Tag: Initiative 122

Afternoon Crank: Public Land Sale Materials Tout Restrictive Zoning, Barriers to Homeownership; Details on Bike Lane Mediator’s Campaign Contributions

1.The official request for proposals for developers interesting in buying the so-called Mercer Megablock—three sites that total three acres in the heart of South Lake Union—includes some revealing details about how the city is pitching itself (via JLL, its broker) to potential property buyers. Alongside standard marketing language about the city’s booming economy, growing tech base, and wealth of cultural and natural assets, the Megablock marketing materials tout the fact that Seattle has restrictive zoning and “high barriers to entry for homeownership,” along with some of the highest and fastest-rising rents in the nation, as positive assets that make the city a great place to build.

From the RFP:

This area is also one of the most dynamic real estate investment markets in the country, benefiting from a combination of strict land use planning, topographical constraints on supply, and employment growth that consistently ranks above the national average. Favorable “renter” demographics, positive job numbers, strong population projections and a low unemployment rate, together with high barriers for entry in home ownership, also position the region as a strategic market for multifamily investment gains.

 

What, exactly, constitutes “a strategic market for multifamily investment gains”? A pull quote in the RFP puts a finer point on it: “Housing prices have grown at the fastest rate in the country for the past 17-consecutive months. The 12.9% year-over-year growth is more than double the national growth rate. Multifamily rents increased by 3.1% year-over-year and vacancy is just 4.2%. ”

Obviously, when you put artificial constraints on housing supply (such as zoning laws that make multifamily housing illegal in most parts of a city), housing prices increase. Usually, we think of that as a bad thing, because it means that all but the wealthiest renters (and those who can afford to buy $800,000 houses) get priced out of neighborhoods near employment centers, transit, and other amenities. But the city’s marketing materials turn this idea on its head: Restrictive zoning, “high barriers” to homeownership, and spiraling rents make Seattle the perfect place to buy one of the city’s last large parcels of public land—a parcel which, if housing advocates had their way, would be used for affordable housing that might help address some of those very issues.

Support

2. After I reported yesterday on the city’s decision to hire a mediator with the Cedar River Group to facilitate a series of conversations  with groups that support and oppose a long-planned bike lane on 35th Ave. NE, architect/intrepid YIMBY Mike Eliason dug through the city’s elections website and discovered that the mediator, John Howell, has given money to both Mayor Jenny Durkan (who directed SDOT to initiate the mediation) and onetime city council candidate Jordan Royer (who, along with attorney Gabe Galanda, is representing the Save 35th Avenue NE anti-bike-lane group in mediation). Howell, who is a principal and founder of Cedar River Group, contributed $275 to Durkan last year and $250 to Royer in 2009.

Rules adopted after the passage of Initiative 122 in 2015 bar contributions from contractors who made more than $250,000 from city contracts over the last two years; according to the city’s contractor list, Cedar River Group made $399,757 from city contractors between 2016 and 2018. However, the Seattle Ethics and Elections Commission last year dismissed a similar case involving contributions from Paul Allen, who owns a large stake in City Investors (the real estate arm of Allen’s Vulcan Inc.) , concluding that restricting Allen’s ability to donate to local candidates would violate his right to free speech. The “rationale,” according to SEEC director Wayne Barnett, was that “giving a campaign contribution is protected speech under the First Amendment.”  I asked Barnett if that finding might also mean that (under Citizens United, the Supreme Court ruling that unleashed unlimited political spending by corporations) that the contractor contribution restrictions themselves were unconstitutional. Barnett said that was an interesting legal question but that it hasn’t been tested (yet).

