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City ponders greater authority for THA

By John Larson

Tacoma City Council is considering granting new powers to Tacoma Housing Authority (THA) for operations of the Rhoads Center. THA is interested in purchasing the downtown building from the state of Washington, and has sought the ability to form a public development authority should it purchase it.

THA Executive Director Michael Mirra discussed reasons THA wants to buy the Rhoads Center during the April 7 meeting of the council’s Neighborhoods and Housing Committee. These include new sources of revenue to fund housing programs from leasing office and retail space in the building. The agency likely would move its administrative offices to the center. THA has lost office space at Salishan, its sprawling housing development on the East Side, as part of a major renovation underway there.

There is a possibility of housing, both affordable and market rate, being built above the housing garage.

The state is limited to leasing a maximum of 20 percent of the building to the private sector, something THA would not be burdened by, according to Mirra. He expressed confidence THA could find retail businesses to fill some of the space that is currently empty on the first floor.

“We want to bring some bustle to that part of downtown,” he remarked.

The committee pondered two options – granting full public development authority status, which would include a charter and board of directors, or simply allowing it to form a community development authority, a less complex manner of granting THA the additional power it seeks. The committee gave a due pass recommendation to the latter, which was scheduled go before a vote of the full council April 15.

Mirra said this would grant THA three new powers: the ability to own the parking garage, operate a building with other public sector agencies housed in it and to preserve the building’s historic character.

Several state agencies lease space in the Rhoads. Mirra said THA wants them to sign 10-year leases as part of its negotiations with the state. “That is a hedge against the bet we are taking,” he said.

The final price is still being negotiated. “We won’t buy it if it doesn’t pencil out,” Mirra remarked.

During the council’s April 8 study session, Mayor Bill Baarsma mentioned a discussion he had with City Manager Eric Anderson about a possible third option by which the city and THA would form a partnership. Baarsma said Anderson had asked him to discuss this with Mirra. Anderson said he left a telephone message with Mirra about this but had not heard back as of that afternoon.

Anderson said the proposal endorsed by the committee the previous day could result in “dramatic change in the structure of the housing authority.”

Baarsma pondered whether or not THA would be able to generate the amount of revenue it seeks from office and retail space in the Rhoads Center.

Councilmember Rick Talbert said his main concern is that THA finish its redevelopment of Salishan. “I am confident that will be the case,” he said. Talbert said Salishan holds much potential for business opportunities.

Councilmember Jake Fey expressed some frustration that concerns city staff had about the topic were not brought forward during the committee meeting.

Anderson replied that he had intended to attend the meeting to discuss them but ended up leaving work early because he was not feeling well and apologized for any confusion that may have resulted.

Councilmember Connie Ladenburg said she wanted the matter discussed at a meeting of the full council. Baarsma suggested placing it on the agenda of a study session, perhaps for the one scheduled for April 15.

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