Lacey City Council candidates talk about attracting jobs, businesses

Forum: They disagree on annexation, eliminating B&O tax

Naye Hulings | Staff writer • Published October 13, 2011

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Candidates for Lacey City Council took center stage Wednesday evening, answering questions during a community forum hosted by The Olympian.

Councilman Jeff Gadman, who was appointed this year to fill an unexpired term, faces Mark Arras, a lieutenant with the Washington State Patrol. Incumbent Jason Hearn faces Michael Steadman, who works in commercial leasing. In the only race without a current council member, planning commission chairman Lenny Greenstein faces Joe Mihelich, a license representative for the state Department of Health. Voters will choose from among them Nov. 8.

Candidates were asked a series of questions, including thoughts on budget priorities, how to improve the local economy and create jobs, and whether the city should consider annexing its urban-growth areas.

Here are some of the questions and the answers provided by the candidates:

What is your position on annexation of the urban-growth area to Lacey?

Greenstein said the city isn’t in the financial shape to annex and he used the Tanglewilde neighborhood as an example.

“I think it would absolutely destroy the city’s finances,” he said.

Hearn said the city must first ask, Is it good for Lacey?

Steadman said annexation is unavoidable. He said long-term smart planning is important but that with the additional services needed, the money isn’t there to make annexation work now.

Arras said now is not the time to expand any parts of the city.

“It costs too much,” he said. “We need to hold the line and take a defensive posture.”

Gadman said the city needs to work toward annexation, especially on Martin Way, but annexing that particular section now would be “financially disastrous.”

Mihelich said he’s in favor of annexation that would make Lacey whole. He said Lacey is struggling more than the surrounding cities and that a Tanglewilde/Thompson Place annexation would make the city whole.

“That septic-sewer conversion is going to be the major issue,” he said.

How should the city move forward with the Gateway Town Center project? What is the council’s role?

Gadman said the city is encouraging the bank to keep the vision alive. He said he would like to see a civic presence at the site, such as a library or a private-public conference center.

“Something to make that part of the city feel more like Lacey,” he said.

Mihelich said a big business is needed and that the city’s bid system needs to be looked at, noting that he’d like to see more local construction used to keep the money flowing in the city.

Greenstein said the city should move forward with the project and encourage the new ownership to move forward and build on the property.

Hearn said the city has invested in the plan previously and wants to see similar teamwork and partnership with the new owner.

Steadman said he lives in the Hawks Prairie area and that “if you build it, they will come,” but he said there needs to be proper police and fire presence.

“That has to be the top priority … without it, it’s going to be a nightmare,” he said.

Arras said the city did its part building the infrastructure and streets. Everything is ready, but it’s an “excruciatingly slow” process, he said.

How do you propose funding major traffic-improvement measures, such as addressing the congestion issues on College Street?

Arras said he likes the way the city works getting federal grants for projects such as Carpenter Road. He said the city needs to prioritize a plan for College Street but said he realizes it’s going to take some time to implement.

Gadman said the city must go after as many federal grants as it can. He said that while dividing the plan to address the issue over five to 10 years isn’t ultimately the best solution, it is the best solution for now.

Mihelich said to look at state and federal government for funding and even the voters, saying a $10 or $15 car-tab fee could be one solution. He said the city also needs to explore another east-west corridor.

Greenstein said patience is a virtue with the project and noted that even money from the federal government and the state is still our tax money.

“Lacey’s roads are actually in excellent shape … and we’re going to have to be patient,” he said.

Hearn said Lacey’s grant program is good but that the trend is for local jurisdictions to pay for more. He tossed out the concept of a toll making sense, with people paying for the services they use, but said that it’s not something to look at now.

Steadman said that with grants drying up, phasing and being patient is key.

“Wherever you can, find the money, but good luck,” he said.

Do you support or oppose changes or elimination to the city’s B&O tax? How can Lacey distinguish itself with businesses looking for a place to call home?

Greenstein said he would support the elimination or reduction of the city’s B&O tax but wants to make sure the city is not taking away valued revenue from its budget.

Hearn said he forwarded the discussion in committee to eliminate the tax, which he said is perceived as an unfair tax on gross revenues. He said the city is waiting to hear back from the state on ways to replace the revenue, perhaps in the form of a retail-sales tax.

Steadman said at the very least the tax should be reduced, especially for small businesses. It would make the path of least resistance for businesses wanting to come to Lacey, he said.

Arras said he supports reduction or elimination and noted that it shouldn’t be replaced with another tax.

Gadman said he’s in support of eliminating the tax but admitted it is significant revenue for the city. He also brought up discussions with the state, saying the city was waiting for ways to eliminate the tax or spread the burden more evenly.

Mihelich said eliminating the tax at this time is out of the question, noting it could mean laying off city employees. He was in favor of slowly reducing the tax.

Nate Hulings: 360-754-5476 nhulings@theolympian.com www.theolympian.com/outsideoly

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