Coalition Files Ethics Complaint
Against the Mayor and Vulcan for Violations of City Ethics Rules
for more information and copy of complaint contact: John V. Fox 206-632-0668
Date: March 24, 2004
Today the Coalition filed a complaint with the Seattle Ethics and Elections
Commission (SEEC) showing that Paul Allen's Vulcan Development Company made
prohibited contributions to the Mayor's Office Fund in 2002 and 2003 in
violation of SEEC Rule 12.1.A.. During this period when they made these
contributions to the office fund, Vulcan was under contract to the City of
Seattle and also was actively negotiating and pursuing other lucrative contracts
with the City. This is an explicit violation of Rule 12.1.A. of SEEC Election
Code Rules barring parties from making donations to the office fund while under
contract or while affirmatively pursuing a contract with the City. (See SEEC
Election Code Rule 12.1.A)
These violations of Rule 12.1.A. come at a time the SEEC is actually considering
the possibility of eliminating this rule. A request as been made to the SEEC by
an attorney from one of Seattle's major corporate law firms routinely entering
into contracts with the City to eliminate this rule. One of the other members of
his law firm assists Vulcan in its Real Estate transactions. In fact tomorrow at
9:30 at the SEEC's retreat Room 4096 Key Tower 700 Fifth Avenue, Seattle, WA at
9:30AM, the SEEC will be discussing this very possibility with the attorney who
has made the request. The Displacement Coalition will be present and ask for an
opportunity to speak and to oppose any consideration of elimination of this
important rule. The Coalition in fact will ask that the rule be strengthened.
We have attached the full complaint: (for copies of accompanying documentation,
please call us at 632-0668
Summary of our Complaint:
We are today filing a formal complaint against Vulcan Inc and Mayor Nickels for
violations of SEEC Election Code Rules - Administrative Rule 12.1.A -
Prohibiting persons who are a party to a current city contract from donating to
the office fund of an elected official and barring elected officials from
accepting such contributions. We also are seeking imposition of appropriate
penalties including but not limited to return of the funds, fines, and other
remedies the Commission deems appropriate consistent with its authority
After a review of contributions made to Mayor Nickels Office Fund, obtained
through public disclosure request, it has come to our attention that that Vulcan
Inc has made at least two contributions of $250 each to the Mayor’s Office fund.
The first of these contributions was made on April 23rd 2002 and the second in
the same amount was made on March 31st 2003. We have enclosed copies of C-3
records from the Mayor’s office confirming these contributions. (See Attached
Exhibits #1 and #2 respectively)
Further, we have found documents obtained through public disclosure request
indicating that as far back as September of 2000, representative of Seattle City
Light, the Mayor’s Office and other city departmental representatives have been
engaged in extensive meetings with Vulcan over the future of South Lake Union.
We also have learned from a review of these materials that growing out of these
continuing discussions, Vulcan and the City have entered into at least one
contractual relationship and were planning, or have already entered into, at
least one other contractual relationship with Vulcan.
First, Vulcan entered into contract with City Light to donate to and participate
in completion of a study on creating a 135 million dollar energy district in
South Lake Union of which they would be a direct beneficiary. This contract was
signed in which Vulcan also donated and made a loan to the City towards
completion of the study. The study was being conducted through 2002 and 2003
during period that Vulcan donated to the Mayor’s Office Fund.
Second, since 2000, through the period Vulcan donated to the Mayor’s Office
Fund, the City, including the Mayor’s office, and Vulcan have been actively
engaged in a partnership leading towards purchase and joint development of a
site in South Lake Union where a new energy substation would be co-located with
a Vulcan development. This deal they were actively pursuing and may still be
actively pursuing or it may have been completed by now and would be enormously
lucrative to Vulcan. Further during this period, we found at least one other
contract with the City obligating Vulcan to perform during the period they were
donating to the Mayor's office fund.
The City Council soon will be making key decisions fundamentally affecting Mr.
Allen’s land holdings and development plans in S. Lake Union. These decisions
could lead to tens of millions of dollars in subsidies for Paul Allen’s plans
and produce enormous profits as the value of his land appreciates as a result of
these city subsidies. These public policy decisions also could set off a level
of development in S. Lake Union that will have enormous implications for the
entire city both in terms of its cost to taxpayers and in terms of how that
growth will affect the physical and social character of all Seattle
neighborhoods. From our point of view, not only is the integrity of the City’s
democratic processes at stake but so is the future of our city. While
Vulcan's contributions to the office fund are relatively small, an abuse of
these rules is no small matter when it is being abused by a company that is
quite literally dictating public policy in South Lake Union to their direct
benefit.
For more information, contact us at this e-mail or call 632-0668
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