The Word On the Street About Russell
The last day has seen a flurry of news stories about a potential Russell Investments move to Seattle. All, from what we can tell, based on rumor, speculation, and unsigned business deals. So, take it for what it is …
The general idea is that Russell is down to two sites: one in Tacoma and one in Seattle. Representing Tacoma is the Haub property at South 14th and A Street. Representing Seattle is the property once known as the WaMu building. Which site is leading the race seems to vary by whom we speak with. A decision is expected by the end of the month.
That said, two sets of bocce balls and a pile Exit133 shirts to the person that successfully tips us off to the “final decision” before any other online or print publication. Who wants to play bocce? Anybody? Dinner at the Seven Oh One?
So what do you think? Where will Russell land?
Link to The News Tribune
Filed under: General
39 comments
R roger chamusco September 4, 2009
I hate to say this but I believe Russell will move to Seattle because they believe that they’ll be in a more sophisticated city plus they’ll move into an already finished building ( WaMu ). Roger
J Jesse September 4, 2009
I think Russell will go. I read that they can get the WAMU building for “pennies on the dollar”… and the building is already completed.
I will go out and celebrate if they stay though. They mean a lot to downtown and it’s efforts to revitalize. I am sure there are many downtown projects waiting for this decision to see if they want to go forward or not.
M Mofo from the Hood September 4, 2009
At one time Russell Investments could have bought and redeveloped the former Asarco site. Now that would have created some kind of noble legacy.
At this time Russell could contribute to redeveloping downtown Tacoma. Now that would create some kind of noble legacy…
Or they could move to the jinxed WAMU building.
J Jesse September 4, 2009
There’s a philosophy in business that you should “put someone else between you and trouble”. That means, if a CEO of the parent company has to bring in an outside party to break bad news, lay people off, or announce a big location move, they do. That way the third party “bad-guy” comes in, does the CEO’s dirty deeds, and leaves—- therefore helping to leave the real CEO’s reputation at that business in favor. Is that what Russell did with John Schlifske? He came in as an interim CEO (bad-guy?), canned 200 people, and I suspect they were going to have him make the announcement about the move to Seattle before he scurried back to HQ at NW Mutual in April 2009. You see, Tacoma made thier huge $148 million offer in April as well… bad-guy John may have been no longer needed in Tacoma after they saw the offer… and then they could therefore appoint the CEO they wanted the whole time. Making the guy they wanted in that spot all along —- the real CEO (Andrew Doman) the good guy. I’m speculating.
S Squid September 4, 2009
Mofo, you used just used the term “noble legacy” to describe a business operation.
Oh and Derek, does the tip need to be based on any kind of reality, or can I just make it up like everybody else is.
They’re moving. Make book.
C crenshaw sepulveda September 4, 2009
Given that Russell can’t even mention the “T” word in their recruiting literature, quite in fact they use the “S” word through out, I’m pretty sure they will end up in the city that resembles their recruiting literature. Their industry is about recruiting the best and the brightest. Kind of hard to lure these people to Tacoma as she is today. Companies that live and die by their current quarters can not wait for Tacoma’s destiny. Bonuses are depending on it.
P Piet September 4, 2009
I think the single biggest issue is making Tacoma attractive to business.
Nearly all of our other issues – neighborhood revitalization, improved schools, maintain our parks, etc – is tied to whether we can attract businesses to our area.
My suspicion is that were executives within the Russell group that want to relocate to Seattle because they leave closer and perceive Tacoma as the hood. And frankly, it would be easier to attract new employees if you were based in Seattle.
I also feel like we don’t do a good enough job of presenting Tacoma as a good alternative to Seattle. The cost of housing is lower and we’re not a bunch of BMW driving, latte drinking yuppies.
D Dan September 4, 2009
I would bet they are gone. I doubt they feel like getting involved in a building construction project right now (even if they are just leasing, it’s not a distraction that they need). And the recruiting issue is significant. I have been recruiting in this city for several years now and I can say that without a doubt trying to get people to come to Tacoma rather than Seattle is a very tough sell…especially people under about 35. When you are trying to get people from east of the Rockies to come to Tacoma they don’t know where it is or what it’s like, but they certainly know Seattle.
I would also say that the while the City has done a good job putting together a package of incentives in this particular case, the City’s actions over the past 5 years to revitalize downtown and attract businesses have not come close to matching their talk and plans. I would guess that to some extent Russell is thinking, gee this proposal is great but the past 20+ years has shown that follow through at the City often falls short of the vision. And unfortunately, Tacoma needs leadership on this from City Hall much more than a city like Seattle, where development and business growth has become far more organic.
