Newsletter | March 18, 2024 |
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On March 7, more than 1,000 people gathered in the new Seattle Convention Center to hear about the State of Downtown from numerous community leaders.
Jon Scholes, President & CEO of the Downtown Seattle Association, which organized the event, gave an overview of his organization’s annual Report on downtown. The Report includes a report card that examines several measures of economy health and vitality for downtown.
On the plus side, the report card found continued growth in the number of people living downtown (74% growth since 2010 to 106,116) and upward movement on the number of downtown jobs as they slowly recover from the steep Covid decline. The number of retail jobs painted a less favorable picture as 2023 figures reveal a drop below Covid-era numbers.
Axios Seattle took a look at some of the other information contained in the DSA Report.
Seattle City Council President Sara Nelson also addressed the event, giving her perspective on the priorities of the newly-elected Council. President Nelson emphasized that the Council and its staff are now back in their offices, hoping the set an example for the city and county governments.
As editorial board member, Alex Fryer, noted in The Seattle Times, nonessential City employees are only required to work in the office two days a week. King County has no uniform back-to-office policy and enough county employees are working from home that the County closed its Administration Building in 2021. Fryer made it clear that downtown activation requires a full-time return to office by the 12,000 employees who work for the City and County.
Other speakers included Joy Shigaki (Friends of Waterfront Seattle), Elliott Bay Connections, and a public safety panel discussion with City Attorney Ann Davison, Police Chief Adrian Diaz, Community Assisted Response and Engagement (CARE) Chief Amy Smith and moderated by KING5-TV’s Chris Daniels.
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Now midway through his 4-year term, Mayor Bruce Harrell highlighted accomplishments from the past year and offered clues on how he intends to address challenges that continue to confront the City.
The Mayor put his “One Seattle” approach on display in the speech, offering praise to Council President Sara Nelson and City Attorney Ann Davison, while finding opportunities throughout his address to tell each Councilmember how he looks forward to working with them. He also discussed the new expectations facing the City after the election of a new Council:
“With a new City Council, there is a new level of expectation for the City. We don’t run away from high expectations, in fact, we draw energy from them.”
The Mayor addressed lagging efforts to hire additional police by saying that he would review the Seattle Police Department’s recruitment policies. He also emphasized the need to hire police who reflect the values of the community. The Mayor added that he will soon be announcing plans for a $7 million “post-overdose” facility.
The Mayor was less clear on his plans to revitalize downtown. With the persistently-low return to offices by downtown workers stalling vitality there, the Mayor stated that he would not “fixate on trying to revive the old downtown — instead, we aimed to reimagine what a downtown could be.”
The Mayor focused on the conversion of storefronts to small businesses and transitioning some office buildings to housing. After lauding the impacts of the Major League Baseball All Star game and Taylor Swift (he mentioned that her one concert was literally a seismic event), the Mayor looked ahead to the 2026 FIFA World Cup (as he said, the equivalent of 3 Super Bowls) and the return of the Sonics (even though they would be playing at Climate Pledge Arena on the Seattle Center campus).
On the homelessness issue, the Mayor committed to continued review of the work of the Regional Homelessness Authority and the City’s funding contribution. He also took a jab at other communities in the County, saying that a “regional approach means that there is permanent supportive housing and services in every community in our region — not just in Seattle.”
On closing the City’s projected $226 million budget deficit in 2025, the Mayor did not offer specifics. He did signal his opposition to new taxes, however, declaring “the fact is that passing a new or expanded tax will not address the fundamental issues needed to close this gap in the long-run.”
Other big issues lie ahead in 2024, including revisions to the City’s Comprehensive Plan, which will guide housing growth, and a transportation levy. Clearly, the Mayor and new Council have a busy year ahead.
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On Jan. 13, the City of Seattle implemented an unprecedented new law that made huge changes to the way app-based delivery works by implementing the Minimum Pay Standard for gig workers. The new law requires Dashers to earn at least $26.40 per hour, before tips, plus additional pay for mileage–far exceeding Seattle’s minimum wage of $19.97. In response, DoorDash put in place a regulatory response fee.
Because this is an untested and unprecedented policy, countless community advocates, small business owners, Dashers, and consumers spoke out against this untested policy while it was being considered by the City in 2022.
They warned that it would make delivery prohibitively expensive for thousands of residents. New data DoorDash gathered over a two-week period since the law took effect, confirms that:
- Consumers have placed 30,000 fewer orders on DoorDash Marketplace;
- Dashers are seeing an average waiting time that is three times longer between offers, meaning fewer earning opportunities; and,
- Seattle businesses missed out on more than $1 million in revenue.
The WA Alliance for Innovation and Independent Work issued a press release on February 20, 2024, sharing concerns about the impacts of the Minimum Pay Standard on Seattle businesses.
“This is just devastating for our retailers in Seattle,” said Renée Sunde, president and CEO of the Washington Retail Association. “Small businesses have come to rely on app-based delivery workers to help grow their customer base, especially since the pandemic. This new ordinance feels like a tremendous step backwards for merchants, workers, and customers. We would encourage the new council to examine the impact this law has already had in such a short time, and seriously consider a repeal.” she said. “We need policies that lift up merchants and workers and customers. This is clearly having the opposite effect.”
The bottom line is Seattle’s Minimum Pay Standard regulation has made it harder for app-based delivery drivers to flexibly earn when and where they want, has caused lost revenue for small businesses and is impacting customers.
