January 2, 2009 · · archive: txp/article

Will Ruston Remain Solvent?

The News Tribune is reporting today that the owner of the Point Defiance Cafe and Casino has offered to settle his lawsuit with the Town of Ruston.

If you may recall, the town raised gambling taxes from 3% to 12%. This effects affects the one business that so happens to be the largest employer in the town. So what has this meant for the casino? Lower revenues, fewer jobs, a higher tax bill, and a $9.6 million lawsuit against the town. The settlement offer would apparently set the tax rate at the same level as the casinos in Fife – effectively doubling the bill from the once-upon-a-time rate.

The catch-22 is that the town raised the gambling taxes in order to keep the town solvent. So … How much longer will there be a Town of Ruston?

Link to The News Tribune

Filed under: ruston

25 comments

  • Jesse January 2, 2009

    Is this Tacoma’s opportunity to annex Ruston?

  • Courtneys January 2, 2009

    “This effects the one business…”

    *affects, dear friends. :)

  • Tacoma1 January 3, 2009

    I doubt that Tacoma’s City Council would want the Ruston crowd at their meetings.

    Also, it’s my understanding that if Tacoma were to annex Ruston, the tax receipts don’t cover the added cost for the police and fire dept. liabilities.

  • Thorax O'Tool January 3, 2009

    …but I thought Point Ruston was going to solve the town’s woes, and put ‘em on the map?
    Whoda thunk that overly-expensive condo development would fail as a savior?

    Ok, all snarkiness aside now.
    It sucks for the fine People of Ruston, first all the brouhaha over that whole mayor thing, then the law$uit and now this.
    Granted, a lot of communities are gonna find themselves in this same boat, especially if City X was spending like property taxes were gonna skyrocket forever.

    I’m not sure if T-Town annexing Ruston is the most ideal solution, especially considering that fierce Ruston pride. After all, the town was founded explicitly so it wouldn’t be Tacoma.
    Is their some sort of municipal legal equivalent to an autonomous region?
    Of course, being the Tibet of Tacoma leaves something to be desired.

    Any Rustonians (or is it Rustonites?) Wanna pipe in on this?

  • Tim Farrell January 3, 2009

    As I recall, disincorporation comes first, then an incorporation could follow should the City of Tacoma wish to annex the area. Translation: it becomes Pierce County’s issue before it gets to become Tacoma’s.

  • RR Anderson January 3, 2009

    weird with a beard

  • Jesse January 3, 2009

    The Tibet of Tacoma… I love it!

  • crenshaw sepulveda January 3, 2009

    Ruston is about .3 square mile of land with a population of about 750 people in the 2000 census. I had more people than that using my bathroom on new years eve. Ruston was set up as a company town for the smelter. The smelter is gone. Looks like the town part might be going as well.

  • Jesse January 3, 2009

    Annexing them would eliminate the overhead costs of administration and (some) management for Police, Fire, and town administration positions.

    I mean, it’d still be Ruston… just, the neighborhood of Ruston as opposed to the town of Ruston.

    You know, just a thought…

  • Ruston34 January 3, 2009

    Wonderful blog. How did I ever miss you before. For all the exciting moments of Ruston regular council meetings and Special Sessions read:

    http://rustoninsider.blogspot.com/

    Waiting for November “09.

  • Karen Pickett January 3, 2009

    This discussion is nothing new to us in Ruston. I believe Tim is right, the residents here would have to vote to dissolve, then we become unincorporated before we can vote to become part of Tacoma (unless the town becomes insolvent).

    A couple of clarifications – there are two major developments in town currently, a large condo building that is separate from Point Ruston and due to open in the spring. And the single family custom homes on the former hillside where the stack stood. There are several homes under construction that should hit the tax roles in 2009. The lower portion of the property is finally on the tax roles, valued at several million.

    All this will help, but property tax alone is not enough to sustain us. We need a reasonable business base. We made progress a couple years ago by updating the zoning code around 51st and Pearl to encourage new development, but the council reduced the height limit, making it challenging to get a decent return on new construction.

    Ruston’s leadership needs to set a positive tone for its businesses. We don’t need development at all costs, but we should look for ways to encourage and grow our businesses, not just tax them and pit them against the surrounding neighborhoods by arguing over parking or heights. There are ways for everyone to benefit and our leadership should set an example that looks for solutions, rather than the fear-based battle over pennies this casino tax represents.

