Category: Taxes

Gaming Out the Latest “Amazon Tax” At the Start of an Unprecedented Recession

Let’s start out by stating the obvious: Barring a miracle, the “Amazon Tax” proposed by Seattle council members Kshama Sawant and Tammy Morales will not become law in its current form. The bill, which the council will continue discussing into next month, would slap a 1.3 percent payroll tax on companies with more than $7 million in payroll expenses, raising more than $500 million a year from about 800 Seattle companies.

Sawant and Morales decided to designate the bill as an “emergency,” which makes it invulnerable to a future voter referendum; the tradeoff is that they need 7 votes for approval, plus the support of Mayor Jenny Durkan, since the city charter requires mayoral approval of all emergency legislation. In other words, even if Morales and Sawant got five other council members on board—unlikely, if comments at Wednesday’s budget committee from council members who are ordinarily sympathetic to tax-the-rich arguments are any indication—the mayor could simply let the proposal die without a formal veto. Durkan fought Sawant’s last effort to “tax Amazon,” a $275-per-employee tax on employees of companies with gross receipts of more than $20 million, and is implacably opposed to this one as well.

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There is also some question whether the proposal complies with an emergency order issued by Gov. Jay Inslee in March, and extended this week, barring public agencies from adopting or discussing legislation unless it’s “routine” or “necessary to respond to the COVID-19 outbreak and the current public health emergency.”

Despite all that, it’s still worth taking a look at the legislation, which dwarfs the “head tax” the council passed in 2018, then overturned, by a factor of more than ten. What would happen if, against all apparent odds, the bill were to pass in its current form?

In its first year, 2020, the legislation would fund cash payments of $2,000 over four months to 100,000 low-income Seattle residents to respond to the COVID crisis. (This is the part of the bill most obviously compliant with Inslee’s order). Because revenues from the tax wouldn’t be available until 2021, the bill would fund these checks by taking a short-term loan from six city funds that, according to a companion bill, have “sufficient cash” to contribute up to $50 million each. Those funds would be paid back in 2021, plus $5 million interest.

From then on, assuming all the assumptions that went into the proposal remain correct, the tax would pump more than $500 million a year into funding for “social housing” for people making between 0 and 100 percent of the Seattle median income, operational support for permanent supportive housing, and funding to implement the Green New Deal, which includes strategies like weatherization and converting buildings from gas to electric heat. The amount of funding from the tax would be less, of course, if the number of businesses spending more than $7 million annually on payroll declined because of the recession.

Even if the legislation is safe from any future referendum, it would still be subject to lawsuits, and there’s no guarantee that litigation over the tax would be resolved quickly, or in the city’s favor.

The $200 million “interfund loan” would come from six voter-approved levies and taxing districts, including the Move Seattle levy; the Families and Education Levy; the Seattle Parks District; and the Library Levy. Some of these funds do have “sufficient cash” to give up $50 million in the short term, but it’s worth taking a look at why that is, and how this might impact their ability to fund promised projects.

The Low Income Housing Fund, which receives money from the Housing Levy and payments from developers through the Mandatory Housing Affordability program, has more than $146 million on hand because property taxes have continued to flow in to fund future projects that are not yet off the ground. That money is in the city’s “bank,” but it’s already spoken for. Other funds, such as the Library Levy Fund, the Move Seattle Fund, and the Parks District Fund, have significantly less than $50 million lying around. The Parks District fund, in fact, is actually in the red; the 2020 budget makes up a $6 million shortfall with an interfund loan, to be repaid as more revenues come in. Some of these funds simply aren’t that big to begin with—the library levy, for example, is supposed to raise just over $200 million, total, over seven years,

None of that might matter if the $200 million could be repaid in just one year as proposed. But even if the legislation is safe from any future referendum, it would still be subject to lawsuits, and there’s no guarantee that litigation over the tax would be resolved quickly, or in the city’s favor. If funding from the tax didn’t come through quickly, or ever, it’s unclear how the $200 million would be repaid. If, say, the Library Levy found itself short $50 million, that could significantly impact the library’s ability to provide services promised to voters—especially as the recession eats into the city’s tax base.

There are also other interests competing for that money. As city budget director Ben Noble noted in his grim revenue forecast presentation Wednesday, the city may have to dip into some of the dedicated levy funds to pay for basic services—using the parks levy to fund basic maintenance instead of new capital projects, for example. “If the base levels of funding for which the levies were intended to be additive are no longer feasible, the question is whether it would make sense to use the levy funds for operational purposes,” Noble told the council Wednesday. Continue reading “Gaming Out the Latest “Amazon Tax” At the Start of an Unprecedented Recession”

The 2019 City Council Candidates: Andrew Lewis

Image via Andrew Lewis campaign.

This year’s council races include an unusually high number of open seats, an unprecedented amount of outside spending, and eight first-time candidates. To help voters keep track, I’m sitting down with this year’s city council contenders to talk about their records, their priorities, and what they hope to accomplish on the council.

Today: District 7 candidate Andrew Lewis. Lewis, who got his political start as campaign manager for former city council member Nick Licata’s reelection bid in 2009, now works as an assistant Seattle city attorney.

The C Is for Crank (ECB): What is a recent vote where you disagreed with the current District 7 representative, Sally Bagshaw?

Andrew Lewis (AL): This isn’t a vote, but I do think the lack of attentiveness to a replacement for the Magnolia Bridge is one where I disagreed with council member Bagshaw. I went to the town hall in March of 2018 on the Magnolia Bridge, at the church over there near Magnolia Village, and there was not a single city council member there. Council member Bagshaw should’ve been there.

There was a room full of angry people who wanted to hear a plan. You know, they understand that the bridge is falling apart, and they understand that the bridge is going to have to be decommissioned. What they wanted was, you know, what’s the action plan, where are we going to do? And what I hear from a lot of the folks that I’ve talked to out in Magnolia is there has not been strong leadership from our district council member on that issue.

ECB: You’ve talked about a “one for one replacement” of the Magnolia Bridge. What do you mean by “one for one replacement,” and is there a breaking point for you in terms of cost?

AL: I do support a one for one replacement to the bridge that will meet the same level of service that the bridge currently provides to the city. For me, it’s about the impact that [tearing down the bridge] would have on public transportation—the 265 buses use that bridge on a daily basis. As I’ve gotten out to Magnolia and talked to folks who are in some of the more renter-dominated quadrants of Magnolia, I’ve actually been very surprised that there are corners of Magnolia that have a pretty high amount of housing density, and all of those communities are extremely dependent on bus service that goes between Magnolia and downtown. It would be extremely difficult to reroute those buses onto Dravus, onto Emerson, due to a lot of limitations of those entryways to Magnolia. So that’s what builds my sense of urgency for it.

