Tag: Executive Pacific Hotel

Records Shed Light On How Much City Overpaid for “First Responder” Hotel

By Erica C. Barnett

The Executive Pacific Hotel in downtown Seattle is currently serving as a temporary shelter for vulnerable homeless people, under an $3.1 million contract with the Low-Income Housing Institute. (The remainder of the contract, $5.2 million, is to rent the hotel itself for about 10 months.)

But before it was a shelter, as PubliCola has reported, the hotel had another contract with the city, providing isolation and quarantine rooms for first responders, health care workers, and a handful of homeless service providers).

The three-month contract benefited the hotel to an almost comical degree: Instead of renting out rooms individually, the city agreed to pay the hotel’s owner, Vancouver-based Executive Hotels and Resorts, full price for all 155 rooms.

Now, records the city provided in response to a PubliCola records request shed additional light on how much the city (and, ultimately, the federal government) overpaid for the rooms. In one representative four-week period, from March 23 to April 21, the hotel was occupied for a total of 127 room-nights (a room-night is one room occupied for one night), at a cost to the city of $332,440, or the equivalent of $2,618 per room, per night. Rooms at Executive Hotels’ flagship hotel in downtown Vancouver are currently available on Expedia for $144 a night.

Overall, the city ended up spending about $1.9 million on the initial, three-month contract for all 155 rooms. We’ve reported before on how empty the hotel was during the early going; now, the newly available invoices reveal that the hotel remained largely empty throughout the three-month contract, peaking at an rate of no more than a dozen or so occupied rooms per night.

The invoices do not reveal precisely how many people were in the hotel during any specific period; however, they do show how many meals the city paid for in each billing period, which can serve as a proxy for the number of rooms that were occupied in any period and for how many nights.

But the city wasn’t just paying for empty rooms; it was paying an increasing price for those rooms every month.

In the early days after the hotel opened, the city paid a flat $45 fee for three meals a day, so the number of meal payments equaled the number of guests. Later, when it became clear that not everyone was eating all three meals at the hotel, the city started paying $15 per meal instead.

In April, when the city was paying for three meals a day, the total number of room-nights was 188—an average of about six people per night, or the equivalent of just over one night of a totally full hotel.

The number of meals increased slightly in May, when the city started paying for each meal individually instead of all three at once, to 611 meals total; however, even assuming that each of these meals represents a person who ate just one meal on-site per day, that still works out to fewer than 20 guests per night, or about four nights during which the hotel was full.

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But the city wasn’t just paying for empty rooms; it was paying an increasing price for those rooms every month. For the month of April, for example, the city paid the Executive Pacific $332,440 for the hotel’s 155 rooms; a month later, the exact same rooms cost the city $556,708. The reason? The rates increased as summer approached, in keeping with the start of the usual tourist season. Of course, there were no tourists in 2020. According to the contract, signed last March, the monthly price for the entire hotel ranges from $222,000 in January to $794,000 in August.

In August, one month after the city paid the final $851,918 invoice on its three-month contract, the hotel submitted two new bills for the use of its rooms by Seattle police and fire personnel. The total bill: $1,580.

According to Melissa Mixon, a spokeswoman for the city’s department of Finance and Administrative Services (FAS), “the contract was negotiated and agreed to at the very beginning of the pandemic when the City had limited information about the duration, level of impact, and longevity of the pandemic” and when dozens of city workers had contracted COVID-19.

In August, one month after the city paid the final $851,918 invoice on its three-month contract, the hotel submitted two new bills for the use of its rooms by Seattle police and fire personnel. Between July 12 and August 8, three people stayed in the hotel. The total bill: $1,580.

Mixon said the city had no idea at the time when the pandemic would end or if tourism would recover quickly. The Executive Pacific, she said, was the only hotel that was “willing to partner” with the city that also had an appropriate HVAC system and individual restrooms so that people who had been exposed to COVID could quarantine if necessary.

Given the stigma around COVID-19 when the outbreak was still unfolding, not very many hotels were interested in partnering,” Mixon said. “Given the still unknown properties of the virus and public sentiment at the start of the pandemic, by agreeing to house COVID positive or exposed individuals we recognized the hotel’s ability to rent rooms to regular guests was severely impacted both by potential liability for an unknown duration.”

The final indication of how much the city overpaid for the Executive Pacific is what happened after the initial contract ended and the city began contracting with the hotel for individual rooms. In August, one month after the city paid the final $851,918 invoice on its three-month contract, the hotel submitted two new bills for the use of its rooms by Seattle police and fire personnel. Between July 12 and August 8, three people stayed in the hotel. The total bill: $1,580.

Morning Fizz: “Unlikely Alliance” Narrative Falls Flat, City’s Hotel Shelters Aren’t ADA Accessible; and State Moves to Fund Eviction Prevention

1. The Seattle press corps seems to have settled on the narrative that Compassion Seattle, the campaign to amend the city’s constitution to require the city to fund shelter and housing and keep parks and public spaces “clear”) (without providing any new funding for either purpose) is the result of an “unlikely alliance” between groups that don’t usually agree.

A quick look at the two supposed “sides”: of this alliance—on one, the Downtown Seattle Association, a business group; on the other, a list of homeless service providers that operate downtown—quickly reveals that this “unlikely alliance” story is largely an illusion.

The service providers that are supporting the initiative have long histories of working closely with downtown businesses; the directors of both Plymouth Housing and the Chief Seattle Club, for example, is on the board of the Downtown Seattle Association, while the CEO of the DSA is on the board of the Downtown Emergency Center. The Public Defender Association, meanwhile, started its Law Enforcement Assisted Diversion program in collaboration with downtown businesses as well as the Seattle Police Department.

Another indication that Compassion Seattle is primarily a business-led effort, not one emerging from the homeless advocacy community, is the list of financial backers on the PAC’s latest fundraising email. (Political action committees are required to list their top funders on campaign literature.) They are: Downtown developer Martin Smith Inc; downtown and South Lake Union developer Vulcan; Fourth Avenue Associates LP, a large downtown real estate firm owner; and Clise Properties, which owns millions of square feet of downtown real estate; and ex-Microsoft millionaire Christopher Larson.

