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Monday, December 8, 2008

Robbing Hoods: The Seattle Times Wants to Take from Cyclists and Give to Developers—and Block Affordable Housing

Posted by on Mon, Dec 8, 2008 at 3:32 PM

Today the Times is protesting a program that would create more affordable housing, calling it “distinctly hazardous.” The heat rises from a poropsal going before the city council later this month. Here’s how it would work: Developers could build taller buildings—which allows them to sell more units and make more money—and in exchange, they would have to rent or sell 20 percent of the new units at affordable rates. Say the great minds:

There is equity in that, and social benefit — but also problems. The no-profit units amount to a tax on new housing. Tax a thing and you tend to get less of it. We're for taxing cigarettes and liquor, because less of those is all right. Taxing new housing gives us pause. Even pricey new housing creates slack in the market and tends to benefit all buyers.

So taxing stuff is great when “less of those is all right.” But as Erica points out, James Vesely, editor of the Seattle Times’ editorial pages, wants to tax cyclists. So the Times, we conclude, wants less cycling. But the Times doesn’t want to “tax” developers—even if they would make bigger profits from taller buildings. It's the opposite of Robin Hood. There’s nothing wrong with developers or land-owners making money, of course, but why not get some public payback for increasing the value of their land?

Times owner Frank Blethen—who drives a Posche to work—has been personally lobbying city council members over the past couple years to block the incentive housing program (paying special attention to Sally Clark, chair of the land-use committee), say sources at city hall. The paper owns a few blocks of South Lake Union, which stands to be upzoned.

“I just think it should be known that the Seattle Times are landowners and they will be impacted by program,” says Anna Markee, outreach director of the Housing Development Consortium of Seattle-King County. Seattle Times' Jill Mackie sat on a “stakeholder” board for Clark’s committee, advocating on behalf of the Times. “[The Seattle Times is] not just coming at it from what is best for the community but they have their own interests,” says Markee, who also sat on the stakeholder board.

Biases aside, the crux of the Times' argument is that any “tax” will hinder new housing. But when the city council passed incentive housing rules downtown several years ago, buildings proposed under those rules boomed. They are still under construction despite a recession. Meanwhile, plans for residential construction continue along neighborhood arterials. People are still moving to Seattle and we need more housing, increased density around rail stations, and affordable places for workers—especially in the neighborhoods where the current proposal would apply.

The Times says the incentive should kick in for buildings over 80 feet. But buildings over 80 feet aren't allowed in most areas outside downtown, so that proposal is a meaningless gesture.

“I’m disappointed that the Seattle Times seems very concerned of the impact of this on developers,” says Markee. “I didn’t see that much attention to questions about how are we going to provide enough housing in the city for all the people who need it.”

 

Comments (20) RSS

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1
The problem is that you in the media have this thing about labels.

When a rag calls itself the Seattle Times, you assume it represents the views of people who live in Seattle.

But anyone with a sixth-grade education could do a google search and find out from the distro maps that it's really the Non-Seattle Times, for people who don't live in Seattle, and who are envious of our fast-growing urban environment.

Toss their idea in the trashheap.
Posted by Will in Seattle on December 8, 2008 at 3:33 PM
2
"Frank Blethen ...has been personally lobbying city council members over the past couple years..." So when are cyclists going to start to lobby the city council? It's not enough to bitch and moan folks. If you have a cause, you have to push for it. And yes it might mean making a sacrifice for your cause, like taking a half day off work or going to an evening city council meeting instead of grabbing a beer with the buddies. Politics is ugly business, it's not fun, and it takes time. Whining is not effective.
Posted by Sargon Bighorn on December 8, 2008 at 3:39 PM
3
The Times may be self-interested but it doesn't mean they aren't right. Effectively mandating rent control on 20% of small-to-moderate sized buildings is a great way to kneecap denser development.
Posted by Seattlite on December 8, 2008 at 3:43 PM
4
What those who sit on the Times' editorial board know about economics could not fill an empty shell from Frank Blethen's dog-shootin' .22.
Posted by DOUG. on December 8, 2008 at 3:44 PM
5
The Times just needs to go out of business. Ignore it and it will.
We tax to compensate for externalities in lieu of allowing them. Luxury condos built with no setback cut off light angles and views and increase single occupance vehicle loads. As a compensation the city requires the builders to build affordable housing.
I'd prefer if the city simply mitigated the externalities - do what Haussman did in Paris and create Iron-fisted rules on setbacks, light angles, etc. But if we are going to allow developers to throw up sidewalk to sidewalk monoliths, then the least we can do is demand some form of public compensation.
Posted by kinaidos on December 8, 2008 at 3:47 PM
6