N narndt September 4, 2009
Warning: stretched regional comparison coming. This is a silly thought, but here it is. Think of the 2001 Mariners. Russell is Tacoma’s Griffey, Randy, A-Rod, combined. We might need to add an Ichiro, but a new direction with focus on smaller players…maybe Tacoma can pull it off? Without the distraction of the super-duper-star, the M’s set the single season win mark.
R Richard September 4, 2009
I think the wager that will get the most mileage is how long it will take to fill all the vacant space from Russell. Years? Decades?
R RR Anderson September 4, 2009
If they go it will make challenges to incumbent politicians more palatable.
I can see Jim Merritt now: “My opponent has supported a failed policy and now Russel is leaving. It is time for a change Vote for Me”
either way will be a boon to political cartoonists.
C crenshaw sepulveda September 4, 2009
Indeed, RR, and just imagine the next batch of LeRoy jewelers billboards.
J joe-nate September 4, 2009
Norm Dicks leads the campaign to keep Russell in Tacoma because, in addition to serving the city in Congress, he is one of the most powerful lawmakers in Washington, D.C. at a time when lawmkers are set to revise federal financial regulations in light the economic debacle, showcased by the WaMu disaster. Congressman Jim McDermott represents Seattle but Dicks seems to be the member of Congress for Boeing. Russell executives are wise to consider how his support in Congress might be as important to the firm if they keep their loyalty to Tacoma as the apparently tempting WaMu Center purchase opportunity. Frankly, Chase Bank should be forced to keep the Seattle structure and be challenged to re-hire workers there that the firm laid-off. Since Chase bought the wreckage of WaMu, customer bank statements now come from Baton Rouge. Tacoma still has a running shot to keep Russell headquarters. Erivan Haub, the billionaire developer with a plan for Russell, chose to base himself along Puget Sound at Tacoma, a city convenient to Seattle but without the costlier housing and frustrating commutes. He likes the place.
S subterranean September 4, 2009
Sorry Piet, but I think you have it backwards – rather than spending hundreds of millions trying to attract and retain footloose businesses and hoping that somehow trickles down to better schools, parks and neighborhoods, we should be trying to attract world class labor, artists, intellectuals, and entrepreneurs, by investing in bread and butter issues like improving neighborhoods, parks, schools (should be first), and by building a local entreprenuerial economy from within. Focusing on improving the essentials will eventually attract those businesses we want to locate here – ones that will be invested in what Tacoma is and can be – rather than those who only want the cheapest labor, the lowest taxes, and the most handouts.
D David Koch September 4, 2009
@14: I’ll agree.
J Jennevieve September 5, 2009
I heard a rumor that both might happen: Russell could move execs and ad people to Seattle, and keep the main staff down here. Fingers crossed.
J Jake September 5, 2009
Jennevieve, I have heard the same thing but what I got was the plan would be to move everyone to Seattle eventually.
C cy September 5, 2009
Does the Executive Council for a Greater Tacoma still exist? Just a point of inquiry born of general curiosity to possibly make a pointed obsveration.
D drizell September 5, 2009
Most people seem to think Russell is heading north, and I believe they’re most likely correct. However, there is still rampant speculation about this decision, some of which may or may not be true. The alleged meeting with Erivan Haub may have been a serious inquiry about staying in T-Town, or it could have simply been a way to give Tacomans false hope.
Everyone knows that Tacoma is less expensive than Seattle, but that shouldn’t be tho only selling point that our economic development professionals use to lure businesses to the South Sound. In addition to a (more) prestigious address, more successful recruiting and what not, I think a business like Russell wants to be around similar businesses where they can share ideas and employees. If Russell stays in Tacoma, it will still be the lone wolf in town, but if heads north, it will have several other major financial services companies within walking distance.
A Altered Chords September 5, 2009
I doubt that Russell people would meet with Haub so that they could fool Tacomans with false hope. I’m confident they both have better things to do with their time.
As far as I know, Seattle is not a hotbed of financial services either. Russell has offices in NY. London etc.
As far as recruitment goes. They look for the best and brightest don’t they? Any brilliant twerp fresh out of Harvard or Princeton can easily figure out that the drive from Tacoma to Seattle (for events, clubs etc) is less than 45 minutes.
With so many Wall Street layoffs this past year, I do not think that Russell is recruitment challenged now.
Besides, once this International Financial Services District takes off, Russell will have plenty of company.
We can laugh at the int’l fin. services idea now because nothing has happened yet but I do think it will take root. When it does, perhaps Altered Chords Productions will shift it’s primary focus from jazz to International Financial services. Snapping up trained talent from Russell will be like taking candy from a baby.