A quick look at the two supposed “sides”: of this alliance—on one, the Downtown Seattle Association, a business group; on the other, a list of homeless service providers that operate downtown—quickly reveals that this “unlikely alliance” story is largely an illusion.

Larson was one of the largest contributors to 2019’s People for Seattle campaign, whose incendiary attack ads made that year’s city council campaigns some of the ugliest in recent Seattle history. People for Seattle, like Compassion Seattle, was started by former city council member (and anti-panhandling crusader) Tim Burgess.

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Being fully independent means that we cover the stories we consider most interesting and newsworthy, based on our own news judgment and feedback from readers about what matters to them, not what advertisers or corporate funders want us to write about. It also means that we need your support. So if you get something out of this site, consider giving something back by kicking in a few dollars a month, or making a one-time contribution, to help us keep doing this work. If you prefer to Venmo or write a check, our Support page includes information about those options. Thank you for your ongoing readership and support.

2. Although it’s common for unsheltered people to have mobility issues—national data suggest that a very large percentage of chronically homeless people have physical disabilities—neither of the two hotels the city has belatedly opened for unsheltered people is ADA-complaint, and the larger of the two requires guests to walk up stairs to access their rooms.

King’s Inn, operated by the Chief Seattle Club, is the more accessible of the two hotels. CSC representatives said last week that they’ve reserved ground-floor rooms at the motor court-style motel for guests in wheelchairs, elders, and people with mobility impairments; although the motel’s 58 shelter rooms and bathrooms aren’t designed for wheelchairs, they don’t require guests to traverse any stairs.

This isn’t the case at the Executive Pacific—a 155-room hotel that’s accessible only by stairs and has no wheelchair-accessible rooms. (Youtuber Wheelchair Jimmy called it “a hotel to avoid at all costs if you’re in a wheelchair.”). The city of Seattle, not LIHI, selected the hotel, which LIHI director Sharon Lee notes is in a historic building. Asked why the city hasn’t provided any accessible rooms at its hotel-based shelters, Human Services Department spokesman Kevin Mundt told PubliCola, “the City is exploring options for a third hotel and is taking into consideration ADA accessibility.”

Mundt did not directly answer a question about where the city’s HOPE Team (which replaced the Navigation Team) was directing unsheltered people who would be eligible for the hotel shelters but happen to be in wheelchairs, saying only, “As with all shelter recommendations, the HOPE Team works with providers to match available shelter resources with individual service needs.”

3. On Monday, the Senate Ways and Means committee held a public hearing for HB 1277, which would add a $100 surcharge to the state’s document recording fee, which is collected by county auditors; the recording fee is the most significant source of funding for homelessness programs in the state bill. Groups representing landlords, realtors and housing advocates all support the bill. Continue reading “Morning Fizz: “Unlikely Alliance” Narrative Falls Flat, City’s Hotel Shelters Aren’t ADA Accessible; and State Moves to Fund Eviction Prevention”

Fizz: Homeless Authority Tries Again, Election Update, and a Double Standard on FEMA Funding?

Local government loves a flow chart. This one outlines the process for hiring a director for the county homelessness authority.

1. In a process that remains opaque to the public, the implementation board for the King County Regional Homelessness Authority, which includes advocates and representatives of local organizations and people with lived experience of homelessness, voted unanimously to hire New York City-based consultant Marc Dones as head of the authority. 

The decision came after a meandering discussion last week about how to move forward after the hiring committee’s first pick, Regina Cannon from C4 Innovations, turned down the position. Dones, who led the process that resulted in the authority’s current structure, was the second runner-up.

Although Cannon did not, as some on the board had suggested she might, appear before the board to explain why she didn’t take the job, she did talk to individual board members. Harold Odom, a Lived Experience Coalition member who was also on the hiring committee (which otherwise consisted mostly of representatives from Seattle, King County, and suburban cities), said Cannon told him the new CEO would need to be committed to “building community” by finding common ground among all parts of the region, and would need to have some experience with housing, not just homeless services.

To read between the lines: One issue Cannon reportedly raised when declining to take the job was that the region is extremely balkanized between Seattle and its suburbs, which often disagree with the city’s (and King County’s) approach to homelessness. This, arguably, is the problem underlying this entire project. The biggest challenge for the agency, as it always has been, will be crafting a united regional approach to homelessness that incorporates the views and preferences of the suburbs and unincorporated King County as well as Seattle. Whether this is even possible remains an open question.

Dones has not said publicly whether they will take the position, but it seems unlikely that the board would have voted unanimously to hire him without having some inkling of whether he would accept.

2. Mayor Jenny Durkan’s office has raised numerous logistical objections to requests that the city open hotel-based shelters for vulnerable unsheltered people as part of its pandemic response, claiming, among other objections, that FEMA’S documentation requirements are “onerous” and that FEMA does not provide reimbursement for any human services. As turns out, the Durkan administration did seek FEMA reimbursement for a hotel last year—one that sat mostly empty while thousands of people slept in tents or in overcrowded shelters in the early days of the pandemic.

Nonetheless, the city persisted in seeking full reimbursement for the entire, mostly empty hotel.

The hotel was the Executive Pacific Hotel downtown, and it was supposed to serve as temporary housing for first responders who needed a safe place to isolate while they helped respond to the pandemic. Instead of renting individual rooms as needed, the city leased the entire hotel—155 rooms, every night, for three months. When only 17 people stayed in the hotel, total, during the first month of the lease (averaging nine days per stay), the city expanded eligibility to other kinds of essential workers, which added another handful of previously ineligible guests.

At the time, it seemed possible that FEMA would only pay for about $325,000 of the cost of the hotel because it was mostly unused. Nonetheless, the city persisted in seeking full reimbursement for the entire, mostly empty hotel. According to a spokesperson for the city’s department of Finance and Administrative Services, the city has submitted a request for $1,931,060, “and we are awaiting approval.”

