Santos Tapped to Lead ODMPED

Oh, Neil Albert, we hardly knew thee. In a move that surprised few, Mayor Adrian Fenty has appointed Valerie Santos the new Deputy Mayor for Planning and Economic Development (aka, the Mayor’s Affordable Housing Czar), following Albert’s recent promotion to City Administrator. Santos' appointment will be subject to a vote by the DC City Council at as-of-yet unscheduled confirmation hearing.

Unlike her predecessor, who rose to the Deputy Mayor post from the heart of economic development that is the DC Department of Parks and Recreation, Santos is a dyed-in-the-wool real estate maven, having served as a vice president at Jones Lang LaSalle, a manager at Ernst & Young’s real estate division and as a Masters student in Public Policy at Harvard’s Kennedy School of Government before entering the lucrative civil service field to become her old boss’s Chief Operating Officer.

So just what does a Deputy Mayor for Planning and Economic Development actually do? Here’s what Neil Albert told DCmud in a 2008 interview:

I see myself as convener of private sector and the natural community residents who sometimes have needs that complement each other and sometimes oppose each other. In many cases, my role is just to be the arbitrator…Our job is bringing the balance between the haves and the have-nots in DC, so we have the big law and lobby firms and the non-profits and the associations who are squeezed by real estate taxes right now, but that add to the flavor of DC. Instead of them having to relocate to suburbia, we step in and try to provide incentives to keep them here.

Among the overdue projects that Deputy Mayor Santos will be tasked with “arbitrating” in the coming year are, according to ODMPED, the Southwest Waterfront redevelopment, CityCenter DC, the O Street Market and the goings-on along the Minnesota Avenue/Benning Road corridor. That’s on top of her duty to oversee the “cluster of agencies” that fall under ODMPED’s purview, including the Department of Small and Local Business Development, the Department of Housing and Community Development, the Office of Planning and the Department of Consumer and Regulatory Affairs.

And in a possible case of Sotomayor fever, Santos had been publicly known as Valerie Santos-Young right up until…well, this announcement. 

Washington DC real estate development news

Work Begins on Capitol Riverfront's "Crown Jewel"

Developer Forest City Washington broke ground today on the latest Capitol Riverfront redevelopment initiative: the Park at the Yards. Located between Nationals Park and the Navy Yard, the $42 million, 5.4 acre park, designed by M. Paul Friedberg and Partners, was touted as "the core" and "crown jewel" of the greater Yards development. Once complete, the area will feature 2700 new units of housing, 400,000 square feet of retail and 1.8 million square feet of office space. The park’s first phase, scheduled for completion next summer, is set to include “vast open lawns” and landscaped gardens along a riverfront promenade that will incorporate an extension of the Anacostia Riverwalk Trail. Future work will include three retail pavilions, including one in the historically-protected Lumber Shed adjoining the site, with the end result of creating a world class waterfront destination.

“A world class city has to have a world class waterfront…This I think is the biggest piece of that and generations of Washingtonians are going to be thankful that this day occurred,” said DC Mayor Adrian Fenty.

Meanwhile, FCW President Deborah Ratner Salzberg told DCmud that other, more retail-centric pieces of the greater Yards puzzle, such as the Boilermaker Shops at 200 Tingey Street, SE, continue to fall into place. According to Salzberg, roughly 50% of that space is now leased and the FCW development team recently returned from a conference with potential retailers.

Despite rumors of business being slow in the from-scratch neighborhood surrounding the ballpark as construction continues, Claire Schaefer, Deputy Executive Director of the Capitol Riverfront BID, said that approximately 1,600 new residents are now in place in the area’s various rental and condo buildings, with that number expected to climb to 2,000 by year’s end. According to the Office of the Deputy Mayor for Planning and Economic Development, the Yards alone will host some 3,700 Southeast newcomers once work finally wraps sometime in the twenty-teens. Those figures will surely be helped along by the vast number of transit-oriented, “’smart growth” projects coming along as the riverfront coalesces - expanded bus services, water taxis, street cars and even horse-drawn buggies being among the options explored for a site that once hosted a government compound known as the Southeast Federal Center.

“You have to put all these pieces together to get to today…[This is] how a neighborhood gets transformed,” said Congresswoman Eleanor Holmes Norton, who facilitated the nation's first public-private partnership on federal land for the Yards project. “It is especially important to the neighborhood and city that there be a way to reach our river from which we have been isolated forever. This is a part of the city that has been opened to the people.”