Even though I say one for one, I do think that the new bridge should have some multimodal kind of components to it. I think we should have protected bike lanes or even grade-separated bike lanes on a new Magnolia bridge. I think that we could incorporate that into a new design of the bridge.

In terms of cost, I think that a lot of districts are going to have a similar conversation. As a region, what we’re increasingly seeing is a lot of our deferred infrastructure challenges are going to cost money and we’re going to have to figure out a way to meet those obligations through some kind of long-term bonding strategy.

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ECB: The National Guard is getting ready to move out of its armory property in Interbay, freeing up land there for potential development. One idea that’s being discussed is a hybrid industrial-residential model that would include housing mixed with light industrial uses. What do you think of that proposal?

AL: Preserving industrial lands within the Ballard Interbay industrial area is super important to me. I don’t want us to lose industrial land to gentrification that we’ll never get back, especially not industrial land that abuts the water. So whenever I look at a plan to redevelop or do something to property within the [Ballard-Interbay Manufacturing and Industrial Center], I always take a really careful look at it. I would be more hesitant to encroach on land that has historically been used for some kind of maritime industrial purpose.

However, while the armory is in the BINMIC, I don’t consider it historic industrial land. It’s been an armory for decades. It’s not like we’re displacing Ballard Oil or something. This is a publicly owned armory that happens to be in an industrial area. It is also really rare that we acquire plots of land that are this large that we can play with to get some kind of public housing. I think one thing we should be looking at doing is replicating the formula that we have nailed down with Fort Lawton, which I think is excellent project. There are some people who are saying that Interbay is the next South Lake Union. My preferred vision is that it be more like Georgetown where you have areas that are carved out for housing, and that housing be workforce housing.

“I think that what often happens is there’s at least a perception that the city comes into these conversations with a proposed route already in mind, and I think that contributes to a sense of polarization and to a sense of concern amongst business owners that they weren’t consulted, that they didn’t have a hand in shaping the route.”

ECB: Was the mayor right to postpone the Fourth Avenue bike lane, and would you push for completion of that bike lane?

AL: I’m not completely familiar with what the controversies are, if the businesses and neighbors have concerns specifically about the proposed route. One thing that I think we should be doing more of is having a process about protected bike lanes where we start with a Point A and point B without a proposed route in the middle. And then we start a process with the neighborhood, with the business owners, with the community, with stakeholders, in the biking  activism community and environmental groups. And we sit down and say, we got a Point A, we got a Point B,  how are we going to connect them? I think that what often happens is there’s at least a perception that the city comes into these conversations with a proposed route already in mind, and I think that contributes to a sense of polarization and to a sense of concern amongst business owners that they weren’t consulted, that they didn’t have a hand in shaping the route. Continue reading “The 2019 City Council Candidates: Andrew Lewis”

The 2019 City Council Candidates: District 4 Candidate Shaun Scott

Image via Shaun Scott campaign

This year’s council races include an unusually high number of open seats, an unprecedented amount of outside spending, and eight first-time candidates. To help voters keep track, I’m sitting down with this year’s city council contenders to talk about their records, their priorities, and what they hope to accomplish on the council.

Today: District 4 (Northeast Seattle) candidate Shaun Scott— an activist, writer, filmmaker, and Democratic Socialists of America member running to replace Abel Pacheco, who was appointed when Rob Johnson left the council partway through his single term.

The C Is for Crank (ECB): Your opponent Alex Pedersen’s campaign has been heavily supported by People for Seattle, the political-action committee started by his former boss, Tim Burgess, and by the Seattle Metro Chamber’s PAC. Any thoughts about how to get that kind of influence out of local politics?

Shaun Scott (SS): I thought that council member Gonzalez’ legislation to reduce the influence of corporate PACs is a great first step, and I would like to, work with her if I’m elected on crafting that legislation and building the political case for it.

ECB: The legislation would impact labor as well. For example, Andrew Lewis in District 7 benefited from more than $150,000 from UNITE HERE Local 8, the New York City-based union. Are you comfortable with the fact that these reforms would impact labor as well as business?

SS: To be fair. labor also spent against us in the primary on behalf of Emily Myers’ campaign, although it was nothing on the magnitude of what we saw from the Chamber and what we’re probably going see in the general. I think that the difference is that labor, as a progressive force in the city, is going to find ways to influence and get involved with campaigns on a basis that’s more than just material. They’re going to be out canvassing, they’re going to be coming up with policy recommendations that are going to benefit a lot of people in the city. And so there are more direct avenues for labor to exercise influence in the city, whereas I think Chamber politics often do really boil down to almost a unilaterally negative form of campaigning, so that the reduction of influence vis-a-vis PACs is going to impact them a lot more and limit their influence a lot more than it will labor, which traditionally has more avenues for getting people engaged and being involved in elections.

“With a market incentive program [like HALA], as well structured as it can be, there are going to be real limits. There’s going to be a ceiling on how effectively the market is going to be able to deliver social goods of any kind.”

ECB: You’ve been a vocal supporter of density in single-family neighborhoods during this campaign, which seems like a change from your previous position; as an organizer for the Jon Grant campaign in 2017, for example, you suggested that the Housing Affordability and Livability Agenda was something of a developer giveaway. Has your position evolved?

SS: I think it’s definitely the case that a lot of HALA and a lot of [Mandatory Housing Affordability] was kind of a market incentive program. And with a market incentive program, as well structured as it can be, there are going to be real limits. There’s going to be a ceiling on how effectively the market is going to be able to deliver social goods of any kind. We’ve seen this in housing, we’ve seen this in healthcare, we’ve seen this in for-profit education. We’ve seen this in the rise of a prison industrial complex. No matter how much you do to incentivize the market to do the correct thing, there are going to be bad actors and it’s going to fail to deliver these goods in a way that is broad and accessible or able to be enjoyed by everybody. So that’s a critique of HALA. It’s part of the reason why when people ask me what I think about MHA, I will say it’s by and large something that I probably would have supported if I were on council, with a few important caveats. One of them being, if we were destroying more affordable housing than was going to be put in by a new development, how can we legitimate that?

There’s room for nuance. There’s room for having an opinion about this that says, if our goal is to get to the point where we’re providing the most housing and the most deeply affordable social housing that we can get, we have to find ways to structure the housing decisions that we make in the city so that they’re not left up completely to market forces.