The Executive Pacific will also be the site of a hotel-based shelter the city plans to open late this month using money from a federal Emergency Solutions Grant. In the seven months after the Executive Pacific’s initial $2 million, three-month contract ran out, according to FAS, the city spent $12,641 on rooms in the same hotel—a quarter of one percent of the monthly cost.

3. This is the current list of declared candidates for mayor and city council, according to the Seattle Ethics and Elections Commission, but the final list will almost certainly include many additional names. Those could include former council member Bruce Harrell (perpetually said to be announcing soon), onetime mayoral candidate and former state legislator Jessyn Farrell (ditto), and Deputy Mayor Casey Sixkiller.

New names of note on this list include both viable candidates— activist and attorney Nikkita Oliver, who ran for mayor in 2017 and just joined the race to fill citywide position 9, being vacated by Lorena González—as well as those that merit the adjective “perennial,” such Nazi-saluting public commenter Alex Tsimerman, who has been repeatedly banned for city hall for disrupting council meetings.

Not yet on the city’s list, but certainly approaching perennial status, is North Seattle activist Kate Martin, who has registered to run for Position 8, held by Teresa Mosqueda—twice. She has also registered to run for mayor.

Martin has run for local office twice before, in 2013 and 2019. (In 2016, she ran an unsuccessful but well-funded initiative to build an elevated park next to the remains of the Alaskan Way Viaduct.) Tsimerman has run for local office in every election year since 2015.

D.C. Protest Cops Sue for Secrecy, Questions About “Shelter Surge,” and Concerns About Police Contract

Seattle Deputy Mayor Casey Sixkiller

1. Six Seattle Police Department officers who were in Washington, DC on January 6 for the “Stop the Steal” rally that preceded the attack on the US Capitol building have sued the Seattle Police Department and four individuals who filed public records requests with the department to prevent the department from disclosing their names. The six officers are currently under investigation by the Office of Police Accountability (OPA) for their potential involvement in the attack on the Capitol.

According the complaint, which the officers filed in King County Superior Court on Tuesday, the six are seeking a temporary restraining order that would stop SPD from releasing their names and unredacted personnel files. SPD and the OPA will release their names and unredacted personnel files to the public unless they receive a temporary restraining order by February 25, the officers noted in the complaint.

“It is highly inappropriate for a public employer to demand that its employees disclose their attendance at a political event, and then release the identities of any employees who attended that political event to the public,” the complaint says.

The lawsuit claims that the officers will be “targeted, harassed, subjected to violent acts or sustain other irreparable harm” if their names are made public, particularly while the OPA investigations are still ongoing.

“It is highly inappropriate for a public employer to demand that its employees disclose their attendance at a political event, and then release the identities of any employees who attended that political event to the public,” the complaint says. “Just as it would be anathema for a public employer to require its employees to disclose who they voted for in any particular election, and then disclosure that information to members of the public.”

The complaint says the officers did not take part in the Capitol attack, and that if their names come out, the officers will be “painted as ‘criminals’ or ‘extremists’ solely by virtue of their constitutionally-protected attendance at a political speech and rally.” It also argues that releasing the officers’ names may violate state law, which prohibits government agencies from disclosing records connected to ongoing investigations into violations of federal, state or local laws.

If the officers receive a temporary restraining order from the court, they will then seek a permanent injunction preventing SPD from disclosing their names in the future.

2. During a wide-ranging briefing about the hotel-based shelters Mayor Jenny Durkan announced this week, deputy mayor Casey Sixkiller fielded questions from the council about the scope of the program, who it will serve, and why the mayor’s office seems so attached to partnering with a specific hotel in downtown Seattle, the Executive Pacific Hotel. The city fully rented the same hotel at the beginning of the pandemic for first responders and, when first responders didn’t use the rooms, for nurses and other essential workers. The hotel remained almost entirely vacant for the duration of the lease, which cost the city about $4 million.

Not all of these rooms will be used as shelter.

As we reported earlier this week, the announcement confirms PubliCola’s previous reporting that Chief Seattle Club will operate a shelter and rapid rehousing program out of King’s Inn in Belltown, and LIHI and Chief Seattle Club will run a similar program out of the Executive Pacific.

Although Sixkiller echoed Durkan’s announcement that the two hotels will provide 220 rooms for people experiencing homelessness, the actual number is closer to 200, because some of the rooms at both hotels will be used for case management, live-in staff, and other purposes. That’s about 100 less than the 300 hotel rooms the city announced it would provide last October, when the estimate for the hotels to open was no later than January. The city now says both hotels will open sometime in March, more than a year after the mayor declared a COVID-19 state of emergency.

“Our goal here is sort of a ‘both, and,’ council member—both individuals who have high acuity needs as well as others.”—Deputy Mayor Casey Sixkiller

The mayor’s office has referred to the hotels as a yearlong program, but the plan includes a total of at least two months to ramp up and ramp down the programs, so the planned duration of the actual shelters is more like nine to ten months. 

The program has changed in other ways. Although the budget action appropriating city funds for the “shelter surge” explicitly said the hotel program would serve people with the greatest service needs—who happen to be the group causing the greatest “disorder” in areas like downtown and Pioneer Square—LIHI plans to serve people who can more easily transition into the rapid rehousing program that is also a key component of the mayor’s plan.

Councilmember Dan Strauss asked Sixkiller whether the program would also help “high-acuity” clients, as the deputy mayor said it would as recently as last December, when Sixkiller brought advocates from the Public Defender Association and REACH, two groups that serve high-needs unsheltered people, along with him to the council’s homelessness committee to promote the program.

“[With] all of our shelter units, we are trying to pair individuals with the housing that best meets their needs and the services that they need to be successful in making that transition from being outside and into housing and on the journey, hopefully, into permanent housing,” Sixkiller told the council yesterday, “so our goal here is sort of a ‘both, and,’ council member—both individuals who have high acuity needs as well as others.”