District Takes a Stab at Building Secure Evidence Depot

The District broke ground this morning on the Metropolitan Police Department’s new Property and Evidence Warehouse at the former site of the DC Village emergency shelter at 34 DC Village Lane, SW. The $20 million, 30,000 square-foot project is being developed as a joint venture between the Office of Property Management (OPM) and Akridge Development.

The Mayor’s office is pegging the project as "state-of-the-art" with features including a "computer-automated storage system for logging and retrieval of evidence," "video event logging of transactions," "radio frequency handheld portable terminals,” and “refrigerated units for storing DNA samples.” According to the original bid, the evidence warehouse will contain roughly two million items, including “narcotics, possible biohazards, cash/valuables, guns [and] oversize items” – some of which, according to legal guidelines, must be retained for up 65 years.

Though never explicitly stated, some of the security measures lined-up for the new warehouse seem targeted at reducing the reams of missing evidence – including “$16,453 in currency, seven revolvers, one shotgun, one BB gun, one derringer, marijuana, amphetamines and cocaine” – that failed to turn up during a 2008 audit of the MPD’s present facility at 2235 Shannon Place, SE. Per Washington, DC Mayor Adrian Fenty’s follow-up on the project’s status last February, the District also intends to cut costs by moving from the privately-owned building that they currently lease to the federally owned Southwest parcel. Several sites, including the largely abandoned St. Elizabeths Hospital in Anacostia, were bandied about before the OPM settled on the DC Village site that had itself been closed in October 2007 due to “poor living conditions.”

The District plans to have their new facility up and operational by the fall of 2010 and to qualify for, at the very least, a LEED silver certification.

Blighted Brightwood Apartments Born Again

Mayor Adrian Fenty and Ward 4 Councilmember Muriel Bowser made their second joint appearance of the week in Brightwood today, this time to announce the commencement of major renovation procedures at 6425 14^th Street, NW – a long empty, dilapidated apartment building formerly owned notorious DC landlord, Vincent Abell.

"After essentially two decades of inactivity, frustration and blight…the District of Columbia government finally seized control of the property [in 2008]," said Fenty. "Don’t forget, it had been owned by countless private sector landlords [and] slum lords…People who just had no interest at all in making this the type of fantastic residential apartment building that it was once was and that it will be again.”

To that effect, the District has teamed with Blue Skye Development to repurpose the now-gutted apartment complex for the Tewkesbury Condominiums - a 30,000 square foot, 26-unit condo building that will, according to the Office of the Deputy Mayor for Planning and Economic Development, be comprised of 51% affordable housing.

“We want to promote home ownership,” Deputy Mayor Neil Albert told DCmud of the decision to make the building a for-sale property for the first time in its fifty plus years of existence. “It was originally conceived as a condo project and we were able to get financing for it. Again, there’s a level of affordability that’s going into this building. It’s not a luxury condo building…It’s easier to get that financed than your mid-level and high-priced condos”

Purchased by the DC government early last year for $3 million, after filing suit against its owner for “numerous building code violations,” the total cost of the renovation will come in at $4.6 million. New amenities slated for the complex, as outlined by PGN Architects, include “a community room, roof deck, energy-efficient aluminum windows...as well as outdoor spaces directly behind the building.” With selective demolition already underway inside the complex, the development is scheduled to be open by March 2010 – a full year later than the District initially anticipated when they acquired the property.

“[These] haven’t been easy projects. The reason some of these projects have taken a long time is because there’s a lot of trouble and legal trouble that the city’s been dealing with,” said Muriel Bowser of the numerous concurrent, affordable housing initiatives under way in her ward. “But this administration has taken a ‘can do’ approach. Not 'we can’t,' not 'we won’t,' but that we’ll figure out how to get it done.”

Fenty and Bowser teamed-up earlier these week to oversee demolition at 3910 Georgia Avenue, NW, future site of the 130-unit Georgia Commons project, and for the opening of the Neighborhood Development Company's Residences at Georgia Avenue in March.

Georgia Commons Starts Up in Petworth

The contractors of Meridian Builders joined Mayor Adrian Fenty and Ward 4 Councilmember Muriel Bowser yesterday to oversee the demolition of an old Petworth carpet store at 3910-3912 Georgia Avenue, NW. It’s a site that will soon host the Georgia Commons – a 30,000 square foot, mixed-use project from Jair Lynch Development Partners and Affordable Housing Partners with 119 out of its 130 new apartments geared towards working families. But the developer stresses that this is not your typical affordable housing project.

"It’s generally for families of four making 50, 60, 70 thousand dollars – that’s the market we’re talking about. It’s much different than the general impression of what people think low-income means," said developer Jair Lynch. "We think the remainder may be higher in the 80 to 90 thousand range. It’s not a drastic change.” 