 

Morning Crank: Parking Reform, Density Delay Tactics, Election Funding, and More

A look back at some of the meetings I didn’t get around to covering last week:

1. Last week, as the city council’s Planning, Land Use, and Zoning committee began to discuss legislation that would overhaul parking requirements for new development around the city, council member Lisa Herbold argued that the city should do a more extensive study of parking demand before adopting parking reforms that could result in developments with less parking per unit. A 2012 King County survey of 95 existing buildings Seattle concluded that about 35 percent of parking spaces sit vacant at night, but Herbold wondered why the city hadn’t done a more recent survey, in the years since the council eliminated parking minimums in the densest urban areas. “If we’re going to be changing policies based on our perception of our success. I think it ‘s just helpful to have data about unused parking in buildings where we’ve been doing this for a while,” Herbold said. A council staffer countered that doing so would require the city to seek permission from landlords to get inside their garages in the middle of the night, and suggested that the data probably wouldn’t be much different than it was five years ago. According to the Seattle Department of Construction and Inspections (SDCI), the average apartment has 0.72 parking spaces, and the average demand for parking ranges from 0.3 to 0.8 parking spaces per unit.

Herbold also questioned the city’s conclusion that between 40 and 48 percent of Seattle renters do not own cars, citing a statistic showing that 77 percent of people living in multifamily units own cars, until a city staffer pointed out that that data was regionwide. And, in a letter to SDCI director Nathan Torgelson that was included in last week’s committee materials, she questioned whether rents would actually go down if parking was “unbundled” from rent, meaning that renters without cars could not be forced to pay for parking spaces they will never use, and suggested that “most parking is unbundled,” a conclusion Torgelson said wasn’t accurate. “[D]ata from 2017 indicate that in the region about 50% of apartment buildings… have parking bundled into the costs of rents,” Torgelson wrote—a number that is higher in the southern half of the city, an area that  includes Herbold’s West Seattle district.

The legislation would also change the definition of “frequent transit service” (one measure that determines where apartments may be built without parking) to an average frequency taken by measuring actual arrival times over an hour and ten minutes. Currently, if a bus is supposed to arrive every 15 minutes but it arrives one minute late once an hour, it doesn’t count as “frequent” enough to reduce or eliminate parking requirements; the new measure would average actual arrivals over time, to account for the fact that buses, like cars, sometimes get stuck in traffic.

The PLUZ committee will hold a public hearing on the parking reform proposals on February 21.

2. Reducing parking requirements for new buildings is one key element of the Housing Affordability and Livability Agenda, a plan to add housing, including affordable housing, across the city. Another cornerstone of HALA is a new requirement called Mandatory Housing Affordability, which requires developers of multifamily housing to include units affordable for people making less than 60 percent of the Seattle-area median income, or to pay into a fund to build affordable units elsewhere. A group calling itself SCALE (the Seattle Coalition for Affordability, Livability, and Equity) has sued to force the city into a longer, more drawn-out environmental review process to assess the impact of MHA, and a representative from the group, longtime Lake City neighborhood activist Sarajane Siegfriedt, gave a progress report to the Phinney Ridge Community Council last Tuesday.

Never has a room full of white North Seattle homeowners (most of them over 50, which I point out not to be ageist but as a sign of who generally has time to get super involved in neighborhood activism) acted so concerned about the fate of “large immigrant and refugee families” who would, Siegfriedt said, soon be unable to find houses for rent in Beacon Hill, Othello, and Rainier Beach if MHA went forward. “These are the only places where large immigrant families can rent,” Siegfriedt said, “so when we start talking about people living in single-family homes being exclusionary, well, that’s not true on the face of it. In fact, it’s a refuge.”

SCALE’s big objection to HALA is that it proposes allowing developers to build low-density multifamily housing in 6 percent of the nearly two-thirds of Seattle that is currently zoned exclusively for single-family housing. These upzones, which are confined to areas immediately adjacent to already dense urban villages and centers, will help accommodate some of the 120,000 people expected to move to Seattle by 2035. Siegfriedt said that by forcing the city to do individual environmental assessments for every single neighborhood that would be impacted by MHA, SCALE hopes to “delay [MHA] a year or more—and I hope we could get neighborhood planning back on the table.”