LIHI has indicated that at least some of the people who will move into the Executive Pacific will come from other LIHI programs; Chief Seattle Club did not return a call seeking more information about their program. Referrals will go “through” the new HOPE Team, which replaced the Navigation Team, but the exact details of how that will work and how the agencies will identify hotel clients are vague; the HOPE team does not actually do outreach, but coordinates referrals from their offices.

Sixkiller would not get into the cost of each hotel room, saying that was proprietary information until the city had inked the contracts. But a back-of-the-envelope calculation indicates that if the city spends all of the available money on these two hotels, the cost will work out to about $28,000 a bed, or around the same amount as the expansion of the JustCARE program the city rejected as too expensive.

Councilmember Lisa Herbold asked Sixkiller whether the “125 new shelter beds” the mayor announced this week were actually new. The two new tiny house villages were actually council additions to the mayor’s budget last year, and the WHEEL shelter opened earlier this month after the organization spent months pressuring the mayor’s office to allow them to open a nighttime shelter in City Hall, a plan the mayor’s office rejected. Sixkiller responded that he could get back to her about the “color of money” funding each part of the “surge,” prompting Herbold to respond, “This isn’t merely an academic exercise” about “the color of money” but a question of how many actually new beds will be available.

3. The Community Police Commission voted on Tuesday to approve a list of recommendations for Seattle’s upcoming contract negotiations with the Seattle Police Officers’ Guild (SPOG), the largest of the city’s police unions. The recommendations address both the transparency of the city’s bargaining process and the city’s priorities during bargaining.

The commission generally agreed on the transparency proposals, which included a recommendation to require the city to make public the membership of its negotiating team, its bargaining priorities, and any concessions it makes during negotiations. Commissioners also broadly supported a recommendation that negotiators try to remove the parts of the SPOG contract that allow the agreement to supersede city law; Officer Mark Mullens, the only SPD officer on the commission, was the only member to oppose that proposal.

Continue reading “D.C. Protest Cops Sue for Secrecy, Questions About “Shelter Surge,” and Concerns About Police Contract”

City Makes It Official: Chief Seattle Club, LIHI Will Run Scaled-Back Hotel Shelter Program

By Erica C. Barnett

This afternoon, the city of Seattle officially announced the details of a plan, announced last October, to use $26 million in federal Emergency Solutions Grant dollars to place unsheltered people in hotels for up to 10 months. The two hotels, as PubliCola has previously reported, are King’s Inn in Belltown and the Executive Pacific Hotel, and will be operated by the Chief Seattle Club and the Low-Income Housing Institute, respectively. The hotels are expected to start accepting clients sometime in March, more than a year after the city declared a COVID emergency. Originally

King’s Inn has 66 guest rooms; the Executive Pacific has 155. Some of those will be used for on-site case management and other purposes, so the total number of new hotel rooms will be around 200 (about 60 at King’s Inn and about 140 at the Executive Pacific), rather than the 300 the city announced last year.

According to the Seattle Human Services Department, the two hotels, combined, are supposed to move 230 people into permanent housing through rapid rehousing subsidies administered by the Chief Seattle Club and Catholic Community Services, which will serve as LIHI’s rapid rehousing provider. That number is the same as the number announced last October, when the mayor’s office first proposed the plan.

“If you really take a step back, this is actually a rapid rehousing program that has hoteling as a [component],” said Seattle City Councilmember Andrew Lewis, who heads the council’s homelessness committee and supports the hotel shelter program. “So we’re going to get a lot of value out of that 10 months.”

As we’ve reported, rapid rehousing is controversial because it rests on the assumption that unsheltered people can move quickly and seamlessly from street homelessness to paying full rent in market-rate apartments within a few months. Such programs work best for people who are fairly self-sufficient and do not have complicated physical or behavioral health needs, such as addiction or mental illness. 

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If you’re reading this, we know you’re someone who appreciates deeply sourced breaking news, features, and analysis—along with guest columns from local opinion leaders, ongoing coverage of the kind of stories that get short shrift in mainstream media, and informed, incisive opinion writing about issues that matter.

We know there are a lot of publications competing for your dollars and attention, but PubliCola truly is different. We cover Seattle and King County on a budget that is funded entirely by reader contributions—no ads, no paywalls, ever.

Being fully independent means that we cover the stories we consider most interesting and newsworthy, based on our own news judgment and feedback from readers about what matters to them, not what advertisers or corporate funders want us to write about. It also means that we need your support. So if you get something out of this site, consider giving something back by kicking in a few dollars a month, or making a one-time contribution, to help us keep doing this work. If you prefer to Venmo or write a check, our Support page includes information about those options. Thank you for your ongoing readership and support.

The mayor’s office also (re-)announced that LIHI will open up to 40 new tiny house units on Sound Transit-owned property in the University District and up to 40 at an unspecified location in North Seattle, and that WHEEL’s existing nighttime shelter, which serves about 60 women, will become a 24/7 enhanced shelter. In all, the “shelter surge” will add about 200 new temporary shelter beds and 140 permanent ones (including WHEEL’s, which opened earlier this month), rather than the 300 temporary and 125 permanent shelter beds the mayor’s office announced last year. The city council added funding for the University District tiny house village to the mayor’s proposed budget last year.

Both hotels will cost significantly more per client than the original cap of just over $17,000, although just how much more is unclear. LIHI director Sharon Lee said her agency is still negotiating with the city over the final budget. “One of the things we were concerned about was laundry and trash service, and the city said they would pay for that,” Lee said. “Our budget is getting smaller and [the city’s] is getting bigger.”

A representative from the Chief Seattle Club did not immediately return a call for comment.

The Public Defender Association, whose JustCARE program has moved about 124 people with complex behavioral health issues off the streets in Pioneer Square and the Chinatown-International District neighborhoods, was tentatively selected to operate the Executive Pacific, but HSD and the mayor’s office rejected their bid when it turned out to be much more expensive, at about $28,000 per client, than the $17,000 cap.

