Category: Historic Preservation

City Council, Development, Equity, Historic Preservation, Mayor Durkan, Parks, Taxes

City Budget Roundup, Part 1: Soda, Short-Term Rentals, and Legacy Businesses

I’m leaving town just in time for election day this year (one more year, and it’ll be a trend), but before I do, I wanted to give a quick rundown of what’s happening with the city budget—specifically, what changes council members have proposed to Mayor Jenny Durkan’s budget plan, which holds the line on homelessness spending and includes a couple of controversial funding swaps that reduce potential funding for programs targeting low-income communities. None of these proposals have been passed yet, and the council has not started publicly discussing the cuts it would make to the mayor’s budget to fund any of their proposed new spends; this is just a guide to what council members are thinking about as they move through the budget process.,

This list is by no means comprehensive—the list of the council’s proposed budget changes runs to dozens of pages. It’s just a list of items that caught my eye, and which could cue up budget changes or future legislation in the weeks and months ahead. The budget process wraps up right before Thanksgiving, but the discussions council members are having now could lead to additional new laws—or constrain the mayor’s ability to spend money the council allocates, via provisos that place conditions on that spending—well into the coming year.

Sweetened Beverage Tax 

As I reported on Twitter (and Daniel Beekman reported in the Times), council member Mike O’Brien has expressed frustration at Mayor Jenny Durkan for using higher-than-expected revenues from the sugar-sweetened beverage tax, which is supposed to pay for healthy food initiatives in neighborhoods that are most impacted by both the tax and health problems such as diabetes and obesity, to balance out the budget as a whole. In a bit of budgetary sleight-of-hand, Durkan’s plan takes away general-fund revenues that were paying for those programs and replaces them with the “extra” soda tax revenues, which flatlines spending on healthy-food initiatives (like food banks, Fresh Bucks, and school-lunch-related programs) aimed at reducing consumption of unhealthy food… like soda.

“The intent was pretty clear when we passed the legislation last year about how the funding would be spent,” O’Brien said last week. “What we saw in this year’s budget was [a proposal] that may have technically met the letter of it, but certainly not the spirit.”

O’Brien’s proposal would create a separate fund for soda-tax proceeds and stipulate that the city should use the money from the tax in accordance with the recommendations of the advisory board that was appointed for that purpose, rather than reallocating them among the programs the tax is supposed to fund, as Durkan’s budget also does. (See chart above). The idea is to protect the soda tax from being used to help pay for general budget needs in future years, and to ensure that the city follows the recommendations of its own soda tax advisory group.

Airbnb Tax

When the city passed a local tax on short-term rentals like Airbnbs, the legislation explicitly said that $5 million of the proceeds were to be spent on community-led equitable development projects through the city’s Equitable Development Initiative. This year, state legislators passed a statewide tax that replaced Seattle’s local legislation, but council members say the requirement didn’t go away. Nonetheless, Durkan’s budget proposal stripped the EDI of more than $1 million a year, redirecting those funds to pay for city staff and consultants, prompting council members including O’Brien, Lisa Herbold, and council president Bruce Harrell to propose two measures restoring the funding back to the promised $5 million level and creating a separate equitable development fund that would include “explicit restrictions” requiring that the first $5 million generated by the tax go toward EDI projects, not consultants or overhead.

“I think the mayor did this intentionally,” O’Brien said last week. “I don’t think she doesn’t like the equitable development initiative—I think she’s just struggling to make the budget balance—but this is a priority. We’ve seen with the sweetened beverage and the short-term rental tax that …  when we say we are going to impose a new revenue stream and here’s how we’re going to dedicate it, and then less than a year later someone says we’re going to dedicate it a different way, I think that is highly problematic on a much larger scale than just these programs.”

The council appeared likely to reject a separate, tangentially related proposal by council member Rob Johnson to exempt all short-term rental units that existed prior to September 2017, when the council first adopted rules regulating short-term rentals, from the new rule restricting the number of units any property owner could operate to a maximum of two. Currently, this exemption only applies to short-term rental units downtown and some units in Capitol Hill and First Hill; by providing the same exemption to short-term rentals across the city, Johnson said, the council could provide some certainty that the city would actually bring in $10.5 million in annual revenues, which is what the state projected and what Durkan assumed in her 2019 budget.

O’Brien, who drafted the original short-term rental regulations, suggested Durkan had jumped the gun by assuming the state’s projections were right before the legislation had even taken effect. “Typically, we try to be conservative when we have new revenue sources,” he said. Sally Bagshaw, who represents downtown and Belltown, said she had heard from constituents who bought downtown condos as retirement homes who told her their buildings have turned into 24/7 party hotels with few permanent residents. “The idea of opening this up just for budget reasons is disturbing,” Bagshaw said.”

Totem poles

Photograph by Rick Shu via Wikimedia Commons

As Crosscut has reported, local Native American leaders want the city to remove the totem poles erected in Victor Steinbrueck Park, because they have nothing to do with the Coast Salish people who have long populated the area in and around what is now Seattle. Other totem poles in Seattle, including the Tlinget pole in Pioneer Square, are similarly controversial. Council member Debora Juarez, a member of the Blackfeet Nation, is sponsoring an item that would direct the city’s Office of Arts and Culture to address the issue—not by simply removing the offending poles (which is controversial among some historic preservationists and Pike Place Market advocates) but by reviewing and making recommendations about all the Native American art on all city-owned land in Seattle. In response to Juarez’s proposal, budget chair Sally Bagshaw cautioned that she didn’t “want to get bogged down” in a massive study if the problem of offensive or inappropriate art could be addressed on a case by case basis “when they come to our attention. Otherwise,” Bagshaw continued, “I can imagine someone [stalling the process by] saying, ‘Well, we haven’t looked at our 6,000 acres of parks.'”