 

The Office of the Deputy Mayor for Planning and Economic Development (ODMPED) selected the development team – which also includes EDG Architects and Frank Schlesinger Associates - two years ago following a competitive solicitation process. With features including a green roof, high efficiency heating and cooling systems, and "green screen" shielding, the project received an extra boost courtesy of the LEED Neighborhood Development pilot program, which acknowledges green and neighborhood-building features for buildings that fall short of traditional certification. "This is one of the few projects in the country that was admitted into it," said Lynch. "They're moving towards acknowledging and certifying projects that are beneficial to neighborhoods, rather than just giving ratings for a building's efficiency...I think there are only three or four [such projects] in the District versus a pool of under of fifty across the country."

The seven-story, $35 million development will also feature a new ground-floor location for Mary’s Center for Maternal and Child Care– its third in the Washington area – that will provide physical, mental and oral health services. With “guaranteed care” and twice the patient capability of their current locations, the new facility will not be just a free clinic, but a primary care center for both middle and working class residents alike. Sharon Baskerville, CEO of the DC Primary Care Association described it as “a means of leveraging the city’s investment with private dollars.”

Apart from gathering those community benefiting features together under one roof, the past 18 months did provide some other unique obstacles for the development team. While ODMPED had to provide $5 million in gap financing to get the project moving, a laundry list of issues had to be addressed before construction could proceed. Said Lynch:

Whether it was the 18 lawsuits that the Deputy Mayor’s office worked diligently on for a year and a half, whether it was getting the permits out of [the Department of Consumer and Regulatory Affairs] with Councilmember Bowser, whether it was the mandatory exclusionary zoning that we anticipated coming, whether it was the collapse of the financial systems for the last six months, this project has persevered time and time again. We’re not quite there yet, but we hope in the next month, now that [the Housing Finance Agency] has their board members, [the Department of Housing and Community Development] is committed and the rest of our partners are here…we’ll start be able to this wonderful new project.

Georgia Commons is just one of numerous Georgia Avenue projects that have steamrolled ahead in recent months. This past March, the Neighborhood Development Company opened the 72-unit Residences at Georgia Avenue, while, in approximately a month and half, Donatelli Development will hold a ribbon cutting for highly the anticipated Park Place project. To Mayor Fenty, himself a former Ward 4 councilmember, it’s evidence that change has taken hold on the prominent Northwest thoroughfare and in the surrounding Petworth neighborhood.

“On this four block stretch, you’re probably talking about 400 new apartments…For seventy years, not one new apartment was built on Georgia Avenue,” said Fenty. “Just in the past couple years and leading into the near future, there has been lots of development…When [this project] is finished, it won’t only be attractive. It’ll be a fantastic asset and resource for the community.” Georgia Commons is tentatively scheduled for a fall 2010 opening.

Washington DC commercial real estate news

DC Teams with Feds for Adams Morgan Affordable Project

Mayor Adrian Fenty was on hand last Thursday for a ceremonial ribbon cutting at the newly refurbished Ontario Court housing complex in Adams Morgan – a 27-unit, 100% affordable apartment building developed by Jubilee Housing, Inc. with designs by Bonstra Haresign Architects. The $9.4 renovation of the 86-year-old edifice also includes a new 4,000 square foot home for Jubilee’s JumpStart Early Childhood Development Center in the very same building at 2525 Ontario Road, NW.

David Bowers of Enterprise Community Investment, Inc. – one of the project’s backers, along with the US Department of the Treasury, the DC Department of Housing and Community Development and PNC Bank – began the festivities by leading a prayer in which he blessed not only the residents of the newly renovated building, but the project’s financiers as well – who, according to Bowers, are “not in the building business, but the people business.” Jim Knight, Executive Director of Jubilee Housing Inc., echoed that sentiment while exploring the various funding sources used to realize the project.

“Housing advocates and city officials have come together to create a funding source that goes by the name of the Local Rent Supplement Program,” said Knight. “It ensures affordability for the lowest income earners among us….The city government [also] came together and worked to create the Housing Production Trust Fund. We’re one of the few localities in the country that has one of these resources. It has been funded in the past and it is here at Ontario Court.”

According to the Mayor’s office, the project received $3.5 million from that fund for upgrades including “new mechanical, electrical and plumbing systems, new carpeting, upgraded kitchens and bathrooms, installation of new security systems, new air conditioning, and new laundry equipment.”