The PDA proposed a scattered-site hotel program that would distribute clients to different hotels with which the group has contracts, but told the city that if they were going to use the Executive Pacific, they would limit the number of clients there to 60, on the grounds that a larger group would lead to more high-needs clients on downtown streets. Continue reading “City Makes It Official: Chief Seattle Club, LIHI Will Run Scaled-Back Hotel Shelter Program”

Mayor’s Office Defends Hotel Shelter Plan as Council Pushes for Tiny Houses: UPDATED

Yep, this hotel again.

By Erica C. Barnett

UPDATE Thursday, Jan. 28, 6:30pm: The city has reportedly rejected the Public Defender Association’s plan to operate hotel rooms using the model established through its county-funded JustCare program after yesterday suggesting that the model was too expensive. The PDA’s application for the hotel-based shelter contract, which we first reported on last November, requested around $28,000 per room to pay for food, case management, and behavioral health services. That number was similar to the amount requested by another applicant for the same program, the Downtown Emergency Service Center.

According to providers, the city is seeking to cap expenditures on services at $17,000 per room, or about $5 million—a little over half what the city plans to spend on rapid rehousing subsidies for hotel-based shelter clients, many of whom will likely be people with disabling physical or behavioral health conditions. This is a developing story.

On Wednesday, Deputy Mayor Casey Sixkiller assured city council members that the mayor’s office was moving forward on schedule with plans to open 300 new hotel rooms, 125 enhanced shelter beds, and new tiny house village spaces as part of a “shelter surge” proposal announced last fall.

But the details he provided, in response to council questions about issues with the program that PubliCola reported exclusively yesterday, largely confirmed that the city is at an impasse with the providers it has chosen to run its two hotel-based shelters. The issues are financial—as we reported, at least one of the two providers has informed the city that they can’t serve high-needs homeless clients for the amount the city is willing to pay—and logistical: The hotels, the Executive Pacific downtown and King’s Inn near South Lake Union, have small rooms that lack kitchenettes, microwaves, and other amenities that would make them better suited to serve as long-term living spaces.

Asked why the city budget office (which reports to the mayor) capped the total cost of services for each hotel unit so low—at $17,000 a year, although Sixkiller erroneously cited a slightly higher number—Sixkiller said that the service providers knew what they were getting into when they responded to the request for qualifications with proposals. Besides, he added, the Downtown Emergency Service Center has been running a hotel in Renton (a hotel, he hastened to add, that the city has supported financially) for less than $19,000 per bed, and that hotel serves some of the highest-need clients in the region.

“I realize that there may be other service providers that have been providing a service that, in some cases, is three or four times higher than [$17,000 per room], but when we look at the longest-serving organization [DESC], that was our ballpark.” — Deputy Mayor Casey Sixkiller

“When we just look at the services column, we have been able to really zero in on what works,” Sixkiller said. “I realize that there may be other service providers that have been providing a service that, in some cases, is three or four times higher than that, but when we look at the longest-serving organization [DESC], that was our ballpark.” Getting more specific, he cited costs of “$100,000 a room” for another, unnamed hotel shelter provider.

Council member Teresa Mosqueda countered that one reason DESC’s costs are lower is that they aren’t able to pay staffers a living wage, resulting in high turnover. “I don’t want to use as a benchmark something that is too low due to the city outsourcing and under resourcing these services for far too long,” Mosqueda said. Mosqueda also noted that the city rejected DESC’s proposal because it was “nonresponsive,” in that it would have moved people already in shelter at Exhibition Hall to a hotel, freeing up more shelter space at Exhibition Hall.

Sixkiller’s reference was clearly to the Public Defender Association, which since last year has run a King County-funded program called JustCare that moves people from encampments to rooms in hotels around the region. The PDA’s proposal for the shelter surge program, which is one of two the city accepted (the other was from Chief Seattle Club), is for an expansion of JustCare, which includes behavioral health care and 24/7 wraparound services for its high-needs clients.

And the high figure Sixkiller cited was apparently extrapolated from just the second month of the program, when it was ramping up, hiring new staff, and moving people indoors on an emergency basis; the program includes intensive wraparound services similar to what clients would receive in permanent supportive housing, which is beyond the scope of the city’s proposed hotel program.

The PDA’s actual proposal requested around $28,000 per bed—not the “$100,000 a room” Sixkiller cited.

As it turns out, DESC submitted its own application for the hotel-based shelter program. The application, according to DESC director Daniel Malone, priced each hotel room at around $25,500 a year.

As for DESC’s purported ability to provide hotel services on a much tighter budget of around $18,000 a year (still higher than the city’s $17,000 cap? As it turns out, DESC actually submitted its own application for the hotel-based shelter program. The application, according to DESC director Daniel Malone, priced each hotel room at around $25,500 a year, right in line with what other providers such as the PDA said they needed to operate hotel-based shelters in the city.

“The thing about the Renton situation is that there are a number of costs involved with that operation that the county has picked up directly” that DESC doesn’t have to factor into its contract, such as meals and utilities, Malone said. “I’m guessing that the city is relying on… a cost profile for what we’re doing at the Red Lion that is not reflective of all the costs involved” in running the Renton shelter.

The Low-Income Housing Institute, which operates eight tiny-house villages around the city, also applied for the hotel contract. LIHI’s director, Sharon Lee, said she never heard back from the city on that application or LIHI’s application to provide the 125 enhanced shelter beds.

As PubliCola reported yesterday, the city’s plan is to invest about twice as much—$9 million—in short-term rapid rehousing subsidies as they are on services at the hotels.

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Council members asked for a progress update on tiny house villages. Sixkiller said the city added 95 tiny house units last year, and hopes to add another 120 this year, although only one site, on Sound Transit-owned land in the University District, has been identified. (Sixkiller said the mayor’s office was “doing a deep analysis” of two additional sites “that I’m not prepared to talk about right now.”) When Durkan’s became mayor, she vowed to build 1,000 new tiny houses in her first year. More than three years later, there are fewer than 300.

