along N 36th Street near the Fremont Troll statue by two full stops (from Low-Rise 3, which allows apartments, to Low-Rise 1, which allows townhouses), lost on a unanimous vote. Council members pointed out that not only is the street O’Brien wanted to downzone within spitting distance of high-tech companies like Google and Tableau, making it a prime location for new housing, the houses on it do not have any historic designation, which was one of O’Brien’s primary justifications for the amendment. “This is quite literally a dense area,” an exasperated Mosqueda said.

• A suite of Herbold amendments to reduces some of the proposed upzones near the West Seattle Junction, and the site of the future Link Light Rail station, from low-rise (1 through 3, depending on the lot) to residential small lot all passed. Herbold justified the downzones from the MHA proposal by noting that Sound Transit hasn’t finalized its alignment through West Seattle yet, and expressing her “commitment” to come back and adopt some kind of upzone in the area once they do. As she has before, Herbold suggested that not upzoning would be a cost-saving measure, because Sound Transit will have to purchase some land in the area for station construction, and land zoned for higher density typically costs more. When Juarez, whose district includes two future light rail stations (at Northgate and N. 130th St.), noted that her district clamored for more density around the stations, not less, Herbold said that Sound Transit currently has “three different options, and they’re spread across about 10 different blocks.” Mosqueda chimed in, saying that her “argument would be that it’s precisely because we have a new [light rail] line… that we should be doing everything we can now to raise the bar, so that when a decision is made [any new density] would be in addition to that baseline.

The committee declined to reduce a proposed height increase in southwest Delridge, in an area that, Herbold said, “provides a very wonderful view of Mount Rainier… in a low-income neighborhood in an area that doesn’t see a lot of city investment.” Both Gonzalez and Mosqueda pointed out that the downzone from MHA that Herbold was requesting wouldn’t actually reduce heights at all—the only difference would be how much low-rise housing property owners could build on private property—and District 7 council member Sally Bagshaw said she had been swayed by Mosqueda’s argument that the point of MHA is “build back in the opportunity for people to live in areas that they were excluded form living in.” However, Bagshaw added, she had already committed to supporting the amendment, which ultimately failed on a 4-4 vote.

• Two other Herbold amendments—one sweeping, the other potentially precedent-setting—are worth noting. The first, which supporters referred to as “the claw-back provision,” would nullify all the MHA upzones if a court overturns MHA’s affordability requirements at any point in the future. Mosqueda argued forcefully against the provision, saying, “I am not interested in sending a message that we would have some sort of moratorium [on development]. I think that could have adverse impacts on our ability to build affordable housing.” Johnson, who said that he “philosophically agreed” with Mosqueda, argued nonetheless that the amendment was “purely intent language”; it would only go into effect if a court overturned MHA’s affordability requirements in the future. That amendment passed.

The second, an amendment that triggers a new neighborhood planning process whenever “more than 25 percent of the [Morgan Junction] urban village could be affected by proposed zoning changes,” impacts a small area but could set a precedent for throwing MHA zoning changes (or other future zoning changes) back to community groups whenever they start to appreciably change the way an area looks and feels (which is, some might argue, the entire point of zoning changes). “I’m not hearing a rational basis for the establishment of a 25 percent benchmark,” Gonzalez said. “I’m worried about the establishment of a benchmark … based on a feeling or a sense that that that seems to be the right place to engage in the conversation. I’m not sure that’s wise policy. I’m not really sure how we even quantify what 25 percent” means.

That amendment passed 6-2, with Juarez and Mosqueda voting against.

The full MHA package passed the committee unanimously, with O’Brien absent. It now heads to the full council for a vote on March 18.

After Acrimony and Battles, Council Passes Mayor’s Budget Mostly Intact

L-R: David Helde, Downtown Emergency Service Center; Teresa Mosqueda and Lorena Gonzalez, Seattle City Council

After a surprising amount of acrimony for a document that contained so little fiscal wiggle room, the city council adopted a 2019-2020 budget today that increases the size of the Human Services Department’s Navigation Team, grants modest wages to front-line human service workers, spends tens of millions of dollars on retroactive back pay for police who have been working without a contract since 2015, and funds projects in every council district.

The debate over this year’s budget—during much of which I was out of town—centered largely on a few million dollars in human services funding, including, in the last few days, funding for the Navigation Team, which removes homeless encampments and offers services to people displaced by their activities. After council member Teresa Mosqueda proposed using some of the funds Durkan earmarked for Navigation Team expansion to broaden a 2 percent “inflationary” pay increase for city-contracted human services providers to include all such workers (rather than only general fund-supported workers, as Durkan initially proposed), Durkan denounced the move.

Describing the reduced expansion as a “cut” that would harm neighborhoods, Durkan’s office claimed that the new positions that she had proposed in her budget had already been filled and that reducing the amount of new funds would “cut” those critically needed jobs—a statement that local conservative media took as a cue to write largely inaccurate pieces claiming, for example, that Mosqueda was “slow[ing] tent cleanups with huge staff cut to Nav Team.” (Durkan also reportedly contacted council members to let them know that if they voted against the Navigation Team expansion, it would be on them to explain to their constituents why they had allowed crime to increase in their districts; all seven district council positions are on the ballot next year. UPDATE: Durkan’s office categorically denied that any such calls took place.) However, this turned out not to be the case; as a central staffer told the council in a followup memo, the positions have only been filled on a temporary or emergency basis. “These are all short term actions that are funded with the $500k [in one-time funding] from the County and would be discontinued” once the budget passes, the central staffer wrote.

