New pitch for Lacey police station: Use supportive housing funds to pay for part of it
Lacey City Manager Scott Spence, concerned that asking residents to pay for a $40 million police station might be a challenge, has pitched a new financing approach.
Spence has suggested to the City Council that the city finance about $15 million through a bond issue that would be repaid with real estate excise taxes.
Spence suggested the remaining $25 million come from:
▪ $7 million in American Rescue Plan Act money that was previously identified for permanent supportive housing. Spence contends the money could be redirected because the city is already a partner with the state on the “rights of way” initiative that aims to clear homeless encampments along Interstate 5.
▪ $8 million in reserves that was previously earmarked for the city and Nisqually Tribe to jointly invest in the “gateway” property, which is the vacant land that surrounds the outdoor store Cabela’s. Spence said the project is still two years away.
▪ $10 million from an arterial street fund, which is replenished through real estate excise taxes.
His proposal raised a few questions.
Council member Robin Vazquez wanted to know how the $8 million would be restored for the gateway project.
Savings are built into the budget, Spence said. He expects that amount could be built back up in a couple of years.
Council member Lenny Greenstein had two questions: How would the city invest in its roads if arterial street funds were redirected? And why would the council vote on this instead of asking the public to vote?
Spence said there are still sufficient funds for roads, plus the city’s Public Works department has done a good job of augmenting those funds with state and federal grants.
And Spence explained the difficulty in going to voters. For a bond issue to be approved and repaid through a property tax hike, the city needs a super-majority vote of 60 percent, plus 40 percent voter turnout from the last general election, Spence said.
If there’s a downturn in the economy, it suddenly becomes more difficult to pass because voters grow concerned about household expenses, he said.
Council member Carolyn Cox praised Spence’s idea, but was against the idea of using all of the permanent supportive housing funds on the police station. She is in favor of using part of it on the station.
“The need for supportive housing is greater than ever,” she said.
This story was originally published October 10, 2022 at 5:00 AM.