Andrew Lewis, the chair of the homelessness committee, rolled out a plan this week, which he’s calling “It Takes A Village,” to create up to 12 new tiny house villages citywide, using a combination of funding the council allocated for tiny houses last year (about $4 million) and another $7.2 million in private funding, some of which the city has already secured. The private dollars would pay for one-time capital costs to set up the new villages; the rest of the money, and additional ongoing funds from the city budget, would pay for operations.

Image via LIHI.

Tiny house villages provide temporary, non-congregate shelter to people experiencing homelessness, and are one of the most sought-after forms of shelter, in large part because they provide more privacy than dormitory-style shelters.

Lewis told PubliCola he hopes to use the villages to fill a gap or serve a “niche” that isn’t captured by the hotel-based shelters or enhanced shelters the city hopes to add this year. “I don’t know if I’d be leaning into them quite this hard if the situation wasn’t as bad as it is,” Lewis said. “What it really comes down to for me is, it is going to be years—it is going to be years!— until we have the types of housing options at the scale required to have a measurable impact on what we’re seeing on the street, and in the meantime we need to do something” about encampments.

Right now, just two of LIHI’s tiny house villages operate on a “harm reduction” model that allows residents who are in active addiction, but “we know that HSD wants the next few villages to be for adults and couples (no minors) operated with a harm reduction model,” Lee, from LIHI, said said. The median length of time a client stays at a LIHI village is seven and a half months, according to Lee, which is more than twice as long as the 90-day “performance minimum” the city sets for authorized encampments.

City’s Hotel-Based “Shelter Surge” in Jeopardy Over Financial, Logistical Concerns

By Erica C. Barnett

The city’s plan to use federal COVID dollars to move unsheltered people to hotels, then housing, has hit a serious snag—several, actually—that could put the centerpiece of the city’s planned 2021 “shelter surge” in jeopardy.

Last year, after a bruising budget season, Deputy Mayor Casey Sixkiller and City Councilmember Andrew Lewis announced a $34 million plan to use federal Emergency Solutions Grant (COVID) grant dollars to create hundreds of new shelter beds for people experiencing homelessness, including 125 new enhanced shelter beds in traditional congregate settings and 300 hotel rooms that would be repurposed as noncongregate shelter.

According to a request for qualifications for the funding, the grant money is supposed to pay for programs that “assist those experiencing homelessness in finding safe alternatives through investment in shelters/hotels that result in permanent housing through Rapid Rehousing and Permanent Supportive Housing.” The idea is that homeless service providers will move hundreds of people out of encampments and into hotels, from which they’ll emerge on one of two tracks: Permanent supportive housing (for those who require comprehensive, 24/7 support) or market-rate apartments (for everyone else.)

The surge was also supposed to include 125 new 24/7 congregate shelter beds. So far, the city has only granted funding for the hotel-based shelters, and it’s unclear whether any agencies applied for the additional shelter funding.

The hotels were supposed to be up and running “beginning in December 2020.” None have opened, and a number of serious issues remain unresolved. The first is a $17,000-per-unit spending cap, established by the city budget office, which will limit what services and amenities are available to clients staying in the rooms. (The city is paying for the rooms themselves separately using the federal ESG funds.) The mayor’s office has said they expect the hotel units to turn over as people move rapidly through the hotel rooms and on to permanent housing, so the $17,000 cap is for each unit, not each client. 

From that money—a total of around $5 million, assuming the city eventually opens all 300 rooms—the service providers must pay for food, supplies, janitorial services, security, protective equipment, and salaries for the onsite case managers who will be charged with setting clients up for success in housing. So far, the city has offered contracts to two providers, Chief Seattle Club and the Public Defender Association, to run the hotels. The agencies have reportedly balked at this spending cap, which could make it difficult to provide the kind of high-touch services necessary to deal with the complex behavioral health issues, including addiction, that are common among people living unsheltered, especially those who are chronically homeless.

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Human Services Department spokesman Will Lemke said a typical enhanced shelter or tiny house village unit costs between $16,000 and $22,000 a year. “We are in active contract negotiations with multiple providers to operate new hotel shelter units,” Lemke said in a statement. “As expected, each provider has a different proposed approach and we are working through those details now. …Program approach and associated costs are key drivers.”

The city has set aside almost twice as much money, $9 million, for the rapid rehousing component of the program, which it has dubbed “Street to Housing.” The city has picked Catholic Community Services as its rapid rehousing provider, in addition to the Chief Seattle Club’s own rapid rehousing program. The city plans to use those funds to move 231 single hotel shelter clients into market-rate apartments and subsidize their rent for up to 12 months. As PubliCola has reported, the premise behind rapid rehousing programs is that many, perhaps most, people experiencing homelessness need only minimal assistance, including rent subsidies and financial counseling, to afford an apartment.

The people who provide rapid rehousing tend to disagree with this optimistic assessment. They say the clients who do best in rapid rehousing are the ones who have just become homeless, who are already employed or  recently lost a job, and who don’t require intensive case management or other services, such as mental health or addiction treatment. People with addiction, untreated mental illness, or other temporarily disabling conditions often need more than a short-term financial boost, but don’t require the comprehensive, long-term services offered in permanent supportive housing programs. There simply aren’t many programs for people who fall into that gap.

Another issue with the hotels the city has chosen is that the rooms are not set up for long-term residents. Neither of the two hotels the city is currently considering—King’s Inn, a block away from Amazon headquarters, and the Executive Pacific Hotel downtown—offers in-room kitchenettes or microwaves, meaning that the providers will have to either purchase microwaves so people can heat up food they bring in (impossible in the case of the Executive Pacific, whose wiring is apparently too old to withstand microwaves in every room) or pay for catering at significant expense.

