Final Analysis: Crowning Achievement


Welcome to “the dark months.” This is what Mick McHugh calls the period between the end of one baseball season in late September and the beginning of the next one in early April.

McHugh owns F.X. McRory’s Steak, Chop & Oyster House, which debuted in Pioneer Square in 1977, the same year the Seattle Mariners were born. If you’re a diehard Seattle sports junkie, you’ve probably quaffed or noshed at McRory’s at least once. If you have visited during the dark months, it was probably on a day when the Seattle Seahawks were playing football.

There are only eight Seahawks home games each NFL season, so the dark months—October through March—are a challenge for establishments like McRory’s that rely on the sports-obsessed public for much of their income. Basketball and hockey are played during the dark months, which is why McHugh probably thinks Chris Hansen is a heavenly combination of messiah, mensch and Merlin.

Hansen is the rich guy from San Francisco who wants to put a basketball/hockey arena near the existing football and baseball stadiums in Seattle. He has spent more than $50 million buying up property nearby. In a recent blog post, McHugh described Hansen’s arena as having “the potential to … make a difference in the lives of not only the business owners in the area … but the staff we will be able to keep on during those quiet times and the additional people we will have to hire.”

In sporting circles, Hansen has already had his halo fitting. His canonization is likely on the fast track because anyone who can bring professional basketball back to Seattle—and maybe a hockey team, too—while footing much of the bill for a new arena is destined to be seated at the right hand of Oprah come Judgment Day.

But on the day in September that Seattle was celebrating the City Council’s tentative agreement over the financing of Hansen Arena, I was moderating a panel discussion about the outlook for the Washington state economy in 2013. Susan Sigl, CEO of the Washington Technology Industry Association, mentioned that our economic future is inexorably linked to our ability to close the high-tech education gap—the yawning chasm between the huge number of available tech jobs in Washington and the small number of graduates qualified to fill them.

It’s an oft-heard refrain, but if we don’t improve education in the so-called STEM disciplines (science, technology, engineering and mathematics), it doesn’t really matter if we get a shiny new version of the Seattle Sonics to play in a shiny new arena. Without a successful economy firing on all cylinders, adding one or two more teams to the professional sports landscape is like putting gas in a car whose fuel tank has a hole in it.

And so as I moderated the discussion, I began to wonder: Wouldn’t it be cool if somebody like Chris Hansen, a zillionaire who grew up in Seattle loving the Sonics and who wants to give back to the community he loves, were willing to pony up about $300 million to kick-start a first-class effort to close the tech education gap?

Look, I love sports. But sports is entertainment. It can boost civic identity to a point, but it’s not as if a city lives or dies according to the number of millionaire athletes it’s willing to coddle. Trust me. The city of Seattle and the state of Washington will survive without a pro basketball team. But without enough highly qualified tech graduates to stoke our economic engine, Mick McHugh’s dark months could become an all-year proposition.

JOHN LEVESQUE is the managing editor of Seattle Business magazine.

Editor's Note: Rule Weary in Seattle

Editor's Note: Rule Weary in Seattle

City regulations may be well meaning, but small businesses are feeling put upon.
David Lee founded FareStart in Seattle to train chefs because he believed the homeless would benefit from “the dignity of preparing food as a vocation.” He launched Field Roast, a producer of vegan “meats,” because he considers the mass industrialization of animals as “a blight on our culture.” He has nurtured a caring culture at his SoDo production facility, remodeling the space so production workers have plenty of space and natural light.
So when Seattle passed a paid-sick-leave law mandating a set number of paid days for sick leave, Lee accepted it. But the results have been disappointing.
“For the first time,” he says, “I have employees lying to me. A medical appointment becomes a paid day off.”
The city’s $15 minimum-wage mandate was another challenge.
“It hurts businesses like ours that compete on a national level against companies in places like Arkansas that pay $7 [an hour],” says Lee. But, wanting to do the right thing, this summer Lee boosted the wages of his employees to $15 an hour four years before he was required to do so under the law.
Seattle can be proud that its $15 minimum-wage law has led the way in driving up wages across the country. And because it is being implemented over seven years and at a time when the local economy is strong, there have been relatively few negative impacts (page 20). Similarly, while there may be widespread abuse of sick leave, there is evidence that the ability of workers to take the time off helps prevent the spread of the flu and other harmful viruses.
But each new layer of regulation is an added burden on business. Now the city is adding yet more regulations — one set that will require businesses to set schedules for employees two weeks in advance and yet another that requires landlords to choose tenants in the order applications are submitted. What’s next? 
A requirement that companies hire employees in the order that they applied?
While each regulation may have some logic to it, the cumulative effect is to make it harder for businesses to fulfill their important role as job creators. The rules can be particularly hard on small businesses without the resources to hire staff to deal with the complications regulations create.
Regulations also create bureaucracy. The Seattle Times reported that to enforce a law requiring landlords to select tenants in the order in which they replied, the city would hire two employees at a cost of $200,000 and launch sting operations. Really?
Meanwhile, the city isn’t enforcing basic sanitation laws to prevent the homeless from leaving excrement on city sidewalks. The Wing Luke Museum of the Asian Pacific American Experience came close to shutting down because an illegal encampment just a block away included “tents serving as drug galleries” that made it unsafe for the museum’s employees and visitors. The problem contributed to the shutting down of the nearby House of Hong restaurant and resulted in negative reviews for the museum on websites like Trip Advisor during the important summer tourist season.
It will be interesting to see if the city’s new director of homelessness, appointed in August at an annual salary of $137,500, can address this expanding problem.
“Clearly, what is happening is that government is forcing business to take on the social imperative,” Lee says.
The altruistic entrepreneur accepts that, up to a point. But the city needs to spend more time attending to basic services. And it has to stop pretending it can solve the world’s problems on the backs of small businesses.
Executive Editor