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Thursday, September 2, 2010

What’s the Deal with MOHAI?

Posted by on Thu, Sep 2, 2010 at 1:11 PM

(This post is by Carl Marquardt, legal counsel to Mayor Mike McGinn. At issue is the dispute over whether the Museum of History and Industry (MOHAI) should renegotiate a funding deal and help the city's budget. MOHAI's op-ed from yesterday is here. — Eds)

MOHAI recently negotiated to receive $40 million for condemnation of a City-owned building. This is $25 million more than the City anticipated when it approved the deal, and MOHAI deserves credit for getting it. Now, as we face cuts in so many vital services, does it make sense to give MOHAI an additional $7 million in City funds?

We think these proceeds should be dedicated to helping the City pay for other pressing priorities that are currently at risk. Now is not the time for one community non-profit to soak up all available funding, while so many others go without.

As background: The City has long supported MOHAI by providing the familiar Montlake facility to MOHAI rent-free, while also subsidizing MOHAI’s annual operating budget. Because the State’s plans for 520 include destruction of the Montlake building, the City and MOHAI have been working on plans to move MOHAI to the Armory at Lake Union. This looks like a good project for the City and MOHAI, and we support it—within responsible limits.

More after the jump.

Renovation of the Armory is expected to cost $30 million, and MOHAI has budgeted another $15 million for new exhibits. Last fall, the City Council authorized MOHAI to negotiate with the State to condemn the Montlake building, and direct the proceeds—budgeted at $15 million—to Armory renovation. The State has now agreed to pay $40 million for the Montlake building. Together with $15 million realized from sale of its Convention Center property (also City-subsidized), MOHAI has now lined up $55 million for what was to be a $45 million project. Good for MOHAI. So, what’s the problem?

MOHAI is asking the City to dedicate additional funds—as much as $7 million—from future condemnation of City land at Montlake. The Mayor’s office was initially supportive of this proposal, but that was before the $40 million settlement for the building was revealed.

MOHAI has no legal claim to proceeds from City-owned land. Of course MOHAI can find uses for the money—its revised budget includes $20 million for a new staff office building, and $20 million more for “soft costs.” But it is not clear that City funding for these purposes is justified, given many other priorities.

It’s easy enough to say that institutions such as MOHAI are worthy of City support. The analysis becomes much harder when we face the reality of a constrained budget, and the recognition that funds dedicated to one are denied to another. Every additional dollar that is allocated to MOHAI is money that cannot be spent for filling potholes, housing the homeless, maintaining community centers, or other worthy causes. At this point, MOHAI has enough money lined up to proceed with its project. Condemnation of City land at Montlake won’t go forward until 2011, at the very earliest, and so there is plenty of time for MOHAI to make a case for additional funding, if it can. Meantime, as we watch so many public-funded institutions struggle to survive, it’s hard to justify spending $7 million to make a great deal even better for MOHAI.

 

Comments (20) RSS

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Will in Seattle 1
Everything goes back to the Billionaires Tunnel and the giant sucking sound it's creating.

In the face of cutbacks to more important services, it's very hard to justify the MOHAI "take" if we're having to kick people out of shelters, let rapists and arsonists roam free, and not prosecute dog fighting rings.

That said, the Cascade People's Center has a really cool wine tasting next Thursday on the Virginia V ...

Decisions have consequences. And the Billionaires Tunnel put us over our credit card limit for the next two decades.
Posted by Will in Seattle http://www.facebook.com/WillSeattle on September 2, 2010 at 1:21 PM
Fnarf 2
Hey, you've got Will in Seattle on your side at least. Game over, right?
Posted by Fnarf http://www.facebook.com/fnarf on September 2, 2010 at 1:24 PM
3
Quit whining Carl, and what's the Deal with Mayor McGinn's office? This seems most unprofessional to air your dirty laundry over The fucking Slog.
Posted by Seattle123 on September 2, 2010 at 1:27 PM
4
OK, thanks for clearing this up. So, to review:

1) The city has no legal claim on MOHAI's $40 million from the state. So, MOHAI can keep it.

2) MOHAI was supposed to get an extra $7 million from the city, but ended up with an extra $25 million from the state. So, if there's no formal agreement that requires the city to come up with the $7 million, McGinn can back away from his earlier promise and keep the money.

Posted by J.R. on September 2, 2010 at 1:32 PM
gloomy gus 5
If I'm reading this right, all your employer wants is to redo the Council's deal to share the eventual sale proceeds up to $7 million. Is that right?

Reports here on our li'l Slog said he also wanted a piece of the extra MOHAI got the state to agree to - is that no longer the case?
Posted by gloomy gus on September 2, 2010 at 1:36 PM
6
Paahhh-thetic, Carl...
Posted by Hortense Hottentot on September 2, 2010 at 1:39 PM
7
Well, it it's for "priorities' OK then. That bike line up an 8% grade on NE 125th isn't going to pay for itself.
Posted by Westside forever on September 2, 2010 at 2:38 PM
Will in Seattle 8
Bike lines are actually pretty cheap. For the cost of one street going from Seattle Center to I-5 (the Mercer Millionaires Mess) you can literally build bike lanes throughout the entire city - and maintenance costs for them are a miniscule fraction that normal roads are, since wear and tear is very very low.

