1. Last year, many people attending (or hoping to attend) the Bite of Seattle were dismayed to discover that the annual food festival’s new owner, payment processing company Cheq, was forcing people to view menus and purchase food from vendors using a clunky app that slowed down orders, eliminated interaction between local vendors and the public, and effectively barred anyone without a working smartphone or credit card from attending. (It also required vendors to adopt Cheq’s payment platform instead of using their own systems or accepting cash.) Local Reddit threads chronicled attendees’ complaints in real time, and a followup article on Eater detailed the difficulty vendors had using the new system.
The Puget Sound Business Journal reported last week that Cheq sold the Bite of Seattle to a Bay Area-based food-festival producer called FoodieLand, which produces branded events around the country.
On Tuesday, Seattle Center director Marshall Foster confirmed that Cheq will still be the payment system for the event, “but it won’t be your only choice.” In theory, that was true last year as well; Cheq set up a separate line where people who couldn’t use the app could buy tickets to exchange for food, but it was reportedly far away from vendors and added an extra step to an already cumbersome process.
Cheq “took on Bite of Seattle as an opportunity to really beta test its new software platform” last year, Foster said. “The company had a good experience. They learned a lot. They decided, ‘We’re not in the event business.’ And they found an organization … [whose] sole mission as an organization is to create local food focused events.”
2. On Friday, City Attorney Ann Davison announced the city will resume enforcing its law against graffiti, after a panel of the US Ninth Circuit Court of Appeals reversed a ruling by a US district judge in an ongoing case brought by protesters who were arrested for writing slogans on a barricade outside SPD’s East Precinct during protests against police brutality in 2020.
In a statement, Davison called the ruling an “important victory” for “the people of Seattle.”
“Graffiti is a massive problem for our City, costing taxpayers, businesses, and residents millions of dollars while creating widespread visual blight. We must have as many tools as possible to protect neighbors and residents impacted by graffiti,” Davison said.
Davison has asked for a jury trial in the case. The protesters’ defense rests, in part, on the argument that the city’s graffiti ordinance is so overbroad that, if interpreted literally, it would ban children from using chalk on sidewalks; the defendants also argued that the city violated their freedom of speech, by selectively enforcing a supposed prohibition on chalk writing while explicitly encouraging chalk writing in other contexts.
1. Burien Mayor Sofia Aragon, who’s running for the King County Council seat being vacated by Joe McDermott, reportedly caused jaws to drop at a “Tea Time with the Candidates” event at Wing Luke Museum last week when she brought up the death of 20-year-old student Tommy Le, who was shot by a King County sheriff’s deputy, as an apparent counterexample in response to a question about police violence and accountability.
According to community advocate Linh Thai, who worked to help pass the statewide police accountability initiative I-940 in the wake of Le’s death, moderator Wren Wheeler asked Aragon a question about police violence, naming Le in a list of people unjustly killed by police in King County. After giving a standard response about the need for accountability, Aragon pivoted, unprompted, back to Le, saying he had drugs in his system and was acting erratically when he was killed.
During an internal investigation into Le’s death, the sheriff’s office claimed the deputies were acting in self-defense and that Le had charged at them with a knife; a subsequent outside investigation found that Le had been shot in the back, had no knife, and may have been holding a ballpoint pen. After losing virtually every appeal it filed in the case, the county settled with Le’s family in a civil suit for $5 million.
Thai said the room went silent when Aragon implied Le had been in some way responsible for his own death. “Nobody asked her, nobody prompted her, she just decided on her won that ‘this is just something I should have something to say about,'” Thai said. “She said, ‘Let me circle back to the Tommy Le case and let me remind everyone that in the autopsy, there was a trace of drugs and also there was a report that things things were questionable about his mental health…” and I’m going, ‘Who asked you?'”
Aragon did not immediately respond to a request for comment.