Far from being merely a local initiative, however, Ontario Court also received a big boost from the U.S. Treasury Department via their Community Development Financial Institutions Fund’s New Market Tax Credit Program. The program, which was created in 2000 to “provide tax incentives to induce private-sector, market-driven investment in businesses and real estate development projects located in low-income urban and rural communities,” was used to raise capital for Ontario Court - a project that Mayor Fenty says is indicative of a sea change in the DC development community.

“When the market-rate housing boom was coming through the District, people said, ‘This is the renaissance of the District of Columbia. This is the city come to life,’” said Fenty. “Market-rate housing has a place, but what we’ve seen over the past two or three years, as the market has stabilized and returned a little bit to normalcy, is an appetite and patience for building what is probably even more important to the District of Columbia – and that’s affordable housing."

In the coming months, the Department of Housing and Community Development will continue to pursue such developments in the Adams Morgan area by “putting money into” renovation projects at 1703 Euclid, 1720 Euclid, 1631 Euclid and 2233 18^th Street, NW - the last two both Jubilee properties.

Fenty Takes Out Trash in Deanwood

Deanwood's trash transfer facility/recycling center was demolished this week as Washington, DC Mayor Fenty announced the District’s intent to redevelop the site as mixed-income housing. The raze of the 32,000 square foot, one-story building located at 5201 Hayes Street, NE officially kicks off the Office of the Deputy Mayor for Planning and Economic Development’s (ODMPED) search for a development team for the property, which they say can accommodate "up to 232 units of housing."

"Today’s demolition is a big step forward for one of our most important projects in our New Communities Initiative. The development of new housing in the Lincoln Heights/Richardson Dwellings neighborhood is a top priority of my administration’s plan to revitalize the Deanwood community in Ward 7," said Fenty via press release. The RFP is available online and proposals for the project are due on July 6^th by 4 PM.

The trash processing facility was purchased by the District in December 2008 and stands just blocks from a previously solicited ODMPED project at 4427 Hayes Street, NE. That development, also branded as part of Fenty’s New Communities initiative, is set to include 26 new residential units and 9 “replacement housing units” for area residents displaced by renovations at the Lincoln Heights/Richardson Dwellings complex. The Mayor announced on March 27^th that Blue Skye Development has been selected to head up that project.

Tenley-Janney Loses Apartments, Gains Consensus

In a surprise announcement from Mayor Adrian Fenty at Janney Elementary this afternoon, the ongoing battle between the Tenleytown community and the Office of the Deputy Mayor for Planning and Economic Development over the mixed-use redevelopment of the Tenley-Friendship Library seems to have drawn to a close. The District announced today that it has split with developer LCOR Inc., which had previously been awarded rights to construct the library at the site, along with 174 rental apartments, by the Fenty administration this past July.

The District’s relationship with LCOR, however, went suspiciously unmentioned by Fenty or his staff during the duration of the press conference - an especially conspicuous omission, given that Deputy Mayor Neil Albert had previously reaffirmed his office's commitment to moving forward with the LCOR-led redevelopment as recently as January. Off-the-record sources from inside the District government confirmed that the change of direction at the Janney site had little to do the contentious war of words between the Tenleytown community’s reps on the DC City Council and ODMPED, but that instead, LCOR has been forced to the sidelines due the company’s inability to secure financing in the troubled credit market. For the District’s part, they’re leaving the door to mixed-use development open for the near future.

“There is the possibility that after the library is built, sometime in the future, there may be additional mixed-use on that site,” said Fenty, to a mixed reaction of both applause and boos – an illustration of just how divisive the residential component of the school/library redevelopment had become, even among Janney staff and parents.

With LCOR out of the picture (for now) and no residential units stacked atop of it, the library over the metro station will top out at a simple two stories and measure in at 22,000 square feet, based on designs by the Freelon Group. Forrester Construction has signed on as general contractor and the building will seek a LEED silver certification.

Whether today's deal is a bow to market forces or just public relations peacemaking (or both), ODMPED didn’t end the goodwill there; the schedule for construction of the new library and concurrent renovations to Janney Elementary, it was announced, has been significantly accelerated. Fenty pledged that the new library will be open by the end of 2010, while renovations to Janney, once scheduled to begin in 2014, “could begin as soon as December.” Both Fenty and Allen Y. Lew, Executive Director of Office of Public Education Facilities Modernization, agreed that an architect for the renovation will be selected by June; other details, including whether the school will remain open during construction, had yet to be confirmed. According to Lew, the renovation could take as little as thirteen months.

