Tag: Amazon

Campaign Will Pay for Bagel Giveaway After All; Harrell Backs Light Rail Station that Will Inconvenience Amazon

1. After PubliCola reported on a mailer and billboards from Eltana Bagels that appeared to promote the District 1 City Council campaign of Eltana founder and president Stephen Brown, his treasurer contacted us to let us know that the campaign will reimburse Eltana approximately $33,000 for the promotion, along with a billboard in West Seattle and a June 2023 Youtube video that concludes, “Stephen Brown fixed the bagel problem in Seattle—who knows what’s next?”

The mailers, which went out shortly before ballots arrive for the August 1 primary, read, “Seattle Deserves Better… – Stephen Brown” and open to reveal the word “…Bagels!” along with an offer for free bagels valued at $25. About half the mailers went out to addresses in West Seattle, which does not have an Eltana location. (Brown says Eltana targeted people who live near grocery stores that sell the bagels).

Last week, Brown characterized the billboard and mailers—on which “Eltana” appears off to the side in much smaller font than Brown’s name—as a routine advertising expense. “The intention was to use a banal, stereotypical message as a parody—to use humor to sell bagels,” Brown told PubliCola. Similarly”This effort is not a campaign expense—it is not electoral in nature.”

Brown’s campaign decided to pay for the billboard and mailer after Seattle Ethics and Elections Commission director Wayne Barnett sent Brown a letter posing a series of questions about the promotion, including when the mailers went out and where they went, what vendors Eltana used for the ads, and how often Eltana has sent out similar mailers. Barnett also asked whether previous Eltana promotions have prominently featured Brown’s name, and requested examples of other advertising materials from Eltana over the last two years.

“As you know, all money spent to promote your candidacy must be timely reported, and is limited by your choice to participate in the Democracy Voucher Program,” Barnett wrote. “Therefore, we must resolve this issue before the Voucher Program can release any more funds to your campaign.”

The reimbursement has not showed up yet in campaign filings.

2. Transit advocates were dismayed when Mayor Bruce Harrell wrote a letter to his fellow Sound Transit board members in May suggesting the agency study alternatives that could move a future light rail station north or west of Sound Transit’s preferred alternative. The goal of considering both of these alternatives was to prevent a four-year closure of Westlake Ave. that would impact Amazon, Vulcan, and other large employers in the area. One of those alternatives, the “shifted west” option, would have eliminated the Denny station altogether.

Last week, at a meeting of the board’s system expansion committee, Harrell said he now plans to support the preferred alternative and focus on ways to mitigate the impacts of construction in the neighborhood. “I’m waiting for the ridership analysis [to see] how it affects all of this, but I [am]  leaning towards support for the DT-1 preferred alternative that will preserve the two stations in South Lake Union with a strong emphasis—again, I can’t repeat this enough—on mitigating construction impacts,” Harrell said.

During public comment, a number of representatives from South Lake Union businesses testified that closing Westlake to cars for the four-year construction period would be like signing a death warrant for the (booming) neighborhood. Dan McGrady, a longtime lobbyist for the developer Vulcan who now lobbies on behalf of PEMCO Insurance, said light rail station construction on Westlake would cause “devastation” similar to the COVID pandemic, creating a “lasting scar on the community” that “I just don’t think the community can survive.”

Sound Transit is hosting two webinars about the South Lake Union station alternatives before the full board meets again on July 27, where they will have an opportunity to pick a different preferred alternative or keep the preferred alternative on Westlake just off Denny Way.

Amazon’s Housing Fund Sends a Political Message

Sea Cow, CC BY-SA 4.0, via Wikimedia Commons

By Katie Wilson

At a press conference last month, Mayor Bruce Harrell stood at a podium and thanked Amazon for funding affordable housing in Seattle. With him stood the director of Amazon’s Housing Equity Fund and representatives of three housing development organizations led by people of color that are receiving loans or grants from Amazon totaling about $23 million: Mount Baker Housing, El Centro de la Raza, and Gardner Global, a Black-owned developer working on a mixed-use apartment project at the former site of Mount Calvary Christian Center in the Central District.

This is Amazon’s most recent disbursement from the $2 billion Amazon pledged last January for affordable housing in three of its employment hubs. Three of the projects, including the Mount Baker Village preservation project, are affordable to people earning up to 60 percent of the Seattle area median income, currently about $54,000 for a single person; Gardner Global’s development in the Central District will include units for households up to 80% of area median income.

Amazon is by far Seattle’s—and now Washington state’s—largest employer. Over the past six years, Amazon’s relationship with the city and its politics has been fraught, with dramatic tussles over taxes, heavy-handed bids to sway local elections, and tech worker protests over the company’s role in the climate crisis. Given this history, it’s worth looking more closely at Amazon’s investment in affordable housing: its scale, what it means for the recipients and the company, and its political significance.