Thai, who was queued up to ask the next question, said he took the opportunity to correct the record about Le’s death. “I was like, ‘I am not here to pick a fight with you on this, but what you said is just factually incorrect,” he said. “Regardless of whether there were drugs or mental health issues involved, there was no justification whatsoever for the manner in which Tommy Le was killed by the King County Sheriff’s Office—whatsoever.”
Later, Thai issued a public call for Aragon to apologize for her comments, which “have the potential to reopen old wounds, further deepening the pain that the Le family has endured for far too long. Most importantly, she might be governed and advanced policies that may not hold law enforcement to be accountable.”
Mosqueda, who appeared after Aragon, said she was waiting to speak in a green room and didn’t hear Aragon’s remarks.
2. Big businesses will dominate airwaves and mailboxes again this year, spamming voters with cookie-cutter messages accusing progressives of coddling drug dealers, hating police, and supporting encampments all over the city.
Real-estate companies and other business interests are outspending labor by about four to one so far in their efforts to elect city council candidates they believe will be sympathetic to their political goals. Not all candidates are equal, however; business-backed independent expenditure campaigns have raised far more (nearly $300,000) in their effort to elect Meta attorney Rob Saka (and defeat former Amazon labor activist Maren Costa) in District 1, for example, than they have to elect Chinatown0International neighborhood activist Tanya Woo, running against incumbent Tammy Morales in District 2 ($112,000, including a $10,000 donation from Bellevue resident and musician Krist Novoselic).
Similarly named campaigns (“Greenwood Neighbors,” “University Neighbors,” etc.) have popped up in six of the seven council districts (sorry, Pete Hanning), each backed by organizations like the Master Builders Association of King County, the Seattle Hotel Association, and the Seattle Restaurant Alliance, and companies like Goodman Real Estate, Dunn Lumber, and Saltchuk Resources.
In addition to Saka and Woo, they’re backing former Seattle employee Maritza Rivera over tech urbanist Ron Davis in District 4 ($259,000) former judge Cathy Moore over social equity consultant Christiana ObeySumner in District 5 ($185,000); retired Navy veteran Bob Kettle over incumbent Andrew Lewis in District 7 ($129,000); and cannabis entrepreneur Joy Hollingsworth over former Transportation Choices Coalition director Alex Hudson in District 3 ($51,000).
Labor, in contrast, has raised less than $250,000 for all its candidates combined. That includes $91,000 for Costa from a coalition of unions, $43,000 for Hudson from a similar coalition, and $102,000 from UNITE HERE Local 8, the hotel workers’ union, to support six candidates, including Hollingsworth, Moore, and District 6 incumbent Dan Strauss. (UNITE HERE’s mailers for Hollingsworth promise “Good jobs in new hotels. Make Seattle a better place.”) Even counting a $10,000 contribution from SEIU 775, the home health care workers’ union, to a pro-Lewis PAC called Energize Seattle, it’s obvious businesses will outspend labor the same way it always does—something to keep in mind the next time a Seattle Times editorial tries to both-sides the influence of “special interests” in local elections.
Two longtime residents of City Council District 3, Alex Hudson and Joy Hollingsworth, have announced they’re running for the council seat occupied for the last 10 years by Kshama Sawant, who announced earlier this month that she won’t seek reelection.
In conversations with PubliCola on Wednesday, both Hudson and Hollingsworth said they planned their campaigns assuming they would be taking on Sawant directly. Now that the firebrand socialist is no longer a factor, both said they feel a sense of relief that they’ll be able to talk more about their own priorities, rather than defending themselves against an incumbent whose fiery denunciations of “corporate Democrats” (including all eight of her council colleagues) have a tendency to suck all the air out of the room.
Although there are months to go before the filing deadline, Hudson and Hollingsworth are both well-positioned to be frontrunners in the race for District 3. Hollingsworth, whose family owns and operates a cannabis farm in Mason County, was born and raised in the Central District; her grandmother, Dorothy Hollingsworth, was a civil rights trailblazer and the first Black woman to serve on a school board in Washington state.
