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‘Seattle will not be a priority’ for some in business community if head tax remains

"Seattle will not be a priority for us to establish any new business."
Columbia Hospitality CEO John Oppenheimer.

Seattle businesses continue to draw a line in the sand, demanding a repeal of the newly passed head tax or they could change the way they do business within the city.

Columbia Hospitality manages some of the more iconic buildings in Seattle – including the Smith Tower, Bell Harbor Conference Center, Escala, and several hotels. It has been bullish on the city, until now.

“The business climate has so much to celebrate,” said CEO John Oppenheimer on Thursday. “The head tax is the opposite of that. (It has) dampened enthusiasm, dampened excitement, discouraging companies from growing in Seattle.”

In fact, he says, it has discouraged his company from doing anything else in Seattle.

“If the head tax goes forward, if the referendum does not go forward, Seattle is not going to be a place we prioritize, it's not going to be a place, there are too many other places that welcome us with open arms,” said Oppenheimer, who by nature is a gregarious, positive force on the Seattle business scene and does only rare interviews. But asked whether he was drawing a line in the sand now, he said, “It’s important, it’s an emotional issue for us.”

The Head Tax ordinance was passed on May 14 after months of debate and a compromise measure. The $275-per-employee head tax is slated to be implemented on January 1, on companies, like Columbia Hospitality, with $20 million annually in gross revenue. The Council and Mayor say it will pay for housing and homeless services, although a spending plan has not been finalized.

Oppenheimer’s statements come as opponents gather signatures for a repeal of the measure. One person close to the effort said Thursday “thousands” of signatures had already been accumulated. It also came as city leaders in Tacoma and Pierce County pitched a “head tax incentive” to recruit businesses State Senator Steve O’Ban (R), University Place, is pitching a $275-per-employee head rebate to create jobs in rural counties.

Seattle Mayor Jenny Durkan seemed unfazed by the tough talk on Thursday, saying, “My job as mayor is not to get pulled into a fight about referendums and where business are good. I want the strongest city, the strongest region possibly.”

A CNN report recently labeled the legislation as a “lose-lose-lose draw”, since the Mayor, nor Council, nor homeless advocates, nor business community got what it wanted out of the bill. Durkan was asked why have an arbitrary deadline to approve the deal, on the 14th, if not everyone was on the same page.

“I think we will continue to talk and work with people," said Durkan. “Everyone I talk to understands it’s a shared responsibility.”

But Oppenheimer, who said he supports a new tax proposal for waterfront improvement, does not see it the same way.

"That's all about progress - that's creating an amazing park,” he said in reference to the LID, “To me, that’s a different issue.” He says the head tax is another. “That’s not the same as creating jobs, and we’ll fine you for it.”

Columbia Hospitality has properties in 24 cities, in six states overall, and employs 3,000 people, according to Oppenheimer.

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