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Sorry to interrupt your reading, but THIS IS IMPORTANT. The C Is for Crank is a one-person operation, supported entirely—and I mean entirely— by generous contributions from readers like you. If you enjoy the breaking news, commentary, and deep dives on issues that matter to you, please support this work by donating a few bucks a month to keep this reader-supported site going. I can’t do this work without support from readers like you. Your $5, $10, and $20 monthly subscriptions allow me to do this work as my full-time job, so please become a sustaining supporter now. If you don’t wish to become a monthly contributor, you can always make a one-time donation via PayPal, Venmo (Erica-Barnett-7) or by mailing your contribution to P.O. Box 14328, Seattle, WA 98104. Thank you for keeping The C Is for Crank going and growing. I’m truly grateful for your support.

ECB: Your position on upzoning the Ave [University Way NE], specifically, has changed. Tell me a little bit about that.

SS: So I have very strong ideas about, and a lot of historical knowledge about, why the zoning that we see in neighborhoods like District Four in particular is exclusionary and why we’re just never going to be actually serious about being a racially inclusive city or a climate leader until we change that. One of the reasons why my views on the Ave in particular have started to evolve and why I think I’m more receptive to new information about what is going on there than  maybe I was at the beginning of this race has to do with the impact that opening large, big-box stores might have on some of the small businesses that are there that are minority and people of color-owned. And, as a principle, it’s one of those things where I have to check myself and rely on community to check me to make sure that in this vision that I have for an inclusive city, we’re not doing things to undercut that by actually displacing people that have had a hard go of actually gaining a foothold in the city.

The second part of it is it would be a different story if all of the housing that we were talking about building, or more than what is currently going to go there, was actually going to be workforce housing. If that was built into the way that the upzone was going to happen, I’d gladly go to some of these neighborhoods and absorb the criticism from people who are saying, ‘You’re changing the character of our neighborhood.’ What you’re saying is the character of the neighborhood means a lot less to me than people having a place to live. 

I’m not running to be a CEO of city government or to be a on the board of a development firm. We’re talking about what decisions the city has and what power the city has over our housing market. We can have all the conversations that we want about what it would look like to leave our housing decisions up to the private market. We know that right now and in the coming years, that’s not going to be enough for people that need housing.

Continue reading “The 2019 City Council Candidates: District 4 Candidate Shaun Scott”

The 2019 City Council Candidates: District 1 Incumbent Lisa Herbold

Image via Lisa Herbold campaign

This year’s council races include an unusually high number of open seats, an unprecedented amount of outside spending, and eight first-time candidates. To help voters keep track, I’m sitting down with this year’s city council contenders to talk about their records, their priorities, and what they hope to accomplish on the council.

Today: District 1 City Council member Lisa Herbold, who represents West Seattle and South Park.

The C Is for Crank (ECB): Because so many council members are leaving, if you’re reelected, you’ll be one of the senior members of the city council. What are some of your top priorities for a second term?

Lisa Herbold (LH): I’m interested in working with council member [Teresa] Mosqueda on the work that she plans to do on the comprehensive plan—revisiting single-family neighborhood zoning, and looking at how we can do that in a way that brings people together and doesn’t become another big wedge issue for the city. And I think it’s important to figure out a way to have those conversations that doesn’t put people into camps—either NIMBYs or urbanists. So I want to play a role in that, because I think there’s a right way of having those conversations.

For instance, [Mandatory Housing Affordability], as it relates to single-family zoning, is focused on single-family zoning only within urban villages. The planning commission has made a set of recommendations for single-family zoning outside of urban villages, and I know that council member Mosqueda is very interested in the issue. I’m really concerned that the conversation won’t be held in a way that brings people together, because it hasn’t in the past. And then there’s the whole question of neighborhood planning around our urban village strategy. She has, for instance, asked for a [racial equity toolkit] on the urban village strategies. I imagine there’s going to be some recommendations that come out of that.

I think that we should have neighborhood-based input. I’m supportive of the direction that [the Department of Neighborhoods] has moved in [toward including communities that have been traditionally excluded from neighborhood planning], but not as a replacement for some sort of geographic-based engagement. In the efforts to involve people in these conversations that haven’t historically been at the table, I think that we’ve thrown the baby out with the bathwater.

I think for instance, when you’re talking about neighborhood matching funds or the neighborhood street fund, these participatory budgeting-type programs that seek to empower community to make decisions about improvements in their communities, I’m just concerned that, in our efforts to model our values of equity, we’ve alienated people who have something to contribute to our city, who care deeply about their communities.

“I’m supportive of the direction that [the Department of Neighborhoods] has moved in, but not as a replacement for some sort of geographic-based engagement. In the efforts to involve people in these conversations that haven’t historically been at the table, I think that we’ve thrown the baby out with the bathwater.”

ECB: The mayor’s budget continues the expansion of the Navigation Team [which removes unauthorized encampments from public spaces, often with no notice or offers of services to their displaced residents.] Are you going to be pushing for changes to the team’s current model or way of doing things?

LH: I’ve been working on implementing the recommendations of the city auditor, particularly on hygiene and garbage pickup. So for instance, I helped pilot the purple bag program [which provides purple trash bags and trash pickup to some encampments], but [Seattle Public Utilities] only visits 12 sites at any given time. I believe that our need to prioritize sites for removal might be mitigated if we make it possible for people that are living unsheltered to pick up their own garbage. I know Seattle Public Utilities feels good about the work that they’re doing. And this program has been replicated in Austin.

One of the things that the city auditor is doing is mapping all of the removed encampments over the last year, to find out where people return. Maybe the locations where people return aren’t locations that are inherently dangerous. Maybe there’s some logic for why people return there. Maybe for those locations, rather than chasing them away from them, we should make it possible for people to clean them.

I’m going to be working with the campaign that Real Change is doing in March, called Everybody Poops. It comes out of the recommendations of the city auditor that we ought to have a mobile pit stop like other cities do. It’s a way of providing people with something that they need and also providing opportunities for engaging in case management services. There’s also a slate of recommendations related to hygiene that the city auditor made. We have some of our community centers that have showers that have made them available to all members of the public, whether or not you’re signed up for programs, and so one of the recommendations is to open all of them. Another recommendation is to staff a couple of the standalone bathrooms in parks. And then of course there’s making sure that our permanent Urban Rest Stops are able to find spaces.

Support The C Is for Crank
Sorry to interrupt your reading, but THIS IS IMPORTANT. The C Is for Crank is a one-person operation, supported entirely—and I mean entirely— by generous contributions from readers like you. If you enjoy the breaking news, commentary, and deep dives on issues that matter to you, please support this work by donating a few bucks a month to keep this reader-supported site going. I can’t do this work without support from readers like you. Your $5, $10, and $20 monthly subscriptions allow me to do this work as my full-time job, so please become a sustaining supporter now. If you don’t wish to become a monthly contributor, you can always make a one-time donation via PayPal, Venmo (Erica-Barnett-7) or by mailing your contribution to P.O. Box 14328, Seattle, WA 98104. Thank you for keeping The C Is for Crank going and growing. I’m truly grateful for your support.