Waterfront Station 1 Tops Out in Southwest

Waterfront Station officially topped out today, and while that alone may be cause for celebration, backers must be more pleased that the office building is entirely leased. Once completed, the Southwest Washington, DC development - a joint venture between Forest City Washington, Vornado/Charles E. Smith and Bresler and Reiner, Inc. - will add 2.5 million square feet of office, residential and retail space to the former site of the Waterfront Mall at 4th and M Streets, SW.

District authorities, in particular, have reason to commemorate the project's construction milestone. City agencies, including the Office of the Chief Financial Officer, Office of Planning, District Department of Transportation and Department of Consumer and Regulatory Affairs, have already leased the entire 628,000 square feet of phase one’s Shalom Baranes-designed dual office buildings and are currently scheduled to move in once construction ends in March of 2010. The towers, which abut the Waterfront/SEU Metro station, will also include new space for the present Safeway, CVS and Bank of America locations on site, as well as an additional 85,000 square feet for restaurants and “neighborhood service-related” retail. Both buildings are aiming for a LEED silver certification. Clark Construction is currently serving as general contractor on the project.

Mayor Adrian Fenty, on hand to officiate the proceedings, also took time to wax nostalgic about his history with the project. “I’ve been the mayor for twenty-six months and ten days and I can tell you that this has been a priority of our administration for that entire time," he said. "I was on the City Council before that and I followed, as an interested appropriator, all of the discussions around Waterside Mall."

Meanwhile, Ward 6 Councilman Tommy Wells and Councilmember-at-Large Kwame Brown applauded the project for revitalizing a long-neglected Southwest site and proceeding as planned, despite the current state of the real estate market.

“I believe the financing [for this project] was closed on the day the Dow dropped 700 points [on September 29th, 2008]. This team saw it through,” said Wells. “You may see other cranes that have stopped working, other places that they stopped digging, but these guys are work because of this great development team.”

In between accolades, not much mention was a made of the development’s projected phase two component, which is intended to include nearly 1,000 residential units, along with more retail and office space, to fill Waterfront Station’s eventual 2.5 million square footprint. The current timeline calls for design work on the next phase of development to begin this coming May and Deborah Ratner Salzberg, President of Forest City Washington, Inc., was optimistic that the project will a be success based on its convenient location and the inroads made so far.

“People are going to come up from this Metro, they’re going to head home, they’re going head to school, they’re going to go to work and they’re going to shop. Waterfront Station will be an active retail hub,” said Salzberg.

Washington DC real estate development news

District Re-Shuffles SW Redevelopment Initiatives

Washington, DC Mayor Adrian Fenty held a press conference yesterday to highlight the District’s shuffling of several government facilities to expedite redevelopment – despite the apparent delays that have skewed timelines on several of the named projects, including the Consolidated Forensics Laboratory, the MPD First District Headquarters and Fire Engine Company 13.

“We promised to keep these projects moving and get them finished as fast as possible,” said Fenty. “We are continually working to manage our public facilities more efficiently. In many of these cases we will save millions of dollars over the long term by moving our operations out of leased space and into government-owned facilities.”

The first project facing such a move will be the Metropolitan Police Department’s First District HQ, which will relocate from 415 4^th Street, SW to one of the District’s recently closed public schools, Southwest’s Bowen Elementary. In the seven months since the school was shuttered, the Office of Public Education Facilities Modernization and the Office of Property Management renovated to make a building once inadequate for fifth graders suitable for crime scene investigators. A figure for the cost of said renovation was not disclosed by the Mayor.

Following the move, the police facility’s current incarnation in turn will be razed to make way for a new $220 million, six-story, 240,000 square foot Comprehensive Forensics Lab (originally solicited as the Consolidated Forensic Laboratory). The building, which had initially been scheduled for construction last December, will consolidate the now disparate offices of the Chief Medical Examiner, Public Health Laboratory and MPD Forensic Services Division following its expected completion in late 2011.

Fenty also provided an update on the status of the proposals for the redevelopment of Fire Engine Company 13, just around the corner, at 450 6^th Street, SW – a site the Office of the Deputy Mayor for Planning and Economic Development announced it was vetting for a new firehouse, along with 465,000 square feet of mixed-use development, last June. According to ODMPED, they are still evaluating the three submitted proposals (from JLH Partners, Chapman Development, and CDC Companies; Trammell Crow, CSG Urban Partners, and Michele Hagans; and Potomac Investment Properties, City Partners, and Adams Investment Group) and will make a selection “late next month.” In the meantime, they’ll be holding a community meeting outlining the pitches tomorrow, February 25^th at 800 Water Street, SW.