To begin with the obvious, $23 million is not a great sacrifice for Amazon, especially considering that $15 million comes in the form of low-interest loans that will be repaid.

JumpStart brought in an impressive $248 million last year. If Amazon’s tax bill really is on the order of $124 million, then these grants amount to about one-fifteenth of that.

It’s instructive to compare the $8 million Amazon will spend on two of the projects in grants to what the company may be forking over to the city this year thanks to JumpStart Seattle, a payroll-based tax paid by the city’s largest employers that passed in 2020.

Neither Amazon nor the city will disclose that number. But back-of-the-napkin math suggests that the company could easily be responsible for over half the total revenue from the tax, given the size of its Seattle workforce and the graduated structure of the tax, whose rate rises based on company size and worker compensation. JumpStart brought in an impressive $248 million last year. If Amazon’s tax bill really is on the order of $124 million, then these grants amount to about one-fifteenth of that.

According to Seattle Councilmember Teresa Mosqueda, “$97 million from JumpStart went to the Office of Housing to be disbursed in the 2022 calendar year” to support affordable housing projects and services. Given that another large chunk of the first year’s revenue went to plug pandemic-related budget holes, she said, “we should be able to do even more next year.”

Those city funds are already enabling property acquisition and affordable housing development at least 16 sites around the city. I wish those projects and the progressive tax revenue supporting them got as many press conferences and as much media fanfare as Amazon’s housing fund has inspired.

All this is not to say that Amazon’s voluntary grants and loans are unimportant to their recipients. Cobbling together funds to build and operate affordable housing is extremely challenging. Estela Ortega, executive director of El Centro de la Raza, which received $3.5 million for an 87-unit project in Columbia City for families earning between 30 and 60 percent of area median income, says the grant is helping to close a gap caused by rapidly rising costs.

“We had a $54 million budget at the first of the year, then our contractor did a new estimate and it went up to $58 million,” Ortega said. “Amazon’s money is critical. If we had to raise another few million, we would not be breaking ground on January of 2023, which is our plan.”

This also illustrates that Amazon’s contributions, though they may be crucial, are one small part of the funding for these projects: That $3.5 million almost covers the sales tax costs for El Centro Columbia City. The project is also receiving $5 million from the state Housing Trust Fund and over $11 million from the city of Seattle, among other sources. (Interestingly, Seattle’s contribution includes over $7 million from JumpStart. If my speculative math is correct, that means Amazon may be paying as much into the project through taxes as through the grant.)

You can’t really blame Amazon’s public relations team for titling its press release—“Amazon to fund construction of 568 affordable homes in Seattle”—to the company’s best advantage, subtly implying that Amazon might be footing the entire bill. It’s less forgivable for the Seattle Times to begin its coverage the same way—“Amazon committed Thursday to providing $23 million to create and preserve nearly 600 affordable homes in Seattle”—and then make no mention at all in the rest of the piece of other funding sources or the total costs involved. The average member of the public, no expert on housing development and finance, could easily walk away with the impression that Amazon is singlehandedly gifting us 600 affordable homes.

None of this might matter, and might be considered nitpicking, if there was no larger political meaning to Amazon’s actions. But the tenor of the June press conference, with Amazon in the role of good corporate citizen, contrasted sharply enough with the fights of recent years to make one wonder. When Amazon’s housing fund and an initial round of recipients were first announced in 2021, the absence of projects in Seattle was conspicuous. Instead, $185.5 million (mostly in loans) went to projects in Bellevue, every pundit’s favorite foil to Seattle when it comes to Amazon-politics. So what does it mean that Amazon is suddenly playing so nice with its hometown? Continue reading “Amazon’s Housing Fund Sends a Political Message”

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.

Support The C Is for Crank
During this unprecedented time of crisis, your support for truly independent journalism is more critical than ever before. The C Is for Crank is a one-person operation supported entirely by contributions from readers like you.

Your $5, $10, and $20 monthly donations allow me to do this work as my full-time job. Every supporter who maintains or increases their contribution during this difficult time helps to ensure that I can keep covering the issues that matter to you, with empathy, relentlessness, and depth.

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 supporting, The C Is for Crank.

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”

Seattle’s New Campaign Finance Legislation, Explained

This story originally appeared in the South Seattle Emerald.

Seattle’s city council recently passed two significant new pieces of campaign finance legislation aimed at reducing the influence of big corporations like Amazon in local elections, with a third bill still ongoing revisions. The first bill bans contributions from “foreign-influenced” corporations; the second creates new disclosure requirements for political ads, and the third—which sponsor Lorena Gonzalez has said she will bring back once she returns from maternity leave this spring—would limit contributions to political groups to $5,000.

If you’re wondering what this means for future elections, you’re not alone. Here are the answers to some of the most common questions about the Clean Campaigns Act—starting with the big one.