Legacy Businesses 

In announcing a proposed $170,000 add for the legacy business program—a plan to protect longstanding neighborhood businesses by providing cash assistance and incentives for landlords to keep renting to them—council member Lisa Herbold called it the policy for which she is willing to “fall on [her] sword” this year. Previous budgets have provided funding to study such a program, but Herbold’s proposal this year would actually get it off the ground, by providing startup and marketing costs for the program. “Much like landmarks are a bridge to our city’s culture and history because of their physical form, sometimes businesses as gathering places are also a bridge to our city’s history and culture,” Herbold said.

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Critics have said Herbold’s proposal, like similar programs in other cities, could prevent the development of badly needed housing by saving struggling businesses out of a misguided sense of nostalgia.

In response to a question from council member Teresa Mosqueda about whether the program might allow businesses to relocate or reopen in new developments, Herbold said yes, citing the Capitol Hill writers’ center Hugo House as an example. However, it’s worth noting that the Hugo House is a nonprofit, not a for-profit business, and it was “saved” not by government intervention but by the  private owners of the old house in which Hugo House was originally located, who promised to provide the organization with a new space when they redeveloped their property.

 

Arts, City Council, Density, Development, Historic Preservation, housing, zoning

Emails Reveal Council Drafted Pro-Showbox Talking Points; City Lawyers Expressed Concerns About Landmark Status Based on “Popularity”

Emails obtained by the C Is for Crank reveal the extraordinary measures city council members and staff took to promote legislation that expanded the Pike Place Market Historical District to include the Showbox on First Avenue in downtown Seattle, scuttling a planned apartment building on the site and prompting a lawsuit claiming that the council violated numerous state and city laws when they voted to effectively downzone the Showbox property from 44 stories to two. The emails also reveal that the city attorney’s office advised the council against pursuing landmark status for the Showbox based on the “popularity” of the venue, and warned that making such a designation based on popular sentiment in favor of the Showbox, a tenant, could raise legal concerns about whether the decision was “arbitrary and capricious.”

Among other machinations, the emails reveal that the city council’s public information officer drafted talking points for Death Cab for Cutie singer Ben Gibbard, who testified in favor of the legislation in early August, based on comments he made to an NPR reporter about the Showbox the previous week. Gibbard was listed as one of the “advocates” for the legislation in an email from the spokeswoman, Dana Robinson Slote, suggesting actions council members could take to promote the legislation; the advocates were listed in contrast to the “‘pain point’ players” in the debate, which included Onni, the developer that planned to purchase the land and build a 440-unit apartment building; Seattle Department of Construction and Inspections director Nathan Torgelson; and Mayor Jenny Durkan.

In the email, Robinson Slote writes,

Ben— Thanks for your time by phone yesterday. As promised, below you’ll find suggested talking points for Monday’s Full Council meeting. In short, I summarized many of the themes from an interview you gave in June this year, which seems to fit well with the Resolution and Ordinance CM Sawant will introduce to #SaveTheShowbox

Also as discussed:

• I’ll plan to meet you on the first floor of the City Hall lobby approx. 1230p (Lyft can bring you to the 5th Ave entrance), and feel free to call if I can help guide you here.

• We’ll meet first with Sawant for fewer than 15:00; and,

• Then I’ll take you to O’Brien (Ballard, Fremont) and Herbold (West Seattle), followed by Citywide elected Gonzalez & Mosqueda (and the remaining Councilmembers Johnson, Juarez, Bagshaw and Harrell) as time allows. Public comment begins at 2:00 p.m., so we can decide in advance if you’d still like to speak (and sign you in) or watch from the Green Room. Thank you once again for sharing your time and talent on this important occasion and for this critical cause.   

Slote then lays out a full page of potential talking points, many of which focus on Gibbard’s experience growing into middle age in Seattle after moving here and falling in love with the city in the 1990s.

Kshama Sawant and  her staff used private gmail accounts, rather than their official city of Seattle email addresses, to discuss the Showbox legislation and the lobbying campaign to promote it, which was run out of Sawant’s office.

Robinson Slote says she did not give Gibbard special treatment during the Showbox debate, and points out that the “talking points” she wrote for Gibbard were based on his own previous comments. Gibbard ended up writing his own testimony, which differed significantly from the draft  Robinson Slote provided. However, the council’s solicitous treatment of Gibbard—which also included shepherding him from council member to council member and offering to host him in the council’s “green room,” away from the general public, during the council meeting—is not the standard treatment accorded to most members of the public, who must line up to speak, write their own testimony, and sit or stand in council chambers along with the rest of the general public.

Also unusual is the fact that legislation sponsor Kshama Sawant and her staff used private Gmail accounts, rather than their official city of Seattle email addresses, to discuss the Showbox legislation and the lobbying campaign to promote it, which was largely run out of Sawant’s office using city resources. It is standard practice for elected officials and public staffers to use their city email addresses to do public business, both because this practice just makes sense (all the other council members and staffers who are cc’d on the email use their public @seattle.gov addresses for all communications), and because private emails can more easily be withheld from public disclosure. If a journalist or member of the public requests email communications from an elected official or government staffer, it’s up to that staffer to volunteer their private emails for disclosure; the city’s public disclosure officers have no authority to go searching through people’s private email accounts. Additionally, public emails are archived by the city; private emails are not.  Sawant and her staffers’ email addresses all use the naming convention Firstnameatcouncil@gmail.com.