No matter—despite all the drama, the council figured out a way to fund the full Navigation Team expansion and add one mental health counselor to the team while also giving service providers their 2 percent increase (which is actually below the local inflation rate). The money, a little less than $500,000 a year, came from eliminating the a business and occupation tax exemption for life sciences companies, which Mosqueda said has been dormant since 2017.

In a press conference between the morning’s budget meeting and the final adoption of the budget at 2pm, four council members, plus 43rd District state representative and former Downtown Emergency Service Center director Nicole Macri, joined several front-line human service workers and representatives from housing and human-service nonprofits at DESC’s offices in the basement of the Morrison Hotel homeless shelter.

David Helde, an assistant housing case manager at DESC,  said that since he started at the agency three years ago, every single person who worked in his position when he started had left the agency. Jobs at DESC start at just over $16 an hour, or slightly more than Seattle’s $15 minimum wage. “The rewards do not outweigh the benefits,” Helde said. Recalling a client with a traumatic brain injury who had short-term memory impairment but still remembered him when she returned to the shelter after a year away, Helde continued, “that is why the staff turnover is unacceptable—because it affects the quality of life for the most vulnerable people in this city.”

Council member Mike O’Brien, who has been raising the issue of human service worker pay for several years, said the city needed to figure out a way to “normalize” cost-of-living increases for employees at nonprofit human service agencies, in addition to city employees (and cops.) However, asked about how the city would ensure that (as Mosqueda put it) “we’re not back here every year,” O’Brien acknowledged that “the level of specificity is not extensive” about how to ensure future COLAs. “This is about expectation-setting,” O’Brien said. “In a budget where we have finite resources and we’re making tradeoffs, we have to figure out how we identify a three-, five-, ten-year [plan] to make changes” so that human-service workers can have not just sub-inflationary pay hikes, but living wages, in the future.

Although Durkan did (mostly) get what she wanted on the Navigation Team, the group will be required to submit quarterly reports showing progress on steps the city auditor outlined a year ago before the council will release funding for the coming quarter—a significant change that amplifies the council’s power over the team.

Other notable changes the council made to Durkan’s budget included:

• Additional funding for food banks, which will come from excess revenues from the city’s sweetened beverage tax. Council member O’Brien wanted to use some of the excess money from the tax—which Durkan had proposed using to replace general fund revenues that were paying for healthy-food programs, rather than increasing funding for those programs—to fund outreach programs, as a community advisory board had recommended. The budget puts a hold on the outreach spending, a total of about $270,000, but keeps it alive for future years; today, Juarez objected to this provision, arguing that  spending $270,000 promoting healthy food when the soda industry spent $22 million to pass the anti-soda-tax Initiative 1634 was tantamount to “wast[ing]” the money. “Why are we attempting to counter corporations prepared to spend millions of dollars on advertisements with a $250,000 campaign?” she asked.

• A total of $1.4 million for a supervised drug consumption site, which council member Rob Johnson—who sponsored the additional funding—said should be enough to allow the city to actually open a “fixed-mobile” site this year. Durkan’s initial budget simply held over $1.3 million in funding for a site that was not spent the previous year, with the expectation that no site would be opened this year.

Support

• About $100,000 for a new attorney to help low-income clients facing eviction. Council member Kshama Sawant had sought $600,000 for six more attorneys, but the rest of the council voted that down.

• An expansion of the city’s vacant building inspection program, which keeps tabs on vacant buildings that are slated for redevelopment to ensure that they aren’t taken over by squatters or allowed to fall into disrepair. The proposal, by council member Lisa Herbold (who proposed the original legislation creating the program last year) would ramp up monitoring and inspections of vacant buildings that have failed previous inspections, and would not take effect until next June. Council member Johnson continued to oppose Herbold’s proposal, on the grounds that it represented a sweeping and burdensome policy change that was inappropriate for the budget process; but council president Bruce Harrell reiterated his support for the plan, noting that the council would have time to hammer out the details next year before it took effect. “We’ll have, I think, ample time to work with the department [of Construction and Inspections, which sent a letter to council members last week raising concerns about the bill) to get their feedback,” Harrell said, and “if there has to be some tweaks there will be time to make tweaks.”

City Budget Office director Ben Noble sent a memo to council members today opposing the budget item, which Noble said would force the city’s Department of Construction and Inspections to expand the program too much, too fast. “As proposed, the enhanced program would likely be over 25 times the size of the current program,” Noble wrote, comparing the number of inspections last year—179—to a possible 5,000 inspections that would be required under the new program.  Noble said Herbold’s proposal did not reflect all the costs associated with increasing vacant building inspections so dramatically.

The budget put off the issue of long-term funding for additional affordable housing, which lost a major potential source of revenue when the council and mayor overturned the employee hours tax on businesses with more than $20 million in gross revenues earlier this year. Council member Sally Bagshaw has said that her priority in her final year on the council (she is not expected to run again next year) will be creating aregional funding plan to pay for thousands of units of new housing every year. Such a proposal might be modeled, she suggested recently, after a tax on very large businesses that was just approved by voters in San Francisco.

Budget dissident Kshama Sawant—who had earlier proposed numerous dead-on-arrival proposals to fund about $50 million in housing bonds by making cuts to various parts of the budget—delivered a 13-minute speech denouncing her colleagues for passing an “austerity budget” before voting against the whole thing. The room was noticeably subdued as Sawant quoted MLK and demonized Jeff Bezos—the red-shirted members of “the Movement,” whose efforts she cited repeatedly during her oration, were mostly absent, and instead of the usual applause, shouts, and cheers, Sawant spoke to a silent chamber.