But you'd know that if you ever studied transit or built roads or anything. I personally love how each road is a multi-layered cake and how the steamrollers work to squish that spongy cake flat.
Posted by Will in Seattle http://www.facebook.com/WillSeattle on September 2, 2010 at 3:19 PM
Joe M 9
So the city believes it is a good fiscal policy to put the proceeds from a one-time land sale into fixing potholes, housing the homeless, and maintaining community centers? How many months would that $7 mil last until there is once again no money to fix potholes, house the homeless or maintain community centers.
Posted by Joe M on September 2, 2010 at 3:31 PM
Will in Seattle 10
Ask Chihulhy, @9.
Posted by Will in Seattle http://www.facebook.com/WillSeattle on September 2, 2010 at 3:45 PM
11
Sorry, Carl. Just another bogus claim from the mayor's team of amateurs. A deal is a deal. MOHAI's money comes from the State for MOHAI, not the city. If you're trying to fill budget holes with capital $s like this you're all showing a lack of common sense as well as integrity. Any hope of getting some grown-ups on the mayor's staff?
Posted by Sandman on September 2, 2010 at 5:16 PM
Will in Seattle 12
@11 so does that mean the unions get their COLAs and benefits?

....

didn't think so. Which means a deal ISN'T a deal during a budget crisis.

As we all know.

How's that week long closure of libraries citywide working for you?
Posted by Will in Seattle http://www.facebook.com/WillSeattle on September 2, 2010 at 6:00 PM
Baconcat 13
@11: According to your prior comments regarding the Chihuly Museum, you have an issue with essentially giving away city-owned public land. But here, you change course and make a massive exception in the face of a budget hole because you think -- wrongly -- that it's an F.U. to McGinn, who you've essentially gone after non-stop for the longest time.

You also have an issue with liberals, gay people, Dan and The Stranger as a whole.

That aside, I think this is the perfect point for the Mayor's Office and MOHAI to sit down and have a chat. They've identified their mutual issues so it would make sense to take it to the table and not blogs.
Posted by Baconcat on September 2, 2010 at 6:08 PM
michaelp 14
MOHAI has the facts. McGinn has Will_in_Seattle.
Posted by michaelp on September 2, 2010 at 7:13 PM
Jenny from the Block 15
Oh, I read about a similar situation in a book a while back.

The Little Red Hen.
Posted by Jenny from the Block on September 2, 2010 at 9:25 PM
16
You made a deal but because it didn't work out how you wanted, deal is off? If the City feels like it shouldn't have to contribute once MOHAI had obtained a certain amount of money, then that should have been part of the agreement. The City's failure to anticipate a situation they are now unhappy with is not MOHAI's fault and is not a basis to breach the agreement.
Posted by mak on September 2, 2010 at 9:45 PM
17
Its amazing how the city is making so much of the Fun Forest, Chihuly and other proposals to pay such high rent yet MOHAI doesn't pay anything? I would argue its the most boring museum in the city for kids and tourists and has become a huge unused liablity.
Really, does anyone remember the last time they went to MOHAI?
And if you can remember, can you really say it was remarkable or enjoyable?

Put a permanent Chihuly exhibit inside MOHAI at the South Lake Union Armory - glassblowing is an Industry n'est pas?
Posted by Seattle San on September 2, 2010 at 10:53 PM
18
@13 -- "problem with liberals, gay people....?" Huh?
Posted by FriendofGreen on September 2, 2010 at 11:06 PM
19
Carl
Contract law and signed agreements are done deals. You don't get to go back because you don't like the deal anymore. The sale funds were not tied to particular expenses, and now we're here. Sorry if you don't like how the money is being spent, the deal didn't put any restrictions on the use of the funds.

Referring to "does it make sense to give MOHAI an additional $7 million in City funds?" Misrepresenting the deal, doesn't help your case one bit. MOHAI was to get a SHARE of the $7mil land-sale proceeds, not the entire amount.

Anybody signing contracts with the city under this administration better look at this as an example of how you'll be treated.
Posted by CW on September 3, 2010 at 10:51 AM
20
This is just plain crazy, as yanking dollars from our history museum does not save the city money! Period!

MOHAI is poised to become a revenue GENERATOR for the city in it's move to a currently revenue sucking historic location in South Lake Union. Yanking funding halfway through their project and putting the move in jeopardy is a short sighted and a really dumb move.

This is our HISTORY MUSEUM!!!! This is where our kids and visitors to our area go to learn about our city and our state! Seattle is already mocked for its lame, half-ass museums... the chance to improve our history museum should be supported not undermined, and there is absolutely no financial benefit to reneging on this agreement. This museum has the potential to become a jewel in our crown, and McGinn is trying to cut its legs off. I cannot believe it, this is crazy. Does he really believe that targeting the history museum is a sound fiscal decision? Somebody clue him in, please!
Posted by seattlechica on September 5, 2010 at 9:27 AM

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