Seattle Ethics and Elections Commission director Wayne Barnett says the city’s ethics code is silent on the issue of whether city officials and employees are allowed to do city business using personal email addresses. The city IT department’s policy on use of city resources, however, does prohibit “The use of personally owned technology for conducting City business, where official City records are created but not maintained by the City.”

In another email, Sawant’s staff discusses the wording of a poster, ultimately produced by Sawant’s council office, urging the council to vote to “save the Showbox” by including it in the historic district. An early version of the poster included the suggestion to “Call in sick – go protest!”

The fact that Sawant and her staff, as well as Robinson Slote, were discussing how to influence the legislation could—if the inclusion of the Showbox in the historic district is deemed to be a spot downzone of the property—give the owners of the property important evidence in their case that the council and staffers engaged in illegal “ex parte” discussions and failed to remain impartial on a zoning decision.

In another exchange that could help the Showbox’s owners make the case that the council intervened improperly on a zoning decision, the city’s own attorney cautions against seeking landmark status for the Showbox based on the “popularity” of the venue. (The inclusion of the Showbox in the historic district is different from landmark status, but the emails demonstrate that the city’s attorneys cautioned against such a political approach to historic designation.) In an email dated July 31, assistant city attorney Bob Tobin told city council member Lisa Herbold that it would be “premature” for the city council to “take the position that the [Showbox] qualifies as a landmark, without first allowing the (expert) Board’s process to play out, and without applying the standards in the code, seems premature at best. From a legal perspective it is preferable for the Council to consider the designation decision in due course, pursuant to City ordinances. And certainly if a resolution is being considered, it shouldn’t suggest (as CM Sawant’s letter apparently did) that designation should be based upon popularity rather than the legal standards in the code, or that the City should apply the code to exert ‘leverage’ over the applicant. Those types of references invite legal challenges based upon the ‘arbitrary and capricious’ nature of the Council’s ultimate decision.” The Showbox owners’ lawsuit, of course, claims precisely that the council’s decision to include the property in the Pike Place Market Historical District was “out of step with the founding of the Pike Place Market redevelopment and is the definition of arbitrary and capricious.”

The city’s own attorneys advised the council against making the argument that the Showbox should be granted formal landmark status because of its “popularity” with the public: “And certainly if a resolution is being considered, it shouldn’t suggest (as CM Sawant’s letter apparently did) that designation should be based upon popularity rather than the legal standards in the code, or that the City should apply the code to exert ‘leverage’ over the applicant. Those types of references invite legal challenges based upon the ‘arbitrary and capricious’ nature of the Council’s ultimate decision.”

One day after sending the email to council member about landmark status, Tobin responded to an email from Sawant staffer Ted Virdone, who had posed several questions about what would happen if the city included the Showbox in the Pike Place Market Historical District, rather than seeking to make it a landmark on its own. Virdone’s questions are in italics.

Hi Ted. Here is a quick response to your questions below, in red.

  1. Is it possible to extend the boundary of the historical district to cover a property if the property owner objects? I believe the answer is yes, as owners typically can’t veto regulatory measures.
  2. If the Historical District is extended to cover this property, could it effect this development, or would the develop be vested in some way that would trump the procedures of the historical district? I believe that vesting of such a project would likely occur at the time that the Design Review process begins (SMC 23.76.026), and I doubt that process has begun. If the district were enlarged before the projects vests, then the applicant would be subject to historic district regulations, but that doesn’t necessarily mean that the Showbox would be preserved.
  3. Are there any other considerations we should be aware of? There likely are, but I would need more focus on your questions and goals. Bob

Five days later, Virdone’s boss, Sawant, introduced legislation to extend the Pike Place Market Historical District to include the Showbox and about a dozen other properties on the east side of First Avenue. After property owners ultimately objected, that legislation was scaled back to encompass (and effectively downzone) just the Showbox property. Less than a month after that, the owners of the Showbox sued the city, seeking $40 million in compensation for legislation that, they say, drastically devalued their property.

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Affordability, Arts, City Council, Density, Development, Equity, Historic Preservation, housing, land use, zoning

Lawsuit: Council Violated Numerous Laws When It “Saved the Showbox”

In a move so predictable it hardly even merits an I-told-you-so (but I did tell you so), the owners of the building on First Avenue that houses the Showbox have sued the city in response to a land-use decision that effectively downzones their property from 44 stories to two, arguing (among other things) that the move constitutes an illegal spot zone and a taking of private property worth $40 million—the sum for which the owners had planned to sell the land.

To unpack the story—which David Kroman broke on Crosscut earlier today—it helps to recap a bit of the whirlwind history that led us to this point. Last month, news broke that a Vancouver developer called Onni Group planned to tear down the Showbox and redevelop the property as a 440-foot-tall apartment building with 442 units, which could have included a new ground-floor music venue. The city council had just upzoned  the property as part of the city’s Mandatory Housing Affordability plan, which grants developers in some areas, including downtown, the right to build taller and denser in exchange for building or funding affordable housing. However, a public outcry—spearheaded by music fans and amplified by anti-development council member Kshama Sawant, who saw the controversy as an opportunity to stop a “greedy developer” from profiting from a new high-end development—prompted “emergency” legislation that expanded the Pike Place Market Historical District to include the Showbox property for at least the next ten months. (The property is owned by strip-club magnate Roger Forbes, who also owns the Deja Vu Showgirls club down the street; the Showbox itself is operated by a tenant, AEG Live, which describes itself as “the world’s second largest presenter of live music and entertainment events.”)  Initially, Sawant proposed a dramatic expansion of the historical district that would have effectively downzoned a dozen existing properties and forced property owners to obtain permission from a historical commission before renting to new tenants or making any visible changes to their property, but that was eventually scaled back and only the Showbox property got the “historical” designation. The new rules last for ten months—long enough for the city to decide whether to extend them and make the two-story Showbox building a permanent part of Pike Place Market, and long enough (or so the “Save the Showbox” crowd hoped) to convince Onni to go away and for supporters to put together a plan to preserve the space as a music venue in perpetuity.