ECB: The mayor has proposed legislation that would crack down on people renting run-down RVs to people who would otherwise be unsheltered. What do you think of the legislation as proposed? [Editor’s note: After our conversation, the council dramatically revised the legislation to add tenant relocation funding and to limit the scope of the proposal; further amendments are expected when the council takes the proposal up again after budget deliberations, which end in November]

LH: We have a way to pay tenants of rental housing that the city is shutting down under emergency order because there are life safety issues that are so severe that somebody can’t continue to live there. The city advances the relocation assistance and then they work on pursuing the landlord later. But they pay first.

So I actually see this very similar to that, depending on how it’s administered. People could say about that rental housing, ‘Well, it’s better than living unsheltered.’ Okay, but nevertheless, it is the city’s policy to not let rental housing providers exploit tenants by collecting rent and forcing them to live in places that they have refused to fix and that have significant life safety violations. That is the city’s policy. So I see this as in many ways being very consistent with that. But the thing I’m worried about is whether or not the city is going to be looking for these instances as a way to accomplish a different objective [getting RVs off the street].

Continue reading “The 2019 City Council Candidates: District 1 Incumbent Lisa Herbold”

Afternoon Crank: Mayor Vetoes Soda Tax Bill, Council Plans to Override, and Streetcar Faces New Hurdles

Image via Pixabay.

1. On Friday, as I first reported on Twitter, Mayor Durkan vetoed council legislation that creates a dedicated fund for excess revenues from the sweetened beverage tax, and stipulates that this money can only be used for new or expanded programs benefiting the low-income communities most heavily impacted by the tax.

In her veto letter, Durkan reiterated her claim that by stipulating what the tax can be spent on, the council is “cutting” funding for previously existing programs that Durkan funded last year by using revenues from the tax to supplant general-fund dollars that had previously paid for the programs and re-allocating those general fund dollars for other purposes. “I agree that the Sweetened Beverage Tax is regressive and should be used only for the purposes set forth in the adopting ordinance, and to further expand important City investments for our most vulnerable population,” Durkan wrote. “Every one of the programs funded in the adopted and endorsed budget met these requirements. Council has now changed its mind and only wants to fund new programs.”

In fact, the council’s legislation will “require that all SBT revenues be used to expand existing programs or create new programs that align with the spending guidance” (emphasis added).

“I think the veto is really more about a statement against this mayor wanting to see her executive power curbed, as opposed to the substance of the issue.” – Council member Lorena Gonzalez

At its briefing meeting this morning, the council made plans to override the mayor’s veto this coming Monday. (Overriding a mayoral veto requires a 6-vote council majority; the legislation passed 7-1, with Abel Pacheco voting “no” and Debora Juarez absent).  Because the council is about to go on its annual recess, next Monday’s meeting is the only opportunity the council will have to veto the bill within the 30-day window specified under city law.

Council president Bruce Harrell, one of seven council members who voted for the soda-tax legislation, called Durkan’s veto “just a complete waste of time,” adding, “I’m not sure of the substantive reasons to do this, other than to make us revote a vote that was not even a narrow vote.” Council member Lorena Gonzalez added, “I’m disturbed by some of the rhetoric coming out of the mayor’s office, but also her agencies,” about the impact of the legislation. “I think the veto is really more about a statement against this mayor wanting to see her executive power curbed, as opposed to the substance of the issue. … It’s clear that the sugary beverage tax has always been intended … to ensure that the dollars were going to be spect in exactly the manner that we have now indicated that they should be spent.” Continue reading “Afternoon Crank: Mayor Vetoes Soda Tax Bill, Council Plans to Override, and Streetcar Faces New Hurdles”

“We Have to Give Them Discipline,” and Other Things I Heard Moderating Three Council Candidate Forums

As I mentioned on Twitter last week, I wasn’t able to live tweet from three of the MASS Coalition-sponsored candidate forums (for city council districts 2, 4, and 7) because I was moderating them. However, I did make sure to record each forum so that folks who didn’t attend (and those who don’t have time to watch all three when the videos become available on Youtube) could catch some of the highlights.

This is absolutely not a definitive guide to where the 24 candidates who showed up for these three forums (out  stand on transportation and housing issues. Instead, it’s a selection of quotes that jumped out at me as I was moderating these forums, which give a flavor of where some of these candidates stand on a long list of questions that ranged from how they’ve tackled racial inequity to how they would address traffic violence, homelessness, and whether solowheels should be allowed in bike lanes (OK, that one was just District 4 candidate Frank Krueger).

The quotes I’ve chosen to highlight are ones that were unique in some way, either for their specificity, the fact that they made a candidate stand out in a group of candidates whose answers were all similar to one another’s, or because they suggested unique solutions to problems that every candidate in every race is grappling with. (In some cases, the answers that stood out did so because they were were off point or outrageous in some way, as you’ll see). The responses in these transcripts have been lightly edited for length and clarity.

For detailed information on each candidate, I suggest you visit their websites, which are all available on the Seattle Ethics and Elections Commission website.

District 2 (Southeast Seattle)

“I oppose redevelopment or privatization of Jefferson Golf Course. It’s part of our fabric and we need to keep it.” – Mark Solomon, running in District 2

Ari Hoffman, in response to a question about how to house people with barriers to traditional housing, such as mental illness, disabilities, or substance use disorders:

“If you look at what happened with Licton Springs and a lot of the other low-barrier encampments,  the problem is that we weren’t treating the problems. We’re allowing them to come in, bringing their problems with them. We’re not assigning them social workers, we’re not making sure that treatment’s available. If you just just bring them into housing, you’re going to have the exact same problems that they had without housing. I know this from my own personal experience with my family: If you just give them everything, that’s enabling behavior. We need to make sure that they have the treatment they need, and that they have a support system they need.”

Tammy Morales, in response to the same question:

Image result for tammy morales seattle“For those who are chronically homeless,  providing treatment and services to those people is not giving them everything. It’s actually treating some of the issues that they have, and we need to do more of that i we’re really going to talk about transitioning folks into housing that they can stabilize in. And we do that by expanding the LEAD program, which is proven to be effective at helping people get into housing permanently. The navigation teams that we have are a waste of money. It’s unconstitutional, it’s not effective, and it wastes taxpayer dollars.”