It remains to be seen what the impact of the Council’s 10-cent per-delivery fee law will be when it takes effect in 2025.
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On February 26, the Burien City Council took public testimony and, later, discussed potential changes to its draft minimum wage legislation.
Unlike some communities, Burien developed its minimum wage proposal after months of stakeholder engagement with businesses, worker advocates, and others. It’s estimated that 90% of Burien’s business community is made up of small businesses, so the stakes are high in getting this wage standard right.
At last night’s meeting, about 20 people offered public comment on the legislation. The retailer’s perspective was represented by Marisa Wulff, Co-CEO of Mud Bay (and WR board member), which has operated a store in Burien for the past 24 years. Marisa talked about her company and urged the Council to make three changes to the legislation:
- Change the definition of “level 1 [largest] employer” to raise the minimum number of FTEs to more than 500. Currently, the legislation sets the employment level for the largest employer category at “more than 200” FTEs;
- In determining employer levels, count only employees working in King County; and
- Eliminate the private of right action, which relies on private lawsuits as the primary means of enforcing the wage law.
John Engber, WR Director, Retail Industry Coalition of Seattle, also offered public comment at the meeting on behalf of WR. He praised the City for the collaborative, thoughtful stakeholder process used to develop the legislation. He focused on the same suggested changes as Mud Bay CEO, Marisa Wulff.
Several owners of small Latino businesses also shared their views about the legislation. All of those business owners either opposed the establishment of a minimum wage or urged the Council to only consider it in the future.
Others who offered comments included the owner of Elliot Bay Brewery, a waitress who expressed concerns about passing the minimum wage legislation, a McDonalds franchise owner, Annie McGrath (President/CEO of the Seattle Southside Chamber), and several people who called for a stronger minimum wage law.
After the public comment period closed, the Council discussed potential changes to the legislation. While most of these decisions were pushed to a future Council meeting (giving the City Attorney time to gather information and draft potential amendment language), the Council did vote to remove the private right of action from the legislation.
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In a significant move against organized retail crime, Attorney General Bob Ferguson's Organized Retail Crime Unit has filed its second felony criminal case. Shellonda K. Daniel, a Maple Valley woman, faces charges for a series of thefts across six counties in western Washington, involving over $200,000 worth of fragrances and cosmetics stolen from 28 Ulta stores. The charges, filed in King County Superior Court, include two counts of first-degree organized retail theft, a felony offense.
This case highlights the Attorney General's commitment to addressing the growing issue of organized retail crime, which poses a threat not only to businesses but also to the safety of workers and customers. The state's Organized Retail Theft statute has enabled the consolidation of charges across multiple jurisdictions into a single county, reflecting the coordinated effort to tackle such widespread criminal activities.
Daniel's alleged actions included not only the theft of high-value items but also intimidation and threats towards store employees and customers, escalating the severity of her crimes. The Attorney General's Office is pursuing a prison sentence of up to 10 years and a $20,000 penalty for each count against Daniel, along with full restitution for the stolen goods.
The Organized Retail Crime Unit, established in partnership with the Legislature in April 2023, represents a centralized effort to combat retail thefts that are organized and systematic, rather than isolated incidents of shoplifting. This unit, part of a broader task force that includes representatives from various levels of law enforcement and the retail industry, underscores the collaborative approach required to address such complex challenges.
As the unit continues to build its team and capabilities, this case serves as evidence of its potential impact in safeguarding communities and businesses from the ramifications of organized retail crime. With nine other states having dedicated task forces for this issue, Washington's proactive stance sets a precedent for comprehensive and coordinated action against these criminal networks.
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The Office of Superintendent of Public Instruction is on the 2024 ballot, along with the other
statewide offices. The editorial board of The Seattle Times previewed the OSPI race, calling it “a class on competing ideologies.”
Although several candidates have announced their plans to run, the editorial focused on the
incumbent, Chris Reykdal, and two of his challengers, Chad Magendanz and Reid Saaris.
The editorial board explained the early attention by saying the “issues are urgent and complex, so it’s imperative to get the conversation started early.”
Although many parents of school-age children are concerned about lower student achievement since the start of the Covid pandemic, Reykdal labels “learning loss” a “misnomer,” despite the overwhelming research documenting the problem. He describes his campaign as a referendum against “extremists” who pursue “personal gain” by promoting lies about public education.
Reid Saaris has focused on education as a career, creating Equal Opportunity Schools, a national nonprofit committed to getting disadvantaged kids into advanced courses. He has also authored a book on equity in education, “The Kid Across the Hall” and taught at Rainier Beach High School.
Chad Magendanz, a former Republican state legislator and past president of the Issaquah
School Board, has expressed concern about “partisan political ideology in our classrooms” as a reason for entering the race. Since leaving the Legislature in 2017, Magendanz has been a full- time computer science teacher in Bellevue.
The editorial described the candidates by saying, “An ardent supporter of charter schools,
Magendanz is in many ways Reykdal’s polar opposite.
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WR diversity statement
WR is committed to the principles of justice, equity, diversity, and inclusion. We strive to create a safe, welcoming environment in which these principles can thrive.
We value all people regardless of race, ethnicity, gender, religion, age, identity, sexual orientation, nationality, or disability, and that is the foundation of our commitment to those we serve.
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Renée Sunde
President/CEO
360.200.6450
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John Engber
Director, Retail Industry
Coalition of Seattle
206.850.5517
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