That brings us to the present, and the lawsuit filed last week. The suit claims that the city council violated the owners’ property rights by passing a spot rezone that reduces its value by tens of millions of dollars; that they violated  the state’s 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; that the inclusion of the Showbox in a historical district designed to protect farmers and small-scale artisans is “the definition of arbitrary and capricious”; and that the “illegal spot zone” violates the city’s comprehensive plan, which calls for more density in places like downtown Seattle.  “The Decision [to expand the historical district to include just the Showbox] bears no rational relationship to promoting a legitimate public interest; it singles a small area out of a larger area for use and development restrictions that are not in accordance with similarly situated neighboring properties and not in accordance with the City’s Comprehensive Plan.”

The fairness doctrine allows council members to have a general opinion on land use questions; it doesn’t allow them to go into a land use discussion with their minds made up, and it certainly doesn’t allow them to actively campaign on behalf of one side or another in a quasi-judicial land use debate.

The argument that the council’s vote to put the Showbox in the Market historical district represents a spot rezone—that is, that it effectively turns a property with a 440-foot height limit into one with a limit of just two stories, the height of the existing Showbox building— is critical. If the court accepts this argument, they may also be inclined to accept the property owners’ argument that council members, particularly Sawant, violated the law by discussing the decision outside the public eye, and participated in a campaign in favor of the rezone. The fairness doctrine allows council members to have a general opinion on land use questions; it doesn’t allow them to go into a land use discussion with their minds made up, and it certainly doesn’t allow them to actively campaign on behalf of one side or another in a quasi-judicial land use debate. (If this argument sounds vaguely familiar, you probably remember it from Strippergate—a scandal that contributed to the defeat of two city council members who violated quasi-judicial rules when they discussed, and voted for, a rezone to allow strip-club owner Frank Colicurcio to expand the parking lot at his Rick’s strip club in North Seattle. In an odd turn of fate, Showbox property owner Forbes purchased Rick’s from Colacurcio in 2011.)

The lawsuit echoes a point that I have made numerous times at The C for Crank about basing policy on the wishes of a vocal few—in this case, music fans and industry employees who sign petitions and hold signs that say “Save the Showbox” and write songs bemoaning the inexorable fact that cities change:  “When politicians cater to populist calls – whether those calls are ‘lock her up,’ ‘build the wall’ ‘ban Muslims,’ or ‘Save the Showbox’ – civil and other rights are placed at risk. Populism, and politicians’ desires to appease their loudest constituents and generate headlines must, however, yield to the rule of law. Luckily for those who prefer protection of civil, constitutional and property rights, the courts exist to preserve, protect and enforce the rule of law.”  Indeed, the suit argues that the council caved to public pressure in order “to enhance its political popularity” and “enacted an unlawful ordinance that was intended to, and did, place all the burden of providing a public music venue to City residents onto the shoulders of a private landowner. The ordinance greatly and instantly devalued the property and will scuttle its redevelopment unless the City’s improper spot down zone is declared unlawful.”

The owners of the Showbox property don’t mention race and social justice in their lawsuit. But had they done so, I suspect that the city would have trouble making the case that protecting the Showbox, a venue where tickets typically start at $35 once all of AEG’s “convenience” and other fees are included, advances its race and social justice goals. Particularly when doing so means foregoing $5 million to build housing for people who can’t afford $35 concert tickets.

The complaint also takes a swing at the notion—which several council members, particularly Lisa Herbold, made explicit during the debate over the historical designation—that the squat, repeatedly remodeled Showbox building itself is “historic.” The city, the lawsuit notes, hired a consultant to consider the Showbox for historic landmark status in 2007, but found that the building lacked “any redeeming landmark features.” This, the complaint continues, “was partly because the building had been remodeled during its many uses in the past including as a comedy stage, an adult entertainment arcade, a furniture store and a bingo hall.” When Showbox preservationists talk about “silencing the ghosts of Seattle’s history,” as one of the venue’s bartenders did last month, is that the history they’re thinking of?

One final note. Ordinarily, when the city makes land-use decisions, it puts those decisions through a rigorous Race and Social Justice Initiative (RSJI) analysis to determine what impacts the decision might have, positive or negative, on marginalized and low-income communities. As far as I can tell, the city did no such analysis when it decided to effectively downzone the Showbox block—a decision that also meant foregoing about $5 million in funding for affordable housing under MHA. The owners of the Showbox property don’t mention race and social justice in their lawsuit, perhaps because such goals are hard to quantify (and harder still in the absence of the usual analysis). But had they done so, I suspect that the city would have trouble making the case that protecting the Showbox, a venue where tickets typically start at $35 once all of AEG’s “convenience” and other fees are included, advances its race and social justice goals. Particularly when doing so means foregoing $5 million to build housing for people who can’t afford $35 concert tickets.

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Affordability, City Council, Historic Preservation, housing, Mayor Durkan, zoning

The J Is for Judge: Save the Past, Jeopardize the Future

It turns out it wasn’t a NIMBY uprising in Seattle’s single-family neighborhoods that successfully blitzed new housing development in Seattle. Embraced by our supposedly progressive council and Mayor Jenny Durkan, a reactionary stand in the heart of downtown Seattle to save a two-story music venue, the Showbox, has set the precedent for successful self-centered obstructionism.