Mark Solomon, responding to a question about protecting and expanding green spaces in the South End:

“The last thing we should be doing is removing the green space that we have in our community already. I oppose redevelopment or privatization of Jefferson Golf Course. There are a lot of trees, a lot of open space. and it’s community asset. It’s part of our fabric and we need to keep it.”

Chris Peguero, on the need for safe and accessible bike facilities:

We have a Bike Master Plan, and we need to build it. I [am concerned about] the expense of building protected lanes. I think we need them, but how do we build them? There was a dramatic number that came out about how expensive it was per mile. But if there’s a better way to do that is less expensive [we should do that]..The other concern that I have is making sure that bikes are accessible to all families. I think for the most part, communities of color oftentimes don’t think of bikes as an option. Bike cultures are often very white and male. So how do we build that access?”

District 4

“[Queen Anne and Wallingford] are what they are today because of the zoning that it existed before the mandatory downzone in 1957.” – Sasha Anderson, running in District 4

Cathy Tuttle, on strategic sidewalk construction:

Image result for cathy tuttle seattle city council“About 27 percent of Seattle streets do not have sidewalks. And the reason that we can only afford to put in about 10 blocks of sidewalks a year is that they cost so much. They cost about $300,000 per block face. That means close to half a million or sometimes $1 million per block. I think that there’s a role for home zones— streets without sidewalks where we can slow streets down, where cars are guests. I see sidewalks is having a lot of embedded carbon and a lot of stormwater impact. I don’t think we need sidewalks everywhere. We need them some places. Certainly with safe routes to school, safe routes for seniors. But  there are a lot of places where sidewalks are not the answer.”

Sasha Anderson, on the need to upzone single-family neighborhoods:

“In 1957, there was a mandatory downzone in Seattle. Before that, some of our most desirable and livable neighborhoods —Queen Anne and Wallingford, which are spoken about in the Neighborhoods for All report, were a beautiful mix of single-family houses, triplexes, duplexes, multiple houses on one lot, and it worked. Those neighborhoods are what they are today because of the zoning that it existed before the mandatory downzone in 1957. I think this is so important to bring up because it just shows that we already know this type of zoning works. It is not something that is scary. It is something that makes neighborhood livable, affordable, and provides easy access to transit, and it’s something that we should return to.”

Shaun Scott, on the need for progressive taxes at the city level:

Image result for shaun scott seattle

“I’d like to see a retooled employee head tax. I would like to see the city use a real estate speculation tax, I would like to see congestion pricing. I would like to see the city dip into its bonding capacity, because long-term fiscal solvency is not really going to be worth much where we’re headed at this rate, and I’d rather have a planet that we can live on in 40 years as opposed to a credit rating that we cannot use it because the world is literally on fire.”

Joshua Newman, on the city’s policy of moving encampments from place to place:

“Fundamentally, people are living in tent encampments because they have nowhere else to go, and chasing them around to somewhere else  is just throwing good money after bad. But it’s also not compassionate to just allow our neighbors to continue to live under the freeway and people’s porches and on the side of the road. So in the near term, we need to establish FEMA- style tent camps like we do after natural disasters. And I think we need to establish them in each of the seven [council] districts around the city. After that we can start working on more permanent solutions such as the tiny homes, additional mental support, etc.”

District 7

“When I drive, nothing infuriates me more than when there’s a biker in front of me and they’re not in the bike lane.”—Daniela Lipscomb-Eng, running in District 7

Andrew Lewis, on the need to replace the Magnolia Bridge at a cost of up to $420 million (which all nine candidates who showed up for the District 7 debate supported):

“A big part of shaping the neighborhood of Magnolia is going to be maintaining that essential connection to the rest of the city. The Magnolia Bridge serves 265 Metro buses every day, it’s the biggest mass transit connection that Magnolia has to the rest of the city. As I doorbell in Magnolia, I meet a lot of renters, and in some areas, including Magnolia, they are completely dependent on the bridge. They’re the ones who would be impacted most by removing it. And I think as we start tackling these conversations about densifying Magnolia Village, densifying at 34th and Government, it makes a lot of sense to replace the bridge.”

Michael George, same question:

“We should’ve been reserving for the Magnolia Bridge for a long time. We didn’t do it. That’s on city government, not on the people of Magnolia. So we have to replace that bridge. I think the biggest opportunity to add affordable housing in the city, definitely in our district, is Interbay. We’re going to have the light rail system running through there. We can not continue to put more traffic through 15th. We are also going to need to move cars through there.  I am going to do everything I can to replace that bridge and I’m also going to do everything. I can to connect it to density in Magnolia as well as developing Interbay the way it should be, which is with a lot of affordable housing.”

Daniela Lipscomb-Eng, in response to a question about how to make biking safer and accessible to everyone:

“When I’m in my car—because I do drive, I have four young boys under the age of five—nothing infuriates me more than when there’s a biker in front of me and they’re not in the bike lane. So I’ve went to the Cascade Bike Club and I asked them why, why do people do this? And they said to me that the street cleaners do not fit on these protected bike lanes, and so they’re full of garbage, full of glass, full of needles, and they’re dirty. So let’s work with the bike clubs and let’s work with these new bike lanes that we’re putting in to ensure that the city can clean them so that if bikers are going to use them, that they’re safe.”

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Jim Pugel, same question:

“We promised the Move Seattle levy voters that we were going to get ‘X’ amount of money to advance the bike use program, and they say now that it’s too expensive, so we have to cut some. [If we’re going to do that], then we have to take the same rate or the same amount of cuts to the Rapid Rides, to the sidewalk improvements, to the bridge improvements, to everything else, at the same percentage. It’s only fair. If we don’t, then we lose trust with our voters.”

Don Harper, on how he would deal with encampments in District 1:

“I would remove them. One thing that’s happened is that we have lost contro of our city and we had an opportunity to start to correct this years ago and we just played around and we’ve been playing around with it for since Murray was elected. What I think we have to do is we’ve got to get our city back, because just in the same way we treat our children, we have to give them discipline, the same thing has to happen with [the homeless population.]”

Morning Crank: “It Is Little Wonder that Many Good People Won’t Consider Public Service.”

 

1. Learn to trust the Crank: After I reported last week that the nomination of Jason Johnson, Mayor Jenny Durkan’s pick to head the Human Services Department, was on the rocks, Durkan withdrew his name from consideration, trashing the city council in a bitter and harshly worded statement for holding up the nomination with a “never-ending confirmation process.” Durkan’s office also confirmed that they would not submit a new nominee for consideration; instead, Durkan plans to keep Johnson on as an unappointed interim director “through at least next year,” according to Durkan’s spokeswoman Chelsea Kellogg.