Hudson, the director of the Transportation Choices Coalition, is a longtime renter on First Hill who led the pro-density First Hill Improvement Association before working to pass big major transportation policy and funding packages, including last year’s Move Ahead Washington statewide funding bill.
If elected, Hudson would bring a long history of transportation advocacy and expertise to the council at a time when the city is failing to make progress toward Vision Zero, a plan to end traffic deaths and serious injuries in the next seven years. To get there, Hudson said the city needs to stop debating how to implement its Vision Zero goals and start implementing strategies it already knows are effective.
“There should not be as many fatalities, near misses, or injuries on our roadways as there are right now in the city, and that should be the primary focus of the Seattle Transportation Plan that they’re putting together now,” Hudson said. For example, she said, the city could easily install bike lanes, curb bulbs, spaces between parking and bike lanes, crosswalks, and lighting—design changes that slow down drivers and provide redundant protections for others on the road—without going through the usual years-long public process.
“Ludi’s”—a now-shuttered downtown diner, formerly known as the Turf, that mostly served low-income patrons—”was a place where you could go and get a hot meal and some protein and kick it in community. And I don’t know another place right now, anywhere in downtown, where you could do that.”
In our conversation, Hudson emphasized her experience building coalitions while also pushing boundaries. As head of First Hill’s neighborhood association, Hudson defied stereotypes about neighborhood activism, pushing for dense affordable housing at a Sound Transit-owned property and organizing to bring two new homeless shelters to the neighborhood. While it’s common to see organized neighborhood opposition to shelters or services, Hudson said that “with deep organizing, [by the time] we had the community meeting about it in the basement of First Presbyterian, site of one of the two shelters, every single person who was there spoke up and was like, ‘We want it. How can we help you?”
Hudson said she’s still learning about the city’s current response to homelessness, which consists largely of disruptive, traumatizing encampment sweeps. (The city-funded King County Regional Homelessness Authority, whose policies the city can influence through its annual budget, now controls all homeless service contracts). In general, she said, “there’s no point in just pushing people around, if what that is going to do is just further traumatize someone, disinvest them from what little belongings and stability and community that they have, and create a further cycle of distrust in the system.”
At the same time, she added, “unauthorized encampments in our parks isn’t a solution that works for everybody, including the people who want to use those parks.” For example, she supported the removal of a large encampment in and around Miller Park, which is next to Meany Middle School. One solution, she said, might be allowing more authorized encampments where people can connect with services and get on a path to housing. “Homelessness is a housing problem, and we need more housing,” she said. “But that doesn’t solve the problem for people sleeping in a tent tonight.”
Although downtown Seattle isn’t in District 3, policies to address homelessness downtown could impact every other district, because the KCRHA and the city have made a policy decision to focus most of their housing resources on downtown, through a public-private partnership called Partnership for Zero—”zero” referring to the number of people sleeping outdoors in the area for more than a brief period.
Hudson said the emphasis on downtown makes sense—”having some resources that are specifically targeted to downtown to support people, is a good and important thing”—but she said it needs to be coupled with efforts to give lower-income people, including those experiencing homelessness, places to go during the day besides social service providers.
“Ludi’s”—a now-shuttered downtown diner, formerly known as the Turf, that mostly served low-income patrons—”was a place where you could go and get a hot meal and some protein and kick it in community. And I don’t know another place right now, anywhere in downtown, where you could do that.” Commercial rent stabilization, city programs to support small businesses that cater to people who aren’t white-collar office workers, and partnerships with landlords trying to fill empty storefronts could help fill that need, Hudson said.
Hudson didn’t commit to a specific set of policies on policing, such as an ideal number of police officers or a path toward hiring more non-police responders, although she said that as a resident of First Hill, she often witnesses situations, like people in crisis, where police would only make the problem worse.