In 2017, the city council passed a series of six neighborhood upzones: five in densely populated commercial/residential Urban Centers  including downtown, South Lake Union, Chinatown International District, Uptown,  and the University District, and one in a  Residential Urban Village, 23rd & Union-Jackson, a less dense but still bustling multifamily combo residential/commercial zone. The unanimous council votes to upzone these multifamily, transit-rich neighborhoods were mostly embraced by neighborhood groups—most notably on 23rd, where community relations with the city had initially been tense.

The upzones, under a policy known as MHA (Mandatory Housing Affordability), tied new development to building affordable housing, trading increased density for affordable housing requirements; MHA has a goal of creating 6,000 affordable units in 10 years. Any developer that builds in these upzoned neighborhoods  has to either make a commensurate payment into a city affordable housing fund or build a corresponding amount of affordable housing on site.

What I didn’t expect was that a pro-housing, pro-density urban center like downtown, where the upzone is already on the books, would turn out to be the Seattle NIMBYs’ Battle of Yorktown.

Following up this year, the city turned to a comprehensive upzone in Seattle’s remaining Urban Centers and Urban Villages, multifamily areas of varying density ranging from the rest of the city’s more dense Urban Centers like Northgate and Capitol Hill to Residential Urban Villages such as Rainier Beach and Crown Hill. This larger rezone, which ultimately includes 27 neighborhoods, also encompasses additional multi-family and commercial zones on the outskirts of the city’s single-family zones. The 27 upzones would slightly expand ten of the Urban Center and Urban Village zones. The result: About six percent of the adjacent SFZs, where only detached single-family housing is currently allowed, would be rezoned into slightly denser Residential Small Lot zones, Lowrise zones, and Neighborhood Commercial zones, adding what pro-housing urbanists call “Missing Middle” housing—small-scale developments that fit in seamlessly with single-family housing.

Like the original six hub urban center upzones, the broader upzones all came with MHA requirements to build or fund affordable housing.

Given that SFZs take up a lopsided 65 percent of the city’s developable land, rezoning a slender six percent of the SFZs for multifamily housing seems more than reasonable, especially at a time when Seattle isn’t building enough housing to keep up with our dramatic population growth.

However, the upzones have stalled: A coalition of appellants representing single family zones are currently fighting the upzone in front of the city hearing examiner. And it drags on and on.

Despite the welcoming “In this House” signs that are ubiquitous throughout Seattle’s SFZs, the foot-stomping intransigence from exclusive single-family neighborhoods against adding housing to their suburban-style enclaves is hardly surprising. Seattle’s liberal hypocrisy rolls that way.

What I didn’t expect was that a pro-housing, pro-density urban center like downtown— where the upzone is already on the books—would turn out to be the Seattle NIMBYs’ Battle of Yorktown. The fight to “Save the Showbox” has stalled one of the first building proposals to come under the new progressive MHA policy—Vancouver developer Onni’s proposal to replace the Showbox with a 440-foot, 442-unit apartment tower with ground-level retail that would have raised $5 million in one fell swoop for affordable housing.

In yet another city hall 180, the council voted yesterday to turn last year’s unanimous yea vote to upzone downtown, into a unanimous nay vote for Rock and Roll NIMBYism. The city council voted this week to renege on downtown MHA by making the two-story Showbox off-limits.

I guess I shouldn’t be surprised by this either. With its 2018 Pearl Jam mania, Seattle idles in nostalgia.

I understand that unchecked hyper development comes with serious problems like gentrification. But the way to fight gentrification isn’t through symbolic battles on behalf of specific, popular businesses. The way to fight gentrification is by having integrated development and land-use policies that keep affordable housing in the mix in the first place. With the MHA upzones, the city had that very policy in place.

Now, by caving to the first reactionary uprising against the exact policy outcomes MHA was enacted to produce—more housing and more affordable housing—the council has shown that crowd politics informed by nostalgia and resistance-to-change have trumped (ahem) a well-calibrated policy.

I feel like Johnny Rotten walking around London in 1975 in his “I Hate Pink Floyd” T-shirt when I say this: ¯\_(ツ)_/¯ the Showbox.

Someone who supports saving the Showbox asked me if I would ever take the side of historic preservation over development. Of course. I visited the reclaimed Lorraine Motel in Memphis earlier this year. American History. Amazing. But arts venues with cool marquees are hardly a rare breed; the Moore, the Paramount, the Egyptian, and the Neptune all come to mind. And there’s plenty of great places to see music in Seattle. I’ve been to a ton of great shows already this year—DoNormaal and Nightspace (Kremwerk), Umami Goddess (Vermillion), Serpent With Feet (Barboza), Wayne Horvitz (the Royal Room), Lorde (Key Arena), Liz Phair and Lisa Prank (the Crocodile), Stas Thee Boss (Chop Suey), Mortuary Drape (The Highline), Mourn and Chastity (Barboza), Orpheus and Eurydice (Seattle Opera Studios).

But when it comes to stopping legal development that includes $5 million for affordable housing  because you want to save a club whose historic value is as omnipresent as 90s nostalgia? You lost me at NIMBY.

Affordability, Arts, City Council, Density, Development, Historic Preservation, housing, land use

The Showbox Is “Saved.” Now What?

When I lived in Austin, back in the 1990s, there was this bar called the Cedar Door that kept getting displaced by development. The proprietors just couldn’t catch a break: As soon as they opened in a new location, it seemed, some developer would come along and announce a new condo or apartment or office building and the Cedar Door had to go. By the time I lived in Austin, the bar’s peripatetic nature was part of local lore: The bar that never stays in one place for long.