T tressie September 5, 2009
yeah, duh. They’re moving to Seattle. The whole BroadwayLID, InternationalFinanceDistrict…engineered years ago to keep them here, and allowing grotesque condo projects to be built downtown…was all for Russell…It’s all so King LouisXV1…and it’s a failure.
Huzzah! to the out-of-town Beer Merchants!!
subterranean @14 is correct. Basics first, frosting later.
gosh I just wish I could get the City to direct their stormwater to the drains instead of directly into my business!!
J Jennevieve September 5, 2009
Full disclosure: My husband works for Russell (although the employees are all being kept in the dark like the rest of us) and while I obviously want his job to stay here, I am one of those “artist” types, contributing to community and such, but it is NOT my salary that is keeping us in martinis and steaks around town, so to speak. Also, I receive my health insurance through him. I don’t think a city can prosper without some big corporations—we can’t all be intellectuals and entrepreneurs—hopefully Tacoma will one day find a balance.
S Squid September 5, 2009
My prediction on filling up the current A-Street building is it takes 12-18 months. Saltchuck owners consolidate the operations of their various marine-related businesses into a building they already own and in a community that is more welcoming to their blue-collar image.
T Thorax Z. O'Tool September 6, 2009
Not this again. So damn tired of the drama. Russell, sh*t or get off the pot. Just pick something already and get on with it. We’re supposedly grown-ups here, not back in 9th grade…
============================================
“Like, oh my god. Did you so like totally hear what Russel is doing?”
“For sure no. Like he never seems to like, you know, make up his mind.”
“Yeah, that is for real the problem! He is like all torn between going with Tacoma and Seattle. He’s like totally stringing them both along for like months now.”
“Pfffft… Seattle is like such a big whore. Like a total prostitute. She’s all like ‘hey, yeah I’ll do whatever you want, just love me’ but to like all the guys. She’s so got diseases, I’ll bet.”
“Yeah! You’re so right! But like Tacoma really let herself go lately. You seen all that sagging and how huge her ass is getting?”
“For Real! I used to like, like hanging with her, but she keeps attracting all these losers. I mean, lately it’s been all the poor guys with BO issues.”
“Well, god. Like Russell could so do better than like both of them. I mean, Tacoma is all like she doesn’t care and we all know Seattle has had like a whole lot of silicone. No one believes those are real.”
“Hey, you know, I hear that New York is like totally single these days, maybe Russell will hook with her?”
“Nah, she’s totally outta his league.”
“True dat.”
F frank murcowski September 6, 2009
Russell will buy the wamu center and move. They stand to make 200-300m or more on flipping the building to a REIT in four-six years. That will offset the tax package Tacoma offered and cover the cost of the move plus some.
A Altered Chords September 6, 2009
I vote for Thorax O’Tools 9th grade dialogue. The dude can draw/paint and apparently he can write screenplays!
R RR Anderson September 7, 2009
we spotted thorax in the dairy section of top foods. He said hi and disappeared which i’m taking as an omen that Russel will surely go.
T Thorax O'Tool September 7, 2009
Take comfort that my brevity comes only from being late to my Uncle’s Labor Day shin-dig.
If my actions are omens of business decisions, then I fear for the world economy.
T TheOriginalSean September 7, 2009
Tacoma is the City of Destiny. Russell made its name in Tacoma. We were the first to have DSL. The First to Have Wifi. And the first in most all advances in this last century NOT SEATTLE!! Now the best part about Tacoma is that you get all the advantages of living in Seattle (via being 30 miles away from an international airport) with out the COST. Also most Russel employees have homes and roots established in Tacoma. Think of the hit to moral and work performance that would happen if 900 people have to make the over 1 hour commute to Seattle. With the extra traffic it would be a noticeable slow down to an already awful commute. Russell made its name as a world wide financial power house in Tacoma not Seattle. Sure times are tough but seriously take the pulse of the work force. Seattle will only add more stress and disappointment to an already stressed to the max personnel.
T TheSecondSean September 7, 2009
Russell is corporate. Corporate cares about nothing except for the shareholders and the upper management’s bonuses. Everyone middle-management and below are just numbers and not people.
As long as the board is happy and he gets his bonus, the CEO doesn’t give a #$*& about the 750 people who would have to sit thru that traffic.
Russell will do whatever it feels will make it the most money, and any cities or employees in the way be damned.
A Altered Chords September 7, 2009
I vote that Russell will not move.
Since I am the first one smart enough to use the words “I vote” then if they do not move, I win.
I will look so cool wearing those exit 133 shirts at the gym. The other gym rats will be green w/ envy.
Bocce every day at Altered-Chords headquarters in South Tacoma!