She was unequivocal, however, about another “public safety hazard”—the large concrete blocks, known as “ecology blocks” or eco-blocks, that businesses dump in public rights-of-way to prevent people living in RVs from parking in the city. Although blocking public streets and parking areas is illegal, the city has indicated it will not enforce the law, effectively allowing businesses to take over public space with impunity.
“The public right-of-way is for everyone, and so we can’t just [let businesses] drop hostile architecture all over the place, and call it good,” Hudson said. How would she propose making that happen, when the Seattle Department of Transportation has said it would be too difficult to remove the hundreds of heavy blocks that now litter the city? “Forklift comes, picks them up and moves them away. I don’t think it’s that complicated.”
“We’ve got to do better,” Hudson added. “If people can’t trust the city to move a piece of concrete, how can people trust the government to solve problems?”
Joy Hollingsworth
Hollingsworth, too, told me she was frustrated with the city about its slow response to road safety issues—so much so that she installed a camera at 23rd and John and recorded every crash at the intersection, posting clips on Youtube. It took five years to get the city to add turn signals and pedestrian safety improvements, Hollingsworth said. “There has to be a sense of urgency to take care of this stuff,” Hollingsworth said. “When a kid got hit on a scooter”—a crash her camera captured—I feel like that’s when the city started to pay attention to this corner.”
In our conversation, Hollingsworth emphasized her deep roots in the Central District and Capitol Hill neighborhoods, where she went to school (at Meany Middle School and Seattle Prep) and has lived all her life except during college, when she studied and played basketball at the University of Arizona. During that time, the Central District has lost most of its Black residents, gentrifying rapidly without meaningful anti-displacement measures that could help people stay in the area.
“The density has been very extreme in District Three,” Hollingsworth said. “And I say that because I don’t think we think of the impact that that’s had on certain neighborhoods. Seattle is very, very good at protecting white neighborhoods and not Black neighborhoods.”
As neighborhoods have gotten more multifamily housing, she continued, infrastructure hasn’t kept up.
“As we think about density, we have to also think about how it’s going to impact that neighborhood. How does it impact our water, our sewer, our garbage, our electricity?” Several current council members, including Lisa Herbold (D1) and Alex Pedersen (D4) support requiring developers to pay impact fees for the perceived negative impact of new density. Hollingsworth said impact fees might be part of the solution. So, she said, could programs to help homeowners convert their single-family houses into duplexes and triplexes without “changing the façade of the home.”
Hollingsworth said new residents have also impacted the availability of parking and clogged neighborhood streets. “We’ve gotten a lot of new congestion” because of new residents who live in buildings without parking, she said. “We thought people would come here and not bring their cars and just live in apartments” car-free, she said. “That’s not the case.”
“As we think about density, we have to also think about how it’s going to impact that neighborhood. How does it impact our water, our sewer, our garbage, our electricity?… We thought people would come here and not bring their cars. That’s not the case.”—District 3 candidate Joy Hollingsworth
Hollingsworth endorsed now-Mayor Bruce Harrell in 2021, and is widely expected to receive his endorsement. Asked whether she supports the mayor’s encampment removal policies, she demurred. “It’s a health hazard to people who are there for them to be living in those conditions… and we have to do better as a city,” she said.
What about hiring more police officers, another priority of both the mayor and most members of current council? Hollingsworth said her focus would be on hiring “good officers” at a rate that can produce “great response times,” not a hard and fast number. “We need to be investing in things that create safe neighborhoods,” like Byrd Barr Place and the Central Area Senior Center, she said, in addition to hiring officers. “It’s a holistic approach— not just ‘Joy wants more police.’ I think that’s a notion that’s been significantly put out there to scare people, and I think I’m thinking of community safety holistically, in a different, thoughtful way.”
Hollingsworth expressed frustration at being portrayed, in her view simplistically as the candidate who “wants to repair relations with police. That relationship has to be rebuilt, and there’s also some places where … we can’t deny that there has been overpolicing.”