Let me tell you another story: There was this club, also in Austin , called Liberty Lunch, where I saw some of the most memorable shows of my young adult life, including the Pixies, Failure, Clutch, and a bunch of other bands whose names are lost to time. In the late ’90s, despite a concerted local effort to save it, Liberty Lunch shut down—a victim, it was said, of development run amok. (You can still visit it virtually, on the “I Still Miss Liberty Lunch” Facebook page.) Many of the bands I saw there are now on their second or third reunion tours, playing at $30-and-up venues like the Showbox.

A final story, from Seattle. A beloved cultural institution, the Museum of History and Industry, was forced from its location in Montlake by the need to rebuild the floating bridge across SR-520. The old bridge was, in a way, itself a victim of development: Massive suburban growth that state highway planners said necessitated a wider bridge to carry commuters swiftly back and forth across Lake Washington. The museum struck a deal with the city and state, and opened in a new (and arguably more apt location): South Lake Union, where old history rubs shoulders with new industry.

What did the city council vote for today, when it voted to “Save the Showbox” by making it part of the Pike Place Market Historical District?  To the mostly middle-aged crowd who testified about the value of the venue, the vote was about the musical heritage and cultural future of Seattle. To the Pike Place Market preservationists who see the Showbox debate as an opportunity to relitigate the city’s decision to upzone First Avenue to allow taller buildings—an upzone that today’s vote partly reversed—the decision was about protecting the “entrance to the market” from towers near the Market, which they have long opposed. (The Showbox, notably, was not included in the Pike Place Market historical district in 1971, when the district was created after a lengthy citizens’ effort to save the market from development, even though it had been around, at that point, for more than four decades.) To residents of the Newmark Tower condos on Second Avenue, the vote was an opportunity to preserve their views of Elliott Bay and limit traffic in the alley behind their building. “Past city councils shouldn’t have upzoned,” attorney and Newmark condo owner Dan Merkle said. He wore a “Save the Showbox” T-shirt. (Opponents of theoretical “luxury apartments,” in one of the day’s many ironies, were in league with the owners of actual luxury condos.) And to density advocates like council member Teresa Mosqueda, it was a symbolic vote to “protect” one downtown block that came with an implicit bargain: If people who showed up over the past week to “Save the Showbox” really want to preserve cultural institutions and build affordable housing, she said, they need to show up for future debates about development, too—to advocate for more density all over the city.

The council has shown that they will overturn major land-use policy decisions that took years to develop in response to concerted public pressure from vocal interest groups, without regard for whether doing so violates the spirit of prior land-use policies that resulted from lengthy, and often hard-fought, public processes. This week, it was the Showbox. Next month, it could be  an industrial business that stands in the way of a bike lane, or a single-family house whose preservation could prevent the development of dense housing in a neighborhood.

The legislation the council adopted today adds the Showbox property, owned by strip-club magnate Roger Forbes, to the Pike Place Market Historical District for the next ten months so the city can “review the historic significance ot the Showbox theater, study the relationship between the Showbox theater and the Pike Place Market, consider amendments to the Pike Place Market Historical District Design Guidelines related to the Showbox, draft legislation, conduct outreach to stakeholders, and conduct State Environmental Policy Act (SEPA) Review on permanent expansion of the Historical District, as appropriate.” In plain English, that means that the city has effectively downzoned the block on which the Showbox is located from about 450 feet to its current height of two stories on an “emergency” basis while the city decides whether to include the Showbox in the district permanently. Inclusion in the historical district means that any alterations to the building—from the tenants who occupy the first floor to the lighting and signage—will have to be approved by the historical commission that oversees the market. (Proponents have argued that this will force the Showbox to remain a music venue in perpetuity, but the city cannot legally force a private business to stay in business or renew its lease.) For now, the legislation effectively precludes demolition of the Showbox and prevents the building’s owner, Roger Forbes, from selling the property to Onni Group, the developer that wants to build a 44-story apartment tower on the site.

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In theory, the legislation provides some breathing room for the city to work out a deal to preserve the physical structure that houses the Showbox—a two-story unreinforced masonry building—while allowing Onni to build its tower on top of the venue. However, as Mosqueda acknowledged after the “this vote today makes a negotiated resolution more challenging.” Even if Onni and Forbes want to reach such a resolution, building a new tower on top of the Showbox itself may not be possible, and could be prohibitively expensive if it is. At today’s meeting, council members repeatedly cited a project built by developer Kevin Daniels that saved the now 111-year-old First United Methodist Church sanctuary on Fifth and Marion as an example of preservation that allowed a new development to co-exist with a historical structure. But that development did not involve actually placing a new building on top of the church—and it cost an estimated $40 million. (Daniels has said that from a purely financial perspective, he regrets saving the church building.)

In any case, neither Onni nor Forbes has indicated that they plan to spend tens of millions of dollars to “save” a music venue in which neither party is actually invested, in any sense of that word. Moreover, the uncertainty created by today’s legislation may lead Onni to abandon the project. That could “save” the Showbox until its lease ends in two years, but does not guarantee its continued existence; AEG, the multinational company that operates the Showbox, could decide to leave, or Forbes, the building’s owner, could decline to renew their lease or raise the rent to a  prohibitive level.

Would anyone who was at city hall today declare victory if the Showbox was “saved,” only to become a new Tom Douglas restaurant, or an actual museum? Or if it ends up sitting empty, the victim of economic forces that can’t be altered by a million signatures on change.org petitions?