    I know it seems like an easy solution to just become the “neighborhood” of Ruston rather than our own town, but there are many intangible benefits we would give up. Knowing our fire and police officers by name, knowing our mayor and council and having them know us, having our kids grow up in a place where the connections are stronger (for good or for bad) is worth the struggle to remain independent, in my opinion.

    The political climate is calming a bit. Although the fiscal outlook is bleaker than it has been since the town approved that controversial condo project several years ago, having the majority of the council and hopefully the new mayor willing to listen to input and work together with businesses, residents and developers bodes well for our future.

    That’s my soap box for the morning. Stay tuned, I hope the town will survive this latest in a long series of challenges.

  • Jesse January 3, 2009

    Maybe Ruston could tell Tacoma that it will unincorporate if they run a streetcar from DT Tacoma down Ruston Way, through the tunnel or Point Ruston, swing through by Antique sandwich, and turn around in the enterance of Point Defiance Park. That’d be a sweet streetcar line.

    Ya ya ya, again with the streetcars. I think I’m OCD. But, impagine the business it’d bring!

  • Thorax O'Tool January 5, 2009

    I’ve often said (and I know a LOT of people will agree with me) that Tacoma is the biggest little town you’ll ever find. Everyone somehow runs into people they know all the time, all over town. I almost weekly seem to run into folks I haven’t seen in years.
    …and don’t get me started on my sister. She works at an in-store bank branch and I swear she really does know everyone in this city.

    But Ruston is the real deal, it is a small town. It’s not like Fircrest or Fife that are little cities, it’s a for-real slice of Americana small town.
    As much as I am froth with Tacoma Pride, I cannot help but feel that annexing Ruston will not be their salvation. Even if the town goes completely insolvent or whatever and Annexation is the only hope, I still don’t think it is the best.
    These days, especially with high mobilization and media, retail & cultural homogenization, we’re losing our identity.
    Tacoma? Nope, South Sound. Bellevue? Nope, Eastside. Olympia, Tacoma, Seattle Everett? Nope, Puget Sound.
    You get my point. In our modern rush-rush, all-the-same, no-tolerance-for-different society, it is a breath of fresh air from the past to see small towns.
    I hope Ruston can figure out it’s path and place, but remember this lesson that Iceland just learned: Don’t try to run with the big dogs if you aren’t one.
    Ruston should not try to be UP or Fircrest or Tacoma. Ruston needs to be Ruston.

  • Jesse January 5, 2009

    Thorax: Small town Ruston is dead anyways when Point Ruston is complete.

  • Karen January 5, 2009

    Thank you for capturing so much of what I feel about Ruston in your comments, Thorax. And your advice about finding our own identity is so right on… thank you for the inspiration!

  • Thorax O'Tool January 5, 2009

    @ Karen: You’re Welcome. I like Ruston, I used to work for Metro Parks out of the Pt Defiance shop. One of my favorite things to do after a long hot day of emptying garbage cans was to go and get a green river float at Don’s.

    @ Jesse: Yeah, I know. More over-priced condos full of yuppies to make yet another Kirkland.

  • Douglas Tooley January 5, 2009

    @Karen Pickett-

    Downzoning does not lower development profits, it lowers the price of the land.

    These days the price of dirt is a very relevant subject – the basis for the value is, ultimately, a portion of the income of the individuals who utilize it.

    Real estate has been used as a cash cow in American economic policy beyond what is justified by the american employee – especially one who has been downsized by corporate America. FWIW, it is not only the price of residential real estate that is at play here, but also, very justifiably, the role of corporate real estate in the economy.

    With the new development Ruston will likely not being going bankrupt.

    I don’t understand the details of the problems in Ruston, but you need to get them figured out, and, also, welcome the large number of new neighbors you will soon be getting. Set the rules positively, or else someone else will.

    Ruston is not going bankrupt, but it will be changing. Hopefully you can build a ‘main street’, old and new, that works, not one that justifies the execesses of the government corporatists.

  • john ruvo January 7, 2009

    It’s time to let go of Ruston it’s really nothing more than a Tacoma neighborhood. It’s a thorn in North Tacoma’s scheme of things. It has nothing no stores, no schools, no fire dept. It depends on Tacoma for everything…Annex it and forget it.