Lastly, Fenty announced new plans for a 30,000 square foot MPD Evidence Warehouse at DC Village, a family-oriented emergency shelter on Village Lane, SW that was closed following accusations of "inhumane" conditions. It was noted that the District hopes to save additional funds by moving their current stock from leased space to the government-owned parcel.

DC Breaks Ground on Southeast Waterfront Park

A cadre of District officials, including Mayor Adrian Fenty, were on hand today to start work on Diamond Teague Park, an $8 million waterfront esplanade in the shadow of Nationals Park at First Street and Potomac Avenue, SE, Washington DC.

Construction has already begun on the park’s duel waterfront piers that, once completed, will offer waterfront taxi service and other commercial boating services to service the baseball stadium. A separate, 200-foot "environmental pier" will also host space for school groups and personal watercraft, such as kayaks and canoes. The piers are expected to be completed by the Nationals’ Opening Day on April 13^th; District officials anticipate work on the rest of the park, including a mural by artist Byron Peck and memorial to the Park’s namesake, Diamond Teague, to be completed by July. The Landscape Architecture Bureau-designed project is intended to serve as the linchpin between the ballpark and a projected 20-mile network of trails that wind through the redevelopment areas of both the Southeast and Southwest waterfronts.

The prominently located park is named in tribute to Diamond Teague, a Southeast teen who was gunned down by unknown assailants in 2003. Teague was once a member of local volunteer organization the Earth Conservation Corps – headquartered in the neighboring Capitol Pumphouse – which works to purifying and preserve the Anacostia River

“Diamond Teague committed his life to restoring, protecting and preserving the Anacostia River,” said Fenty. “This park will be a fitting tribute to his legacy and it will mark our commitment as a city to carry on his work.”

According to the Mayor’s office, funds for the project are being “covered through dedicated revenue streams tied to a number of adjacent economic development projects that surround the park.” The JBG Companies previously contributed $1.5 million toward the project; this past October, the developers behind the neighboring Riverfront on the Anacostia development, Florida Rock Properties, made an $800,000 contribution in Teague’s honor.

Washington DC commercial property news

Auction Raises $4.5 Million for Washington, DC

Last Friday's auction of District-owned "nuisance properties" netted more than $4.5 million for the city, according to documentation obtained by DCmud (pictured). In total, 28 of 31 properties listed were snatched up by new owners and there were some bargains, too. A Southeast property at 2321 Highland Street went for only $35,000, while none of the listings exceeded $400,000. Per Department of Housing and Community Development (DHCD) guidelines for the auction, the majority of the funds raised will benefit the District’s affordable housing fund.

“The potential revenue from the January 30 auction could be as much as $4.85 million for the District however, there are conditions (outlined in the disposition agreement) that have to be met before sales are final,” said Angelita Colón-Francia, DHCD’s Senior Public Information Officer. A public hearing will precede the settlements. We anticipate that closings will likely occur in early spring.”

Despite the disclosure of the District’s take from the sales, there’s still some question as to who actually purchased the properties. Some citizens at Mayor Fenty’s announcement of the auction expressed concerns that the derelict homes would immediately go to developers with deep pockets, rather than private citizens with a stake in the community. It can't be worse than the status quo ante.

Knee Deep in New Development at Fort Totten

DC Mayor Adrian Fenty was joined by representatives of Lowe Enterprises today to announce the sale of a city-owned parcel at Riggs Road and South Dakota Avenue, NE, in the Fort Totten neighborhood, that will soon be transformed in a million square foot mixed-use development. Although initially unveiled as "The Dakotas" way back in 2006, new details concerning the project are now being released. The project will be built in three phases and include 898 residential units, along with 94,000 square feet of retail space.

"If you've ever been to Riggs Road in the area of South Dakota Avenue, you know it is an area of boundless potential...We are at the point where we are going to maximize that potential,” said Fenty.

The first phase, to be entitled Ft. Totten Square, will occupy the site of a vacated strip mall on the intersection’s northwestern quadrant. The 4-story building will house 468 residential units – 94 of which have been earmarked for affordable housing - and 71,000 square feet of ground floor retail, which is to be anchored by a full-service grocery store. 500 parking spaces will also be included in the development. Construction on Ft. Totten Square is slated to begin later this year and will be followed shortly by a second phase, the so-called Dakota Pointe across the street, which will include 170 units of housing and the requisite parking.

The project’s third and final phase – the Dakota Flats – will include the triangular parcel relinquished by the District at the development's southern-most point. It will feature 260 apartments with 52 reserved as affordable, 23,000 square feet of retail. According to the Mayor, construction of the Flats will “be set to close in 2011.” In addition to Lowe, the development team also includes Jack Sophie Development, City Partners Development and mixed-use planners StreetSense. Hickok Cole Architects are designing the project. Ellis Denning will serve as general contractor. The total cost of the project is currently estimated to be roughly $80 million.