Or Forbes could sue. On Sunday, the law firm that represents Forbes, Byrnes Keller Cromwell, sent a letter to city attorney Pete Holmes and council president Bruce Harrell noting that Forbes has the legal right to redevelop the Showbox property as a high-rise; in fact, the lawyers note, the city implicitly endorsed its redevelopment when it upzoned the land in both 2006 and 2016, when the zoning capacity of downtown Seattle was increased as part of the city’s Mandatory Housing Affordability program. “That zoning and up-zoning were and are entirely consistent with the City’s high-density urban plan and goal of promoting affordable housing,” the letter says. (If Onni does not move forward with its development, the city will  forego about $5 million that would have gone toward affordable housing under MHA.)

The letter continues:

As you are aware, property owners, the City and the courts all have respective rights, obligations and oversight related to the significant economic interests that arise from real property and re-zoning issues. Just this last Thursday, the State Supreme Court unanimously issued an opinion on land use rights in a case where a property owner was not given a fair opportunity to use a property. [That case upheld a decision finding that Thurston County illegally delayed the sale of a piece of land owned by the Port of Tacoma and awarded total damages of $12 million].  Of course, you know that case does not stand alone, but is part of a larger body of state and federal law addressing these kinds of significant economic and constitutional issues.

It is important for all parties involved to be heard fairly and accorded consideration and for rights to be recognized and protected. Process should be afforded and both procedural and substantive fairness observed.  We understand that a more considered  approach may be underway for the Monday, August 13, 2018, City Council meeting at which these issues are to be considered, and we sincerely appreciate a path toward working through the issues in a way that avoids unnecessary entanglements, missteps and interference with contractual and other expectations of the parties involved.

Whatever ultimately happens with the Showbox, the ramifications of today’s vote will be far-reaching. Although council member Mosqueda told me after the vote that she did not intend for the decision to set any kind of precedent, that’s exactly what it does. The council has shown that they will overturn major land-use policy decisions that took years to develop in response to concerted public pressure from vocal interest groups, without regard for whether doing so violates the spirit of prior land-use policies that resulted from lengthy, and often hard-fought, public processes. This week, it was the Showbox. Next month, it could be  an industrial business that stands in the way of a bike lane, or a single-family house whose preservation could prevent the development of dense housing in a neighborhood. For all Mosqueda’s optimism that the “Save the Showbox” crowd will turn out in the future to advocate for density all over the city, it’s important to note that council members who often advocate against density, including Lisa Herbold and Sawant, see the same people as an opportunity to advance their own anti-development agendas.

At today’s meeting, while Herbold was talking about the need to save the physical structure of the Showbox, rather than preserving its spirit by rebuilding or revamping the venue, someone shouted from the back. “The soul is in the walls, it’s in the stage, it’s in the floor!” But he was wrong.  The Showbox isn’t the Lincoln Memorial, or La Sagrada Familia, or the Louvre. Its cultural relevance comes not from the squat, architecturally unremarkable building in which it is located, but from the music that has been made, and continues to be made, inside its walls. And cultural institutions sometimes move, or are rebuilt, or even close only to reopen later in a different form. (Moe’s, a once-shuttered institution whose rebirth as Neumos helped to spur the reinvention of the Pike-Pine corridor as a nightlife district, springs to mind.) Would anyone who was at city hall today declare victory if the Showbox was “saved,” only to become a new Tom Douglas restaurant, or an actual museum? Or if it ends up sitting empty, the victim of economic forces that can’t be altered by a million signatures on change.org petitions? Twenty years ago, Liberty Lunch was replaced by a generic office building. But Austin remained a music destination, largely on the strength of the new venues that emerged on the other side of town after the Lunch shut down. Cities rarely grow and improve by preserving their culture in amber. Almost always, they do so by letting things change.

Arts, City Council, Development, Historic Preservation, Seattle magazine

Saving the Showbox Just Took a Big Step Forward, But What’s Next?

This story originally appeared on Seattle magazine’s website.

Efforts to “save the Showbox” theater moved forward Wednesday, though not in quite the way council member Kshama Sawant envisioned when she proposed legislation on Monday to expand the Pike Place Market Historical District on a two-year “interim” basis to include more than a dozen buildings on the east side of First Avenue, including the Showbox.

On Wednesday, council members Teresa Mosqueda, Lisa Herbold, and Sally Bagshaw whittled down Sawant’s legislation to expand the historic district to encompass just one new property—the Showbox—and for just ten months, rather than two years. The amended legislation passed the committee unanimously, and could go before the full council on Monday.

The council got its first look at the plan to “Save the Showbox” by expanding the Market on Monday when Sawant introduced a proposal to increase the size of the Pike Place Market Historical District to include all the properties on the east side of First Avenue downtown between Virginia and Union Streets—the largest expansion in the history of the district, which was expanded twice in the 1980s.

Sawant said the council needed to pass her proposal quickly—just one week after it was introduced—in order to halt Vancouver, B.C.-based developer Onni from building a 44-story apartment tower on the site.

By Monday afternoon, dozens of Showbox supporters had mobilized at city hall, waving signs (distributed by Sawant’s staff) that read “Save the Showbox” and “Music for People, not Profits for Onni Group” and testifying about the importance of preserving the historic venue, which first opened as a dance hall in 1939. Since then, it has served as a bingo hall, a party room, an adult “amusement arcade,” a storage facility, and a live music venue with a rich history.

Supporters’ comments focused on the Showbox’s value as a music venue, but the legislation Sawant proposed would have had implications far beyond the Showbox property, rendering brand-new buildings like the Thompson Hotel on First and Stewart as well as vacant parking lots, a 1985 condo tower, and the Deja Vu strip club “historic” by virtue of their inclusion in the historical district.