“But we also know that they are a piece of the public safety” picture, she continued, adding that ideally, “we’d have our EMTs responding to medical, medical emergencies, we’d have health care providers or social workers responding to our unhoused neighbor… and we’d have [police] responding to potentially violent crimes.”
If elected, Hollingsworth would be the only Black councilmember since Harrell left the council in 2019, and one of the only queer Black women in the council’s history. She said her identity as a Black queer woman would add an important perspective to the council, because “a lot of the policies… we’re trying to do are based on dismantling systemic racism, and that comes from anti-Blackness.” But, she added, “I don’t want to be just the Black candidate, I want to be the best candidate. Being black is just a part of who I am, being queer is part of who I am, being a female is just part of who am. It’s my identity, but it doesn’t define me.”
Editor’s note: This post has been corrected to reflect the fact that Sherry Harris was the first out queer Black woman on the council, as a commenter pointed out.
Third Avenue downtown (image via Downtown Seattle Association)
1. Learn to trust the Fizz: As PubliCola reported last week, Mayor Bruce Harrell has just reorganized his office, including the reassignment of former Director of Public Safety Andrew Myerberg to the newly created position of special projects director, answering to Harrell’s favored public safety advisor Tim Burgess (whose own title is, confusingly, Director of Strategic Initiatives). The public safety shuffle reportedly reflects a division in the mayor’s office between Burgess (a former city council member who favored law-and-order strategies like a ban on “aggressive panhandling”), Myerberg (the former Office of Police Accountability Director) and Harrell’s niece and senior deputy mayor, Monisha Harrell, who was previously Myerberg’s boss.
The divide between all these players isn’t just about policy, but perception—Myerberg, whose experience is more in the realm of policy than politics, is reportedly getting stuck with the blame for the negative public response to an ill-conceived plan to crack down on people gathering at Third and Pine downtown by using rarely deployed laws governing behavior on buses and bus stops.
The reorganization of the mayor’s office doesn’t stop there. Jeremy Racca, Harrell’s former council aide-turned-general counsel, has taken on additional duties under the new secondary title of “chief administrative officer,” while policy director Dan Eder, a former council central staffer, now reports not to the mayor but to Racca.
Jamie Housen, the mayor’s campaign consultant-turned-communications director, has been bumped up to report directly to Harrell, while deputy mayor Tiffany Washington, the former homelessness director for the Human Services Department, gained two new direct reports, including Lisa Gustaveson, a former homelessness staffer at HSD who worked briefly for the King County Regional Homelessness Authority before returning to the city earlier this year.
So what does it all mean? As Harrell told PubliCola during a press conference last week, “moving people around” early in a mayoral term isn’t uncommon—but it does speak to who’s in and out on the seventh floor (and the mayor’s good graces). Out: Myerberg (who is, interestingly, the only person Burgess oversees), Eder… and possibly another top staffer whose responsibilities are officially the same, but who we’ve heard been relieved of some duties. In: Washington, Burgess, and Housen—whose former boss, Harrell’s political consultant Christian Sinderman, reportedly has his own office space at the city. In addition, top-level staffer Adiam Emery, the mayor’s former chief equity officer, has a heightened public presence and new title, executive general manager.
Closed-for-business vibes: Pre-pandemic snapshots of Third Avenue from the DSA report.
2. The city council’s homelessness and public assets committee considered a resolution yesterday to endorse a plan created by the Downtown Seattle Association to revitalize the Third Avenue transit corridor—currently a wide, bus-clogged expanse of pavement flanked by narrow sidewalks and many boarded-up businesses.
The DSA’s “Third Avenue Vision” has actually been around for several years, but got sidelined by the pandemic, which exacerbated some of the issues the DSA raises in its report while reducing the number of people riding buses on the street—which, as of 2019, was the busiest bus-only corridor in the nation.