Durkan appointed Johnson as interim director in May 2018, and did not forward his name to the city council for permanent appointment until New Year’s Eve. As a result, Johnson served for nearly seven and a half months before Durkan officially nominated him to the position. Since then, however, Durkan has emphasized the urgency of moving his nomination through as quickly as possible.

The Council’s failure to follow its own procedures or give Jason a fair confirmation process has been harmful to the work of the Human Services Department, impaired our effort to respond to the homelessness crisis and has been deeply unfair to a person that has served this city tirelessly on one of the toughest issues facing our city, region and country,” Durkan said in the statement. “It is little wonder that many good people won’t consider public service.”

“City Council has done something remarkable: nothing. The City Council’s inaction has done a disservice to Jason, to Human Services Department employees, and to the ability of the City to focus on the crisis of homelessness.” — Statement from Mayor Jenny Durkan’s office announcing her decision to pull Jason Johnson’s nomination as head of the Human Services Department

Durkan (later echoed by the Seattle Metropolitan Chamber of Commerce) placed the blame for the length of the nomination process squarely on council member Kshama Sawant, who advocated for a new nomination process and refused to bring Johnson up for a hearing  in her human services committee. That may have been true initially, but once Johnson’s nomination was moved to a new committee, Sally Bagshaw’s Special Committee on Homelessness, it became increasingly clear that he didn’t have the votes to win confirmation. (In her statement, Durkan said that no one on the council except Sawant had “expressed publicly or to Mayor Durkan that they are opposed to Jason.” Last week, two Durkan staffers asked me to tell them which council members had expressed concerns to me about Johnson.)  

Council members raised questions in Johnson’s first confirmation hearing, on March 28, about low morale among HSD staff, particularly in the homelessness division, which he attributed to the fact that the agency is in the middle of a time of “instability” and “immense change,” including the new mayoral administration. (The fact that the city and county are planning to merge their homelessness programs into a single regional agency is also causing heartburn in the department). Some HSD employees and members of the Seattle Silence Breakers have also raised concerns about Johnson’s commitment to race and social justice, an issue that also came up at his confirmation hearing.

Council members were unavailable Monday to talk about Durkan’s decision to pull Johnson’s name from consideration. If Johnson does remain in his position through next year, he will be working with a much different council; all seven district council positions are on the ballot this year, and four incumbents are not seeking reelection.

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

2. On Monday, the council appointed its newest member to replace Rob Johnson, who resigned his District 4 (northeast Seattle) council seat seven months before the end of his term:  Abel Pacheco, currently the strategic engagement director at a University of Washington STEM program. Pacheco, who has sought a position on the council twice before (once in 2015, when he ran for the seat Johnson won, and once in 2017, when he sought appointment to a different council seat), was one of ten candidates running for the permanent District 4 position but has committed to dropping out of that race. Pacheco will chair the council’s land use and zoning committee, which will take up legislation that would make it easier to build accessory dwelling units, as well as a proposal to upzone University Way Northeast, which Johnson stripped from the Mandatory Housing Ability plan adopted last month.

3. Also Monday, the council voted to move the $219 million Libraries for All levy proposal—amended to include additional library hours, programs for kids, and outreach workers for homeless youth—to the August ballot Monday. But even before the levy plan hit the mayor’s desk, anti-tax newspaper pundits were spinning the numbers to represent the new levy as a shocking increase over 2012’s $123 million proposal. The Seattle Times reported that the original levy proposal, at $213 million, represented a “73 percent increase” over the levy adopted in 2012. On Monday, the Seattle P-I’s Joel Connelly inflated that amount to a “doubling” of the levy, a claim that would be inaccurate even if inflation and population growth did not exist, as $219 million is not twice as much as $123 million.

But inflation and population growth do exist. Since 2012, the city has grown by more than 100,000 residents, and the value of a median house has more than doubled, from $361,000 to $726,000 last year. As a result, the actual levy that’s being proposed this year—that is, the number of cents levied per $1,000 of property value—is lower than it was in the initial year of the 2012 levy.  That plan raised property taxes by 15 cents per $1,000 of assessed property value in 2013. (The actual assessment needed to raise $123 million went down in successive years as property values spiked.) The new plan raises taxes just over 12 cents per $1,000 in 2020—an amount that will also decline if property values continue their skyward trajectory.

Don’t expect to see accurate representations of property taxes in the Seattle Times or PI, though. Instead, get ready for three more months of misleading figures and tirades against “tax fatigue,” all capped off with a Times editorial urging a “no” vote on the levy in July.

Afternoon Crank: More Precise Homelessness Exit Numbers, More Library Levy Asks

1. After initially saying it would require a “700-page PowerPoint” to explain how many actual people moved from homelessness into housing last year, the city’s Human Services Department has done just that, producing numbers from 2017 and 2018 that show precisely how many households and how many individual human beings have exited from city-funded homelessness programs.

In her State of the City speech, Mayor Jenny Durkan claimed the city had “helped more than 7,400 households move out of homelessness and into permanent housing”; after I reported that this number actually accounted for exits from programs rather than “households,” resulting in duplication,  HSD’s deputy director suggested that the actual number mattered less than the trajectory; “no matter how you look at it, it’s getting better,” she said. On Tuesday, at a meeting of the council’s human services committee, interim HSD director Jason Johnson confirmed another way households could be duplicated—if someone exits from a shelter with a rapid rehousing voucher, then uses the voucher until it runs out, that person counts as two “exits.”

This number is a far more precise (though still imperfect) way of looking at exits from homelessness. And it actually confirms HSD’s contention that the city’s focus on new strategies such as enhanced shelter, with case management and services, is paying off. In 2018, HSD-funded programs helped move 3,559 households, representing 5,792 individual people, into housing from homelessness. That’s an increase from 2017, when HSD-funded programs moved 3,374 households, representing 4,447 people, into housing. (The numbers in the chart HSD provided when I requested year-over-year data, below, don’t quite add up because 36 households used homeless prevention programs and, at another point in the year, were homeless and then exited from homelessness. And, as Kshama Sawant’s aide Ted Virdone confirmed ) City-funded homeless prevention programs served 71 fewer people last year than in 2017, which HSD spokeswoman Lily Rehrman attributes to the fact that six prevention programs—Chief Seattle Club Prevention, Mother Nation Prevention, Seattle Indian Health Board Prevention, St. Vincent de Paul Prevention, United Indians Prevention, and Somali Youth and Family Club (SYFC) Prevention—were new last year.