Both the City and development team were keen to highlight the infrastructural improvements they have in store for one of the city’s busiest intersections. “We are working on making this a safer intersection because traffic is fast,” said Ward 4 Councilwoman Muriel Bowser. “We have thousands of hardworking, taxpaying citizens in Riggs Park who take their lives into their hands to get the Fort Totten Metro. We’re going to change that.”

In doing so, the District plans to eliminate the highway-style on-off ramps that guide traffic onto Riggs Road and include improved pedestrian crossings – while serving as a gateway to nearby Prince George’s County. “There’s not many more thoroughfares with much more traffic than this one right here,” said Marc Weller of Ellis Denning. “People came across the line into DC and the first thing they’d see is just a sign and vacant parking lot. We’re trying to create something much different than that.”

That change, however, has been a long time coming. Weller told DCmud that over the course of two years “overall market conditions [have] repositioned the project so that it could work in today’s markets.” Neither party would disclose the terms of the LDA, but details will be revealed as the project moves closer to fruition.

DC Commits to (Modest) Ivy City Redevelopment

The District government today announced that it is aiming to "transform" one of the city's most beleaguered neighborhoods by overseeing the redevelopment of 37 vacant properties within a six-blocks radius in Northeast's Ivy City enclave. Best known, if at all, for its ramshackle homes, illegal dumping sites and high crime rate, Ivy City will now host new construction and renovation projects awarded to four non-profit developers: Mi Casa, Inc., Manna, Inc., DC Habitat for Humanity and MissionFirst. It’s a move calculated to increase homeownership in a neighborhood weighed down by a glut of vacancies and a foreclosure rate twice that of the rest of Washington, DC.

"Just 12% of Ivy City’s residents own their homes," said Mayor Adrian Fenty, who referred to Ivy City's abandoned properties as "places to deal drugs and dump trash." Fenty noted "That’s one of the lowest homeownership rates in the city, but when these projects are finished, we can double that – which would be a fantastic statement about this city’s commitment to homeownership and neighborhood stabilization.”

Despite the uplifting mood of the press conference, expectations were not set high for the neighborhood that is isolated by Mt. Olivet Cemetery, New York Avenue, and the railyard, yet nowhere near a Metro station, and where many single family homes still list under $200,000 - without much interest.

Mi Casa will be moving ahead first with renovations of three buildings at 1302 and 1304 Gallaudet Street, NE and 1917 Capitol Avenue, NE. During Phase I, the developer plans to revamp 6 condos in the first property, with the intent of offering them to “seniors and extended families.” Four will available to those making less than 30% of the Area Median Income (AMI), while all have been reserved for area residents making less than 50% of the AMI. The second property, 1917 Capitol, will feature 2 affordable two-bedroom condos for those at less than 50% of the AMI. Mi Casa will be giving preference current eligible residents who have pre-qualified for a mortgage and “are committed to living in the neighborhood long-term.”

The remainder is expected to follow suit shortly after the completion of the first phase, with Manna planning 20 units, 15 for MissionFirst, and 8 for Habitat for Humatity. Together, that amounts to 58 new units for Ivy City – only 6 of which will be priced at market-rate. The projects will be combine renovations and new, from-scratch developments on vacant lots.

The Ivy City project is being partly funded by combining the $1 million value of District-owned parcels with $3 million from the federal Neighborhood Stabilization Program. The total cost is projected to be roughly $15 million and the neighborhood is still scheduled to begin receiving upwards of $3 million in infrastructural improvements beginning in May of next year.

The last time the District took a stake in Ivy City was when the DC City Council voted to relocate several Navy Yard strip clubs to the dilapidated neighborhood in order to make way for Nationals Park. William Shelton, chair of the ANC 5B was quick to credit the citizens of Ivy City with leading the charge to get District officials to take a second look at the state of their neighborhood.

"The tenants there, led by the Ivy City Citizens Association, have been at the forefront of this…It’s a very positive experience to see them determine their own destiny in terms of what the community ought to become,” said Shelton. “And, for our part, we’re enthusiastic to see that part of the city have an opportunity to have some those abandoned houses… renovated and restored." And for the fine folks of Ivy City, the modest announcement may not be a new stadium, but its a start.