DSA director Jon Scholes said the business group’s pre-pandemic surveys found “a strong consensus that Third Avenue is the street that most people don’t want to be on. … It really hasn’t recovered as a street since the … original transit tunnel was dug through and along Third Avenue in the early ’90s.” That tunnel has served light rail exclusively since buses were kicked onto surface streets, including Third Ave., in 2019. Since then, many businesses shut their doors because of the pandemic, and Third Avenue continues to be the focus of periodic crackdowns on drug sales, retail theft, and people hanging out without an obvious destination (what’s often lumped the general category of “disorder.”)
The proposal aims to reduce bus traffic volumes, provide more exposure for street-level businesses, and give pedestrians more space through four potential strategies: A “compact transitway” that would create new sidewalk space by reducing Third Avenue from four lanes to two; a “median transitway” option that would move bus stops to a new median and convert the street into a two-way transit street, using shuttles to move riders through downtown; a “transit shuttle and hub” model that would also rely on shuttles through downtown, but eliminate the median in favor of a two-lane roadway; and a “transit couplet” framework that would turn a three-lane Third Avenue into a lower-volume one-way “couplet,” with buses traveling north on Third and southbound on a parallel street such as Second Ave.
Although the DSA’s report does not explicitly mention crime or homelessness, focusing instead on ways to improve the pedestrian environment broadly, council president Debora Juarez brought it up on Wednesday, saying, “We should be honest about it how Third and other streets have changed and have become not safe. We want it to be safe for everybody, and also for addressing homelessness and getting the right people down there to handle it, but also alleviating some of what pressure from a major corridor like Third. So I think we have to be honest about that.”
Scholes did not respond to Juarez’s comments directly; however, the vision the DSA has proposed for Third Avenue appears to offer little room for poor or homeless people. Notably, two sites of frequent crackdowns on homelessness and crime—the area around the McDonald’s at Third and Pine and City Hall Park in Pioneer Square—have been reimagined in the DSA’s renderings: The park, which was closed and fenced after the removal of a large encampment, appears as the front door to a fanciful “osteria” on the south side of the King County Courthouse, and the McDonald’s has been replaced by a sidewalk cafe.
Black Seattleites have been disproportionately prosecuted for cannabis-related offenses, including in recent years.
By Erica C. Barnett
On Tuesday, the city council’s finance committee approved several pieces of legislation from Mayor Bruce Harrell aimed at improving access to the cannabis industry for Black Seattle residents and other people “disproportionately harmed by the federal War on Drugs,” including “social equity licenses” intended to reduce barriers to entry for people historically excluded from the legal pot industry, which is overwhelmingly dominated by white men.
The new licenses would go to businesses with owners who have lived in “disproportionately impacted” areas or who have been previously convicted, or have family members who were convicted, of a drug-related crime.
The city can’t create new state cannabis licenses, which are distributed (and limited) by the state Liquor and Cannabis Board, but they can set standards and fees for cannabis businesses operating in the city. The new local licenses would work in tandem with forthcoming LCB rules that will give priority to cannabis license applicants who have been convicted of cannabis-related crimes in the past; Seattle is expected to gain two new cannabis licenses after the LCB issues its decision.
The council also passed legislation that would require new licensees who buy existing cannabis businesses to retain existing workers for at least 90 days and to preferentially hire former employees for at least six months.
The biggest debate on Tuesday involved several amendments to a third bill that, among other intention-setting provisions, mandates a future “cannabis needs assessment” to “provide demographic information about workers currently employed in Seattle’s cannabis industry; determine the highest training needs of those workers wishing to advance in the cannabis industry and become owners; and include recommendations about whether and how to fund such training,” according to a memo from council central staff.
The legislation also proposes an advisory committee made up of “workers, industry members, and community members impacted by the federal War on Drugs” to review that assessment and recommend future policies to the council.