Does this mean Amazon will be banned from throwing millions of dollars at the next election? 

Amazon, which helped quash efforts to tax large corporations to fund homeless services in 2018, gave nearly $1.5 million to Civic Alliance for a Sound Economy, a political action committee (PAC) run by the Seattle Metro Chamber of Commerce, last year. The contribution, which made up 60 percent of CASE’s 2019 funding, paid for ads, mail campaigns, and direct outreach to voters on behalf of “pro-business” candidates in all seven council races.

The package of legislation could limit the influence of Amazon and other big companies in two crucial ways. First, the legislation passed this month bars contributions from “foreign-influenced” companies—defined as companies of which a single foreign owner controls more than 1 percent, or where a group of foreign owners control more than 5 percent. This, as Kevin Schofield has reported at SCC Insight, would bar contributions from Amazon, Uber, and Airbnb, among others.

The second piece of legislation—the one the council hasn’t passed—would limit contributions to independent expenditure groups to $5,000, while allowing groups with a large number of small (under $100) donations to give up to $10,000 to PACs. If the contribution limit had been in place last year, Amazon wouldn’t have been the only company affected: The Chamber PAC alone received $2.24 million in contributions above the proposed new limit, an amount that dwarfs the $183,000 they received in contributions of $5,000 or less.

Support The C Is for Crank
The C Is for Crank is supported 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, ad-free site going. Your $5, $10, and $20 monthly donations 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.

Why is the council going after foreign ownership? Seems a little… Specific.

Supporters of the legislation have argued that because federal law bans direct contributions by foreign nationals, a ban on giving by “foreign-influenced” contributions closes a loophole that allows citizens of other countries to influence elections by investing in US companies, which are allowed to spend money on political campaigns.

But the real issue at play is that the infamous Citizens United Supreme Court decision, which gave corporations nearly infinite power to spend money to influence elections, leaves few avenues for governments to place limits on corporate spending. One such avenue is the ban on direct foreign contributions, which the Court has upheld. So the gamble here is that if the legislation is challenged up to the Supreme Court level, the Court will be more sympathetic to arguments about foreign influence than it would be to arguments for limiting corporate spending in general. Continue reading “Seattle’s New Campaign Finance Legislation, Explained”

Sound Transit CEO Takes Election Vacation, Amazon’s Revisionist History, Stranger May Lease from ICE Landlord, and More

1. Tuesday night’s election was a major blow to cities like Seattle and transit agencies like King County Metro and Sound Transit, which will have to drastically cut back on long-planned capital projects and eliminate bus service if the statewide Initiative 976, which eliminated funding for transportation projects across the state, hold up in court.

The Puget Sound’s regional transit agency, Sound Transit, stands to lose up to $20 billion in future funding for light rail and other projects through 2041, forcing the agency to dramatically scale back its plans to extend light rail to West Seattle, Ballard, Tacoma and Everett.

So where was Sound Transit’s director, Peter Rogoff, as the election results rolled in?

On vacation in Provence, then at a conference on global health in Rwanda, which his wife, Washington Global Health Alliance CEO Dena Morris, is attending.

Rogoff posted on social media about his trip, which began while votes were being cast in late October and is still ongoing (Rogoff will return to work on Monday).

Screen shots from Rogoff’s Facebook page. On the right: The Sound Transit CEO displays Washington Nationals regalia in Provence.

 

Geoff Patrick, a spokesman for Sound Transit, said Rogoff took the trip to France because “he has not vacationed for a while,” and said the agency was in the “very capable” hands of deputy CEO Kimberly Farley. As for the women in health conference in Rwanda, Patrick said, “this is a conference that he wanted to attend with his wife and it’s an important conference,” adding that Rogoff was “attending the conference with every confidence that the agency is being well run” in his absence.

Asked what Farley, the deputy CEO, has done to reassure Sound Transit employees about the future of the agency in light of an election that could gut its funding, eliminating many jobs, Patrick said Farley emailed everyone on staff and told them to keep focusing on their work. “There’s no impact whatsoever [from Rogoff’s absence] to the agency’s operations,” Patrick said.

Rob Gannon, the general manager of King County Metro, reportedly visited all of Metro’s work sites in person to answer employee questions; I have a call out to Metro to confirm this.

Support The C Is for Crank
The C Is for Crank is supported 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, ad-free site going. Your $5, $10, and $20 monthly donations 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.

2. Amazon, the company that either did or did not buy Tuesday night’s election (or tried, only to have it backfire), has a sponsored article in the Seattle Times extolling the “revitalization” of South Lake Union. It began as follows:

In the late 19th century, Washington state was still largely untapped wilderness and the area surrounding Lake Union was modest and sparsely populated. Immigrants from Scandinavia, Greece and Russia, as well as East Coast Americans, traveled west to live in humble workers cottages as they sought their fortunes in coal, the new railway system, and a mill.