Morning Crank: Rethinking the Vaunted Neighborhood Plans of the ’90s

In a move that could reveal hard truths about the city’s vaunted 1990s-era neighborhood planning process, city council member Teresa Mosqueda wants the city to do a full race and social justice analysis of the so-called urban village strategy, which concentrates all new development in narrow bands near arterial streets and preserves two-thirds of the city exclusively for detached single-family houses. The urban village strategy was crafted more than 20 years ago by neighborhood groups that were dominated, then as now, by white homeowners who wanted to ensure that the “character” of their neighborhoods would remain unchanged. The monoculture of exclusive single-family zoning, and the “character” of Seattle’s suburban-style neighborhoods, is a legacy of redlining—the process by which people of color and renters were systematically excluded from many parts of Seattle.

Introducing her proposal at Thursday’s council budget hearing, Mosqueda noted that at the time the urban village strategy was adopted, in 1994, there was no Race and Social Justice Initiative. That came in 2004, and “it wasn’t until 10 years after that that the race and social justice strategy was expanded to include policies that impact the urban environment,” Mosqueda said. “One of our questions is whether or not we are investing in urban villages equitably throughout Seattle. … I’m interested in whether or not we are crafting policies that are allowing more people to live here.”

The city recently completed a race and social equity analysis of a proposal that would make it easier for homeowners to build second and third units on their property. That analysis found, not surprisingly, that allowing more backyard cottages and mother-in-law apartments will disproportionately benefit white Seattle residents, because most homeowners in Seattle are white. (See chart, below). However, the analysis (like the environmental impact statement the city recently completed on the proposal) also found that allowing more backyard and basement apartments wouldn’t contribute to displacement; and it suggested several steps the city could take to make it easier for homeowners of color to build accessory units, such as pre-approved building plans and assistance with permits and financing. A race and social justice analysis of the city’s urban village strategy would likely reach similar conclusions—restricting development to the areas directly adjacent to major streets helps drive up housing prices and lock lower-income people and people of color out of many neighborhoods—and point to more radical solutions. Neighborhood activists, in other words, are likely to oppose it. Channeling them Thursday, council member Sally Bagshaw raised objections to Mosqueda’s proposal, which she said might be “duplicative” with work the city has already done. (It isn’t.) “Good heavens, this feels like déjà vu to me,” Bagshaw said. Council member Rob Johnson, who supports Mosqueda’s idea in principle, said, “I think that the issues that council member Mosqueda brings up are very appropriate for us to consider,” but suggested that the council might fund it later in the year.

Neighborhood activists, ironically, actually raised the need for race and social justice analysis in their ongoing attempt to prevent the city from implementing its Mandatory Housing Affordability strategy arguing (disingenuously) that the city didn’t do a race and social justice analysis of the proposal to allow slightly denser development on 6 percent of the city’s single-family land. (Developers building under the new rules would be required to build affordable housing on site or pay into an affordable housing fund. The new rules have gone into effect in denser parts of the city, including downtown). They’re still fighting that one, a year after the council passed the legislation.

It’s hard to quantify how much funding for affordable housing the city has lost because single-family activists have locked MHA up with a series of seemingly endless appeals. Hard, but not impossible. About a week ago, Johnson asked the city’s Office of Planning and Community Development to do an analysis of how much money the city has forfeited from developments that would have happened under the new rules if they had gone into effect a year ago. “I’ve asked them to run the numbers about projects that might have vested under MHA, had we adopted it when the bill was first sent down to us,” Johnson told me yesterday. “As you can imagine, vesting times really vary, so  it’s difficult analysis for us to do.” However, Johnson hopes that by looking at the development cycle that just ended, the city can get a sense of how much affordable housing Seattle has foregone while activists have filed appeal after appeal.

A race and social justice analysis of the city’s urban village strategy would likely reach similar conclusions—restricting development to the areas directly adjacent to major streets helps drive up housing prices and lock lower-income people and people of color out of many neighborhoods—and point to more radical solutions.

Speaking of appeals, the Queen Anne Community Council filed another one against the accessory dwelling unit proposal yesterday, arguing that the proposal—which would add about 2600 basement and backyard apartments, citywide, over what will likely be built anyway—”ignores, disrespects, and eliminates the citywide Neighborhood Plans.” The appeal, filed by Queen Anne homeowner Marty Kaplan and his attorney, Jeff Eustis, reiterates Kaplan’s claim that the plan will upzone the entire city, effectively turning single-family neighborhoods into wall-to-wall apartment blocks. The complaint concludes, spaghetti-at-the-wall style, by listing a litany of supposed ills that will befall neighborhoods if the city allows a few thousand more backyard and basement units in a city of 700,000: the “displacement and destruction of older, more modest and
affordable housing, the displacement of populations, the loss of historic buildings, the change in neighborhood character, the unstudied stresses on existing utilities and infrastructure, the amount of available on-street parking. and the ability of
residents and emergency vehicles to circulate through neighborhood streets, and other population pressures among many more.”

Johnson notes one potential bright side to all this delay. If the appeals of MHA and the accessory dwelling legislation drag on indefinitely,  he says, the city’s planning department will have more free time to do the kind of analysis of single-family zoning that Mosqueda is requesting.

Support

Showbox Property Owners Respond to City, Seek Depositions from Council Members Bagshaw, Sawant

A lot has happened since I wrote about the city’s response to a lawsuit by the owners of the Showbox last month. (The lawsuit, in very brief, alleges that the city council violated land use processes in spot-downzoning the Showbox property when they expanded the Pike Place Market Historical District to include the property on a temporary basis, preventing a 44-story development, and that the historic designation represents a taking of about $40 million—the amount for which the owner, Roger Forbes, planned to sell the land to the Vancouver developer Onni.)