Initially, Mosqueda named UFCW’s training program in an amendment describing “the type of organization that should conduct the Cannabis Needs Assessment,” but a later version of that amendment, which passed Wednesday over opposition from Nelson and Pedersen, said the assessment should be conducted by an unspecified nonprofit “with expertise in the roles and functions of jobs within the cannabis industry.”
Councilmembers Alex Pedersen and Sara Nelson voted against the bill, arguing that it was designed to hand the contract for the needs assessment to the United Food and Commercial Workers 3000 (formerly Local 21) which has lobbied the council heavily on this issue. “I’maskingforanhonestandtransparentneedsassessmenttobeconducted, notonethat stacksthe deck foraparticularinterest [group],” Nelson said.
Initially, Mosqueda named UFCW’s training program in an amendment describing “the type of organization that should conduct the Cannabis Needs Assessment,” but a later version of that amendment, which passed Wednesday over opposition from Nelson and Pedersen, said the assessment should be conducted by an unspecified nonprofit “with expertise in the roles and functions of jobs within the cannabis industry.” The needs assessment and the work of the task force could lead to future proposals, such as training requirements for workers in cannabis sales, production, and processing jobs.
Originally, UFCW suggested a new “cannabis equity tax” that the union estimated would raise $5 million a year, primarily for “workforce development and training.” Earlier this year, a representative from UFCW told PubliCola that they hoped to win the contract to do this training work, which would include medical training for budtenders who are “operating as de facto pharmacists.”
The UFCW-backed proposal, which Mosqueda’s committee discussed extensively earlier this year, would have been more prescriptive about hiring, requiring all cannabis businesses to make a “good-faith effort” to ensure that half their workers currently lived in distressed ZIP codes and requiring that at least 10 percent of employees at each business had a past cannabis-related arrest or conviction, or have an immediate family member who met that criteria. That plan was never part of a formal proposal, but it did inform the ongoing debate about what the city should do to promote equity in cannabis.
Although the suite of bills from Harrell’s office represented a dramatic step-down from those proposals, representatives from the existing cannabis industry expressed concerns in a letter to committee members last week. Among them: What happens if a company that processes cannabis into one kind of product sells its license to a different kind of processor, but has to retain all its employees for six months under the new law? “Regulation that impacts hiring must respect the individual who is needed and qualified for a job, and not a one-size-fits-all approach,” the Washington Cannabusiness Association wrote.
At a press conference last month, Mayor Bruce Harrell stood at a podium and thanked Amazon for funding affordable housing in Seattle. With him stood the director of Amazon’s Housing Equity Fund and representatives of three housing development organizations led by people of color that are receiving loans or grants from Amazon totaling about $23 million: Mount Baker Housing, El Centro de la Raza, and Gardner Global, a Black-owned developer working on a mixed-use apartment project at the former site of Mount Calvary Christian Center in the Central District.
This is Amazon’s most recent disbursement from the $2 billion Amazon pledged last January for affordable housing in three of its employment hubs. Three of the projects, including the Mount Baker Village preservation project, are affordable to people earning up to 60 percent of the Seattle area median income, currently about $54,000 for a single person; Gardner Global’s development in the Central District will include units for households up to 80% of area median income.
Amazon is by far Seattle’s—and now Washington state’s—largest employer. Over the past six years, Amazon’s relationship with the city and its politics has been fraught, with dramatic tussles over taxes, heavy-handed bids to sway local elections, and tech worker protests over the company’s role in the climate crisis. Given this history, it’s worth looking more closely at Amazon’s investment in affordable housing: its scale, what it means for the recipients and the company, and its political significance.
To begin with the obvious, $23 million is not a great sacrifice for Amazon, especially considering that $15 million comes in the form of low-interest loans that will be repaid.
JumpStart brought in an impressive $248 million last year. If Amazon’s tax bill really is on the order of $124 million, then these grants amount to about one-fifteenth of that.