HSD’s presentation to the council committee earlier this week also showed that the while the total number of basic shelter beds declined by 296, the total number of shelter beds overall went up by 366, thanks to 662 new enhanced shelter beds—a term that, according to the city, refers to shelters with “extended or 24/7 service” that offer “many services” such as meals, storage, and case management.

2. The city council’s special library levy committee had its first evening hearing on the details of Mayor Jenny Durkan’s proposed $213 million levy renewal Thursday night, and the conversation was almost entirely free from the topic that dominated the committee’s discussion on Monday: Whether the library should do away with fines for late returns, which disproportionately impact people in the city’s most diverse and least wealthy areas.

Despite what certain radio talk-show hosts and the Seattle Times editorial board might have you believe, there was no evidence of public outrage at the idea that kids might no longer punished for failing to return their books on time. Instead, most public commenters spoke about about the importance of the library in general (one speaker, historian Paula Becker, described how important the library was as a refuge for her late son, Hunter, during his active heroin addiction) or in favor of specific programs they used, like a book club for people with sight impairment. (Council president Bruce Harrell, who suggested earlier this week that fines send an important message about civic responsibility, did get in one plug for fines as a way to pay for some of the items his colleagues have suggested adding to the proposal). The bulk of the meeting was about five proposed amendments that would increase the cost of the proposal, and other ideas that aren’t formal amendments but could add millions more to the plan.

Those amendments include:

• A proposal by council member Lorena Gonzalez to fund existing programs for kids under 4  and youth through high school with levy funds, rather than through the Seattle Library Foundation, at a cost of $4.2 million over seven years;

• An amendment by council member Mike O’Brien to keep libraries open one hour later on weeknights throughout the system (on top of the additional hours in Durkan’s proposal, which would add morning and evening hours to three branches and open four libraries on Fridays), at a cost of $6.2 million over seven years;

• An proposal by council member Teresa Mosqueda to study the feasibility of co-locating child care services at library branches, at an unknown cost;

• Another proposal by Mosqueda that would add two more security officers to the library system, bringing the total from 19 to 21, at a cost of $1.3 million over seven years; and

• A final proposal by Mosqueda to fund three more case managers and a youth services support worker from the Downtown Emergency Service Center to connect patrons experiencing homelessness to housing and services, at a cost of $2.1 million over seven years.

In addition, the council will consider adding more funding for digital materials like e-books to reflect their rising cost; adding air conditioning and/or elevators at the Columbia City, Green Lake, and University branches; funding a small new South Lake Union library branch in the new Denny Substation.

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

City council member Debora Juarez, who chairs the library committee, said the amendments “all make sense and are great, but that “we still have to be mindful that we are in levy mode; we are not in general budget mode. … We don’t want to put a poison pill where [the levy] goes down because taxpayers are not going to be comfortable” with the amount. “We’re not voting on a child care levy. We’re not voting on a public safety levy. We are voting on a library levy. So we have to keep that in mind.”

3. Learn to trust the Crank: As I first reported on Twitter yesterday, council member Juarez is King County Executive Dow Constantine’s pick to replace former council member Rob Johnson (who left the council before the end of his term for a job as the transportation planner for NHL Seattle). The King County Council will have to approve Juarez’s appointment (technically, she will represent North King County on the regional board). One question that will likely come up is whether Juarez, who fought tooth and nail for the N. 130th St. light rail station in her council district, will be able to broaden her horizons as a member of the regional Sound Transit board. Perhaps anticipating such questions, Juarez said in her announcement, “I plan on working as hard for the people of the tri-county Sound Transit service area as I do for my North Seattle district.”

Fines Are a Barrier to Access: And Other Facts About the Proposed Library Levy

City council members discussed Mayor Jenny Durkan’s proposal to renew Seattle’s library levy and increase its size from $123 million to $213 million on Monday, and proposed some possible adds of their own.

The most controversial aspect of the levy, besides its size (which council member Mike O’Brien noted is an increase of about 35 percent once population growth and inflation are accounted for—not 78 percent, as the Seattle Times has claimed) is a proposal to eliminate fines for overdue materials, which studies from other cities have shown is an effective way to ensure access for low-income residents while actually increasing the number of books and other materials that get returned.

Council staffer Asha Venkataraman explained this somewhat counterintuitive conclusion. First, she noted, fines really are a barrier to access: About one in every five library cardholders currently has a blocked account, meaning that they can’t access library materials unless they pay their fines. The areas of the city with the largest numbers of blocked accounts, as well as the highest average outstanding fines, are mostly south of I-90, in Southeast Seattle, plus parts of far north Seattle—areas with lower average incomes and more people of color. Those areas also happen to be the places where wifi and computer usage in libraries is highest (suggesting the lack of computers at home).

Second, Venkataraman explained, a San Francisco study that looked into eliminating library fines found that patrons in cities that had partially or completely eliminated fines returned materials at the same rate or slightly faster, and that circulation increased overall (which makes sense, because when people fail to return books, the number of books in the system is reduced and circulation goes down.) The study also found that a major reason people avoided going in to get their account restored was “the negative interaction of having to go and pay off fines.”

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

Council president Bruce Harrell expressed concern that eliminating fines might discourage people from doing their civic responsibility, and suggested (perhaps tongue in cheek) that if the city is going to eliminate fines, they should also eliminate fees for people who simply fail to return books, which account for about $200,000 of the $1.1 million the library system takes in annually from fines and fees. (“Some people are operating in a higher theft area than others and I don’t want them being prohibited from being able to borrow from this public asset just because they couldn’t afford to pay the book back,” Harrell said.)  Harrell also suggested that the city create a system where people who want to pay can do so, but people who don’t want to pay won’t be penalized. “I don’t understand the policy reasons for waiving millions of dollars when some people might be willing to pay,” Harrell said. The library’s revenues from fines have been steadily declining, thanks largely to the growing use of online materials. Since 2013, fine revenues have decreased by 31 percent.

Council member Kshama Sawant responded that even if payment is “voluntary,” such a system would still require people returning books to indicate that they weren’t going to pay, and why. “What’s going to happen if you introduce that kind of policy … would be a sort of implicit shaming of people who can’t pay,” Sawant said. “There are children who shouldn’t have to figure out whether their parents are able to pay or not. That just seems to put the onus on the individual families to decide what they should do.”