Back in September, the city asked a King County Superior Court judge to dismiss Forbes’s land use claims claims (technically,  an LLC created by Forbes that owns the property, but we’ll stick with Forbes for clarity’s sake) on the grounds that Onni hadn’t formally sought any permits from the city, that inclusion in the historic district didn’t constitute a land use decision restricting how Forbes could use his property,  and that in fact nothing in the “Save the Showbox” legislation said that the Showbox must be saved.

The property owners—sounding spitting mad—filed a brief last week objecting to the city’s motion to dismiss the land use claims in the lawsuit, arguing that the decision to add the Showbox property, and only that property, to the historic district—effectively reducing its development potential from 44 stories to two—constituted a “reverse spot zone” and therefore was a “classic taking.” In their defense, they cite a number of cases that reducing the height of what can be built on one piece of land is considered a zoning decision, regardless of whether a permit has been filed. (The council made it much less likely that Onni would file a permit when they started talking about killing the development immediately after the developer started a pre-application process with the city, and passed fast-track “emergency” legislation barely one week later to ensure that Onni couldn’t go forward with its plans.)

Violating almost all of its own rules for a property use decision, the City enacted an “emergency” ordinance – not to abate a public nuisance – but rather because it wanted a private music venue to be an asset of the City. To try and accomplish that, it had to circumvent and carve this parcel – and only this parcel – out of its own prior and lawful zoning actions that previously upzoned the property and surrounding properties twice for high-rise development. The most recent upzone occurred just last year when the property (and other similarly situated properties) were upzoned by the City to allow additional floors if property owners provided certain financial support to the City’s efforts to increase affordable housing. The City’s reverse spot zoning of this property, stripping only this property of the same development potential similarly situated parcels enjoy, was not an exercise of “police power” to protect the public. It was instead an eminent domain powerplay to appease a vocal “Save the Showbox” group at the expense of a single property’s development and use rights.

Forbes’ attorneys also lays out the case that the city violated the state appearance of fairness doctrine, which requires officials like council members to keep an open mind on so-called quasi-judicial land use decisions (like zoning changes for a specific property) until after all the evidence has been presented and to make their deliberations in public, not behind closed doors. If the court finds that they did, it will mean that all the public hearings and rallies and open discussions about the need to “Save the Showbox” as a music venue in  perpetuity will have happened in violation of the law.

The response to the city makes one novel point: The Pike Place Market Historical District was not only created to protect small farmers and craftspeople from commercial development in the 1970s, it was formed by the city under the power of eminent domain—and, to this day, almost every single property in the district is publicly owned by the Pike Place Market Public Development Authority. That PDA has the right to regulate virtually every aspect of all businesses in the district, down to which tenants are allowed in each building, the size and materials on their signage, and what their storefronts look like on the inside. The Showbox building across the street, in contrast, is privately owned, making its inclusion in the historic district, the plaintiffs argue, even more of a taking than if the city had simply said Forbes couldn’t sell to a developer for an apartment tower.

This week, Forbes’ attorneys also filed a request to depose five city officials, including city council members Sally Bagshaw and Kshama Sawant, to get “information about the decision to single out this property, and only this property, for inclusion in the Pike Place Market Historical District, the process that the City employed in drafting, introducing and passing the ordinance, and the City’s real intentions in passing the ordinance (to maintain the property as a music venue in perpetuity).

“This information,” the request continues, “is relevant to Plaintiff’s contentions that the ordinance is invalid as an illegal spot zone, is otherwise procedurally invalid, was improperly passed because the Council violated the Appearance of Fairness statute, and violates Plaintiff’s First Amendment rights by forcing Plaintiff to maintain the property as a music venue.”

The hearing on that motion will be held next Friday, October 19. The trial is currently scheduled for February.

Note to readers: The reporting I do isn’t free! For example, court records cost 25 cents a page—a charge that can really add up when a case involves hundreds of pages. The time and effort it takes to bring you stories like this one, not to mention all my in-depth, on-the-ground reporting on the Showbox and other city issues, is made possible only by support from people who read this site. So if you enjoy my work and want to see it continue, please continue becoming a sustaining or one-time donor. Thanks for reading, and for your support!

Head Tax Heads for Repeal. What Happened, and What Happens Now?

The city council will hold a special meeting at noon tomorrow—just two days before the deadline for head tax opponents to turn in 17,000 signatures for a citywide referendum to overturn a tax on big businesses to help address Seattle’s growing homelessness crisis—to preemptively repeal the tax. The decision came just weeks after a bruising battle that resulted in the unanimous passage of a “compromise” head tax plan—$275, instead of the original $500—that was supported by all nine council members and signed by Mayor Jenny Durkan. Much like that proposal, today’s surprise repeal announcement emerged after a round of secret weekend negotiations, in which council members who supported the tax just weeks ago concluded that it was time to concede the fight. Polling on the referendum to repeal the tax reportedly spurred council members to reverse their support.

Earlier this afternoon, seven council members signed off on a statement from Mayor Jenny Durkan’s office supporting the repeal measure; only Teresa Mosqueda and Kshama Sawant, who denounced the “backroom legislation” during Monday’s full council meeting, did not signal their support for repealing the tax. The statement from the other seven council members said, in part:

“In recent months, we worked with a range of businesses, community groups, advocates, and working families to enact a bill that struck the right balance between meaningful progress on our affordability and homelessness crisis while protecting good, family-wage jobs. Over the last few weeks, these conversations and much public dialogue has continued.  It is clear that the ordinance will lead to a prolonged, expensive political fight over the next five months that will do nothing to tackle our urgent housing and homelessness crisis. These challenges can only be addressed together as a city, and as importantly, as a state and a region. 

“We heard you. This week, the City Council is moving forward with the consideration of legislation to repeal the current tax on large businesses to address the homelessness crisis.”