3. On Friday, the council’s finance and neighborhoods committee dug into the details of Mayor Jenny Durkan’s proposal to spend $2 million on rental vouchers for certain people at risk for becoming homeless. The program targets a subsection of people on the waiting list for Seattle Housing Authority Section 8 vouchers—federally funded housing vouchers that people can use to rent housing on the private market, as long as that housing is below the fair market rent set by HUD, currently around $1,200 for a one-bedroom apartment. The $2 million is part of $11 million the city expects to see from the sale of a piece of land in South Lake Union that currently houses the city’s radio-communications repair shop; the rest of the proceeds (which also include an early payment  into the aforementioned MHA affordable-housing fund, for a total of $13 million) will pay to design a new fire station in South Lake Union, relocate the communications shop, and for “bridge housing” in the form of tiny houses and a seventh authorized encampment, this one for chronically homeless women.

To qualify for a temporary city voucher, a person must be on the SHA waiting list, currently housed but at risk of becoming homeless, and at or below 50 percent of area median income.

To give a sense of how many people who need housing and will actually be eligible for Durkan’s Bridge to Housing funding over the two years the pilot will be underway, consider: 22,000 people entered the lottery to get on SHA’s 2017 waiting list. Of those 22,000, just 3,500 won slots on the waiting list to get a voucher sometime in the next two or three years, or fewer than 16 percent. According to the city, about 15 percent of people on the 2015 waiting list were housed when they got on the list but became homeless. Using that figure, I extrapolated that (very roughly) 525 people on the current list are housed but at risk of becoming homeless. Extrapolating further, the average assistance for a person on this list works out to $158 a month over the two years of the pilot program. I’m sure there are factors I’m not accounting for—don’t @ me—but that’s a pretty paltry sum in a city where the average one-bedroom apartment now costs around $1,800.

4. It will be another month or so before the Seattle Ethics and Elections Commission releases its first-year report on Initiative 122, the voter-approved measure that imposed new campaign contribution restrictions and authorized public campaign financing through “democracy vouchers” sent to every registered voter, but two of the unsuccessful candidates for city council Position 8 (won by Teresa Mosqueda) showed up at the commission’s meeting last Friday to offer their own takes on what worked, and didn’t, about the program. Jon Grant, who received the maximum possible amount of $300,000 in public funding for his race against Mosqueda, praised the program, calling it “an outstanding success—and you know I’m telling the truth because I’m the guy who lost.”

But Hisam Goueli, another “guy who lost” in the same race—he failed to make it through the primary—said if he ever ran again, he wouldn’t participate in the program. Goueli said he spent “several hours every day begging people to complete the process,” which required candidates to receive and have King County Elections validate at least 400 signatures, along with 400 contributions of at least $10, from registered voters, before they were eligible for public funding. Goueli said he was finally cleared to use democracy vouchers the day before the election—too late to do a mailing or a last-minute ad push. Because he had opted to participate in the democracy voucher program, Goueli was subject to smaller contribution limits—$250, as opposed to $500—than candidates who didn’t participate, but he never saw any of the benefits.

And “those people who had the most money in democracy vouchers”—Grant and Mosqueda—”still won the primary,” Goueli said. “The program is a cumbersome process, and even if you do it, it doesn’t limit big money” in the form of independent expenditures, which the city does not have the authority to restrict. Mosqueda, who was the political director at the Washington State Labor Council before joining the city council, benefited from about $200,000 in outside spending by unions.

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Morning Crank: Trump Didn’t Give Me Enough Notice

anti-keystone-council1. An anti-Keystone XL Pipeline resolution proposed by council member Kshama Sawant’s resolution would direct the city’s Department of Finance and Administrative Services to come up with a plan to avoid doing business with the 17 banks that have invested in the pipeline. On Monday,  council members said they needed more time to look at the proposal, which Sawant sent out at 9:00 Monday morning hoping for a 9:30 discussion and a 2:00 full council vote.