Buildings in the district, which was established in 1971 to protect small farmers, artisans, and retail businesses that were threatened by plans to bulldoze the Market, are subject to a long list of restrictions that regulate everything from which tenants are allowed to the color of first-floor interior walls to the wattage of exterior lighting and signage. (More on what the new strictures would have meant for the buildings on the east side of First Avenue here.)

Sawant said it was urgent to rush her proposal through in just one week, without the usual process that a large expansion of a historic district would ordinarily require, because Onni was scheduled to vest the project “in about three weeks’ time,” which would make it subject only to current land use laws, which allow it to build an apartment building on First Avenue.

“I’m convinced that there’s a reason to rush,” Sawant said Monday. “I don’t think we should be misleading community members into thinking they have the time” to “save the Showbox” in a more deliberate way, she added. Historic designation would give “breathing room to the community and prevent Onni’s luxury project from becoming a fait accompli.”

Things moved quickly from there. Sawant’s office sent out emails calling on her supporters to “pack city hall” before a Wednesday meeting of the city council’s finance and neighborhoods committee to “force the Council to listen to our movement’s demands.”

By Wednesday afternoon, when the committee met, city council members Teresa Mosqueda and Sally Bagshaw had countered with amendments to Sawant’s proposal that would reduce the size of the historical district expansion area to eliminate everything but only the Showbox property and reduce the amount of time the new controls would be in place from two years to ten months.

This amended legislation passed out of Bagshaw’s committee unanimously on Wednesday and headed to full council, where it could be heard on Monday.

On Wednesday, the timeline to pass the legislation was officially moved more than two months into the future, when Nathan Torgelson, director of the Seattle Department of Construction and Inspections, told council members that Onni will not submit its application for early design guidance, a necessary step in the approval process, until October 17, meaning the absolute earliest the project could vest is October 18.

That gives the council some breathing room to come up with some kind of agreement to preserve the Showbox as a music venue in a number of ways: 1) by permanently expanding the historic district to include the building, 2) by landmarking the building and arranging for a nonprofit to purchase and run it—possibly, as council member Lisa Herbold suggested, as part of the city’s existing historic theater district, or 3) by coming up with a compromise in which Onni agrees to reopen the Showbox in a new space on the ground floor of its new development, preserving any significant interior features of the current concert hall.

This proposed new expansion of the Pike Place Market Historic District to include the Showbox would give the Pike Place Market Historical Commission broad authority over both the physical building and its use, down to the choice of food and beverage vendors and any interior alterations or improvements. “If someone is selling bags in the market and they want to sell shoes instead, the commission reviews that,” Heather McAuliffe, the city’s coordinator for the historic district, told the council committee Wednesday.

Landmarking the building, in contrast, would preserve just the structure, without dictating how it could be used. Late on Wednesday, the Seattle Times reported that three historic preservation groups— Historic Seattle, Vanishing Seattle and Friends of Historic Belltown—had filed an application to landmark the venue, potentially circumventing a parallel application from Onni. The developer announced plans to seek landmark status for the building shortly after announcing plans to replace it with a 44-story apartment tower last month—a fairly routine practice for developers that want to expedite approval of their permits—but apparently had not yet filed its application with the city.

The third option—save the Showbox, demolish the building—would likely present the fewest legal issues for the city.

Landmarking the architecturally unremarkable two-story building where the Showbox is located or expanding the Pike Place Market Historical District to include the Showbox would amount to a selective downzone in a part of town where the city just adopted new zoning guidelines designed to encourage more housing construction. Barring Onni from building its apartment tower would also mean foregoing the approximately $5 million the developer would be required to contribute to affordable housing under those new guidelines.

That would likely lead to a protracted legal battle involving the property owner, Roger Forbes, who also owns Deja Vu, and Onni, who could argue that taking away the value represented by 44 stories of development potential amounts to a taking of private property. A compromise that would allow the Showbox to stay on First Avenue but does not restrict the owner’s ability to sell to Onni or Onni’s ability to build apartments could circumvent that potential legal dispute.

Building a new tower on top of the Showbox itself likely isn’t an option. The building, which is made of unreinforced masonry and covers basically the entire property on which it sits, would have to undergo a massive seismic upgrade to support a 44-story tower, if such an upgrade is even possible. Developer Kevin Daniels did a less significant seismic upgrade to preserve the now 111-year-old First United Methodist Church building on Fifth and Marion, which did not involve placing a building on top of the church, and that cost an estimated $40 million.

Of course, no historic district or landmark designation can force the Showbox to remain the Showbox. Forbes, the owner, could decide to sell the building. AEG Live, the subsidiary of Los Angeles-based Anschutz Entertainment Group that operates the Showbox, could decide not to renew its lease, which expires in 2021. Forbes could also decline to renew AEG’s lease.

Neither Forbes nor AEG responded to requests for comment.

If the building became an official part of the Market, the market historical commission could stipulate that it had to remain a music venue in perpetuity—and the building’s owners could fail to find a suitable tenant. There are many scenarios, in other words, in which the Showbox might close even after a successful effort to “save” it.

It was unclear after Wednesday’s vote whether the council would vote on the Showbox legislation on Monday, as Sawant originally proposed, or wait a few weeks to let discussions with Onni play out.

Council member Mike O’Brien, who initially supported Sawant’s proposal to move quickly because he believed the council only had three weeks to act, said he now believes “it would be prudent” to look at other models for saving the Showbox before going with the plan Sawant proposed. Council member Lorena Gonzalez, meanwhile, said that whatever happens, she plans to draft a resolution “that lays out in clearer form what we expect to occur over the next nine to 12 months.”

The Showbox isn’t “saved” just yet. But it might have just bought some time, and gained a few new routes to salvation.