Additionally, the Executive Pacific is in the middle of downtown, and offers no common area for residents to gather, making it likely that they will congregate outside and contribute to the sense of “disorder” that causes business groups and law-and-order activists to call for crackdowns. Both hotels are clearly better than nothing, but they need to be places people want to stay. It’s unclear the city is setting either up for success.

Ultimately, the question the city has to consider is this: What is the point of these new shelters, and is a program that skimps on direct services while investing lavishly in a market-based solution likely to lead to that result?

If the point is to simply create the appearance of responding to the homelessness crisis  during a global emergency that—like Durkan’s term— will have largely ended by the time the grant runs out, then limited-service shelters that spit chronically homeless people into the private market may do the trick. But if the goal is to actually move people facing complex, persistent challenges into housing where they will thrive, it will take more than a single “shelter surge,” and very likely more than a few thousand dollars a person, to get there.

The mayor’s office will provide a “Status Update on 2021 Homelessness Investments” at the city council’s Homelessness Strategies and Investments meeting today, Wednesday, at 2pm.

Morning Fizz: Downtown Hotel May House Homeless; Mayor Bullish on Homeless Agency Hiring; a Look Back at Pedersen’s Provisos

1. PubliCola has learned that the city is in conversation with the downtown Executive Pacific Hotel to provide temporary housing to hundreds of unsheltered Seattle residents using federal COVID relief dollars. The hotel is one of at least two in or near downtown Seattle that the city hopes will serve as way stations between homelessness and permanent housing. The city has pledged to fund as many as 300 hotel rooms for 10 months; the plan is to move people quickly from living on the street to either permanent supportive housing or market-rate apartments, using temporary “rapid rehousing” subsidies.

Mayor Jenny Durkan’s office would not confirm that the Executive Pacific, which has 155 rooms, is under consideration for the program. “The City is in negotiations with a number of hotels and it would be premature to announce any possible locations as that may impact those ongoing negotiations,” Durkan’s communications director, Kamaria Hightower, said. 

The city contracted with the Executive Pacific early in the pandemic to provide rooms for first responders. As PubliCola reported, most of those rooms remained vacant while shelters continued to operate at full or nearly-full capacity.

2. At a meeting of the King County Regional Homelessness Authority’s governing board last week, representatives from the Hawkins Company, a recruiting firm hired to help identify a director for the new agency, said they they expect to start “preliminary candidate screening” by early December, with a goal of narrowing the list down to between 5 and 8 candidates by the end of the year. The official application period ends in less than two weeks, on December 4.

Given the high qualifications for the position, and the challenges of running a joint city-county homelessness agency with dozens of constituent cities with competing views about homelessness, it seems likely that the Hawkins Group could face some challenges in recruiting 5 to 8 fully qualified candidates for the position. Since the city of Seattle and King County itself are the most prominent partners in the new authority, I reached out to the offices of Mayor Durkan and County Executive Dow Constantine for comment.

“We are confident The Hawkins Company will present an initial pool of five to eight qualified candidates.”—Mayor Jenny Durkan’s office

Constantine’s office did not respond. Hightower, speaking for Durkan’s office, said the mayor is “confident The Hawkins Company will present an initial pool of five to eight qualified candidates” and that Hawkins is “well on their way to the goal.” Hightower noted that Hawkins recruited the executive director for the LA Homeless Services Authority, and reminded me the “the Mayor is part of a group of decision-makers” at the county authority. However, Durkan and Constantine, as the executives of the county’s largest city (and the biggest financial contributor to the authority) and the county itself, are indisputably the most prominent of those decision makers.

3. Throughout the budget process that wraps up this afternoon, freshman city council member Alex Pedersen has promoted an anti-development agenda that will be familiar to anyone who paid attention to his 2019 campaign. And although most of the slow-growth amendments, provisos, and statements of legislative intent Pedersen proposed this year didn’t pass, it’s worth taking a look at them together to imagine what their impact would have been if they had. Collectively, Pedersen’s proposals would have placed significant new process barriers in the way of housing in Seattle, including new reporting requirements, new fees, and new regulations making it harder for land owners to remove trees on private property. 

Here are just a few of the land-use amendments Pedersen proposed as part of this year’s budget process. Except where noted, these measures did not make it into the final budget. Continue reading “Morning Fizz: Downtown Hotel May House Homeless; Mayor Bullish on Homeless Agency Hiring; a Look Back at Pedersen’s Provisos”

City Could Be On Hook for Nearly-Empty Hotel It’s Been Renting Since March

While the city and county debate whether to move people experiencing homelessness from individual rooms into mass shelters, which offer no privacy and minimal protection from airborne transmission of COVID-19, the city continued to pay for unused hotel rooms in a high-end downtown hotel through the end of June. Last Wednesday, the council learned that the city has only received a guarantee of $325,000 in federal reimbursement for the empty rooms, which were originally intended for first responders, leaving at least a $1.6 million gap.

The city rented the Executive Pacific Hotel’s 155 rooms in March, at a time when it seemed that emergency personnel responding to the COVID-19 pandemic might need a place to isolate during the crisis. When that turned out not to be the case (thanks largely to county-wide efforts that limited the number of cases), the city expanded eligibility to include health care workers, who didn’t end up needing many rooms, either. Ultimately, the hotel sat mostly empty during the city’s three-month lease, while thousands of homeless people slept outdoors or crowded into mass shelters—the city’s preferred solution for sheltering people during the crisis.

Because so few people ever stayed in the Executive Pacific Hotel, the city’s actual bill ended up being about $2 million—a sum that paid for about 12 hotel rooms a night. But budget director Ben Noble revealed Wednesday that the city could be on the hook for much of that cost, unless FEMA changes its mind about what it will reimburse.

Noble said he was hopeful that the federal government would reconsider its reimbursement, given that so many cities initially thought they would need mass hospitals and temporary housing for first responders during the early days of the pandemic.

