This was originally posted to the Adams Morgan Listserv on October 1, 2018, as message #49622, groups.yahoo.com/neo/groups/AdamsMorgan/conversations/messages/49622
Over the past 12 years or so, the public sector has at the expense of “social and economic equity” poured billions of dollars of public subsidies into developing today’s emerging White Privilege Economy here in the District. This subsidized economy is centered around large scale luxury housing projects and walk-able access to so-called upscale nightlife amenities <lims.dccouncil.us/Download/38917/B22-0508-CommitteeReport1.pdf>, which support the higher rents. Generally speaking, these public subsidies have been funded by redirecting/restructuring CDBG resources, public debt (TIFs, PILOTS and zoning air rights), regressive tax schemes (Abatements and employment tax avoidance). As we saw with the Initiative 77 vote, resident have begun to question the efficacy and fairness of public subsidies/policies which subsidize DC’ White Privilege Economy, unfortunately the major of Council and Mayor have not found the courage.
During the Initiative 77 public hearing, many council member’s spoke of their willingness to fight for employment equity and fight wage theft; however, this rings hollow as they have shown a reluctance to provide serious oversight and legislative check and balances when the White Privilege Economy and subsidies are at stake. We need look no further than the Adams Morgan Hotel, The Line, $46M tax abatement. The Line is a text book example of a city subsidized White Privilege Economy project. A project whose workforce no doubt would be impacted by Initiative 77 <www.thelinehotel.com/dc/venues/>. We have known for about a year that The Line has not met the employment requirements to maintain the entire tax abatement. Even after the Council cut the original employment requirements by 1/2. On top of this, there is little doubt that The Line developers attempted to cook the books in November of 2017 by claiming 230 jobs where created through the AMYLA Expanded Program <d3n8a8pro7vhmx.cloudfront.net/silverman/pages/406/attachments/original/1529360056/First_Source_pre-hrg_Q25_attachment_Sydell_Report_March_2018.pdf?1529360056> after the completion of construction. The Council and Mayor however after less than 3 months are ready to repeal Initiative 77 providing many Line workers with so relief, but after a year only rhetoric and no emergency repeal legislation for The Line tax abatement. Obviously, the allure of the White Privilege Economy the Mayor and Council trapped in a construct not unlike that illustrated in the 1999 film The Matrix <en.wikipedia.org/wiki/The_Matrix>. The employment numbers for The Line don’t add up, except through the use of Fuzzy Math and public policy Matrix built around prioritizing a White Privilege Economy.
Few will argue that Initiative 77 and other measures to raise the minimum wage will compensate the harms done to DC residents of Color, especially African American residents by the city’s subsidization of the White Privilege Economy. However, Initiative 77 is an important acknowledgment of the problem and offers some relief. What I believe many supports of Initiative 77 are saying is that the burden should be placed on the city’s White Privilege Economy and those who benefit from this economy, not the workers who tend to loose as housing and other costs rise. A just Council would implement Initiative 77 and then work to figure out the burden more equitable wages would impact our White Privilege Economy.
Note, a compromise is not to slow the implementation of Initiative 77, but to end and claw back subsidies the Mayor and Council are giving the White Privilege Economy and related beneficiaries. I’d start with the Line Hotel Tax abatement, repeal it and invest that $46M in an economy and projects designed to ensure and achieve equity. I was proud of the residents of this city of all classes, races and strikes who voted 57% for the initiative.
William
In June, District voters supported ballot Initiative 77 as a very small step toward returning some measure “social and economic equity”, fairness to our development policies. On Tuesday, our city Council will likely vote to repeal even this minor effort at equity, because the Mayor and majority of Council feel that our White Privilege Economy after 12 years is still too fragile.
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Subject: Fuzzy Math: Equity in DC’s White Privilege Economy
I urge everyone to watch Monday’s Council Hearing on the potential repeal of Initiative 77, in particular Council Member’s opening statements. If we strip away all their rationalizations and tortured logic logic, what we have are Council Members struggling to explain why workers and government should continue be to subsidize DC’ White Privilege Economy. It was embarrassing. Hearing On-Demand Video – Bill 22-913, Tipped Wage Workers Fairness Amendment Act of 2018 <dc.granicus.com/MediaPlayer.php?view_id=2&clip_id=4637>.
DC Citizens from all walks, all races, incomes and etc. voted 55.7% to end these subsidies and demanded a more Equitable approach to development by passing Initiative 77 <electionresults.dcboe.org/election_results/2018-Primary-Election>. The voters were not fooled by out of town do gooders, nor unaware of the risks, but decided that DC’s tavern/bar industry, the second leg of our White Privilege Economy, should have stand on it’s own merit, without continued public subsidies and special treatment. The first leg was the pouring of 100s of millions in public subsidy into the high-end luxury apartment industry catering to a sense of White Privilege. Fancy Bar’s and celebrity chefs are key amenities to maintaining high rents.
I believe I understand the Council’s fears in weening our economy from one built off of subsidizing privilege too one built on equity. The city has made a commitment to Wall Street and private equity investors that the subsidies would continue and economic and social equity would continue to take a back seat <cfo.dc.gov/sites/default/files/dc/sites/ocfo/release_content/attachments/S%26P%20District%20of%20Columbia%20Published%20Rationale%207-3-18.pdf>. Which is why the Fuzzy Math from the Council and others at the hearing. You have industry arguing that if we are forced to carry our own weight we will go under, so we need to continue to shift the burden to workers and the government. And Council as to explain why the city is building an economy on an industry that can’t be fair. You don’t want to loose all the cool do you, they seem to say.
I think DC citizens by supporting 77 are saying to their government, you have spent the last 12 years building an Economy based on White Privilege, now it’s time to get back to a more Equitable and fair approach to development. Even it that comes with some risk.
William