The $275-per-employee annual tax, which would have applied to the 585 highest-grossing businesses in Seattle,  would have funded $47 million a year in services, shelter, and housing for Seattle’s homeless population. Without the tax, hundreds of new apartments will not be built, hundreds of new shelter beds will not open up at night, and thousands of people who would have received rental assistance, case management, or mental health care through the levy proceeds will continue to go without those services.

Opposition to the tax came not just from the usual suspects in the business community—Amazon, which threatened to pull employees from the city over an earlier version of the tax, pledged tens of thousands of dollars to the repeal effort, as did Starbucks, Kroger, and representatives of the hotel and grocery industries—but from groups with names like Speak Out Seattle and Safe Seattle, whose members gathered signatures on their own time to repeal a tax on giant corporations. The tax, which was the product of five months of meetings by a 17-member task force, was chosen specifically because it would not directly impact ordinary citizens (unlike a property tax or sales tax), but enough ordinary citizens opposed it to convince at least some council members that their voices represented the majority of Seattle.

“I think it reflects majority sentiment,” council member Sally Bagshaw says. “I do, and I’m sad. … Everywhere I went, clearly businesses were unhappy, but half of labor was unhappy.  Neighborhoods and communities were saying, ‘We don’t see tents being moved off the street. We still see needles. We still see garbage. We’re not happy with this.'” Bagshaw did not mention polling on the head tax, nor did any of her colleagues.

Council member Rob Johnson, who was not directly involved in the weekend negotiations, says his primary concern in supporting a repeal of the head tax is the Families, Education, Preschool, and Promise (FEPP) levy, which funds pre-K through college education and is on the ballot in November. A referendum to repeal the head tax, he worried, might have put voters in an anti-tax mood and swept preschool funding away with it.

“As the person trying to get the [FEPP] levy across the finish line in November, I’m obviously excited about the opportunity to have a laser-like focus on that, as opposed to a potential referendum and the  [FEPP] levy at the same time,” Johnson says. “I signed on because I think it gives us a much clearer pathway for success in November.” The last time the families and education levy was on the ballot, in 2011, it passed by more than 63 percent.

Council member Mike O’Brien, who has been targeted with an outsized share of the criticism from activists who oppose spending more money on homelessness (including a “town hall” in Ballard that immediately devolved into a profane one-way screaming match), says it became “increasingly clear” over the past couple of months “that the public is aligned with the business community, specifically the Chamber,” which has run a well-funded campaign to reframe the employee hours tax, which would be paid by employers, as a “tax on jobs,” which would harm employees and the city as a whole.

In a statement, council member Lisa Herbold—who signed the joint statement supporting repeal—denounced the Seattle Metropolitan Chamber of Commerce, which she said “has convinced the vast majority of Seattleites 1) of the tired, old conservative trope that increased levels of human suffering we see in our city is caused by government inefficiency rather than by the Gilded Age level income inequality in Seattle and elsewhere, and 2) that leading first with a regional funding approach, reliant on higher property or sales taxes for all taxpayers, is preferable to resources from those most benefiting from income inequality in Seattle paying their fair share.” Asked why she issued such a scathing statement after signing off on the joint statement supporting repeal, Herbold said, “I’m acting based on what I’m hearing” about the lack of support for the tax, but “I don’t agree with” repealing the tax.

Had Durkan brought the Chamber into the head tax negotiations earlier this year, instead of focusing on getting Amazon to stand down, the campaign might have looked much different, or not existed in the first place. But as things played out, “don’t tax jobs” became a rallying cry for both businesses and, importantly, citizen activists, who also glommed on to the idea that the city could get by without additional revenues by auditing its homelessness programs  and “spending our existing dollars more efficiently.”

O’Brien says that with thousands of people sleeping outside and in shelters and transitional housing across Seattle and King County, “finding efficiencies” isn’t enough to make a dent in the crisis. “We absolutely need more funding for housing and  services. We would have to make devastating cuts to other programs that everyone cares about to fund what we need to do with existing resources, so that’s just not possible,” he says. With the head tax, which the task force chose after rejecting other options as impractical or open to legal challenge, off the table, “there’s nothing that stands out that’s remotely promising, and that’s discouraging.” A city income tax is locked up in court, sales and property taxes are regressive and unpopular, and other options—like a capital gains tax on wealthy individuals, or a tax on corporate profits—are prohibited by law. There really just aren’t many options that aren’t either political suicide or downright illegal.

For months, the mayor and council have talked about the need for “regional solutions” to homelessness—that is, a tax that would not be borne solely by Seattle. But the region has shown little interest, so far, in coming up with such solutions. Last year, King County Executive Dow Constantine proposed a countywide sales tax as a replacement for a Seattle-only property tax measure floated by then-mayor Ed Murray, but that proposal has not been seen or heard from since. Meanwhile, a regional task force called One Table, which was supposed to come up with recommendations for funding homelessness services earlier this year, has canceled several meetings and is reportedly stalled. Mayor Jenny Durkan opposed an earlier, larger version of the head tax and signed the council’s legislation for the “compromise” that will be repealed tomorrow, but has never come forward with an alternative proposal of her own, leaving the council in the driver’s seat on spending, for better or worse.

Mosqueda, one of the two council members who did not sign off on the statement advocating repeal, said today that the head tax the council approved was “the best idea at the time”—better, at least, than nothing, which is what the city is left with now. “I am happy to support an alternative strategy, but I need to know that there’s a proposal, so that folks have light at the end of the tunnel, so that there is housing on the horizon, so people can get off the streets and not continue to suffer and live outside.”

