1.The official request for proposals for developers interesting in buying the so-called Mercer Megablock—three sites that total three acres in the heart of South Lake Union—includes some revealing details about how the city is pitching itself (via JLL, its broker) to potential property buyers. Alongside standard marketing language about the city’s booming economy, growing tech base, and wealth of cultural and natural assets, the Megablock marketing materials tout the fact that Seattle has restrictive zoning and “high barriers to entry for homeownership,” along with some of the highest and fastest-rising rents in the nation, as positive assets that make the city a great place to build.
From the RFP:
This area is also one of the most dynamic real estate investment markets in the country, benefiting from a combination of strict land use planning, topographical constraints on supply, and employment growth that consistently ranks above the national average. Favorable “renter” demographics, positive job numbers, strong population projections and a low unemployment rate, together with high barriers for entry in home ownership, also position the region as a strategic market for multifamily investment gains.
What, exactly, constitutes “a strategic market for multifamily investment gains”? A pull quote in the RFP puts a finer point on it: “Housing prices have grown at the fastest rate in the country for the past 17-consecutive months. The 12.9% year-over-year growth is more than double the national growth rate. Multifamily rents increased by 3.1% year-over-year and vacancy is just 4.2%. ”
Obviously, when you put artificial constraints on housing supply (such as zoning laws that make multifamily housing illegal in most parts of a city), housing prices increase. Usually, we think of that as a bad thing, because it means that all but the wealthiest renters (and those who can afford to buy $800,000 houses) get priced out of neighborhoods near employment centers, transit, and other amenities. But the city’s marketing materials turn this idea on its head: Restrictive zoning, “high barriers” to homeownership, and spiraling rents make Seattle the perfect place to buy one of the city’s last large parcels of public land—a parcel which, if housing advocates had their way, would be used for affordable housing that might help address some of those very issues.
2. After I reported yesterday on the city’s decision to hire a mediator with the Cedar River Group to facilitate a series of conversations with groups that support and oppose a long-planned bike lane on 35th Ave. NE, architect/intrepid YIMBY Mike Eliason dug through the city’s elections website and discovered that the mediator, John Howell, has given money to both Mayor Jenny Durkan (who directed SDOT to initiate the mediation) and onetime city council candidate Jordan Royer (who, along with attorney Gabe Galanda, is representing the Save 35th Avenue NE anti-bike-lane group in mediation). Howell, who is a principal and founder of Cedar River Group, contributed $275 to Durkan last year and $250 to Royer in 2009.
Rules adopted after the passage of Initiative 122 in 2015 bar contributions from contractors who made more than $250,000 from city contracts over the last two years; according to the city’s contractor list, Cedar River Group made $399,757 from city contractors between 2016 and 2018. However, the Seattle Ethics and Elections Commission last year dismissed a similar case involving contributions from Paul Allen, who owns a large stake in City Investors (the real estate arm of Allen’s Vulcan Inc.) , concluding that restricting Allen’s ability to donate to local candidates would violate his right to free speech. The “rationale,” according to SEEC director Wayne Barnett, was that “giving a campaign contribution is protected speech under the First Amendment.” I asked Barnett if that finding might also mean that (under Citizens United, the Supreme Court ruling that unleashed unlimited political spending by corporations) that the contractor contribution restrictions themselves were unconstitutional. Barnett said that was an interesting legal question but that it hasn’t been tested (yet).
3 thoughts on “Afternoon Crank: Public Land Sale Materials Tout Restrictive Zoning, Barriers to Homeownership; Details on Bike Lane Mediator’s Campaign Contributions”
John Howell has a longtime association with the Royer family – not just as a campaign donor to partisan Jordan Royer but also as a 12-year political appointee under former Mayor Charles Royer’s administration from 1978 to 1990.
Any professional mediator worth his or her salt would offer to withdraw given this conflict of interest “that casts serious doubt on the integrity of the process”. For more information on mediator ethics, please visit to the JAMS site:
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