I'm predicting Seattle will be a ghost town in five years as people flee the crime, density and violence. Apartment prices here are a rip...no doubt.
Posted by Nostradamus on December 8, 2008 at 3:51 PM
7
Nanny state libertarians
Posted by vooodooo84 on December 8, 2008 at 3:54 PM
8
#6 lives in Spanaway.
Posted by AJ on December 8, 2008 at 3:58 PM
9
Taxes do not exist to discourage the things they are taxing. If that were true then income tax would discourage people from making more money. Taxes exist for one reason: to generate revenue.
Posted by Jerod on December 8, 2008 at 4:04 PM
10
@6: Yeah, right. I'm predicting Seattle will have a bunch more people in five years. But, then again, so will Spanaway.
Posted by J.R. on December 8, 2008 at 4:11 PM
11
What is "affordable?" My take home is $1,700 a month but I can't find a one-bedroom or studio apartment, accessible by wheelchair, for less than $1,000 a month (even in Shoreline),
Posted by elswinger on December 8, 2008 at 4:43 PM
12
@11,

Yup - the real problem is that the entire Incentive Zoning proposal subsidizes units that most working folks would not begin to regard as affordable, and that are already being produced by the for-profit market anyway.

Start subsidizing units aimed at incomes below 60% of median and we can talk. Until then, it is every bit the developer giveaway/incentive to demolish truly affordable housing that groups like the Seattle Displacement Coalition say it is.

Posted by Mr. X on December 8, 2008 at 4:49 PM
13
Dom -
What does that fact that Blethen drives a porsche have to do with anything? Inane classist pabulum is why the vast majority of thinking Seattleites discount any "news" from the Stranger. Nice work continuing the trend.

Not that it matters, but you're wrong with your analysis. What happens in the real world is that the condo buyer or renter pays the tax - not the developer. If you think that prices or rent are too high now, with this proposal they'll go up another 30+% (20% plus soft costs, plus developer's profit, etc). So Seattle will increasingly become a city affordable to the very rich and the very poor. Not an attractive future.

And for those who argue that developers won't pass on the costs because of the current economic realities - you're also right. And what that means is that like the Seattle Times points out, this tax will lead to fewer housing units being built. And in this scenario, we all lose again.

So again Dom, you might want to try to think through and understand these issues before attacking the "great minds". Then again, your juvenile jabs at Blethens wealth will no doubt play well with the natives.
Posted by small biz owner on December 8, 2008 at 4:51 PM
14
Shockingly, I am going to say Sargon Bighorn @2 has it right.

Seriously, on the average issue, it's considered a big deal if only TEN people phone or TWENTY people email the city council and the mayor on ANY issue.

What if every poster on this thread did that?

Wouldn't that be more effective?
Posted by Will in Seattle on December 8, 2008 at 4:59 PM
15
@ 13) I don't claim to have the final math on incentive zoning. Nobody does. But the workforce-housing program is a minor drain on return for the incentive of a massive boost in gross revenue. Giving developers twice the floor area without any public return is foolish.

I mentioned Frank Blethen's Posche because The Times just came out in favor of taxing bikes and then saying they support taxing things we need less of. Why doesn't Blethen support bikes? He drives a fast car to work. It has nothing to do with his wealth--although the fact that he's wealthy and wants to tax the poor and exempt those who do get wealthy from development is pretty, um, rich.
Posted by Dominic Holden on December 8, 2008 at 5:08 PM
16
The only reason incentive zoning is being proposed (and will pass) is because the City/State/Feds don't put enough money into affordable housing, so the non-profits that produce it can't keep up with the need. Incentive zoning is just to get the for-profits to join in the task of creating affordable housing.

Plus, no matter how you slice it... if you give the developers additional floor space (which translates directly into additional revenue), there shouldn't be any outrage or surprise with requesting that the developers "pay" for it by creating some affordable housing. (Did anyone mention it's probably going to be temporary affordable housing? [Just 50 years.])

On a final note, has anyone complaining about the incentive zoning noticed that the incentive zoning program Seattle is going to enact is going to be VOLUNTARY? Don't want to build affordable housing? You don't have to!! You'll just have to build according to the old zoning rules (the pre-upzoned rules).

Jesus Christ people everywhere can be stupid!


Signed,

An affordable housing developer who actually reads the details
(and who, admittedly, is somewhat conflicted about incentive zoning)
Posted by Hey Wait (I'm a developer) on December 8, 2008 at 6:40 PM
17
with... without
and who denies
it's what the
fighting's all about...

-pink floyd
Posted by class warrior on December 8, 2008 at 6:45 PM
18
@13
Translation "Hooray for me and fuck you!"

Posted by I've Got Mine on December 8, 2008 at 11:32 PM
19
kinaidos: your point of reference for how to handle 21st century urban policy is HAUSMANN? are you CRAZY?


Hey Wait: yes.

I think anyone involved in the building sector can see that incentive zoning isn't going to FORCE any developers to build affordable housing.

Whether or not the developers are interested, or whether the housing is really going to be "affordable" to those who need it is another issue altogether.

Posted by raisedbywolves on December 9, 2008 at 5:42 AM
20
Boo condos. Aren't there already a bunch of condos that were being auctioned off because no one would buy them?

Here is my problem with "affordable housing" - the people who market it seem to have no idea what "affordable" is. I live in low-income, government subsidized housing (which is a bit better off than "affordable" housing in blocks of "regular priced" housing) and it still takes up nearly 50% of my income.
Posted by erly on December 9, 2008 at 10:30 AM

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