T Thorax Z. O'Tool September 8, 2009
I vote that Russell will stay put in their current digs on A Street. It’s both cheaper and more practical (remembering their like 20% lay-off earlier this year) just to stay where they are.
C crenshaw sepulveda September 8, 2009
Tacoma has had decades to save Russell. What have we done? Hang banners with Daniel Blue poetry and put up planters. Tacoma will continue to be the city of destiny because it hasn’t figured it out yet. For crying out loud, Tacoma allowed a toxic waste dump to exist within a stone throw from Russell’s head quarters. Decades squandered by the City of Tacoma.
M Mofo from the Hood September 8, 2009
Right C.S., I remember the crisis of 2007 when those poetry banners were flown above the streets of downtown.
It would be hard to prove but it’s possible that even with all of us who questioned the wisdom of that banner display, Russell was convinced that another Daniel Blue display couldn’t be prevented in the future.
N Nick September 8, 2009
@14 I partially agree, but I don’t think that is our biggest problem. Neither is our problem that we can’t attract businesses to locate here. Our biggest problem, as demonstrated by this very post, is Tacoma’s ability to RETAIN businesses.
The fact that ol’ Frank Russell could build such a world renowned financial firm right here in Tacoma, and that Weyerheauser was also able to thrive, and that our port makes the top 10 list of container ports in North America (and no, the Port of Seattle didn’t make the cut) tells me that Tacoma can be a decent incubator for growing businesses. The problem is, once they get large enough, we can’t seem to create an environment that makes them want to stick around.
Whether or not we lose yet another business born and raised in Tacoma, I think we need to examine why this is happening, and repeatedly. Why does Tacoma seem to hemorrhage businesses? How do we stop? If we can’t keep Russell, what can we do to prevent the next large employer from leaving?
If Russell leaves, I’ll miss watching them represent T-Town on CNBC, but probably won’t shed any tears over it…
I I'm for Change (for tacoma) September 9, 2009
#36 – Maybe part of the problem is attitudes like #7 (we’re not a bunch of BMW driving, latte drinking yuppies) & 23 (in a community that is more welcoming to their blue-collar image).
Enough of the “money-is-bad” whining. What will it hurt Tacoma if money moves in? Hmm….our streets may get fixed, our schools may improve, new companies and people may want to move here. OMG – that sounds horrible! Oh yeah – the whiners may get left behind. So of course, we can’t improve Tacoma and our community. Let’s stay less-than-average and celebrate our un-desirableness. Why would we want to live in a world-class city — too scary for us. Too many new people and changes.
We should work to take Tacoma back to the 80’s when no one wanted to come here, property values were low, and nothing was happening. Then we can all pat ourselves on the back as we sit inside our de-valuing houses (no condos for us, screw the environment, who needs density) and say “we’re urban pioneers, we’re so slick, them damn yuppies won’t come here and repress us.”
D David Boe September 9, 2009
Nick@ 36 – Exactly. Tacoma has long been in the business of trying to attract business rather than working to grow start-up businesses that are already here – and then retain them as they get bigger/merge/get bought-out. What is absolutely amazing about Tacoma is that I can have my studio on Pacific Avenue for $12/sf – and what is absolutly horrible about Tacoma is that I only pay $12/sf to have my studio on Pacific Avenue. But if Pacific Avenue is full of studios paying $12/sf – well then, some more retail would start to come-in to provide services to all them start-ups, and then my rent would go up, so I would get pushed-up the hill to more affordable rents. While it might not be ‘sexy’ for the eco-devos to promote antique stores, small start-ups, etc… – if you get enought of them, well that is a bunch of Ichiro singles rather than continually hoping for Richie Sexson to hit a grand slam homerun.
T tom waits September 9, 2009
@#38: …and to continue on that train of thought:
it is absolute fallacy imho that the city continually is seeking the big “home run” development when lease rates are at $12/sf. you are totally correct that the market for lease rates has to grow with small steps – those kinds of businesses and tenants that make downtown interesting and a destination.
hmmm…that’s the kind of tenancy and development that seems to perfectly fit the mid to small scale historic development pattern prevailing in the north downtown and brewery district areas….
T tressie September 9, 2009
ah yes. @39, “those kinds of businesses and tenants that make downtown interesting and a destination”
Like Antique Row, Maxwell’s, The Grand, Art Galleries…the Betty Boop Car Palace…museums, UWT, and in 2 or 3 years…CountryBeerFaire Disneyland…I think about “what if” Tacoma City Council had put efforts into encouraging micro/small business, & subsidized (if necessary) the redevelopment of existing old buildings rather than encouraging($$) unneeded new condos.