Sawant’s resolution directs FAS “to investigate ways to establish contracting criteria to prioritize the City’s goals to avoid contracting for banking services to The City of Seattle with financial institutions that provide credit-level facilities or project-level loans to TransCanada.” At the council’s Monday briefings meeting, council member Sally Bagshaw said she felt “steamrolled” by Sawant’s last-minute proposal. “I appreciate the political stripes that we’re trying to show here. That said, I want  to make sure that we’re not making a political decision that’s going to have an negative impact on the fiscal health of the city,” Bagshaw said. To Bagshaw and other council members who said Sawant didn’t give them enough notice before introducing her resolution, Sawant responded, “Well, Trump didn’t give me enough notice” that he was approving Keystone construction.

Tim Burgess, chair of the council’s budget committee, pointed out that when the city decided to divest from Wells Fargo, which is financing the Dakota Access Pipeline, they took their time and “got over 10 legal opinions,” as opposed to passing the resolution the day it was introduced. Another difference between the two resolutions is intent: Originally, the reason the city moved to divest from Wells Fargo was because it committed fraud against its customers; the pipeline issue was tacked on later. That resolution committed the city to partnering with businesses that are “committed to and consistently demonstrate engaging in fair and responsible business practices and avoid conducting City business with partners that engage in criminal or systematic deceptive, fraudulent, or abusive business practices.” It was silent on the issue of banks that aren’t breaking the law, but merely do business with companies, like TransCanada, that the city opposes for political reasons.

It would be one thing if the city had a lot of banking options, and only some banks were “bad.” The problem, according to sources familiar with the proposal, is that insisting on ideological purity could leave the city without a viable banking option. If the city won’t do business with banks that lend to polluters, what justification will it have for turning around and working with banks that finance union-busting corporations, or companies that deny women birth control? The city is reportedly looking into options that would allow it to put some of its money in smaller banks, but state law mandates that the bulk of the city’s money be in large institutions that are stable enough to weather financial storms, to avoid putting city employees’ paychecks and pensions—not to mention many progressive city programs aimed at counteracting Trump Administration policies—at risk.

The council will take up Sawant’s resolution sometime in the next two weeks.

2. When voters passed Initiative 122  last year, creating a public financing system that gives every voter $100 in “democracy vouchers” to spend on the city council candidates of their choice, opponents predicted that businesses and labor would take advantage of the early money, holding “voucher parties” to encourage their members to donate en masse. (The initiative encourages early spending in two ways: It requires the city to mail vouchers out in January, when only the most organized candidates have declared they’re running, and actually funds only a fraction of the vouchers in circulation, creating an incentive for business and labor to anoint and fund their candidates early).

Labor and business groups haven’t thrown their weight behind any candidates yet, but voucher parties have come to pass. The first one is happening this Thursday, when a group of urbanist techies calling themselves “Sea Tech 4 Housing” meet at Optimism Brewing Company on Capitol Hill to support Teresa Mosqueda, one of 10 candidates running for citywide Position 8. The suggested donation: $100—or four $25 democracy vouchers.

3. While some local news stations are wringing their hands over the safety of children playing during the day near a temporary men’s shelter that doesn’t open until 9:30 at night, Operation Nightwatch is worried about where it will go next. The 75-bed men’s shelter was recently displaced from its longtime home in the International District’s Pearl Warren Building, after the city announced it was opening a new 24-7 low-barrier Navigation Center shelter at the site. Last week, the city told the Compass Housing-run shelter it could set up in the Next 50 Pavilion at Seattle Center until April 17, but it’s unclear what will happen after that; Human Services Department spokeswoman Meg Olberding says “We are calling on community members who might have space we can use to let us know, and we are combing our networks to try and find space.”

If you enjoy the work I do here at The C Is for Crank, please consider becoming a sustaining supporter of the site! 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 substantial time I put into reporting and writing for this blog and on social media, as well as costs like transportation, equipment, travel costs, website maintenance, and other expenses associated with my reporting. Thank you for reading, and I’m truly grateful for your support.