It’s instructive to compare the $8 million Amazon will spend on two of the projects in grants to what the company may be forking over to the city this year thanks to JumpStart Seattle, a payroll-based tax paid by the city’s largest employers that passed in 2020.
Neither Amazon nor the city will disclose that number. But back-of-the-napkin math suggests that the company could easily be responsible for over half the total revenue from the tax, given the size of its Seattle workforce and the graduated structure of the tax, whose rate rises based on company size and worker compensation. JumpStart brought in an impressive $248 million last year. If Amazon’s tax bill really is on the order of $124 million, then these grants amount to about one-fifteenth of that.
According to Seattle Councilmember Teresa Mosqueda, “$97 million from JumpStart went to the Office of Housing to be disbursed in the 2022 calendar year” to support affordable housing projects and services. Given that another large chunk of the first year’s revenue went to plug pandemic-related budget holes, she said, “we should be able to do even more next year.”
Those city funds are already enabling property acquisition and affordable housing development at least 16 sites around the city. I wish those projects and the progressive tax revenue supporting them got as many press conferences and as much media fanfare as Amazon’s housing fund has inspired.
All this is not to say that Amazon’s voluntary grants and loans are unimportant to their recipients. Cobbling together funds to build and operate affordable housing is extremely challenging. Estela Ortega, executive director of El Centro de la Raza, which received $3.5 million for an 87-unit project in Columbia City for families earning between 30 and 60 percent of area median income, says the grant is helping to close a gap caused by rapidly rising costs.
“We had a $54 million budget at the first of the year, then our contractor did a new estimate and it went up to $58 million,” Ortega said. “Amazon’s money is critical. If we had to raise another few million, we would not be breaking ground on January of 2023, which is our plan.”
This also illustrates that Amazon’s contributions, though they may be crucial, are one small part of the funding for these projects: That $3.5 million almost covers the sales tax costs for El Centro Columbia City. The project is also receiving $5 million from the state Housing Trust Fund and over $11 million from the city of Seattle, among other sources. (Interestingly, Seattle’s contribution includes over $7 million from JumpStart. If my speculative math is correct, that means Amazon may be paying as much into the project through taxes as through the grant.)
You can’t really blame Amazon’s public relations team for titling its press release—“Amazon to fund construction of 568 affordable homes in Seattle”—to the company’s best advantage, subtly implying that Amazon might be footing the entire bill. It’s less forgivable for the Seattle Times to begin its coverage the same way—“Amazon committed Thursday to providing $23 million to create and preserve nearly 600 affordable homes in Seattle”—and then make no mention at all in the rest of the piece of other funding sources or the total costs involved. The average member of the public, no expert on housing development and finance, could easily walk away with the impression that Amazon is singlehandedly gifting us 600 affordable homes.
None of this might matter, and might be considered nitpicking, if there was no larger political meaning to Amazon’s actions. But the tenor of the June press conference, with Amazon in the role of good corporate citizen, contrasted sharply enough with the fights of recent years to make one wonder. When Amazon’s housing fund and an initial round of recipients were first announced in 2021, the absence of projects in Seattle was conspicuous. Instead, $185.5 million (mostly in loans) went to projects in Bellevue, every pundit’s favorite foil to Seattle when it comes to Amazon-politics. So what does it mean that Amazon is suddenly playing so nice with its hometown? Continue reading “Amazon’s Housing Fund Sends a Political Message”→
The Puget Sound Business Journal reported last week that Cheq sold the Bite of Seattle to a Bay Area-based food-festival producer called FoodieLand, which produces branded events around the country.
According to community advocate Linh Thai, who worked to help pass the statewide police accountability initiative I-940 in the wake of Le’s death, moderator Wren Wheeler asked Aragon a question about police violence, naming Le in a list of people unjustly killed by police in King County. After giving a standard response about the need for accountability, Aragon pivoted, unprompted, back to Le, saying he had drugs in his system and was acting erratically when he was killed.