  • Thorax O'Tool January 7, 2009

    Salvation cannot come alone from for-profit and commercial interests; they are but a part of the equation.

    Unless Ruston can solve the equation for X, they’re gonna fade into the background of the larger city like every other small town seems to be doing. Rustonians have to really sit down and figure this out.

    Joining T-town will bring many benefits… but what will the cost be? Even the closest, tightest-knit urban neighborhood isn’t as tight as small community can be.
    The loss will be the identity, and the community. There is nothing wrong with being a part of a city neighborhood. Hell, I’m proud of the 98403; I wouldn’t have moved into my place if I didn’t like the area.
    But Ruston will find that as the years go by, and the assimilation becomes complete, they’re just going to be a part of North Tacoma. and not the most unique one by any metric. Is that a price worth paying? I can’t answer that, I’m a Tacoma Boy, not a Ruston Boy.

    ——————————

    Some may ask: “T’OT, if you’re not a Rustonian, why do you care so much?”
    It’s not because of some super-special feature of the town, or whatever. It’s because I see a mirror of Tacoma in Ruston. Granted, T-town has a much more established personality, but like Ruston, Tacoma is still in the throws of an identity crisis. Tacoma is finally, I think, starting to realize that we’re not Seattle, we are Tacoma. We have our own unique identity and need to be true to it or else be stuck as a wannabe forever.
    The same goes for Ruston. Trying to be something else will only destroy your identity.
    Like it or not, eventually the Point Ruston mess will be resolved and a whole buncha new buildings and people will call the town home. They may live in the town, but where will they work and shop? Where will they go to the park? That’s right, Tacoma. I’m not complaining, that’s good for my city.
    But if Ruston wants to remain viable and able to live off of it’s own resources, taxing the $h*t out of the few businesses it has is not smart. Taxing property into the stratosphere is not the solution.
    My suggestions? Keep the property tax about par with T-Town’s. Take on some inexpensive projects to visually identify Ruston as a different municipality. For example, get new street signage that looks radically different from Tacoma’s. Paint your fire hydrants some bizarre color (yes, some of us notice those things). Drop the tax on businesses to a level that makes being in Ruston financially beneficial compared to other local cities. Maybe have all new small buisnesses pay like no tax their first year (the toughest year) and gradually scale the taxes on from year 2 thru 5, or whatnot.

    ——————————————-

    Sorry for the rambling, it is late and I get this way when I’m tired.
    The long and the short of it is:
    Ruston, get your act in gear or be a Tibet.

  • Jesse January 8, 2009

    Wasn’t Ruston originally a tax shelter community for the smelter and it’s staff anyways?? Besides, towns have borders. Where’s Rustons?

  • Karen Pickett January 9, 2009

    Could I re-post your comments on my Ruston blog, Thorax? I think you have some important thoughts and encouragement folks should hear. And you can jump over and comment there, too Jesse. I think there are people in town who agree with both of you!

  • Jesse January 9, 2009

    Karen: Sure. Post away!! Is this your blog: http://rustoninsider.blogspot.com/ ???

    Sell them on the streetcar thing… ya… OCD… ya… Streetcars to Old Town and the Zoo!!!

  • Karen Pickett January 9, 2009

    I’m at RustonHome.blogspot.com. I try to keep this blog more newsy and neutral – although I know my bias comes through from time to time. Thanks for agreeing. If TOT agrees, I’ll get something up right away…

  • Thorax O'Tool January 9, 2009

    Sure, go for it Karen. I’m glad to help as I can.

  • Ruston34 January 9, 2009

    Ther is old Ruston with millions of dollars of infrastructure needed, many millions. Then there is Point Ruston a brand new state of the art commercial/residential development.

    Separating them is a 105 foot bluff, one will not change the other physically but Point Ruston will definitely be beneficial to Old Ruston.

    The Point Ruston land mass (100 acres) was split off from Tacoma to save the W.R. Rust Smelter operations from being taxed by Tacoma.

    The Smelter was responsible for RUSTon, get it, and now may again save the town from bankruptcy resurrecting itself as Point Ruston.

    Given the choice Tacoma will welcome Point Ruston but they could not afford Old Ruston.

    Old Ruston is living in a dream world where the RUST later ASARCO smelter paid all of the bills. Without them the higher taxes, assessments and LIDs will force most of old Ruston to sell out and move. At the present rate of squandering their trust funds it won’t be long.