Gloves coming off in cities' duel for Russell

TACOMA — The courtship of Russell Investments is getting a little rough.

After they got wind of the sweet nothings Seattle Mayor Greg Nickels has been whispering into Russell's ear to entice it to leave Tacoma for Seattle, 16 Pierce County legislators fired off an angry letter to the mayor Tuesday, telling him to knock it off.

The letter calls the mayor's overtures "misguided" and "cannibalistic."

"It was with tremendous disappointment we read about your efforts to provide local tax incentives to lure away Pierce County's largest private sector, for-profit employer," the letter says.

"Not only does a public competition for Russell Investments represent misguided and cannibalistic public policy from a regional economic development perspective, it erodes the very foundation of cooperation we have worked to develop in recent years."

Neither Nickels nor his staff members responded Tuesday to repeated requests for comment.

With billions in international investments and about 900 local workers, Russell would be a sweet catch for any city.

However, since Tacoma clearly needs the business more than Seattle, state business leaders and politicians — most notably U.S. Rep. Norm Dicks, D-Belfair — have been urging Seattle not to pull too hard in the tug of war.

For the most part, that's what has happened. But a public records request by The Seattle Times turned up a June 2 letter from Nickels, offering Russell a $250,000 annual break on the city's business and occupation tax.

Meanwhile, Tacoma has gone all out in its efforts to keep its anchor downtown tenant, offering the company more than $148 million in benefits ranging from tax breaks for sales tax on construction to B&O tax loopholes.

Tacoma's package also includes 500 parking spots and a $66 million upgrade of downtown streets.

Russell has indicated it will make the decision on its headquarters location by fall.