Exit133

April 2, 2008 · Derek

Tacoma Makes Its Case

The formal pitch to Russell has begun. According to the Tribune, Norm Dicks, Eric Anderson, and Bruce Kendall (the CEO of the Economic Development Board of Tacoma-Pierce County) were all part of a presentation to Russell yesterday. City Manager Eric Anderson briefed the City Council today at the Committee of the Whole. Here’s their pitch:

  • City B&O taxes would be eliminated for “certain companies doing international business”
  • Staying in Tacoma would qualify Russell for the recent perk of not having to pay sales tax on construction of a new headquarters. It would also qualify them for $700,000 in unclaimed lottery winnings that Gov. Gregoire has said she would contribute to the effort to keep Russell in Tacoma.
  • Tacoma would establish an “International Financial Services Area” downtown that would receive a host of improvements, including landscaping, better storm drainage, and more public art.
  • Spending $5 million on education and economic development with $1 million dedicated to a new City position who would focus on recruiting businesses to the “International Financial Services Area”
  • The city proposed three sites. 1) The Haub site we’ve discussed so much before, 2) The Ilahie site across the street from existing Russell building, and 3) Vision Tacoma aka Marcato Phase x.
  • The city would build satellite parking near the Tacoma Dome.

In total, Bruce Kendall estimated a savings of $134 million for Russell over the next decade if they stay in Tacoma.

In today’s Committee of the Whole, Eric Anderson made it clear that while we are focused on Russell now, these changes aren’t just about Russell. We will be defining the IFSA. We then need it to be an attractive place to be and do business. Finally, we need to work as hard as we can to attract and retain businesses for this area. Whether Russell stays or goes, we still need to move forward. More importantly, we can’t wait to begin these changes for a decision from Russell.

Link to The News Tribune

Filed under: Downtown Tacoma, Tacoma Business, Neighborhoods, Developments, Economic Development, Russell, Marcato

12 comments

  • morgan April 2, 2008

    What happened to the site of the Ugly Park Plaza North City Parking Garage? I thought that was in the running too.

    The B&O tax needs to go. Why would we want to discourage doing business in Tacoma?

    Derek: why so serious- did I miss the April 1st post?

  • Erik B. April 2, 2008

    Pretty amazing to see Tacoma so focused on a task.

    The B&O tax needs to go. Why would we want to discourage doing business in Tacoma?

    Eric Anderson has tried to reform it some to make it more user fee directed but I think there was some resistance.

    What happened to the site of the Ugly Park Plaza North City Parking Garage?

    Perhaps even mentioning the garage was too distasteful.

  • Andrew April 2, 2008

    I’m with Morgan on this. Why do we even have the B&O tax?

    “Hey businesses! We’ll charge you for the privilege of doing business in our TOTALLY THRIVING downtown!”

  • Dan April 2, 2008

    While I think the storm drain improvements they mentioned are probably necessary, I sure hope they were not pinning to much hope on that – it’s not exactly “sexy”. I don’t think the satellite parking idea is going to do that much good either. Asking employees to park more than a mile away and ride a trolley through the city to get to their office is a significant hurdle if your prospective employees are considering job offers in other cities with more recognizable names.

  • Dan April 2, 2008

    Just so that I am not leaving totally negative responses to what has clearly been a significant effort by the City – the location options that they are presenting seem exceptional, particularly in comparison to properties that other cities might be able to offer; and if they could some traction with the international financial services recruiting effort I would think that would be extremely compelling to Russell. I think that is a trick that Dublin used to stage their well documented turnaround in the 1990’s, and it has been a huge success. It seems like if they could show some progress with that effort in the next 4-6 months it could mean a lot more than just funding a staff position.

  • Erik B. April 2, 2008

    While I think the storm drain improvements they mentioned are probably necessary, I sure hope they were not pinning to much hope on that – it’s not exactly “sexy”

    It would not seem so Dan. However, I doubt that the City of Tacoma are making these offers to Russell in the abstract.

    They most likely received feedback from Russell that these are items which have value to them. (I sure hope so at least)

    Asking employees to park more than a mile away and ride a trolley through the city to get to their office is a significant hurdle…

    I certainly wished that they would have offered instead to knock down and build a larger North Park Plaza Parking garage with retail on the first floor. But perhaps the city did not have the power to do that as I believe another entity may hold an option on it.

  • Jake April 2, 2008

    So nothing on the parking requirement? Is the Dome District garage going to be Russell parking? Like “You don’t have to build a parking garage under your building, the city will build one for you at the Dome as long as your empoyees take
    the LINK”??

    Also why not make all of Downtown Tacoma the “International Financial Services Area”? Spread it out a bit. Don’t financial centers usually become dead zones after 5pm and on weekends? I know up in Vancouver it does.

    “I certainly wished that they would have offered instead to knock down and build a larger North Park Plaza Parking garage with retail on the first floor.”

    Erik,
    Are you saying you want another parking garage in place of the current one?(No thanks)
    Or are you saying build replacement parking underground with high-rises on top and of course retail on the ground floor? (yes please)

  • Thorax O'Tool April 2, 2008

    @ Jake
    Definitely! Tear down that eyesore, put in like 4 or 5 levels of parking below, build up a 40+ story highrise or two with some nice retail/restaurants below. Put Russell in one of them and watch how that whole neighborhood changes and morphs into the downtown we’d like to see.

    And this isn’t just good for downtown. Start a renaissance in the core and it can spread outwards, reaching other neighborhoods.

  • rich April 2, 2008

    I’m curious also about the parking……I hope behind close doors they said, “yeah, we are in the process of removing the parking requirement, therefore the new building may not provide enough space for all your employees, so we’ll build you another garage over by the dome district”…..please, please….I hope that is how it went….we all know that the 2 biggest obsticles to developement in downtown here are the B&O Taxes and the parking requirement……..

  • altered chords April 2, 2008

    I find 2 items especially intriguing.

    1) Gov. G. pleging $700,000 to keep Russell in Tacoma.

    2) Form an “International Financial Services Area”

    My Questions for this group of readers:

    Is the Gov. of the state more interested in Tacoma’s interests vs. Federal Way, Dupont, Lacey, Seattle’s interest?

    Why “International Financial Services Area” Is that indeed a Russell hot button? They are organizationally lonely here and want more organizations like theirs here? Or is that a Tacoma idea that we hope will appeal to Russell?

    Please enlighten if you have answers.

    Thanks

  • J. Cote April 3, 2008

    I’m bewildered by the idea of “Satelite Parking at /near the TDome”
    The LeMay Museum is going to take out 3 parking lots from the dome already. You’ve got LeMay Parking, Dome Parking and now, Russell Parking all at the TDome. The same question should be asked anytime someone mentions a project down town. “Where are all these people going to park?”
    Parking’s a mess down there now. My son is in TSOTA, I’ve experienced it. But I never get an answer to this. Any comments, guys???

  • Thorax O'Tool April 3, 2008

    “By the Dome” doesn’t necessarily mean right next to it. I have heard an interesting rumor (source is a city employee, but considering I’m related to them I still only put it in rumor category).
    Allegedly the city is thinking of razing the group of run-down boarded up buildings @ the south-east corner puyallup and pac aves, and putting in something very similar to what Park Place South will be when the remodel is finished.
    It would make sense as an excuse to have a fresh start on one of the most blighted corners in downtown.

    Do with said rumor as you wish.