Amazon’s characterization of Washington as “largely untapped wilderness” waiting to be civilized by immigrants from Europe is jarring in 2019, when tribal-land acknowledgements are customary at public meetings and when most people living in Seattle are at least dimly aware that the West wasn’t actually vacant when “settlers” moved in.

I have reached out to Amazon and the Seattle Times and will update this post if I get more information about who wrote the sponsored piece.

For those who want to learn more about the past and present of the tribes that existed in what is now Washington state when Europeans arrived in the mid-19th century and are still here, here are a couple of helpful articles. One is from HistoryLink. The other is from the Seattle Times.

3. Council member Mike O’Brien, who raised his hand to co-sponsor council president Bruce Harrell’s proposal to fund an app-based homeless donation system created by a for-profit company called Samaritan, now says he’s “almost certain that [a $75,000 add to fund the company] will not be in the final budget.”

Amazon’s characterization of Washington as “largely untapped wilderness” waiting to be civilized by immigrants from Europe is jarring in 2019, when tribal-land acknowledgements are customary at public meetings and when most people living in Seattle are at least dimly aware that the West wasn’t actually vacant when “settlers” moved in.

The app equips people experiencing homelessness with Bluetooth-equipped “beacons” that send out a signal notifying people with the app where the person is. An app user can then read the person’s story—along with details of their mandatory visits with caseworkers, which may include medical and other personal information—and decide whether to “invest in” the person by adding funds to an account that can be used at a list of approved businesses. People can get “needed nutrition and goods” (tech-speak for groceries, apparently) at Grocery Outlet, for example, or “coffee and treats”  at the Chocolati Cafe in the downtown library. Continue reading “Sound Transit CEO Takes Election Vacation, Amazon’s Revisionist History, Stranger May Lease from ICE Landlord, and More”

Council Members Talk Amazon in NYC: “Don’t Flinch Every Time a Corporation Flexes Its Muscles”

This story originally appeared on Seattle magazine’s website.

File:Long Island City New York May 2015 panorama 3.jpg
Image via King of Hearts; Creative Commons license

As New York City braces itself against the potential “Seattleization” of Long Island City, Queens, where Amazon recently announced it will build one of two satellite “HQ2”s, two Seattle City councilmembers arrived in New York City Monday morning with a dual message: It’s going to be every bit as bad as you imagined. And: There’s still time to prepare.

Councilmembers Teresa Mosqueda and Lisa Herbold spoke at the headquarters of the Retail, Wholesale and Department Store Union (RWDSU) Monday morning, following a succession of local elected officials and progressive activists who denounced the company. (RWDSU president Stuart Applebaum, for example, described Amazon as “one of the worst employers not just in the United States but anywhere in the world.”)

Herbold read a letter from an Amazon contractor who described a desperate, daily scramble for shifts in a job with no benefits, no job security, and no health care—just an 800 number staffed by a nurse who “will tell you to see a doctor that you can’t afford.” Her advice for New Yorkers who want to extract some benefits from Amazon, which will receive an estimated $3 billion in tax breaks for the project? Mobilize early, align with small businesses, and be prepared for Amazon to try to change the conversation.

“We simply weren’t able to counter the influence of big money on public opinion” in Seattle, Herbold said, referring to the failure of the city’s $275-per-employee “head tax,” which would have funded housing and homeless services. “In Seattle, Amazon used small businesses as a stalking horse. … You have to remind small businesses that they, too, are victims of regressive tax structures.”

After telling Seattle leaders  they would support a scaled back “compromise” version of the tax, Amazon helped fund the “No Tax on Jobs” campaign, which planned to run a referendum to overturn the measure. Eventually, the council voted to overturn the tax, with Herbold voting with the majority and Mosqueda voting no.

Mosqueda offered the head tax experience as a cautionary tale, and warned the New York activists, “Don’t be the city or the state that flinches every time a corporation flexes its muscles, threatens to move out of town, tries to say that they’re going to cut jobs or stop construction, and pulls back on investing on the very system and infrastructure that they refuse to pay into.” Amazon’s outsize presence in Seattle, Mosqueda said, has “had a dramatic impact on who can afford to live in the city,” contributing to homelessness, gentrification, and “people not being able to keep the homes that they grew up in.”

Finally, Herbold cautioned that activists should brace themselves for Amazon and its supporters to suggest that private philanthropists, not the government, should be responsible for creating an adequate social safety net. Herbold recalled that when she wrote an open letter to Amazon CEO Jeff Bezos, asking him to participate in a national conversation about how to meet workers’ basic needs in the “gig economy.” The response, she said Monday, was “basically [that we need] more philanthropy.”

“We are in a modern Gilded Era,” Herbold said. “There is no accountability for private philanthropy, and charitable gifts don’t solve infrastructure issues or inequality.”