Council members also discussed the question—raised, most recently, in a Seattle Times editorial that argued that the city should find alternative sources to pay for library capital projects—of whether revenues from the real estate excise tax on new development, or REET, could be used to supplant a significant portion of levy funding and lower the levy ask. The Times also claimed, erroneously, that the city has “slashed” REET spending on libraries from $3.8 million in 2016 to “only $564,000 this year.” (Over the life of the proposed levy, annual REET spending would be $500,000 to $800,000 a year, according to a staff analysis.) In fact, the higher spending in 2016 (and 2017) represented a historic anomaly. According to the adopted library budgets from those years, the city spent a total of $2.3 million in REET revenues on library capital projects in 2016, and a total of $1.9 million in 2017, largely  to  fund unanticipated repairs to the downtown library, including repairs to a sinking floor. Between 2013, when the last version of the levy went into effect, and 2015, average REET spending was $593,000 a year. “Not all library needs will and can be met to the scale that is needed by simply relying on REET,” council member Lorena Gonzalez said.

Source: Council central staff memo, April 8

Council members indicated that they were interested in adding a few items to the plan, including extended weeknight hours (council member O’Brien), programs targeted at kids under 4 (Gonzalez), and adding air conditioning and elevators at the Columbia City, Greenlake, and University branches.

The council will hold its first public hearing on the levy in council chambers starting at 5:30 this Thursday, April 11.

Waterfront Tax Stalled Due to Concerns Over Security, Assessments, and Cost

Image via City of Seattle.

A version of this story first appeared at Seattle magazine’s website.

A controversial one-time tax assessment on commercial and residential property near the downtown waterfront, which was supposed to be approved before the end of this year, has been held up by protests from some of those property owners, who say the proposed $200 million tax assessment, known as a Local Improvement District (LID), is too high and should be scaled back. LIDs allow cities to impose a special tax on properties that will gain value because of improvements paid for with the tax; the city has long planned to use a LID of some size to help fund the $688 million Waterfront Seattle project. Property owners have the right to protest the tax; if owners representing more than 60 percent of the value of the land inside the LID write protest letters to the city, the LID can’t go forward.

The Seattle Times reported last week that high-profile land use attorney Jack McCullough is representing some of the large waterfront property owners in negotiations with the city, and that, according to some condo owners, the city had agreed to lower the LID to $160 million. (Condo owners, who would pay a median assessment of $2,400, payable over 20 years, represent just over 12 percent of the properties along the waterfront, where most of the land is owned by big commercial companies.)

Through conversations with property owners, city officials, and other sources familiar with the negotiations, The C Is for Crank has learned more details about the proposed deal, as well as the remaining sticking points.

The proposed total assessment of $160 million would be supplemented by additional contributions from the city of Seattle and the Friends of the Waterfront, a private nonprofit established in 2012 to raise money for and help operate and maintain the new park. The city will reportedly contribute an additional $30 million, and the Friends another $10 million, to get the total back up to $200 million. (Seattle Office of the Waterfront director Marshall Foster would not confirm the additional contribution from city tax dollars, but added, “What I can say is the strategy here is in no way to pursue funds that would otherwise be used for neighborhood parks or other facilities in the city [but] to really look at funds that are associated with the replacement of the viaduct and the parks district,” a reference to funds dedicated to the waterfront park in the citywide parks district created in 2014. That ballot measure established an annual budget of around $4 million to operate and maintain the park.

“The only discussion right now is that we will build the project, with a LID of a size that the city can complete the whole project,” says Friends executive director Heidi Hughes, “because without a significant portion of that funding, we end up with road and a wider sidewalk.” Current plans for the waterfront call for a grand, terraced “Overlook Walk” staircase leading from the new Marketfront development at Pike Place Market down to the waterfront (and onto the roof of a new Seattle Aquarium expansion); a wide new waterfront promenade flanked by protected bike lanes and hundreds of new street trees; and year-round events, including the return of Concerts at the Pier (at Pier 62).

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Another sticking point has been the budget for operations, maintenance, and—especially—security.  Friends of the Waterfront plans to supplement Seattle Police Department patrols and the city’s Law Enforcement Assisted Diversion program with its own version of the Downtown Seattle Association’s Downtown Ambassadors—essentially, private staffers who keep an eye on the park, offer information, and help people in crisis—but property owners want more assurances that the city will enforce the city’s anti-camping laws. Former mayor Charles Royer, who co-chaired the waterfront committee and supports the LID,  says that property owners are worried that “the waterfront could open and the first tents could go up the next day.”

Seattle Office of the Waterfront director Marshall Foster says the city plans to keep the new park secure and inviting through a combination of daily maintenance by parks employees, year-round programming in partnership with the Friends, the ambassadors program, and police. “Our focus is primarily on trained ambassadors and outreach staff who will be backed up as needed by SPD,” Foster says.  “This isn’t about prioritizing exclusions” from the park, he adds. However, Foster said he couldn’t confirm any details about the LID negotiations, including whether the city has committed to spending more money on security in the park.

Ivar’s CEO Bob Donegan, who served on the Central Waterfront Committee that came up with the original waterfront plan, says downtown property owners said that they “would not support the creation of this park if there is not enough budget to do four things: Program, landscape, maintain, and secure the park.” Although Donegan says that ultimately, “I think the security is going to be fine,” others involved in the negotiations say the issue remained a sticking point last week.

Former mayor Charles Royer, who co-chaired the waterfront committee and supports the LID,  says that property owners are worried that “the waterfront could open and the first tents could go up the next day.”

Another issue that has come up in the negotiations is what impact the LID assessments, which were conducted by an independent assessor, will have on their property taxes in the future. Although the LID is a one-time assessment, some property owners have expressed concern that the King County Assessor, which determines individual property values, will look at the higher LID assessments and raise their property values (and thus their annual property taxes) accordingly.  “They wanted assurances that [King County assessor] John Arthur Wilson wasn’t going to bump up their county assessments,” Donegan says. Deputy King County Assessor Al Dams says his office bases assessments on the sales prices of nearby properties, not on independent assessments like those done by Zillow or, in the case of the LID properties, Valbridge Property Advisors. However, Dams notes that “if you put a desirable amenity in a neighborhood or by a piece of property, that may drive up the values. Will the waterfront be really nice? If so, that probably will drive the values up.”

Although some condo owners have joined the protest against the LID, others say they’re happy to pay the tax. Cary Moon, the former mayoral candidate, lives in the assessment area. She says she’s “going to happily pay our assessment, because I know our building is benefiting and I know our property values are benefiting” from what she calls a “really big and ambitious and bold” waterfront proposal. Royer, too, says he’s happy to fork over his share of the LID, which he estimates will be around $24,000—or a little over $1,000 a year. “A thousand dollars a year for me to live next to the beach, with a view of the waterfront … is a fair deal,” Royer says. The negotiations are expected to continue through December, with an announcement on a deal likely sometime next month.