O’Brien expressed a sentiment that has been bubbling for weeks at city hall, on homelessness and other issues: “We need leadership from the mayor. We can’t say we’re not going to do anything. If there’s not a regional solution, we have to do something else. She’s been here six months now, and she needs to make this her top priority.” The mayor’s office did not respond to a request for further comment beyond the joint statement. But she did not present a plan to deal with the defeat of the head tax, which would have funded her proposal to add 1,000 new beds at shelters around the city, announced last week. “We’ll burn that bridge when we come to it,” Durkan joked at the time. And here we are.

Support

Sawant’s City Printer Usage: 26 Hours, One “Tax Amazon” Rally, 4,000 Copies

A little over a week ago, during the council debate over the head tax, council member Sally Bagshaw called out her colleague, council member Kshama Sawant, for using the legislative department’s shared printer to print out a huge number of bright red posters advertising a rally Sawant was holding over the weekend to protest Amazon and create public pressure on the council to support the highest possible tax. “I just don’t think it is right for us to be using city resources or the copy machines to promote something that not all of us agree to,” Bagshaw said.

I wondered just what kind of resources Bagshaw was talking about, so I filed a records request to find out how Sawant’s printer usage compared to other council offices’. (Each office has its own printer, but big jobs—like, say, 11-by-17 color posters for political rallies—must be done on a large color printer in the second-floor printer room).

Unfortunately, the city wasn’t able to provide the most recent month’s invoice to its printer company, Ricoh, because that invoice wasn’t available yet. Printer costs have accelerated steadily through the year, however, growing from $493.86 in January to $1,231.46 in February to about $1,300 in March (the exact total is hard to extrapolate because the March bill includes rent for the copier itself, plus various taxes whose rates are unspecified).

Fortunately, the printer itself does save records for the most recent several days, broken down by document name and the name of the staffer requesting the print job. I made my request on May 14, the day  Bagshaw chided Sawant for using the council’s shared, city-funded printer to create her rally posters, and got records showing all print jobs between 11:02 am on May 10 and 10:19 am on May 14. (According to the council’s public disclosure officer, the printer does not store print records long-term.) Sawant’s “Tax Amazon” rally was on Saturday, May 12.

The documents show that Sawant’s office—specifically, her legislative assistants Ted Virdone and Adam Ziemkowski—printed several thousand posters and other documents related to the rally, including hundreds of chant sheets to guide rally participants during the “March on Amazon.” The printing jobs dwarf other council office’s print requests; moreover, the council offices that did relatively large print jobs during the time when Sawant’s office was using the city printer to produce her rally posters were printing presentations, copies of studies, and agendas for council meetings—not posters for weekend demonstrations against Amazon aimed at pressuring council members to adopt a larger tax.

Between around 2:00 in the afternoon on May 10 and 4:00 in the afternoon on May 11, the day before the rally, Sawant’s office printed:

  • 1,004 copies of a document called “March On Amazon.doc.”
  • 50 copies of a document called “fight bezos bullying.pdf”
  • 75 copies of a document called “tax amazon, no loopholes, no sunset.pdf”
  • 50 copies of a document called “tax amazon – fund housing and services.pdf”
  • 50 copies of a document called “tax amazon, 75 million, no extortion2.pdf”
  • 50 copies of a document called “150m EHT.pdf” (Sawant was pushing for a head tax, or Employee Hours Tax, that would raise $150 million a year)
  • 50 copies of a document called “tax amazon, no bezos durkan deal.pdf”
  • 400 copies of a document called “Tax Amazon chantsheet2.doc”
  • 2,198 copies of a document called “may 11 (two sided).pdf.

It’s unclear, given the limited period of time the records cover, whether Sawant’s office printed other posters and rally-related before 11am on May 10, the earliest time for which printer records are available. It’s unclear from the records which documents were large 11-by-17 posters and which were in full color. However, demonstrators at last Monday’s council meetings on the head tax held signs bearing the same slogans as those in the file names Sawant’s office printed out the previous Friday, and Sawant herself defended her use of the city’s official printer to produce anti-Amazon materials, telling Bagshaw, “You can choose not to use your office for really fighting for the interests of working people and to build movements. I strongly believe that council resources absolutely should be used to further social movements and not for the protection of the interests of the chamber of commerce.”

Overall, Sawant’s office printed out more than 4,000 copies in the approximately 24 hours between the afternoon of May 10 and the afternoon of May 11. (After the rally, their printing needs returned to a normal level—about 40 pages between May 12 and May 14).  No other office came close. Council member Rob Johnson’s office was in second place, with just over 600 copies in the same period (none of them posters), but that was skewed by a single 465-page printout—copies of a PowerPoint presentation on the Families and Education Levy for council members.

Seattle Ethics and Elections Commission director Wayne Barnett told me that he considered Sawant’s use of the city’s printer to produce her rally signs acceptable under city ethics rules, because she was using the posters “to pass legislation.”

If you enjoy the work I do here at The C Is for Crank, please consider becoming a sustaining supporter of the site or making a one-time contribution! For just $5, $10, or $20 a month (or whatever you can give), you can help keep this site going, and help me continue to dedicate the many hours it takes to bring you stories like this one every week. This site is funded entirely by contributions from readers, which pay for the time I put into reporting and writing for this blog and on social media, as well as reporting-related and office expenses. Thank you for reading, and I’m truly grateful for your support.

Employee Hours Tax Passes Over Durkan, Amazon Objections, But Veto Looms

This story originally appeared at Seattle magazine.

With the city council poised to pass a proposed $500-per-employee “head tax” on Seattle’s 600 largest businesses, and Mayor Jenny Durkan equally prepared to veto the proposal in its current form, the question now is: What’s next?