“In terms of facilities, [the city] went out looking for a contract arrangement and that was the one they were able to find on short notice,” Noble said. “FEMA is apparently open to reconsidering the reimbursement, because as it turns out, we weren’t the only city who found itself in this situation at the time.”

Going forward, the city will be paying for the rooms it uses, rather than the cost of the entire hotel.

The larger context for the discussion about reimbursement is the fact that many cities, including San Francisco, Los Angeles, Baltimore, and New Orleans used high hotel vacancy rates as an opportunity to move people experiencing homelessness into individual rooms that offered more safety, privacy, and dignity than cots or mats in mass shelters. Mayor Jenny Durkan has resisted calls for a similar shift of resources in Seattle, preferring to re-distribute mass shelters so that people can sleep slightly further apart.

As council member Lisa Herbold noted Wednesday, the city already has a hotel/motel voucher program that could have been providing families and individuals with safe places to stay, if it had been funded adequately during the pandemic. As it was, the city didn’t have enough vouchers to offer the small number of homeless people removed from Cal Anderson Park during the city’s recent sweep of the CHOP protest zone.

“What is keeping us from boosting funding for that existing program and making those vouchers available for people who are currently in congregate-model shelters?” she asked. “I just imagine there are a lot of hotel rooms in the city that aren’t being used.”

In response, Noble pointed out the existing budget shortfall that will require about $300 million in midyear cuts.

It’s possible, perhaps likely, that the federal government would not see the wisdom in using FEMA dollars to move people into individual rooms rather than warehousing them in shelters. What’s harder to stomach is the argument that spending potentially millions of dollars on empty hotel rooms was a better use of those limited funds than filling some of those beds with people.

City-Funded Downtown Hotel Housed 12 People a Night While Thousands Slept in Tents and Crowded Shelters

In his budget presentation last week, Seattle budget director Ben Noble include a slide indicating that the city planned to spend (and seek reimbursement for) more than $3 million on hotel rooms for “essential workers,” plus $325,000 for rooms for “first responders,” during the COVID crisis. The line items represent the maximum cost to rent out the entire downtown Executive Pacific Hotel for three months.

As I’ve reported, the likely total cost is somewhat lower, because for three months, the hotel has been sitting virtually empty.

How empty? Well, about a month ago, the city was concerned enough about the fact that almost no first responders were staying in the rooms that they expanded the criteria for hotel stays to include “essential workers,” including health care workers and a handful of homeless service providers. Since then, the numbers have inched up—slightly. According to the city’s department of Finance and Administrative Services, during the three-month duration of the contract, the hotel logged 1,156 bed nights, which each represent a person occupying a room for one night. Put another way, the hotel had, on average, 12 guests per night—and 143 empty rooms.

The city could not, of course, have anticipated that the need for COVID first responders would flatten so quickly along with the curve of infections, or that so few firefighters and police would want or need to self-isolate in a downtown hotel. But the city, and Mayor Jenny Durkan, are responsible for the decision not to fill some of those vacant rooms with people experiencing homelessness, who are still sleeping on cots and mats in mass shelters while a paid-for downtown hotel sits almost empty.

Mayor Durkan, when pressed, has said that the city is paying for hotels—for example, they’re contributing to the cost of the Red Lion in Renton that the Downtown Emergency Service Center has been occupying for months. But she has doggedly resisted calls to move people from ad hoc mass shelters the city set up to respond to COVID—most of them bare-bones facilities with cots set up six feet apart—into hotels inside the city. And she even put roadblocks in front of a program that would move people from encampments to motel rooms that, like the Executive Pacific, are already paid for and sitting vacant.

The city, and Mayor Jenny Durkan, are responsible for the decision not to fill some of those vacant rooms with people experiencing homelessness, who are still sleeping on cots and mats in mass shelters while a paid-for downtown hotel sits almost empty.

I sent the mayor’s office and the Human Services Department a list of questions about the city’s long-term plans for people staying in “redistribution” shelters (temporary spaces in city-owned buildings where people can sleep six feet apart). I included a list of locations that I was especially curious about—high-volume shelters that have been moved to places like Fisher Pavilion, Exhibition Hall at Seattle Center, and the city’s community centers.

The city responded by saying, essentially, that they still haven’t determined exactly when people will be moved from the current temporary shelters, or to where. “These conversations… are underway,” HSD spokesman Will Lemke said. Lemke added that HSD is “working with Public Health, DCHS, and agency partners to develop a strategy for addressing both short and long-adjustments needed to operate the homeless response system in light of COVID-19.”

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If you think of the current shelter system as fundamentally broken, and COVID as not just a crisis to respond to but an opportunity to rethink shelter (and other systems) as a whole, then it’s disheartening that the city is still thinking in terms of “adjustments” to respond to COVID rather than thinking of the pandemic as a chance to make wholesale changes. The Red Lion offers a promising example. After it opened, residents who were used to staying in DESC’s overcrowded, dirty, chaotic downtown shelter exhibited fewer behavioral problems, got in fewer fights, and used fewer substances—simply because they had privacy, a shower they didn’t have to fight for, and some space to relax.

DESC director Daniel Malone has said he hopes the agency never has to reopen the downtown shelter, a plan that will require the agency to purchase motels for long-term use. But Lemke’s comments (which represent the perspective of the mayor’s office), and the city’s history of pouring money into a shelter system that people experiencing homelessness consider alienating, traumatizing, and inhumane, suggest that other shelters may go back largely to business as usual unless the city council, or a groundswell of political opposition to warehouse-style shelters, intervenes to push the city in a different direction..

The total cost to rent the Executive Pacific Hotel, FAS spokeswoman Melissa Mixon says, will likely be closer to $2 million rather than $3.4 million, since the hotel gave the city a break on taxes and the city did not end up paying for many meals. Empty rooms don’t eat. What’s impossible to know is how much money the city might have saved in the long run by turning those empty rooms into shelter for people experiencing homelessness and working intensely to ensure that they had a place to stay when they left. Those aren’t the kind of calculations that Seattle, as a city, is good at making.