Strategic vision lies behind Russell bid

The best thing about the pitch Tacoma leaders gave Russell Investments executives Monday is that it was not just about Russell.

It was about a larger vision – far more than just keeping the headquarters of a large global investment company from leaving Tacoma.

The proposal, ambitious but achievable, is about building on the city’s progress of the past two decades to reach another level.

The goal: creating a downtown business environment that would not only allow Russell Investments to grow and prosper but also attract more companies like Russell – financial services companies that not only pay well but also add intellectual and social heft to a community.

That’s a smart strategy for Tacoma right now.

The immediate objective, of course, is persuading Russell CEO Craig Ueland and his top lieutenants that remaining in Tacoma is the best business decision. The Tacoma Partnership proposal goes a long way toward making that case.

Russell’s 1,100 employees are currently scattered among four downtown locations, with no room to grow. The lease on the current headquarters on A Street expires in 2013. The company is considering other locations from Federal Way north to Seattle.

The proposal outlined by Tacoma City Manager Eric Anderson argues that Russell can achieve operational savings of $133 million over 10 years by taking advantage of lower costs available in Tacoma.

Not uprooting employees or forcing many of them to commute regularly northward on congested Interstate 5 is kinder to them and to the environment.

There are at least three sites downtown where developers are eager to build a new office campus for the company, although the partnership is not indicating a preference. The city is prepared to invest millions in streetscaping, parking and other improvements that would make living and working downtown significantly more attractive.

Creating a designated International Financial Services Area downtown would make Russell and other companies in engaged in international finance eligible for substantial city and state tax breaks. The city aims to phase out its business and occupations tax for such firms by 2013.

All told, the city would contribute $65 million, the state $54 million and the federal government $24 million toward creating a financial-services “cluster” in downtown Tacoma.

Any way you slice it, that’s a serious proposal. It’s hard to imagine that Russell could realize such tangible advantages anywhere else in the Puget Sound region.

It should be worth it to Russell to stay, not only for the sake of its bottom line but also for the opportunity to be a part of building something great in Tacoma.