DC Offers $10 Million to New Retail Development

Mayor Adrian Fenty joined Ward 8 Councilmember Marion Barry today to announce that the District of Columbia has granted a total of $10 million worth of tax increment financing (TIF) to three retail-centric real estate projects currently in the pipeline: City Interests, LLC's South Capitol Street SW residential/retail hybrid, Four Points, LLC and W Street Acquisitions' development on Martin Luther King, Jr. Avenue, and the Neighborhood Development Corporation's Heights on Georgia Avenue. According to the Mayor, it’s a calculated move designed to stop Washington DC's loss of retail revenue to suburban shopping outlets.

“Essentially, this is way to make sure that you use additional revenue to help the private sector bridge the gap to where they see great and exciting new projects, but where there may not be right now the right level of financial equity to make the projects happen,” said Fenty. “The District, as everybody knows, loses tons of money to the suburbs every year…If we don’t have economic development right here in the neighborhoods of Ward 8, people will then just take their tax dollars to Maryland. It’s a cyclical problem.”

The first project on the docket is also the largest. City Interests’ development at 4001-4035 South Capitol Street SW – currently a strip mall and the site of today’s press conference – will receive the bulk of the TIF funds announced for a grand total of $8.8 million. Once completed, the project will contain 200 units of housing, 47,000 square feet of retail and 15,000 square foot grocer or pharmacy in the forgotten portion of southwest - a small strip of land just south of Bolling Air Force Base. Construction is planned to begin in late 2009.

The Four Points project on the 2200 block of Martin Luther King, Jr. Avenue SE will receive $1.1 million from the TIF program to supplement its $5.2 million budget. The mixed-use project will bring 11,000 square feet of retail and a “soul jazz café” to the site – numbers regarding the housing component have yet to be disclosed. Construction is also projected to begin sometime in 2009.

The last project announced – and only non-Ward 8 development named – was the Neighborhood Development Company’s The Heights on Georgia Avenue. Located at 3232 Georgia Avenue NW, the $25 million project will receive $742,000 in TIF credits. With 10,000 square feet of retail (possibly to include a hardware store and sit-down restaurant) and 70 residential units, NDC hopes to start building late next year.

These three projects are merely the first recognized projects under the District’s Neighborhood Retail TIF program. Earlier this year, Fenty announced that the District - in conjunction with the Great Streets Initiative - would offer a total of $95 million in financing to local developments with a strong retail component. The Office of the Deputy Mayor for Planning and Economic Development (ODMPED) will continue to accept applications for funds on “a rolling basis.” ODMPED's Project Manager, Derrick Woody, said recipients are judged on a “long list of criteria” that includes “the composition of the development team, the level and amount of retail,” and a 5,000 square foot minimum in order for projects to be considered.

Washington DC retail news

DC Makes Way for Northwest One

Mayor Adrian Fenty called a press conference in NoMa today to the showcase the demolition of the Temple Courts housing project – an abandoned housing complex that stands at the future site of the William C. Smith & Co. and Jair Lynch Development Partners’ mixed-use Northwest One project. The housing project was purchased by the District in 2007, after years of concerns about the poor educational and medical conditions for residents, as well as an escalating crime rate.

“To most people, this is the site of housing that has long been of condition that is unfit and unsuitable for residents of the District of Columbia, our own neighbors,” said Fenty. “Northwest One [will be]…the first place where you’ll have new communities with all different levels of housing and all different income levels – mixed with great retail, great community centers and great schools.”

The Northwest One project will bring $700 million worth of new development to a five-block chunk of the NoMa corridor – an initiative that will include the construction of 1600 new residential units, 200,000 square feet of office space, 40,000 square feet of ground-level retail and a one-acre public park. The District has pledged that nearly 25% of the on-site housing (570 units) will be reserved as affordable – an amount that Executive Director of the District of Columbia Housing Authority, Michael Kelly, assured the public would be “one-for-one replacement” of all affordable housing lost in demolition. The 172 families initially displaced by the closing of Temple Court were relocated at city expense and will be offered new units in the completed Northwest One complex.

“Today, we're celebrating the demolition of what is –without any kind of exaggeration – a symbol of isolation and socio-economic despair,” said Kelly. “In its place…will be a vibrant mixed-income neighborhood. A neighborhood that will have the lawyer next to the school teacher next to the welfare recipient – and from the outside you can’t tell who’s who.”

Fenty said that he expects a groundbreaking ceremony to be scheduled for early 2010 with construction expected to wrap up the following year. The Temple Court site is the second component of Northwest One currently in some phase of development – the $47 million Walker Jones complex (which includes a 100,000 square foot elementary and middle school) is currently under construction and is scheduled to be open by next August, just in time for the 2009-2010 school year.

Washington DC retail and commercial real estate news