With council members heading into a weekend of negotiations, it’s possible that both sides could emerge on Monday with a compromise solution that splits the difference between the tax that passed on Friday and the “compromise” version that Durkan and council president Bruce Harrell support, which would cut the council’s proposal in half. However, if the two sides fail to reach a compromise, the larger version of the head tax will almost certainly pass on Monday by a 5-4 majority, which is one vote shy of the 6-3 margin supporters need to override a mayoral veto.

In a statement Friday afternoon, Durkan made it clear that she would veto the tax in its current form, but said she still held out hope that the council “will pass a bill that I can sign.” However, Durkan’s ally Harrell, also made it clear on Friday that he would not support a compromise floated by council member Lisa Herbold to lower the tax to $350 per employee, indicating that he and Durkan may not be open to a proposal that merely closes the gap between what Durkan and the council majority want. It’s possible, in other words, that when Durkan says “a bill that I can sign,” she merely means a bill that cuts the tax to $250 per employee—the amount Amazon, which has threatened to stop construction on its Seattle headquarters if the tax passes in its original form, has said they are willing to accept. Amazon contributed $350,000 to a pro-Durkan PAC in last year’s mayoral election.

A quick backgrounder on the tax: Last year, at the end of its annual budget process, the council formed a task force to come up with a progressive tax to pay for housing and services for Seattle’s homeless population. After several months of meetings, and numerous compromises in response to objections from small and low-margin businesses, the task force came up with a plan that would generate about $75 million a year—a $500-per-employee annual tax on businesses with gross revenues above $20 million, a threshold that excludes companies with high gross revenues but tight margins, such as restaurants. The proposal also came with a spending plan that emphasized long-term affordable housing over short-term emergency shelter services, and a provision that would convert the head tax into a business payroll tax starting in 2021, with no sunset date.

On Thursday night, Mayor Durkan released her own “compromise” head-tax proposal, which would cut the recommended head tax in half, to $250 per employee, ditch the provision transitioning the head tax into a business payroll tax, and sunset the whole thing in five years unless the council voted proactively to renew it. On Friday, Harrell introduced a proposal identical to the Durkan plan, along with a spending plan that emphasizes shelter over permanent housing and would pay for just 250 new rental units over five years. The Durkan/Harrell plan also includes a four percent wage increase for social service workers (many of whom make just over $15 an hour) and funding for a second Navigation Team to remove tent encampments and refer their residents to services.

When a council vote is 5 to 4 and a veto hangs in the balance, talk inevitably turns to “swing votes”—that is, who can be swayed to join the council majority to make the bill veto-proof?

Right now, it appears unlikely that anyone in the council’s four-person minority will budge over the weekend to support the full $500 tax, or even Lisa Herbold’s proffered $350 compromise, but a lot can change in the course of two days. So perhaps there will be a compromise that convinces one of the council members who opposes the larger tax to join the council majority. (The opposite scenario—that one of the five members who voted for the original $500 tax will join the four-member minority that wants to cut it in half—seems highly unlikely, since all five council members have consistently supported the proposal that came out of the task force, and since they stand to gain more, politically speaking, by forcing Durkan into a veto fight than by switching sides and handing the mayor a bloodless victory.)

However: If, as seems more likely as of Friday afternoon, the vote remains 5-4, the question becomes what will happen in the 30 days after Durkan vetoes it.

Judging from council members’ past positions and their comments Friday, the most likely “swing vote” when the decision comes down to passing something or doing nothing appears to be council member Rob Johnson, who seemed more tentative in his position than either Debora Juarez (“If we tax jobs to build houses and the jobs leave because of the tax, then no houses get built”) or Sally Bagshaw, who said virtually nothing at Friday’s meeting but is typically not the first council member to make dramatic vote switches.

Last year, when the council was debating whether to include the head tax in the budget, Johnson argued that proponents needed to come up with a more detailed spending plan to justify such a substantial tax. They did exactly that—and Johnson voted instead for a hastily sketched-out proposal that some council members didn’t see for the first time until this morning. On Friday, the most enthusiastic comment Johnson managed to muster about Durkan’s proposal was that it “allows for us to continue that pay-as-you-go process that has been a hallmark of most of the affordable housing investments that we’ve made as a city.”  If tax proponents are looking for a swing vote to help them override Durkan’s veto (and there is precedent for this kind of vote-switching), Johnson may be their best bet.

The council will be in discussions all this weekend, and will meet again on Monday morning to discuss the proposal (and any compromises reached over the next two days). A final vote on the head tax is scheduled for 2:00 Monday in council chambers.

 

Morning Crank: I Don’t Want That Rumor to Be Perpetuated

1. Sitting at the year’s first meeting of the Progressive Revenue task force Thursday morning, it was hard not to flash back to a press conference the previous day, when Mayor Jenny Durkan announced that the city would spend some of the $11 million it expects to receive from the sale of a city-owned property in South Lake Union (a different property than the “teardrop” site council members discussed as part of their budget deliberations last year). At that briefing, held in front of two “tiny houses” under construction at the Seattle Vocational Institute, Durkan said it would take time to build all the housing that will ultimately be funded by the $290 million 2016 housing levy, and that in the meantime, a $5.5 million investment in “bridge housing”—or, in the clunky title Durkan chose for the initiative, “building a bridge to housing for all”—would give people living on the street slightly better options. “In an ideal world, we would not need to be building tiny houses,” Durkan said. Then she acknowledged that state and federal support for affordable housing is about to fall off a cliff.

The rest of the money would pay for rental assistance for people on SHA’s Section 8 voucher waiting list—”we’re going to focus on the people who need that assistance the most,” Durkan said— design of a new fire station, and city expenses related to the land sale. The developer buying the property would also provide $2 million of a total $7.7 million payment toward affordable housing projects elsewhere, required as part of the city’s Mandatory Housing Affordability program, to build actual affordable housing.

The reason I was thinking about Durkan’s announcement Thursday morning is that it was basically a rounding error—what government staffers sometimes call “budget dust”— in the funding needed to actually address the city’s homelessness problem, which has been growing every year since at least 2013. According to task force co-chair Kirsten Harris-Talley, if every unit of affordable housing requires $160,000 in capital expenditures from the city (more on how advocates for a higher employee hours tax arrived at that number in a minute), and the city will need around 20,000 new units for very low-income people in the next 10 years, that means the city will need to spend around $3.2 billion over that time. As you can probably imagine, the city isn’t spending anywhere close to that right now—according to the presentation, the city spent just under $95 million from all sources on capital housing investments last year. At that rate, it would take more than 33 years to come up with $3.2 billion (and that’s assuming housing costs stayed flat).

Obviously, none of this is an exact science. The $160,000 figure is an estimate provided by council member Kshama Sawant’s office, of what the city would need to contribute if it ramped up its affordable housing production and was unable to find a significant amount of new funding from other sources to help pay for all the new units. (Currently, each new unit costs the city about $93,000 in capital costs, but the programs that pay for the difference between the city’s contribution and the total cost to build a new unit, about $311,000, are only committed to a certain number of units, requiring the city—theoretically—to pay more for each additional unit out of its own pockets.)

If Harris-Talley and Sawant’s figures are correct, that provides a ready-made argument for the employee hours tax (effectively a flat annual tax for each full-time employee on every business over a certain revenue threshold) that they’ve wanted to pass all along. Today, the task force looked at potential revenues from the so-called head tax at different levels and with different sizes of business exempt from the tax, which I’ve copied below. (Last year’s proposed head tax would have exempted businesses with less than $10 million in gross revenues, up from $5 million in the initial proposal; some businesses argued that basing the tax on gross revenues was unfair because it didn’t take into account thin profit margins in certain industries, like restaurants.)

If the city goes through a recession, of course, the amount it can expect to collect will shrink. However, recessions tend to actually lower rents; Downtown Emergency Service Center director and task force member Daniel Malone pointed out that during the last recession, the county’s annual point in time count of people living outdoors tends to stagnate or even decrease, as it did between 2010 and 2011, and between 2011 and 2012. That’s one of the paradoxes of a weakening economy: Although revenues from taxes that are less stable, like direct taxes on businesses, tend to decline, so do rents, making it possible for some people forced onto the street by an impossible housing market to actually find a place to live.

2. In a King County Board of Health discussion about the possibility of a Hepatitis A outbreak in Seattle yesterday (a nationwide outbreak, ongoing now, began in California and was widely blamed on lack of access to handwashing facilities for the state’s homeless population), King County Health Department Director Patty Hayes expressed concern about the city’s decision last year to cut funding for three downtown hygiene centers that provide restrooms, showers, and handwashing and laundry facilities for homeless people living and moving through downtown.

City council and Board of Health member Sally Bagshaw—a vocal proponent for cutting funding to the facilities as part of the city’s new “performance-based” approach to homeless service contracts—objected to Hayes’ characterization of the problem.

“I think that [problem with the closure of the hygiene centers] is more apparent than real,” Bagshaw said. “We’re putting huge investments into new 24/7 shelters …  I’m working with those 24-hours shelters to say, ‘Can you open these up for people who aren’t [staying] here tonight” to take showers, she said. “We opened up community centers [for people to shower]. There are more facilities open now than before. It’s just that the money’s being shifted. I don’t want that rumor to be perpetuated. There were some organizations that didn’t get funded” because the city went to a competitive process, Bagshaw said.

I covered the cuts to funding for hygiene centers, and the reason some advocates believe community centers and shelters are not an adequate substitute for public restrooms and dedicated hygiene facilities, here.

3. The Sightline Institute, a progressive think tank that researches and covers of housing, transportation, and environmental policy from a green, pro-transit, pro-housing perspective, just brought on a new (unpaid) fellow to cover “issues of infrastructure, technology and energy with a view towards sustainability.” His name: Daniel Malarkey.

If that name sounds familiar, it should. (If it doesn’t, you weren’t following Seattle politics in the early 2000s.) He was the finance director for the Seattle Monorail Project, the transportation agency that was going to build a monorail line from Ballard to downtown to West Seattle. That project was doomed to failure after Malarkey’s revenue projections overshot the mark by about 50 percent, and after the agency compounded the problem by trying to paper over the error. (The error Malarkey made was counting revenues from taxes on every single car in Seattle, when in reality, thanks to heavy lobbying from the auto industry, all new cars and cars brought to the city by people moving here from out of state were exempt from the monorail tax. The result was that Malarkey overestimated the monorail’s tax base by a third) When he resigned at the end of 2003, I wrote this. Interestingly, it looks like his three years consulting or working directly for the monorail agency aren’t on his official Sightline bio.

Anyway, it looks like he’ll be writing about autonomous cars.

Full disclosure: I have written several pieces for Sightline and often use their research in my reporting.

If you enjoy the work I do here at The C Is for Crank, please consider becoming a sustaining supporter of the site or making a one-time contribution! For just $5, $10, or $20 a month (or whatever you can give), you can help keep this site going, and help me continue to dedicate the many hours it takes to bring you stories like this one every week. This site is funded entirely by contributions from readers, which pay for the time I put into reporting and writing for this blog and on social media, as well as reporting-related and office expenses. Thank you for reading, and I’m truly grateful for your support.